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Nvidia announces financial results for first quarter fiscal 2025

Via Nvidia

May 23, 2024

  • Record quarterly revenue of $26.0 billion, up 18% from Q4 and up 262% from a year ago 
  • Record quarterly Data Center revenue of $22.6 billion, up 23% from Q4 and up 427% from a year ago
  • Ten-for-one forward stock split effective June 7, 2024
  • Quarterly cash dividend raised 150% to $0.01 per share on a post-split basis

NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter ended April 28, 2024, of $26.0 billion, up 18% from the previous quarter and up 262% from a year ago.

For the quarter, GAAP earnings per diluted share was $5.98, up 21% from the previous quarter and up 629% from a year ago. Non-GAAP earnings per diluted share was $6.12, up 19% from the previous quarter and up 461% from a year ago.

“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence,” said Jensen Huang, founder and CEO of NVIDIA. “AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.

“Our data center growth was fueled by strong and accelerating demand for generative AI training and inference on the Hopper platform. Beyond cloud service providers, generative AI has expanded to consumer internet companies, and enterprise, sovereign AI, automotive and healthcare customers, creating multiple multibillion-dollar vertical markets.

“We are poised for our next wave of growth. The Blackwell platform is in full production and forms the foundation for trillion-parameter-scale generative AI. Spectrum-X opens a brand-new market for us to bring large-scale AI to Ethernet-only data centers. And NVIDIA NIM is our new software offering that delivers enterprise-grade, optimized generative AI to run on CUDA everywhere — from the cloud to on-prem data centers and RTX AI PCs — through our expansive network of ecosystem partners.”

NVIDIA also announced a ten-for-one forward stock split of NVIDIA’s issued common stock to make stock ownership more accessible to employees and investors. The split will be effected through an amendment to NVIDIA’s Restated Certificate of Incorporation, which will result in a proportionate increase in the number of shares of authorized common stock. Each record holder of common stock as of the close of market on Thursday, June 6, 2024, will receive nine additional shares of common stock, to be distributed after the close of market on Friday, June 7, 2024. Trading is expected to commence on a split-adjusted basis at market open on Monday, June 10, 2024.

NVIDIA is increasing its quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock. The increased dividend is equivalent to $0.01 per share on a post-split basis and will be paid on Friday, June 28, 2024, to all shareholders of record on Tuesday, June 11, 2024.

Q1 Fiscal 2025 Summary

GAAP
($ in millions, except earnings
per share)		 Q1 FY25 Q4 FY24 Q1 FY24 Q/Q Y/Y
Revenue $26,044 $22,103 $7,192 Up 18% Up 262%
Gross margin 78.4% 76.0% 64.6% Up 2.4 pts Up 13.8 pts
Operating expenses $3,497 $3,176 $2,508 Up 10% Up 39%
Operating income $16,909 $13,615 $2,140 Up 24% Up 690%
Net income $14,881 $12,285 $2,043 Up 21% Up 628%
Diluted earnings per share $5.98 $4.93 $0.82 Up 21% Up 629%
           

 

Non-GAAP
($ in millions, except earnings
per share)		 Q1 FY25 Q4 FY24 Q1 FY24 Q/Q Y/Y
Revenue $26,044 $22,103 $7,192 Up 18% Up 262%
Gross margin 78.9% 76.7% 66.8% Up 2.2 pts Up 12.1 pts
Operating expenses $2,501 $2,210 $1,750 Up 13% Up 43%
Operating income $18,059 $14,749 $3,052 Up 22% Up 492%
Net income $15,238 $12,839 $2,713 Up 19% Up 462%
Diluted earnings per share $6.12 $5.16 $1.09 Up 19% Up 461%
           

Outlook
NVIDIA’s outlook for the second quarter of fiscal 2025 is as follows:

  • Revenue is expected to be $28.0 billion, plus or minus 2%.
  • GAAP and non-GAAP gross margins are expected to be 74.8% and 75.5%, respectively, plus or minus 50 basis points. For the full year, gross margins are expected to be in the mid-70% range.
  • GAAP and non-GAAP operating expenses are expected to be approximately $4.0 billion and $2.8 billion, respectively. Full-year operating expenses are expected to grow in the low-40% range.
  • GAAP and non-GAAP other income and expense are expected to be an income of approximately $300 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 17%, plus or minus 1%, excluding any discrete items.

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

Data Center

Gaming and AI PC

  • First-quarter Gaming revenue was $2.6 billion, down 8% from the previous quarter and up 18% from a year ago. 
  • Introduced new AI gaming technologies at GDC for NVIDIA ACE and Neural Graphics.
  • Unveiled new AI performance optimizations and integrations for Windows to deliver maximum performance on NVIDIA GeForce RTX AI PCs and workstations.
  • Announced more blockbuster games that will incorporate RTX technology, including Star Wars Outlaws and Black Myth Wukong.
  • Added support for new models, including Google’s Gemma, for ChatRTX, which brings chatbot capabilities to RTX-powered Windows PCs and workstations.

Professional Visualization

Automotive and Robotics

  • First-quarter Automotive revenue was $329 million, up 17% from the previous quarter and up 11% from a year ago.
  • Announced BYD, XPENG, GAC’s AION Hyper, Nuro and others have chosen the next-generation NVIDIA DRIVE Thor™ platform, which now features Blackwell GPU architecture, to power their next-generation consumer and commercial electric vehicle fleets.
  • Revealed U.S. and China electric vehicle makers Lucid and IM Motors are using the NVIDIA DRIVE Orin™ platform for vehicle models targeting the European market.
  • Announced an array of partners are using NVIDIA generative AI technologies to transform in-vehicle experiences.
  • Introduced the Project GR00T foundation model for humanoid robots and major Isaac robotics platform updates.

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 2025 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 2025.

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, 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 related to 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.

 
NVIDIA CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
           
           
      Three Months Ended
      April 28,   April 30,
       2024     2023 
           
Revenue $ 26,044     $ 7,192  
Cost of revenue   5,638       2,544  
Gross profit   20,406       4,648  
           
Operating expenses      
  Research and development   2,720       1,875  
  Sales, general and administrative   777       633  
    Total operating expenses   3,497       2,508  
           
Operating Income   16,909       2,140  
  Interest income   359       150  
  Interest expense   (64 )     (66 )
  Other, net   75       (15 )
    Other income (expense), net   370       69  
           
Income before income tax   17,279       2,209  
Income tax expense   2,398       166  
Net income $ 14,881     $ 2,043  
           
Net income per share:      
  Basic $ 6.04     $ 0.83  
  Diluted $ 5.98     $ 0.82  
           
Weighted average shares used in per share computation:      
  Basic   2,462       2,470  
  Diluted   2,489       2,490  
           

 

NVIDIA CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In millions)  
(Unaudited)  
               
               
        April 28,   January 28,  
        2024   2024  
ASSETS          
               
Current assets:          
  Cash, cash equivalents and marketable securities   $ 31,438   $ 25,984  
  Accounts receivable, net     12,365     9,999  
  Inventories     5,864     5,282  
  Prepaid expenses and other current assets     4,062     3,080  
    Total current assets     53,729     44,345  
               
Property and equipment, net     4,006     3,914  
Operating lease assets     1,532     1,346  
Goodwill     4,453     4,430  
Intangible assets, net     986     1,112  
Deferred income tax assets     7,798     6,081  
Other assets     4,568     4,500  
    Total assets   $ 77,072   $ 65,728  
               
LIABILITIES AND SHAREHOLDERS' EQUITY  
               
Current liabilities:          
  Accounts payable   $ 2,715   $ 2,699  
  Accrued and other current liabilities     11,258     6,682  
  Short-term debt     1,250     1,250  
    Total current liabilities     15,223     10,631  
               
Long-term debt     8,460     8,459  
Long-term operating lease liabilities     1,281     1,119  
Other long-term liabilities     2,966     2,541  
    Total liabilities     27,930     22,750  
               
Shareholders' equity     49,142     42,978  
    Total liabilities and shareholders' equity   $ 77,072   $ 65,728  
               

 

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
         
    Three Months Ended
    April 28,   April 30,
    2024   2023
Cash flows from operating activities:      
Net income $ 14,881     $ 2,043  
Adjustments to reconcile net income to net cash provided by operating activities:      
  Stock-based compensation expense   1,011       735  
  Depreciation and amortization   410       384  
  Realized and unrealized (gains) losses on investments in non-affiliated entities, net   (69 )     14  
  Deferred income taxes   (1,577 )     (1,135 )
  Other   (145 )     (34 )
Changes in operating assets and liabilities, net of acquisitions:      
  Accounts receivable   (2,366 )     (252 )
  Inventories   (577 )     566  
  Prepaid expenses and other assets   (726 )     (215 )
  Accounts payable   (22 )     11  
  Accrued and other current liabilities   4,202       689  
  Other long-term liabilities   323       105  
Net cash provided by operating activities   15,345       2,911  
Cash flows from investing activities:      
  Proceeds from maturities of marketable securities   4,004       2,512  
  Proceeds from sales of marketable securities   149       -  
  Purchases of marketable securities   (9,303 )     (2,801 )
  Purchase related to property and equipment and intangible assets   (369 )     (248 )
  Acquisitions, net of cash acquired   (39 )     (83 )
  Investments in non-affiliated entities   (135 )     (221 )
Net cash used in investing activities   (5,693 )     (841 )
Cash flows from financing activities:      
  Proceeds related to employee stock plans   285       246  
  Payments related to repurchases of common stock   (7,740 )     -  
  Payments related to tax on restricted stock units   (1,752 )     (507 )
  Dividends paid   (98 )     (99 )
  Principal payments on property and equipment and intangible assets   (40 )     (20 )
Net cash used in financing activities   (9,345 )     (380 )
Change in cash and cash equivalents   307       1,690  
Cash and cash equivalents at beginning of period   7,280       3,389  
Cash and cash equivalents at end of period $ 7,587     $ 5,079  
         

 

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
                           
       Three Months Ended
      April 28,   January 28,   April 30,
      2024   2024   2023
                           
GAAP gross profit    $ 20,406     $ 16,791     $ 4,648  
 GAAP gross margin      78.4%       76.0%       64.6%  
  Acquisition-related and other costs (A)     119       119       119  
  Stock-based compensation expense (B)     36       45       27  
  Other (C)     (1 )     4       8  
Non-GAAP gross profit    $ 20,560     $ 16,959     $ 4,802  
 Non-GAAP gross margin      78.9%       76.7%       66.8%  
                           
GAAP operating expenses    $ 3,497     $ 3,176     $ 2,508  
  Stock-based compensation expense (B)     (975 )     (948 )     (708 )
  Acquisition-related and other costs (A)     (21 )     (18 )     (54 )
  Other (C)     -       -       4  
Non-GAAP operating expenses    $ 2,501     $ 2,210     $ 1,750  
                           
GAAP operating income    $ 16,909     $ 13,615     $ 2,140  
  Total impact of non-GAAP adjustments to operating income     1,150       1,134       912  
Non-GAAP operating income    $ 18,059     $ 14,749     $ 3,052  
                           
GAAP other income (expense), net    $ 370     $ 491     $ 69  
  (Gains) losses from non-affiliated investments     (69 )     (260 )     14  
  Interest expense related to amortization of debt discount     1       1       1  
Non-GAAP other income (expense), net    $ 302     $ 232     $ 84  
                           
GAAP net income    $ 14,881     $ 12,285     $ 2,043  
  Total pre-tax impact of non-GAAP adjustments     1,082       875       927  
  Income tax impact of non-GAAP adjustments (D)     (725 )     (321 )     (257 )
Non-GAAP net income   $ 15,238     $ 12,839     $ 2,713  
                           
Diluted net income per share                         
  GAAP   $ 5.98     $ 4.93     $ 0.82  
  Non-GAAP   $ 6.12     $ 5.16     $ 1.09  
                           
Weighted average shares used in diluted net income per share computation      2,489       2,490       2,490  
                           
GAAP net cash provided by operating activities    $ 15,345     $ 11,499     $ 2,911  
  Purchases related to property and equipment and intangible assets     (369 )     (253 )     (248 )
  Principal payments on property and equipment and intangible assets     (40 )     (29 )     (20 )
Free cash flow    $ 14,936     $ 11,217     $ 2,643  
                           
                           
                           
(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
      April 28,   January 28,   April 30,
      2024   2024   2023
  Cost of revenue   $ 119     $ 119     $ 119  
  Research and development   $ 12     $ 12     $ 12  
  Sales, general and administrative   $ 8     $ 6     $ 42  
                           
(B) Stock-based compensation consists of the following:                         
      Three Months Ended
      April 28,   January 28,   April 30,
      2024   2024   2023
  Cost of revenue   $ 36     $ 45     $ 27  
  Research and development   $ 727     $ 706     $ 524  
  Sales, general and administrative   $ 248     $ 242     $ 184  
                           
(C) Other consists of IP-related costs and 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 FY2025
Outlook
    ($ in millions)
     
GAAP gross margin   74.8 %
  Impact of stock-based compensation expense, acquisition-related costs, and other costs   0.7 %
Non-GAAP gross margin   75.5 %
     
GAAP operating expenses $ 3,950  
  Stock-based compensation expense, acquisition-related costs, and other costs   (1,150 )
Non-GAAP operating expenses $ 2,800  
     
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