NVIDIA Announces Financial Results for Fourth Quarter and


  • Record quarterly revenue of $7.64 billion, up 53 percent from a year earlier
  • Record fiscal-year revenue of $26.91 billion, up 61 percent
  • Record quarterly and fiscal-year revenue for Gaming, Data Center and Professional Visualization

SANTA CLARA, Calif., Feb. 16, 2022 (GLOBE NEWSWIRE) — NVIDIA (NASDAQ: NVDA) today reported record revenue for the fourth quarter ended January 30, 2022, of $7.64 billion, up 53 percent from a year ago and up 8 percent from the previous quarter. Gaming, Data Center and Professional Visualization market platforms each achieved record revenue for the quarter and year.

GAAP earnings per diluted share for the quarter were a record $1.18, up 103 percent from a year ago and up 22 percent from the previous quarter. Non-GAAP earnings per diluted share were $1.32, up 69 percent from a year ago and up 13 percent from the previous quarter.

For fiscal 2022, revenue was a record $26.91 billion, up 61 percent from $16.68 billion a year ago. GAAP earnings per diluted share were a record $3.85, up 123 percent from $1.73 a year ago. Non-GAAP earnings per diluted share were $4.44, up 78 percent from $2.50 a year ago.

“We are seeing exceptional demand for NVIDIA computing platforms,” said Jensen Huang, founder and CEO of NVIDIA. “NVIDIA is propelling advances in AI, digital biology, climate sciences, gaming, creative design, autonomous vehicles and robotics – some of today’s most impactful fields.

“We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with NVIDIA AI, NVIDIA Omniverse and NVIDIA DRIVE. GTC is coming. We will announce many new products, applications and partners for NVIDIA computing,” he said.

NVIDIA paid quarterly cash dividends of $100 million in the fourth quarter and $399 million in fiscal 2022. It will pay its next quarterly cash dividend of $0.04 per share on March 24, 2022, to all shareholders of record on March 3, 2022.

Q4 Fiscal 2022 Summary

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

   

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

*All per share amounts presented herein have been adjusted to reflect the four-for-one stock split, which was effective July 2021.

Fiscal 2022 Summary

GAAP
($ in millions, except earnings per share) FY22 FY21 Y/Y
Revenue $26,914   $16,675   Up 61%
Gross margin   64.9 %   62.3 % Up 260 bps
Operating expenses $7,434   $5,864   Up 27%
Operating income $10,041   $4,532   Up 122%
Net income $9,752   $4,332   Up 125%
Diluted earnings per share* $3.85   $1.73   Up 123%
Non-GAAP
($ in millions, except earnings per share) FY22 FY21 Y/Y
Revenue $26,914   $16,675   Up 61%
Gross margin   66.8 %   65.6 % Up 120 bps
Operating expenses $5,279   $4,144   Up 27%
Operating income $12,690   $6,803   Up 87%
Net income $11,259   $6,277   Up 79%
Diluted earnings per share* $4.44   $2.50   Up 78%

*All per share amounts presented herein have been adjusted to reflect the four-for-one stock split, which was effective July 2021.

Termination of the Arm Share Purchase Agreement

On February 8, 2022, NVIDIA and SoftBank Group Corp. (SoftBank) announced the termination of the Share Purchase Agreement whereby NVIDIA would have acquired Arm Limited from SoftBank. The parties agreed to terminate because of significant regulatory challenges preventing the consummation of the transaction. NVIDIA intends to record in operating expenses a $1.36 billion charge (the Arm Write-off) in the first quarter of fiscal 2023 reflecting the write-off of the prepayment provided at signing in September 2020. 

Outlook

NVIDIA’s outlook for the first quarter of fiscal 2023 is as follows:

  • Revenue is expected to be $8.10 billion, plus or minus 2 percent.
  • GAAP and non-GAAP gross margins are expected to be 65.2 percent and 67.0 percent, respectively, plus or minus 50 basis points.
  • GAAP operating expenses are expected to be $3.55 billion, including the Arm Write-off of $1.36 billion. Non-GAAP operating expenses are expected to be $1.60 billion.
  • GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $55 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 11 percent and 13 percent, respectively, plus or minus 1 percent, excluding any discrete items.

Highlights

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

Gaming

  • Fourth-quarter revenue was a record $3.42 billion, up 37 percent from a year ago and up 6 percent from the previous quarter. Fiscal-year revenue rose 61 percent to a record $12.46 billion.
  • Launched the GeForce RTX® 3050 desktop GPU, bringing RTX and the performance and efficiency of NVIDIA Ampere architecture to more gamers, starting at $249 MSRP.
  • Launched GeForce RTX 3080 Ti and RTX 3070 Ti laptop GPUs, delivering new levels of performance to laptops for gamers and creators.
  • Announced over 160 gaming and Studio GeForce®-based laptop designs by leading manufacturers.
  • Announced over 30 new RTX games and titles shipped in the quarter – including COD: Vanguard, Horizon Zero Dawn, God of War, Icarus and Rainbow Six Extraction.
  • Integrated NVIDIA Reflex technology for low-latency gaming in more AAA games – including Call of Duty: Vanguard, God of War and Rainbow Six Extraction.
  • Added over 65 games to the GeForce NOW library, bringing the total to over 1,200, and announced collaborations with AT&T and Samsung to offer GeForce Now to their customers.

Data Center

Professional Visualization

Automotive and Robotics

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 fourth quarter and fiscal 2022 financial results and current financial prospects today at 2:30 p.m. Pacific time (5:30 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 first quarter of fiscal 2023.

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 stock-based compensation expense, acquisition-related and other costs, IP-related costs, gains and losses from non-affiliated investments, interest expense related to amortization of debt discount, the associated tax impact of these items where applicable, domestication tax benefit, and foreign tax benefit. 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
NVIDIA’s (NASDAQ: NVDA) invention of the GPU in 1999 sparked the growth of the PC gaming market and has redefined modern computer graphics, high performance computing and artificial intelligence. The company’s pioneering work in accelerated computing and AI is reshaping trillion-dollar industries, such as transportation, healthcare and manufacturing, and fueling the growth of many others. More information at https://nvidianews.nvidia.com/.

For further information, contact:

Certain statements in this press release including, but not limited to, statements as to: the benefits, performance, impact, and abilities of our products and technologies, including NVIDIA AI, NVIDIA Omniverse, NVIDIA DRIVE, the GeForce RTX 3050 desktop GPU, GeForce RTX 3080 Ti and RTX 3070 Ti laptop GPUs, Studio GeForce, NVIDIA Reflex, GeForce NOW, NVIDIA DGX A100 systems, NVIDIA AI Enterprise 1.1, NVIDIA FLARE, NVIDIA Clara, NVIDIA Omniverse for Creators, Omniverse Universal Scene Description, NVIDIA GPU-accelerated software, NVIDIA DRIVE Orin, NVIDIA DRIVE Hyperion, and the Isaac Autonomous Mobile Robot platform; the momentum across our businesses; NVIDIA propelling advances in AI, digital biology, climate sciences, gaming, creative design, autonomous vehicles and robotics; our upcoming developer conference at GTC; our plans to announce many new products, applications, and partners for NVIDIA computing at GTC; our collaborations with AT&T and Samsung and our partnership with Jaguar Land Rover; NVIDIA’s next quarterly cash dividend; our intention to record a charge in connection with the termination of the Share Purchase Agreement related to Arm Limited; NVIDIA’s financial outlook for the first quarter of fiscal 2023; and NVIDIA’s expected tax rates for the first quarter of fiscal 2023 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.

© 2022 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, GeForce NOW, GeForce RTX, NVIDIA Clara, NVIDIA DGX, NVIDIA DRIVE, NVIDIA DRIVE Hyperion, NVIDIA DRIVE Orin, NVIDIA Isaac and NVIDIA Omniverse 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   Twelve Months Ended  
      January 30,   January 31,   January 30,   January 31,  
        2022       2021       2022       2021    
                     
Revenue $ 7,643     $ 5,003     $ 26,914     $ 16,675    
Cost of revenue   2,644       1,846       9,439       6,279    
Gross profit   4,999       3,157       17,475       10,396    
Operating expenses                
  Research and development   1,466       1,147       5,268       3,924    
  Sales, general and administrative   563       503       2,166       1,940    
    Total operating expenses   2,029       1,650       7,434       5,864    
Income from operations   2,970       1,507       10,041       4,532    
  Interest income   9       6       29       57    
  Interest expense   (61 )     (53 )     (236 )     (184 )  
  Other, net   (53 )     10       107       4    
    Other income (expense), net   (105 )     (37 )     (100 )     (123 )  
Income before income tax   2,865       1,470       9,941       4,409    
Income tax expense (benefit)   (138 )     13       189       77    
Net income $ 3,003     $ 1,457     $ 9,752     $ 4,332    
                     
Net income per share (A):                
  Basic $ 1.20     $ 0.59     $ 3.91     $ 1.76    
  Diluted $ 1.18     $ 0.58     $ 3.85     $ 1.73    
                     
Weighted average shares used in per share computation (A):              
  Basic   2,504       2,478       2,496       2,467    
  Diluted   2,545       2,524       2,535       2,510    
                     
(A) Reflects a four-for-one stock split on July 19, 2021.  
                     
NVIDIA CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In millions)  
(Unaudited)  
               
               
        January 30,   January 31,  
          2022     2021  
ASSETS          
               
Current assets:          
  Cash, cash equivalents and marketable securities   $ 21,208   $ 11,561  
  Accounts receivable, net     4,650     2,429  
  Inventories     2,605     1,826  
  Prepaid expenses and other current assets     366     239  
    Total current assets     28,829     16,055  
               
Property and equipment, net     2,778     2,149  
Operating lease assets     829     707  
Goodwill     4,349     4,193  
Intangible assets, net     2,339     2,737  
Deferred income tax assets     1,222     806  
Other assets     3,841     2,144  
    Total assets   $ 44,187   $ 28,791  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY  
               
Current liabilities:          
  Accounts payable   $ 1,783   $ 1,149  
  Accrued and other current liabilities     2,552     1,777  
  Short-term debt         999  
    Total current liabilities     4,335     3,925  
               
Long-term debt     10,946     5,964  
Long-term operating lease liabilities     741     634  
Other long-term liabilities     1,553     1,375  
    Total liabilities     17,575     11,898  
               
Shareholders’ equity     26,612     16,893  
    Total liabilities and shareholders’ equity   $ 44,187   $ 28,791  
               
NVIDIA CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(In millions)  
(Unaudited)  
                     
                     
      Three Months Ended   Twelve Months Ended  
      January 30,   January 31,   January 30,   January 31,  
        2022       2021       2022       2021    
                     
Cash flows from operating activities:                
Net income $ 3,003     $ 1,457     $ 9,752     $ 4,332    
Adjustments to reconcile net income to net cash                
provided by operating activities:                
  Stock-based compensation expense   551       417       2,004       1,397    
  Depreciation and amortization   309       287       1,174       1,098    
  Deferred income taxes   (225 )     (164 )     (406 )     (282 )  
  (Gains) losses on investments in non affiliates, net   53       (9 )     (100 )        
  Other   21       (8 )     47       (20 )  
Changes in operating assets and liabilities, net of acquisitions:                
  Accounts receivable   (692 )     117       (2,215 )     (550 )  
  Inventories   (374 )     (334 )     (774 )     (524 )  
  Prepaid expenses and other assets   (158 )     15       (1,715 )     (394 )  
  Accounts payable   183       23       568       312    
  Accrued and other current liabilities   423       178       581       290    
  Other long-term liabilities   (61 )     88       192       163    
Net cash provided by operating activities   3,033       2,067       9,108       5,822    
Cash flows from investing activities:                
  Proceeds from maturities of marketable securities   7,417       3,627       15,197       8,792    
  Proceeds from sales of marketable securities   107       25       1,023       527    
  Purchases of marketable securities   (8,767 )     (6,468 )     (24,787 )     (19,308 )  
  Purchases related to property and equipment and intangible assets     (273 )     (283 )     (976 )     (1,128 )  
  Acquisitions, net of cash acquired   (60 )           (263 )     (8,524 )  
  Investments and other, net   (11 )     (30 )     (24 )     (34 )  
Net cash used in investing activities   (1,587 )     (3,129 )     (9,830 )     (19,675 )  
Cash flows from financing activities:                
  Proceeds related to employee stock plans   4       4       281       194    
  Payments related to tax on restricted stock units   (622 )     (225 )     (1,904 )     (942 )  
  Dividends paid   (100 )     (99 )     (399 )     (395 )  
  Principal payments on property and equipment   (21 )     (17 )     (83 )     (17 )  
  Other   (5 )     (2 )     (7 )     (4 )  
  Issuance of debt, net of issuance costs         (3 )     4,977       4,968    
  Repayment of debt               (1,000 )        
Net cash provided by (used in) financing activities   (744 )     (342 )     1,865       3,804    
Change in cash and cash equivalents   702       (1,404 )     1,143       (10,049 )  
Cash and cash equivalents at beginning of period   1,288       2,251       847       10,896    
Cash and cash equivalents at end of period $ 1,990     $ 847     $ 1,990     $ 847    
                     
  NVIDIA CORPORATION  
  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  
  (In millions, except per share data)  
  (Unaudited)  
                         
          Three Months Ended   Twelve Months Ended  
          January 30,   October 31,   January 31,   January 30,   January 31,  
            2022       2021       2021       2022       2021    
                             
  GAAP gross profit   $ 4,999     $ 4,631     $ 3,157     $ 17,475     $ 10,396    
  GAAP gross margin     65.4 %     65.2 %     63.1 %     64.9 %     62.3 %  
  Acquisition-related and other costs (A)     86       86       92       344       425    
  Stock-based compensation expense (B)     39       44       26       141       88    
  IP-related costs                   1       9       38    
  Non-GAAP gross profit   $ 5,124     $ 4,761     $ 3,276     $ 17,969     $ 10,947    
  Non-GAAP gross margin     67.0 %     67.0 %     65.5 %     66.8 %     65.6 %  
                             
  GAAP operating expenses   $ 2,029     $ 1,960     $ 1,650     $ 7,434     $ 5,864    
  Stock-based compensation expense (B)     (512 )     (515 )     (391 )     (1,863 )     (1,309 )  
  Acquisition-related and other costs (A)     (70 )     (70 )     (72 )     (292 )     (411 )  
  Non-GAAP operating expenses   $ 1,447     $ 1,375     $ 1,187     $ 5,279     $ 4,144    
                             
  GAAP income from operations   $ 2,970     $ 2,671     $ 1,507     $ 10,041     $ 4,532    
  Total impact of non-GAAP adjustments to income from operations     707       715       582       2,649       2,271    
  Non-GAAP income from operations   $ 3,677     $ 3,386     $ 2,089     $ 12,690     $ 6,803    
                             
  GAAP other income (expense), net   $ (105 )   $ (33 )   $ (37 )   $ (100 )   $ (123 )  
  (Gains) losses from non-affiliated investments     53       (20 )     (9 )     (99 )        
  Interest expense related to amortization of debt discount           1       1       3       3    
  Non-GAAP other income (expense), net   $ (52 )   $ (52 )   $ (45 )   $ (196 )   $ (120 )  
                             
  GAAP net income     $ 3,003     $ 2,464     $ 1,457     $ 9,752     $ 4,332    
  Total pre-tax impact of non-GAAP adjustments     760       696       574       2,553       2,274    
  Income tax impact of non-GAAP adjustments (C)     (330 )     (187 )     (74 )     (712 )     (329 )  
  Domestication tax adjustments     7                   (244 )        
  Foreign tax benefit     (90 )                 (90 )        
  Non-GAAP net income   $ 3,350     $ 2,973     $ 1,957     $ 11,259     $ 6,277    
                             
  Diluted net income per share (D)                      
  GAAP     $ 1.18     $ 0.97     $ 0.58     $ 3.85     $ 1.73    
  Non-GAAP     $ 1.32     $ 1.17     $ 0.78     $ 4.44     $ 2.50    
                             
  Weighted average shares used in diluted net income per share computation (D)         2,545       2,538       2,524       2,535       2,510    
                             
  GAAP net cash provided by operating activities   $ 3,033     $ 1,519     $ 2,067     $ 9,108     $ 5,822    
  Purchases related to property and equipment and intangible assets     (273 )     (221 )     (283 )     (976 )     (1,128 )  
  Principal payments on property and equipment     (21 )     (22 )     (17 )     (83 )     (17 )  
  Free cash flow     $ 2,739     $ 1,276     $ 1,767     $ 8,049     $ 4,677    
                             
     
                             
  (A) 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   Twelve Months Ended  
          January 30,   October 31,   January 31,   January 30,   January 31,  
            2022       2021       2021       2022       2021    
  Cost of revenue   $ 86     $ 86     $ 92     $ 344     $ 425    
  Research and development   $ 9     $ 7     $ 2     $ 19     $ 9    
  Sales, general and administrative   $ 61     $ 63     $ 70     $ 273     $ 402    
                             
  (B) Stock-based compensation consists of the following:          
          Three Months Ended   Twelve Months Ended  
          January 30,   October 31,   January 31,   January 30,   January 31,  
            2022       2021       2021       2022       2021    
  Cost of revenue   $ 39     $ 44     $ 26     $ 141     $ 88    
  Research and development   $ 362     $ 363     $ 266     $ 1,298     $ 860    
  Sales, general and administrative   $ 150     $ 152     $ 125     $ 565     $ 449    
                             
  (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).   
                             
  (D) Reflects a four-for-one stock split on July 19, 2021.  
                                                 
NVIDIA CORPORATION  
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK  
       
   
    Q1 FY2023
Outlook
 
    ($ in millions)  
       
GAAP gross margin   65.2%    
  Impact of stock-based compensation expense and acquisition-related costs   1.8%    
Non-GAAP gross margin   67.0%    
       
GAAP operating expenses $ 3,550    
  Arm write-off cost   (1,357 )  
  Stock-based compensation expense and acquisition-related costs   (593 )  
Non-GAAP operating expenses $ 1,600    
       

NVIDIA CORPORATION



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