24th February 2024

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Business Industry and Financial

NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2023

  • Quarterly revenue of $6.05 billion, down 21% from a year ago
  • Fiscal-year revenue of $27.0 billion, flat from a year ago
  • Quarterly and annual return to shareholders of $1.15 billion and $10.44 billion, respectively

NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 29, 2023, of $6.05 billion, down 21% from a year ago and up 2% from the previous quarter.

GAAP earnings per diluted share for the quarter were $0.57, down 52% from a year ago and up 111% from the previous quarter. Non-GAAP earnings per diluted share were $0.88, down 33% from a year ago and up 52% from the previous quarter.

For fiscal 2023, revenue was $26.97 billion, flat from a year ago. GAAP earnings per diluted share were $1.74, down 55% from a year ago. Non-GAAP earnings per diluted share were $3.34, down 25% from a year ago.

“AI is at an inflection point, setting up for broad adoption reaching into every industry,” said Jensen Huang, founder and CEO of NVIDIA. “From startups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI.

“We are set to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 networking fabric, is in full production.

“Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering,” he said.    

NVIDIA AI Cloud Service Offerings

NVIDIA is partnering with leading cloud service providers to offer AI-as-a-service that provides enterprises access to NVIDIA’s world-leading AI platform.

Customers will be able to engage each layer of NVIDIA AI – the AI supercomputer, acceleration libraries software or pretrained generative AI models – as a cloud service.

Using their browser, they will be able to engage an NVIDIA DGX™ AI supercomputer through the NVIDIA DGX Cloud, which is already offered on Oracle Cloud Infrastructure, with Microsoft Azure, Google Cloud Platform and others expected soon. At the AI platform software layer, they will be able to access NVIDIA AI Enterprise for training and deploying large language models or other AI workloads. And at the AI-model-as-a-service layer, NVIDIA will offer its NeMo™ and BioNeMo™ customizable AI models to enterprise customers who want to build proprietary generative AI models and services for their businesses.

Further details will be shared at the company’s GTC developer conference, taking place virtually March 20-23.

Return to Shareholders

During the fourth quarter of fiscal 2023, NVIDIA returned to shareholders $1.15 billion in share repurchases and cash dividends, bringing the return in the fiscal year to $10.44 billion.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on March 29, 2023, to all shareholders of record on March 8, 2023.

Q4 Fiscal 2023 Summary











GAAP
($ in millions, except earnings per share) Q4 FY23 Q3 FY23 Q4 FY22 Q/Q Y/Y
Revenue $6,051 $5,931 $7,643 Up 2% Down 21%
Gross margin   63.3%   53.6%   65.4% Up 9.7 pts Down 2.1 pts
Operating expenses $2,576 $2,576 $2,029 Up 27%
Operating income $1,257 $601 $2,970 Up 109% Down 58%
Net income $1,414 $680 $3,003 Up 108% Down 53%
Diluted earnings per share $0.57 $0.27 $1.18 Up 111% Down 52%

 











Non-GAAP
($ in millions, except earnings per share) Q4 FY23 Q3 FY23 Q4 FY22 Q/Q Y/Y
Revenue $6,051 $5,931 $7,643 Up 2% Down 21%
Gross margin   66.1%   56.1%   67.0% Up 10.0 pts Down 0.9 pts
Operating expenses $1,775 $1,793 $1,447 Down 1% Up 23%
Operating income $2,224 $1,536 $3,677 Up 45% Down 40%
Net income $2,174 $1,456 $3,350 Up 49% Down 35%
Diluted earnings per share $0.88 $0.58 $1.32 Up 52% Down 33%

Fiscal 2023 Summary











GAAP
($ in millions, except earnings per share) FY23 FY22 Y/Y
Revenue $26,974 $26,914
Gross margin   56.9%   64.9% Down 8.0 pts
Operating expenses $11,132 $7,434 Up 50%
Operating income $4,224 $10,041 Down 58%
Net income $4,368 $9,752 Down 55%
Diluted earnings per share $1.74 $3.85 Down 55%

 











Non-GAAP
($ in millions, except earnings per share) FY23 FY22 Y/Y
Revenue $26,974 $26,914
Gross margin   59.2%   66.8% Down 7.6 pts
Operating expenses $6,925 $5,279 Up 31%
Operating income $9,040 $12,690 Down 29%
Net income $8,366 $11,259 Down 26%
Diluted earnings per share $3.34 $4.44 Down 25%

Outlook

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

  • Revenue is expected to be $6.50 billion, plus or minus 2%.
  • GAAP and non-GAAP gross margins are expected to be 64.1% and 66.5%, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $2.53 billion and $1.78 billion, respectively.
  • GAAP and non-GAAP other income and expense are expected to be an income of approximately $50 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 13.0%, 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 $1.83 billion, down 46% from a year ago and up 16% from the previous quarter. Fiscal-year revenue was down 27% to $9.07 billion.
  • Unveiled the GeForce RTX™ 40 Series for laptops, providing the company’s largest-ever generational leap in performance and power efficiency.
  • Launched the GeForce RTX 4070 Ti, which is faster than the GeForce RTX 3090 Ti, featuring NVIDIA Ada Lovelace architecture and NVIDIA DLSS 3 technology.
  • Announced that DLSS 3 is available on, or coming soon to, more than 50 games and apps — including Cyberpunk 2077, Portal with RTX and Marvel’s Spider-Man: Miles Morales.
  • Launched the GeForce NOW™ Ultimate membership tier, delivering GeForce RTX 4080-class performance with NVIDIA Reflex, full ray tracing and DLSS 3.
  • Signed a 10-year agreement with Microsoft to bring the Xbox PC game lineup, including Minecraft, Halo and Flight Simulator, to GeForce NOW. Following the close of Microsoft’s Activision acquisition, GeForce NOW will add titles like Call of Duty and Overwatch.

Professional Visualization

  • Fourth-quarter revenue was $226 million, down 65% from a year ago and up 13% from the previous quarter. Fiscal-year revenue was down 27% to $1.54 billion.
  • Enhanced NVIDIA Omniverse™ Enterprise’s capabilities to help teams build connected 3D pipelines and develop large-scale 3D works through increased performance, generational leaps in real-time RTX ray and path tracing, and streamlined workflows.
  • Announced a collaboration with Lockheed Martin to build a digital twin of global weather conditions, enabling the U.S. National Oceanic and Atmospheric Administration to better monitor global environmental conditions, including extreme weather events.
  • Shared news that Mercedes-Benz is taking the next step to digitalize its production process, using NVIDIA Omniverse to design and plan manufacturing and assembly facilities.

Automotive and Embedded

  • Fourth-quarter revenue was a record $294 million, up 135% from a year ago and up 17% from the previous quarter. Fiscal-year revenue rose 60% to a record $903 million.
  • Announced a strategic partnership with Foxconn to develop automated and autonomous vehicle platforms based on NVIDIA DRIVE Orin™ and DRIVE Hyperion™.
  • Released major updates to the NVIDIA Isaac Sim™ robotics simulation tool, including AI capabilities and cloud access, enabling the building and testing of virtual robots in realistic environments.

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 fourth quarter and fiscal 2023 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 2024.

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 acquisition termination costs, stock-based compensation expense, acquisition-related and other costs, contributions, IP-related costs, legal settlement costs, restructuring costs and other, gains and losses from non-affiliated investments, interest expense related to amortization of debt discount, the associated tax impact of these items where applicable, foreign tax benefit and domestication tax adjustments. 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.

 





































NVIDIA CORPORATION  
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME  
(In millions, except per share data)  
(Unaudited)  
                     
                     
      Three Months Ended   Twelve Months Ended  
      January 29,   January 30,   January 29,   January 30,  
        2023       2022       2023       2022    
                     
Revenue $ 6,051     $ 7,643     $ 26,974     $ 26,914    
Cost of revenue   2,218       2,644       11,618       9,439    
Gross profit   3,833       4,999       15,356       17,475    
Operating expenses                
  Research and development   1,951       1,466       7,339       5,268    
  Sales, general and administrative   625       563       2,440       2,166    
  Acquisition termination cost               1,353          
    Total operating expenses   2,576       2,029       11,132       7,434    
Income from operations   1,257       2,970       4,224       10,041    
  Interest income   115       9       267       29    
  Interest expense   (65 )     (61 )     (262 )     (236 )  
  Other, net   (18 )     (53 )     (48 )     107    
    Other income (expense), net   32       (105 )     (43 )     (100 )  
Income before income tax   1,289       2,865       4,181       9,941    
Income tax expense (benefit)   (125 )     (138 )     (187 )     189    
Net income $ 1,414     $ 3,003     $ 4,368     $ 9,752    
                     
Net income per share:                
  Basic $ 0.57     $ 1.20     $ 1.76     $ 3.91    
  Diluted $ 0.57     $ 1.18     $ 1.74     $ 3.85    
                     
Weighted average shares used in per share computation:              
  Basic   2,464       2,504       2,487       2,496    
  Diluted   2,477       2,545       2,507       2,535    

 











































NVIDIA CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(In millions)  
(Unaudited)  
               
               
        January 29,   January 30,  
         2023    2022  
ASSETS          
               
Current assets:          
  Cash, cash equivalents and marketable securities   $ 13,296   $ 21,208  
  Accounts receivable, net     3,827     4,650  
  Inventories     5,159     2,605  
  Prepaid expenses and other current assets     791     366  
    Total current assets     23,073     28,829  
               
Property and equipment, net     3,807     2,778  
Operating lease assets     1,038     829  
Goodwill     4,372     4,349  
Intangible assets, net     1,676     2,339  
Deferred income tax assets     3,396     1,222  
Other assets     3,820     3,841  
    Total assets   $ 41,182   $ 44,187  
               
LIABILITIES AND SHAREHOLDERS’ EQUITY  
               
Current liabilities:          
  Accounts payable   $ 1,193   $ 1,783  
  Accrued and other current liabilities     4,120     2,552  
  Short-term debt     1,250      
    Total current liabilities     6,563     4,335  
               
Long-term debt     9,703     10,946  
Long-term operating lease liabilities     902     741  
Other long-term liabilities     1,913     1,553  
    Total liabilities     19,081     17,575  
               
Shareholders’ equity     22,101     26,612  
    Total liabilities and shareholders’ equity   $ 41,182   $ 44,187  

 




















































NVIDIA CORPORATION  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(In millions)  
(Unaudited)  
                     
                     
      Three Months Ended   Twelve Months Ended  
      January 29,   January 30, January 29   January 30,  
        2023       2022       2023       2022    
                     
Cash flows from operating activities:                
Net income $ 1,414     $ 3,003     $ 4,368     $ 9,752    
Adjustments to reconcile net income to net cash                
provided by operating activities:                
  Stock based compensation expense   738       551       2,709     $ 2,004    
  Depreciation and amortization   426       309       1,544       1,174    
  (Gain) losses on investments in non affiliates, net   10       53       45       (100 )  
  Deferred income taxes   (647 )     (225 )     (2,164 )     (406 )  
  Acquisition termination cost               1,353          
  Other   20       21       (7 )     47    
Changes in operating assets and liabilities, net of acquisitions:                
  Accounts receivable   1,081       (692 )     822       (2,215 )  
  Inventories   (706 )     (374 )     (2,554 )     (774 )  
  Prepaid expenses and other assets   (210 )     (158 )     (1,517 )     (1,715 )  
  Accounts payable   (193 )     183       (551 )     568    
  Accrued liabilities and other current liabilities   166       423       1,341       581    
  Other long-term liabilities   150       (61 )     252       192    
Net cash provided by operating activities   2,249       3,033       5,641       9,108    
Cash flows from investing activities:                
  Proceeds from maturities of marketable securities   2,633       7,417       19,425       15,197    
  Proceeds from sales of marketable securities         107       1,806       1,023    
  Purchases of marketable securities   (2,133 )     (8,767 )     (11,897 )     (24,787 )  
  Purchase related to property and equipment and intangible assets   (509 )     (273 )     (1,833 )     (976 )  
  Acquisitions, net of cash acquired         (60 )     (49 )     (263 )  
  Investments and other, net   5       (11 )     (77 )     (24 )  
Net cash provided by (used in) investing activities   (4 )     (1,587 )     7,375       (9,830 )  
Cash flows from financing activities:                
  Proceeds related to employee stock plans   5       4       355       281    
  Payments related to repurchases of common stock   (1,212 )           (10,039 )        
  Payments related to tax on restricted stock units   (344 )     (622 )     (1,475 )     (1,904 )  
  Dividends paid   (98 )     (100 )     (398 )     (399 )  
  Principal payments on property and equipment and intangible assets   (4 )     (21 )     (58 )     (83 )  
  Issuance of debt, net of issuance costs                     4,977    
  Repayment of debt                     (1,000 )  
  Other   (3 )     (5 )     (2 )     (7 )  
Net cash provided by (used in) financing activities   (1,656 )     (744 )     (11,617 )     1,865    
Change in cash and cash equivalents   589       702       1,399       1,143    
Cash and cash equivalents at beginning of period   2,800       1,288       1,990       847    
Cash and cash equivalents at end of period $ 3,389     $ 1,990     $ 3,389     $ 1,990    

 










































































  NVIDIA CORPORATION
  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
  (In millions, except per share data)
  (Unaudited)
                     
        Three Months Ended   Twelve Months Ended
        January 29,   October 30,   January 30,   January 29,   January 30,
          2023       2022       2022       2023       2022  
                         
  GAAP gross profit $ 3,833     $ 3,177     $ 4,999     $ 15,356     $ 17,475  
    GAAP gross margin   63.3%       53.6%       65.4%       56.9%       64.9%  
    Acquisition-related and other costs (A)   120       120       86       455       344  
    Stock-based compensation expense (B)   30       32       39       138       141  
    IP-related costs     16                   16       9  
  Non-GAAP gross profit $ 3,999     $ 3,329     $ 5,124     $ 15,965     $ 17,969  
    Non-GAAP gross margin   66.1%       56.1%       67.0%       59.2%       66.8%  
                         
  GAAP operating expenses $ 2,576     $ 2,576     $ 2,029     $ 11,132     $ 7,434  
    Stock-based compensation expense (B)   (709 )     (713 )     (512 )     (2,572 )     (1,863 )
    Acquisition-related and other costs (A)   (54 )     (54 )     (70 )     (219 )     (292 )
    Restructuring costs and other   (38 )     (16 )           (54 )      
    Acquisition termination cost                     (1,353 )      
    Legal settlement costs                     (7 )      
    Contributions                       (2 )      
  Non-GAAP operating expenses $ 1,775     $ 1,793     $ 1,447     $ 6,925     $ 5,279  
                         
  GAAP income from operations $ 1,257     $ 601     $ 2,970     $ 4,224     $ 10,041  
    Total impact of non-GAAP adjustments to income from operations   967       935       707       4,816       2,649  
  Non-GAAP income from operations $ 2,224     $ 1,536     $ 3,677     $ 9,040     $ 12,690  
                         
  GAAP other income (expense), net $ 32     $ 12     $ (105 )   $ (43 )   $ (100 )
    (Gains) losses from non-affiliated investments   10       11       53       45       (99 )
    Interest expense related to amortization of debt discount   1       1             5       3  
  Non-GAAP other income (expense), net $ 43     $ 24     $ (52 )   $ 7     $ (196 )
                         
  GAAP net income   $ 1,414     $ 680     $ 3,003     $ 4,368     $ 9,752  
    Total pre-tax impact of non-GAAP adjustments   978       947       760       4,865       2,553  
    Income tax impact of non-GAAP adjustments (C)   (218 )     (171 )     (330 )     (867 )     (712 )
    Domestication tax adjustments               7             (244 )
    Foreign tax benefit               (90 )           (90 )
  Non-GAAP net income $ 2,174     $ 1,456     $ 3,350     $ 8,366     $ 11,259  
                         
  Diluted net income per share                  
    GAAP   $ 0.57     $ 0.27     $ 1.18     $ 1.74     $ 3.85  
    Non-GAAP   $ 0.88     $ 0.58     $ 1.32     $ 3.34     $ 4.44  
                         
  Weighted average shares used in diluted net income per share computation   2,477       2,499       2,545       2,507       2,535  
                         
  GAAP net cash provided by operating activities $ 2,249     $ 392     $ 3,033     $ 5,641     $ 9,108  
    Purchases related to property and equipment and intangible assets   (509 )     (530 )     (273 )     (1,833 )     (976 )
    Principal payments on property and equipment and intangible assets   (4 )     (18 )     (21 )     (58 )     (83 )
  Free cash flow   $ 1,736     $ (156 )   $ 2,739     $ 3,750     $ 8,049  
                         
   
                         
  (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   Twelve Months Ended
        January 29,   October 30,   January 30,   January 29,   January 30,
          2023       2022       2022       2023       2022  
    Cost of revenue $ 120     $ 120     $ 86     $ 455     $ 344  
    Research and development $ 10     $ 10     $ 9     $ 39     $ 19  
    Sales, general and administrative $ 44     $ 44     $ 61     $ 180     $ 273  
                         
  (B) Stock-based compensation consists of the following:      
        Three Months Ended   Twelve Months Ended
        January 29,   October 30,   January 30,   January 29,   January 30,
          2023       2022       2022       2023       2022  
    Cost of revenue $ 30     $ 32     $ 39     $ 138     $ 141  
    Research and development $ 527     $ 530     $ 362     $ 1,892     $ 1,298  
    Sales, general and administrative $ 182     $ 183     $ 150     $ 680     $ 565  
 
(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).

 


















NVIDIA CORPORATION  
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK  
       
   
    Q1 FY2024 Outlook  
    ($ in millions)  
       
GAAP gross margin   64.1%    
  Impact of stock-based compensation expense, acquisition-related costs, and other costs   2.4%    
Non-GAAP gross margin   66.5%    
       
GAAP operating expenses $ 2,525    
  Stock-based compensation expense, acquisition-related costs, and other costs   (750 )  
Non-GAAP operating expenses $ 1,775    
       

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