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NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2022

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 FY22Q3 FY22Q4 FY21Q/QY/Y
Revenue$7,643 $7,103 $5,003 Up 8%Up 53%
Gross margin 65.4% 65.2% 63.1%Up 20 bpsUp 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 FY22Q3 FY22Q4 FY21Q/QY/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)FY22FY21Y/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)FY22FY21Y/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:

Highlights

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

Gaming

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:

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: 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  
    

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