NVIDIA Announces Financial Results for Third Quarter Fiscal 2021
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NVIDIA CORPORATION | |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | | (In millions, except per share data) | | (Unaudited) | | | | | | | |
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Three Months Ended |
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Nine Months Ended | | |
October 25, | |
July 26, | |
October 27, | |
October 25, | |
October 27, | | | |
2020 | | | |
2020 | | | |
2019 | | | |
2020 | | | |
2019 | | | | | | | | | | | | | | GAAP gross profit | $ | 2,960 | | | $ | 2,275 | | | $ | 1,916 | | | $ | 7,240 | | | $ | 4,753 | | | GAAP gross margin | | 62.6 | % | | | 58.8 | % | | | 63.6 | % | | | 62.0 | % | | | 60.8 | % | | Acquisition-related and other costs (B) | | 86 | | | | 245 | | | | - | | | | 331 | | | | - | | | Stock-based compensation expense (A) | | 28 | | | | 14 | | | | 15 | | | | 62 | | | | 27 | | | Legal settlement costs | | 21 | | | | 17 | | | | - | | | | 38 | | | | 11 | | | Non-GAAP gross profit | $ | 3,095 | | | $ | 2,551 | | | $ | 1,931 | | | $ | 7,671 | | | $ | 4,791 | | | Non-GAAP gross margin | | 65.5 | % | | | 66.0 | % | | | 64.1 | % | | | 65.7 | % | | | 61.3 | % | | | | | | | | | | | | | GAAP operating expenses | $ | 1,562 | | | $ | 1,624 | | | $ | 989 | | | $ | 4,215 | | | $ | 2,897 | | | Stock-based compensation expense (A) | | (355 | ) | | | (360 | ) | | | (208 | ) | | | (919 | ) | | | (597 | ) | | Acquisition-related and other costs (B) | | (106 | ) | | | (229 | ) | | | (7 | ) | | | (338 | ) | | | (22 | ) | | Legal settlement costs | | - | | | | - | | | | - | | | | - | | | | (2 | ) | | Non-GAAP operating expenses | $ | 1,101 | | | $ | 1,035 | | | $ | 774 | | | $ | 2,958 | | | $ | 2,276 | | | | | | | | | | | | | | GAAP income from operations | $ | 1,398 | | | $ | 651 | | | $ | 927 | | | $ | 3,025 | | | $ | 1,856 | | | Total impact of non-GAAP adjustments to income from operations | | 595 | | | | 865 | | | | 229 | | | | 1,689 | | | | 659 | | | Non-GAAP income from operations | $ | 1,993 | | | $ | 1,516 | | | $ | 1,156 | | | $ | 4,714 | | | $ | 2,515 | | | | | | | | | | | | | | GAAP other income (expense), net | $ | (50 | ) | | $ | (42 | ) | | $ | 32 | | | $ | (86 | ) | | $ | 98 | | | Losses from non-affiliated investments | | 4 | | | | 2 | | | | - | | | | 9 | | | | 1 | | | Interest expense related to amortization of debt discount | | 1 | | | | 1 | | | | 1 | | | | 1 | | | | 1 | | | Non-GAAP other income (expense), net | $ | (45 | ) | | $ | (39 | ) | | $ | 33 | | | $ | (76 | ) | | $ | 100 | | | | | | | | | | | | | | GAAP net income | $ | 1,336 | | | $ | 622 | | | $ | 899 | | | $ | 2,875 | | | $ | 1,845 | | | Total pre-tax impact of non-GAAP adjustments | | 600 | | | | 868 | | | | 230 | | | | 1,699 | | | | 660 | | | Income tax impact of non-GAAP adjustments (C) | | (102 | ) | | | (124 | ) | | | (26 | ) | | | (255 | ) | | | (97 | ) | | Non-GAAP net income | $ | 1,834 | | | $ | 1,366 | | | $ | 1,103 | | | $ | 4,319 | | | $ | 2,408 | | | | | | | | | | | | | | Diluted net income per share | | | | | | | | | | | GAAP | $ | 2.12 | | | $ | 0.99 | | | $ | 1.45 | | | $ | 4.59 | | | $ | 2.99 | | | Non-GAAP | $ | 2.91 | | | $ | 2.18 | | | $ | 1.78 | | | $ | 6.90 | | | $ | 3.90 | | | | | | | | | | | | | | Weighted average shares used in diluted net income per share computation | | 630 | | | | 626 | | | | 618 | | | | 626 | | | | 617 | | | | | | | | | | | | | | GAAP net cash provided by operating activities | $ | 1,279 | | | $ | 1,566 | | | $ | 1,640 | | | $ | 3,755 | | | $ | 3,296 | | | Purchases related to property and equipment and intangible assets | | (473 | ) | | | (217 | ) | | | (104 | ) | | | (845 | ) | | | (344 | ) | | Free cash flow | $ | 806 | | | $ | 1,349 | | | $ | 1,536 | | | $ | 2,910 | | | $ | 2,952 | | | | | | | | | | | | | | | | | | | | | | | | | | | (A) Stock-based compensation consists of the following: |
Three Months Ended |
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Nine Months Ended | | |
October 25, |
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July 26, |
|
October 27, |
|
October 25, | |
October 27, | | | |
2020 | |
| |
2020 | |
| |
2019 | |
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2020 | | | |
2019 | | | Cost of revenue | $ | 28 | | | $ | 14 | | | $ | 15 | | | $ | 62 | | | $ | 27 | | | Research and development | $ | 232 | | | $ | 228 | | | $ | 141 | | | $ | 594 | | | $ | 400 | | | Sales, general and administrative | $ | 123 | | | $ | 132 | | | $ | 67 | | | $ | 325 | | | $ | 197 | | | | | | | | | | | | | | (B) Acquisition-related and other costs primarily include amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges presented as follows: | | |
Three Months Ended |
|
Nine Months Ended | | |
October 25, |
|
July 26, |
|
October 27, |
|
October 25, | |
October 27, | | | |
2020 | |
| |
2020 | |
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2019 | |
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2020 | | | |
2019 | | | Cost of revenue | $ | 86 | | | $ | 245 | | | $ | - | | | $ | 331 | | | $ | - | | | Research and development | $ | 2 | | | $ | 3 | | | $ | 1 | | | $ | 7 | | | $ | 4 | | | Sales, general and administrative | $ | 104 | | | $ | 226 | | | $ | 6 | | | $ | 331 | | | $ | 18 | | | | | | | | | | | | | (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).
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