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NVIDIA Announces Financial Results for First Quarter Fiscal 2024

NVIDIA
NVIDIA

NVIDIA Headquarters

NVIDIA headquarters in Santa Clara, Calif.
NVIDIA headquarters in Santa Clara, Calif.
  • Quarterly revenue of $7.19 billion, up 19% from previous quarter

  • Record Data Center revenue of $4.28 billion

  • Second quarter fiscal 2024 revenue outlook of $11.00 billion

SANTA CLARA, Calif., May 24, 2023 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter ended April 30, 2023, of $7.19 billion, down 13% from a year ago and up 19% from the previous quarter.

GAAP earnings per diluted share for the quarter were $0.82, up 28% from a year ago and up 44% from the previous quarter. Non-GAAP earnings per diluted share were $1.09, down 20% from a year ago and up 24% from the previous quarter.

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“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.

“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.

“Our entire data center family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them,” he said.

During the first quarter of fiscal 2024, NVIDIA returned to shareholders $99 million in cash dividends.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on June 30, 2023, to all shareholders of record on June 8, 2023.

Q1 Fiscal 2024 Summary

GAAP

($ in millions, except earnings per share)

Q1 FY24

Q4 FY23

Q1 FY23

Q/Q

Y/Y

Revenue

$

7,192

 

$

6,051

 

$

8,288

 

Up 19%

Down 13%

Gross margin

 

64.6

%

 

63.3

%

 

65.5

%

Up 1.3 pts

Down 0.9 pts

Operating expenses

$

2,508

 

$

2,576

 

$

3,563

 

Down 3%

Down 30%

Operating income

$

2,140

 

$

1,257

 

$

1,868

 

Up 70%

Up 15%

Net income

$

2,043

 

$

1,414

 

$

1,618

 

Up 44%

Up 26%

Diluted earnings per share

$

0.82

 

$

0.57

 

$

0.64

 

Up 44%

Up 28%


Non-GAAP

($ in millions, except earnings per share)

Q1 FY24

Q4 FY23

Q1 FY23

Q/Q

Y/Y

Revenue

$

7,192

 

$

6,051

 

$

8,288

 

Up 19%

Down 13%

Gross margin

 

66.8

%

 

66.1

%

 

67.1

%

Up 0.7 pts

Down 0.3 pts

Operating expenses

$

1,750

 

$

1,775

 

$

1,608

 

Down 1%

Up 9%

Operating income

$

3,052

 

$

2,224

 

$

3,955

 

Up 37%

Down 23%

Net income

$

2,713

 

$

2,174

 

$

3,443

 

Up 25%

Down 21%

Diluted earnings per share

$

1.09

 

$

0.88

 

$

1.36

 

Up 24%

Down 20%

Outlook
NVIDIA’s outlook for the second quarter of fiscal 2024 is as follows:

  • Revenue is expected to be $11.00 billion, plus or minus 2%.

  • GAAP and non-GAAP gross margins are expected to be 68.6% and 70.0%, respectively, plus or minus 50 basis points.

  • GAAP and non-GAAP operating expenses are expected to be approximately $2.71 billion and $1.90 billion, respectively.

  • GAAP and non-GAAP other income and expense are expected to be an income of approximately $90 million, excluding gains and losses from non-affiliated investments.

  • GAAP and non-GAAP tax rates are expected to be 14.0%, plus or minus 1%, excluding any discrete items.

Highlights

NVIDIA achieved progress since its previous earnings announcement in these areas:

Data Center

Gaming

  • First-quarter revenue was $2.24 billion, down 38% from a year ago and up 22% from the previous quarter.

  • Announced the GeForce RTX™ 4060 family of GPUs, bringing the advancements of NVIDIA Ada Lovelace architecture and DLSS, starting at $299.

  • Launched the GeForce RTX 4070 GPU based on the Ada architecture, which enables DLSS 3, real-time ray-tracing and the ability to run most modern games at over 100 frames per second at 1440p resolution.

  • Added 36 DLSS gaming titles, bringing the total number of games and apps to 300.

  • Made path tracing available for the first time on a major gaming title through collaboration with CD PROJEKT RED on an update to Cyberpunk 2077.

  • Expanded GeForce NOW’s game titles to more than 1,600, including the first Microsoft Xbox game, Gears 5.

Professional Visualization

  • First-quarter revenue was $295 million, down 53% from a year ago and up 31% from the previous quarter.

  • Announced NVIDIA Omniverse™ Cloud, a fully managed service running in Microsoft Azure, for the development and deployment of industrial metaverse applications.

  • Expanded its collaboration with Microsoft to connect Microsoft 365 applications with Omniverse.

  • Announced six new NVIDIA RTX™ GPUs for mobile and desktop workstations based on the Ada architecture.

Automotive

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com/.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2024 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its second quarter of fiscal 2024.

Non-GAAP Measures
To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude acquisition termination costs, stock-based compensation expense, acquisition-related and other costs, IP-related costs, legal settlement costs, other, losses from non-affiliated investments, interest expense related to amortization of debt discount, and the associated tax impact of these items where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases of property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.

About NVIDIA
Since its founding in 1993, NVIDIA (NASDAQ: NVDA) has been a pioneer in accelerated computing. The company’s invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics, ignited the era of modern AI and is fueling the creation of the industrial metaverse. NVIDIA is now a full-stack computing company with data-center-scale offerings that are reshaping industry. More information at https://nvidianews.nvidia.com/.

For further information, contact:

Simona Jankowski

 

Robert Sherbin

Investor Relations

 

Corporate Communications

NVIDIA Corporation

 

NVIDIA Corporation

sjankowski@nvidia.com

 

rsherbin@nvidia.com

Certain statements in this press release including, but not limited to, statements as to: the computer industry going through two simultaneous transitions – accelerated computing and generative AI; installed global data center infrastructure transitioning from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process; NVIDIA’s entire data center family of products being in production; NVIDIA significantly increasing supply to meet surging demand; NVIDIA’s next quarterly cash dividend; NVIDIA’s financial outlook and expected tax rates for the second quarter of fiscal 2024; the benefits, impact, performance, features and availability of our products and technologies, including NVIDIA Ada, NVIDIA Hopper, NVIDIA Grace Hopper CPU, NVIDIA L4 Tensor Core GPU, NVIDIA AI Foundations, NVIDIA cuLitho software library, NVIDIA H100 Tensor Core GPU, NVIDIA AI Enterprise, GeForce RTX GPUs, DLSS 3, GeForce NOW, NVIDIA Omniverse Cloud, Omniverse, NVIDIA RTX GPUs, and NVIDIA DRIVE Orin; and the benefits and impact of our collaborations, including with Google Cloud, Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure, ServiceNow, Medtronic, Dell Technologies, CD PROJEKT RED, Microsoft, and BYD are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2023 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, GeForce NOW, GeForce RTX, NVIDIA DRIVE Orin, NVIDIA Grace Hopper, NVIDIA Hopper, NVIDIA Omniverse, and NVIDIA RTX are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.




NVIDIA CORPORATION

 CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

April 30,

 

May 1,

 

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

Revenue

$

7,192

 

 

$

8,288

 

Cost of revenue

 

2,544

 

 

 

2,857

 

Gross profit

 

4,648

 

 

 

5,431

 

Operating expenses

 

 

 

 

Research and development

 

1,875

 

 

 

1,618

 

 

Sales, general and administrative

 

633

 

 

 

592

 

 

Acquisition termination cost

 

-

 

 

 

1,353

 

 

 

Total operating expenses

 

2,508

 

 

 

3,563

 

Income from operations

 

2,140

 

 

 

1,868

 

 

Interest income

 

150

 

 

 

18

 

 

Interest expense

 

(66

)

 

 

(68

)

 

Other, net

 

(15

)

 

 

(13

)

 

 

Other income (expense), net

 

69

 

 

 

(63

)

Income before income tax

 

2,209

 

 

 

1,805

 

Income tax expense

 

166

 

 

 

187

 

Net income

$

2,043

 

 

$

1,618

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

Basic

$

0.83

 

 

$

0.65

 

 

Diluted

$

0.82

 

 

$

0.64

 

 

 

 

 

 

 

Weighted average shares used in per share computation:

 

 

 

Basic

 

2,470

 

 

 

2,506

 

 

Diluted

 

2,490

 

 

 

2,537

 

 

 

 

 


NVIDIA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

April 30,

 

January 29,

 

 

 

2023

 

2023

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash, cash equivalents and marketable securities

$

15,320

 

$

13,296

 

Accounts receivable, net

 

4,080

 

 

3,827

 

Inventories

 

4,611

 

 

5,159

 

Prepaid expenses and other current assets

 

872

 

 

791

 

 

Total current assets

 

24,883

 

 

23,073

 

 

 

 

 

 

Property and equipment, net

 

3,740

 

 

3,807

Operating lease assets

 

1,094

 

 

1,038

Goodwill

 

4,430

 

 

4,372

Intangible assets, net

 

1,541

 

 

1,676

Deferred income tax assets

 

4,568

 

 

3,396

Other assets

 

4,204

 

 

3,820

 

 

Total assets

$

44,460

 

$

41,182

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

$

1,141

 

$

1,193

 

Accrued and other current liabilities

 

4,869

 

 

4,120

 

Short-term debt

 

1,250

 

 

1,250

 

 

Total current liabilities

 

7,260

 

 

6,563

 

 

 

 

 

 

Long-term debt

 

9,704

 

 

9,703

Long-term operating lease liabilities

 

939

 

 

902

Other long-term liabilities

 

2,037

 

 

1,913

 

 

Total liabilities

 

19,940

 

 

19,081

 

 

 

 

 

 

Shareholders' equity

 

24,520

 

 

22,101

 

 

Total liabilities and shareholders' equity

$

44,460

 

$

41,182

 

 

 

 

 

 


NVIDIA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

April 30,

 

May 1,

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

Net income

$

2,043

 

 

$

1,618

 

Adjustments to reconcile net income to net cash

 

 

 

provided by operating activities:

 

 

 

 

Stock based compensation expense

 

735

 

 

 

578

 

 

Depreciation and amortization

 

384

 

 

 

334

 

 

Losses on investments in non affiliates, net

 

14

 

 

 

17

 

 

Deferred income taxes

 

(1,135

)

 

 

(542

)

 

Acquisition termination cost

 

-

 

 

 

1,353

 

 

Other

 

(34

)

 

 

23

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

 

Accounts receivable

 

(252

)

 

 

(788

)

 

Inventories

 

566

 

 

 

(560

)

 

Prepaid expenses and other assets

 

(215

)

 

 

(1,261

)

 

Accounts payable

 

11

 

 

 

255

 

 

Accrued liabilities and other current liabilities

 

689

 

 

 

634

 

 

Other long-term liabilities

 

105

 

 

 

70

 

Net cash provided by operating activities

 

2,911

 

 

 

1,731

 

Cash flows from investing activities:

 

 

 

 

Proceeds from maturities of marketable securities

 

2,512

 

 

 

5,947

 

 

Proceeds from sales of marketable securities

 

-

 

 

 

1,029

 

 

Purchases of marketable securities

 

(2,801

)

 

 

(3,932

)

 

Purchase related to property and equipment and intangible assets

 

(248

)

 

 

(361

)

 

Acquisitions, net of cash acquired

 

(83

)

 

 

(36

)

 

Investments and other, net

 

(221

)

 

 

(35

)

Net cash provided by (used in) investing activities

 

(841

)

 

 

2,612

 

Cash flows from financing activities:

 

 

 

 

Proceeds related to employee stock plans

 

246

 

 

 

204

 

 

Payments related to tax on restricted stock units

 

(507

)

 

 

(532

)

 

Dividends paid

 

(99

)

 

 

(100

)

 

Principal payments on property and equipment and intangible assets

 

(20

)

 

 

(22

)

 

Payments related to repurchases of common stock

 

-

 

 

 

(1,996

)

Net cash provided by (used in) financing activities

 

(380

)

 

 

(2,446

)

Change in cash and cash equivalents

 

1,690

 

 

 

1,897

 

Cash and cash equivalents at beginning of period

 

3,389

 

 

 

1,990

 

Cash and cash equivalents at end of period

$

5,079

 

 

$

3,887

 

 

 

 

 

 


NVIDIA CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

April 30,

 

January 29,

 

May 1,

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

GAAP gross profit

$

4,648

 

 

$

3,833

 

 

$

5,431

 

  GAAP gross margin

 

64.6

%

 

 

63.3

%

 

 

65.5

%

 

Acquisition-related and other costs (A)

 

119

 

 

 

120

 

 

 

94

 

 

Stock-based compensation expense (B)

 

27

 

 

 

30

 

 

 

38

 

 

IP-related costs

 

8

 

 

 

16

 

 

 

-

 

Non-GAAP gross profit

$

4,802

 

 

$

3,999

 

 

$

5,563

 

  Non-GAAP gross margin

 

66.8

%

 

 

66.1

%

 

 

67.1

%

 

 

 

 

 

 

 

GAAP operating expenses

$

2,508

 

 

$

2,576

 

 

$

3,563

 

 

Stock-based compensation expense (B)

 

(708

)

 

 

(709

)

 

 

(540

)

 

Acquisition-related and other costs (A)

 

(54

)

 

 

(54

)

 

 

(55

)

 

Acquisition termination cost

 

-

 

 

 

-

 

 

 

(1,353

)

 

Legal settlement costs

 

-

 

 

 

-

 

 

 

(7

)

 

Other (C)

 

4

 

 

 

(38

)

 

 

-

 

Non-GAAP operating expenses

$

1,750

 

 

$

1,775

 

 

$

1,608

 

 

 

 

 

 

 

 

GAAP income from operations

$

2,140

 

 

$

1,257

 

 

$

1,868

 

 

Total impact of non-GAAP adjustments to income from operations

 

912

 

 

 

967

 

 

 

2,087

 

Non-GAAP income from operations

$

3,052

 

 

$

2,224

 

 

$

3,955

 

 

 

 

 

 

 

 

GAAP other income (expense), net

$

69

 

 

$

32

 

 

$

(63

)

 

Losses from non-affiliated investments

 

14

 

 

 

10

 

 

 

17

 

 

Interest expense related to amortization of debt discount

 

1

 

 

 

1

 

 

 

1

 

Non-GAAP other income (expense), net

$

84

 

 

$

43

 

 

$

(45

)

 

 

 

 

 

 

 

GAAP net income

$

2,043

 

 

$

1,414

 

 

$

1,618

 

 

Total pre-tax impact of non-GAAP adjustments

 

927

 

 

 

978

 

 

 

2,105

 

 

Income tax impact of non-GAAP adjustments (D)

 

(257

)

 

 

(218

)

 

 

(280

)

Non-GAAP net income

$

2,713

 

 

$

2,174

 

 

$

3,443

 

 

 

 

 

 

 

 

Diluted net income per share

 

 

 

 

 

 

GAAP

$

0.82

 

 

$

0.57

 

 

$

0.64

 

 

Non-GAAP

$

1.09

 

 

$

0.88

 

 

$

1.36

 

 

 

 

 

 

 

 

Weighted average shares used in diluted net income per share computation

 

2,490

 

 

 

2,477

 

 

 

2,537

 

 

 

 

 

 

 

 

GAAP net cash provided by operating activities

$

2,911

 

 

$

2,249

 

 

$

1,731

 

 

Purchases related to property and equipment and intangible assets

 

(248

)

 

 

(509

)

 

 

(361

)

 

Principal payments on property and equipment and intangible assets

 

(20

)

 

 

(4

)

 

 

(22

)

Free cash flow

$

2,643

 

 

$

1,736

 

 

$

1,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items:

 

 

Three Months Ended

 

 

April 30,

 

January 29,

 

May 1,

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

Cost of revenue

$

119

 

 

$

120

 

 

$

94

 

 

Research and development

$

12

 

 

$

10

 

 

$

9

 

 

Sales, general and administrative

$

42

 

 

$

44

 

 

$

46

 

 

 

 

 

 

 

 

(B) Stock-based compensation consists of the following:

 

 

 

Three Months Ended

 

 

April 30,

 

January 29,

 

May 1,

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

Cost of revenue

$

27

 

 

$

30

 

 

$

38

 

 

Research and development

$

524

 

 

$

527

 

 

$

384

 

 

Sales, general and administrative

$

184

 

 

$

182

 

 

$

156

 

 

 

 

 

 

 

 

(C) Other consists of assets held for sale related adjustments.

 

 

 

 

 

 

 

 

 

 

 

 

(D) Income tax impact of non-GAAP adjustments, including the recognition of excess tax benefits or deficiencies related to stock-based compensation under GAAP accounting standard (ASU 2016-09).

 

 

 

 

 

 

 


NVIDIA CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK

 

 

 

 

 

 

Q2 FY2024 Outlook

 

 

($ in millions)

 

 

 

GAAP gross margin

 

68.6

%

 

Impact of stock-based compensation expense, acquisition-related costs, and other costs

 

1.4

%

Non-GAAP gross margin

 

70.0

%

 

 

 

GAAP operating expenses

$

2,710

 

 

Stock-based compensation expense, acquisition-related costs, and other costs

 

(810

)

Non-GAAP operating expenses

$

1,900

 

 

 

 

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/463fe102-9bba-4d9e-931c-3c5898b67a27