NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2023

Wed짯nes짯day, Febru짯ary 22, 2023

  • Quar짯ter짯ly reve짯nue of $6.05 bil짯li짯on, down 21% from a year ago
  • Fis짯cal-year reve짯nue of $27.0 bil짯li짯on, flat from a year ago
  • Quar짯ter짯ly and annu짯al return to share짯hol짯ders of $1.15 bil짯li짯on and $10.44 bil짯li짯on, respectively

SANTA CLARA, Calif., Feb. 22, 2023  NVIDIA (NASDAQ: NVDA) today repor짯ted reve짯nue for the fourth quar짯ter ended Janu짯ary 29, 2023, of $6.05 bil짯li짯on, down 21% from a year ago and up 2% from the pre짯vious quarter.

GAAP ear짯nings per diluted share for the quar짯ter were $0.57, down 52% from a year ago and up 111% from the pre짯vious quar짯ter. Non-GAAP ear짯nings per diluted share were $0.88, down 33% from a year ago and up 52% from the pre짯vious quarter.

For fis짯cal 2023, reve짯nue was $26.97 bil짯li짯on, flat from a year ago. GAAP ear짯nings per diluted share were $1.74, down 55% from a year ago. Non-GAAP ear짯nings per diluted share were $3.34, down 25% from a year ago.

AI is at an inflec짯tion point, set짯ting up for broad adop짯ti짯on rea짯ching into every indus짯try, said Jen짯sen Huang, foun짯der and CEO of NVIDIA. 쏤rom start짯ups to major enter짯pri짯ses, we are see짯ing acce짯le짯ra짯ted inte짯rest in the ver짯sa짯ti짯li짯ty and capa짯bi짯li짯ties of gene짯ra짯ti짯ve AI.

We are set to help cus짯to짯mers take advan짯ta짯ge of breakth짯roughs in gene짯ra짯ti짯ve AI and lar짯ge lan짯guage models. Our new AI super짯com짯pu짯ter, with H100 and its Trans짯for짯mer Engi짯ne and Quantum2 net짯wor짯king fabric, is in full production.

Gam짯ing is reco짯ve짯ring from the post-pan짯de짯mic down짯turn, with gamers enthu짯si짯a짯sti짯cal짯ly embra짯cing the new Ada archi짯tec짯tu짯re GPUs with AI neu짯ral ren짯de짯ring, he said. 

NVIDIA AI Cloud Ser짯vice Offerings
NVIDIA is part짯ne짯ring with lea짯ding cloud ser짯vice pro짯vi짯ders to offer AI-as-a-ser짯vice that pro짯vi짯des enter짯pri짯ses access to NVIDIA셲 world-lea짯ding AI platform.

Cus짯to짯mers will be able to enga짯ge each lay짯er of NVIDIA AI the AI super짯com짯pu짯ter, acce짯le짯ra짯ti짯on libra짯ri짯es soft짯ware or pre짯trai짯ned gene짯ra짯ti짯ve AI models as a cloud service.

Using their brow짯ser, they will be able to enga짯ge an NVIDIA DGXAI super짯com짯pu짯ter through the NVIDIA DGX Cloud, which is alre짯a짯dy offe짯red on Ora짯cle Cloud Infra짯struc짯tu짯re, with Micro짯soft Azu짯re, Goog짯le Cloud Plat짯form and others expec짯ted soon. At the AI plat짯form soft짯ware lay짯er, they will be able to access NVIDIA AI Enter짯pri짯se for trai짯ning and deploy짯ing lar짯ge lan짯guage models or other AI workloads. And at the AI-model-as-a-ser짯vice lay짯er, NVIDIA will offer its NeMo꽓 and Bio짯Ne짯Mo꽓 cus짯to짯mizable AI models to enter짯pri짯se cus짯to짯mers who want to build pro짯prie짯ta짯ry gene짯ra짯ti짯ve AI models and ser짯vices for their businesses.

Fur짯ther details will be shared at the company셲 GTC deve짯lo짯per con짯fe짯rence, taking place vir짯tual짯ly March 2023.

Return to Shareholders

During the fourth quar짯ter of fis짯cal 2023, NVIDIA retur짯ned to share짯hol짯ders $1.15 bil짯li짯on in share repurcha짯ses and cash divi짯dends, brin짯ging the return in the fis짯cal year to $10.44 billion.

NVIDIA will pay its next quar짯ter짯ly cash divi짯dend of $0.04 per share on March 29, 2023, to all share짯hol짯ders of record on March 8, 2023.

Q4 Fis짯cal 2023 Summary

GAAP
($ in mil짯li짯ons, except ear짯nings per share) Q4 FY23 Q3 FY23 Q4 FY22 Q/Q Y/Y
Reve짯nue $6,051 $5,931 $7,643 Up 2% Down 21%
Gross mar짯gin   63.3%   53.6%   65.4% Up 9.7 pts Down 2.1 pts
Ope짯ra짯ting expenses $2,576 $2,576 $2,029 Up 27%
Ope짯ra짯ting income $1,257 $601 $2,970 Up 109% Down 58%
Net inco짯me $1,414 $680 $3,003 Up 108% Down 53%
Diluted ear짯nings per share $0.57 $0.27 $1.18 Up 111% Down 52%

 

Non-GAAP
($ in mil짯li짯ons, except ear짯nings per share) Q4 FY23 Q3 FY23 Q4 FY22 Q/Q Y/Y
Reve짯nue $6,051 $5,931 $7,643 Up 2% Down 21%
Gross mar짯gin   66.1%   56.1%   67.0% Up 10.0 pts Down 0.9 pts
Ope짯ra짯ting expenses $1,775 $1,793 $1,447 Down 1% Up 23%
Ope짯ra짯ting income $2,224 $1,536 $3,677 Up 45% Down 40%
Net inco짯me $2,174 $1,456 $3,350 Up 49% Down 35%
Diluted ear짯nings per share $0.88 $0.58 $1.32 Up 52% Down 33%

Fis짯cal 2023 Summary

GAAP
($ in mil짯li짯ons, except ear짯nings per share) FY23 FY22 Y/Y
Reve짯nue $26,974 $26,914
Gross mar짯gin   56.9%   64.9% Down 8.0 pts
Ope짯ra짯ting expenses $11,132 $7,434 Up 50%
Ope짯ra짯ting income $4,224 $10,041 Down 58%
Net inco짯me $4,368 $9,752 Down 55%
Diluted ear짯nings per share $1.74 $3.85 Down 55%

 

Non-GAAP
($ in mil짯li짯ons, except ear짯nings per share) FY23 FY22 Y/Y
Reve짯nue $26,974 $26,914
Gross mar짯gin   59.2%   66.8% Down 7.6 pts
Ope짯ra짯ting expenses $6,925 $5,279 Up 31%
Ope짯ra짯ting income $9,040 $12,690 Down 29%
Net inco짯me $8,366 $11,259 Down 26%
Diluted ear짯nings per share $3.34 $4.44 Down 25%

Out짯look
NVIDIA셲 out짯look for the first quar짯ter of fis짯cal 2024 is as follows:

  • Reve짯nue is expec짯ted to be $6.50 bil짯li짯on, plus or minus 2%.
  • GAAP and non-GAAP gross mar짯gins are expec짯ted to be 64.1% and 66.5%, respec짯tively, plus or minus 50 basis points.
  • GAAP and non-GAAP ope짯ra짯ting expen짯ses are expec짯ted to be appro짯xi짯m짯ate짯ly $2.53 bil짯li짯on and $1.78 bil짯li짯on, respectively.
  • GAAP and non-GAAP other inco짯me and expen짯se are expec짯ted to be an inco짯me of appro짯xi짯m짯ate짯ly $50 mil짯li짯on, exclu짯ding gains and los짯ses from non-affi짯lia짯ted investments.
  • GAAP and non-GAAP tax rates are expec짯ted to be 13.0%, plus or minus 1%, exclu짯ding any dis짯crete items.

High짯lights

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

Data Cen짯ter

Gam짯ing

Pro짯fes짯sio짯nal Visualization

Auto짯mo짯ti짯ve and Embedded

  • Fourth-quar짯ter reve짯nue was a record $294 mil짯li짯on, up 135% from a year ago and up 17% from the pre짯vious quar짯ter. Fis짯cal-year reve짯nue rose 60% to a record $903 million.
  • Announ짯ced a stra짯te짯gic part짯ner짯ship with Fox짯conn to deve짯lop auto짯ma짯ted and auto짯no짯mous vehic짯le plat짯forms based on NVIDIA DRIVE Orin꽓 and DRIVE Hyperion꽓.
  • Released major updates to the NVIDIA Isaac Sim꽓 robo짯tics simu짯la짯ti짯on tool, inclu짯ding AI capa짯bi짯li짯ties and cloud access, enab짯ling the buil짯ding and test짯ing of vir짯tu짯al robots in rea짯li짯stic environments.

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 2023 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 first quar짯ter of fis짯cal 2024.

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 acqui짯si짯ti짯on ter짯mi짯na짯ti짯on cos짯ts, stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted and other cos짯ts, con짯tri짯bu짯ti짯ons, IP-rela짯ted cos짯ts, legal sett짯le짯ment cos짯ts, res짯truc짯tu짯ring cos짯ts and other, gains and los짯ses from non-affi짯lia짯ted invest짯ments, inte짯rest expen짯se rela짯ted to amor짯tiza짯ti짯on of debt dis짯count, the asso짯cia짯ted tax impact of the짯se items whe짯re appli짯ca짯ble, for짯eign tax bene짯fit and dome짯sti짯ca짯ti짯on tax adjus짯t짯ments. 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 29,   Janu짯ary 30,   Janu짯ary 29,   Janu짯ary 30,  
        2023       2022       2023       2022    
                     
Reve짯nue $ 6,051     $ 7,643     $ 26,974     $ 26,914    
Cost of revenue   2,218       2,644       11,618       9,439    
Gross pro짯fit   3,833       4,999       15,356       17,475    
Ope짯ra짯ting expenses                
  Rese짯arch and development   1,951       1,466       7,339       5,268    
  Sales, gene짯ral and administrative   625       563       2,440       2,166    
  Acqui짯si짯ti짯on ter짯mi짯na짯ti짯on cost   -       -       1,353       -    
    Total ope짯ra짯ting expenses   2,576       2,029       11,132       7,434    
Inco짯me from operations   1,257       2,970       4,224       10,041    
  Inte짯rest income   115       9       267       29    
  Inte짯rest expense   (65 )     (61 )     (262 )     (236 )  
  Other, net   (18 )     (53 )     (48 )     107    
    Other inco짯me (expen짯se), net   32       (105 )     (43 )     (100 )  
Inco짯me befo짯re inco짯me tax   1,289       2,865       4,181       9,941    
Inco짯me tax expen짯se (bene짯fit)   (125 )     (138 )     (187 )     189    
Net inco짯me $ 1,414     $ 3,003     $ 4,368     $ 9,752    
                     
Net inco짯me per share:                
  Basic $ 0.57     $ 1.20     $ 1.76     $ 3.91    
  Diluted $ 0.57     $ 1.18     $ 1.74     $ 3.85    
                     
Weigh짯ted avera짯ge shares used in per share computation:              
  Basic   2,464       2,504       2,487       2,496    
  Diluted   2,477       2,545       2,507       2,535    

 

NVIDIA CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In mil짯li짯ons)  
(Unau짯di짯ted)  
               
               
        Janu짯ary 29,   Janu짯ary 30,  
         2023    2022  
ASSETS          
               
Cur짯rent assets:          
  Cash, cash equi짯va짯lents and mar짯ke짯ta짯ble securities   $ 13,296   $ 21,208  
  Accounts receiva짯ble, net     3,827     4,650  
  Invent짯ories     5,159     2,605  
  Pre짯paid expen짯ses and other cur짯rent assets     791     366  
    Total cur짯rent assets     23,073     28,829  
               
Pro짯per짯ty and equip짯ment, net     3,807     2,778  
Ope짯ra짯ting lea짯se assets     1,038     829  
Good짯will     4,372     4,349  
Intan짯gi짯ble assets, net     1,676     2,339  
Defer짯red inco짯me tax assets     3,396     1,222  
Other assets     3,820     3,841  
    Total assets   $ 41,182   $ 44,187  
               
LIABILITIES AND SHAREHOLDERS EQUITY  
               
Cur짯rent liabilities:          
  Accounts paya짯ble   $ 1,193   $ 1,783  
  Accrued and other cur짯rent liabilities     4,120     2,552  
  Short-term debt     1,250     -  
    Total cur짯rent liabilities     6,563     4,335  
               
Long-term debt     9,703     10,946  
Long-term ope짯ra짯ting lea짯se liabilities     902     741  
Other long-term liabilities     1,913     1,553  
    Total lia짯bi짯li짯ties     19,081     17,575  
               
Share짯hol짯ders equity     22,101     26,612  
    Total lia짯bi짯li짯ties and share짯hol짯ders equity   $ 41,182   $ 44,187  

 

NVIDIA CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(In mil짯li짯ons)  
(Unau짯di짯ted)  
                     
                     
      Three Months Ended   Twel짯ve Months Ended  
      Janu짯ary 29,   Janu짯ary 30, Janu짯ary 29   Janu짯ary 30,  
        2023       2022       2023       2022    
                     
Cash flows from ope짯ra짯ting activities:                
Net inco짯me $ 1,414     $ 3,003     $ 4,368     $ 9,752    
Adjus짯t짯ments to recon짯ci짯le net inco짯me to net cash                
pro짯vi짯ded by ope짯ra짯ting activities:                
  Stock based com짯pen짯sa짯ti짯on expense   738       551       2,709     $ 2,004    
  Depre짯cia짯ti짯on and amortization   426       309       1,544       1,174    
  (Gain) los짯ses on invest짯ments in non affi짯lia짯tes, net   10       53       45       (100 )  
  Defer짯red inco짯me taxes   (647 )     (225 )     (2,164 )     (406 )  
  Acqui짯si짯ti짯on ter짯mi짯na짯ti짯on cost   -       -       1,353       -    
  Other   20       21       (7 )     47    
Chan짯ges in ope짯ra짯ting assets and lia짯bi짯li짯ties, net of acquisitions:                
  Accounts receiva짯ble   1,081       (692 )     822       (2,215 )  
  Invent짯ories   (706 )     (374 )     (2,554 )     (774 )  
  Pre짯paid expen짯ses and other assets   (210 )     (158 )     (1,517 )     (1,715 )  
  Accounts paya짯ble   (193 )     183       (551 )     568    
  Accrued lia짯bi짯li짯ties and other cur짯rent liabilities   166       423       1,341       581    
  Other long-term liabilities   150       (61 )     252       192    
Net cash pro짯vi짯ded by ope짯ra짯ting activities   2,249       3,033       5,641       9,108    
Cash flows from inves짯t짯ing activities:                
  Pro짯ceeds from matu짯ri짯ties of mar짯ke짯ta짯ble securities   2,633       7,417       19,425       15,197    
  Pro짯ceeds from sales of mar짯ke짯ta짯ble securities   -       107       1,806       1,023    
  Purcha짯ses of mar짯ke짯ta짯ble securities   (2,133 )     (8,767 )     (11,897 )     (24,787 )  
  Purcha짯se rela짯ted to pro짯per짯ty and equip짯ment and intan짯gi짯ble assets   (509 )     (273 )     (1,833 )     (976 )  
  Acqui짯si짯ti짯ons, net of cash acquired   -       (60 )     (49 )     (263 )  
  Invest짯ments and other, net   5       (11 )     (77 )     (24 )  
Net cash pro짯vi짯ded by (used in) inves짯t짯ing activities   (4 )     (1,587 )     7,375       (9,830 )  
Cash flows from finan짯cing activities:                
  Pro짯ceeds rela짯ted to employee stock plans   5       4       355       281    
  Pay짯ments rela짯ted to repurcha짯ses of com짯mon stock   (1,212 )     -       (10,039 )     -    
  Pay짯ments rela짯ted to tax on rest짯ric짯ted stock units   (344 )     (622 )     (1,475 )     (1,904 )  
  Divi짯dends paid   (98 )     (100 )     (398 )     (399 )  
  Prin짯ci짯pal pay짯ments on pro짯per짯ty and equip짯ment and intan짯gi짯ble assets   (4 )     (21 )     (58 )     (83 )  
  Issu짯an짯ce of debt, net of issu짯an짯ce costs   -       -       -       4,977    
  Repay짯ment of debt   -       -       -       (1,000 )  
  Other   (3 )     (5 )     (2 )     (7 )  
Net cash pro짯vi짯ded by (used in) finan짯cing activities   (1,656 )     (744 )     (11,617 )     1,865    
Chan짯ge in cash and cash equivalents   589       702       1,399       1,143    
Cash and cash equi짯va짯lents at begin짯ning of period   2,800       1,288       1,990       847    
Cash and cash equi짯va짯lents at end of period $ 3,389     $ 1,990     $ 3,389     $ 1,990    

 

  NVIDIA CORPORATION
  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
  (In mil짯li짯ons, except per share data)
  (Unau짯di짯ted)
                     
        Three Months Ended   Twel짯ve Months Ended
        Janu짯ary 29,   Octo짯ber 30,   Janu짯ary 30,   Janu짯ary 29,   Janu짯ary 30,
          2023       2022       2022       2023       2022  
                         
  GAAP gross profit $ 3,833     $ 3,177     $ 4,999     $ 15,356     $ 17,475  
    GAAP gross margin   63.3%       53.6%       65.4%       56.9%       64.9%  
    Acqui짯si짯ti짯on-rela짯ted and other cos짯ts (A)   120       120       86       455       344  
    Stock-based com짯pen짯sa짯ti짯on expen짯se (B)   30       32       39       138       141  
    IP-rela짯ted costs     16       -       -       16       9  
  Non-GAAP gross profit $ 3,999     $ 3,329     $ 5,124     $ 15,965     $ 17,969  
    Non-GAAP gross margin   66.1%       56.1%       67.0%       59.2%       66.8%  
                         
  GAAP ope짯ra짯ting expenses $ 2,576     $ 2,576     $ 2,029     $ 11,132     $ 7,434  
    Stock-based com짯pen짯sa짯ti짯on expen짯se (B)   (709 )     (713 )     (512 )     (2,572 )     (1,863 )
    Acqui짯si짯ti짯on-rela짯ted and other cos짯ts (A)   (54 )     (54 )     (70 )     (219 )     (292 )
    Res짯truc짯tu짯ring cos짯ts and other   (38 )     (16 )     -       (54 )     -  
    Acqui짯si짯ti짯on ter짯mi짯na짯ti짯on cost   -       -       -       (1,353 )     -  
    Legal sett짯le짯ment costs   -       -       -       (7 )     -  
    Con짯tri짯bu짯ti짯ons     -       -       -       (2 )     -  
  Non-GAAP ope짯ra짯ting expenses $ 1,775     $ 1,793     $ 1,447     $ 6,925     $ 5,279  
                         
  GAAP inco짯me from operations $ 1,257     $ 601     $ 2,970     $ 4,224     $ 10,041  
    Total impact of non-GAAP adjus짯t짯ments to inco짯me from operations   967       935       707       4,816       2,649  
  Non-GAAP inco짯me from operations $ 2,224     $ 1,536     $ 3,677     $ 9,040     $ 12,690  
                         
  GAAP other inco짯me (expen짯se), net $ 32     $ 12     $ (105 )   $ (43 )   $ (100 )
    (Gains) los짯ses from non-affi짯lia짯ted investments   10       11       53       45       (99 )
    Inte짯rest expen짯se rela짯ted to amor짯tiza짯ti짯on of debt discount   1       1       -       5       3  
  Non-GAAP other inco짯me (expen짯se), net $ 43     $ 24     $ (52 )   $ 7     $ (196 )
                         
  GAAP net income   $ 1,414     $ 680     $ 3,003     $ 4,368     $ 9,752  
    Total pre-tax impact of non-GAAP adjustments   978       947       760       4,865       2,553  
    Inco짯me tax impact of non-GAAP adjustments 짤   (218 )     (171 )     (330 )     (867 )     (712 )
    Dome짯sti짯ca짯ti짯on tax adjustments   -       -       7       -       (244 )
    For짯eign tax benefit   -       -       (90 )     -       (90 )
  Non-GAAP net income $ 2,174     $ 1,456     $ 3,350     $ 8,366     $ 11,259  
                         
  Diluted net inco짯me per share                  
    GAAP   $ 0.57     $ 0.27     $ 1.18     $ 1.74     $ 3.85  
    Non-GAAP   $ 0.88     $ 0.58     $ 1.32     $ 3.34     $ 4.44  
                         
  Weigh짯ted avera짯ge shares used in diluted net inco짯me per share computation   2,477       2,499       2,545       2,507       2,535  
                         
  GAAP net cash pro짯vi짯ded by ope짯ra짯ting activities $ 2,249     $ 392     $ 3,033     $ 5,641     $ 9,108  
    Purcha짯ses rela짯ted to pro짯per짯ty and equip짯ment and intan짯gi짯ble assets   (509 )     (530 )     (273 )     (1,833 )     (976 )
    Prin짯ci짯pal pay짯ments on pro짯per짯ty and equip짯ment and intan짯gi짯ble assets   (4 )     (18 )     (21 )     (58 )     (83 )
  Free cash flow   $ 1,736     $ (156 )   $ 2,739     $ 3,750     $ 8,049  
                         
   
                         
  (A) Acqui짯si짯ti짯on-rela짯ted and other cos짯ts are com짯pri짯sed of amor짯tiza짯ti짯on of intan짯gi짯ble assets, tran짯sac짯tion cos짯ts, and cer짯tain com짯pen짯sa짯ti짯on char짯ges and are included in the fol짯lo짯wing line items:
 
        Three Months Ended   Twel짯ve Months Ended
        Janu짯ary 29,   Octo짯ber 30,   Janu짯ary 30,   Janu짯ary 29,   Janu짯ary 30,
          2023       2022       2022       2023       2022  
    Cost of revenue $ 120     $ 120     $ 86     $ 455     $ 344  
    Rese짯arch and development $ 10     $ 10     $ 9     $ 39     $ 19  
    Sales, gene짯ral and administrative $ 44     $ 44     $ 61     $ 180     $ 273  
                         
  (B) Stock-based com짯pen짯sa짯ti짯on con짯sists of the following:      
        Three Months Ended   Twel짯ve Months Ended
        Janu짯ary 29,   Octo짯ber 30,   Janu짯ary 30,   Janu짯ary 29,   Janu짯ary 30,
          2023       2022       2022       2023       2022  
    Cost of revenue $ 30     $ 32     $ 39     $ 138     $ 141  
    Rese짯arch and development $ 527     $ 530     $ 362     $ 1,892     $ 1,298  
    Sales, gene짯ral and administrative $ 182     $ 183     $ 150     $ 680     $ 565  
  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  
       
   
    Q1 FY2024 Outlook  
    ($ in millions)  
       
GAAP gross margin   64.1%    
  Impact of stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted cos짯ts, and other costs   2.4%    
Non-GAAP gross margin   66.5%    
       
GAAP ope짯ra짯ting expenses $ 2,525    
  Stock-based com짯pen짯sa짯ti짯on expen짯se, acqui짯si짯ti짯on-rela짯ted cos짯ts, and other costs   (750 )  
Non-GAAP ope짯ra짯ting expenses $ 1,775    

About NVIDIA
Sin짯ce its foun짯ding in 1993, NVIDIA (NASDAQ: NVDA) has been a pio짯neer in acce짯le짯ra짯ted com짯pu짯ting. The company셲 inven짯ti짯on of the GPU in 1999 spark짯ed the growth of the PC gam짯ing mar짯ket, rede짯fi짯ned com짯pu짯ter gra짯phics, igni짯ted the era of modern AI and is fue짯ling the crea짯ti짯on of the meta짯ver짯se. NVIDIA is now a full-stack com짯pu짯ting com짯pa짯ny with data-cen짯ter-sca짯le offe짯rings that are res짯ha짯ping indus짯try. More infor짯ma짯ti짯on at https://nvidianews.nvidia.com/.

Cer짯tain state짯ments in this press release inclu짯ding, but not limi짯t짯ed to, state짯ments as to: AI being at an inflec짯tion point, set짯ting up for broad adop짯ti짯on rea짯ching into every indus짯try; see짯ing acce짯le짯ra짯ted inte짯rest in the ver짯sa짯ti짯li짯ty and capa짯bi짯li짯ties of gene짯ra짯ti짯ve AI; NVIDIA being set to help cus짯to짯mers take advan짯ta짯ge of breakth짯roughs in gene짯ra짯ti짯ve AI and lar짯ge lan짯guage models; NVIDIA셲 new AI super짯com짯pu짯ter being in full pro짯duc짯tion; gam짯ing reco짯ve짯ring from the post-pan짯de짯mic down짯turn; gamers enthu짯si짯a짯sti짯cal짯ly embra짯cing the new Ada archi짯tec짯tu짯re GPUs with AI neu짯ral ren짯de짯ring; part짯ne짯ring with lea짯ding cloud ser짯vice pro짯vi짯ders to offer NVIDIA AI cloud ser짯vice; cus짯to짯mers being able to enga짯ge each lay짯er of NVIDIA AI the AI super짯com짯pu짯ter, acce짯le짯ra짯ti짯on libra짯ri짯es soft짯ware or pre짯trai짯ned gene짯ra짯ti짯ve AI models  as a cloud ser짯vice; NVIDIA셲 next quar짯ter짯ly cash divi짯dend; NVIDIA셲 finan짯cial out짯look and expec짯ted tax rates for the first quar짯ter of fis짯cal 2024; the bene짯fits, impact, per짯for짯mance, and avai짯la짯bi짯li짯ty of our pro짯ducts and tech짯no짯lo짯gies, inclu짯ding the NVIDIA AI as a cloud ser짯vice, GeForce RTX 40 Series, GeForce RTX 4070 Ti, DLSS 3, GeForce RTX 3090 Ti, NVIDIA Ada Love짯lace, GeForce NOW Ulti짯ma짯te mem짯ber짯ship tier, GeForce RTX 4080, NVIDIA Reflex, NVIDIA Omni짯ver짯se Enter짯pri짯se, NVIDIA DRIVE Orin and DRIVE Hype짯ri짯on, and NVIDIA Isaac Sim; and the bene짯fits and impact of our col짯la짯bo짯ra짯ti짯ons with Deut짯sche Bank, Dell Tech짯no짯lo짯gies, Lock짯heed Mar짯tin, Micro짯soft, Mer짯ce짯des-Benz and Fox짯conn 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 2023 NVIDIA Cor짯po짯ra짯ti짯on. All rights reser짯ved. NVIDIA, the NVIDIA logo, GeForce, GeForce NOW, GeForce RTX, NVIDIA Bio짯Ne짯Mo, NVIDIA DRIVE, NVIDIA DRIVE Hype짯ri짯on, NVIDIA DRIVE Orin, NVIDIA Isaac Sim, NVIDIA NeMo and NVIDIA Omni짯ver짯se 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.