• NVIDIA Announces Financial Results for Third Quarter Fiscal 2024

    Source: Nasdaq GlobeNewswire / 21 Nov 2023 16:20:14   America/New_York

    • Record revenue of $18.12 billion, up 34% from Q2, up 206% from year ago
    • Record Data Center revenue of $14.51 billion, up 41% from Q2, up 279% from year ago

    SANTA CLARA, Calif., Nov. 21, 2023 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported revenue for the third quarter ended October 29, 2023, of $18.12 billion, up 206% from a year ago and up 34% from the previous quarter.

    GAAP earnings per diluted share for the quarter were $3.71, up more than 12x from a year ago and up 50% from the previous quarter. Non-GAAP earnings per diluted share were $4.02, up nearly 6x from a year ago and up 49% from the previous quarter.

    “Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.

    “Large language model startups, consumer internet companies and global cloud service providers were the first movers, and the next waves are starting to build. Nations and regional CSPs are investing in AI clouds to serve local demand, enterprise software companies are adding AI copilots and assistants to their platforms, and enterprises are creating custom AI to automate the world’s largest industries.

    “NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off,” he said.

    NVIDIA will pay its next quarterly cash dividend of $0.04 per share on December 28, 2023, to all shareholders of record on December 6, 2023.

    Q3 Fiscal 2024 Summary

    GAAP
    ($ in millions, except earnings
    per share)    		Q3 FY24
    		Q2 FY24
    		Q3 FY23
    		Q/QY/Y
    Revenue$18,120$13,507$5,931Up 34%Up 206%
    Gross margin74.0%70.1%53.6%Up 3.9 ptsUp 20.4 pts
    Operating expenses$2,983$2,662$2,576Up 12%Up 16%
    Operating income$10,417$6,800$601Up 53%Up 1,633%
    Net income$9,243$6,188$680Up 49%Up 1,259%
    Diluted earnings per share$3.71$2.48$0.27Up 50%Up 1,274%


    Non-GAAP
    ($ in millions, except earnings
    per share)    		Q3 FY24Q2 FY24Q3 FY23Q/QY/Y
    Revenue$18,120$13,507$5,931Up 34%Up 206%
    Gross margin75.0%71.2%56.1%Up 3.8 ptsUp 18.9 pts
    Operating expenses$2,026$1,838$1,793Up 10%Up 13%
    Operating income$11,557$7,776$1,536Up 49%Up 652%
    Net income$10,020$6,740$1,456Up 49%Up 588%
    Diluted earnings per share$4.02$2.70$0.58Up 49%Up 593%
          

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

    • Revenue is expected to be $20.00 billion, plus or minus 2%.
    • GAAP and non-GAAP gross margins are expected to be 74.5% and 75.5%, respectively, plus or minus 50 basis points.
    • GAAP and non-GAAP operating expenses are expected to be approximately $3.17 billion and $2.20 billion, respectively.
    • GAAP and non-GAAP other income and expense are expected to be an income of approximately $200 million, excluding gains and losses from non-affiliated investments.
    • GAAP and non-GAAP tax rates are expected to be 15.0%, plus or minus 1%, excluding any discrete items.

    Highlights

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

    Data Center

    Gaming

    • Third-quarter revenue was $2.86 billion, up 15% from the previous quarter and up 81% from a year ago. 
    • Launched DLSS 3.5 Ray Reconstruction, which creates high-quality ray-traced images for intensive ray-traced games and apps, including Alan Wake 2 and Cyberpunk 2077. 
    • Released TensorRT-LLM™ for Windows, speeding on-device LLM inference by up to 4x. 
    • Added 56 DLSS games and over 15 Reflex games, bringing the total number of RTX games and applications to over 475. 
    • Surpassed 1,700 games on GeForce NOW™, including launches of Alan Wake 2, Baldur’s Gate 3, Cyberpunk 2077: Phantom Liberty, Forza Motorsport and Starfield.

    Professional Visualization

    • Third-quarter revenue was $416 million, up 10% from the previous quarter and up 108% from a year ago.
    • Announced that Mercedes-Benz is using NVIDIA Omniverse to create digital twins to help plan, design, build and operate its manufacturing and assembly facilities around the world.
    • Announced a new line of desktop workstations with NVIDIA RTX™ 6000 Ada Generation GPUs and NVIDIA ConnectX® smart interface cards for training smaller AI models, fine-tuning models and running inference locally.

    Automotive

    • Third-quarter revenue was $261 million, up 3% from the previous quarter and up 4% from a year ago.
    • Furthered its collaboration with Foxconn to develop next-generation electric vehicles for the global market, using the next-generation NVIDIA DRIVE Hyperion™ platform and NVIDIA DRIVE Thor™ system-on-a-chip.

    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 third 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 fourth quarter and 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, other, gains and 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 industrial digitalization across markets. 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 JankowskiRobert Sherbin
    Investor RelationsCorporate Communications
    NVIDIA CorporationNVIDIA Corporation
    sjankowski@nvidia.comrsherbin@nvidia.com
      

    Certain statements in this press release including, but not limited to, statements as to: the broad industry platform transition from general-purpose to accelerated computing and generative AI and the next waves starting to build; nations and regional CSPs investing in AI clouds to serve local demand, enterprise software companies adding AI copilots and assistants to their platforms, and enterprises creating custom AI to automate the world’s largest industries; NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software as growth engines for generative AI; the era of generative AI taking off; the NVIDIA AI foundry service accelerating the development and tuning of custom generative AI applications; the usage of NVIDIA GH200 Superchips in supercomputers globally; NVIDIA’s next quarterly cash dividend; NVIDIA’s financial outlook and expected tax rates for the fourth quarter of fiscal 2024; the benefits, impact, performance, features and availability of NVIDIA’s products and technologies, including the NVIDIA HGX H200, NVIDIA H200 Tensor Core GPU, NVIDIA AI Foundation Models, NVIDIA NeMo, NVIDIA GH200 Grace Hopper Superchip, NVIDIA AI Enterprise, NVIDIA Omniverse, NVIDIA Spectrum-X, NVIDIA RTX workstations, NVIDIA RTX 6000 Ada GPU, NVIDIA Omniverse Enterprise software, NVIDIA H100 Tensor Core GPU, NVIDIA DGX Cloud AI, GeForce NOW, NVIDIA CUDA Quantum platform, DLSS, DLSS 3.5 Ray Reconstruction, NVIDIA DRIVE Hyperion, NVIDIA DRIVE Thor, TensorRT-LLM, NVIDIA ConnectX; the benefits and impact of NVIDIA’s partnerships with Amdocs, Dropbox, Foxconn, Genentech, Infosys, Lenovo, Reliance Industries, Scaleway and Tata Group; growing support for NVIDIA CUDA Quantum platform; and the usage of NVIDIA Omniverse by Mercedes-Benz 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; and 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 NOW, NVIDIA CUDA, NVIDIA DGX, NVIDIA DRIVE Hyperion, NVIDIA DRIVE Thor, NVIDIA Grace Hopper, NVIDIA HGX, NVIDIA NeMo, NVIDIA Omniverse, NVIDIA RTX, NVIDIA Spectrum-X and TensorRT 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 Nine Months Ended
       October 29, October 30, October 29, October 30,
        2023   2022   2023   2022 
              
    Revenue$18,120  $5,931  $38,819  $20,923 
    Cost of revenue 4,720   2,754   11,309   9,400 
    Gross profit 13,400   3,177   27,510   11,523 
              
    Operating expenses       
     Research and development 2,294   1,945   6,210   5,387 
     Sales, general and administrative 689   631   1,942   1,815 
     Acquisition termination cost -   -   -   1,353 
      Total operating expenses 2,983   2,576   8,152   8,555 
              
    Operating Income 10,417   601   19,358   2,968 
     Interest income 234   88   572   152 
     Interest expense (63)  (65)  (194)  (198)
     Other, net (66)  (11)  (24)  (29)
      Other income (expense), net 105   12   354   (75)
              
    Income before income tax 10,522   613   19,712   2,893 
    Income tax expense (benefit) 1,279   (67)  2,237   (61)
    Net income$ 9,243  $ 680  $ 17,475  $ 2,954 
              
    Net income per share:       
     Basic$3.75  $0.27  $7.07  $1.18 
     Diluted$3.71  $0.27  $7.01  $1.17 
              
    Weighted average shares used in per share computation:       
     Basic 2,468   2,483   2,470   2,495 
     Diluted 2,494   2,499   2,494   2,517 
              


    NVIDIA CORPORATION
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)
           
           
        October 29, January 29,
         2023  2023
    ASSETS    
           
    Current assets:    
     Cash, cash equivalents and marketable securities $18,281 $13,296
     Accounts receivable, net  8,309  3,827
     Inventories  4,779  5,159
     Prepaid expenses and other current assets  1,289  791
      Total current assets  32,658  23,073
           
    Property and equipment, net  3,844  3,807
    Operating lease assets  1,316  1,038
    Goodwill  4,430  4,372
    Intangible assets, net  1,251  1,676
    Deferred income tax assets  5,982  3,396
    Other assets  4,667  3,820
      Total assets $ 54,148 $ 41,182
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY
           
    Current liabilities:    
     Accounts payable $2,380 $1,193
     Accrued and other current liabilities  5,472  4,120
     Short-term debt  1,249  1,250
      Total current liabilities  9,101  6,563
           
    Long-term debt  8,457  9,703
    Long-term operating lease liabilities  1,091  902
    Other long-term liabilities  2,234  1,913
      Total liabilities  20,883  19,081
           
    Shareholders’ equity  33,265  22,101
      Total liabilities and shareholders’ equity $ 54,148 $ 41,182
           


    NVIDIA CORPORATION
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (Unaudited)
              
              
       Three Months Ended Nine Months Ended
       October 29,
    		 October 30,
    		 October 29,
    		 October 30,
        2023   2022   2023   2022 
              
    Cash flows from operating activities:       
    Net income$9,243  $680  $17,475  $2,954 
    Adjustments to reconcile net income to net cash       
    provided by operating activities:       
     Stock based compensation expense 979   745   2,555   1,971 
     Depreciation and amortization 372   406   1,121   1,118 
     Losses on investments in non-affiliates, net 69   11   24   35 
     Deferred income taxes (529)  (532)  (2,411)  (1,517)
     Acquisition termination cost -   -   -   1,353 
     Other (66)  (45)  (170)  (27)
    Changes in operating assets and liabilities, net of acquisitions:       
     Accounts receivable (1,243)  410   (4,482)  (258)
     Inventories (457)  (563)  405   (1,848)
     Prepaid expenses and other assets 254   247   (337)  (1,307)
     Accounts payable 461   (917)  1,250   (358)
     Accrued liabilities and other current liabilities (1,722)  (92)  953   1,175 
     Other long-term liabilities (28)  42   208   102 
    Net cash provided by operating activities 7,333   392   16,591   3,393 
    Cash flows from investing activities:       
     Proceeds from maturities of marketable securities 2,891   5,809   8,001   16,792 
     Proceeds from sales of marketable securities -   75   -   1,806 
     Purchases of marketable securities (5,345)  (2,188)  (10,688)  (9,764)
     Purchase related to property and equipment and intangible assets (278)  (530)  (815)  (1,324)
     Acquisitions, net of cash acquired -   -   (83)  (49)
     Investments in non-affiliates and other, net (437)  (18)  (872)  (83)
    Net cash provided by (used in) investing activities (3,169)  3,148   (4,457)  7,378 
    Cash flows from financing activities:       
     Proceeds related to employee stock plans 156   143   403   349 
     Payments related to repurchases of common stock (3,806)  (3,485)  (6,874)  (8,826)
     Repayment of debt -   -   (1,250)  - 
     Payments related to tax on restricted stock units (764)  (294)  (1,942)  (1,131)
     Dividends paid (99)  (100)  (296)  (300)
     Principal payments on property and equipment and intangible assets (13)  (18)  (44)  (54)
     Other (1)  1   (1)  1 
    Net cash used in financing activities (4,527)  (3,753)  (10,004)  (9,961)
    Change in cash, cash equivalents, and restricted cash (363)  (213)  2,130   810 
    Cash, cash equivalents, and restricted cash at beginning of period 5,882   3,013   3,389   1,990 
    Cash, cash equivalents, and restricted cash at end of period$ 5,519  $ 2,800  $ 5,519  $ 2,800 
              
    Supplemental disclosure of cash flow information:       
     Cash paid for income taxes, net$4,348  $264  $4,676  $1,372 
              


     NVIDIA CORPORATION
     RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
     (In millions, except per share data)
     (Unaudited)
               
        Three Months Ended  Nine Months Ended
        October 29, July 30, October 30, October 29, October 30,
         2023   2023   2022   2023   2022 
                 
     GAAP gross profit$13,400  $9,462  $3,177  $27,510  $11,523 
      GAAP gross margin 74.0%  70.1%  53.6%  70.9%  55.1%
      Acquisition-related and other costs (A) 119   119   120   358   335 
      Stock-based compensation expense (B) 38   31   32   96   108 
      IP-related costs 26   2   -   36   - 
     Non-GAAP gross profit$ 13,583  $ 9,614  $ 3,329  $ 28,000  $ 11,966 
      Non-GAAP gross margin 75.0%  71.2%  56.1%  72.1%  57.2%
                 
      GAAP operating expenses$2,983  $2,662  $2,576  $8,152  $8,555 
      Stock-based compensation expense (B) (941)  (811)  (713)  (2,459)  (1,863)
      Acquisition-related and other costs (A) (16)  (18)  (54)  (88)  (164)
      Acquisition termination cost -   -   -   -   (1,353)
      Other (C)  -   5   (16)  10   (25)
     Non-GAAP operating expenses$ 2,026  $ 1,838  $ 1,793  $ 5,615  $ 5,150 
                 
     GAAP operating income$10,417  $6,800  $601  $19,358  $2,968 
      Total impact of non-GAAP adjustments to operating income 1,140   976   935   3,027   3,848 
     Non-GAAP operating income$ 11,557  $ 7,776  $ 1,536  $ 22,385  $ 6,816 
                 
     GAAP other income (expense), net$105  $181  $12  $354  $(75)
      (Gains) losses from non-affiliated investments 69   (62)  11   23   36 
      Interest expense related to amortization of debt discount 1   1   1   3   3 
     Non-GAAP other income (expense), net$ 175  $ 120  $ 24  $ 380  $ (36)
                 
     GAAP net income$9,243  $6,188  $680  $17,475  $2,954 
      Total pre-tax impact of non-GAAP adjustments 1,210   915   947   3,053   3,887 
      Income tax impact of non-GAAP adjustments (D) (433)  (363)  (171)  (1,055)  (649)
     Non-GAAP net income $ 10,020  $ 6,740  $ 1,456  $ 19,473  $ 6,192 
                 
     Diluted net income per share         
      GAAP $3.71  $2.48  $0.27  $7.01  $1.17 
      Non-GAAP $4.02  $2.70  $0.58  $7.81  $2.46 
                 
     Weighted average shares used in diluted net income per share computation 2,494   2,499   2,499   2,494   2,517 
                 
     GAAP net cash provided by operating activities$7,333  $6,348  $392  $16,591  $3,393 
      Purchases related to property and equipment and intangible assets (278)  (289)  (530)  (815)  (1,324)
      Principal payments on property and equipment and intangible assets (13)  (11)  (18)  (44)  (54)
     Free cash flow $ 7,042  $ 6,048  $ (156) $ 15,732  $ 2,015 
                 
      
                 
     (A) Acquisition-related and other costs are comprised of amortization of intangible assets and transaction costs, and are included in the following line items:
        Three Months Ended Nine Months Ended
        October 29, July 30, October 30, October 29, October 30,
         2023   2023   2022   2023   2022 
      Cost of revenue$119  $119  $120  $358  $335 
      Research and development$12  $12  $10  $37  $29 
      Sales, general and administrative$4  $6  $44  $51  $135 
                 
     (B) Stock-based compensation consists of the following:   
        Three Months Ended Nine Months Ended
        October 29, July 30, October 30, October 29, October 30,
         2023   2023   2022   2023   2022 
      Cost of revenue$38  $31  $32  $96  $108 
      Research and development$701  $600  $530  $1,826  $1,365 
      Sales, general and administrative$240  $211  $183  $633  $498 
                 
     (C) Other consists of costs related to Russia branch office closure, assets held for sale related adjustments, legal settlement costs, and contributions.
                 
     (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
       
     
      Q4
    FY2024
    Outlook
      ($ in millions)
       
    GAAP gross margin 74.5%
     Impact of stock-based compensation expense, acquisition-related costs, and other costs 1.0%
    Non-GAAP gross margin 75.5%
       
    GAAP operating expenses$3,165 
     Stock-based compensation expense, acquisition-related costs, and other costs (965)
    Non-GAAP operating expenses$ 2,200 
       

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


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