Professional visualization approaches $1 billion in revenue and sets a record at NVIDIA with 12% growth year-over-year. The Gaming market leads revenue & the Data Center market leads growth.
Quadro products set a record for revenue at NVIDIA in fiscal 2019. $254 million in quarterly revenue which is 13% year-on-year. $934 million in Professional Visualization represents 12% growth. The company also set new records for quarterly revenue, annual revenue, and gross margins.
Records in Fiscal 2018
NVIDIA announced records in essentially every measure of profit and revenue.
- $9.71 billion annual revenues, $2.91 quarterly revenues
- 62.1% quarterly gross margins
- $1.118 billion in quarterly net revenue
- $3.047 billion in annual net revenue
NVIDIA CEO Jensen Huang highlights Quadro as a workstation processor for which the entire software stack has been designed for the professional workstation market. The combination of GPU, hardware, and software is designed to be a professional class, professional grade, and long life solution.
Professional visualization continues to grow due to requirements in high-end visualization in virtual reality as well design applications.
Artificial Intelligence is playing a role in the Quadro business as well. AI is able to fix images, enhance images, and accelerate the rendering of images. AI can assist engineers and designers in the design process through generative design features.
Professional Visualization represents about 10% of NVIDIA's revenue. It is likely to represent 20% - 30% of the company's gross margin which makes Professional Visualization a key market for NVIDIA.
The PW Perspective
NVIDIA hit the financial ball out of the park in 2018. PW is delighted to see the professional visualization market do so well. Growth in Data Center revenue is exploding which will be a solid foundation for the company's future. And with all of that, Gaming accounts for more than 50% of the total business. The company is positioned as the AI platform and has a strategy to push the market in both vertical markets, like autonomous vehicles, as well as to push the broad AI market through training, investment, education, and broad-market computing providers.
The professional visualization market adds a much higher percentage of net income and profit to the company that its 10% revenue level might suggest. This makes it critical to the company and it is why professionals continue to see strong investments from NVIDIA in solutions and technology for professional workstations. The market is obviously pushed through VR, but AI is not to be ignored in the professional workstation market as technologies like generative design are still in their infancy.