Markets soar on NVIDIA Earnings

Markets soar on NVIDIA Earnings

Markets soar on NVIDIA Earnings

The S&p 500 FUTURES HAVE AMASSED A 1.5% Reversal post NVIDIA earnings. The S&P has gained a whopping 600 billion in added value..

  • Record quarterly revenue of $22.1 billion, up 22% from Q3, up 265% from year ago 
  • Record quarterly Data Center revenue of $18.4 billion, up 27% from Q3, up 409% from year ago
  • Record full-year revenue of $60.9 billion, up 126%

SANTA CLARA, Calif., Feb. 21, 2024 (GLOBE NEWSWIRE) — NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 28, 2024, of $22.1 billion, up 22% from the previous quarter and up 265% from a year ago.

For the quarter, GAAP earnings per diluted share was $4.93, up 33% from the previous quarter and up 765% from a year ago. Non-GAAP earnings per diluted share was $5.16, up 28% from the previous quarter and up 486% from a year ago.

For fiscal 2024, revenue was up 126% to $60.9 billion. GAAP earnings per diluted share was $11.93, up 586% from a year ago. Non-GAAP earnings per diluted share was $12.96, up 288% from a year ago.

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of NVIDIA.

“Our Data Center platform is powered by increasingly diverse drivers — demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies. Vertical industries — led by auto, financial services and healthcare — are now at a multibillion-dollar level.

“NVIDIA RTX, introduced less than six years ago, is now a massive PC platform for generative AI, enjoyed by 100 million gamers and creators. The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward. Come join us at next month’s GTC, where we and our rich ecosystem will reveal the exciting future ahead,” he said.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on March 27, 2024, to all shareholders of record on March 6, 2024.

Q4 Fiscal 2024 Summary

GAAP
($ in millions, except earnings per share) Q4 FY24  Q3 FY24  Q4 FY23 Q/QY/Y
Revenue$22,103 $18,120 $6,051 Up 22%Up 265%
Gross margin 76.0%  74.0%  63.3% Up 2.0 ptsUp 12.7 pts
Operating expenses$3,176 $2,983 $2,576 Up 6%Up 23%
Operating income$13,615 $10,417 $1,257 Up 31%Up 983%
Net income$12,285 $9,243 $1,414 Up 33%Up 769%
Diluted earnings per share$4.93 $3.71 $0.57 Up 33%Up 765%
Non-GAAP
($ in millions, except earnings per share) Q4 FY24  Q3 FY24  Q4 FY23 Q/QY/Y
Revenue$22,103 $18,120 $6,051 Up 22%Up 265%
Gross margin 76.7%  75.0%  66.1% Up 1.7 ptsUp 10.6 pts
Operating expenses$2,210 $2,026 $1,775 Up 9%Up 25%
Operating income$14,749 $11,557 $2,224 Up 28%Up 563%
Net income$12,839 $10,020 $2,174 Up 28%Up 491%
Diluted earnings per share$5.16 $4.02 $0.88 Up 28%Up 486%
         

Fiscal 2024 Summary

GAAP
($ in millions, except earnings per share) FY24  FY23 Y/Y
Revenue$60,922 $26,974 Up 126%
Gross margin 72.7%  56.9% Up 15.8 pts
Operating expenses$11,329 $11,132 Up 2%
Operating income$32,972 $4,224 Up 681%
Net income$29,760 $4,368 Up 581%
Diluted earnings per share$11.93 $1.74 Up 586%
Non-GAAP
($ in millions, except earnings per share) FY24  FY23 Y/Y
Revenue$60,922 $26,974 Up 126%
Gross margin 73.8%  59.2% Up 14.6 pts
Operating expenses$7,825 $6,925 Up 13%
Operating income$37,134 $9,040 Up 311%
Net income$32,312 $8,366 Up 286%
Diluted earnings per share$12.96 $3.34 Up 288%
      

OutlookNVIDIA’s outlook for the first quarter of fiscal 2025 is as follows:

  • Revenue is expected to be $24.0 billion, plus or minus 2%.
  • GAAP and non-GAAP gross margins are expected to be 76.3% and 77.0%, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $3.5 billion and $2.5 billion, respectively.
  • GAAP and non-GAAP other income and expense are expected to be an income of approximately $250 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 17.0%, plus or minus 1%, excluding any discrete items.

Highlights

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

Data Center

Gaming

  • Fourth-quarter revenue was $2.9 billion, flat from the previous quarter and up 56% from a year ago. Full-year revenue rose 15% to $10.4 billion.
  • Launched GeForce RTX™ 40 SUPER Series GPUs, starting at $599, which support the latest NVIDIA RTX™ technologies, including DLSS 3.5 Ray Reconstruction and NVIDIA Reflex.
  • Announced generative AI capabilities for its installed base of over 100 million RTX AI PCs, including Tensor-RT™ LLM to accelerate inference on large language models, and Chat with RTX, a tech demo that lets users personalize a chatbot with their own content.
  • Introduced microservices for the NVIDIA Avatar Cloud Engine, allowing game and application developers to integrate state-of-the-art generative AI models into non-playable characters.
  • Reached the milestone of 500 AI-powered RTX games and applications utilizing NVIDIA DLSS, ray tracing and other NVIDIA RTX technologies.

Professional Visualization

  • Fourth-quarter revenue was $463 million, up 11% from the previous quarter and up 105% from a year ago. Full-year revenue rose 1% to $1.6 billion.
  • Announced adoption of NVIDIA Omniverse™ by the global automotive-configurator ecosystem.
  • Announced the NVIDIA RTX 2000 Ada Generation GPU, bringing the latest AI, graphics and compute technology to compact workstations.

Automotive

  • Fourth-quarter revenue was $281 million, up 8% from the previous quarter and down 4% from a year ago. Full-year revenue rose 21% to $1.1 billion.
  • Announced further adoption of its NVIDIA DRIVE® platform, with Great Wall Motors, ZEEKR and Xiaomi using DRIVE Orin™ to power intelligent automated-driving systems and Li Auto selecting DRIVE Thor™ as its centralized car computer.

CFO CommentaryCommentary 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 InformationNVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter and fiscal 2024 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 first quarter of fiscal 2025.

Non-GAAP MeasuresTo 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 acquisition termination costs, stock-based compensation expense, acquisition-related and other costs, IP-related 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.

About NVIDIASince its founding in 1993, NVIDIA (NASDAQ: NVDA) has been a pioneer in accelerated computing. The company’s invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics, ignited the era of modern AI and is fueling industrial digitalization across markets. NVIDIA is now a full-stack computing infrastructure company with data-center-scale offerings that are reshaping industry. More information at https://nvidianews.nvidia.com/.

For further information, contact:
  
Simona JankowskiMylene Mangalindan
Investor RelationsCorporate Communications
NVIDIA CorporationNVIDIA Corporation
[email protected][email protected]
  

Certain statements in this press release including, but not limited to, statements as to: demand for accelerated computing and generative AI surging worldwide across companies, industries and nations; our Data Center platform being powered by increasingly diverse drivers, including demand for data processing, training and inference from large cloud-service providers and GPU-specialized ones, as well as from enterprise software and consumer internet companies; vertical industries led by auto, financial, services and healthcare now at a multibillion-dollar level; NVIDIA RTX becoming a massive PC platform for generative AI enjoyed by 100 million gamers and creators; the year ahead bringing major new product cycles with exceptional innovations to help propel our industry forward; our upcoming conference at GTC, where we and our rich ecosystem will reveal the exciting future ahead; NVIDIA’s next quarterly cash dividend; NVIDIA’s financial outlook and expected tax rates for the first quarter of fiscal 2025; the benefits, impact, performance, features and availability of NVIDIA’s products and technologies, including NVIDIA AI platforms, NVIDIA DGX Cloud, NVIDIA DGX SuperPOD, NVIDIA NeMo Retriever, NVIDIA MONAI cloud APIs, NVIDIA Hopper architecture GPUs, NVIDIA GeForce RTX 40 SUPER Series GPUs, NVIDIA DLSS 3.5 Ray Reconstruction, NVIDIA Reflex, NVIDIA TensorRT-LLM, Chat with RTX, microservices for the NVIDIA Avatar Cloud Engine, NVIDIA DLSS, ray tracing and other NVIDIA RTX technologies, NVIDIA Omniverse, NVIDIA RTX 2000 Ada Generation GPU, NVIDIA DRIVE platform, NVIDIA DRIVE Orin and NVIDIA DRIVE Thor; and our collaborations with third parties 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, GeForce RTX, NVIDIA DGX, NVIDIA DGX SuperPOD, NVIDIA DRIVE, NVIDIA DRIVE Orin, NVIDIA DRIVE Thor, NVIDIA Hopper, NVIDIA MONAI, NVIDIA NeMo, NVIDIA Omniverse, NVIDIA RTX and TensorRT 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.

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
          
          
   Three Months Ended Twelve Months Ended
   January 28, January 29, January 28, January 29,
    2024   2023   2024   2023 
          
Revenue$22,103  $6,051  $60,922  $26,974 
Cost of revenue 5,312   2,218   16,621   11,618 
Gross profit 16,791   3,833   44,301   15,356 
          
Operating expenses       
 Research and development 2,465   1,951   8,675   7,339 
 Sales, general and administrative 711   625   2,654   2,440 
 Acquisition termination cost –   –   –   1,353 
  Total operating expenses 3,176   2,576   11,329   11,132 
          
Operating Income 13,615   1,257   32,972   4,224 
 Interest income 294   115   866   267 
 Interest expense (63)  (65)  (257)  (262)
 Other, net 260   (18)  237   (48)
  Other income (expense), net 491   32   846   (43)
          
Income before income tax 14,106   1,289   33,818   4,181 
Income tax expense (benefit) 1,821   (125)  4,058   (187)
Net income$12,285  $1,414  $29,760  $4,368 
          
Net income per share:       
 Basic$4.98  $0.57  $12.05  $1.76 
 Diluted$4.93  $0.57  $11.93  $1.74 
          
Weighted average shares used in per share computation:       
 Basic 2,466   2,464   2,469   2,487 
 Diluted 2,490   2,477   2,494   2,507 
NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
        
        
   January 28, January 29,
   2024 2023
ASSETS     
        
Current assets:     
 Cash, cash equivalents and marketable securities$25,984  $13,296 
 Accounts receivable, net 9,999   3,827 
 Inventories 5,282   5,159 
 Prepaid expenses and other current assets 3,080   791 
  Total current assets 44,345   23,073 
        
Property and equipment, net 3,914   3,807 
Operating lease assets 1,346   1,038 
Goodwill 4,430   4,372 
Intangible assets, net 1,112   1,676 
Deferred income tax assets 6,081   3,396 
Other assets 4,500   3,820 
  Total assets$65,728  $41,182 
        
LIABILITIES AND SHAREHOLDERS’ EQUITY 
        
Current liabilities:     
 Accounts payable$2,699  $1,193 
 Accrued and other current liabilities 6,682   4,120 
 Short-term debt 1,250   1,250 
  Total current liabilities 10,631   6,563 
        
Long-term debt 8,459   9,703 
Long-term operating lease liabilities 1,119   902 
Other long-term liabilities 2,541   1,913 
  Total liabilities 22,750   19,081 
        
Shareholders’ equity 42,978   22,101 
  Total liabilities and shareholders’ equity$65,728  $41,182 
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
          
          
   Three Months Ended Twelve Months Ended
   January 28,January 29,January 28, January 29,
    2024   2023   2024   2023 
          
Cash flows from operating activities:       
Net income$12,285  $1,414  $29,760  $4,368 
Adjustments to reconcile net income to net cash       
provided by operating activities:       
 Stock-based compensation expense 993   738   3,549   2,709 
 Depreciation and amortization 387   426   1,508   1,544 
 Deferred income taxes (78)  (647)  (2,489)  (2,164)
 (Gains) losses on investments in non-affiliated entities, net (260)  10   (238)  45 
 Acquisition termination cost –   –   –   1,353 
 Other (109)  20   (278)  (7)
Changes in operating assets and liabilities, net of acquisitions:       
 Accounts receivable (1,690)  1,081   (6,172)  822 
 Inventories (503)  (706)  (98)  (2,554)
 Prepaid expenses and other assets (1,184)  (210)  (1,522)  (1,517)
 Accounts payable 281   (193)  1,531   (551)
 Accrued and other current liabilities 1,072   166   2,025   1,341 
 Other long-term liabilities 305   150   514   252 
Net cash provided by operating activities 11,499   2,249   28,090   5,641 
Cash flows from investing activities:       
 Proceeds from maturities of marketable securities 1,731   2,633   9,732   19,425 
 Proceeds from sales of marketable securities 50   –   50   1,806 
 Purchases of marketable securities (7,524)  (2,133)  (18,211)  (11,897)
 Purchase related to property and equipment and intangible assets (253)  (509)  (1,069)  (1,833)
 Acquisitions, net of cash acquired –   –   (83)  (49)
 Investments in non-affiliated entities and other, net (113)  5   (985)  (77)
Net cash provided by (used in) investing activities (6,109)  (4)  (10,566)  7,375 
Cash flows from financing activities:       
 Proceeds related to employee stock plans –   5   403   355 
 Payments related to repurchases of common stock (2,660)  (1,212)  (9,533)  (10,039)
 Payments related to tax on restricted stock units (841)  (344)  (2,783)  (1,475)
 Repayment of debt –   –   (1,250)  – 
 Dividends paid (99)  (98)  (395)  (398)
 Principal payments on property and equipment and intangible assets (29)  (4)  (74)  (58)
 Other –   (3)  (1)  (2)
Net cash used in financing activities (3,629)  (1,656)  (13,633)  (11,617)
Change in cash and cash equivalents 1,761   589   3,891   1,399 
Cash and cash equivalents at beginning of period 5,519   2,800   3,389   1,990 
Cash and cash equivalents at end of period$7,280  $3,389  $7,280  $3,389 
          
Supplemental disclosures of cash flow information:       
 Cash paid for income taxes, net $1,874  $32  $6,549  $1,404 
 Cash paid for interest $26  $28  $252  $254 
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)
          
   Three Months Ended Twelve Months Ended
   January 28, October 29, January 29, January 28, January 29,
    2024   2023   2023   2024   2023 
            
GAAP gross profit$16,791  $13,400  $3,833  $44,301  $15,356 
GAAP gross margin 76.0%  74.0%  63.3%  72.7%  56.9%
 Acquisition-related and other costs (A) 119   119   120   477   455 
 Stock-based compensation expense (B) 45   38   30   141   138 
 IP-related costs  4   26   16   40   16 
Non-GAAP gross profit$16,959  $13,583  $3,999  $44,959  $15,965 
Non-GAAP gross margin 76.7%  75.0%  66.1%  73.8%  59.2%
            
GAAP operating expenses$3,176  $2,983  $2,576  $11,329  $11,132 
 Stock-based compensation expense (B)  (948)  (941)  (709)  (3,408)  (2,572)
 Acquisition-related and other costs (A) (18)  (16)  (54)  (106)  (219)
 Acquisition termination cost –   –   –   –   (1,353)
 Other (C)  –   –   (38)  10   (63)
Non-GAAP operating expenses$2,210  $2,026  $1,775  $7,825  $6,925 
            
GAAP operating income$13,615  $10,417  $1,257  $32,972  $4,224 
 Total impact of non-GAAP adjustments to operating income 1,134   1,140   967   4,162   4,816 
Non-GAAP operating income$14,749  $11,557  $2,224  $37,134  $9,040 
            
GAAP other income (expense), net$491  $105  $32  $846  $(43)
 (Gains) losses from non-affiliated investments (260)  69   10   (238)  45 
 Interest expense related to amortization of debt discount 1   1   1   4   5 
Non-GAAP other income (expense), net$232  $175  $43  $612  $7 
            
GAAP net income$12,285  $9,243  $1,414  $29,760  $4,368 
 Total pre-tax impact of non-GAAP adjustments 875   1,210   978   3,928   4,865 
 Income tax impact of non-GAAP adjustments (D) (321)  (433)  (218)  (1,376)  (867)
Non-GAAP net income$12,839  $10,020  $2,174  $32,312  $8,366 
            
Diluted net income per share         
 GAAP $4.93  $3.71  $0.57  $11.93  $1.74 
 Non-GAAP $5.16  $4.02  $0.88  $12.96  $3.34 
            
Weighted average shares used in diluted net income per share computation 2,490   2,494   2,477   2,494   2,507 
            
GAAP net cash provided by operating activities$11,499  $7,333  $2,249  $28,090  $5,641 
 Purchases related to property and equipment and intangible assets (253)  (278)  (509)  (1,069)  (1,833)
 Principal payments on property and equipment and intangible assets (29)  (13)  (4)  (74)  (58)
Free cash flow $11,217  $7,042  $1,736  $26,947  $3,750 
            
 
            
(A) Acquisition-related and other costs are comprised of amortization of intangible assets and transaction costs, and are included in the following line items:
   Three Months Ended Twelve Months Ended
   January 28, October 29, January 29, January 28, January 29,
    2024   2023   2023   2024   2023 
 Cost of revenue $119  $119  $120  $477  $455 
 Research and development $12  $12  $10  $49  $39 
 Sales, general and administrative $6  $4  $44  $57  $180 
            
(B) Stock-based compensation consists of the following:   
   Three Months Ended Twelve Months Ended
   January 28, October 29, January 29, January 28, January 29,
    2024   2023   2023   2024   2023 
 Cost of revenue $45  $38  $30  $141  $138 
 Research and development $706  $701  $527  $2,532  $1,892 
 Sales, general and administrative $242  $240  $182  $876  $680 
            
(C) Other consists of costs related to Russia branch office closure, assets held for sale related adjustments, legal settlement costs, and contributions.
            
(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
   
 
  Q1 FY2025 Outlook
  ($ in millions)
   
GAAP gross margin 76.3%
 Impact of stock-based compensation expense, acquisition-related costs, and other costs 0.7%
Non-GAAP gross margin 77.0%
   
GAAP operating expenses$3,480 
 Stock-based compensation expense, acquisition-related costs, and other costs (980)
Non-GAAP operating expenses$2,500 
   

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/38343cb8-8bc8-42b0-aa76-e3d280ae5507

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Check out other AI stocks here: NVDA BMR RGTI and other AI stocks – Cranes Financial Newshttps://cranesfinancialnews.com/2024/02/nvda-bmr-rgti-and-other-ai-stocks/

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