| NVIDIA CORPORATION | |||||||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 31, | May 1, | August 1, | July 31, | August 1, | |||||||||||||||||||
|
2022
|
2022
|
2021
|
2022
|
2021
| |||||||||||||||||||
| GAAP gross profit | $ | 2,915 | $ | 5,431 | $ | 4,215 | $ | 8,346 | $ | 7,844 | |||||||||||||
| GAAP gross margin
| 43.5 | % | 65.5 | % | 64.8 | % | 55.7 | % | 64.5 | % | |||||||||||||
| Acquisition-related and other costs (A) | 121 | 94 | 86 | 214 | 173 | ||||||||||||||||||
| Stock-based compensation expense (B) | 38 | 38 | 32 | 76 | 57 | ||||||||||||||||||
| IP-related costs | - | - | 4 | - | 9 | ||||||||||||||||||
| Non-GAAP gross profit | $ | 3,074 | $ | 5,563 | $ | 4,337 | $ | 8,636 | $ | 8,083 | |||||||||||||
| Non-GAAP gross margin | 45.9 | % | 67.1 | % | 66.7 | % | 57.6 | % | 66.4 | % | |||||||||||||
| GAAP operating expenses | $ | 2,416 | $ | 3,563 | $ | 1,771 | $ | 5,979 | $ | 3,444 | |||||||||||||
| Stock-based compensation expense (B) | (611 | ) | (540 | ) | (433 | ) | (1,151 | ) | (837 | ) | |||||||||||||
| Acquisition-related and other costs (A) | (54 | ) | (55 | ) | (72 | ) | (110 | ) | (152 | ) | |||||||||||||
| Contributions | (2 | ) | - | - | (2 | ) | - | ||||||||||||||||
| Acquisition termination cost | - | (1,353 | ) | - | (1,353 | ) | - | ||||||||||||||||
| Legal settlement costs | - | (7 | ) | - | (7 | ) | - | ||||||||||||||||
| Non-GAAP operating expenses | $ | 1,749 | $ | 1,608 | $ | 1,266 | $ | 3,356 | $ | 2,455 | |||||||||||||
| GAAP income from operations | $ | 499 | $ | 1,868 | $ | 2,444 | $ | 2,367 | $ | 4,400 | |||||||||||||
| Total impact of non-GAAP adjustments to income from operations | 826 | 2,087 | 627 | 2,913 | 1,228 | ||||||||||||||||||
| Non-GAAP income from operations | $ | 1,325 | $ | 3,955 | $ | 3,071 | $ | 5,280 | $ | 5,628 | |||||||||||||
| GAAP other income (expense), net | $ | (24 | ) | $ | (63 | ) | $ | (50 | ) | $ | (87 | ) | $ | 38 | |||||||||
| (Gains) losses from non-affiliated investments | 7 | 17 | - | 24 | (133 | ) | |||||||||||||||||
| Interest expense related to amortization of debt discount | 1 | 1 | 1 | 2 | 2 | ||||||||||||||||||
| Non-GAAP other income (expense), net | $ | (16 | ) | $ | (45 | ) | $ | (49 | ) | $ | (61 | ) | $ | (93 | ) | ||||||||
| GAAP net income | $ | 656 | $ | 1,618 | $ | 2,374 | $ | 2,274 | $ | 4,285 | |||||||||||||
| Total pre-tax impact of non-GAAP adjustments | 833 | 2,105 | 628 | 2,940 | 1,097 | ||||||||||||||||||
| Income tax impact of non-GAAP adjustments (C) | (197 | ) | (280 | ) | (127 | ) | (478 | ) | (194 | ) | |||||||||||||
| Domestication tax adjustments | - | - | (252 | ) | - | (252 | ) | ||||||||||||||||
| Non-GAAP net income | $ | 1,292 | $ | 3,443 | $ | 2,623 | $ | 4,736 | $ | 4,936 | |||||||||||||
| Diluted net income per share | |||||||||||||||||||||||
| GAAP | $ | 0.26 | $ | 0.64 | $ | 0.94 | $ | 0.90 | $ | 1.69 | |||||||||||||
| Non-GAAP | $ | 0.51 | $ | 1.36 | $ | 1.04 | $ | 1.87 | $ | 1.95 | |||||||||||||
| Weighted average shares used in diluted net income per share computation | 2,516 | 2,537 | 2,532 | 2,527 | 2,529 | ||||||||||||||||||
| GAAP net cash provided by operating activities | $ | 1,271 | $ | 1,731 | $ | 2,682 | $ | 3,001 | $ | 4,556 | |||||||||||||
| Purchases related to property and equipment and intangible assets | (432 | ) | (361 | ) | (183 | ) | (794 | ) | (481 | ) | |||||||||||||
| Principal payments on property and equipment | (15 | ) | (22 | ) | (21 | ) | (36 | ) | (40 | ) | |||||||||||||
| Free cash flow | $ | 824 | $ | 1,348 | $ | 2,478 | $ | 2,171 | $ | 4,035 | |||||||||||||
| (A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs and certain compensation charges presented in the following line items: | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 31, | May 1, | August 1, | July 31, | August 1, | |||||||||||||||||||
|
2022
|
2022
|
2021
|
2022
|
2021
| |||||||||||||||||||
| Cost of revenue | $ | 121 | $ | 94 | $ | 86 | $ | 214 | $ | 173 | |||||||||||||
| Research and development | $ | 10 | $ | 9 | $ | 1 | $ | 19 | $ | 4 | |||||||||||||
| Sales, general and administrative | $ | 44 | $ | 46 | $ | 71 | $ | 91 | $ | 148 | |||||||||||||
| (B) Stock-based compensation consists of the following: | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 31, | May 1, | August 1, | July 31, | August 1, | |||||||||||||||||||
|
2022
|
2022
|
2021
|
2022
|
2021
| |||||||||||||||||||
| Cost of revenue | $ | 38 | $ | 38 | $ | 32 | $ | 76 | $ | 57 | |||||||||||||
| Research and development | $ | 452 | $ | 384 | $ | 297 | $ | 836 | $ | 573 | |||||||||||||
| Sales, general and administrative | $ | 159 | $ | 156 | $ | 136 | $ | 315 | $ | 264 | |||||||||||||
| (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). | |||||||||||||||||||||||
NVIDIA Announces Financial Results for Second Quarter Fiscal 2023
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