Nvidia reports $7.6 billion revenue in Q4 after Arm deal collapses

For fiscal year 2022, the company had a revenue of $26.91 billion.
Written by Jonathan Greig, Contributor on

Nvidia delivered strong fourth quarter financial results on Wednesday after its massive deal to acquire Arm fell apart last week. 

The Santa Clara, Calif.-based company reported Q4 non-GAAP earnings of $1.32 per share on revenue of $7.64 billion, up 53% from a year earlier. Wall Street was expecting to see earnings of $1.23 per share with $7.42 billion in revenue.

This is the first earnings report released since NVIDIA announced it would no longer be acquiring Arm from SoftBank. The controversial deal fell apart last week "because of significant regulatory challenges preventing the consummation of the transaction, despite good faith efforts by the parties," according to NVIDIA and SoftBank. 

The deal faced scrutiny from regulators in the US, UK and China, all of whom questioned whether the purchase could lead to eventual restrictions of Arm IP, causing downstream ripple effects to prices and competition.  

Nvidia said it plans to "record in operating expenses a $1.36 billion charge (the Arm Write-off) in the first quarter of fiscal 2023 reflecting the write-off of the prepayment provided at signing in September 2020."

For fiscal 2022, the company brought in a revenue of $26.91 billion, up 61% year over year. Non-GAAP earnings per diluted share for the year were $4.44. 

"We are seeing exceptional demand for Nvidia computing platforms. NVIDIA is propelling advances in AI, digital biology, climate sciences, gaming, creative design, autonomous vehicles and robotics – some of today's most impactful fields," said Jensen Huang, founder and CEO of Nvidia.

"We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with Nvidia AI, Nvidia Omniverse and NVIDIA DRIVE. GTC is coming. We will announce many new products, applications and partners for Nvidia computing."

Breaking down business segments, Nvidia said gaming revenue grew 37% year over year to $3.42 billion. The company said the increase reflects strong demand for gaming GPUs and game-console SOCs. For the full fiscal year, gaming revenue was $12.46 billion.

Meanwhile, Nvidia's data center revenue increased 71% year over year to $3.26 billion. Revenue from Nvidia's professional visualization segment reached $643 million, up 109% from a year ago, with growth led by desktop workstation GPUs. The company's automotive unit revenue came to $125 million.

In terms of guidance, Nvidia expects Q1 revenue of $8.10 billion, plus or minus 2%. 

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