NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2022

  • Record fis짯cal-year reve짯nue of $26.91 bil짯li짯on, up 61 percent
  • Record quar짯ter짯ly and fis짯cal-year reve짯nue for Gam짯ing, Data Cen짯ter and Pro짯fes짯sio짯nal Visualization

SANTA CLARA, Calif., Feb. 16, 2022 (GLOBE NEWSWIRE) NVIDIA (NASDAQ: NVDA) today repor짯ted record reve짯nue for the fourth quar짯ter ended Janu짯ary 30, 2022, of $7.64 bil짯li짯on, up 53 per짯cent from a year ago and up 8 per짯cent from the pre짯vious quar짯ter. Gam짯ing, Data Cen짯ter and Pro짯fes짯sio짯nal Visua짯liza짯ti짯on mar짯ket plat짯forms each achie짯ved record reve짯nue for the quar짯ter and year.

GAAP ear짯nings per diluted share for the quar짯ter were a record $1.18, up 103 per짯cent from a year ago and up 22 per짯cent from the pre짯vious quar짯ter. Non-GAAP ear짯nings per diluted share were $1.32, up 69 per짯cent from a year ago and up 13 per짯cent from the pre짯vious quarter.

For fis짯cal 2022, reve짯nue was a record $26.91 bil짯li짯on, up 61 per짯cent from $16.68 bil짯li짯on a year ago. GAAP ear짯nings per diluted share were a record $3.85, up 123 per짯cent from $1.73 a year ago. Non-GAAP ear짯nings per diluted share were $4.44, up 78 per짯cent from $2.50 a year ago.

We are see짯ing excep짯tio짯nal demand for NVIDIA com짯pu짯ting plat짯forms, said Jen짯sen Huang, foun짯der and CEO of NVIDIA. NVIDIA is pro짯pel짯ling advan짯ces in AI, digi짯tal bio짯lo짯gy, cli짯ma짯te sci짯en짯ces, gam짯ing, crea짯ti짯ve design, auto짯no짯mous vehic짯les and robo짯tics some of today셲 most impactful fields.

We are ente짯ring the new year with strong momen짯tum across our busi짯nesses and excel짯lent trac짯tion with our new soft짯ware busi짯ness models with NVIDIA AI, NVIDIA Omni짯ver짯se and NVIDIA DRIVE. GTC is coming. We will announ짯ce many new pro짯ducts, appli짯ca짯ti짯ons and part짯ners for NVIDIA com짯pu짯ting, he said.

NVIDIA paid quar짯ter짯ly cash divi짯dends of $100 mil짯li짯on in the fourth quar짯ter and $399 mil짯li짯on in fis짯cal 2022. It will pay its next quar짯ter짯ly cash divi짯dend of $0.04 per share on March 24, 2022, to all share짯hol짯ders of record on March 3, 2022.

Q4 Fis짯cal 2022 Summary

GAAP
($ in mil짯li짯ons, except ear짯nings per share) Q4 FY22 Q3 FY22 Q4 FY21 Q/Q Y/Y
Reve짯nue $7,643   $7,103   $5,003   Up 8% Up 53%
Gross mar짯gin   65.4 %   65.2 %   63.1 % Up 20 bps Up 230 bps
Ope짯ra짯ting expenses $2,029   $1,960   $1,650   Up 4% Up 23%
Ope짯ra짯ting income $2,970   $2,671   $1,507   Up 11% Up 97%
Net inco짯me $3,003   $2,464   $1,457   Up 22% Up 106%
Diluted ear짯nings per share* $1.18   $0.97   $0.58   Up 22% Up 103%

   

Non-GAAP
($ in mil짯li짯ons, except ear짯nings per share) Q4 FY22 Q3 FY22 Q4 FY21 Q/Q Y/Y
Reve짯nue $7,643   $7,103   $5,003   Up 8% Up 53%
Gross mar짯gin   67.0 %   67.0 %   65.5 % Up 150 bps
Ope짯ra짯ting expenses $1,447   $1,375   $1,187   Up 5% Up 22%
Ope짯ra짯ting income $3,677   $3,386   $2,089   Up 9% Up 76%
Net inco짯me $3,350   $2,973   $1,957   Up 13% Up 71%
Diluted ear짯nings per share* $1.32   $1.17   $0.78   Up 13% Up 69%

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

Fis짯cal 2022 Summary

GAAP
($ in mil짯li짯ons, except ear짯nings per share) FY22 FY21 Y/Y
Reve짯nue $26,914   $16,675   Up 61%
Gross mar짯gin   64.9 %   62.3 % Up 260 bps
Ope짯ra짯ting expenses $7,434   $5,864   Up 27%
Ope짯ra짯ting income $10,041   $4,532   Up 122%
Net inco짯me $9,752   $4,332   Up 125%
Diluted ear짯nings per share* $3.85   $1.73   Up 123%

 

Non-GAAP
($ in mil짯li짯ons, except ear짯nings per share) FY22 FY21 Y/Y
Reve짯nue $26,914   $16,675   Up 61%
Gross mar짯gin   66.8 %   65.6 % Up 120 bps
Ope짯ra짯ting expenses $5,279   $4,144   Up 27%
Ope짯ra짯ting income $12,690   $6,803   Up 87%
Net inco짯me $11,259   $6,277   Up 79%
Diluted ear짯nings per share* $4.44   $2.50   Up 78%

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

Ter짯mi짯na짯ti짯on of the Arm Share Purcha짯se Agreement

On Febru짯ary 8, 2022, NVIDIA and Soft짯Bank Group Corp. (Soft짯Bank) announ짯ced the ter짯mi짯na짯ti짯on of the Share Purcha짯se Agree짯ment wher짯eby NVIDIA would have acqui짯red Arm Limi짯t짯ed from Soft짯Bank. The par짯ties agreed to ter짯mi짯na짯te becau짯se of signi짯fi짯cant regu짯la짯to짯ry chal짯lenges pre짯ven짯ting the con짯sum짯ma짯ti짯on of the tran짯sac짯tion. NVIDIA intends to record in ope짯ra짯ting expen짯ses a $1.36 bil짯li짯on char짯ge (the Arm Wri짯te-off) in the first quar짯ter of fis짯cal 2023 reflec짯ting the wri짯te-off of the pre짯pay짯ment pro짯vi짯ded at sig짯ning in Sep짯tem짯ber 2020. 

Out짯look

NVIDIA셲 out짯look for the first quar짯ter of fis짯cal 2023 is as follows:

  • Reve짯nue is expec짯ted to be $8.10 bil짯li짯on, plus or minus 2 percent.
  • GAAP and non-GAAP gross mar짯gins are expec짯ted to be 65.2 per짯cent and 67.0 per짯cent, respec짯tively, plus or minus 50 basis points.
  • GAAP ope짯ra짯ting expen짯ses are expec짯ted to be $3.55 bil짯li짯on, inclu짯ding the Arm Wri짯te-off of $1.36 bil짯li짯on. Non-GAAP ope짯ra짯ting expen짯ses are expec짯ted to be $1.60 billion.
  • GAAP and non-GAAP other inco짯me and expen짯se are both expec짯ted to be an expen짯se of appro짯xi짯m짯ate짯ly $55 mil짯li짯on, exclu짯ding gains and los짯ses from non-affi짯lia짯ted investments.
  • GAAP and non-GAAP tax rates are expec짯ted to be 11 per짯cent and 13 per짯cent, respec짯tively, plus or minus 1 per짯cent, exclu짯ding any dis짯crete items.

High짯lights

NVIDIA achie짯ved pro짯gress sin짯ce its pre짯vious ear짯nings announce짯ment in the짯se areas: 

Gam짯ing

  • Fourth-quar짯ter reve짯nue was a record $3.42 bil짯li짯on, up 37 per짯cent from a year ago and up 6 per짯cent from the pre짯vious quar짯ter. Fis짯cal-year reve짯nue rose 61 per짯cent to a record $12.46 billion.
  • Laun짯ched the GeForce RTX 3050 desk짯top GPU, brin짯ging RTX and the per짯for짯mance and effi짯ci짯en짯cy of NVIDIA Ampere archi짯tec짯tu짯re to more gamers, start짯ing at $249 MSRP.
  • Laun짯ched GeForce RTX 3080 Ti and RTX 3070 Ti lap짯top GPUs, deli짯ve짯ring new levels of per짯for짯mance to lap짯tops for gamers and creators.
  • Announ짯ced over 160 gam짯ing and Stu짯dio GeForce-based lap짯top designs by lea짯ding manufacturers.
  • Announ짯ced over 30 new RTX games and titles ship짯ped in the quar짯ter inclu짯ding COD: Van짯guard, Hori짯zon Zero Dawn, God of War, Ica짯rus and Rain짯bow Six Extraction.
  • Inte짯gra짯ted NVIDIA Reflex tech짯no짯lo짯gy for low-laten짯cy gam짯ing in more AAA games inclu짯ding Call of Duty: Van짯guard, God of War and Rain짯bow Six Extraction.
  • Added over 65 games to the GeForce NOW libra짯ry, brin짯ging the total to over 1,200, and announ짯ced col짯la짯bo짯ra짯ti짯ons with AT&T and Sam짯sung to offer GeForce Now to their customers.
     

Data Cen짯ter

Pro짯fes짯sio짯nal Visualization

Auto짯mo짯ti짯ve and Robotics

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 fourth quar짯ter and fis짯cal 2022 finan짯cial results and cur짯rent finan짯cial pro짯s짯pects today at 2:30 p.m. Paci짯fic time (5:30 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 first quar짯ter of fis짯cal 2023.

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, dome짯sti짯ca짯ti짯on tax bene짯fit, and for짯eign 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.

NVIDIA CORPORATION  
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME  
(In mil짯li짯ons, except per share data)  
(Unau짯di짯ted)  
                     
                     
      Three Months Ended   Twel짯ve Months Ended  
      Janu짯ary 30,   Janu짯ary 31,   Janu짯ary 30,   Janu짯ary 31,  
        2022       2021       2022       2021    
                     
Reve짯nue $ 7,643     $ 5,003     $ 26,914     $ 16,675    
Cost of revenue   2,644       1,846       9,439       6,279    
Gross pro짯fit   4,999       3,157       17,475       10,396    
Ope짯ra짯ting expenses                
  Rese짯arch and development   1,466       1,147       5,268       3,924    
  Sales, gene짯ral and administrative   563       503       2,166       1,940    
    Total ope짯ra짯ting expenses   2,029       1,650       7,434       5,864    
Inco짯me from operations   2,970       1,507       10,041       4,532    
  Inte짯rest income   9       6       29       57    
  Inte짯rest expense   (61 )     (53 )     (236 )     (184 )  
  Other, net   (53 )     10       107       4    
    Other inco짯me (expen짯se), net   (105 )     (37 )     (100 )     (123 )  
Inco짯me befo짯re inco짯me tax   2,865       1,470       9,941       4,409    
Inco짯me tax expen짯se (bene짯fit)   (138 )     13       189       77    
Net inco짯me $ 3,003     $ 1,457     $ 9,752     $ 4,332    
                     
Net inco짯me per share (A):                
  Basic $ 1.20     $ 0.59     $ 3.91     $ 1.76    
  Diluted $ 1.18     $ 0.58     $ 3.85     $ 1.73    
                     
Weigh짯ted avera짯ge shares used in per share com짯pu짯ta짯ti짯on (A):              
  Basic   2,504       2,478       2,496       2,467    
  Diluted   2,545       2,524       2,535       2,510    
                     
(A) Reflects a four-for-one stock split on July 19, 2021.  
                     

 

NVIDIA CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In mil짯li짯ons)  
(Unau짯di짯ted)  
               
               
        Janu짯ary 30,   Janu짯ary 31,  
          2022     2021  
ASSETS          
               
Cur짯rent assets:          
  Cash, cash equi짯va짯lents and mar짯ke짯ta짯ble securities   $ 21,208   $ 11,561  
  Accounts receiva짯ble, net     4,650     2,429  
  Invent짯ories     2,605     1,826  
  Pre짯paid expen짯ses and other cur짯rent assets     366     239  
    Total cur짯rent assets     28,829     16,055  
               
Pro짯per짯ty and equip짯ment, net     2,778     2,149  
Ope짯ra짯ting lea짯se assets     829     707  
Good짯will     4,349     4,193  
Intan짯gi짯ble assets, net     2,339     2,737  
Defer짯red inco짯me tax assets     1,222     806  
Other assets     3,841     2,144  
    Total assets   $ 44,187   $ 28,791  
               
LIABILITIES AND SHAREHOLDERS EQUITY  
               
Cur짯rent liabilities:          
  Accounts paya짯ble   $ 1,783   $ 1,149  
  Accrued and other cur짯rent liabilities     2,552     1,777  
  Short-term debt     -     999  
    Total cur짯rent liabilities     4,335     3,925  
               
Long-term debt     10,946     5,964  
Long-term ope짯ra짯ting lea짯se liabilities     741     634  
Other long-term liabilities     1,553     1,375  
    Total lia짯bi짯li짯ties     17,575     11,898  
               
Share짯hol짯ders equity     26,612     16,893  
    Total lia짯bi짯li짯ties and share짯hol짯ders equity   $ 44,187   $ 28,791  
               

 

NVIDIA CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(In mil짯li짯ons)  
(Unau짯di짯ted)  
                     
                     
      Three Months Ended   Twel짯ve Months Ended  
      Janu짯ary 30,   Janu짯ary 31,   Janu짯ary 30,   Janu짯ary 31,  
        2022       2021       2022       2021    
                     
Cash flows from ope짯ra짯ting activities:                
Net inco짯me $ 3,003     $ 1,457     $ 9,752     $ 4,332    
Adjus짯t짯ments to recon짯ci짯le net inco짯me to net cash                
pro짯vi짯ded by ope짯ra짯ting activities:                
  Stock-based com짯pen짯sa짯ti짯on expense   551       417       2,004       1,397    
  Depre짯cia짯ti짯on and amortization   309       287       1,174       1,098    
  Defer짯red inco짯me taxes   (225 )     (164 )     (406 )     (282 )  
  (Gains) los짯ses on invest짯ments in non affi짯lia짯tes, net   53       (9 )     (100 )     -    
  Other   21       (8 )     47       (20 )  
Chan짯ges in ope짯ra짯ting assets and lia짯bi짯li짯ties, net of acquisitions:                
  Accounts receiva짯ble   (692 )     117       (2,215 )     (550 )  
  Invent짯ories   (374 )     (334 )     (774 )     (524 )  
  Pre짯paid expen짯ses and other assets   (158 )     15       (1,715 )     (394 )  
  Accounts paya짯ble   183       23       568       312    
  Accrued and other cur짯rent liabilities   423       178       581       290    
  Other long-term liabilities   (61 )     88       192       163    
Net cash pro짯vi짯ded by ope짯ra짯ting activities   3,033       2,067       9,108       5,822    
Cash flows from inves짯t짯ing activities:                
  Pro짯ceeds from matu짯ri짯ties of mar짯ke짯ta짯ble securities   7,417       3,627       15,197       8,792    
  Pro짯ceeds from sales of mar짯ke짯ta짯ble securities   107       25       1,023       527    
  Purcha짯ses of mar짯ke짯ta짯ble securities   (8,767 )     (6,468 )     (24,787 )     (19,308 )  
  Purcha짯ses rela짯ted to pro짯per짯ty and equip짯ment and intan짯gi짯ble assets     (273 )     (283 )     (976 )     (1,128 )  
  Acqui짯si짯ti짯ons, net of cash acquired   (60 )     -       (263 )     (8,524 )  
  Invest짯ments and other, net   (11 )     (30 )     (24 )     (34 )  
Net cash used in inves짯t짯ing activities   (1,587 )     (3,129 )     (9,830 )     (19,675 )  
Cash flows from finan짯cing activities:                
  Pro짯ceeds rela짯ted to employee stock plans   4       4       281       194    
  Pay짯ments rela짯ted to tax on rest짯ric짯ted stock units   (622 )     (225 )     (1,904 )     (942 )  
  Divi짯dends paid   (100 )     (99 )     (399 )     (395 )  
  Prin짯ci짯pal pay짯ments on pro짯per짯ty and equipment   (21 )     (17 )     (83 )     (17 )  
  Other   (5 )     (2 )     (7 )     (4 )  
  Issu짯an짯ce of debt, net of issu짯an짯ce costs   -       (3 )     4,977       4,968    
  Repay짯ment of debt   -       -       (1,000 )     -    
Net cash pro짯vi짯ded by (used in) finan짯cing activities   (744 )     (342 )     1,865       3,804    
Chan짯ge in cash and cash equivalents   702       (1,404 )     1,143       (10,049 )  
Cash and cash equi짯va짯lents at begin짯ning of period   1,288       2,251       847       10,896    
Cash and cash equi짯va짯lents at end of period $ 1,990     $ 847     $ 1,990     $ 847    
                     

 

  NVIDIA CORPORATION  
  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  
  (In mil짯li짯ons, except per share data)  
  (Unau짯di짯ted)  
                         
          Three Months Ended   Twel짯ve Months Ended  
          Janu짯ary 30,   Octo짯ber 31,   Janu짯ary 31,   Janu짯ary 30,   Janu짯ary 31,  
            2022       2021       2021       2022       2021    
                             
  GAAP gross profit   $ 4,999     $ 4,631     $ 3,157     $ 17,475     $ 10,396    
  GAAP gross margin     65.4 %     65.2 %     63.1 %     64.9 %     62.3 %  
  Acqui짯si짯ti짯on-rela짯ted and other cos짯ts (A)     86       86       92       344       425    
  Stock-based com짯pen짯sa짯ti짯on expen짯se (B)     39       44       26       141       88    
  IP-rela짯ted costs       -       -       1       9       38    
  Non-GAAP gross profit   $ 5,124     $ 4,761     $ 3,276     $ 17,969     $ 10,947    
  Non-GAAP gross margin     67.0 %     67.0 %     65.5 %     66.8 %     65.6 %  
                             
  GAAP ope짯ra짯ting expenses   $ 2,029     $ 1,960     $ 1,650     $ 7,434     $ 5,864    
  Stock-based com짯pen짯sa짯ti짯on expen짯se (B)     (512 )     (515 )     (391 )     (1,863 )     (1,309 )  
  Acqui짯si짯ti짯on-rela짯ted and other cos짯ts (A)     (70 )     (70 )     (72 )     (292 )     (411 )  
  Non-GAAP ope짯ra짯ting expenses   $ 1,447     $ 1,375     $ 1,187     $ 5,279     $ 4,144    
                             
  GAAP inco짯me from operations   $ 2,970     $ 2,671     $ 1,507     $ 10,041     $ 4,532    
  Total impact of non-GAAP adjus짯t짯ments to inco짯me from operations     707       715       582       2,649       2,271    
  Non-GAAP inco짯me from operations   $ 3,677     $ 3,386     $ 2,089     $ 12,690     $ 6,803    
                             
  GAAP other inco짯me (expen짯se), net   $ (105 )   $ (33 )   $ (37 )   $ (100 )   $ (123 )  
  (Gains) los짯ses from non-affi짯lia짯ted investments     53       (20 )     (9 )     (99 )     -    
  Inte짯rest expen짯se rela짯ted to amor짯tiza짯ti짯on of debt discount     -       1       1       3       3    
  Non-GAAP other inco짯me (expen짯se), net   $ (52 )   $ (52 )   $ (45 )   $ (196 )   $ (120 )  
                             
  GAAP net income     $ 3,003     $ 2,464     $ 1,457     $ 9,752     $ 4,332    
  Total pre-tax impact of non-GAAP adjustments     760       696       574       2,553       2,274    
  Inco짯me tax impact of non-GAAP adjustments 짤     (330 )     (187 )     (74 )     (712 )     (329 )  
  Dome짯sti짯ca짯ti짯on tax adjustments     7       -       -       (244 )     -    
  For짯eign tax benefit     (90 )     -       -       (90 )     -    
  Non-GAAP net income   $ 3,350     $ 2,973     $ 1,957     $ 11,259     $ 6,277    
                             
  Diluted net inco짯me per share (D)                      
  GAAP     $ 1.18     $ 0.97     $ 0.58     $ 3.85     $ 1.73    
  Non-GAAP     $ 1.32     $ 1.17     $ 0.78     $ 4.44     $ 2.50    
                             
  Weigh짯ted avera짯ge shares used in diluted net inco짯me per share com짯pu짯ta짯ti짯on (D)         2,545       2,538       2,524       2,535       2,510    
                             
  GAAP net cash pro짯vi짯ded by ope짯ra짯ting activities   $ 3,033     $ 1,519     $ 2,067     $ 9,108     $ 5,822    
  Purcha짯ses rela짯ted to pro짯per짯ty and equip짯ment and intan짯gi짯ble assets     (273 )     (221 )     (283 )     (976 )     (1,128 )  
  Prin짯ci짯pal pay짯ments on pro짯per짯ty and equipment     (21 )     (22 )     (17 )     (83 )     (17 )  
  Free cash flow     $ 2,739     $ 1,276     $ 1,767     $ 8,049     $ 4,677    
                             
     
                             
  (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   Twel짯ve Months Ended  
          Janu짯ary 30,   Octo짯ber 31,   Janu짯ary 31,   Janu짯ary 30,   Janu짯ary 31,  
            2022       2021       2021       2022       2021    
  Cost of revenue   $ 86     $ 86     $ 92     $ 344     $ 425    
  Rese짯arch and development   $ 9     $ 7     $ 2     $ 19     $ 9    
  Sales, gene짯ral and administrative   $ 61     $ 63     $ 70     $ 273     $ 402    
                             
  (B) Stock-based com짯pen짯sa짯ti짯on con짯sists of the following:          
          Three Months Ended   Twel짯ve Months Ended  
          Janu짯ary 30,   Octo짯ber 31,   Janu짯ary 31,   Janu짯ary 30,   Janu짯ary 31,  
            2022       2021       2021       2022       2021    
  Cost of revenue   $ 39     $ 44     $ 26     $ 141     $ 88    
  Rese짯arch and development   $ 362     $ 363     $ 266     $ 1,298     $ 860    
  Sales, gene짯ral and administrative   $ 150     $ 152     $ 125     $ 565     $ 449    
                             
  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  
       
   
    Q1 FY2023
Outlook
 
    ($ in millions)  
       
GAAP gross margin   65.2%    
  Impact of stock-based com짯pen짯sa짯ti짯on expen짯se and acqui짯si짯ti짯on-rela짯ted costs   1.8%    
Non-GAAP gross margin   67.0%    
       
GAAP ope짯ra짯ting expenses $ 3,550    
  Arm wri짯te-off cost   (1,357 )  
  Stock-based com짯pen짯sa짯ti짯on expen짯se and acqui짯si짯ti짯on-rela짯ted costs   (593 )  
Non-GAAP ope짯ra짯ting expenses $ 1,600    

 

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/.

Cer짯tain state짯ments in this press release inclu짯ding, but not limi짯t짯ed to, state짯ments as to: the bene짯fits, per짯for짯mance, impact, and abili짯ties of our pro짯ducts and tech짯no짯lo짯gies, inclu짯ding NVIDIA AI, NVIDIA Omni짯ver짯se, NVIDIA DRIVE, the GeForce RTX 3050 desk짯top GPU, GeForce RTX 3080 Ti and RTX 3070 Ti lap짯top GPUs, Stu짯dio GeForce, NVIDIA Reflex, GeForce NOW, NVIDIA DGX A100 sys짯tems, NVIDIA AI Enter짯pri짯se 1.1, NVIDIA FLARE, NVIDIA Cla짯ra, NVIDIA Omni짯ver짯se for Crea짯tors, Omni짯ver짯se Uni짯ver짯sal Sce짯ne Descrip짯ti짯on, NVIDIA GPU-acce짯le짯ra짯ted soft짯ware, NVIDIA DRIVE Orin, NVIDIA DRIVE Hype짯ri짯on, and the Isaac Auto짯no짯mous Mobi짯le Robot plat짯form; the momen짯tum across our busi짯nesses; NVIDIA pro짯pel짯ling advan짯ces in AI, digi짯tal bio짯lo짯gy, cli짯ma짯te sci짯en짯ces, gam짯ing, crea짯ti짯ve design, auto짯no짯mous vehic짯les and robo짯tics; our upco짯ming deve짯lo짯per con짯fe짯rence at GTC; our plans to announ짯ce many new pro짯ducts, appli짯ca짯ti짯ons, and part짯ners for NVIDIA com짯pu짯ting at GTC; our col짯la짯bo짯ra짯ti짯ons with AT&T and Sam짯sung and our part짯ner짯ship with Jagu짯ar Land Rover; NVIDIA셲 next quar짯ter짯ly cash divi짯dend; our inten짯ti짯on to record a char짯ge in con짯nec짯tion with the ter짯mi짯na짯ti짯on of the Share Purcha짯se Agree짯ment rela짯ted to Arm Limi짯t짯ed; NVIDIA셲 finan짯cial out짯look for the first quar짯ter of fis짯cal 2023; and NVIDIA셲 expec짯ted tax rates for the first quar짯ter of fis짯cal 2023 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 2022 NVIDIA Cor짯po짯ra짯ti짯on. All rights reser짯ved. NVIDIA, the NVIDIA logo, GeForce, GeForce NOW, GeForce RTX, NVIDIA Cla짯ra, NVIDIA DGX, NVIDIA DRIVE, NVIDIA DRIVE Hype짯ri짯on, NVIDIA DRIVE Orin, NVIDIA Isaac and NVIDIA Omni짯ver짯se 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.