NVIDIA Reports Preliminary Financial Results for Second Quarter Fiscal 2023
Company issues results for for second quarter fiscal 2023; preliminary second quarter revenue of $6.70 billion versus outlook of $8.10 billion.
August 8, 2022
NVIDIA announces selected preliminary financial results for the second quarter ended July 31, 2022.
Second quarter revenue is expected to be approximately $6.70 billion, down 19% sequentially and up 3% from the prior year, reflecting weaker than forecasted gaming revenue. Gaming revenue was $2.04 billion, down 44% sequentially and down 33% from the prior year. Data Center revenue was $3.81 billion, up 1% sequentially and up 61% from the prior year.
The shortfall relative to the May revenue outlook of $8.10 billion was in part attributable to lower sell-in of gaming products reflecting a reduction in channel partner sales. In addition to reducing sell-in, the company implemented pricing programs with channel partners to reflect challenging market conditions that are expected to persist into the third quarter.
Data Center revenue, though a record, was somewhat short of the company’s expectations, as it was impacted by supply chain disruptions.
Second quarter results are expected to include approximately $1.32 billion of charges, primarily for inventory and related reserves, based on revised expectations of future demand.
“Our gaming product sell-through projections declined significantly as the quarter progressed,” says Jensen Huang, founder and CEO of NVIDIA. “As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.
“As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI,” he says.
“The significant charges incurred in the quarter reflect previous long-term purchase commitments we made during a time of severe component shortages and our current expectation of ongoing macroeconomic uncertainty,” says Colette Kress, EVP and CFO of NVIDIA.
“We believe our long-term gross margin profile is intact. We have slowed operating expense growth, balancing investments for long-term growth while managing near-term profitability. We plan to continue stock buybacks as we foresee strong cash generation and future growth,” she adds.
Sources: Press materials received from the company and additional information gleaned from the company’s website.