NVIDIA presents the accounts for the first quarter of fiscal year 2020, increasing in revenues and profits
NVIDIA's fiscal 2020 first quarter accounts are better than anticipated, allowing the company to increase market value.
Last year wasn't quite as successful for NVIDIA in the gaming graphics card market. Despite launching new products, sales didn't meet expectations. This trend has now reversed, as evidenced by the financial results for the first quarter of fiscal year 2020 (this is not a typo; the industry operates differently). The company has generated more revenue and increased its profit margin. After a lackluster year , the company is back stronger than ever.
NVIDIA Increases Profits and Profits in the First Quarter of Fiscal Year 20202
The company in the presentation of the fourth quarter of fiscal year 2019 showed weak results. It obtained revenues of $4 million in Q19 FY2205, while in Q1 FY20 it obtained $2220 million. Quarterly, it means that revenue has increased by 1%. Year-on-year the company has lost 31%. But it has also increased in profit margin, going from 54.7% to 58.4%.
It should be noted that NVIDIA was still profiting from the hangover of cryptocurrency mining last year. It wasn't until the middle of the year that things finally deflated. It should be noted that the Turing architecture graphics did not finish working as expected.
Less revenue, but exceeding analyst expectations
Turing is an expensive and unattractive architecture for users. There is not a large catalog of games that support RayTracing and DLSS and that is weighing it down. So much so that 2020 million dollars have entered the GPU market, 27% less than last year. But the good news is that it is 2% more than the last quarter of last fiscal year.
The gaming segment alone represents revenues of $ 1050 billion. It represents 39% less than the figures of a year ago, but 11% more quarter-on-quarter. An excellent data that could be driven by the NVIDIA GTX 16 Series, which seem to have good acceptance.
The professional display segment is also growing. This market registers revenues of 266 million dollars, which is 6% more than the previous year but 9% compared to the previous quarter. Tegra represents revenues of 198 million dollars, down 55% compared to a year ago and 12% compared to the previous quarter. It is clear that this division has its days numbered and that the company has not been interested in it for a long time.
And although the data is not to stop shooting rockets, NVIDIA improves and it shows in the stock market, regaining confidence. This is because dividends of $ 0.81 per share were expected, but $ 0.88 per share will be distributed. The forecast was 2190 billion dollars, but it has been exceeded, reaching 2220 billion dollars, a figure that should be taken into account.
