Nvidia Says Crypto Drop-Off Helped Drive 'Disappointing' Fourth Quarter
Graphics card maker Nvidia has said the downturn in sales to crypto miners drove a drop in revenue in Q4, despite a record year overall.
U.S.-based graphics card maker Nvidia has said the downturn in sales to cryptocurrency miners drove a "disappointing" fourth quarter.
In its latest financial report, published Thursday, the firm said for Q4, ending Jan. 27, it made revenue of $2.21 billion, down 24 percent from $2.91 billion in the same quarter last year, and down 31 percent from $3.18 billion in the previous quarter.
The firm said it is still feeling the effects of a drop-off in the crypto mining market, with an excess of inventory it had struggled to sell.
Nvidia founder and CEO Jensen Huang commented:
In an earnings call on Feb. 10, Colette Kress, the firm's executive vice president and CFO, added that the issue had caused the firm to reduce shipments in order to allow excess inventory to be sold. She added that inventory is expected to normalize in Q1 in line with its forecast.
The report also provides revenue numbers for the last full year.
Inventory issues aside, Nvidia said it made record revenue for the year of $11.72 billion, up 21 percent from the year prior. It also saw record yearly revenue from its gaming, datacenter, professional visualization and automotive segments.
“Despite this setback, NVIDIA’s fundamental position and the markets we serve are strong," Huang said. "The accelerated computing platform we pioneered is central to some of world’s most important and fastest growing industries – from artificial intelligence to autonomous vehicles to robotics. We fully expect to return to sustained growth."
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.