nvda-20230524

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

______________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 24, 2023

NVIDIA CORPORATION


(Exact name of registrant as specified in its charter)


Delaware	0-23985	94-3177549
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

2788 San Tomas Expressway, Santa Clara, CA 95051

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (408) 486-2000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	NVDA	The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On May 24, 2023, NVIDIA Corporation, or the Company, issued a press release announcing its results for the quarter ended April 30, 2023. The press release is attached as Exhibit 99.1 and is incorporated herein by reference.

Attached hereto as Exhibit 99.2 and incorporated by reference herein is financial information and commentary by Colette M. Kress, Executive Vice President and Chief Financial Officer of the Company, regarding results of the quarter ended April 30, 2023, or the CFO Commentary. The CFO Commentary will be posted to http://investor.nvidia.com immediately after the filing of this Current Report.

The press release and CFO Commentary are furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information in this Current Report shall not be incorporated by reference in any filing with the U.S. Securities and Exchange Commission made by the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits


Exhibit						Description
99.1						Press Release, dated M ay 24 , 2023, entitled "NVIDIA Announces Financial Results for F irst Quarter Fiscal 202 4 "
99.2						CFO Commentary on F irst Quarter Fiscal 202 4 Results
104						The cover page of this Current Report on Form 8-K, formatted in inline XBRL (included as Exhibit 101)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


						NVIDIA Corporation
Date: May 24, 2023						By: /s/ Colette M. Kress
						Colette M. Kress
						Executive Vice President and Chief Financial Officer

FOR IMMEDIATE RELEASE:

NVIDIA Announces Financial Results for First Quarter Fiscal 2024

•Quarterly revenue of $7.19 billion, up 19% from previous quarter

•Record Data Center revenue of $4.28 billion

•Second quarter fiscal 2024 revenue outlook of $11.00 billion

SANTA CLARA, Calif.-May 24, 2023- NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter ended April 30, 2023, of $7.19 billion, down 13% from a year ago and up 19% from the previous quarter.

GAAP earnings per diluted share for the quarter were $0.82, up 28% from a year ago and up 44% from the previous quarter. Non-GAAP earnings per diluted share were $1.09, down 20% from a year ago and up 24% from the previous quarter.

“The computer industry is going through two simultaneous transitions — accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.

“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process.

“Our entire data center family of products — H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand and BlueField-3 DPU — is in production. We are significantly increasing our supply to meet surging demand for them,” he said.

During the first quarter of fiscal 2024, NVIDIA returned to shareholders $99 million in cash dividends.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on June 30, 2023, to all shareholders of record on June 8, 2023.

Q1 Fiscal 2024 Summary


GAAP
($ in millions, except earnings per share)	Q1 FY24		Q4 FY23		Q1 FY23		Q/Q	Y/Y
Revenue	$7,192		$6,051		$8,288		Up 19%	Down 13%
Gross margin	64.6	%	63.3	%	65.5	%	Up 1.3 pts	Down 0.9 pts
Operating expenses	$2,508		$2,576		$3,563		Down 3%	Down 30%
Operating income	$2,140		$1,257		$1,868		Up 70%	Up 15%
Net income	$2,043		$1,414		$1,618		Up 44%	Up 26%
Diluted earnings per share	$0.82		$0.57		$0.64		Up 44%	Up 28%


Non-GAAP
($ in millions, except earnings per share)	Q1 FY24		Q4 FY23		Q1 FY23		Q/Q	Y/Y
Revenue	$7,192		$6,051		$8,288		Up 19%	Down 13%
Gross margin	66.8	%	66.1	%	67.1	%	Up 0.7 pts	Down 0.3 pts
Operating expenses	$1,750		$1,775		$1,608		Down 1%	Up 9%
Operating income	$3,052		$2,224		$3,955		Up 37%	Down 23%
Net income	$2,713		$2,174		$3,443		Up 25%	Down 21%
Diluted earnings per share	$1.09		$0.88		$1.36		Up 24%	Down 20%

Outlook

NVIDIA’s outlook for the second quarter of fiscal 2024 is as follows:

•Revenue is expected to be $11.00 billion, plus or minus 2%.

•GAAP and non-GAAP gross margins are expected to be 68.6% and 70.0%, respectively, plus or minus 50 basis points.

•GAAP and non-GAAP operating expenses are expected to be approximately $2.71 billion and $1.90 billion, respectively.

•GAAP and non-GAAP other income and expense are expected to be an income of approximately $90 million, excluding gains and losses from non-affiliated investments.

•GAAP and non-GAAP tax rates are expected to be 14.0%, plus or minus 1%, excluding any discrete items.

Highlights

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

Data Center

•First-quarter revenue was a record $4.28 billion, up 14% from a year ago and up 18% from the previous quarter.

•Launched four inference platforms that combine the company’s full-stack inference software with the latest NVIDIA Ada, NVIDIA Hopper™ and NVIDIA Grace Hopper™ processors.

•Announced that Google Cloud is the first cloud provider offering the new NVIDIA L4 Tensor Core GPU to accelerate generative AI applications.

•Introduced NVIDIA AI Foundations to help businesses create and operate custom large language models and generative AI models trained with their own proprietary data for domain-specific tasks.

•Unveiled the NVIDIA cuLitho software library for computational lithography to accelerate the design and manufacturing of next-gen semiconductors.

•Expanded its partners offering new products and services based on the NVIDIA H100 Tensor Core GPU — including Amazon Web Services, Google Cloud, Microsoft Azure and Oracle Cloud Infrastructure.

•Partnered with ServiceNow to build generative AI across enterprise IT.

•Announced a collaboration with Medtronic to build an AI platform for medical devices.

•Joined with Dell Technologies in Project Helix to deliver full-stack solutions to help enterprises build and deploy trustworthy generative AI applications.

•Announced it is integrating NVIDIA AI Enterprise software into Microsoft’s Azure Machine Learning to help enterprises accelerate their AI initiatives.

Gaming

•First-quarter revenue was $2.24 billion, down 38% from a year ago and up 22% from the previous quarter.

•Announced the GeForce RTX™ 4060 family of GPUs, bringing the advancements of NVIDIA Ada Lovelace architecture and DLSS, starting at $299.

•Launched the GeForce RTX 4070 GPU based on the Ada architecture, which enables DLSS 3, real-time ray-tracing and the ability to run most modern games at over 100 frames per second at 1440p resolution.

•Added 36 DLSS gaming titles, bringing the total number of games and apps to 300.

•Made path tracing available for the first time on a major gaming title through collaboration with CD PROJEKT RED on an update to Cyberpunk 2077.

•Expanded GeForce NOW’s game titles to more than 1,600, including the first Microsoft Xbox game, Gears 5.

Professional Visualization

•First-quarter revenue was $295 million, down 53% from a year ago and up 31% from the previous quarter.

•Announced NVIDIA Omniverse™ Cloud, a fully managed service running in Microsoft Azure, for the development and deployment of industrial metaverse applications.

•Expanded its collaboration with Microsoft to connect Microsoft 365 applications with Omniverse.

•Announced six new NVIDIA RTX™ GPUs for mobile and desktop workstations based on the Ada architecture.

Automotive

•First-quarter revenue was a record $296 million, up 114% from a year ago and up 1% from the previous quarter.

•Announced that its automotive design win pipeline has grown to $14 billion over the next six years, up from $11 billion a year ago.

•Announced that the world’s leading electric vehicle maker BYD will extend its use of NVIDIA DRIVE Orin™ across new models.

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 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 second quarter of fiscal 2024.

Non-GAAP Measures

other, 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 of 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 NVIDIA

Since 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 the creation of the industrial metaverse. NVIDIA is now a full-stack computing company with data-center-scale offerings that are reshaping industry. More information at https://nvidianews.nvidia.com/.

###

For further information, contact:


Simona Jankowski						Robert Sherbin
Investor Relations						Corporate Communications
NVIDIA Corporation						NVIDIA Corporation
[email protected]						[email protected]

Certain statements in this press release including, but not limited to, statements as to: the computer industry going through two simultaneous transitions – accelerated computing and generative AI; installed global data center infrastructure transitioning from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process; NVIDIA’s entire data center family of products being in production; NVIDIA significantly increasing supply to meet surging demand; NVIDIA’s next quarterly cash dividend; NVIDIA’s financial outlook and expected tax rates for the second quarter of fiscal 2024; the benefits, impact, performance, features and availability of our products and technologies, including NVIDIA Ada, NVIDIA Hopper, NVIDIA Grace Hopper CPU, NVIDIA L4 Tensor Core GPU, NVIDIA AI Foundations, NVIDIA cuLitho software library, NVIDIA H100 Tensor Core GPU, NVIDIA AI Enterprise, GeForce RTX GPUs, DLSS 3, GeForce NOW, NVIDIA Omniverse Cloud, Omniverse, NVIDIA RTX GPUs, and NVIDIA DRIVE Orin; and the benefits and impact of our collaborations, including with Google Cloud, Amazon Web Services, Microsoft Azure, Oracle Cloud Infrastructure, ServiceNow, Medtronic, Dell Technologies, CD PROJEKT RED, Microsoft, and BYD 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; 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.

© 2023 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, GeForce NOW, GeForce RTX, NVIDIA DRIVE Orin, NVIDIA Grace Hopper, NVIDIA Hopper, NVIDIA Omniverse, and NVIDIA RTX 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
			April 30,		May 1,
			2023		2022

Revenue			$	7,192	$	8,288
Cost of revenue			2,544		2,857
Gross profit			4,648		5,431
Operating expenses
	Research and development		1,875		1,618
	Sales, general and administrative		633		592
	Acquisition termination cost		—		1,353
		Total operating expenses	2,508		3,563
Income from operations			2,140		1,868
	Interest income		150		18
	Interest expense		(66)		(68)
	Other, net		(15)		(13)
		Other income (expense), net	69		(63)
Income before income tax			2,209		1,805
Income tax expense			166		187
Net income			$	2,043	$	1,618

Net income per share:
	Basic		$	0.83	$	0.65
	Diluted		$	0.82	$	0.64

Weighted average shares used in per share computation:
	Basic		2,470		2,506
	Diluted		2,490		2,537


NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)

			April 30,		January 29,
			2023		2023
ASSETS

Current assets:
	Cash, cash equivalents and marketable securities		$	15,320	$	13,296
	Accounts receivable, net		4,080		3,827
	Inventories		4,611		5,159
	Prepaid expenses and other current assets		872		791
		Total current assets	24,883		23,073

Property and equipment, net			3,740		3,807
Operating lease assets			1,094		1,038
Goodwill			4,430		4,372
Intangible assets, net			1,541		1,676
Deferred income tax assets			4,568		3,396
Other assets			4,204		3,820
		Total assets	$	44,460	$	41,182

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
	Accounts payable		$	1,141	$	1,193
	Accrued and other current liabilities		4,869		4,120
	Short-term debt		1,250		1,250
		Total current liabilities	7,260		6,563

Long-term debt			9,704		9,703
Long-term operating lease liabilities			939		902
Other long-term liabilities			2,037		1,913
		Total liabilities	19,940		19,081

Shareholders' equity			24,520		22,101
		Total liabilities and shareholders' equity	$	44,460	$	41,182


NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
	Three Months Ended
	April 30,		May 1,
	2023		2022
Cash flows from operating activities:
Net income	$	2,043	$	1,618
Adjustments to reconcile net income to net cash
provided by operating activities:
Stock based compensation expense	735		578
Depreciation and amortization	384		334
Losses on investments in non affiliates, net	14		17
Deferred income taxes	(1,135)		(542)
Acquisition termination cost	—		1,353
Other	(34)		23
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(252)		(788)
Inventories	566		(560)
Prepaid expenses and other assets	(215)		(1,261)
Accounts payable	11		255
Accrued liabilities and other current liabilities	689		634
Other long-term liabilities	105		70
Net cash provided by operating activities	2,911		1,731
Cash flows from investing activities:
Proceeds from maturities of marketable securities	2,512		5,947
Proceeds from sales of marketable securities	—		1,029
Purchases of marketable securities	(2,801)		(3,932)
Purchase related to property and equipment and intangible assets	(248)		(361)
Acquisitions, net of cash acquired	(83)		(36)
Investments and other, net	(221)		(35)
Net cash provided by (used in) investing activities	(841)		2,612
Cash flows from financing activities:
Proceeds related to employee stock plans	246		204
Payments related to tax on restricted stock units	(507)		(532)
Dividends paid	(99)		(100)
Principal payments on property and equipment and intangible assets	(20)		(22)


Payments related to repurchases of common stock	—		(1,996)

Net cash provided by (used in) financing activities	(380)		(2,446)
Change in cash and cash equivalents	1,690		1,897
Cash and cash equivalents at beginning of period	3,389		1,990
Cash and cash equivalents at end of period	$	5,079	$	3,887


	NVIDIA CORPORATION
	RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
	(In millions, except per share data)
	(Unaudited)

		Three Months Ended
		April 30,			January 29,			May 1,
		2023			2023			2022

GAAP gross profit		$	4,648		$	3,833		$	5,431
GAAP gross margin		64.6		%	63.3		%	65.5		%
	Acquisition-related and other costs (A)	119			120			94
	Stock-based compensation expense (B)	27			30			38
	IP-related costs	8			16			—
Non-GAAP gross profit		$	4,802		$	3,999		$	5,563
Non-GAAP gross margin		66.8		%	66.1		%	67.1		%

GAAP operating expenses		$	2,508		$	2,576		$	3,563
	Stock-based compensation expense (B)	(708)			(709)			(540)
	Acquisition-related and other costs (A)	(54)			(54)			(55)
	Acquisition termination cost	—			—			(1,353)
	Legal settlement costs	—			—			(7)
	Other (C)	4			(38)			—

Non-GAAP operating expenses		$	1,750		$	1,775		$	1,608

GAAP income from operations		$	2,140		$	1,257		$	1,868
	Total impact of non-GAAP adjustments to income from operations	912			967			2,087
Non-GAAP income from operations		$	3,052		$	2,224		$	3,955

GAAP other income (expense), net		$	69		$	32		$	(63)
	Losses from non-affiliated investments	14			10			17
	Interest expense related to amortization of debt discount	1			1			1
Non-GAAP other income (expense), net		$	84		$	43		$	(45)

GAAP net income		$	2,043		$	1,414		$	1,618
	Total pre-tax impact of non-GAAP adjustments	927			978			2,105
	Income tax impact of non-GAAP adjustments (D)	(257)			(218)			(280)


Non-GAAP net income		$	2,713		$	2,174		$	3,443


		Three Months Ended
		April 30,		January 29,		May 1,
		2023		2023		2022
Diluted net income per share
	GAAP	$	0.82	$	0.57	$	0.64
	Non-GAAP	$	1.09	$	0.88	$	1.36

Weighted average shares used in diluted net income per share computation		2,490		2,477		2,537

GAAP net cash provided by operating activities		$	2,911	$	2,249	$	1,731
	Purchases related to property and equipment and intangible assets	(248)		(509)		(361)
	Principal payments on property and equipment and intangible assets	(20)		(4)		(22)
Free cash flow		$	2,643	$	1,736	$	1,348


(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
		April 30,		January 29,		May 1,
		2023		2023		2022
	Cost of revenue	$	119	$	120	$	94
	Research and development	$	12	$	10	$	9
	Sales, general and administrative	$	42	$	44	$	46

(B) Stock-based compensation consists of the following:
		Three Months Ended
		April 30,		January 29,		May 1,
		2023		2023		2022
	Cost of revenue	$	27	$	30	$	38
	Research and development	$	524	$	527	$	384
	Sales, general and administrative	$	184	$	182	$	156

(C) Other consists of 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 FY2024 Outlook
		($ in millions)
GAAP gross margin		68.6		%
	Impact of stock-based compensation expense, acquisition-related costs, and other costs	1.4		%
Non-GAAP gross margin		70.0		%

GAAP operating expenses		$	2,710
	Stock-based compensation expense, acquisition-related costs, and other costs	(810)
Non-GAAP operating expenses		$	1,900

CFO Commentary on First Quarter Fiscal 2024 Results

Q1 Fiscal 2024 Summary


GAAP
($ in millions, except earnings per share)	Q1 FY24		Q4 FY23		Q1 FY23		Q/Q	Y/Y
Revenue	$7,192		$6,051		$8,288		Up 19%	Down 13%
Gross margin	64.6	%	63.3	%	65.5	%	Up 1.3 pts	Down 0.9 pts
Operating expenses	$2,508		$2,576		$3,563		Down 3%	Down 30%
Operating income	$2,140		$1,257		$1,868		Up 70%	Up 15%
Net income	$2,043		$1,414		$1,618		Up 44%	Up 26%
Diluted earnings per share	$0.82		$0.57		$0.64		Up 44%	Up 28%


Non-GAAP
($ in millions, except earnings per share)	Q1 FY24		Q4 FY23		Q1 FY23		Q/Q	Y/Y
Revenue	$7,192		$6,051		$8,288		Up 19%	Down 13%
Gross margin	66.8	%	66.1	%	67.1	%	Up 0.7 pts	Down 0.3 pts
Operating expenses	$1,750		$1,775		$1,608		Down 1%	Up 9%
Operating income	$3,052		$2,224		$3,955		Up 37%	Down 23%
Net income	$2,713		$2,174		$3,443		Up 25%	Down 21%
Diluted earnings per share	$1.09		$0.88		$1.36		Up 24%	Down 20%

Revenue by Reportable Segments

($ in millions)

Q1 FY24

Q4 FY23

Q1 FY23

Q/Q

Y/Y

Compute & Networking

$4,460

$3,673

$3,672

Up 21%

Graphics

2,732

2,378

4,616

Up 15%

Down 41%

Total

$7,192

$6,051

$8,288

Up 19%

Down 13%


Revenue by Market Platform
($ in millions)	Q1 FY24	Q4 FY23	Q1 FY23	Q/Q	Y/Y
Data Center	$4,284	$3,616	$3,750	Up 18%	Up 14%
Gaming	2,240	1,831	3,620	Up 22%	Down 38%
Professional Visualization	295	226	622	Up 31%	Down 53%
Automotive	296	294	138	Up 1%	Up 114%
OEM and Other	77	84	158	Down 8%	Down 51%
Total	$7,192	$6,051	$8,288	Up 19%	Down 13%

We specialize in markets where our computing platforms can provide tremendous acceleration for applications. These platforms incorporate processors, interconnects, software, algorithms, systems, and services to deliver unique value. Our platforms address four large markets where our expertise is critical: Data Center, Gaming, Professional Visualization, and Automotive.

Revenue

Revenue was $7.19 billion, down 13% from a year ago and up 19% sequentially.

Data Center revenue was a record, up 14% from a year ago and up 18% sequentially, led by growing demand for generative AI and large language models using GPUs based on our NVIDIA Hopper and Ampere architectures. The revenue growth reflects strong demand from large consumer internet companies and cloud service providers. Enterprise demand for GPU platforms was strong, although general purpose networking solutions declined both sequentially and from a year ago.

Gaming revenue was down 38% from a year ago and up 22% sequentially. The year-on-year decrease reflects weaker demand due to the macroeconomic slowdown and lower shipments to normalize channel inventory levels. The sequential increase was driven by the ramp of our new GeForce RTX 40 Series GPUs for desktops and laptops based on the Ada Lovelace architecture.

Professional Visualization revenue was down 53% from a year ago and up 31% sequentially. The year-on-year decrease reflects lower sell-in to partners to help reduce channel inventory levels. The sequential increase was driven by higher demand for desktop and mobile workstation GPUs.

Automotive revenue was up 114% from a year ago and up 1% sequentially. The year-on-year increase reflects growth in sales of self-driving platforms and AI cockpit solutions.

OEM and Other revenue was down 51% from a year ago and down 8% sequentially. These decreases were primarily driven by lower entry level notebook GPU sales.

Gross Margin


Reconciliation of GAAP to Non-GAAP Gross Margin
($ in millions)	Q1 FY24		Q4 FY23		Q1 FY23
GAAP gross profit	$4,648		$3,833		$5,431
GAAP gross margin	64.6	%	63.3	%	65.5	%
Acquisition-related and other costs	119		120		94
Stock-based compensation expense	27		30		38
IP-related costs	8		16		--
Non-GAAP gross profit	$4,802		$3,999		$5,563
Non-GAAP gross margin	66.8	%	66.1	%	67.1	%

GAAP and non-GAAP gross margins declined from a year earlier and increased sequentially. The year-on-year decline reflects lower Gaming margins and a higher contribution from Automotive, partially offset by higher Data Center margins. The sequential increase reflects lower costs in Gaming and higher Data Center margins as we ramp our Hopper architecture.

Expenses


Reconciliation of GAAP to Non-GAAP Operating Expenses
($ in millions)	Q1 FY24	Q4 FY23	Q1 FY23
GAAP operating expenses	$2,508	$2,576	$3,563
Stock-based compensation expense	(708)	(709)	(540)
Acquisition-related and other costs	(54)	(54)	(55)
Acquisition termination cost	--	--	(1,353)
Legal settlement costs	--	--	(7)
Other	4	(38)	--

Non-GAAP operating expenses	$1,750	$1,775	$1,608

GAAP operating expenses were down 30% from a year ago and down 3% sequentially. The prior year included a termination charge of $1.35 billion for the proposed Arm acquisition, and the prior quarter included fixed asset write-downs.

Non-GAAP operating expenses were up 9% from a year ago and down 1% sequentially. The year-on-year increase was driven by employee growth and related costs. The sequential decrease reflects timing of engineering development investments and reduced depreciation expense related to the extension of certain fixed asset useful lives, partially offset by employee growth and related costs.

Other Income & Expense and Income Tax


Reconciliation of GAAP to Non-GAAP OI&E
($ in millions)	Q1 FY24	Q4 FY23	Q1 FY23
Interest income	$150	$115	$18
Interest expense	(66)	(65)	(68)
Other, net	(15)	(18)	(13)
GAAP other income (expense), net	$69	$32	($63)
Non-affiliated investment losses	14	10	17
Interest expense related to amortization of debt discount	1	1	1
Non-GAAP other income (expense), net	$84	$43	($45)

GAAP other income and expense (OI&E) includes interest income, interest expense, gains and losses from non-affiliated investments and other. Non-GAAP OI&E excludes the gains or losses from non-affiliated investments and the portion of interest expense from the amortization of the debt discount.

Interest income was $150 million, up from a year ago and sequentially, due to higher yields on investments. Net loss from non-affiliated investments was $14 million due to the mark-to-market of publicly traded equity investments and changes in value of our non-affiliated private investments.

GAAP effective tax rate was 7.5%, which reflects the foreign-derived intangible income deduction, tax benefits related to stock-based compensation, and the U.S. federal research tax credit. Non-GAAP effective tax rate was 13.5%.

Balance Sheet and Cash Flow

Cash, cash equivalents and marketable securities were $15.32 billion, down from $20.34 billion a year ago and up from $13.30 billion a quarter ago. The year-on-year decrease reflects $8.04 billion in stock repurchases, partially offset by operating cash flow generation. The sequential increase reflects operating cash flow generation.

Accounts receivable was $4.08 billion with a DSO of 52.

Inventory was $4.61 billion with a DSI of 165. Gross inventory purchase and long-term supply and capacity obligations were $7.27 billion and prepaid supply agreements were $3.40 billion.

Other purchase obligations, inclusive of $2.43 billion of multi-year cloud service agreements, were $3.26 billion.

Cash flow from operating activities was $2.91 billion, up from $1.73 billion a year ago and $2.25 billion a quarter ago. The year-on-year increase reflects lower inventory prepayments and changes in inventory, partially offset by lower revenue. The sequential increase was driven by higher revenue.

Free cash flow was $2.64 billion compared with $1.35 billion a year ago and $1.74 billion a quarter ago.

Depreciation and amortization expense was $384 million, including amortization of acquisition-related intangible assets. Starting in fiscal 2024, we extended the useful lives of most of our servers, storage, and network equipment from three years to a range of four to five years, and assembly and test equipment from five to seven years. This change in useful lives drove a favorable impact to operating expenses of $31 million and cost of goods sold of $2 million in the first quarter.

During the first quarter, we returned $99 million to shareholders in the form of cash dividends. As of the end of the first quarter, we had $7.23 billion remaining under our share repurchase authorization through December 2023.

During the first quarter, we filed a Form S-3 shelf registration statement to replace the existing shelf that was expiring. We plan to file an amendment to this shelf in the near term for administrative purposes. We do not have any immediate plans to utilize this shelf once effective.

Second Quarter of Fiscal 2024 Outlook

Outlook for the second quarter of fiscal 2024 is as follows:

•Revenue is expected to be $11.00 billion, plus or minus 2%.

•GAAP and non-GAAP gross margins are expected to be 68.6% and 70.0%, respectively, plus or minus 50 basis points.

•GAAP and non-GAAP operating expenses are expected to be approximately $2.71 billion and $1.90 billion, respectively.

•GAAP and non-GAAP other income and expense are expected to be an income of approximately $90 million, excluding gains and losses from non-affiliated investments.

•GAAP and non-GAAP tax rates are expected to be 14.0%, plus or minus 1%, excluding any discrete items.

•Capital expenditures are expected to be approximately $300 million to $350 million, including principal payments on property and equipment. For full year fiscal 2024, capital expenditures are still expected to be approximately $1.10 billion to $1.30 billion, including principal payments on property and equipment.

___________________________

For further information, contact:


Simona Jankowski						Robert Sherbin
Investor Relations						Corporate Communications
NVIDIA Corporation						NVIDIA Corporation
[email protected]						[email protected]

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. In order 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, legal settlement costs, other, 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 of 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.

Certain statements in this CFO Commentary including, but not limited to, statements as to: our computing platforms providing tremendous acceleration for applications and delivering unique value; growing demand for generative AI and large language models using GPUs based on our Hopper and NVIDIA Ampere architectures; our plan to file an amendment to our Form S-3 shelf registration statement in the near term for administrative purposes; our lack of immediate plans to utilize the shelf once effective; our financial outlook and expected tax rates for the second quarter of fiscal 2024; and our expected capital expenditures for the second quarter and full year of fiscal 2024 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; 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.

# # #

© 2023 NVIDIA Corporation. All rights reserved. NVIDIA and the NVIDIA logo 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
	RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
	(In millions, except per share data)
	(Unaudited)

		Three Months Ended
		April 30,			January 29,			May 1,
		2023			2023			2022

GAAP gross profit		$	4,648		$	3,833		$	5,431
GAAP gross margin		64.6		%	63.3		%	65.5		%
	Acquisition-related and other costs (A)	119			120			94
	Stock-based compensation expense (B)	27			30			38
	IP-related costs	8			16			—
Non-GAAP gross profit		$	4,802		$	3,999		$	5,563
Non-GAAP gross margin		66.8		%	66.1		%	67.1		%

GAAP operating expenses		$	2,508		$	2,576		$	3,563
	Stock-based compensation expense (B)	(708)			(709)			(540)
	Acquisition-related and other costs (A)	(54)			(54)			(55)
	Acquisition termination cost	—			—			(1,353)
	Legal settlement costs	—			—			(7)
	Other (C)	4			(38)			—

Non-GAAP operating expenses		$	1,750		$	1,775		$	1,608

GAAP income from operations		$	2,140		$	1,257		$	1,868
	Total impact of non-GAAP adjustments to income from operations	912			967			2,087
Non-GAAP income from operations		$	3,052		$	2,224		$	3,955

GAAP other income (expense), net		$	69		$	32		$	(63)
	Losses from non-affiliated investments	14			10			17
	Interest expense related to amortization of debt discount	1			1			1
Non-GAAP other income (expense), net		$	84		$	43		$	(45)

GAAP net income		$	2,043		$	1,414		$	1,618
	Total pre-tax impact of non-GAAP adjustments	927			978			2,105
	Income tax impact of non-GAAP adjustments (D)	(257)			(218)			(280)


Non-GAAP net income		$	2,713		$	2,174		$	3,443


		Three Months Ended
		April 30,		January 29,		May 1,
		2023		2023		2022
Diluted net income per share
	GAAP	$	0.82	$	0.57	$	0.64
	Non-GAAP	$	1.09	$	0.88	$	1.36

Weighted average shares used in diluted net income per share computation		2,490		2,477		2,537

GAAP net cash provided by operating activities		$	2,911	$	2,249	$	1,731
	Purchases related to property and equipment and intangible assets	(248)		(509)		(361)
	Principal payments on property and equipment and intangible assets	(20)		(4)		(22)
Free cash flow		$	2,643	$	1,736	$	1,348


(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
		April 30,		January 29,		May 1,
		2023		2023		2022
	Cost of revenue	$	119	$	120	$	94
	Research and development	$	12	$	10	$	9
	Sales, general and administrative	$	42	$	44	$	46

(B) Stock-based compensation consists of the following:
		Three Months Ended
		April 30,		January 29,		May 1,
		2023		2023		2022
	Cost of revenue	$	27	$	30	$	38
	Research and development	$	524	$	527	$	384
	Sales, general and administrative	$	184	$	182	$	156

(C) Other consists of 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 FY2024 Outlook
		($ in millions)
GAAP gross margin		68.6		%
	Impact of stock-based compensation expense, acquisition-related costs, and other costs	1.4		%
Non-GAAP gross margin		70.0		%

GAAP operating expenses		$	2,710
	Stock-based compensation expense, acquisition-related costs, and other costs	(810)
Non-GAAP operating expenses		$	1,900