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NVIDIA Announces Financial Results for Second Quarter Fiscal 2024

SANTA CLARA, Calif., Aug. 23, 2023 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported revenue for the second quarter ended July 30, 2023, of $13.51 billion, up 101% from a year ago and up 88% from the previous quarter.

GAAP earnings per diluted share for the quarter were $2.48, up 854% from a year ago and up 202% from the previous quarter. Non-GAAP earnings per diluted share were $2.70, up 429% from a year ago and up 148% from the previous quarter.

“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.

“NVIDIA GPUs connected by our Mellanox networking and switch technologies and running our CUDA AI software stack make up the computing infrastructure of generative AI.

“During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI,” he said.

During the second quarter of fiscal 2024, NVIDIA returned $3.38 billion to shareholders in the form of 7.5 million shares repurchased for $3.28 billion, and cash dividends. As of the end of the second quarter, the company had $3.95 billion remaining under its share repurchase authorization. On August 21, 2023, the Board of Directors approved an additional $25.00 billion in share repurchases, without expiration. NVIDIA plans to continue share repurchases this fiscal year.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on September 28, 2023, to all shareholders of record on September 7, 2023.

Q2 Fiscal 2024 Summary

GAAP
($ in millions, except earnings
per share)
Q2 FY24Q1 FY24Q2 FY23Q/QY/Y
Revenue$13,507 $7,192 $6,704 Up 88%Up 101%
Gross margin 70.1% 64.6% 43.5%Up 5.5 ptsUp 26.6 pts
Operating expenses$2,662 $2,508 $2,416 Up 6%Up 10%
Operating income$6,800 $2,140 $499  Up 218%Up 1,263%
Net income$6,188 $2,043 $656 Up 203%Up 843%
Diluted earnings per share$2.48 $0.82 $0.26 Up 202%Up 854%


Non-GAAP
($ in millions, except earnings
per share)
Q2 FY24Q1 FY24Q2 FY23Q/QY/Y
Revenue$13,507 $7,192 $6,704 Up 88%Up 101%
Gross margin 71.2% 66.8% 45.9%Up 4.4 ptsUp 25.3 pts
Operating expenses$1,838 $1,750 $1,749 Up 5%Up 5%
Operating income$7,776 $3,052 $1,325 Up 155%Up 487%
Net income$6,740 $2,713 $1,292 Up 148%Up 422%
Diluted earnings per share$2.70 $1.09 $0.51 Up 148%Up 429%

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

Highlights

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

Data Center

Gaming

Professional Visualization

Automotive

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 second 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 third quarter of 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, legal settlement costs, contributions, 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 Jankowski Robert Sherbin
Investor Relations Corporate Communications
NVIDIA Corporation NVIDIA Corporation
Email Contact  Email Contact




Certain statements in this press release including, but not limited to, statements as to: companies worldwide transitioning from general-purpose to accelerated computing and generative AI; NVIDIA GPUs running CUDA AI software stack making up the computing infrastructure of generative AI; the race to adopt generative AI; NVIDIA’s plans to continue share repurchases; NVIDIA’s next quarterly cash dividend; NVIDIA’s financial outlook and expected tax rates for the third quarter of fiscal 2024; the benefits, impact, performance, features and availability of our products and technologies, including the NVIDIA GH200 Grace Hopper Superchip, NVIDIA L40S GPU, NVIDIA OVX, NVIDIA AI Enterprise, BlueField DPUs, NVIDIA MGX, 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, NVIDIA AI Workbench, NVIDIA AI Enterprise 4.0, the GeForce RTX 4060 family, NVIDIA Ada Lovelace, DLSS, NVIDIA Avatar Cloud Engine, NVIDIA’s RTX Remix, NVIDIA RTX 5000, RTX 4500 and RTX 4000, and NVIDIA DRIVE Orin; and the benefits and impact of NVIDIA’s partnerships with ServiceNow, Accenture, VMware, Snowflake, WPP, SoftBank, Hugging Face, and MediaTek, and NVIDIA’s Alliance for OpenUSD with Pixar, Adobe, Apple and Autodesk 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.  

© 2023 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, BlueField, GeForce, GeForce RTX, NVIDIA DGX, NVIDIA DRIVE Orin, NVIDIA Grace Hopper, NVIDIA Hopper, NVIDIA MGX, NVIDIA Omniverse, NVIDIA OVX, NVIDIA RTX, and NVIDIA Spectrum-X 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 Six Months Ended
   July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022
          
Revenue$13,507  $6,704  $20,699  $14,992 
Cost of revenue 4,045   3,789   6,589   6,646 
Gross profit 9,462   2,915   14,110   8,346 
          
Operating expenses       
 Research and development 2,040   1,824   3,916   3,443 
 Sales, general and administrative 622   592   1,253   1,183 
 Acquisition termination cost          1,353 
  Total operating expenses 2,662   2,416   5,169   5,979 
          
Operating income 6,800   499   8,941   2,367 
 Interest income 187   46   338   64 
 Interest expense (65)  (65)  (131)  (132)
 Other, net 59   (5)  42   (19)
  Other income (expense), net 181   (24)  249   (87)
          
Income before income tax 6,981   475   9,190   2,280 
Income tax expense (benefit) 793   (181)  958   6 
Net income$6,188  $656  $8,232  $2,274 
          
Net income per share:       
 Basic$2.50  $0.26  $3.33  $0.91 
 Diluted$2.48  $0.26  $3.30  $0.90 
          
Weighted average shares used in per share computation:       
 Basic 2,473   2,495   2,472   2,500 
 Diluted 2,499   2,516   2,495   2,526 



NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)

   July 30, 2023 January 29, 2023
ASSETS   
      
Current assets:   
 Cash, cash equivalents and marketable securities$16,023 $13,296
 Accounts receivable, net 7,066  3,827
 Inventories 4,319  5,159
 Prepaid expenses and other current assets 1,389  791
  Total current assets 28,797  23,073
      
Property and equipment, net 3,799  3,807
Operating lease assets 1,235  1,038
Goodwill 4,430  4,372
Intangible assets, net 1,395  1,676
Deferred income tax assets 5,398  3,396
Other assets 4,501  3,820
  Total assets$49,555 $41,182
      
LIABILITIES AND SHAREHOLDERS' EQUITY
      
Current liabilities:   
 Accounts payable$1,929 $1,193
 Accrued and other current liabilities 7,156  4,120
 Short-term debt 1,249  1,250
  Total current liabilities 10,334  6,563
      
Long-term debt 8,456  9,703
Long-term operating lease liabilities 1,041  902
Other long-term liabilities 2,223  1,913
  Total liabilities 22,054  19,081
      
Shareholders' equity 27,501  22,101
  Total liabilities and shareholders' equity$49,555 $41,182



NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

  Three Months Ended Six Months Ended
  July 30, July 31, July 30, July 31,
   2023   2022   2023   2022 
         
Cash flows from operating activities:       
Net income$6,188  $656  $8,232  $2,274 
Adjustments to reconcile net income to net cash provided by operating activities:       
 Stock based compensation expense 842   648   1,576   1,226 
 Depreciation and amortization 365   378   749   712 
 (Gains) losses on investments in non affiliates, net (60)  7   (45)  24 
 Deferred income taxes (746)  (443)  (1,881)  (985)
 Acquisition termination cost          1,353 
 Other (69)  (5)  (102)  18 
Changes in operating assets and liabilities, net of acquisitions:       
 Accounts receivable (2,986)  120   (3,239)  (668)
 Inventories 296   (725)  861   (1,285)
 Prepaid expenses and other assets (376)  (293)  (592)  (1,554)
 Accounts payable 777   304   789   559 
 Accrued liabilities and other current liabilities 1,986   633   2,675   1,267 
 Other long-term liabilities 131   (10)  236   60 
Net cash provided by operating activities 6,348   1,270   9,259   3,001 
         
Cash flows from investing activities:       
 Proceeds from maturities of marketable securities 2,598   5,036   5,111   10,983 
 Proceeds from sales of marketable securities    702      1,731 
 Purchases of marketable securities (2,542)  (3,644)  (5,343)  (7,576)
 Purchase related to property and equipment and intangible assets (289)  (433)  (537)  (794)
 Acquisitions, net of cash acquired    (13)  (83)  (49)
 Investments and other, net (214)  (30)  (435)  (65)
Net cash provided by (used in) investing activities (447)  1,618   (1,287)  4,230 


  Three Months Ended Six Months Ended
  July 30, July 31, July 30, July 31,
   2023   2022   2023   2022 
         
Cash flows from financing activities:       
 Proceeds related to employee stock plans 1   1   247   205 
 Payments related to repurchases of common stock (3,067)  (3,345)  (3,067)  (5,341)
 Repayment of debt (1,250)     (1,250)   
 Payments related to tax on restricted stock units (672)  (305)  (1,179)  (837)
 Dividends paid (99)  (100)  (199)  (200)
 Principal payments on property and equipment and intangible assets (11)  (14)  (31)  (36)
 Other    1      1 
Net cash used in financing activities (5,098)  (3,762)  (5,479)  (6,208)
         
Change in cash, cash equivalents, and restricted cash 803   (874)  2,493   1,023 
Cash, cash equivalents, and restricted cash at beginning of period 5,079   3,887   3,389   1,990 
Cash, cash equivalents, and restricted cash at end of period$5,882  $3,013  $5,882  $3,013 
         
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheet:       
 Cash and cash equivalents$5,783  $3,013  $5,783  $3,013 
 Restricted cash, included in prepaid expenses and other current assets 99      99    
Total cash, cash equivalents, and restricted cash$5,882  $3,013  $5,882  $3,013 
         
Supplemental disclosures of cash flow information:       
Cash paid for income taxes, net$227  $1,081  $328  $1,108 



NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)

   Three Months Ended Six Months Ended
   July 30, April 30, July 31, July 30, July 31,
    2023   2023   2022   2023   2022 
            
GAAP gross profit$9,462  $4,648  $2,915  $14,110  $8,346 
 GAAP gross margin 
 70.1%  64.6%  43.5%  68.2%  55.7%
  Acquisition-related and other costs (A) 119   119   121   239   214 
  Stock-based compensation expense (B) 31   27   38   58   76 
  IP-related costs 2   8      10    
Non-GAAP gross profit$9,614  $4,802  $3,074  $14,417  $8,636 
 Non-GAAP gross margin  71.2%  66.8%  45.9%  69.7%  57.6%
            
GAAP operating expenses$2,662  $2,508  $2,416  $5,169  $5,979 
  Stock-based compensation expense (B) (811)  (708)  (611)  (1,518)  (1,151)
  Acquisition-related and other costs (A) (18)  (54)  (54)  (72)  (110)
  Acquisition termination cost             (1,353)
  Legal settlement costs             (7)
  Contributions       (2)     (2)
  Other (C) 5   4      10    
Non-GAAP operating expenses$1,838  $1,750  $1,749  $3,589  $3,356 
            
GAAP operating income$6,800  $2,140  $499  $8,941  $2,367 
  Total impact of non-GAAP adjustments to operating income 976   912   826   1,887   2,913 
Non-GAAP operating income$7,776  $3,052  $1,325  $10,828  $5,280 
            
GAAP other income (expense), net$181  $69  $(24) $249  $(87)
  (Gains) losses from non-affiliated investments (62)  14   7   (46)  24 
  Interest expense related to amortization of debt discount 1   1   1   2   2 
Non-GAAP other income (expense), net$120  $84  $(16) $205  $(61)
            
GAAP net income$6,188  $2,043  $656  $8,232  $2,274 
  Total pre-tax impact of non-GAAP adjustments 915   927   833   1,843   2,940 
  Income tax impact of non-GAAP adjustments (D) (363)  (257)  (197)  (622)  (478)
Non-GAAP net income $6,740  $2,713  $1,292  $9,453  $4,736 


  Three Months Ended Six Months Ended
  July 30, April 30, July 31, July 30, July 31,
   2023   2023   2022   2023   2022 
Diluted net income per share         
 GAAP$2.48  $0.82  $0.26  $3.30  $0.90 
 Non-GAAP$2.70  $1.09  $0.51  $3.79  $1.87 
           
Weighted average shares used in diluted net income per share computation 2,499   2,490   2,516   2,495   2,527 
           
GAAP net cash provided by operating activities$6,348  $2,911  $1,271  $9,259  $3,001 
 Purchases related to property and equipment and intangible assets (289)  (248)  (432)  (537)  (794)
 Principal payments on property and equipment and intangible assets (11)  (20)  (15)  (31)  (36)
Free cash flow$6,048  $2,643  $824  $8,691  $2,171 


(A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items:
  Three Months Ended Six Months Ended
  July 30, April 30, July 31, July 30, July 31,
   2023  2023  2022  2023  2022
 Cost of revenue$119 $119 $121 $239 $214
 Research and development$12 $12 $10 $24 $19
 Sales, general and administrative$6 $42 $44 $48 $91
           
(B) Stock-based compensation consists of the following:
  Three Months Ended Six Months Ended
  July 30, April 30, July 31, July 30, July 31,
   2023  2023  2022  2023  2022
 Cost of revenue$31 $27 $38 $58 $76
 Research and development$600 $524 $452 $1,124 $836
 Sales, general and administrative$211 $184 $159 $394 $315
           
(C) Other consists of 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 

   Q3 FY2024
  Outlook
  ($ in millions)
GAAP gross margin 71.5%
 Impact of stock-based compensation expense, acquisition-related costs, and other costs 1.0%
Non-GAAP gross margin 72.5%
   
GAAP operating expenses$2,950 
 Stock-based compensation expense, acquisition-related costs, and other costs (950)
Non-GAAP operating expenses$2,000 

 

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