NVIDIA Announces Financial Results for Third Quarter Fiscal 2024

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

		Three Months Ended									Nine Months Ended
		October 29,			July 30,			October 30,			October 29,			October 30,
		2023			2023			2022			2023			2022

GAAP gross profit		$	13,400		$	9,462		$	3,177		$	27,510		$	11,523
GAAP gross margin			74.0	%		70.1	%		53.6	%		70.9	%		55.1	%
	Acquisition-related and other costs (A)		119			119			120			358			335
	Stock-based compensation expense (B)		38			31			32			96			108
	IP-related costs		26			2			-			36			-
Non-GAAP gross profit		$	13,583		$	9,614		$	3,329		$	28,000		$	11,966
Non-GAAP gross margin			75.0	%		71.2	%		56.1	%		72.1	%		57.2	%

GAAP operating expenses		$	2,983		$	2,662		$	2,576		$	8,152		$	8,555
	Stock-based compensation expense (B)		(941	)		(811	)		(713	)		(2,459	)		(1,863	)
	Acquisition-related and other costs (A)		(16	)		(18	)		(54	)		(88	)		(164	)
	Acquisition termination cost		-			-			-			-			(1,353	)
	Other (C)		-			5			(16	)		10			(25	)
Non-GAAP operating expenses		$	2,026		$	1,838		$	1,793		$	5,615		$	5,150

GAAP operating income		$	10,417		$	6,800		$	601		$	19,358		$	2,968
	Total impact of non-GAAP adjustments to operating income		1,140			976			935			3,027			3,848
Non-GAAP operating income		$	11,557		$	7,776		$	1,536		$	22,385		$	6,816

GAAP other income (expense), net		$	105		$	181		$	12		$	354		$	(75	)
	(Gains) losses from non-affiliated investments		69			(62	)		11			23			36
	Interest expense related to amortization of debt discount		1			1			1			3			3
Non-GAAP other income (expense), net		$	175		$	120		$	24		$	380		$	(36	)

GAAP net income		$	9,243		$	6,188		$	680		$	17,475		$	2,954
	Total pre-tax impact of non-GAAP adjustments		1,210			915			947			3,053			3,887
	Income tax impact of non-GAAP adjustments (D)		(433	)		(363	)		(171	)		(1,055	)		(649	)
Non-GAAP net income		$	10,020		$	6,740		$	1,456		$	19,473		$	6,192

Diluted net income per share
	GAAP	$	3.71		$	2.48		$	0.27		$	7.01		$	1.17
	Non-GAAP	$	4.02		$	2.70		$	0.58		$	7.81		$	2.46

Weighted average shares used in diluted net income per share computation			2,494			2,499			2,499			2,494			2,517

GAAP net cash provided by operating activities		$	7,333		$	6,348		$	392		$	16,591		$	3,393
	Purchases related to property and equipment and intangible assets		(278	)		(289	)		(530	)		(815	)		(1,324	)
	Principal payments on property and equipment and intangible assets		(13	)		(11	)		(18	)		(44	)		(54	)
Free cash flow		$	7,042		$	6,048		$	(156	)	$	15,732		$	2,015



(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									Nine Months Ended
		October 29,			July 30,			October 30,			October 29,			October 30,
			2023			2023			2022			2023			2022
	Cost of revenue	$	119		$	119		$	120		$	358		$	335
	Research and development	$	12		$	12		$	10		$	37		$	29
	Sales, general and administrative	$	4		$	6		$	44		$	51		$	135

(B) Stock-based compensation consists of the following:
		Three Months Ended									Nine Months Ended
		October 29,			July 30,			October 30,			October 29,			October 30,
			2023			2023			2022			2023			2022
	Cost of revenue	$	38		$	31		$	32		$	96		$	108
	Research and development	$	701		$	600		$	530		$	1,826		$	1,365
	Sales, general and administrative	$	240		$	211		$	183		$	633		$	498

(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).

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