Nvidia on Wednesday published fourth quarter financial results above market expectations, with record revenue in both its Gaming and Data Center segments. Fourth quarter non-GAAP earnings per diluted share were $3.10 on revenue of $5 billion, up 61 percent year-over-year. Analysts were expecting earnings of $2.81 on revenue of $4.82 billion. For the full fiscal year, non-GAAP earnings per diluted share were $10. Revenue was a record $16.68 billion, up 53 percent.
Nvidia reported revenues of $5.0 billion for its fourth fiscal quarter ended January 31, up 61% from a year earlier. The revenues and non-GAAP earnings per share of $3.10 beat expectations as new gaming hardware and AI products generated strong demand. A year ago, Nvidia reported non-GAAP earnings per share of $1.89 on revenues of $3.1 billion. The Santa Clara, California-based company makes graphics processing units (GPUs) that can be used for games, AI, and datacenter computing. While many businesses have been hit hard by the pandemic, Nvidia has seen a boost in those areas.
Nvidia today announced that it has acquired SwiftStack, a software-centric data storage and management platform that supports public cloud, on-premises and edge deployments. The company's recent launches focused on improving its support for AI, high-performance computing and accelerated computing workloads, which is surely what Nvidia is most interested in here. "Building AI supercomputers is exciting to the entire SwiftStack team," says the company's co-founder and CPO Joe Arnold in today's announcement. "We couldn't be more thrilled to work with the talented folks at NVIDIA and look forward to contributing to its world-leading accelerated computing solutions." The two companies did not disclose the price of the acquisition, but SwiftStack had previously raised about $23.6 million in Series A and B rounds led by Mayfield Fund and OpenView Venture Partners.
If you are trying to figure out what impact the new "Pascal" family of GPUs is going to have on the business at Nvidia, just take a gander at the recent financial results for the datacenter division of the company. If Nvidia had not spent the better part of a decade building its Tesla compute business, it would be a little smaller and quite a bit less profitable. In the company's first quarter of fiscal 2017, which ended on May 1, Nvidia posted sales of 1.31 billion, up 13 percent from the year ago period, and net income hit 196 million, up 46 percent over the same term. These are the kinds of growth numbers that all IT vendors like to show to Wall Street, especially with profit growth significantly outpacing revenue growth. The datacenter portion of Nvidia, which it only started reporting on separately last year and for which it has given two years of financial results since it has become materially relevant, is growing much faster than the overall business.