NVIDIA Corporation (NASDAQ:NVDA) Q1 2021 Earnings Conference Call - Final Transcript
May 21, 2020 • 05:30 pm ET
to be ready for the next outbreak. NVIDIA technology is essential for the scientific community to develop an end-to-end computational defense system, a system that can detect early, accelerate the development of a vaccine, contain the spread of disease, and continuously test and monitor.
We are racing to deploy the NVIDIA Clara computational healthcare platforms. Clara Parabricks can accelerate genomics analysis from days to minutes. Clara Imaging will continue to partner with leading research institutes to develop state-of-the-art AI models to detect infections, and Clara Guardian will connect AI to cameras and microphones in hospitals to help overloaded staff watch over patients.
We completed the acquisition of Mellanox on April 27th. Mellanox is now NVIDIA's networking brand and business unit and will be reported as part of our data center market platform, and Israel is now one of NVIDIA's major technology centers. The new NVIDIA has a much larger footprint in data center computing, end-to-end and full stack expertise in data center architectures and tremendous scale to accelerate innovation. NVIDIA and Mellanox are a perfect combination and position us for the major forces shaping the IT industry today, data center scale computing and AI.
From micro service cloud applications to machine learning and AI, accelerated computing and high performance networking are critical to modern data centers. Previously, a CPU compute node was the unit of computing. Going forward, the new unit of computing is an entire data center. The basic computing elements are now storage servers, CPU servers, and GPU servers and are composed and orchestrated by hyperscale applications that are serving millions of users simultaneously. Connecting these computing elements together is the high performance Mellanox networking. This is the era of data center scale computing and together, NVIDIA and Mellanox can architect end-to-end. Mellanox is an extraordinary company and I'm thrilled that we're now one force to invent the future together. Now let me turn the call over to Colette.
Thanks, Jensen. Against the backdrop of the extraordinary events unfolding around the globe, we had a very strong quarter. Q1 revenue was $3.08 billion, up 39% year-on-year, down 1% sequentially and slightly ahead of our outlook reflecting upside in our data center and gaming platforms. Starting with gaming, revenue of $1.34 billion was up 27% year-on-year and down 10% sequentially. We are pleased with these results which exceeded expectations in the quarter marked by the unprecedented challenge of the COVID-19.
Let me give you some color. Early in Q1, as the epidemic unfolded, demand in China was impacted with iCafes closing for an extended period. As the virus spread globally, much of the world started working and learning from home and gameplay surged. Globally, we have seen 50% rise in gaming hours played on our GeForce platform driven both by more people playing and more gameplay per user. With many retail outlets closed, demand for our products has shifted quite efficiently to e-tail channels globally. Gaming laptops revenue accelerated to its fastest year-on-year growth in six quarters. We are