NVIDIA Corporation (NASDAQ:NVDA) Q4 2020 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 05:30 pm ET


NVIDIA Corporation (NASDAQ:NVDA) Q4 2020 Earnings Conference Call - Final Transcript


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Welcome to NVIDIA's Financial Results Conference Call. All lines have been placed on mute. After the speakers' remarks there will be a question-and-answer period. [Operator Instructions] Thank you.

I'll now turn the call over to Simona Jankowski, Vice President of Investor Relations, to begin your conference.

Simona Jankowski

Thank you. Good afternoon, everyone, and welcome to NVIDIA's conference call for the fourth quarter of fiscal 2020. With me on the call today from NVIDIA are Jensen Huang, President and Chief Executive Officer; and Colette Kress, Executive Vice President and Chief Financial Officer.

I'd like to remind you that our call is being webcast live on NVIDIA's Investor Relations website. The webcast will be available for replay until the conference call to discuss our financial results for the first quarter of fiscal 2021. The content of today's call is NVIDIA's property. It can't be reproduced or transcribed without our prior written consent.

During this call, we may make forward-looking statements based on current expectations. These are subject to a number of significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release, our most recent Forms 10-K and 10-Q and the reports that we may file on Form 8-K with the Securities and Exchange Commission. All our statements are made as of today, February 13, 2020, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements.

During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website.

With that, let me turn the call over to Colette.

Colette Kress

Thanks, Simona. Q4 revenue was $3.11 billion, up 41% year-on-year and up 3% sequentially, well above our outlook, reflecting upside in our data center and gaming businesses. Full year revenue was $10.9 billion, down 7%, we recovered from the excess channel inventory in gaming and an earlier pause in hyperscale spending, and exited the year with great momentum. Starting with gaming, revenue of $1.49 billion was up 56% year-on-year and down 10% sequentially. Full year gaming revenue was $5.52 billion, down 12% from our prior year. We enjoyed strong end-demand for our desktop and notebook GPUs. Let me give you some more details.

Our gaming lineup was exceptionally well positioned for the holidays with unique ray tracing capabilities of our RTX GPUs, an incredible performance at every price point. From the Singles Day shopping event in China through the Christmas season in the West, channel demand was strong for our entire stack. Fueling this were new blockbuster games like Call of Duty: Modern Warfare, continued eSports momentum, and new RTX Super products with RTX price points as low as $299, ray tracing is now the sweet spot for PC gamers.

Gaming is thriving, and gamers prefer GeForce. The global phenomenon of