NVIDIA has revealed its financial performance for the first quarter of fiscal year 2025

Nirzhara Printers
May 23, 2024

 



NVIDIA (NASDAQ: NVDA) has released its financial results for the first quarter ended April 28, 2024, showcasing remarkable growth and significant milestones:

- Achieved record quarterly revenue of $26.0 billion, marking an impressive 18% increase from the previous quarter and a staggering 262% surge compared to the same period last year.

- Recorded record quarterly Data Center revenue of $22.6 billion, reflecting a robust 23% growth from the previous quarter and an extraordinary 427% surge from a year ago.

Jensen Huang, the founder and CEO of NVIDIA, expressed excitement about the company's role in driving the next industrial revolution, particularly through partnerships to transition traditional data centers to accelerated computing and establish AI factories. He highlighted the potential of AI to revolutionize various industries, enhancing productivity and driving revenue growth.

In addition to the remarkable financial performance, NVIDIA announced significant corporate actions:

- A ten-for-one forward stock split effective June 7, 2024, aimed at making stock ownership more accessible to employees and investors. This split will result in a proportionate increase in the number of authorized common stock shares.

- An increase in the quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock, equivalent to $0.01 per share on a post-split basis. The increased dividend will be payable on June 28, 2024, to shareholders of record as of June 11, 2024.

These announcements underscore NVIDIA's commitment to driving growth, innovation, and shareholder value.




Q1 Fiscal 2025 Financial Highlights:

**GAAP:**

- Revenue: $26,044 million, up 18% from Q4 FY24 and 262% from Q1 FY24.

- Gross margin: 78.4%, up 2.4 percentage points from Q4 FY24 and 13.8 percentage points from Q1 FY24.

- Operating expenses: $3,497 million, up 10% from Q4 FY24 and 39% from Q1 FY24.

- Operating income: $16,909 million, up 24% from Q4 FY24 and 690% from Q1 FY24.

- Net income: $14,881 million, up 21% from Q4 FY24 and 628% from Q1 FY24.

- Diluted earnings per share: $5.98, up 21% from Q4 FY24 and 629% from Q1 FY24.

**Non-GAAP:**

- Revenue: $26,044 million, up 18% from Q4 FY24 and 262% from Q1 FY24.

- Gross margin: 78.9%, up 2.2 percentage points from Q4 FY24 and 12.1 percentage points from Q1 FY24.

- Operating expenses: $2,501 million, up 13% from Q4 FY24 and 43% from Q1 FY24.

- Operating income: $18,059 million, up 22% from Q4 FY24 and 492% from Q1 FY24.

- Net income: $15,238 million, up 19% from Q4 FY24 and 462% from Q1 FY24.

- Diluted earnings per share: $6.12, up 19% from Q4 FY24 and 461% from Q1 FY24.

**Outlook for Q2 Fiscal 2025:**

- Revenue is expected to be $28.0 billion, plus or minus 2%.

- GAAP and non-GAAP gross margins are expected to be 74.8% and 75.5%, respectively, plus or minus 50 basis points, with full-year gross margins expected to be in the mid-70% range.

- GAAP and non-GAAP operating expenses are expected to be approximately $4.0 billion and $2.8 billion, respectively, with full-year operating expenses expected to grow in the low-40% range.

- GAAP and non-GAAP other income and expense are expected to be an income of approximately $300 million, excluding gains and losses from non-affiliated investments.

- GAAP and non-GAAP tax rates are expected to be 17%, plus or minus 1%, excluding any discrete items.




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

Data Center

Gaming and AI PC

  • First-quarter Gaming revenue was $2.6 billion, down 8% from the previous quarter and up 18% from a year ago. 
  • Introduced new AI gaming technologies at GDC for NVIDIA ACE and Neural Graphics.
  • Unveiled new AI performance optimizations and integrations for Windows to deliver maximum performance on NVIDIA GeForce RTX AI PCs and workstations.
  • Announced more blockbuster games that will incorporate RTX technology, including Star Wars Outlaws and Black Myth Wukong.
  • Added support for new models, including Google’s Gemma, for ChatRTX, which brings chatbot capabilities to RTX-powered Windows PCs and workstations.

Professional Visualization

Automotive and Robotics

  • First-quarter Automotive revenue was $329 million, up 17% from the previous quarter and up 11% from a year ago.
  • Announced BYD, XPENG, GAC’s AION Hyper, Nuro and others have chosen the next-generation NVIDIA DRIVE Thor™ platform, which now features Blackwell GPU architecture, to power their next-generation consumer and commercial electric vehicle fleets.
  • Revealed U.S. and China electric vehicle makers Lucid and IM Motors are using the NVIDIA DRIVE Orin™ platform for vehicle models targeting the European market.
  • Announced an array of partners are using NVIDIA generative AI technologies to transform in-vehicle experiences.
  • Introduced the Project GR00T foundation model for humanoid robots and major Isaac robotics platform updates.

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com.

Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2025 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its second quarter of fiscal 2025.

Non-GAAP Measures
To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, acquisition-related and other costs, other, gains and losses from non-affiliated investments, interest expense related to amortization of debt discount, and the associated tax impact of these items where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases related to property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.




NVIDIA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)   

   

  Three Months Ended

  April 28, April 30,

  2024 2023 

   

Revenue $ 26,044 $ 7,192  

Cost of revenue 5,638 2,544  

Gross profit 20,406 4,648  

   

Operating expenses  

  Research and development         2,720 1,875  

  Sales, general and administrative 777         633  

  Total operating expenses 3,497 2,508  

   

Operating Income                                 16,909 2,140  

  Interest income                         359          150  

  Interest expense                         (64 )         (66 )

  Other, net                                 75          (15 )

  Other income (expense), net 370                 69  

   

Income before income tax                  17,279 2,209  

Income tax expense                             2,398 166  

Net income                                         $ 14,881 $ 2,043  

   

Net income per share:  

  Basic $ 6.04 $ 0.83  

  Diluted $ 5.98 $ 0.82  

   

Weighted average shares used in per share computation:  

  Basic 2,462 2,470  

  Diluted 2,489 2,490  



NVIDIA CORPORATION  

CONDENSED CONSOLIDATED BALANCE SHEETS  

(In millions)  

(Unaudited)  

   

   

  April 28, January 28,  

  2024 2024  

ASSETS  

   

Current assets:  

  Cash, cash equivalents, and marketable securities                              $ 31,438 $ 25,984  

  Accounts receivable, net 12,365 9,999  

  Inventories 5,864 5,282  

  Prepaid expenses and other current assets 4,062 3,080  

  Total current assets 53,729 44,345  

   

Property and equipment, net 4,006 3,914  

Operating lease assets 1,532 1,346  

Goodwill 4,453 4,430  

Intangible assets, net 986 1,112  

Deferred income tax assets 7,798 6,081  

Other assets 4,568 4,500  

  Total assets $ 77,072 $ 65,728  

   

LIABILITIES AND SHAREHOLDERS' EQUITY  

   

Current liabilities:  

  Accounts payable $ 2,715 $ 2,699  

  Accrued and other current liabilities 11,258 6,682  

  Short-term debt 1,250 1,250  

  Total current liabilities 15,223 10,631  

   

Long-term debt 8,460 8,459  

Long-term operating lease liabilities 1,281 1,119  

Other long-term liabilities 2,966 2,541  

  Total liabilities 27,930 22,750  

   

Shareholders' equity 49,142 42,978  

  Total liabilities and shareholders' equity $ 77,072 $ 65,728  



NVIDIA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

   

  Three Months Ended

  April 28, April 30,

  2024 2023

Cash flows from operating activities:  

Net income $ 14,881 $ 2,043  

Adjustments to reconcile net income to net cash provided by operating activities:  

  Stock-based compensation expense 1,011 735  

  Depreciation and amortization 410 384  

  Realized and unrealized (gains) losses on investments in non-affiliated entities, net (69 ) 14  

  Deferred income taxes (1,577 ) (1,135 )

  Other (145 ) (34 )

Changes in operating assets and liabilities, net of acquisitions:  

  Accounts receivable (2,366 ) (252 )

  Inventories (577 ) 566  

  Prepaid expenses and other assets (726 ) (215 )

  Accounts payable (22 ) 11  

  Accrued and other current liabilities 4,202 689  

  Other long-term liabilities 323 105  

Net cash provided by operating activities 15,345 2,911  

Cash flows from investing activities:  

  Proceeds from maturities of marketable securities 4,004 2,512  

  Proceeds from sales of marketable securities 149 -  

  Purchases of marketable securities (9,303 ) (2,801 )

  Purchase related to property and equipment and intangible assets (369 ) (248 )

  Acquisitions, net of cash acquired (39 ) (83 )

  Investments in non-affiliated entities (135 ) (221 )

Net cash used in investing activities (5,693 ) (841 )

Cash flows from financing activities:  

  Proceeds related to employee stock plans 285 246  

  Payments related to repurchases of common stock (7,740 ) -  

  Payments related to tax on restricted stock units (1,752 ) (507 )

  Dividends paid (98 ) (99 )

  Principal payments on property and equipment and intangible assets (40 ) (20 )

Net cash used in financing activities (9,345 ) (380 )

Change in cash and cash equivalents 307 1,690  

Cash and cash equivalents at beginning of period 7,280 3,389  

Cash and cash equivalents at end of period $ 7,587 $ 5,079



NVIDIA CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

(Unaudited)


   

  Three Months Ended

  April 28, January 28, April 30,

  2024 2024 2023

   

GAAP gross profit $ 20,406 $ 16,791 $ 4,648  

 GAAP gross margin 78.4% 76.0% 64.6%  

  Acquisition-related and other costs (A) 119 119 119  

  Stock-based compensation expense (B) 36 45 27  

  Other (C) (1 ) 4 8  

Non-GAAP gross profit $ 20,560 $ 16,959 $ 4,802  

 Non-GAAP gross margin 78.9% 76.7% 66.8%  

   

GAAP operating expenses $ 3,497 $ 3,176 $ 2,508  

  Stock-based compensation expense (B) (975 ) (948 ) (708 )

  Acquisition-related and other costs (A) (21 ) (18 ) (54 )

  Other (C) - - 4  

Non-GAAP operating expenses $ 2,501 $ 2,210 $ 1,750  

   

GAAP operating income $ 16,909 $ 13,615 $ 2,140  

  Total impact of non-GAAP adjustments to operating income 1,150 1,134 912  

Non-GAAP operating income $ 18,059 $ 14,749 $ 3,052  

   


GAAP other income (expense), net $ 370 $ 491 $ 69  

  (Gains) losses from non-affiliated investments (69 ) (260 ) 14  

  Interest expense related to amortization of debt discount 1 1 1  

Non-GAAP other income (expense), net $ 302 $ 232 $ 84  

   

GAAP net income $ 14,881 $ 12,285 $ 2,043  

  Total pre-tax impact of non-GAAP adjustments 1,082 875 927  

  Income tax impact of non-GAAP adjustments (D) (725 ) (321 ) (257 )

Non-GAAP net income $ 15,238 $ 12,839 $ 2,713  

   

Diluted net income per share  

  GAAP $ 5.98 $ 4.93 $ 0.82  

  Non-GAAP $ 6.12 $ 5.16 $ 1.09  

   

Weighted average shares used in diluted net income per share computation 2,489 2,490 2,490  

   

GAAP net cash provided by operating activities $ 15,345 $ 11,499 $ 2,911  

  Purchases related to property and equipment and intangible assets (369 ) (253 ) (248 )

  Principal payments on property and equipment and intangible assets (40 ) (29 ) (20 )

Free cash flow $ 14,936 $ 11,217 $ 2,643  

   


(A) Acquisition-related and other costs are comprised of amortization of intangible assets and transaction costs, included in the following line items:


  Three Months Ended

  April 28, January 28, April 30,

  2024 2024 2023

  Cost of revenue $ 119 $ 119 $ 119  

  Research and development $ 12 $ 12 $ 12  

  Sales, general and administrative $ 8 $ 6 $ 42  


(B) Stock-based compensation consists of the following:


  Three Months Ended

  April 28, January 28, April 30,

  2024 2024 2023

  Cost of revenue $ 36 $ 45 $ 27  

  Research and development $ 727 $ 706 $ 524  

  Sales, general and administrative $ 248 $ 242 $ 184  

(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).



NVIDIA CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK

   

 

  Q2 FY2025

Outlook

  ($ in millions)

   

GAAP gross margin 74.8 %

  Adjustments for stock-based compensation expense, acquisition-related costs, and other costs 0.7 %

Non-GAAP gross margin 75.5 %

   

GAAP operating expenses $ 3,950  

  Adjustments for stock-based compensation expense, acquisition-related costs, and other costs (1,150 )

Non-GAAP operating expenses $ 2,800  

   

 





Media Contacts

Simona Jankowski

Investor Relations

sjankowski@nvidia.com

Mylene Mangalindan

NVIDIA

mmangalindan@nvidia.com

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About NVIDIA

NVIDIA (NASDAQ: NVDA) is the world leader in accelerated computing.


Certain statements in this press release including, but not limited to, statements as to: companies and countries building AI factories with NVIDIA accelerated computing to produce artificial intelligence; accelerating demand for generative AI training and inference on the Hopper platform; the expanding reach of generative AI; generative AI expanding to consumer internet companies, and enterprise, sovereign AI, automotive, and healthcare customers, creating multiple multibillion-dollar vertical markets; NVIDIA being poised for the next wave of growth; the Blackwell platform in full production and forming the foundation for trillion-parameter-scale generative AI; Spectrum-X opening a brand-new market for NVIDIA to bring large-scale AI to Ethernet-only data centers; NVIDIA NIM as NVIDIA’s new software offering that delivers enterprise-grade, optimized generative AI run on CUDA everywhere — from the cloud, to on-prem data centers and RTX AI PCs — through NVIDIA’s expansive network of ecosystem partners; NVIDIA's forward stock split; NVIDIA’s next quarterly cash dividend; gross margins being in the mid-70% range for the full year; full-year operating expenses growing in the low-40% range; and NVIDIA’s financial outlook and expected tax rates for the second quarter of fiscal 2025 are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; and unexpected loss of performance of our products or technologies when integrated into systems, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.


© 2024 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce NOW, NVIDIA DGX SuperPOD, NVIDIA DRIVE, NVIDIA DRIVE Orin, NVIDIA DRIVE Thor, NVIDIA RTX and NVIDIA Spectrum are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice.




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