NVIDIA Announces Financial Results for Second Quarter Fiscal 2023
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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). |
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