News

NVIDIA Announces Financial Results for First Quarter Fiscal 2025

Published

6 months ago

May 23, 2024

NVIDIA Announces Financial Results for First Quarter Fiscal 2025

Report quarterly income of $26.0 billion, up 18% from This fall and up 262% from a yr in the past
Report quarterly Information Heart income of $22.6 billion, up 23% from This fall and up 427% from a yr in the past
Ten-for-one ahead inventory cut up efficient June 7, 2024
Quarterly money dividend raised 150% to $0.01 per share on a post-split foundation

NVIDIA (NASDAQ: NVDA) at this time reported income for the primary quarter ended April 28, 2024, of $26.0 billion, up 18% from the earlier quarter and up 262% from a yr in the past.

For the quarter, GAAP earnings per diluted share was $5.98, up 21% from the earlier quarter and up 629% from a yr in the past. Non-GAAP earnings per diluted share was $6.12, up 19% from the earlier quarter and up 461% from a yr in the past.

“The subsequent industrial revolution has begun — corporations and international locations are partnering with NVIDIA to shift the trillion-dollar conventional knowledge facilities to accelerated computing and construct a brand new sort of information middle — AI factories — to provide a brand new commodity: synthetic intelligence,” mentioned Jensen Huang, founder and CEO of NVIDIA. “AI will deliver vital productiveness good points to almost each business and assist corporations be extra cost- and energy-efficient, whereas increasing income alternatives.

“Our knowledge middle development was fueled by robust and accelerating demand for generative AI coaching and inference on the Hopper platform. Past cloud service suppliers, generative AI has expanded to client web corporations, and enterprise, sovereign AI, automotive and healthcare clients, creating a number of multibillion-dollar vertical markets.

“We’re poised for our subsequent wave of development. The Blackwell platform is in full manufacturing and varieties the muse for trillion-parameter-scale generative AI. Spectrum-X opens a brand-new marketplace for us to deliver large-scale AI to Ethernet-only knowledge facilities. And NVIDIA NIM is our new software program providing that delivers enterprise-grade, optimized generative AI to run on CUDA in all places — from the cloud to on-prem knowledge facilities and RTX AI PCs — by way of our expansive community of ecosystem companions.”

NVIDIA additionally introduced a ten-for-one ahead inventory cut up of NVIDIA’s issued widespread inventory to make inventory possession extra accessible to staff and traders. The cut up might be effected by way of an modification to NVIDIA’s Restated Certificates of Incorporation, which can lead to a proportionate improve within the variety of shares of approved widespread inventory. Every report holder of widespread inventory as of the shut of market on Thursday, June 6, 2024, will obtain 9 further shares of widespread inventory, to be distributed after the shut of market on Friday, June 7, 2024. Buying and selling is anticipated to start on a split-adjusted foundation at market open on Monday, June 10, 2024.

NVIDIA is growing its quarterly money dividend by 150% from $0.04 per share to $0.10 per share of widespread inventory. The elevated dividend is equal to $0.01 per share on a post-split foundation and might be paid on Friday, June 28, 2024, to all shareholders of report on Tuesday, June 11, 2024.

Q1 Fiscal 2025 Abstract

GAAP
($ in hundreds of thousands, besides earnings per share)	Q1 FY25	This fall FY24	Q1 FY24	Q/Q	Y/Y
Income	$26,044	$22,103	$7,192	Up 18%	Up 262%
Gross margin	78.4%	76.0%	64.6%	Up 2.4 pts	Up 13.8 pts
Working bills	$3,497	$3,176	$2,508	Up 10%	Up 39%
Working earnings	$16,909	$13,615	$2,140	Up 24%	Up 690%
Internet earnings	$14,881	$12,285	$2,043	Up 21%	Up 628%
Diluted earnings per share	$5.98	$4.93	$0.82	Up 21%	Up 629%

Non-GAAP
($ in hundreds of thousands, besides earnings per share)	Q1 FY25	This fall FY24	Q1 FY24	Q/Q	Y/Y
Income	$26,044	$22,103	$7,192	Up 18%	Up 262%
Gross margin	78.9%	76.7%	66.8%	Up 2.2 pts	Up 12.1 pts
Working bills	$2,501	$2,210	$1,750	Up 13%	Up 43%
Working earnings	$18,059	$14,749	$3,052	Up 22%	Up 492%
Internet earnings	$15,238	$12,839	$2,713	Up 19%	Up 462%
Diluted earnings per share	$6.12	$5.16	$1.09	Up 19%	Up 461%

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

Income is anticipated to be $28.0 billion, plus or minus 2%.
GAAP and non-GAAP gross margins are anticipated to be 74.8% and 75.5%, respectively, plus or minus 50 foundation factors. For the complete yr, gross margins are anticipated to be within the mid-70% vary.
GAAP and non-GAAP working bills are anticipated to be roughly $4.0 billion and $2.8 billion, respectively. Full-year working bills are anticipated to develop within the low-40% vary.
GAAP and non-GAAP different earnings and expense are anticipated to be an earnings of roughly $300 million, excluding good points and losses from non-affiliated investments.
GAAP and non-GAAP tax charges are anticipated to be 17%, plus or minus 1%, excluding any discrete gadgets.

Highlights
NVIDIA achieved progress since its earlier earnings announcement in these areas:

Information Heart

Gaming and AI PC

First-quarter Gaming income was $2.6 billion, down 8% from the earlier quarter and up 18% from a yr in the past.
Launched new AI gaming applied sciences at GDC for NVIDIA ACE and Neural Graphics.
Unveiled new AI efficiency optimizations and integrations for Home windows to ship most efficiency on NVIDIA GeForce RTX AI PCs and workstations.
Introduced extra blockbuster video games that may incorporate RTX know-how, together with Star Wars Outlaws and Black Fantasy Wukong.
Added help for brand new fashions, together with Google’s Gemma, for ChatRTX, which brings chatbot capabilities to RTX-powered Home windows PCs and workstations.

Skilled Visualization

Automotive and Robotics

First-quarter Automotive income was $329 million, up 17% from the earlier quarter and up 11% from a yr in the past.
Introduced BYD, XPENG, GAC’s AION Hyper, Nuro and others have chosen the next-generation NVIDIA DRIVE Thor™ platform, which now options Blackwell GPU structure, to energy their next-generation client and business electrical car fleets.
Revealed U.S. and China electrical car makers Lucid and IM Motors are utilizing the NVIDIA DRIVE Orin™ platform for car fashions concentrating on the European market.
Introduced an array of companions are utilizing NVIDIA generative AI applied sciences to rework in-vehicle experiences.
Launched the Venture GR00T basis mannequin for humanoid robots and main Isaac robotics platform updates.

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s government vp and chief monetary officer, is obtainable at https://investor.nvidia.com.

Convention Name and Webcast Info
NVIDIA will conduct a convention name with analysts and traders to debate its first quarter fiscal 2025 monetary outcomes and present monetary prospects at this time at 2 p.m. Pacific time (5 p.m. Jap time). A stay webcast (listen-only mode) of the convention name might be accessible at NVIDIA’s investor relations web site, https://investor.nvidia.com. The webcast might be recorded and out there for replay till NVIDIA’s convention name to debate its monetary outcomes for its second quarter of fiscal 2025.

Non-GAAP Measures
To complement NVIDIA’s condensed consolidated monetary statements offered in accordance with GAAP, the corporate makes use of non-GAAP measures of sure elements of economic efficiency. These non-GAAP measures embody non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, non-GAAP earnings from operations, non-GAAP different earnings (expense), internet, non-GAAP internet earnings, non-GAAP internet earnings, or earnings, per diluted share, and free money move. For NVIDIA’s traders to be higher capable of evaluate its present outcomes with these of earlier durations, the corporate has proven a reconciliation of GAAP to non-GAAP monetary measures. These reconciliations regulate the associated GAAP monetary measures to exclude stock-based compensation expense, acquisition-related and different prices, different, good points and losses from non-affiliated investments, curiosity expense associated to amortization of debt low cost, and the related tax impression of these things the place relevant. Free money move is calculated as GAAP internet money supplied by working actions much less each purchases associated to property and gear and intangible property and principal funds on property and gear and intangible property. NVIDIA believes the presentation of its non-GAAP monetary measures enhances the consumer’s total understanding of the corporate’s historic monetary efficiency. The presentation of the corporate’s non-GAAP monetary measures will not be meant to be thought of in isolation or as an alternative choice to the corporate’s monetary outcomes ready in accordance with GAAP, and the corporate’s non-GAAP measures could also be completely different from non-GAAP measures utilized by different corporations.


NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In hundreds of thousands, besides per share knowledge)
(Unaudited)


			Three Months Ended
			April 28,			April 30,
			2024			2023

Income			$	26,044		$	7,192
Value of income				5,638			2,544
Gross revenue				20,406			4,648

Working bills
	Analysis and improvement			2,720			1,875
	Gross sales, common and administrative			777			633
		Complete working bills		3,497			2,508

Working Revenue				16,909			2,140
	Curiosity earnings			359			150
	Curiosity expense			(64	)		(66	)
	Different, internet			75			(15	)
		Different earnings (expense), internet		370			69

Revenue earlier than earnings tax				17,279			2,209
Revenue tax expense				2,398			166
Internet earnings			$	14,881		$	2,043

Internet earnings per share:
	Fundamental		$	6.04		$	0.83
	Diluted		$	5.98		$	0.82

Weighted common shares utilized in per share computation:
	Fundamental			2,462			2,470
	Diluted			2,489			2,490

NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In hundreds of thousands)
(Unaudited)


			April 28,		January 28,
			2024		2024
ASSETS

Present property:
	Money, money equivalents and marketable securities		$	31,438	$	25,984
	Accounts receivable, internet			12,365		9,999
	Inventories			5,864		5,282
	Pay as you go bills and different present property			4,062		3,080
		Complete present property		53,729		44,345

Property and gear, internet				4,006		3,914
Working lease property				1,532		1,346
Goodwill				4,453		4,430
Intangible property, internet				986		1,112
Deferred earnings tax property				7,798		6,081
Different property				4,568		4,500
		Complete property	$	77,072	$	65,728

LIABILITIES AND SHAREHOLDERS’ EQUITY

Present liabilities:
	Accounts payable		$	2,715	$	2,699
	Accrued and different present liabilities			11,258		6,682
	Brief-term debt			1,250		1,250
		Complete present liabilities		15,223		10,631

Lengthy-term debt				8,460		8,459
Lengthy-term working lease liabilities				1,281		1,119
Different long-term liabilities				2,966		2,541
		Complete liabilities		27,930		22,750

Shareholders’ fairness				49,142		42,978
		Complete liabilities and shareholders’ fairness	$	77,072	$	65,728

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In hundreds of thousands)
(Unaudited)

		Three Months Ended
		April 28,			April 30,
		2024			2023
Money flows from working actions:
Internet earnings		$	14,881		$	2,043
Changes to reconcile internet earnings to internet money supplied by working actions:
	Inventory-based compensation expense		1,011			735
	Depreciation and amortization		410			384
	Realized and unrealized (good points) losses on investments in non-affiliated entities, internet		(69	)		14
	Deferred earnings taxes		(1,577	)		(1,135	)
	Different		(145	)		(34	)
Modifications in working property and liabilities, internet of acquisitions:
	Accounts receivable		(2,366	)		(252	)
	Inventories		(577	)		566
	Pay as you go bills and different property		(726	)		(215	)
	Accounts payable		(22	)		11
	Accrued and different present liabilities		4,202			689
	Different long-term liabilities		323			105
Internet money supplied by working actions			15,345			2,911
Money flows from investing actions:
	Proceeds from maturities of marketable securities		4,004			2,512
	Proceeds from gross sales of marketable securities		149			–
	Purchases of marketable securities		(9,303	)		(2,801	)
	Buy associated to property and gear and intangible property		(369	)		(248	)
	Acquisitions, internet of money acquired		(39	)		(83	)
	Investments in non-affiliated entities		(135	)		(221	)
Internet money utilized in investing actions			(5,693	)		(841	)
Money flows from financing actions:
	Proceeds associated to worker inventory plans		285			246
	Funds associated to repurchases of widespread inventory		(7,740	)		–
	Funds associated to tax on restricted inventory models		(1,752	)		(507	)
	Dividends paid		(98	)		(99	)
	Principal funds on property and gear and intangible property		(40	)		(20	)
Internet money utilized in financing actions			(9,345	)		(380	)
Change in money and money equivalents			307			1,690
Money and money equivalents at starting of interval			7,280			3,389
Money and money equivalents at finish of interval		$	7,587		$	5,079

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In hundreds of thousands, besides per share knowledge)
(Unaudited)

		Three Months Ended
		April 28,			January 28,			April 30,
		2024			2024			2023

GAAP gross revenue		$	20,406		$	16,791		$	4,648
GAAP gross margin			78.4%			76.0%			64.6%
	Acquisition-related and different prices (A)		119			119			119
	Inventory-based compensation expense (B)		36			45			27
	Different (C)		(1	)		4			8
Non-GAAP gross revenue		$	20,560		$	16,959		$	4,802
Non-GAAP gross margin			78.9%			76.7%			66.8%

GAAP working bills		$	3,497		$	3,176		$	2,508
	Inventory-based compensation expense (B)		(975	)		(948	)		(708	)
	Acquisition-related and different prices (A)		(21	)		(18	)		(54	)
	Different (C)		–			–			4
Non-GAAP working bills		$	2,501		$	2,210		$	1,750

GAAP working earnings		$	16,909		$	13,615		$	2,140
	Complete impression of non-GAAP changes to working earnings		1,150			1,134			912
Non-GAAP working earnings		$	18,059		$	14,749		$	3,052

GAAP different earnings (expense), internet		$	370		$	491		$	69
	(Beneficial properties) losses from non-affiliated investments		(69	)		(260	)		14
	Curiosity expense associated to amortization of debt low cost		1			1			1
Non-GAAP different earnings (expense), internet		$	302		$	232		$	84

GAAP internet earnings		$	14,881		$	12,285		$	2,043
	Complete pre-tax impression of non-GAAP changes		1,082			875			927
	Revenue tax impression of non-GAAP changes (D)		(725	)		(321	)		(257	)
Non-GAAP internet earnings		$	15,238		$	12,839		$	2,713

Diluted internet earnings per share
	GAAP	$	5.98		$	4.93		$	0.82
	Non-GAAP	$	6.12		$	5.16		$	1.09

Weighted common shares utilized in diluted internet earnings per share computation			2,489			2,490			2,490

GAAP internet money supplied by working actions		$	15,345		$	11,499		$	2,911
	Purchases associated to property and gear and intangible property		(369	)		(253	)		(248	)
	Principal funds on property and gear and intangible property		(40	)		(29	)		(20	)
Free money move		$	14,936		$	11,217		$	2,643



(A) Acquisition-related and different prices are comprised of amortization of intangible property and transaction prices, and are included within the following line gadgets:
		Three Months Ended
		April 28,			January 28,			April 30,
		2024			2024			2023
	Value of income	$	119		$	119		$	119
	Analysis and improvement	$	12		$	12		$	12
	Gross sales, common and administrative	$	8		$	6		$	42

(B) Inventory-based compensation consists of the next:
		Three Months Ended
		April 28,			January 28,			April 30,
		2024			2024			2023
	Value of income	$	36		$	45		$	27
	Analysis and improvement	$	727		$	706		$	524
	Gross sales, common and administrative	$	248		$	242		$	184

(C) Different consists of IP-related prices and property held on the market associated changes.

(D) Revenue tax impression of non-GAAP changes, together with the popularity of extra tax advantages or deficiencies associated to stock-based compensation beneath GAAP accounting normal (ASU 2016-09).

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK


		Q2 FY2025 Outlook
		($ in hundreds of thousands)

GAAP gross margin			74.8	%
	Influence of stock-based compensation expense, acquisition-related prices, and different prices		0.7	%
Non-GAAP gross margin			75.5	%

GAAP working bills		$	3,950
	Inventory-based compensation expense, acquisition-related prices, and different prices		(1,150	)
Non-GAAP working bills		$	2,800