NVIDIA Revenue
NVDA Revenue was a record $35.1 billion, up 94% from a year ago and up 17% sequentially. Data Center revenue was a record, up 112% from a year ago and up 17% sequentially. The strong year-on-year and sequential growth was driven by demand for our Hopper computing platform for training and inferencing of large language models, recommendation engines, and generative AI applications. Cloud service providers represented approximately 50% of our Data Center revenue, and the remainder was represented by consumer internet and enterprise companies. Strong year-on-year growth was driven by all customer types from both compute and networking. Demand for the Hopper architecture is strong and our H200 offering grew significantly in the quarter.
Data Center compute revenue was $27.6 billion, up 132% from a year ago and up 22% sequentially. Networking revenue was $3.1 billion, up 20% from a year ago driven by Ethernet for AI, which includes SpectrumX end-to-end ethernet platform. Areas of sequential revenue growth include InfiniBand and Ethernet switches, SmartNICs, and BlueField DPUs. Though networking revenue was sequentially down 15%, networking demand is strong and growing. We completed a successful mask change for Blackwell, our next Data Center architecture, that improved production yields. Blackwell production shipments are scheduled to begin in the fourth quarter of fiscal 2025 and will continue to ramp into fiscal 2026. We will be shipping both Hopper and Blackwell systems in the fourth quarter of fiscal 2025 and beyond. Both Hopper and Blackwell systems have certain supply constraints, and the demand for Blackwell is expected to exceed supply for several quarters in fiscal 2026.
Gaming revenue was up 15% from a year ago and up 14% sequentially. These increases were driven by sales of our GeForce RTX 40 Series GPUs and game console SoCs. Professional Visualization revenue was up 17% from a year ago and up 7% sequentially. These increases were driven by the continued ramp of RTX GPU workstations based on our Ada architecture. Automotive revenue was a record, up 72% from a year ago and up 30% sequentially. These increases were driven by our self-driving platforms.
NVDA Gross Margin
GAAP and non-GAAP gross margins increased from a year ago due to a higher mix of Data Center revenue. Sequentially, gross margins decreased primarily driven by a mix shift from H100 systems to more complex and higher cost systems within Data Center.
NVIDIA Expenses
GAAP operating expenses were up 44% from a year ago and up 9% sequentially, and non-GAAP operating expenses were up 50% from a year ago and up 9% sequentially. These GAAP expense increases were driven by higher compensation and benefits expenses due to employee growth and compensation increases. Sequentially, non-GAAP expenses increased due to compute, infrastructure, and engineering development costs for new product introductions.
NVDA Other Income & Expense and Income Tax
GAAP other income and expense (OI&E) includes interest income, interest expense, and gains or
losses from non-affiliated investments and publicly-held equity securities. Non-GAAP OI&E excludes
the gains or losses from non-affiliated investments and publicly-held equity securities.
Interest income was $472 million, up from a year ago and up sequentially, primarily reflecting higher
cash balances. Net gains from non-affiliated investments and publicly-held equity securities were $37
million, reflecting fair value adjustments and sales of investments.
GAAP effective tax rate was 13.5%, an increase from a year ago reflecting the lower effect of various
tax benefits relative to the increase in pre-tax income. Fiscal 2024 additionally included a discrete
benefit due to an IRS audit resolution. Non-GAAP effective tax rate was 15.5%.
NVIDIA Balance Sheet and Cash Flow
Cash, cash equivalents and marketable securities were $38.5 billion, up from $18.3 billion a year ago
and $34.8 billion a quarter ago. The increases reflect higher revenue partially offset by higher stock
repurchases.
NVIDIA Accounts receivable was $17.7 billion with 46 days sales outstanding (DSO). Accounts receivable
reflects $1.7 billion of customer payments received prior to next quarter’s invoice due dates.
Inventory was $7.7 billion with 78 days sales of inventory (DSI). Inventory increased from $6.7 billion,
and DSI decreased from 81 days sequentially. Purchase commitments and obligations for inventory
and manufacturing capacity were $28.9 billion, including new capacity commitments and
components. Supply and capacity prepayments were $5.2 billion.
Other non-inventory purchase obligations were $13.2 billion, including $11.3 billion of multi-year
cloud service agreements. We expect cloud service agreements to be used to support our research
and development efforts and our DGX Cloud offerings.
Cash flow from operating activities was $17.6 billion, up from $7.3 billion a year ago and up from
$14.5 billion a quarter ago. The sequential increase reflects higher revenue and the timing of
payments of cash taxes throughout the year. The year-on-year increase reflects higher revenue.
We utilized cash of $11.2 billion towards shareholder returns, including $11.0 billion in share
repurchases and $245 million in cash dividends.
NVDA Fourth Quarter of Fiscal 2025 Outlook
Outlook for the fourth quarter of fiscal 2025 is as follows:
- Revenue is expected to be $37.5 billion, plus or minus 2%.
- GAAP and non-GAAP gross margins are expected to be 73.0% and 73.5%, respectively, plus or
minus 50 basis points. - GAAP and non-GAAP operating expenses are expected to be approximately $4.8 billion and
$3.4 billion, respectively. - GAAP and non-GAAP other income and expense are expected to be an income of
approximately $400 million, excluding gains and losses from non-affiliated investments and
publicly-held equity securities. - GAAP and non-GAAP tax rates are expected to be 16.5%, plus or minus 1%, excluding any
discrete items.
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