Nvidia beats lowered earnings expectations, but poor RTX sales sees gaming revenue fall...

midian182

TechSpot Editor
Staff member

Late last month, Nvidia updated its financial guidance for Q4, downgrading its expectations due to weaker than forecast sales in its gaming and datacenter businesses. Yesterday’s results were in line with those predictions.

Non-GAAP earnings per share were 80 cents, while analysts were looking for 75 cents. Revenue, meanwhile, came in at $2.21 billion. While that was down 24 percent YoY, it still beat the $2.20 billion Wall Street expected. Before Nvidia downgraded its guidance, analysts had been expecting $2.7 billion. And although shares are up 15 percent since the beginning of the year, they’re down around 36 percent across the last 12 months.

“This was a turbulent close to what had been a great year," Nvidia CEO Jensen Huang said in the company's press release. "The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing quarter."

Huang said the price of Nvidia's high-end RTX launch cards saw many consumers resisting any purchases until the costs dropped. The delayed release of the RTX 2060—a result of Nvidia trying to get rid of its excess GTX 1060 stock following the crypto crash—also hurt sales.

"The inability to launch [the] 2060 was a big inhibitor for us, but we did so at CES," said Huang.

Looking to the future, Nvidia is predicting that fiscal year 2020 revenue will be "flat to down slightly,” while analysts were expecting a 7 percent decline.

Huang said the upcoming year would be a big one for gaming laptops, with more than 40 set to launch with RTX 2060 cards. And while there are currently few games that take advantage of Turing’s RTX real-time ray tracing capabilities, such as the just-launched Metro Exodus, more of them will start arriving in the coming months.

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p51d007

TS Evangelist
Serves em right! They were getting greedy with the crypto-coin garbage, and
really screwing traditional customers.
 

amstech

IT Overlord
It's funny to hear the guy try and pawn off what's happening to the 2060 not being released. Just admit that you're 2070 and 2080 cards are overpriced and they haven't sold that well. If anything, they have increased the sales of the GTX 1070 and 1080.
 
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Sausagemeat

TS Maniac
I don’t think Nvidia will cut its prices, they might release newer parts that give you more for your money but I expect the top end part to still come in at over $1000.

Also I can see demand for RTX cards growing as more and more games release with ray tracing and other RTX features. After seeing a video of ray tracing on metro I want an RTX card a lot more!
 
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kevbev89

TS Maniac
I don’t think Nvidia will cut its prices, they might release newer parts that give you more for your money but I expect the top end part to still come in at over $1000.

Also I can see demand for RTX cards growing as more and more games release with ray tracing and other RTX features. After seeing a video of ray tracing on metro I want an RTX card a lot more!
I'm purposely avoiding any videos that show the effects of RTX so I won't feel the itch to get a RTX card.

I'm pretty happy with my 1080Ti at the moment, hopefully it can hold out for a couple more years to come.
 

Evernessince

TS Evangelist
I don’t think Nvidia will cut its prices, they might release newer parts that give you more for your money but I expect the top end part to still come in at over $1000.

Also I can see demand for RTX cards growing as more and more games release with ray tracing and other RTX features. After seeing a video of ray tracing on metro I want an RTX card a lot more!
I'm purposely avoiding any videos that show the effects of RTX so I won't feel the itch to get a RTX card.

I'm pretty happy with my 1080Ti at the moment, hopefully it can hold out for a couple more years to come.
Don't bother

https://www.youtube.com/watch?v=-mEP5k_-zso

The visual difference is minimal and the performance impact is high. You could easily make the case that non-RTX metro looks better.
 

Sausagemeat

TS Maniac
It could be argued that NVIDIA was in competition with itself, with no high-end competitor card from a different company. Why buy an RTX card when the GTX 10 series cards offer same or better performance per dollar? Isn't it supposed to be the other way around?
I agree, Nvidia seemed to either be selling last years overstock at a discount or this years RTX for more money but without a games market that takes advantage of it. I expect RTX demand to increase as more titles release that support the features alongside better pricing as Nvidia won’t have an inventory of older cards to clear.
 
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Burty117

TechSpot Chancellor
No reason to upgrade to overpriced garbage when my GTX 1080 Ti blasts through every game I throw at it.
The 1080Ti wasn't exactly a deal, either, as it was quite overpriced itself.
Yeah but, come on? Nearly 3 years later and it's still the second most powerful GPU on the market. And the only card that beats it is nearly double the launch price of the 1080Ti.

Back then, I also thought it was overpriced, but without competition, we can now look back and realize just how much of a deal that was. It's been a very long time since we've seen a top end card, stay a top end card past 3 years of age.
 
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Rylen

TS Rookie
No reason to upgrade to overpriced garbage when my GTX 1080 Ti blasts through every game I throw at it.
The 1080Ti wasn't exactly a deal, either, as it was quite overpriced itself.
Yeah but, come on? Nearly 3 years later and it's still the second most powerful GPU on the market. And the only card that beats it is nearly double the launch price of the 1080Ti.

Back then, I also thought it was overpriced, but without competition, we can now look back and realize just how much of a deal that was. It's been a very long time since we've seen a top end card, stay a top end card past 3 years of age.
Chill, 1080 Ti turns 2 next month. And Radeon VII is overclocking to 2100 with latest drivers
 

texasrattler

TS Evangelist
If they arent selling well, my area cant keep them in stock. People diffenately are willing to pay. 2070 and 2080s come into the area but the tend to sell quick. It may help that im near a military base n soldiers spend money on just about anything lol.
2060s havent been seen much, they just starting to arrive in my area. 2080 TI is still rare to see in stores.

Our main store here is Best Buy, while not the big version of their store (smaller store here), they still sell out. Even the IBuyPower desktop with a 2080 sells out constantly.

From my perspective, they sell fine here. Maybe overall not as much but with tax season starting now, people will be out spending. At least thats whats happening here.

Im in central texas area.
 

pcnthuziast

TS Evangelist
This is what happens when the distance between msrp and actual retail prices soars to up to 50% and even 2 years after a card is released, you'll be lucky to find one within 5-10% of the original msrp.

Overpriced is entirely subjective though and only the individual can decide for them self whether or not any given price for any given item is worthwhile for them specifically. That being said, there are different ways people buy top end stuff. Either on the basis of money is no object so they buy what they want, when they want and how long they have something and subsequent use they get out of it, is meaningless to the joy of having the best at any moment, whatever the cost. Or that it is warranted to buy the absolute best you can afford on the basis of you plan to keep it till the wheels fall off and will gladly prolong an upgrade many years to get the most out of your initial purchase. I'm sort of in the middle, but to me it's an odd paradox right now with the 9th gen cpus and the 20 series gpus. End of life for the arch and process, but highly mature and refined, 10nm will hopefully be a bigger performance leap than the last handful of gens combined. Then you have the gpu that is gen 1.
 
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Bp968

TS Booster
I don’t think Nvidia will cut its prices, they might release newer parts that give you more for your money but I expect the top end part to still come in at over $1000.

Also I can see demand for RTX cards growing as more and more games release with ray tracing and other RTX features. After seeing a video of ray tracing on metro I want an RTX card a lot more!
Did we see the same video? Gamers Nexus did a 20-30 minute breakdown of the GI RTX implementation in Metro Exodus and it absolutely isn't worth the few hundred dollar premium it costs, nor the significant performance cost. I'd vastly prefer to play the game in 4K or 21:9 widescreen.

If the 2080ti had been priced at the same price point as the 1080ti this would be a totally different conversation, and RTX would look like a mostly "free" addon. But since upgrading from a 1080ti to a 2080 is just silly, and the 2080ti price is just silly for the small gains over the 1080ti, it looks like most of us 1080ti owners will likely just wait and see what everyone drops in 2020 (and Nvidia is quite likely to drop an entirely new GPU design in 2020 if Intel is even remotely competitive with their new GPU).