NVIDIA (NASDAQ: NVDA) today reported record revenue for the third
quarter ended October 25, 2020, of $4.73 billion, up 57 percent
from $3.01 billion a year earlier, and up 22 percent from $3.87
billion in the previous quarter.
GAAP earnings per diluted share for the quarter were $2.12, up
46 percent from $1.45 a year ago, and up 114 percent from $0.99 in
the previous quarter. Non-GAAP earnings per diluted share were
$2.91, up 63 percent from $1.78 a year earlier, and up 33 percent
from $2.18 in the previous quarter.
“NVIDIA is firing on all cylinders, achieving record revenues in
Gaming, Data Center and overall,” said Jensen Huang, founder and
CEO of NVIDIA. “The new NVIDIA GeForce RTX GPU provides our
largest-ever generational leap and demand is overwhelming. NVIDIA
RTX has made ray tracing the new standard in gaming.
“We are continuing to raise the bar with NVIDIA AI. Our A100
compute platform is ramping fast, with the top cloud companies
deploying it globally. We swept the industry AI inference
benchmark, and our customers are moving some of the world’s most
popular AI services into production, powered by NVIDIA
technology.
“We announced the NVIDIA DPU programmable data center processor,
and the planned acquisition of Arm, creator of the world’s most
popular CPU. We are positioning NVIDIA for the age of AI, when
computing will extend from the cloud to trillions of devices.”
NVIDIA paid $99 million in quarterly cash dividends in the third
quarter. It will pay its next quarterly cash dividend of $0.16 per
share on December 29, 2020, to all shareholders of record on
December 4, 2020.
Q3 Fiscal
2021 Summary
GAAP |
($ in millions, exceptearnings per share) |
Q3
FY21 |
Q2
FY21 |
Q3 FY20 |
Q/Q |
Y/Y |
Revenue |
$4,726 |
|
$3,866 |
|
$3,014 |
|
Up 22% |
Up 57% |
Gross margin |
|
62.6 |
% |
|
58.8 |
% |
|
63.6 |
% |
Up 380 bps |
Down 100 bps |
Operating expenses |
$1,562 |
|
$1,624 |
|
$989 |
|
Down 4% |
Up 58% |
Operating income |
$1,398 |
|
$651 |
|
$927 |
|
Up 115% |
Up 51% |
Net income |
$1,336 |
|
$622 |
|
$899 |
|
Up 115% |
Up 49% |
Diluted earnings per share |
$2.12 |
|
$0.99 |
|
$1.45 |
|
Up 114% |
Up 46% |
Non-GAAP |
($ in millions, exceptearnings per share) |
Q3 FY21 |
Q2 FY21 |
Q3
FY20 |
Q/Q |
Y/Y |
Revenue |
$4,726 |
|
$3,866 |
|
$3,014 |
|
Up 22% |
Up 57% |
Gross margin |
|
65.5 |
% |
|
66.0 |
% |
|
64.1 |
% |
Down 50 bps |
Up 140 bps |
Operating expenses |
$1,101 |
|
$1,035 |
|
$774 |
|
Up 6% |
Up 42% |
Operating income |
$1,993 |
|
$1,516 |
|
$1,156 |
|
Up 31% |
Up 72% |
Net income |
$1,834 |
|
$1,366 |
|
$1,103 |
|
Up 34% |
Up 66% |
Diluted earnings per share |
$2.91 |
|
$2.18 |
|
$1.78 |
|
Up 33% |
Up 63% |
NVIDIA’s outlook for the fourth quarter of fiscal 2021 is as
follows:
- Revenue is expected
to be $4.80 billion, plus or minus 2 percent.
- GAAP and non-GAAP gross margins are
expected to be 62.8 percent and 65.5 percent, respectively, plus or
minus 50 basis points.
- GAAP and non-GAAP operating expenses
are expected to be approximately $1.64 billion and $1.18 billion,
respectively.
- GAAP and non-GAAP other income and
expense are both expected to be an expense of approximately $55
million.
- GAAP and non-GAAP tax rates are both
expected to be 8 percent, plus or minus 1 percent, excluding any
discrete items. GAAP discrete items include excess tax benefits or
deficiencies related to stock-based compensation, which are
expected to generate variability on a quarter-by-quarter
basis.
Highlights
During the third quarter, NVIDIA announced a definitive
agreement to acquire Arm Limited from SoftBank Capital Limited and
SVF Holdco (UK) Limited in a transaction valued at $40 billion. The
transaction will combine NVIDIA’s leading AI computing platform
with Arm’s vast ecosystem to create the premier computing company
for the age of AI. The transaction ― which is expected to be
immediately accretive to NVIDIA’s non-GAAP gross margin and
non-GAAP earnings per share ― is expected to close in the first
quarter of calendar 2022.
NVIDIA also announced plans to build a world-class AI lab in
Cambridge, England ― including a powerful AI supercomputer based on
NVIDIA and Arm technology ― and provide research fellowships and
partnerships with local institutions and AI training courses.
Separately, it plans to build Cambridge-1, the U.K.’s most powerful
AI supercomputer, based on an NVIDIA DGX SuperPOD™ system and
designed for AI research in healthcare and drug discovery.
NVIDIA also achieved progress since its previous earnings
announcement in these areas:
Data Center
- Third-quarter revenue was a record $1.90 billion, up 8 percent
from the previous quarter and up 162 percent from a year
earlier.
- Shared news that Amazon Web Services and Oracle Cloud
Infrastructure announced general availability of cloud computing
instances based on the NVIDIA A100™ GPU, following Google Cloud
Platform and Microsoft Azure.
- Announced the NVIDIA DGX SuperPOD Solution for Enterprise ― the
world’s first turnkey AI infrastructure ― which is expected to be
installed by yearend in Korea, the U.K., India and Sweden.
- Announced that five supercomputers backed by EuroHPC ―
including “Leonardo,” the world’s fastest AI supercomputer built by
the Italian inter-university consortium CINECA ― will use NVIDIA’s
data center accelerators or networking.
- Introduced the NVIDIA BlueField-2 DPU (data processing unit) ―
supported by NVIDIA DOCA™, a novel
data-center-infrastructure-on-a-chip architecture ― to bring
breakthrough networking, storage and security performance to every
data center.
- Announced a broad partnership with VMware to create an
end-to-end enterprise platform for AI and a new architecture for
data center, cloud and edge using NVIDIA DPUs, benefiting
300,000-plus VMware customers.
- Unveiled NVIDIA Maxine™, an AI video-streaming platform that
enhances streaming quality and offers such AI-powered features as
gaze correction, super-resolution, noise cancellation and face
relighting.
- Introduced the NVIDIA RTX™ A6000 and NVIDIA A40™ GPUs, built on
the NVIDIA Ampere architecture and featuring new RT Cores, Tensor
Cores and CUDA® cores.
- Extended its lead on MLPerf performance benchmarks for
inference, winning every test across all six application areas for
data center and edge computing systems.
- Announced a partnership with GSK to integrate computing
platforms for imaging, genomics and AI into the drug and vaccine
discovery process.
- Introduced at SC20, three powerful advances in AI technology:
the NVIDIA® A100 80GB GPU, powering the NVIDIA HGX™ AI
supercomputing platform with twice the memory of its predecessor;
the NVIDIA DGX Station™ A100, the world’s only petascale workgroup
server, for machine learning and data science workloads; and the
next generation of NVIDIA® Mellanox® InfiniBand, for the fastest
networking performance.
Gaming
- Third-quarter revenue was a record $2.27 billion, up 37 percent
from the previous quarter and up 37 percent from a year
earlier.
- Unveiled the GeForce RTX® 30 Series GPUs, powered by the NVIDIA
Ampere architecture and the second generation of RTX, with up to 2x
the performance of the previous Turing-based generation.
- Announced that Fortnite ― the world’s most popular video game ―
will support NVIDIA RTX real-time ray tracing and DLSS AI
super-resolution, joining more than two dozen other titles
including Cyberpunk 2077, Call of Duty: Black Ops and Watch Dogs:
Legion.
- Introduced NVIDIA Reflex™, a suite of technologies that
improves reaction time in games by reducing system latency, which
is available in Fortnite, Valorant, Call of Duty: Warzone and Apex
Legends, among other titles.
- Unveiled NVIDIA Broadcast™, a plugin that enhances microphone,
speaker and webcam quality with RTX-accelerated AI effects.
Professional Visualization
- Third-quarter revenue was $236 million, up 16 percent from the
previous quarter and down 27 percent from a year earlier.
- Brought to open beta NVIDIA Omniverse™, the world’s first
NVIDIA RTX-based 3D simulation and collaboration platform.
- Announced NVIDIA Omniverse Machinima™, enabling creators with
video game assets animated by NVIDIA AI technologies.
- Collaborated with Adobe to bring GPU-accelerated neural filters
to Adobe Photoshop AI-powered tools.
Automotive
- Third-quarter revenue was $125 million, up 13 percent from the
previous quarter and down 23 percent from a year earlier.
- Announced with Mercedes-Benz that NVIDIA is powering the
next-generation MBUX AI cockpit system, to be featured first in the
new S-class sedan, with such features as an augmented reality
heads-up display, AI voice assistant and interactive graphics.
- Announced with Hyundai Motor Group that the Korean automaker’s
entire lineup of Hyundai, Kia and Genesis models will come standard
with NVIDIA DRIVE™ in-vehicle infotainment systems, starting in
2022.
- Announced that China’s Li Auto will develop its next generation
of electric vehicles using NVIDIA DRIVE AGX Orin™, a
software-defined platform for autonomous vehicles.
CFO CommentaryCommentary 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 2021 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
year 2021.
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 income
tax expense, non-GAAP net income, non-GAAP net income, or earnings,
per diluted share, and free cash flow. In order 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 stock-based
compensation expense, acquisition-related and other costs, legal
settlement costs, 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 purchases related to 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.
NVIDIA CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(In millions, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
October 25, |
|
October 27, |
|
October 25, |
|
October 27, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
4,726 |
|
|
$ |
3,014 |
|
|
$ |
11,672 |
|
|
$ |
7,813 |
|
Cost of revenue |
|
1,766 |
|
|
|
1,098 |
|
|
|
4,432 |
|
|
|
3,060 |
|
Gross profit |
|
2,960 |
|
|
|
1,916 |
|
|
|
7,240 |
|
|
|
4,753 |
|
Operating expenses |
|
|
|
|
|
|
|
Research and development |
|
1,047 |
|
|
|
712 |
|
|
|
2,778 |
|
|
|
2,091 |
|
Sales, general and administrative |
|
515 |
|
|
|
277 |
|
|
|
1,437 |
|
|
|
806 |
|
Total operating expenses |
|
1,562 |
|
|
|
989 |
|
|
|
4,215 |
|
|
|
2,897 |
|
Income from operations |
|
1,398 |
|
|
|
927 |
|
|
|
3,025 |
|
|
|
1,856 |
|
Interest income |
|
7 |
|
|
|
45 |
|
|
|
50 |
|
|
|
137 |
|
Interest expense |
|
(53 |
) |
|
|
(13 |
) |
|
|
(131 |
) |
|
|
(39 |
) |
Other, net |
|
(4 |
) |
|
|
- |
|
|
|
(5 |
) |
|
|
- |
|
Other income (expense), net |
|
(50 |
) |
|
|
32 |
|
|
|
(86 |
) |
|
|
98 |
|
Income before income tax |
|
1,348 |
|
|
|
959 |
|
|
|
2,939 |
|
|
|
1,954 |
|
Income tax expense |
|
12 |
|
|
|
60 |
|
|
|
64 |
|
|
|
109 |
|
Net income |
$ |
1,336 |
|
|
$ |
899 |
|
|
$ |
2,875 |
|
|
$ |
1,845 |
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
$ |
2.16 |
|
|
$ |
1.47 |
|
|
$ |
4.67 |
|
|
$ |
3.03 |
|
Diluted |
$ |
2.12 |
|
|
$ |
1.45 |
|
|
$ |
4.59 |
|
|
$ |
2.99 |
|
|
|
|
|
|
|
|
|
Weighted average shares used
in per share computation: |
|
|
|
|
|
|
|
Basic |
|
618 |
|
|
|
610 |
|
|
|
616 |
|
|
|
609 |
|
Diluted |
|
630 |
|
|
|
618 |
|
|
|
626 |
|
|
|
617 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NVIDIA CORPORATION |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
October 25, |
|
January 26, |
|
2020 |
|
2020 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash, cash equivalents and marketable securities |
$ |
10,139 |
|
|
$ |
10,897 |
|
Accounts receivable, net |
|
2,546 |
|
|
|
1,657 |
|
Inventories |
|
1,495 |
|
|
|
979 |
|
Prepaid expenses and other current assets |
|
213 |
|
|
|
157 |
|
Total current assets |
|
14,393 |
|
|
|
13,690 |
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
2,059 |
|
|
|
1,674 |
|
Operating lease assets |
|
681 |
|
|
|
618 |
|
Goodwill |
|
4,193 |
|
|
|
618 |
|
Intangible assets, net |
|
2,861 |
|
|
|
49 |
|
Deferred income tax
assets |
|
666 |
|
|
|
548 |
|
Other assets |
|
2,028 |
|
|
|
118 |
|
Total assets |
$ |
26,881 |
|
|
$ |
17,315 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ |
1,097 |
|
|
$ |
687 |
|
Accrued and other current liabilities |
|
1,574 |
|
|
|
1,097 |
|
Short-term debt |
|
998 |
|
|
|
- |
|
Total current liabilities |
|
3,669 |
|
|
|
1,784 |
|
|
|
|
|
|
Long-term debt |
|
5,963 |
|
|
|
1,991 |
|
Long-term operating lease
liabilities |
|
604 |
|
|
|
561 |
|
Other long-term
liabilities |
|
1,311 |
|
|
|
775 |
|
Total liabilities |
|
11,547 |
|
|
|
5,111 |
|
|
|
|
|
|
Shareholders' equity |
|
15,334 |
|
|
|
12,204 |
|
Total liabilities and shareholders' equity |
$ |
26,881 |
|
|
$ |
17,315 |
|
|
|
|
|
|
|
|
|
NVIDIA CORPORATION |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In millions) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
October 25, |
|
October 27, |
|
October 25, |
|
October 27, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income |
$ |
1,336 |
|
|
$ |
899 |
|
|
$ |
2,875 |
|
|
$ |
1,845 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
299 |
|
|
|
92 |
|
|
|
810 |
|
|
|
275 |
|
Stock-based compensation expense |
|
383 |
|
|
|
223 |
|
|
|
981 |
|
|
|
624 |
|
Deferred income taxes |
|
(53 |
) |
|
|
22 |
|
|
|
(117 |
) |
|
|
(5 |
) |
Other |
|
2 |
|
|
|
3 |
|
|
|
(2 |
) |
|
|
5 |
|
Changes in operating assets
and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
Accounts receivable |
|
(463 |
) |
|
|
106 |
|
|
|
(667 |
) |
|
|
(32 |
) |
Inventories |
|
(93 |
) |
|
|
152 |
|
|
|
(190 |
) |
|
|
531 |
|
Prepaid expenses and other assets |
|
(443 |
) |
|
|
19 |
|
|
|
(409 |
) |
|
|
55 |
|
Accounts payable |
|
225 |
|
|
|
135 |
|
|
|
289 |
|
|
|
91 |
|
Accrued and other current liabilities |
|
31 |
|
|
|
(23 |
) |
|
|
111 |
|
|
|
(103 |
) |
Other long-term liabilities |
|
55 |
|
|
|
12 |
|
|
|
74 |
|
|
|
10 |
|
Net cash provided by operating
activities |
|
1,279 |
|
|
|
1,640 |
|
|
|
3,755 |
|
|
|
3,296 |
|
Cash flows from investing
activities: |
|
|
|
|
|
|
|
Proceeds from maturities of marketable securities |
|
4,133 |
|
|
|
1,153 |
|
|
|
5,165 |
|
|
|
4,744 |
|
Proceeds from sales of marketable securities |
|
243 |
|
|
|
211 |
|
|
|
502 |
|
|
|
3,363 |
|
Purchases of marketable securities |
|
(4,554 |
) |
|
|
- |
|
|
|
(12,840 |
) |
|
|
(1,461 |
) |
Acquisitions, net of cash acquired |
|
(1,353 |
) |
|
|
- |
|
|
|
(8,524 |
) |
|
|
- |
|
Purchases related to property and equipment and intangible
assets |
|
(473 |
) |
|
|
(104 |
) |
|
|
(845 |
) |
|
|
(344 |
) |
Investments and other, net |
|
3 |
|
|
|
(3 |
) |
|
|
(4 |
) |
|
|
(6 |
) |
Net cash provided by (used in)
investing activities |
|
(2,001 |
) |
|
|
1,257 |
|
|
|
(16,546 |
) |
|
|
6,296 |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
Proceeds related to employee stock plans |
|
96 |
|
|
|
63 |
|
|
|
190 |
|
|
|
146 |
|
Payments related to tax on restricted stock units |
|
(298 |
) |
|
|
(203 |
) |
|
|
(716 |
) |
|
|
(463 |
) |
Dividends paid |
|
(99 |
) |
|
|
(97 |
) |
|
|
(296 |
) |
|
|
(292 |
) |
Issuance of debt, net of issuance costs |
|
- |
|
|
|
- |
|
|
|
4,971 |
|
|
|
- |
|
Other |
|
- |
|
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
Net cash provided by (used in)
financing activities |
|
(301 |
) |
|
|
(237 |
) |
|
|
4,146 |
|
|
|
(609 |
) |
Change in cash and cash
equivalents |
|
(1,023 |
) |
|
|
2,660 |
|
|
|
(8,645 |
) |
|
|
8,983 |
|
Cash and cash equivalents at
beginning of period |
|
3,274 |
|
|
|
7,105 |
|
|
|
10,896 |
|
|
|
782 |
|
Cash and cash equivalents at
end of period |
$ |
2,251 |
|
|
$ |
9,765 |
|
|
$ |
2,251 |
|
|
$ |
9,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NVIDIA CORPORATION |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES |
(In millions, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
October 25, |
|
July 26, |
|
October 27, |
|
October 25, |
|
October 27, |
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit |
$ |
2,960 |
|
|
$ |
2,275 |
|
|
$ |
1,916 |
|
|
$ |
7,240 |
|
|
$ |
4,753 |
|
GAAP gross margin |
|
62.6 |
% |
|
|
58.8 |
% |
|
|
63.6 |
% |
|
|
62.0 |
% |
|
|
60.8 |
% |
Acquisition-related and other costs (B) |
|
86 |
|
|
|
245 |
|
|
|
- |
|
|
|
331 |
|
|
|
- |
|
Stock-based compensation expense (A) |
|
28 |
|
|
|
14 |
|
|
|
15 |
|
|
|
62 |
|
|
|
27 |
|
Legal settlement costs |
|
21 |
|
|
|
17 |
|
|
|
- |
|
|
|
38 |
|
|
|
11 |
|
Non-GAAP gross profit |
$ |
3,095 |
|
|
$ |
2,551 |
|
|
$ |
1,931 |
|
|
$ |
7,671 |
|
|
$ |
4,791 |
|
Non-GAAP gross margin |
|
65.5 |
% |
|
|
66.0 |
% |
|
|
64.1 |
% |
|
|
65.7 |
% |
|
|
61.3 |
% |
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses |
$ |
1,562 |
|
|
$ |
1,624 |
|
|
$ |
989 |
|
|
$ |
4,215 |
|
|
$ |
2,897 |
|
Stock-based compensation expense (A) |
|
(355 |
) |
|
|
(360 |
) |
|
|
(208 |
) |
|
|
(919 |
) |
|
|
(597 |
) |
Acquisition-related and other costs (B) |
|
(106 |
) |
|
|
(229 |
) |
|
|
(7 |
) |
|
|
(338 |
) |
|
|
(22 |
) |
Legal settlement costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
Non-GAAP operating
expenses |
$ |
1,101 |
|
|
$ |
1,035 |
|
|
$ |
774 |
|
|
$ |
2,958 |
|
|
$ |
2,276 |
|
|
|
|
|
|
|
|
|
|
|
GAAP income from
operations |
$ |
1,398 |
|
|
$ |
651 |
|
|
$ |
927 |
|
|
$ |
3,025 |
|
|
$ |
1,856 |
|
Total impact of non-GAAP adjustments to income from operations |
|
595 |
|
|
|
865 |
|
|
|
229 |
|
|
|
1,689 |
|
|
|
659 |
|
Non-GAAP income from
operations |
$ |
1,993 |
|
|
$ |
1,516 |
|
|
$ |
1,156 |
|
|
$ |
4,714 |
|
|
$ |
2,515 |
|
|
|
|
|
|
|
|
|
|
|
GAAP other income (expense),
net |
$ |
(50 |
) |
|
$ |
(42 |
) |
|
$ |
32 |
|
|
$ |
(86 |
) |
|
$ |
98 |
|
Losses from non-affiliated investments |
|
4 |
|
|
|
2 |
|
|
|
- |
|
|
|
9 |
|
|
|
1 |
|
Interest expense related to amortization of debt discount |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Non-GAAP other income
(expense), net |
$ |
(45 |
) |
|
$ |
(39 |
) |
|
$ |
33 |
|
|
$ |
(76 |
) |
|
$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income |
$ |
1,336 |
|
|
$ |
622 |
|
|
$ |
899 |
|
|
$ |
2,875 |
|
|
$ |
1,845 |
|
Total pre-tax impact of non-GAAP adjustments |
|
600 |
|
|
|
868 |
|
|
|
230 |
|
|
|
1,699 |
|
|
|
660 |
|
Income tax impact of non-GAAP adjustments (C) |
|
(102 |
) |
|
|
(124 |
) |
|
|
(26 |
) |
|
|
(255 |
) |
|
|
(97 |
) |
Non-GAAP net income |
$ |
1,834 |
|
|
$ |
1,366 |
|
|
$ |
1,103 |
|
|
$ |
4,319 |
|
|
$ |
2,408 |
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share |
|
|
|
|
|
|
|
|
|
GAAP |
$ |
2.12 |
|
|
$ |
0.99 |
|
|
$ |
1.45 |
|
|
$ |
4.59 |
|
|
$ |
2.99 |
|
Non-GAAP |
$ |
2.91 |
|
|
$ |
2.18 |
|
|
$ |
1.78 |
|
|
$ |
6.90 |
|
|
$ |
3.90 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used
in diluted net income per share computation |
|
630 |
|
|
|
626 |
|
|
|
618 |
|
|
|
626 |
|
|
|
617 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net cash provided by
operating activities |
$ |
1,279 |
|
|
$ |
1,566 |
|
|
$ |
1,640 |
|
|
$ |
3,755 |
|
|
$ |
3,296 |
|
Purchases related to property and equipment and intangible
assets |
|
(473 |
) |
|
|
(217 |
) |
|
|
(104 |
) |
|
|
(845 |
) |
|
|
(344 |
) |
Free cash flow |
$ |
806 |
|
|
$ |
1,349 |
|
|
$ |
1,536 |
|
|
$ |
2,910 |
|
|
$ |
2,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A) Stock-based compensation consists of the following: |
Three Months Ended |
|
Nine Months Ended |
|
October 25, |
|
July 26, |
|
October 27, |
|
October 25, |
|
October 27, |
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Cost of revenue |
$ |
28 |
|
|
$ |
14 |
|
|
$ |
15 |
|
|
$ |
62 |
|
|
$ |
27 |
|
Research and development |
$ |
232 |
|
|
$ |
228 |
|
|
$ |
141 |
|
|
$ |
594 |
|
|
$ |
400 |
|
Sales, general and administrative |
$ |
123 |
|
|
$ |
132 |
|
|
$ |
67 |
|
|
$ |
325 |
|
|
$ |
197 |
|
|
|
|
|
|
|
|
|
|
|
(B) Acquisition-related and other costs primarily include
amortization of intangible assets, inventory step-up, transaction
costs, and certain compensation charges presented as follows: |
|
Three Months Ended |
|
Nine Months Ended |
|
October 25, |
|
July 26, |
|
October 27, |
|
October 25, |
|
October 27, |
|
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
Cost of revenue |
$ |
86 |
|
|
$ |
245 |
|
|
$ |
- |
|
|
$ |
331 |
|
|
$ |
- |
|
Research and development |
$ |
2 |
|
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
7 |
|
|
$ |
4 |
|
Sales, general and administrative |
$ |
104 |
|
|
$ |
226 |
|
|
$ |
6 |
|
|
$ |
331 |
|
|
$ |
18 |
|
|
|
|
|
|
|
|
|
|
|
(C) 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 FY2021 Outlook |
|
($ in millions) |
|
|
GAAP gross margin |
|
62.8 |
% |
Impact of stock-based compensation expense, acquisition-related
costs, and other costs |
|
2.7 |
% |
Non-GAAP
gross margin |
|
65.5 |
% |
|
|
GAAP
operating expenses |
$ |
1,640 |
|
Stock-based compensation expense, acquisition-related costs, and
other costs |
|
(460 |
) |
Non-GAAP
operating expenses |
$ |
1,180 |
|
|
|
|
|
About
NVIDIA
NVIDIA’s (NASDAQ: NVDA) invention of the GPU in 1999 sparked the
growth of the PC gaming market, redefined modern computer graphics
and revolutionized parallel computing. More recently, GPU deep
learning ignited modern AI ― the next era of computing ― with the
GPU acting as the brain of computers, robots and self-driving cars
that can perceive and understand the world. 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: NVIDIA’s next quarterly cash
dividend; NVIDIA’s financial outlook for the fourth quarter of
fiscal 2021; NVIDIA’s expected tax rates for the fourth quarter of
fiscal 2021; NVIDIA’s expectation to generate variability from
excess tax benefits or deficiencies; the benefits of the Arm
acquisition, including the combination creating the world’s premier
computing company; the expectation that the Arm transaction will be
immediately accretive; when the Arm transaction is expected to
close; NVIDIA’s plan to build an AI lab in Cambridge and provide
fellowships, partnerships and AI training; NVIDIA’s plan to build
the Cambridge-1 supercomputer; the benefits, performance, abilities
and impact of our products and technologies, including the
BlueField DPUs, NVIDIA Maxine, GeForce RTX 30 Series GPUs, NVIDIA
Omniverse Machinima, NVIDIA A100 80GB GPU, NVIDIA DGX Station A100,
NVIDIA Ampere architecture and NVIDIA Mellanox InfiniBand; our
partnership with VMware creating a platform and architecture for
data center and benefiting VMware customers; the expected locations
and timing for installation of the NVIDIA DGX SuperPOD Solution for
Enterprise; our partnership with GSK; the plan for CINECA to use
NVIDIA technology to build Leonardo and the other supercomputers
being built planning to use NVIDIA technology; the games supporting
real-time ray tracing and AI-powered NVIDIA DLSS; the abilities of
NVIDIA Reflex and its availability; the partnership with
Mercedes-Benz to power the new MBUX AI cockpit system; NVIDIA DRIVE
coming standard in Hyundai Motor Group’s lineup of cars and the
timing for the launch; Li Auto developing its next-generation
vehicles using NVIDIA DRIVE AGX Orin; NVIDIA firing on all
cylinders; NVIDIA GeForce RTX GPUs providing the largest ever
generational leap and demand being overwhelming; raising the bar
with NVIDIA AI; our A100 compute platform ramping and deploying
globally; our customers moving AI services into production; the
acquisition of Arm; and NVIDIA’s positioning for the age of AI,
when computing will extend from the cloud to trillions of devices
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.
© 2020 NVIDIA Corporation. All rights reserved. NVIDIA, the
NVIDIA logo, CUDA, GeForce RTX, Mellanox, NVIDIA A40, NVIDIA AGX,
NVIDIA A100, NVIDIA Broadcast, NVIDIA DGX A100, NVIDIA DGX Station,
NVIDIA DGX SuperPOD, NVIDIA DOCA, NVIDIA DRIVE, NVIDIA DRIVE AGX
Orin, NVIDIA HGX, NVIDIA Maxine, NVIDIA Omniverse, NVIDIA Omniverse
Machinima, NVIDIA Reflex, 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.
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