Nvidia reported $6.7 billion in second-quarter revenue, which fell short of hitting its outlook of $8.1 billion. Despite it being a 3% increase from the same period last year, it still represents a 19% decline from Q1.
In the company’s preliminary financial results released earlier this month, Nvidia attributed the shortfall to “lower sell-in of gaming products reflecting a reduction in channel partner sales.”
The company’s gaming division posted revenue of $2.04 billion, falling 33% from the same period the year prior and 44% from Q1. In Q4FY2022, Nvidia reported record revenue for its gaming division at $3.42 billion, and in Q1, the division set another record of $3.62 billion, a 31% increase from the same period the year prior.
Nvidia released a number of gaming products during the quarter.
- It added 30 RTX On games and apps, including “Evil-Dead: The Game.”
- Nvidia introduced its fastest-ever laptops, including a 2-in-1 convertible gaming model.
- The company added 80 games to its GeForce NOW library including “Mass Effect Legendary Edition.”
Next for Nvidia
The company forecasts $5.9 billion in third-quarter revenue, plus or minus 2%, but expects gaming to continue its decline, partially due to channel partners’ inventory levels.
Nvidia returned $3.44 billion to shareholders in Q2 and plans to continue share repurchases throughout the fiscal year.