NVIDIA Announces Financial Results for Third Quarter Fiscal 2025
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NVIDIA CORPORATION | | |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | | | (In millions, except per share data) | | | (Unaudited) | | | | | | | | | | | | | | | | | |
Three Months Ended | |
Nine Months Ended | | | | | |
October 27, | |
July 28, | |
October 29, | |
October 27, | |
October 29, | | | | | | |
2024 | | | |
2024 | | | |
2023 | | | |
2024 | | | |
2023 | | | | | | | | | | | | | | | | | | GAAP gross profit | $ | 26,156 | | | $ | 22,574 | | | $ | 13,400 | | | $ | 69,135 | | | $ | 27,510 | | | | GAAP gross margin | | 74.6 | % | | | 75.1 | % | | | 74.0 | % | | | 75.8 | % | | | 70.9 | % | | | | Acquisition-related and other costs (A) | | 116 | | | | 118 | | | | 119 | | | | 355 | | | | 358 | | | | | Stock-based compensation expense (B) | | 50 | | | | 40 | | | | 38 | | | | 125 | | | | 96 | | | | | Other (C) | | | - | | | | (3 | ) | | | 26 | | | | (4 | ) | | | 36 | | | |
Non-GAAP gross profit |
$ |
26,322 | | |
$ |
22,729 | | |
$ |
13,583 | | |
$ |
69,611 | | |
$ |
28,000 | | | |
Non-GAAP gross margin | |
75.0 |
% | | |
75.7 |
% | | |
75.0 |
% | | |
76.4 |
% | | |
72.1 |
% | | | | | | | | | | | | | | | | | GAAP operating expenses | $ | 4,287 | | | $ | 3,932 | | | $ | 2,983 | | | $ | 11,716 | | | $ | 8,152 | | | | | Stock-based compensation expense (B) | | (1,202 | ) | | | (1,114 | ) | | | (941 | ) | | | (3,291 | ) | | | (2,459 | ) | | | | Acquisition-related and other costs (A) | | (39 | ) | | | (26 | ) | | | (16 | ) | | | (86 | ) | | | (88 | ) | | | | Other (C) | | | - | | | | - | | | | - | | | | - | | | | 10 | | | |
Non-GAAP operating expenses |
$ |
3,046 | | |
$ |
2,792 | | |
$ |
2,026 | | |
$ |
8,339 | | |
$ |
5,615 | | | | | | | | | | | | | | | | | | GAAP operating income | $ | 21,869 | | | $ | 18,642 | | | $ | 10,417 | | | $ | 57,419 | | | $ | 19,358 | | | | | Total impact of non-GAAP adjustments to operating income | | 1,407 | | | | 1,295 | | | | 1,140 | | | | 3,853 | | | | 3,027 | | | |
Non-GAAP operating income |
$ |
23,276 | | |
$ |
19,937 | | |
$ |
11,557 | | |
$ |
61,272 | | |
$ |
22,385 | | | | | | | | | | | | | | | | | | GAAP other income (expense), net | $ | 447 | | | $ | 572 | | | $ | 105 | | | $ | 1,390 | | | $ | 354 | | | | | (Gains) losses from non-affiliated investments and publicly-held equity securities, net | | (37 | ) | | | (193 | ) | | | 69 | | | | (302 | ) | | | 23 | | | | | Interest expense related to amortization of debt discount | | 1 | | | | 1 | | | | 1 | | | | 3 | | | | 3 | | | |
Non-GAAP other income (expense), net |
$ |
411 | | |
$ |
380 | | |
$ |
175 | | |
$ |
1,091 | | |
$ |
380 | | | | | | | | | | | | | | | | | | GAAP net income | $ | 19,309 | | | $ | 16,599 | | | $ | 9,243 | | | $ | 50,789 | | | $ | 17,475 | | | | | Total pre-tax impact of non-GAAP adjustments | | 1,371 | | | | 1,103 | | | | 1,210 | | | | 3,554 | | | | 3,053 | | | | | Income tax impact of non-GAAP adjustments (D) | | (670 | ) | | | (750 | ) | | | (433 | ) | | | (2,144 | ) | | | (1,055 | ) | | |
Non-GAAP net income |
$ |
20,010 | | |
$ |
16,952 | | |
$ |
10,020 | | |
$ |
52,199 | | |
$ |
19,473 | | | | | | | | | | | | | | | | | | Diluted net income per share (E) | | | | | | | | | | | | | GAAP | | $ | 0.78 | | | $ | 0.67 | | | $ | 0.37 | | | $ | 2.04 | | | $ | 0.70 | | | | | Non-GAAP | | $ | 0.81 | | | $ | 0.68 | | | $ | 0.40 | | | $ | 2.10 | | | $ | 0.78 | | | | | | | | | | | | | | | | | | Weighted average shares used in diluted net income per share computation (E) | | 24,774 | | | | 24,848 | | | | 24,940 | | | | 24,837 | | | | 24,940 | | | | | | | | | | | | | | | | | | GAAP net cash provided by operating activities | $ | 17,629 | | | $ | 14,489 | | | $ | 7,333 | | | $ | 47,460 | | | $ | 16,591 | | | | | Purchases related to property and equipment and intangible assets | | (813 | ) | | | (977 | ) | | | (278 | ) | | | (2,159 | ) | | | (815 | ) | | | | Principal payments on property and equipment and intangible assets | | (29 | ) | | | (29 | ) | | | (13 | ) | | | (97 | ) | | | (44 | ) | | |
Free cash flow | |
$ |
16,787 | | |
$ |
13,483 | | |
$ |
7,042 | | |
$ |
45,204 | | |
$ |
15,732 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items: | | | | | |
Three Months Ended | |
Nine Months Ended | | | | | |
October 27, | |
July 28, | |
October 29, | |
October 27, | |
October 29, | | | | | | |
2024 | | | |
2024 | | | |
2023 | | | |
2024 | | | |
2023 | | | | | Cost of revenue | $ | 116 | | | $ | 118 | | | $ | 119 | | | $ | 355 | | | $ | 358 | | | | | Research and development | $ | 23 | | | $ | 17 | | | $ | 12 | | | $ | 52 | | | $ | 37 | | | | | Sales, general and administrative | $ | 16 | | | $ | 9 | | | $ | 4 | | | $ | 34 | | | $ | 51 | | | | | | | | | | | | | | | | | | (B) Stock-based compensation consists of the following: | | | | | | | | |
Three Months Ended | |
Nine Months Ended | | | | | |
October 27, | |
July 28, | |
October 29, | |
October 27, | |
October 29, | | | | | | |
2024 | | | |
2024 | | | |
2023 | | | |
2024 | | | |
2023 | | | | | Cost of revenue | $ | 50 | | | $ | 40 | | | $ | 38 | | | $ | 125 | | | $ | 96 | | | | | Research and development | $ | 910 | | | $ | 832 | | | $ | 701 | | | $ | 2,469 | | | $ | 1,826 | | | | | Sales, general and administrative | $ | 292 | | | $ | 282 | | | $ | 240 | | | $ | 822 | | | $ | 633 | | | | | | | | | | | | | | | | | | (C) Other consists of IP-related costs and assets held for sale related adjustments | | | | | | | | | | | | | | | | | (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). | | | | | | | | | | | | | | | | | (E) Reflects a ten-for-one stock split on June 7, 2024 | | | | | | | | | | | | | | | | | | | | |
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