NVIDIA Announces Financial Results for Third Quarter Fiscal 2022

Wed짯nes짯day, Novem짯ber 17, 2021

  • Record reve짯nue of $7.10 bil짯li짯on, up 50 per짯cent from a year earlier
  • Record Data Cen짯ter reve짯nue of $2.94 bil짯li짯on, up 55 per짯cent from a year earlier
  • Record Gam짯ing reve짯nue of $3.22 bil짯li짯on, up 42 per짯cent from a year earlier

SANTA CLARA, Calif., Nov. 17, 2021 (GLOBE NEWSWIRE) NVIDIA (NASDAQ: NVDA) today repor짯ted record reve짯nue for the third quar짯ter ended Octo짯ber 31, 2021, of $7.10 bil짯li짯on, up 50 per짯cent from a year ear짯lier and up 9 per짯cent from the pre짯vious quar짯ter, with record reve짯nue from the company셲 Gam짯ing, Data Cen짯ter and Pro짯fes짯sio짯nal Visua짯liza짯ti짯on mar짯ket platforms.

GAAP ear짯nings per diluted share for the quar짯ter were $0.97, up 83 per짯cent from a year ago and up 3 per짯cent from the pre짯vious quar짯ter. Non-GAAP ear짯nings per diluted share were $1.17, up 60 per짯cent from a year ago and up 13 per짯cent from the pre짯vious quarter.

The third quar짯ter was out짯stan짯ding, with record reve짯nue, said Jen짯sen Huang, foun짯der and CEO of NVIDIA. 쏡emand for NVIDIA AI is sur짯ging, dri짯ven by hypers짯ca짯le and cloud sca짯le-out, and broa짯de짯ning adop짯ti짯on by more than 25,000 com짯pa짯nies. NVIDIA RTX has reinven짯ted com짯pu짯ter gra짯phics with ray tra짯cing and AI, and is the ide짯al upgrade for the lar짯ge, gro짯wing mar짯ket of gamers and crea짯tors, as well as desi짯gners and pro짯fes짯sio짯nals buil짯ding home workstations.

Our GTC event series show짯ca짯ses the expan짯ding uni짯ver짯se of NVIDIA acce짯le짯ra짯ted com짯pu짯ting. Last week셲 event was our most suc짯cessful yet, high짯light짯ing diver짯se appli짯ca짯ti짯ons, inclu짯ding sup짯p짯ly-chain logi짯stics, cyber짯se짯cu짯ri짯ty, natu짯ral lan짯guage pro짯ces짯sing, quan짯tum com짯pu짯ting rese짯arch, robo짯tics, self-dri짯ving cars, cli짯ma짯te sci짯ence and digi짯tal biology.

Omni짯ver짯se was a major the짯me at GTC. We show짯ed what is pos짯si짯ble when we can jump into vir짯tu짯al worlds. Omni짯ver짯se will be used from col짯la짯bo짯ra짯ti짯ve design, cus짯to짯mer ser짯vice ava짯tars and video con짯fe짯ren짯cing, to digi짯tal twins of fac짯to짯ries, pro짯ces짯sing plants, even enti짯re cities. Omni짯ver짯se brings tog짯e짯ther NVIDIA셲 exper짯ti짯se in AI, simu짯la짯ti짯on, gra짯phics and com짯pu짯ting infra짯struc짯tu짯re. This is the tip of the ice짯berg of what셲 to come, he said.

NVIDIA paid quar짯ter짯ly cash divi짯dends of $100 mil짯li짯on in the third quar짯ter. It will pay its next quar짯ter짯ly cash divi짯dend of $0.04 per share on Decem짯ber 23, 2021, to all share짯hol짯ders of record on Decem짯ber 2, 2021.

Q3 Fis짯cal 2022 Summary

GAAP
($ in mil짯li짯ons, except ear짯nings per share) Q3 FY22 Q2 FY22 Q3 FY21 Q/Q Y/Y
Reve짯nue $7,103 $6,507 $4,726 Up 9% Up 50%
Gross mar짯gin  65.2%  64.8%  62.6% Up 40 bps Up 260 bps
Ope짯ra짯ting expenses $1,960 $1,771 $1,562 Up 11% Up 25%
Ope짯ra짯ting income $2,671 $2,444 $1,398 Up 9% Up 91%
Net inco짯me $2,464 $2,374 $1,336 Up 4% Up 84%
Diluted ear짯nings per share* $0.97 $0.94 $0.53 Up 3% Up 83%

   

Non-GAAP
($ in mil짯li짯ons, except ear짯nings per share) Q3 FY22 Q2 FY22 Q3 FY21 Q/Q Y/Y
Reve짯nue $7,103 $6,507 $4,726 Up 9% Up 50%
Gross mar짯gin  67.0%  66.7%  65.5% Up 30 bps Up 150 bps
Ope짯ra짯ting expenses $1,375 $1,266 $1,101 Up 9% Up 25%
Ope짯ra짯ting income $3,386 $3,071 $1,993 Up 10% Up 70%
Net inco짯me $2,973 $2,623 $1,834 Up 13% Up 62%
Diluted ear짯nings per share* $1.17 $1.04 $0.73 Up 13% Up 60%

*All per share amounts pre짯sen짯ted her짯ein have been retroac짯tively adjus짯ted to reflect the four-for-one stock split which was effec짯ti짯ve July 19, 2021.

NVIDIA셲 out짯look for the fourth quar짯ter of fis짯cal 2022 is as follows:

  • Reve짯nue is expec짯ted to be $7.40 bil짯li짯on, plus or minus 2 percent.
  • GAAP and non-GAAP gross mar짯gins are expec짯ted to be 65.3 per짯cent and 67.0 per짯cent, respec짯tively, plus or minus 50 basis points.
  • GAAP and non-GAAP ope짯ra짯ting expen짯ses are expec짯ted to be appro짯xi짯m짯ate짯ly $2.02 bil짯li짯on and $1.43 bil짯li짯on, respectively.
  • GAAP and non-GAAP other inco짯me and expen짯se are both expec짯ted to be an expen짯se of appro짯xi짯m짯ate짯ly $60 mil짯li짯on, exclu짯ding gains and los짯ses from non-affi짯lia짯ted investments.
  • GAAP and non-GAAP tax rates are both expec짯ted to be 11 per짯cent, plus or minus 1 per짯cent, exclu짯ding any dis짯crete items such as excess tax bene짯fits or defi짯ci짯en짯ci짯es rela짯ted to stock-based compensation.

High짯lights

At last week셲 GTC, NVIDIA announ짯ced the following:

AI Soft짯ware

  • 65 new and updated soft짯ware deve짯lo짯p짯ment kits  brin짯ging impro짯ved fea짯tures and capa짯bi짯li짯ties to data sci짯en짯tists, rese짯ar짯chers and deve짯lo짯pers inclu짯ding NVIDIA Modulus, a frame짯work for deve짯lo짯ping phy짯sics-ML models, NVIDIA ReOpt, an acce짯le짯ra짯ted sol짯ver that opti짯mi짯zes vehic짯le rou짯te plan짯ning and logi짯stics, and NVIDIA cuNu짯me짯ric, which brings acce짯le짯ra짯ted com짯pu짯ting to the lar짯ge and gro짯wing Python Num짯Py ecosystem.
  • Tools for deve짯lo짯ping and deploy짯ing lar짯ge lan짯guage models: NVIDIA NeMo Mega짯tron, for trai짯ning models with tril짯li짯ons of para짯me짯ters; the Mega짯tron 530B cus짯to짯mizable LLM that can be trai짯ned for new domains and lan짯guages; and NVIDIA Tri짯ton Infe짯rence Ser짯ver꽓 with mul짯ti-GPU, mul짯ti짯node dis짯tri짯bu짯ted infe짯rence functionality.
  • New capa짯bi짯li짯ties in the open source NVIDIA Tri짯ton Infe짯rence Ser짯ver soft짯ware, which pro짯vi짯des cross-plat짯form infe짯rence on all AI models and frame짯works, and NVIDIA Ten짯sorRT꽓, which opti짯mi짯zes AI models.
  • Zero-trust cyber짯se짯cu짯ri짯ty plat짯form  com짯pri짯sing NVIDIA Blue짯Field DPUs, NVIDIA DOCA and NVIDIA Mor짯pheus cyber짯se짯cu짯ri짯ty plat짯form allo짯wing the cyber짯se짯cu짯ri짯ty indus짯try to build solu짯ti짯ons that defend cus짯to짯mer data cen짯ters in real time.
  • NVIDIA Riva Cus짯tom Voice, a fea짯ture in NVIDIA Riva AI soft짯ware that makes cus짯tom text-to-speech prac짯ti짯cal for com짯pa짯nies; NVIDIA Riva Enter짯pri짯se will be com짯mer짯ci짯al짯ly available for enter짯pri짯ses ear짯ly next year, with appli짯ca짯bi짯li짯ty to a wide ran짯ge of appli짯ca짯ti짯ons such as vir짯tu짯al assistants and video conferencing.

Omni짯ver짯se

  • NVIDIA Omni짯ver짯se Ava짯tar, a plat짯form for gene짯ra짯ting inter짯ac짯ti짯ve AI ava짯tars, which con짯nects the company셲 tech짯no짯lo짯gies in speech AI, com짯pu짯ter visi짯on, natu짯ral lan짯guage under짯stan짯ding, recom짯men짯da짯ti짯on engi짯nes and simu짯la짯ti짯on technologies. 
  • NVIDIA Omni짯ver짯se Repli짯ca짯tor, a syn짯the짯tic-data-gene짯ra짯ti짯on engi짯ne that pro짯du짯ces phy짯si짯cal짯ly simu짯la짯ted syn짯the짯tic data for trai짯ning deep neu짯ral networks.

Net짯wor짯king

  • NVIDIA Quantum2, a 400Gbps Infi짯ni짯Band end-to-end net짯wor짯king plat짯form, with the extre짯me per짯for짯mance, broad acces짯si짯bi짯li짯ty and strong secu짯ri짯ty nee짯ded by cloud com짯pu짯ting pro짯vi짯ders and super짯com짯pu짯ting centers. 

Automotive/Robotics/Healthcare

  • NVIDIA DRIVE Con짯cier짯ge and DRIVE Chauf짯feur, AI plat짯forms built with NVIDIA DRIVE Orin, which are intel짯li짯gent tech짯no짯lo짯gies that trans짯form the digi짯tal expe짯ri짯ence insi짯de the car with Omni짯ver짯se Ava짯tar, enab짯ling safe auto짯no짯mous dri짯ving on high짯ways and urban streets.
  • NVIDIA DRIVE Hype짯ri짯on 8, a com짯pu짯ter archi짯tec짯tu짯re and sen짯sor set for self-dri짯ving systems.
  • NVIDIA Jet짯son AGX Orin꽓, the world셲 smal짯lest, most powerful and ener짯gy-effi짯ci짯ent AI super짯com짯pu짯ter for robo짯tics, auto짯no짯mous machi짯nes, medi짯cal devices and more.
  • NVIDIA Cla짯ra Hol짯os짯can, an AI com짯pu짯ting plat짯form for medi짯cal-device makers to adopt soft짯ware-as-a-ser짯vice offe짯rings with upgrada짯ble, sca짯lable and end-to-end pro짯ces짯sing of strea짯med data.

Addi짯tio짯nal짯ly, the com짯pa짯ny achie짯ved pro짯gress sin짯ce its pre짯vious ear짯nings announce짯ment in the짯se areas: 

Gam짯ing

Data Cen짯ter

  • Third-quar짯ter reve짯nue was a record $2.94 bil짯li짯on, up 55 per짯cent from a year ear짯lier and up 24 per짯cent from the pre짯vious quarter.
  • Announ짯ced plans to build Earth2, an AI super짯com짯pu짯ter dedi짯ca짯ted to addres짯sing the glo짯bal cli짯ma짯te chan짯ge crisis.
  • Announ짯ced the gene짯ral avai짯la짯bi짯li짯ty of NVIDIA AI Enter짯pri짯se, a com짯pre짯hen짯si짯ve soft짯ware suite of AI tools and frame짯works that enables the hundreds of thou짯sands of com짯pa짯nies run짯ning VMware vSphe짯re to vir짯tua짯li짯ze AI workloads on NVI짯DIA-Cer짯ti짯fied Sys짯tems꽓.
  • Expan짯ded NVIDIA Launch짯Pad, which pro짯vi짯des imme짯dia짯te access to opti짯mi짯zed soft짯ware run짯ning on acce짯le짯ra짯ted infra짯struc짯tu짯re, from North Ame짯ri짯ca to nine glo짯bal locations.
  • Descri짯bed a col짯la짯bo짯ra짯ti짯on invol짯ving NVIDIA Mega짯tron-LM and Micro짯soft Deep짯Speed to crea짯te an effi짯ci짯ent, sca짯lable, 3D par짯al짯lel sys짯tem capa짯ble of com짯bi짯ning data, pipe짯line and ten짯sor-slicing-based parallelism.
  • Announ짯ced fur짯ther col짯la짯bo짯ra짯ti짯on with VMware, sup짯port짯ing tri짯als of VMware vSphe짯re with Tan짯zu on the NVIDIA AI Enter짯pri짯se platform.
  • Shared news that the lar짯gest GPU-based super짯com짯pu짯ter at the U.S. Depart짯ment of Energy셲 Argon짯ne Natio짯nal Labo짯ra짯to짯ry, Pola짯ris, will run on NVIDIA셲 acce짯le짯ra짯ted com짯pu짯ting plat짯form, and be able to achie짯ve almost 1.4 exa짯flops of AI performance.

Pro짯fes짯sio짯nal Visualization

  • Third-quar짯ter reve짯nue was a record $577 mil짯li짯on, up 144 per짯cent from a year ear짯lier and up 11 per짯cent from the pre짯vious quarter.
  • Announ짯ced NVIDIA Omni짯ver짯se Enter짯pri짯se is in gene짯ral avai짯la짯bi짯li짯ty, with the addi짯ti짯on of AR, VR and mul짯ti-GPU ren짯de짯ring, as well as announ짯ced adop짯ti짯on by Bent짯ley Sys짯tems and Esri for digi짯tal-twin applications.

Auto짯mo짯ti짯ve

  • Third-quar짯ter reve짯nue was $135 mil짯li짯on, up 8 per짯cent from a year ear짯lier and down 11 per짯cent from the pre짯vious quarter.
  • Announ짯ced that NVIDIA DRIVE Orin is being used by auto짯no짯mous truck com짯pa짯ny Kodi짯ak Robo짯tics, auto짯ma짯ker Lotus, auto짯no짯mous dri짯ving-solu짯ti짯ons pro짯vi짯der QCraft and EV start짯up WM Motor.

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

Con짯fe짯rence Call and Web짯cast Information
NVIDIA will con짯duct a con짯fe짯rence call with ana짯lysts and inves짯tors to dis짯cuss its third quar짯ter 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. The web짯cast will be recor짯ded and available for replay until NVIDIA셲 con짯fe짯rence call to dis짯cuss its finan짯cial results for its fourth quar짯ter and fis짯cal year 2022.

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 net inco짯me, non-GAAP net inco짯me, or ear짯nings, per diluted share, and free cash flow. 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, IP-rela짯ted cos짯ts, gains and los짯ses from non-affi짯lia짯ted invest짯ments, inte짯rest expen짯se rela짯ted to amor짯tiza짯ti짯on of debt dis짯count, the asso짯cia짯ted tax impact of the짯se items whe짯re appli짯ca짯ble, and dome짯sti짯ca짯ti짯on tax bene짯fit. Free cash flow is cal짯cu짯la짯ted as GAAP net cash pro짯vi짯ded by ope짯ra짯ting acti짯vi짯ties less both purcha짯ses of pro짯per짯ty and equip짯ment and intan짯gi짯ble assets and prin짯ci짯pal pay짯ments on 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.

About NVIDIA
NVIDIA셲 (NASDAQ: NVDA) inven짯ti짯on of the GPU in 1999 spark짯ed the growth of the PC gam짯ing mar짯ket and has rede짯fi짯ned modern com짯pu짯ter gra짯phics, high per짯for짯mance com짯pu짯ting and arti짯fi짯ci짯al intel짯li짯gence. The company셲 pio짯nee짯ring work in acce짯le짯ra짯ted com짯pu짯ting and AI is res짯ha짯ping tril짯li짯on-dol짯lar indus짯tries, such as trans짯por짯ta짯ti짯on, health짯ca짯re and manu짯fac짯tu짯ring, and fue짯ling the growth of many others. More infor짯ma짯ti짯on at https://nvidianews.nvidia.com/.

For fur짯ther infor짯ma짯ti짯on, contact:

Simo짯na Jankowski Robert Sher짯bin
Inves짯tor Relations Cor짯po짯ra짯te Communications
NVIDIA Cor짯po짯ra짯ti짯on NVIDIA Cor짯po짯ra짯ti짯on
sjankowski@nvidia.com rsherbin@nvidia.com

Cer짯tain state짯ments in this press release inclu짯ding, but not limi짯t짯ed to, state짯ments as to: demand for AI sur짯ging and its broa짯de짯ning adop짯ti짯on; the gro짯wing mar짯ket of gamers and crea짯tors, as well as desi짯gners and pro짯fes짯sio짯nals buil짯ding home work짯sta짯tions; the expan짯ding uni짯ver짯se of NVIDIA acce짯le짯ra짯ted com짯pu짯ting; the uses of Omni짯ver짯se and it brin짯ging tog짯e짯ther NVIDIA셲 exper짯ti짯se in AI, simu짯la짯ti짯on, gra짯phics, and com짯pu짯ting infra짯struc짯tu짯re; the bene짯fits, per짯for짯mance and abili짯ties of our pro짯ducts and tech짯no짯lo짯gies, inclu짯ding NVIDIA Modulus, NVIDIA ReOpt, NVIDIA cuNu짯me짯ric, NVIDIA NeMo Mega짯tron, NVIDIA Tri짯ton Infe짯rence Ser짯ver, NVIDIA Ten짯sorRT, NVIDIA셲 zero-trust cyber짯se짯cu짯ri짯ty plat짯form, NVIDIA Riva, NVIDIA Riva Enter짯pri짯se, NVIDIA Omni짯ver짯se Ava짯tar, NVIDIA Omni짯ver짯se Repli짯ca짯tor, NVIDIA Quantum2, NVIDIA DRIVE Con짯cier짯ge and DRIVE Chauf짯feur, NVIDIA DRIVE Hype짯ri짯on 8, NVIDIA Jet짯son AGX Orin, Cla짯ra Hol짯os짯can, NVIDIA AI Enter짯pri짯se, NVIDIA Launch짯Pad, the col짯la짯bo짯ra짯ti짯on bet짯ween NVIDIA Mega짯tron-LM and Micro짯soft Deep짯Speed, the col짯la짯bo짯ra짯ti짯on with VMware, and NVIDIA Omni짯ver짯se Enter짯pri짯se; plans to run Pola짯ris on NVIDIA셲 acce짯le짯ra짯ted com짯pu짯ting plat짯form; NVIDIA셲 next quar짯ter짯ly cash divi짯dend; NVIDIA셲 finan짯cial out짯look for the fourth quar짯ter of fis짯cal 2022; and NVIDIA셲 expec짯ted tax rates for the fourth quar짯ter of fis짯cal 2022 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 2021 NVIDIA Cor짯po짯ra짯ti짯on. All rights reser짯ved. NVIDIA, the NVIDIA logo, GeForce, Blue짯Field, GeForce NOW, GeForce RTX, NVIDIA Cla짯ra, NVIDIA DOCA, NVIDIA DRIVE, NVIDIA Jet짯son AGX Orin, NVIDIA Omni짯ver짯se, NVIDIA ReOpt, NVIDIA RTX, NVIDIA Tri짯ton Inter짯face Ser짯ver, NVI짯DIA-Cer짯ti짯fied Sys짯tems, GeForce NOW, GeForce RTX and Ten짯sorRT 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.

 

NVIDIA CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In mil짯li짯ons, except per share data)
(Unau짯di짯ted)
                   
                   
      Three Months Ended   Nine Months Ended
      Octo짯ber 31,   Octo짯ber 25,   Octo짯ber 31,   Octo짯ber 25,
        2021       2020       2021       2020  
                   
Reve짯nue $ 7,103     $ 4,726     $ 19,271     $ 11,672  
Cost of revenue   2,472       1,766       6,795       4,432  
Gross pro짯fit   4,631       2,960       12,476       7,240  
Ope짯ra짯ting expenses              
  Rese짯arch and development   1,403       1,047       3,802       2,778  
  Sales, gene짯ral and administrative   557       515       1,603       1,437  
    Total ope짯ra짯ting expenses   1,960       1,562       5,405       4,215  
Inco짯me from operations   2,671       1,398       7,071       3,025  
  Inte짯rest income   7       7       20       50  
  Inte짯rest expense   (62 )     (53 )     (175 )     (131 )
  Other, net   22       (4 )     160       (5 )
    Other inco짯me (expen짯se), net   (33 )     (50 )     5       (86 )
Inco짯me befo짯re inco짯me tax   2,638       1,348       7,076       2,939  
Inco짯me tax expense   174       12       327       64  
Net inco짯me $ 2,464     $ 1,336     $ 6,749     $ 2,875  
                   
Net inco짯me per share (A):              
  Basic $ 0.99     $ 0.54     $ 2.71     $ 1.17  
  Diluted $ 0.97     $ 0.53     $ 2.67     $ 1.15  
                   
Weigh짯ted avera짯ge shares used in per share com짯pu짯ta짯ti짯on (A):            
  Basic   2,499       2,472       2,493       2,464  
  Diluted   2,538       2,520       2,532       2,504  
                   
(A) Reflects a four-for-one stock split on July 19, 2021.
NVIDIA CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In mil짯li짯ons)  
(Unau짯di짯ted)  
               
               
        Octo짯ber 31,   Janu짯ary 31,  
         2021    2021  
ASSETS          
               
Cur짯rent assets:          
  Cash, cash equi짯va짯lents and mar짯ke짯ta짯ble securities   $ 19,298   $ 11,561  
  Accounts receiva짯ble, net     3,954     2,429  
  Invent짯ories     2,233     1,826  
  Pre짯paid expen짯ses and other cur짯rent assets     321     239  
    Total cur짯rent assets     25,806     16,055  
               
Pro짯per짯ty and equip짯ment, net     2,509     2,149  
Ope짯ra짯ting lea짯se assets     830     707  
Good짯will     4,302     4,193  
Intan짯gi짯ble assets, net     2,454     2,737  
Defer짯red inco짯me tax assets     970     806  
Other assets     3,761     2,144  
    Total assets   $ 40,632   $ 28,791  
               
LIABILITIES AND SHAREHOLDERS EQUITY  
               
Cur짯rent liabilities:          
  Accounts paya짯ble   $ 1,664   $ 1,201  
  Accrued and other cur짯rent liabilities     1,948     1,725  
  Short-term debt     -     999  
    Total cur짯rent liabilities     3,612     3,925  
               
Long-term debt     10,944     5,964  
Long-term ope짯ra짯ting lea짯se liabilities     743     634  
Other long-term liabilities     1,535     1,375  
    Total lia짯bi짯li짯ties     16,834     11,898  
               
Share짯hol짯ders equity     23,798     16,893  
    Total lia짯bi짯li짯ties and share짯hol짯ders equity   $ 40,632   $ 28,791  
               
NVIDIA CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(In mil짯li짯ons)  
(Unau짯di짯ted)  
                     
                     
      Three Months Ended   Nine Months Ended  
      Octo짯ber 31,   Octo짯ber 25,   Octo짯ber 31,   Octo짯ber 25,  
        2021       2020       2021       2020    
                     
Cash flows from ope짯ra짯ting activities:                
Net inco짯me $ 2,464     $ 1,336     $ 6,749     $ 2,875    
Adjus짯t짯ments to recon짯ci짯le net inco짯me to net cash                
pro짯vi짯ded by ope짯ra짯ting activities:                
  Stock-based com짯pen짯sa짯ti짯on expense   559       383       1,453       981    
  Depre짯cia짯ti짯on and amortization   298       299       865       810    
  Defer짯red inco짯me taxes   (21 )     (53 )     (182 )     (117 )  
  (Gains) los짯ses on invest짯ments in non affi짯lia짯tes, net   (20 )     -       (152 )     -    
  Other   10       2       25       (2 )  
Chan짯ges in ope짯ra짯ting assets and lia짯bi짯li짯ties, net of acquisitions:                
  Accounts receiva짯ble   (366 )     (463 )     (1,523 )     (667 )  
  Invent짯ories   (118 )     (93 )     (400 )     (190 )  
  Pre짯paid expen짯ses and other assets   (1,575 )     (443 )     (1,557 )     (409 )  
  Accounts paya짯ble   195       225       474       289    
  Accrued and other cur짯rent liabilities   (62 )     31       70       111    
  Other long-term liabilities   155       55       253       74    
Net cash pro짯vi짯ded by ope짯ra짯ting activities   1,519       1,279       6,075       3,755    
Cash flows from inves짯t짯ing activities:                
  Pro짯ceeds from matu짯ri짯ties of mar짯ke짯ta짯ble securities   2,545       4,133       7,780       5,165    
  Pro짯ceeds from sales of mar짯ke짯ta짯ble securities   211       243       916       502    
  Purcha짯ses of mar짯ke짯ta짯ble securities   (6,752 )     (4,554 )     (16,020 )     (12,840 )  
  Purcha짯ses rela짯ted to pro짯per짯ty and equip짯ment and intan짯gi짯ble assets     (221 )     (473 )     (703 )     (845 )  
  Acqui짯si짯ti짯ons, net of cash acquired   (203 )     (1,353 )     (203 )     (8,524 )  
  Invest짯ments and other, net   (18 )     3       (14 )     (4 )  
Net cash used in inves짯t짯ing activities   (4,438 )     (2,001 )     (8,244 )     (16,546 )  
Cash flows from finan짯cing activities:                
  Issu짯an짯ce of debt, net of issu짯an짯ce costs   (8 )     -       4,977       4,971    
  Pro짯ceeds rela짯ted to employee stock plans   149       96       277       190    
  Repay짯ment of debt   (1,000 )     -       (1,000 )     -    
  Pay짯ments rela짯ted to tax on rest짯ric짯ted stock units   (440 )     (298 )     (1,282 )     (716 )  
  Divi짯dends paid   (100 )     (99 )     (298 )     (296 )  
  Prin짯ci짯pal pay짯ments on pro짯per짯ty and equipment   (22 )     -       (62 )     -    
  Other   -       -       (2 )     (3 )  
Net cash pro짯vi짯ded by (used in) finan짯cing activities   (1,421 )     (301 )     2,610       4,146    
Chan짯ge in cash and cash equivalents   (4,340 )     (1,023 )     441       (8,645 )  
Cash and cash equi짯va짯lents at begin짯ning of period   5,628       3,274       847       10,896    
Cash and cash equi짯va짯lents at end of period $ 1,288     $ 2,251     $ 1,288     $ 2,251    
                     
  NVIDIA CORPORATION
  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
  (In mil짯li짯ons, except per share data)
  (Unau짯di짯ted)
                     
        Three Months Ended   Nine Months Ended
        Octo짯ber 31,   August 1,   Octo짯ber 25,   Octo짯ber 31, Octo짯ber 25,
          2021       2021       2020       2021       2020  
                         
  GAAP gross profit $ 4,631     $ 4,215     $ 2,960     $ 12,476     $ 7,240  
    GAAP gross margin   65.2 %     64.8 %     62.6 %     64.7 %     62.0 %
  Acqui짯si짯ti짯on-rela짯ted and other cos짯ts (A)   86       86       86       258       331  
  Stock-based com짯pen짯sa짯ti짯on expen짯se (B)   44       32       28       102       62  
  IP-rela짯ted costs     -       4       21       8       38  
  Non-GAAP gross profit $ 4,761     $ 4,337     $ 3,095     $ 12,844     $ 7,671  
    Non-GAAP gross margin   67.0 %     66.7 %     65.5 %     66.6 %     65.7 %
                         
  GAAP ope짯ra짯ting expenses $ 1,960     $ 1,771     $ 1,562     $ 5,405     $ 4,215  
  Stock-based com짯pen짯sa짯ti짯on expen짯se (B)   (515 )     (433 )     (355 )     (1,351 )     (919 )
  Acqui짯si짯ti짯on-rela짯ted and other cos짯ts (A)   (70 )     (72 )     (106 )     (224 )     (338 )
  Non-GAAP ope짯ra짯ting expenses $ 1,375     $ 1,266     $ 1,101     $ 3,830     $ 2,958  
                         
  GAAP inco짯me from operations $ 2,671     $ 2,444     $ 1,398     $ 7,071     $ 3,025  
  Total impact of non-GAAP adjus짯t짯ments to inco짯me from operations   715       627       595       1,943       1,689  
  Non-GAAP inco짯me from operations $ 3,386     $ 3,071     $ 1,993     $ 9,014     $ 4,714  
                         
  GAAP other inco짯me (expen짯se), net $ (33 )   $ (50 )   $ (50 )   $ 5     $ (86 )
  (Gains) los짯ses from non-affi짯lia짯ted investments   (20 )     -       4       (153 )     9  
  Inte짯rest expen짯se rela짯ted to amor짯tiza짯ti짯on of debt discount   1       1       1       3       1  
  Non-GAAP other inco짯me (expen짯se), net $ (52 )   $ (49 )   $ (45 )   $ (145 )   $ (76 )
                         
  GAAP net income   $ 2,464     $ 2,374     $ 1,336     $ 6,749     $ 2,875  
  Total pre-tax impact of non-GAAP adjustments   696       628       600       1,793       1,699  
  Inco짯me tax impact of non-GAAP adjustments 짤   (187 )     (127 )     (102 )     (381 )     (255 )
  Dome짯sti짯ca짯ti짯on tax benefit   -       (252 )     -       (252 )     -  
  Non-GAAP net income $ 2,973     $ 2,623     $ 1,834     $ 7,909     $ 4,319  
                         
  Diluted net inco짯me per share (D)                  
  GAAP   $ 0.97     $ 0.94     $ 0.53     $ 2.67     $ 1.15  
  Non-GAAP   $ 1.17     $ 1.04     $ 0.73     $ 3.12     $ 1.72  
                         
  Weigh짯ted avera짯ge shares used in diluted net inco짯me per share com짯pu짯ta짯ti짯on (D)     2,538       2,532       2,520       2,532       2,504  
                         
  GAAP net cash pro짯vi짯ded by ope짯ra짯ting activities $ 1,519     $ 2,682     $ 1,279     $ 6,075     $ 3,755  
  Purcha짯ses rela짯ted to pro짯per짯ty and equip짯ment and intan짯gi짯ble assets   (221 )     (183 )     (473 )     (703 )     (845 )
  Prin짯ci짯pal pay짯ments on pro짯per짯ty and equipment   (22 )     (21 )     -       (62 )     -  
  Free cash flow   $ 1,276     $ 2,478     $ 806     $ 5,310     $ 2,910  
                         
   
                         
  (A) Acqui짯si짯ti짯on-rela짯ted and other cos짯ts pri짯ma짯ri짯ly include amor짯tiza짯ti짯on of intan짯gi짯ble assets, inven짯to짯ry step-up, tran짯sac짯tion cos짯ts, and cer짯tain com짯pen짯sa짯ti짯on char짯ges pre짯sen짯ted as follows:
        Three Months Ended   Nine Months Ended
        Octo짯ber 31,   August 1,   Octo짯ber 25,   Octo짯ber 31, Octo짯ber 25,
          2021       2021       2020       2021       2020  
  Cost of revenue $ 86     $ 86     $ 86     $ 258     $ 331  
  Rese짯arch and development $ 7     $ 1     $ 2     $ 10     $ 7  
  Sales, gene짯ral and administrative $ 63     $ 71     $ 104     $ 214     $ 331  
                         
  (B) Stock-based com짯pen짯sa짯ti짯on con짯sists of the following:      
        Three Months Ended   Nine Months Ended
        Octo짯ber 31,   August 1,   Octo짯ber 25,   Octo짯ber 31, Octo짯ber 25,
          2021       2021       2020       2021       2020  
  Cost of revenue $ 44     $ 32     $ 28     $ 102     $ 62  
  Rese짯arch and development $ 363     $ 297     $ 232     $ 935     $ 594  
  Sales, gene짯ral and administrative $ 152     $ 136     $ 123     $ 416     $ 325  
                         
  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).
                         
  (D) Reflects a four-for-one stock split on July 19, 2021.
NVIDIA CORPORATION  
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK  
       
   
    Q4 FY2022
Outlook
 
    ($ in millions)  
       
GAAP gross margin   65.3 %  
  Impact of stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted cos짯ts, and other costs   1.7 %  
Non-GAAP gross margin   67.0 %  
       
GAAP ope짯ra짯ting expenses $ 2,015    
  Stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted cos짯ts, and other costs   (585 )  
Non-GAAP ope짯ra짯ting expenses $ 1,430