Sure, stonking server and gaming sales, but hiring and expenses to slow down, too
Nvidia exceeded market expectations and on Wednesday reported record first-quarter fiscal 2023 revenue of $8.29 billion, an increase of 46 percent from a year ago and eight percent from the previous quarter. Nonetheless the GPU goliath’s stock slipped by more than nine percent in after-hours trading amid remarks by CFO Colette Kress regarding the business’s financial outlook, and plans to slow hiring and limit expenses. Nvidia stock subsequently recovered a little, and was trading down about seven percent at time of publication. Kress said non-GAAP operating expenses in the three months to May 1 increased 35 percent from a year ago to $1.6 billion, and were “driven by employee growth, compensation-related costs and engineering development costs.”
On an earnings call with Wall St analysts, Kress said both the latest COVID-19 super-lockdown in China and Russia’s war in Ukraine have had an impact on revenue. She said the next financial quarter is estimated to bring in about $8.1 billion in revenue, which we note was below analyst expectations of $8.4 billion. This outlook for Q2 “includes an estimated reduction of approximately $500 million relating to Russia and the COVID lockdowns in China”, according to Kress. The lockdown in China, she said, has affected both supply and demand. Limitations on people’s movements are affecting supply logistics and also demand for Nvidia products in the gaming sector.
