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NVIDIA Announces Financial Results for First Quarter Fiscal 2025

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NVIDIA Announces Financial Results for First Quarter Fiscal 2025
  • File quarterly income of $26.0 billion, up 18% from This autumn and up 262% from a 12 months in the past 
  • File quarterly Information Heart income of $22.6 billion, up 23% from This autumn and up 427% from a 12 months in the past
  • Ten-for-one ahead inventory break up efficient June 7, 2024
  • Quarterly money dividend raised 150% to $0.01 per share on a post-split foundation

NVIDIA (NASDAQ: NVDA) in the present day 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 12 months 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 12 months in the past. Non-GAAP earnings per diluted share was $6.12, up 19% from the earlier quarter and up 461% from a 12 months in the past.

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

“Our knowledge heart progress was fueled by sturdy 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 progress. The Blackwell platform is in full manufacturing and kinds the inspiration for trillion-parameter-scale generative AI. Spectrum-X opens a brand-new marketplace for us to carry 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 means of our expansive community of ecosystem companions.”

NVIDIA additionally introduced a ten-for-one ahead inventory break up of NVIDIA’s issued frequent inventory to make inventory possession extra accessible to workers and traders. The break up shall be effected by means of an modification to NVIDIA’s Restated Certificates of Incorporation, which is able to lead to a proportionate enhance within the variety of shares of approved frequent inventory. Every document holder of frequent inventory as of the shut of market on Thursday, June 6, 2024, will obtain 9 further shares of frequent inventory, to be distributed after the shut of market on Friday, June 7, 2024. Buying and selling is predicted to begin 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 frequent inventory. The elevated dividend is equal to $0.01 per share on a post-split foundation and shall be paid on Friday, June 28, 2024, to all shareholders of document on Tuesday, June 11, 2024.

Q1 Fiscal 2025 Abstract

GAAP
($ in thousands and thousands, besides earnings
per share)
Q1 FY25 This autumn 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%
Web 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 thousands and thousands, besides earnings
per share)
Q1 FY25 This autumn 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%
Web 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 predicted 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 12 months, 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 objects.

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 12 months 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 can incorporate RTX expertise, together with Star Wars Outlaws and Black Delusion 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 12 months 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 remodel in-vehicle experiences.
  • Launched the Challenge GR00T basis mannequin for humanoid robots and main Isaac robotics platform updates.

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

Convention Name and Webcast Data
NVIDIA will conduct a convention name with analysts and traders to debate its first quarter fiscal 2025 monetary outcomes and present monetary prospects in the present day at 2 p.m. Pacific time (5 p.m. Japanese time). A dwell webcast (listen-only mode) of the convention name shall be accessible at NVIDIA’s investor relations web site, https://investor.nvidia.com. The webcast shall be recorded and obtainable 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 monetary 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 stream. For NVIDIA’s traders to be higher in a position to examine its present outcomes with these of earlier intervals, the corporate has proven a reconciliation of GAAP to non-GAAP monetary measures. These reconciliations alter 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 influence of these things the place relevant. Free money stream is calculated as GAAP internet money supplied by working actions much less each purchases associated to property and tools and intangible belongings and principal funds on property and tools and intangible belongings. NVIDIA believes the presentation of its non-GAAP monetary measures enhances the person’s general understanding of the corporate’s historic monetary efficiency. The presentation of the corporate’s non-GAAP monetary measures shouldn’t be meant to be thought of in isolation or as an alternative to the corporate’s monetary outcomes ready in accordance with GAAP, and the corporate’s non-GAAP measures could also be totally different from non-GAAP measures utilized by different corporations.

 
NVIDIA CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands and 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 growth   2,720       1,875  
  Gross sales, common and administrative   777       633  
    Whole 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  
Web earnings $ 14,881     $ 2,043  
           
Web earnings per share:      
  Primary $ 6.04     $ 0.83  
  Diluted $ 5.98     $ 0.82  
           
Weighted common shares utilized in per share computation:      
  Primary   2,462       2,470  
  Diluted   2,489       2,490  
           

 

NVIDIA CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In thousands and thousands)  
(Unaudited)  
               
               
        April 28,   January 28,  
        2024   2024  
ASSETS          
               
Present belongings:          
  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 belongings     4,062     3,080  
    Whole present belongings     53,729     44,345  
               
Property and tools, internet     4,006     3,914  
Working lease belongings     1,532     1,346  
Goodwill     4,453     4,430  
Intangible belongings, internet     986     1,112  
Deferred earnings tax belongings     7,798     6,081  
Different belongings     4,568     4,500  
    Whole belongings   $ 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  
  Quick-term debt     1,250     1,250  
    Whole 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  
    Whole liabilities     27,930     22,750  
               
Shareholders’ fairness     49,142     42,978  
    Whole liabilities and shareholders’ fairness   $ 77,072   $ 65,728  
               

 

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands and thousands)
(Unaudited)
         
    Three Months Ended
    April 28,   April 30,
    2024   2023
Money flows from working actions:      
Web 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 belongings and liabilities, internet of acquisitions:      
  Accounts receivable   (2,366 )     (252 )
  Inventories   (577 )     566  
  Pay as you go bills and different belongings   (726 )     (215 )
  Accounts payable   (22 )     11  
  Accrued and different present liabilities   4,202       689  
  Different long-term liabilities   323       105  
Web 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 tools and intangible belongings   (369 )     (248 )
  Acquisitions, internet of money acquired   (39 )     (83 )
  Investments in non-affiliated entities   (135 )     (221 )
Web 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 frequent inventory   (7,740 )      
  Funds associated to tax on restricted inventory models   (1,752 )     (507 )
  Dividends paid   (98 )     (99 )
  Principal funds on property and tools and intangible belongings   (40 )     (20 )
Web 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 thousands and 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  
  Whole influence 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  
  (Features) 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  
  Whole pre-tax influence of non-GAAP changes     1,082       875       927  
  Revenue tax influence 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 tools and intangible belongings     (369 )     (253 )     (248 )
  Principal funds on property and tools and intangible belongings     (40 )     (29 )     (20 )
Free money stream    $ 14,936     $ 11,217     $ 2,643  
                           
                           
                           
(A) Acquisition-related and different prices are comprised of amortization of intangible belongings and transaction prices, and are included within the following line objects:  
      Three Months Ended
      April 28,   January 28,   April 30,
      2024   2024   2023
  Value of income   $ 119     $ 119     $ 119  
  Analysis and growth   $ 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 growth   $ 727     $ 706     $ 524  
  Gross sales, common and administrative   $ 248     $ 242     $ 184  
                           
(C) Different consists of IP-related prices and belongings held on the market associated changes.                         
                           
(D) Revenue tax influence of non-GAAP changes, together with the popularity of extra tax advantages or deficiencies associated to stock-based compensation beneath GAAP accounting customary (ASU 2016-09).  
                           

 

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
     
 
    Q2 FY2025
Outlook
    ($ in thousands and 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  
     

 

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