NVIDIA Announces Financial Results for Fourth Quarter and Fiscal ...

21 Feb 2024

NVIDIA Newsroom

Record quarterly revenue of $22.1 billion, up 22% from Q3, up 265% from year ago Record quarterly Data Center revenue of $18.4 billion, up 27% from Q3, up 409% from year ago Record full-year revenue of $60.9 billion, up 126%

NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 28, 2024, of $22.1 billion, up 22% from the previous quarter and up 265% from a year ago.

For the quarter, GAAP earnings per diluted share was $4.93, up 33% from the previous quarter and up 765% from a year ago. Non-GAAP earnings per diluted share was $5.16, up 28% from the previous quarter and up 486% from a year ago.

For fiscal 2024, revenue was up 126% to $60.9 billion. GAAP earnings per diluted share was $11.93, up 586% from a year ago. Non-GAAP earnings per diluted share was $12.96, up 288% from a year ago.

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of NVIDIA.

“Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level.

“NVIDIA RTX, introduced less than six years ago, is now a massive PC platform for generative AI, enjoyed by 100 million gamers and creators. The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward. Come join us at next month’s GTC, where we and our rich ecosystem will reveal the exciting future ahead,” he said.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on March 27, 2024, to all shareholders of record on March 6, 2024.

Q4 Fiscal 2024 Summary

GAAP ($ in millions, except earnings
per share) Q4 FY24 Q3 FY24 Q4 FY23 Q/Q Y/Y Revenue $22,103 $18,120 $6,051 Up 22% Up 265% Gross margin 76.0% 74.0% 63.3% Up 2.0 pts Up 12.7 pts Operating expenses $3,176 $2,983 $2,576 Up 6% Up 23% Operating income $13,615 $10,417 $1,257 Up 31% Up 983% Net income $12,285 $9,243 $1,414 Up 33% Up 769% Diluted earnings per share $4.93 $3.71 $0.57 Up 33% Up 765% Non-GAAP ($ in millions, except earnings
per share) Q4 FY24 Q3 FY24 Q4 FY23 Q/Q Y/Y Revenue $22,103 $18,120 $6,051 Up 22% Up 265% Gross margin 76.7% 75.0% 66.1% Up 1.7 pts Up 10.6 pts Operating expenses $2,210 $2,026 $1,775 Up 9% Up 25% Operating income $14,749 $11,557 $2,224 Up 28% Up 563% Net income $12,839 $10,020 $2,174 Up 28% Up 491% Diluted earnings per share $5.16 $4.02 $0.88 Up 28% Up 486%

Fiscal 2024 Summary

GAAP ($ in millions, except earnings
per share) FY24 FY23 Y/Y Revenue $60,922 $26,974 Up 126% Gross margin 72.7% 56.9% Up 15.8 pts Operating expenses $11,329 $11,132 Up 2% Operating income $32,972 $4,224 Up 681% Net income $29,760 $4,368 Up 581% Diluted earnings per share $11.93 $1.74 Up 586% Non-GAAP ($ in millions, except earnings
per share) FY24 FY23 Y/Y Revenue $60,922 $26,974 Up 126% Gross margin 73.8% 59.2% Up 14.6 pts Operating expenses $7,825 $6,925 Up 13% Operating income $37,134 $9,040 Up 311% Net income $32,312 $8,366 Up 286% Diluted earnings per share $12.96 $3.34 Up 288%

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

Revenue is expected to be $24.0 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 76.3% and 77.0%, respectively, plus or minus 50 basis points. GAAP and non-GAAP operating expenses are expected to be approximately $3.5 billion and $2.5 billion, respectively. GAAP and non-GAAP other income and expense are expected to be an income of approximately $250 million, excluding gains and losses from non-affiliated investments. GAAP and non-GAAP tax rates are expected to be 17.0%, plus or minus 1%, excluding any discrete items.

Highlights

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

Data Center

Fourth-quarter revenue was a record $18.4 billion, up 27% from the previous quarter and up 409% from a year ago. Full-year revenue rose 217% to a record $47.5 billion. Launched, in collaboration with Google, optimizations across NVIDIA’s data center and PC AI platforms for Gemma, Google’s groundbreaking open language models. Expanded its strategic collaboration with Amazon Web Services to host NVIDIA® DGX™ Cloud on AWS. Announced that Amgen will use the NVIDIA DGX SuperPOD™ to power insights into drug discovery, diagnostics and precision medicine. Announced NVIDIA NeMo™ Retriever, a generative AI microservice that lets enterprises connect custom large language models with enterprise data to deliver highly accurate responses for AI applications. Introduced NVIDIA MONAI™ cloud APIs to help developers and platform providers integrate AI into their medical-imaging offerings. Announced that Singtel will bring generative AI services to Singapore through energy-efficient data centers that the telco is building with NVIDIA Hopper™ architecture GPUs. Introduced plans with Cisco to help enterprises quickly and easily deploy and manage secure AI infrastructure. Supported the National Artificial Intelligence Research Resource pilot program, a major step by the U.S. government toward a shared national research infrastructure.

Gaming

Fourth-quarter revenue was $2.9 billion, flat from the previous quarter and up 56% from a year ago. Full-year revenue rose 15% to $10.4 billion. Launched GeForce RTX™ 40 SUPER Series GPUs, starting at $599, which support the latest NVIDIA RTX™ technologies, including DLSS 3.5 Ray Reconstruction and NVIDIA Reflex. Announced generative AI capabilities for its installed base of over 100 million RTX AI PCs, including Tensor-RT™ LLM to accelerate inference on large language models, and Chat with RTX, a tech demo that lets users personalize a chatbot with their own content. Introduced microservices for the NVIDIA Avatar Cloud Engine, allowing game and application developers to integrate state-of-the-art generative AI models into non-playable characters. Reached the milestone of 500 AI-powered RTX games and applications utilizing NVIDIA DLSS, ray tracing and other NVIDIA RTX technologies.

Professional Visualization

Fourth-quarter revenue was $463 million, up 11% from the previous quarter and up 105% from a year ago. Full-year revenue rose 1% to $1.6 billion. Announced adoption of NVIDIA Omniverse™ by the global automotive-configurator ecosystem. Announced the NVIDIA RTX 2000 Ada Generation GPU, bringing the latest AI, graphics and compute technology to compact workstations.

Automotive

Fourth-quarter revenue was $281 million, up 8% from the previous quarter and down 4% from a year ago. Full-year revenue rose 21% to $1.1 billion. Announced further adoption of its NVIDIA DRIVE® platform, with Great Wall Motors, ZEEKR and Xiaomi using DRIVE Orin™ to power intelligent automated-driving systems and Li Auto selecting DRIVE Thor™ as its centralized car computer.

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 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 first 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 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 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 Twelve Months Ended January 28, January 29, January 28, January 29, 2024 2023 2024 2023 Revenue $ 22,103 $ 6,051 $ 60,922 $ 26,974 Cost of revenue 5,312 2,218 16,621 11,618 Gross profit 16,791 3,833 44,301 15,356 Operating expenses Research and development 2,465 1,951 8,675 7,339 Sales, general and administrative 711 625 2,654 2,440 Acquisition termination cost - - - 1,353 Total operating expenses 3,176 2,576 11,329 11,132 Operating Income 13,615 1,257 32,972 4,224 Interest income 294 115 866 267 Interest expense (63 ) (65 ) (257 ) (262 ) Other, net 260 (18 ) 237 (48 ) Other income (expense), net 491 32 846 (43 ) Income before income tax 14,106 1,289 33,818 4,181 Income tax expense (benefit) 1,821 (125 ) 4,058 (187 ) Net income $ 12,285 $ 1,414 $ 29,760 $ 4,368 Net income per share: Basic $ 4.98 $ 0.57 $ 12.05 $ 1.76 Diluted $ 4.93 $ 0.57 $ 11.93 $ 1.74 Weighted average shares used in per share computation: Basic 2,466 2,464 2,469 2,487 Diluted 2,490 2,477 2,494 2,507 NVIDIA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) January 28, January 29, 2024 2023 ASSETS Current assets: Cash, cash equivalents and marketable securities $ 25,984 $ 13,296 Accounts receivable, net 9,999 3,827 Inventories 5,282 5,159 Prepaid expenses and other current assets 3,080 791 Total current assets 44,345 23,073 Property and equipment, net 3,914 3,807 Operating lease assets 1,346 1,038 Goodwill 4,430 4,372 Intangible assets, net 1,112 1,676 Deferred income tax assets 6,081 3,396 Other assets 4,500 3,820 Total assets $ 65,728 $ 41,182 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,699 $ 1,193 Accrued and other current liabilities 6,682 4,120 Short-term debt 1,250 1,250 Total current liabilities 10,631 6,563 Long-term debt 8,459 9,703 Long-term operating lease liabilities 1,119 902 Other long-term liabilities 2,541 1,913 Total liabilities 22,750 19,081 Shareholders' equity 42,978 22,101 Total liabilities and shareholders' equity $ 65,728 $ 41,182 NVIDIA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended Twelve Months Ended January 28, January 29, January 28, January 29, 2024 2023 2024 2023 Cash flows from operating activities: Net income $ 12,285 $ 1,414 $ 29,760 $ 4,368 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 993 738 3,549 2,709 Depreciation and amortization 387 426 1,508 1,544 Deferred income taxes (78 ) (647 ) (2,489 ) (2,164 ) (Gains) losses on investments in non-affiliated entities, net (260 ) 10 (238 ) 45 Acquisition termination cost - - - 1,353 Other (109 ) 20 (278 ) (7 ) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (1,690 ) 1,081 (6,172 ) 822 Inventories (503 ) (706 ) (98 ) (2,554 ) Prepaid expenses and other assets (1,184 ) (210 ) (1,522 ) (1,517 ) Accounts payable 281 (193 ) 1,531 (551 ) Accrued and other current liabilities 1,072 166 2,025 1,341 Other long-term liabilities 305 150 514 252 Net cash provided by operating activities 11,499 2,249 28,090 5,641 Cash flows from investing activities: Proceeds from maturities of marketable securities 1,731 2,633 9,732 19,425 Proceeds from sales of marketable securities 50 - 50 1,806 Purchases of marketable securities (7,524 ) (2,133 ) (18,211 ) (11,897 ) Purchase related to property and equipment and intangible assets (253 ) (509 ) (1,069 ) (1,833 ) Acquisitions, net of cash acquired - - (83 ) (49 ) Investments in non-affiliated entities and other, net (113 ) 5 (985 ) (77 ) Net cash provided by (used in) investing activities (6,109 ) (4 ) (10,566 ) 7,375 Cash flows from financing activities: Proceeds related to employee stock plans - 5 403 355 Payments related to repurchases of common stock (2,660 ) (1,212 ) (9,533 ) (10,039 ) Payments related to tax on restricted stock units (841 ) (344 ) (2,783 ) (1,475 ) Repayment of debt - - (1,250 ) - Dividends paid (99 ) (98 ) (395 ) (398 ) Principal payments on property and equipment and intangible assets (29 ) (4 ) (74 ) (58 ) Other - (3 ) (1 ) (2 ) Net cash used in financing activities (3,629 ) (1,656 ) (13,633 ) (11,617 ) Change in cash and cash equivalents 1,761 589 3,891 1,399 Cash and cash equivalents at beginning of period 5,519 2,800 3,389 1,990 Cash and cash equivalents at end of period $ 7,280 $ 3,389 $ 7,280 $ 3,389 Supplemental disclosures of cash flow information: Cash paid for income taxes, net $ 1,874 $ 32 $ 6,549 $ 1,404 Cash paid for interest $ 26 $ 28 $ 252 $ 254 NVIDIA CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) (Unaudited) Three Months Ended Twelve Months Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 GAAP gross profit $ 16,791 $ 13,400 $ 3,833 $ 44,301 $ 15,356 GAAP gross margin 76.0 % 74.0 % 63.3 % 72.7 % 56.9 % Acquisition-related and other costs (A) 119 119 120 477 455 Stock-based compensation expense (B) 45 38 30 141 138 IP-related costs 4 26 16 40 16 Non-GAAP gross profit $ 16,959 $ 13,583 $ 3,999 $ 44,959 $ 15,965 Non-GAAP gross margin 76.7 % 75.0 % 66.1 % 73.8 % 59.2 % GAAP operating expenses $ 3,176 $ 2,983 $ 2,576 $ 11,329 $ 11,132 Stock-based compensation expense (B) (948 ) (941 ) (709 ) (3,408 ) (2,572 ) Acquisition-related and other costs (A) (18 ) (16 ) (54 ) (106 ) (219 ) Acquisition termination cost - - - - (1,353 ) Other (C) - - (38 ) 10 (63 ) Non-GAAP operating expenses $ 2,210 $ 2,026 $ 1,775 $ 7,825 $ 6,925 GAAP operating income $ 13,615 $ 10,417 $ 1,257 $ 32,972 $ 4,224 Total impact of non-GAAP adjustments to operating income 1,134 1,140 967 4,162 4,816 Non-GAAP operating income $ 14,749 $ 11,557 $ 2,224 $ 37,134 $ 9,040 GAAP other income (expense), net $ 491 $ 105 $ 32 $ 846 $ (43 ) (Gains) losses from non-affiliated investments (260 ) 69 10 (238 ) 45 Interest expense related to amortization of debt discount 1 1 1 4 5 Non-GAAP other income (expense), net $ 232 $ 175 $ 43 $ 612 $ 7 GAAP net income $ 12,285 $ 9,243 $ 1,414 $ 29,760 $ 4,368 Total pre-tax impact of non-GAAP adjustments 875 1,210 978 3,928 4,865 Income tax impact of non-GAAP adjustments (D) (321 ) (433 ) (218 ) (1,376 ) (867 ) Non-GAAP net income $ 12,839 $ 10,020 $ 2,174 $ 32,312 $ 8,366 Diluted net income per share GAAP $ 4.93 $ 3.71 $ 0.57 $ 11.93 $ 1.74 Non-GAAP $ 5.16 $ 4.02 $ 0.88 $ 12.96 $ 3.34 Weighted average shares used in diluted net income per share computation 2,490 2,494 2,477 2,494 2,507 GAAP net cash provided by operating activities $ 11,499 $ 7,333 $ 2,249 $ 28,090 $ 5,641 Purchases related to property and equipment and intangible assets (253 ) (278 ) (509 ) (1,069 ) (1,833 ) Principal payments on property and equipment and intangible assets (29 ) (13 ) (4 ) (74 ) (58 ) Free cash flow $ 11,217 $ 7,042 $ 1,736 $ 26,947 $ 3,750 (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 Twelve Months Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 Cost of revenue $ 119 $ 119 $ 120 $ 477 $ 455 Research and development $ 12 $ 12 $ 10 $ 49 $ 39 Sales, general and administrative $ 6 $ 4 $ 44 $ 57 $ 180 (B) Stock-based compensation consists of the following: Three Months Ended Twelve Months Ended January 28, October 29, January 29, January 28, January 29, 2024 2023 2023 2024 2023 Cost of revenue $ 45 $ 38 $ 30 $ 141 $ 138 Research and development $ 706 $ 701 $ 527 $ 2,532 $ 1,892 Sales, general and administrative $ 242 $ 240 $ 182 $ 876 $ 680 (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 Q1 FY2025 Outlook ($ in millions) GAAP gross margin 76.3 % Impact of stock-based compensation expense, acquisition-related costs, and other costs 0.7 % Non-GAAP gross margin 77.0 % GAAP operating expenses $ 3,480 Stock-based compensation expense, acquisition-related costs, and other costs (980 ) Non-GAAP operating expenses $ 2,500