NVIDIA Announces Financial Results for Second Quarter Fiscal 2021

  • Record reve짯nue of $3.87 bil짯li짯on, up 50 per짯cent from a year earlier
  • Record Data Cen짯ter reve짯nue of $1.75 bil짯li짯on, up 167 per짯cent from a year earlier
  • Mel짯lan짯ox growth acce짯le짯ra짯ted in its first quar짯ter as part of NVIDIA, con짯tri짯bu짯ted 14 per짯cent of revenue

NVIDIA today repor짯ted record reve짯nue for the second quar짯ter ended July 26, 2020, of $3.87 bil짯li짯on, up 50 per짯cent from $2.58 bil짯li짯on a year ear짯lier, and up 26 per짯cent from $3.08 bil짯li짯on in the pre짯vious quarter.

GAAP ear짯nings per diluted share for the quar짯ter were $0.99, up 10 per짯cent from $0.90 a year ago, and down 33 per짯cent from $1.47 in the pre짯vious quar짯ter. Non-GAAP ear짯nings per diluted share were $2.18, up 76 per짯cent from $1.24 a year ear짯lier, and up 21 per짯cent from $1.80 in the pre짯vious quarter.

NVIDIA clo짯sed its acqui짯si짯ti짯on of Mel짯lan짯ox Tech짯no짯lo짯gies Ltd. on April 27, 2020. 

Adop짯ti짯on of NVIDIA com짯pu짯ting is acce짯le짯ra짯ting, dri짯ving record reve짯nue and excep짯tio짯nal growth, said Jen짯sen Huang, foun짯der and CEO of NVIDIA. 쏥rowth in GeForce gam짯ing acce짯le짯ra짯ted as gamers incre짯asing짯ly immer짯se them짯sel짯ves in rea짯li짯stic vir짯tu짯al worlds crea짯ted by NVIDIA RTX ray tra짯cing and AI.

Our new Ampere GPU archi짯tec짯tu짯re is sprin짯ting out of the blocks, with the world셲 top cloud ser짯vice pro짯vi짯ders and ser짯ver makers moving quick짯ly to offer NVIDIA acce짯le짯ra짯ted com짯pu짯ting. Mel짯lan짯ox grew shar짯ply, dri짯ven by the need for high-speed net짯wor짯king in cloud data cen짯ters to sca짯le-out AI ser짯vices. And Mercedes-Benz셲 part짯ner짯ship with NVIDIA to power its next-gene짯ra짯ti짯on fleet of luxu짯ry cars from the com짯pu짯ter to the AI soft짯ware, and from the cloud to the car is transformative.

Despi짯te the pandemic셲 impact on our pro짯fes짯sio짯nal visua짯liza짯ti짯on and auto짯mo짯ti짯ve plat짯forms, we are well posi짯tio짯ned to grow, as gam짯ing, AI, cloud com짯pu짯ting and auto짯no짯mous machi짯nes dri짯ve the next indus짯tri짯al revo짯lu짯ti짯on around the world, he said.

NVIDIA paid $99 mil짯li짯on in quar짯ter짯ly cash divi짯dends in the second quar짯ter. It will pay its next quar짯ter짯ly cash divi짯dend of $0.16 per share on Sep짯tem짯ber 24, 2020, to all share짯hol짯ders of record on Sep짯tem짯ber 2, 2020.

Q2 Fis짯cal 2021 Summary

GAAP
($ in mil짯li짯ons, except
ear짯nings per share)
Q2 FY21 Q1 FY21 Q2 FY20 Q/Q Y/Y
Reve짯nue $3,866 $3,080 $2,579 Up 26% Up 50%
Gross mar짯gin 58.8% 65.1% 59.8% Down 630 bps Down 100 bps
Ope짯ra짯ting expenses $1,624 $1,028 $970 Up 58% Up 67%
Ope짯ra짯ting income $651 $976 $571 Down 33% Up 14%
Net inco짯me $622 $917 $552 Down 32% Up 13%
Diluted ear짯nings per share $0.99 $1.47 $0.90 Down 33% Up 10%

 

Non-GAAP
($ in mil짯li짯ons, except
ear짯nings per share)
Q2 FY21 Q1 FY21 Q2 FY20 Q/Q Y/Y
Reve짯nue $3,866 $3,080 $2,579 Up 26% Up 50%
Gross mar짯gin 66.0% 65.8% 60.1% Up 20 bps Up 590 bps
Ope짯ra짯ting expenses $1,035 $821 $749 Up 26% Up 38%
Ope짯ra짯ting income $1,516 $1,205 $802 Up 26% Up 89%
Net inco짯me $1,366 $1,120 $762 Up 22% Up 79%
Diluted ear짯nings per share $2.18 $1.80 $1.24 Up 21% Up 76%

NVIDIA셲 out짯look for the third quar짯ter of fis짯cal 2021 is as follows:

  • Reve짯nue is expec짯ted to be $4.40 bil짯li짯on, plus or minus 2 percent.
  • GAAP and non-GAAP gross mar짯gins are expec짯ted to be 62.5 per짯cent and 65.5 per짯cent, respec짯tively, plus or minus 50 basis points.
  • GAAP and non-GAAP ope짯ra짯ting expen짯ses are expec짯ted to be appro짯xi짯m짯ate짯ly $1.54 bil짯li짯on and $1.09 bil짯li짯on, respectively.
  • GAAP and non-GAAP other inco짯me and expen짯se are both expec짯ted to be an expen짯se of appro짯xi짯m짯ate짯ly $55 million.
  • GAAP and non-GAAP tax rates are both expec짯ted to be 8 per짯cent, plus or minus 1 per짯cent, exclu짯ding any dis짯crete items. GAAP dis짯crete items include excess tax bene짯fits or defi짯ci짯en짯ci짯es rela짯ted to stock-based com짯pen짯sa짯ti짯on, which are expec짯ted to gene짯ra짯te varia짯bi짯li짯ty on a quar짯ter by quar짯ter basis.

High짯lights

Sin짯ce its pre짯vious ear짯nings report, NVIDIA has achie짯ved pro짯gress in the짯se areas:

Data Cen짯ter

  • Second-quar짯ter reve짯nue, which included Mel짯lan짯ox, was $1.75 bil짯li짯on, up 54 per짯cent from the pre짯vious quar짯ter and up 167 per짯cent from a year earlier.
  • Announ짯ced, tog짯e짯ther with the world셲 lea짯ding ser짯ver makers, more than 50 NVIDIA짰 A100-powered sys짯tems to tack짯le the most com짯plex chal짯lenges in AI, data sci짯ence and sci짯en짯ti짯fic computing.
  • Powered eight of the top 10, and two-thirds of the total sys짯tems, on the latest TOP500 list of the world셲 fas짯test super짯com짯pu짯ters. This includes NVIDIA Sele짯ne, an NVIDIA DGX Super짯POD꽓 sys짯tem, which ran짯ked No. 7 on the list and was No. 2 on the Green500 list.
  • Set 16 AI per짯for짯mance records on the latest MLPerf bench짯marks, eight on a per-chip basis based on the A100 Ten짯sor Core GPU and eight 쏿t sca짯le using the DGX A100 Super짯POD system.
  • Made the NVIDIA A100 Ten짯sor Core GPU available on Goog짯le Cloud just over a month after its introduction.
  • Pro짯vi짯ded CUDA GPU-acce짯le짯ra짯ti짯on for Apa짯che Spark, the world셲 most popu짯lar data ana짯ly짯tics appli짯ca짯ti짯on, through the gene짯ral avai짯la짯bi짯li짯ty release of Spark 3.0.
  • Unvei짯led the NVIDIA Mel짯lan짯ox짰 UFM Cyber-AI Plat짯form, which mini짯mi짯zes down짯ti짯me in super짯com짯pu짯ting data cen짯ters by detec짯ting secu짯ri짯ty thre짯ats and ope짯ra짯tio짯nal issues and pre짯dic짯ting net짯work failures.

Gam짯ing

  • Second-quar짯ter reve짯nue was $1.65 bil짯li짯on, up 24 per짯cent from the pre짯vious quar짯ter and up 26 per짯cent from a year earlier.
  • Ram짯ped 100+ new GeForce lap짯tops to deli짯ver out짯stan짯ding per짯for짯mance to stu짯dents, crea짯tors and gamers across a ran짯ge of pri짯ce points.
  • Announ짯ced a ran짯ge of games now sup짯port짯ing NVIDIA RTX ray tra짯cing and DLSS AI super reso짯lu짯ti짯on, inclu짯ding, Jus짯ti짯ceCyber짯punk 2077 and Death Stran짯ding. Intro짯du짯ced new worlds for Mine짯craft with RTX
  • Expan짯ded GeForce NOW꽓 to Chrome짯books, enab짯ling mil짯li짯ons of users to play games in the cloud.
  • Announ짯ced that Squa짯re Enix is adding its exten짯si짯ve cata짯log to GeForce NOW, inclu짯ding fran짯chi짯ses such as Deus Ex and Just Cau짯se, plus Shadow of the Tomb Rai짯der, which retur짯ned with RTX On.

Pro짯fes짯sio짯nal Visualization

  • Second-quar짯ter reve짯nue was $203 mil짯li짯on, down 34 per짯cent from the pre짯vious quar짯ter and down 30 per짯cent from a year earlier.
  • Laun짯ched with Acer, Dell, Leno짯vo and Micro짯soft new mobi짯le work짯sta짯tions for pro짯fes짯sio짯nal crea짯tors, based on NVIDIA Qua짯dro짰 gra짯phics. Powered new AI fea짯tures in the latest releases of Sub짯s짯tance Alche짯mist and Blen짯der, impro짯ving mate짯ri짯al crea짯ti짯on and incor짯po짯ra짯ting AI denoising.
  • Announ짯ced that NVIDIA RTX꽓 has been imple짯men짯ted in the latest appli짯ca짯ti짯on releases from Foundry, Cha짯os Group and Reds짯hift by Maxon, giving crea짯tors access to fas짯ter ray tra짯cing and acce짯le짯ra짯ted performance.
  • Released NVIDIA Qua짯dro View꽓, the latest appli짯ca짯ti짯on in the NVIDIA Qua짯dro Expe짯ri짯ence plat짯form, which aids in stream짯li짯ning work짯flows with a suite of desk짯top manage짯ment tools.

Auto짯mo짯ti짯ve

  • Second-quar짯ter reve짯nue was $111 mil짯li짯on, down 28 per짯cent from the pre짯vious quar짯ter and down 47 per짯cent from a year earlier.
  • Announ짯ced with Mer짯ce짯des-Benz that the car짯ma짯ker is inte짯gra짯ting into every vehic짯le in its lin짯e짯up, begin짯ning in 2024, a new soft짯ware-defi짯ned vehic짯le archi짯tec짯tu짯re that is per짯pe짯tual짯ly upgradeable and built on the NVIDIA DRIVE AV auto짯no짯mous dri짯ving soft짯ware and NVIDIA AGX Orin꽓 AV computer.

CFO Com짯men짯ta짯ry
Com짯men짯ta짯ry on the quar짯ter by Colet짯te Kress, NVIDIA셲 exe짯cu짯ti짯ve vice pre짯si짯dent and chief finan짯cial offi짯cer, is available at https://investor.nvidia.com/home/default.aspx.

Con짯fe짯rence Call and Web짯cast Information

NVIDIA will con짯duct a con짯fe짯rence call with ana짯lysts and inves짯tors to dis짯cuss its second quar짯ter fis짯cal 2021 finan짯cial results and cur짯rent finan짯cial pro짯s짯pects today at 2 p.m. Paci짯fic time (5 p.m. Eas짯tern time). A live web짯cast (lis짯ten-only mode) of the con짯fe짯rence call will be acces짯si짯ble at NVIDIA셲 inves짯tor rela짯ti짯ons web짯site, https://investor.nvidia.com/home/default.aspx. The web짯cast will be recor짯ded and available for replay until NVIDIA셲 con짯fe짯rence call to dis짯cuss its finan짯cial results for its third quar짯ter of fis짯cal 2021.

Non-GAAP Mea짯su짯res

To sup짯ple짯ment NVIDIA셲 con짯den짯sed con짯so짯li짯da짯ted finan짯cial state짯ments pre짯sen짯ted in accordance with GAAP, the com짯pa짯ny uses non-GAAP mea짯su짯res of cer짯tain com짯pon짯ents of finan짯cial per짯for짯mance. The짯se non-GAAP mea짯su짯res include non-GAAP gross pro짯fit, non-GAAP gross mar짯gin, non-GAAP ope짯ra짯ting expen짯ses, non-GAAP inco짯me from ope짯ra짯ti짯ons, non-GAAP other inco짯me (expen짯se), net, non-GAAP inco짯me tax expen짯se, non-GAAP net inco짯me, non-GAAP net inco짯me, or ear짯nings, per diluted share, and free cash flow. In order for NVIDIA셲 inves짯tors to be bet짯ter able to compa짯re its cur짯rent results with tho짯se of pre짯vious peri짯ods, the com짯pa짯ny has shown a recon짯ci짯lia짯ti짯on of GAAP to non-GAAP finan짯cial mea짯su짯res. The짯se recon짯ci짯lia짯ti짯ons adjust the rela짯ted GAAP finan짯cial mea짯su짯res to exclude stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted and other cos짯ts, legal sett짯le짯ment cos짯ts, los짯ses from non-affi짯lia짯ted invest짯ments, inte짯rest expen짯se rela짯ted to amor짯tiza짯ti짯on of debt dis짯count, and the asso짯cia짯ted tax impact of the짯se items, whe짯re appli짯ca짯ble. Free cash flow is cal짯cu짯la짯ted as GAAP net cash pro짯vi짯ded by ope짯ra짯ting acti짯vi짯ties less purcha짯se of pro짯per짯ty and equip짯ment and intan짯gi짯ble assets. NVIDIA belie짯ves the pre짯sen짯ta짯ti짯on of its non-GAAP finan짯cial mea짯su짯res enhan짯ces the user셲 over짯all under짯stan짯ding of the company셲 his짯to짯ri짯cal finan짯cial per짯for짯mance. The pre짯sen짯ta짯ti짯on of the company셲 non-GAAP finan짯cial mea짯su짯res is not meant to be con짯side짯red in iso짯la짯ti짯on or as a sub짯sti짯tu짯te for the company셲 finan짯cial results pre짯pared in accordance with GAAP, and the company셲 non-GAAP mea짯su짯res may be dif짯fe짯rent from non-GAAP mea짯su짯res used by other companies.

 

NVIDIA CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In mil짯li짯ons, except per share data)
(Unau짯di짯ted)
               
  Three Months Ended   Six Months Ended
  July 26,   July 28,   July 26,   July 28,
    2020       2019       2020       2019  
               
Reve짯nue $ 3,866     $ 2,579     $ 6,946     $ 4,799  
Cost of revenue   1,591       1,038       2,667       1,962  
Gross pro짯fit   2,275       1,541       4,279       2,837  
Ope짯ra짯ting expenses                  
Rese짯arch and development   997       704       1,732       1,379  
Sales, gene짯ral and administrative   627       266       920       529  
Total ope짯ra짯ting expenses   1,624       970       2,652       1,908  
Inco짯me from operations   651       571       1,627       929  
Inte짯rest income   13       47       44       92  
Inte짯rest expense   (54 )     (13 )     (78 )     (27 )
Other, net   (1 )     1       (2 )     1  
Other inco짯me (expen짯se), net   (42 )     35       (36 )     66  
Inco짯me befo짯re inco짯me tax   609       606       1,591       995  
Inco짯me tax expen짯se (bene짯fit)   (13 )     54       52       48  
Net inco짯me $ 622     $ 552     $ 1,539     $ 947  
               
Net inco짯me per share:              
Basic $ 1.01     $ 0.91     $ 2.50     $ 1.56  
Diluted $ 0.99     $ 0.90     $ 2.47     $ 1.54  
               
Weigh짯ted avera짯ge shares used in per share computation:            
Basic   616       609       615       608  
Diluted   626       616       624       616  
                               

 

NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In mil짯li짯ons)
(Unau짯di짯ted)
       
  July 26,   Janu짯ary 26,
    2020       2020  
ASSETS      
       
Cur짯rent assets:      
Cash, cash equi짯va짯lents and mar짯ke짯ta짯ble securities $ 10,981     $ 10,897  
Accounts receiva짯ble, net   2,084       1,657  
Invent짯ories   1,401       979  
Pre짯paid expen짯ses and other cur짯rent assets   215       157  
Total cur짯rent assets   14,681       13,690  
       
Pro짯per짯ty and equip짯ment, net   1,964       1,674  
Ope짯ra짯ting lea짯se assets   701       618  
Good짯will   4,193       618  
Intan짯gi짯ble assets, net   2,854       49  
Defer짯red inco짯me tax assets   630       548  
Other assets   157       118  
Total assets $ 25,180     $ 17,315  
       
LIABILITIES AND SHAREHOLDERS EQUITY              
       
Cur짯rent liabilities:      
Accounts paya짯ble $ 893     $ 687  
Accrued and other cur짯rent liabilities   1,517       1,097  
Total cur짯rent liabilities   2,410       1,784  
       
Long-term debt   6,960       1,991  
Long-term ope짯ra짯ting lea짯se liabilities   611       561  
Other long-term liabilities   1,285       775  
Total lia짯bi짯li짯ties   11,266       5,111  
       
Share짯hol짯ders equity   13,914       12,204  
Total lia짯bi짯li짯ties and share짯hol짯ders equity $ 25,180     $ 17,315  
       

 

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In mil짯li짯ons)
(Unau짯di짯ted)
                 
    Three Months Ended   Six Months Ended
    July 26,   July 28,   July 26,   July 28,
      2020       2019       2020       2019  
                 
Cash flows from ope짯ra짯ting activities:              
Net inco짯me $ 622     $ 552     $ 1,539     $ 947  
Adjus짯t짯ments to recon짯ci짯le net inco짯me to net cash              
pro짯vi짯ded by ope짯ra짯ting activities:              
Depre짯cia짯ti짯on and amortization   404       92       511       183  
Stock-based com짯pen짯sa짯ti짯on expense   374       223       598       401  
Defer짯red inco짯me taxes   (80 )     15       (64 )     (27 )
Other   (8 )     4       (5 )     1  
Chan짯ges in ope짯ra짯ting assets and lia짯bi짯li짯ties, net of acquisitions:              
Accounts receiva짯ble   44       (319 )     (205 )     (137 )
Invent짯ories   54       225       (97 )     378  
Pre짯paid expen짯ses and other assets   42       31       34       36  
Accounts paya짯ble   (8 )     78       63       (45 )
Accrued and other cur짯rent liabilities   112       49       81       (79 )
Other long-term liabilities   10       (14 )     21       (2 )
Net cash pro짯vi짯ded by ope짯ra짯ting activities   1,566       936       2,476       1,656  
Cash flows from inves짯t짯ing activities:              
Pro짯ceeds from matu짯ri짯ties of mar짯ke짯ta짯ble securities   1,032       1,372       1,032       3,592  
Pro짯ceeds from sales of mar짯ke짯ta짯ble securities   258       3,126       259       3,152  
Purcha짯ses of mar짯ke짯ta짯ble securities   (7,425 )     (840 )     (8,286 )     (1,461 )
Acqui짯si짯ti짯on of busi짯nesses, net of cash acquired   (7,137 )     -       (7,171 )     -  
Purcha짯ses of pro짯per짯ty and equip짯ment and intan짯gi짯ble assets   (217 )     (113 )     (372 )     (241 )
Invest짯ments and other, net   -       (2 )     (7 )     (2 )
Net cash pro짯vi짯ded by (used in) inves짯t짯ing activities   (13,489 )     3,543       (14,545 )     5,040  
Cash flows from finan짯cing activities:              
Pro짯ceeds rela짯ted to employee stock plans   6       1       94       83  
Pay짯ments rela짯ted to tax on rest짯ric짯ted stock units   (196 )     (50 )     (418 )     (261 )
Divi짯dends paid   (99 )     (97 )     (197 )     (195 )
Issu짯an짯ce of debt, net of issu짯an짯ce costs   (8 )     -       4,971       -  
Other   -       -       (3 )     -  
Net cash pro짯vi짯ded by (used in) finan짯cing activities   (297 )     (146 )     4,447       (373 )
Chan짯ge in cash and cash equivalents   (12,220 )     4,333       (7,622 )     6,323  
Cash and cash equi짯va짯lents at begin짯ning of period   15,494       2,772       10,896       782  
Cash and cash equi짯va짯lents at end of period $ 3,274     $ 7,105     $ 3,274     $ 7,105  
                 

 

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In mil짯li짯ons, except per share data)
(Unau짯di짯ted)
               
  Three Months Ended   Six Months Ended
  July 26,   April 26,   July 28,   July 26,   July 28,
    2020       2020       2019       2020       2019  
                   
GAAP gross profit $ 2,275     $ 2,004     $ 1,541     $ 4,279     $ 2,837  
GAAP gross margin   58.8 %     65.1 %     59.8 %     61.6 %     59.1 %
Stock-based com짯pen짯sa짯ti짯on expen짯se (A)   14       21       8       35       12  
Acqui짯si짯ti짯on-rela짯ted and other cos짯ts (B)   245       1       -       246       -  
Legal sett짯le짯ment costs   17       -       2       17       11  
Non-GAAP gross profit $ 2,551     $ 2,026     $ 1,551     $ 4,577     $ 2,860  
Non-GAAP gross margin   66.0 %     65.8 %     60.1 %     65.9 %     59.6 %
                   
GAAP ope짯ra짯ting expenses $ 1,624     $ 1,028     $ 970     $ 2,652     $ 1,908  
Stock-based com짯pen짯sa짯ti짯on expen짯se (A)   (360 )     (203 )     (216 )     (563 )     (389 )
Acqui짯si짯ti짯on-rela짯ted and other cos짯ts (B)   (229 )     (4 )     (5 )     (233 )     (15 )
Legal sett짯le짯ment costs   -       -       -       -       (2 )
Non-GAAP ope짯ra짯ting expenses $ 1,035     $ 821     $ 749     $ 1,856     $ 1,502  
                   
GAAP inco짯me from operations $ 651     $ 976     $ 571     $ 1,627     $ 929  
Total impact of non-GAAP adjus짯t짯ments to inco짯me from operations   865       229       231       1,094       429  
Non-GAAP inco짯me from operations $ 1,516     $ 1,205     $ 802     $ 2,721     $ 1,358  
                   
GAAP other inco짯me (expen짯se), net $ (42 )   $ 5     $ 35     $ (36 )   $ 66  
Los짯ses from non-affi짯lia짯ted investments   2       3       -       5       -  
Inte짯rest expen짯se rela짯ted to amor짯tiza짯ti짯on of debt discount   1       1       -       1       1  
Non-GAAP other inco짯me (expen짯se), net $ (39 )   $ 9     $ 35     $ (30 )   $ 67  
                   
GAAP net income $ 622     $ 917     $ 552     $ 1,539     $ 947  
Total pre-tax impact of non-GAAP adjustments   868       232       231       1,100       430  
Inco짯me tax impact of non-GAAP adjustments 짤   (124 )     (29 )     (21 )     (153 )     (72 )
Non-GAAP net income $ 1,366     $ 1,120     $ 762     $ 2,486     $ 1,305  
                   
Diluted net inco짯me per share                  
GAAP $ 0.99     $ 1.47     $ 0.90     $ 2.47     $ 1.54  
Non-GAAP $ 2.18     $ 1.80     $ 1.24     $ 3.98     $ 2.12  
                   
Weigh짯ted avera짯ge shares used in diluted net inco짯me per share computation   626       622       616       624       616  
                   
GAAP net cash pro짯vi짯ded by ope짯ra짯ting activities $ 1,566     $ 909     $ 936     $ 2,476     $ 1,656  
Purcha짯se of pro짯per짯ty and equip짯ment and intan짯gi짯ble assets   (217 )     (155 )     (113 )     (372 )     (241 )
Free cash flow $ 1,349     $ 754     $ 823     $ 2,104     $ 1,415  
                   
 
                   
(A) Stock-based com짯pen짯sa짯ti짯on con짯sists of the following: Three Months Ended   Six Months Ended
  July 26,   April 26,   July 28,   July 26,   July 28,
    2020       2020       2019       2020       2019  
Cost of revenue $ 14     $ 21     $ 8     $ 35     $ 12  
Rese짯arch and development $ 228     $ 134     $ 145     $ 362     $ 259  
Sales, gene짯ral and administrative $ 132     $ 69     $ 71     $ 201     $ 130  
                   
(B) Acqui짯si짯ti짯on-rela짯ted and other cos짯ts pri짯ma짯ri짯ly include amor짯tiza짯ti짯on of intan짯gi짯ble assets, inven짯to짯ry step-up, tran짯sac짯tion cos짯ts, and cer짯tain com짯pen짯sa짯ti짯on charges.
짤 Inco짯me tax impact of non-GAAP adjus짯t짯ments, inclu짯ding the reco짯gni짯ti짯on of excess tax bene짯fits or defi짯ci짯en짯ci짯es rela짯ted to stock-based com짯pen짯sa짯ti짯on under GAAP accoun짯ting stan짯dard (ASU 2016-09).
 
                   

 

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
 
  Q3 FY2021
Outlook
  ($ in millions)
   
GAAP gross margin   62.5 %
Impact of stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted cos짯ts, and other costs   3.0 %
Non-GAAP gross margin   65.5 %
   
GAAP ope짯ra짯ting expenses $ 1,535  
Stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted cos짯ts, and other costs   (445 )
Non-GAAP ope짯ra짯ting expenses $ 1,090  
   

About NVIDIA
NVIDIA셲 (NASDAQ: NVDA) inven짯ti짯on of the GPU in 1999 spark짯ed the growth of the PC gam짯ing mar짯ket, rede짯fi짯ned modern com짯pu짯ter gra짯phics and revo짯lu짯tio짯ni짯zed par짯al짯lel com짯pu짯ting. More recent짯ly, GPU deep lear짯ning igni짯ted modern AI the next era of com짯pu짯ting with the GPU acting as the brain of com짯pu짯ters, robots and self-dri짯ving cars that can per짯cei짯ve and under짯stand the world. More infor짯ma짯ti짯on at http://nvidianews.nvidia.com/.

Cer짯tain state짯ments in this press release inclu짯ding, but not limi짯t짯ed to, state짯ments as to: the adop짯ti짯on of com짯pu짯ting acce짯le짯ra짯ting and it dri짯ving reve짯nue and growth; growth in gam짯ing and NVIDIA Net짯wor짯king; Ampere sprin짯ting out of the blocks; top cloud ser짯vice pro짯vi짯ders and ser짯ver makers moving to offer NVIDIA acce짯le짯ra짯ted com짯pu짯ting; our part짯ner짯ship with Mer짯ce짯des-Benz powe짯ring the next gene짯ra짯ti짯on of luxu짯ry cars and being trans짯for짯ma짯ti짯ve; the pandemic셲 impact; our posi짯ti짯on for growth; gam짯ing, AI, cloud com짯pu짯ting and auto짯no짯mous machi짯nes dri짯ving the next indus짯tri짯al revo짯lu짯ti짯on; NVIDIA셲 capi짯tal return pro짯gram; NVIDIA셲 next quar짯ter짯ly cash divi짯dend; NVIDIA셲 finan짯cial out짯look for the third quar짯ter of fis짯cal 2021; NVIDIA셲 expec짯ted tax rates for the third quar짯ter of fis짯cal 2021; NVIDIA셲 expec짯ta짯ti짯on to gene짯ra짯te varia짯bi짯li짯ty from excess tax bene짯fits or defi짯ci짯en짯ci짯es; the bene짯fits, abili짯ties and impact of our pro짯ducts and tech짯no짯lo짯gies, inclu짯ding our Ampere GPU archi짯tec짯tu짯re, Spark 3.0, GeForce, NVIDIA Qua짯dro and Qua짯dro View; the super짯com짯pu짯ters our pro짯ducts power; set짯ting AI per짯for짯mance records; NVIDIA Mel짯lan짯ox UFM Cyber-AI Plat짯form mini짯mi짯zing down짯ti짯me in super짯com짯pu짯ting data cen짯ters; the games sup짯port짯ing NVIDIA fea짯tures; Squa짯re Enix adding its cata짯log to GeForce NOW and their fea짯tures; powe짯ring AI fea짯tures in Sub짯s짯tance Alche짯mist and Blen짯der and the impro짯ve짯ments in AI denoi짯sing; NVIDIA RTX being added to appli짯ca짯ti짯ons and giving crea짯tors access to fas짯ter ray tra짯cing and acce짯le짯ra짯ted per짯for짯mance; and start짯ing in 2024, Mer짯ce짯des-Benz inte짯gra짯ting into every vehic짯le in its lin짯e짯up a soft짯ware-defi짯ned archi짯tec짯tu짯re based on NVIDIA tech짯no짯lo짯gy, are for짯ward-loo짯king state짯ments that are sub짯ject to risks and uncer짯tain짯ties that could cau짯se results to be mate짯ri짯al짯ly dif짯fe짯rent than expec짯ta짯ti짯ons. Important fac짯tors that could cau짯se actu짯al results to dif짯fer mate짯ri짯al짯ly include: glo짯bal eco짯no짯mic con짯di짯ti짯ons; our reli짯ance on third par짯ties to manu짯fac짯tu짯re, assem짯ble, packa짯ge and test our pro짯ducts; the impact of tech짯no짯lo짯gi짯cal deve짯lo짯p짯ment and com짯pe짯ti짯ti짯on; deve짯lo짯p짯ment of new pro짯ducts and tech짯no짯lo짯gies or enhance짯ments to our exis짯ting pro짯duct and tech짯no짯lo짯gies; mar짯ket accep짯tance of our pro짯ducts or our part짯ners pro짯ducts; design, manu짯fac짯tu짯ring or soft짯ware defects; chan짯ges in con짯su짯mer pre짯fe짯ren짯ces or demands; chan짯ges in indus짯try stan짯dards and inter짯faces; unex짯pec짯ted loss of per짯for짯mance of our pro짯ducts or tech짯no짯lo짯gies when inte짯gra짯ted into sys짯tems; as well as other fac짯tors detail짯ed from time to time in the most recent reports NVIDIA files with the Secu짯ri짯ties and Exch짯an짯ge Com짯mis짯si짯on, or SEC, inclu짯ding, but not limi짯t짯ed to, its annu짯al report on Form 10멚 and quar짯ter짯ly reports on Form 10멡. Copies of reports filed with the SEC are pos짯ted on the company셲 web짯site and are available from NVIDIA wit짯hout char짯ge. The짯se for짯ward-loo짯king state짯ments are not gua짯ran짯tees of future per짯for짯mance and speak only as of the date hereof, and, except as requi짯red by law, NVIDIA dis짯claims any obli짯ga짯ti짯on to update the짯se for짯ward-loo짯king state짯ments to reflect future events or circumstances.

짤 2020 NVIDIA Cor짯po짯ra짯ti짯on. All rights reser짯ved. NVIDIA, the NVIDIA logo, Qua짯dro, DRIVE AGX Orin, GeForce NOW, Mel짯lan짯ox, NVIDIA A100, NVIDIA AGX, NVIDIA DGX A100, NVIDIA DGX Super짯POD, NVIDIA DRIVE, NVIDIA RAPIDS, NVIDIA RTX and Qua짯dro View are trade짯marks and/or regis짯tered trade짯marks of NVIDIA Cor짯po짯ra짯ti짯on in the U.S. and/or other count짯ries. Other com짯pa짯ny and pro짯duct names may be trade짯marks of the respec짯ti짯ve com짯pa짯nies with which they are asso짯cia짯ted. Fea짯tures, pri짯cing, avai짯la짯bi짯li짯ty, and spe짯ci짯fi짯ca짯ti짯ons are sub짯ject to chan짯ge wit짯hout notice