NVIDIA Corporation

Good afternoon. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to NVIDIA's fourth quarter earnings call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll be a question and answer session. If you'd like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one once again. Thank you, Sumona Jankowski. You may begin your conference.

Thank you. Good afternoon, everyone, and welcome to NVIDIA's conference call for the fourth quarter of fiscal 2022. With me today from NVIDIA are Jensen Huang, President and Chief Executive Officer, and Colette Crest, 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 2023. The content of today's call is in video's property. It can be reproduced or transcribed without our prior written consent. During this call, we may make poor listening 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 16, 2022, 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. Thanks, Simona.

We had an excellent quarter with revenue up 53% year-on-year to $7.6 billion. We set records for total revenue as well as for gaming, data center, and professional visualization. Full-year revenue was a record, 26.9 billion, up 61%, compounding the prior year's growth of 53%. Starting with gaming, revenue of 3.4 billion rose 6% sequentially and was up 37% from a year earlier. Fiscal year revenue of 12.5 billion was up 61%. Gaming has become the top entertainment medium and continues to show strong momentum. Just last month, Steam hit a record 28 million concurrent users, up 50% in two years. Record desktop revenue in the quarter was led by our growth in our GeForce RTX 30 series products, with continued strength in the high end. At CES, we announced the RTX 3050 GPU, which hit retail in late January, bringing NVIDIA, RTX, and AI technologies to more mainstream audiences. Laptop gaming revenue also set a record, driven by the ramp of the new GeForce RTX 3070 Ti and 3080 Ti GPUs, which were also announced at CES. These leverage our fourth generation Max-Q technology to enable quiet, thin, and light gaming laptops. All in, we announced over 160 new laptop designs for NVIDIA Ampere Architecture RTX 30 Series GPUs. These include a number of studio systems targeting the tens of millions of creators guarding the future of design, innovation, and virtual worlds. In addition to supporting the new RTX 30 Series GPUs, Studio laptops feature support for NVIDIA software like Omniverse, Pandas, and Broadcast. Availability of our gaming products in the channel remains low. NVIDIA RTX ecosystem continues to expand, with over 30 new RTX games and applications added this quarter, including blockbuster hits like Battlefield 2042, Grand Theft Auto, the Trilogy, Call of Duty Vanguard, and God of War. In addition, several new titles support NVIDIA Reflex for low-latency gameplay. Our GPUs are capable of cryptocurrency mining, though we have limited visibility into how much of this impacts our overall GPU demand. Nearly all desktop NVIDIA Ampere Architecture GeForce GPU shipments are light hash rate. to help direct GeForce supply to gamers. Crypto mining processor revenue is $24 million, which is included in OEM and other. We continue to expand the NVIDIA GeForce Now cloud gaming ecosystem with new hit titles, including EA's Battlefield 4 and Battlefield 5. At CES, we announced a partnership with Samsung to integrate GeForce Now and its smart TVs. starting in Q2 of this year. This follows last month's beta release of the GeForce Now app for LG Smart TVs. In addition, we teamed up with AT&T to bring GeForce Now to 5G mobile devices in the US. We also added our first GFN data center in Canada. Moving to Pro Visualization. Q4 revenue of $643 million was up 11% sequentially and up 109% from a year ago. Fiscal year revenue of $2.1 billion was up 100%. Sequential growth in the quarter was driven by a shift to higher-value workstations and the continued ramp of our NVIDIA Ampere architecture. We believe strong demand is fueled by continued build-outs for hybrid work environments as well as growth in key workloads, including 3D design, AI, and rendering. For example, Sony Pictures Imageworks is using NVIDIA RTX to accelerate ray tracing for rendering-related applications. Volkswagen is using NVIDIA RTX for AI to assist in predictive maintenance of their vehicles. And Duke Energy is using NVIDIA RTX for AI and VR to map, view, and maintain energy facilities. NVIDIA Omniverse Enterprise software entered general availability, and while it's still in early days, customer feedback so far has been very positive, with multiple significant enterprise licenses already signed. In addition to software licenses, Omniverse also drives computing opportunity for NVIDIA RTX in laptops, workstations, and on-prem servers and the cloud. Omniverse can be used by individuals for free and by enterprise teams via software subscriptions. At CES, we made the free version of Omniverse for individuals' general availability. Omniverse allows creators with RTX GPUs to connect leading 3D design applications to a single scene and supercharge their work with AI and physics. We also announced early access to Omniverse Cloud. which adds one-click capability to collaborate with other artists, whether across the room or across the globe. For digital twin applications, we announced the Isaac Autonomous Mobile Robot Platform. Using Omniverse and securely orchestrated and cloud-delivered with Fleet Command, the platform optimizes operational efficiency and accelerates deployment of logistics robots. It consists of several NVIDIA AI technologies and SDKs, including DeepMap for high-precision mapping, Metropolis for situational awareness, and REopt for real-time route optimization. Moving to automotive. Q4 revenue was $125 million, declined 7% sequentially and 14% from the year-ago quarter. Fiscal year revenue of $566 million was up 6%. We have just started shipments of our ORIN-based product platform and expect to return through sequential revenue growth in Q1, with more meaningful inflection in the second half of the fiscal year and momentum building into calendar 2023 and beyond. I will now hand it over to Jensen to provide more color on this morning's automotive news.