NVIDIA Announces Financial Results for Third Quarter Fiscal 2022
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NVIDIA CORPORATION |
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RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
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(In millions, except per share data) |
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(Unaudited) |
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|
|
|
|
|
|
|
|
|
|
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|
|
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Three Months Ended |
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Nine Months Ended |
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|
|
|
October 31, |
|
August 1, |
|
October 25, |
|
October 31, |
October 25, |
| |
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
GAAP gross profit |
$ |
4,631 |
|
|
$ |
4,215 |
|
|
$ |
2,960 |
|
|
$ |
12,476 |
|
|
$ |
7,240 |
|
| |
GAAP gross margin |
|
65.2 |
% |
|
|
64.8 |
% |
|
|
62.6 |
% |
|
|
64.7 |
% |
|
|
62.0 |
% |
| |
Acquisition-related and other costs (A) |
|
86 |
|
|
|
86 |
|
|
|
86 |
|
|
|
258 |
|
|
|
331 |
|
| |
Stock-based compensation expense (B) |
|
44 |
|
|
|
32 |
|
|
|
28 |
|
|
|
102 |
|
|
|
62 |
|
| |
IP-related costs |
|
|
- |
|
|
|
4 |
|
|
|
21 |
|
|
|
8 |
|
|
|
38 |
|
| |
Non-GAAP gross profit |
$ |
4,761 |
|
|
$ |
4,337 |
|
|
$ |
3,095 |
|
|
$ |
12,844 |
|
|
$ |
7,671 |
|
| |
Non-GAAP gross margin |
|
67.0 |
% |
|
|
66.7 |
% |
|
|
65.5 |
% |
|
|
66.6 |
% |
|
|
65.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
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GAAP operating expenses |
$ |
1,960 |
|
|
$ |
1,771 |
|
|
$ |
1,562 |
|
|
$ |
5,405 |
|
|
$ |
4,215 |
|
| |
Stock-based compensation expense (B) |
|
(515 |
) |
|
|
(433 |
) |
|
|
(355 |
) |
|
|
(1,351 |
) |
|
|
(919 |
) |
| |
Acquisition-related and other costs (A) |
|
(70 |
) |
|
|
(72 |
) |
|
|
(106 |
) |
|
|
(224 |
) |
|
|
(338 |
) |
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Non-GAAP operating expenses |
$ |
1,375 |
|
|
$ |
1,266 |
|
|
$ |
1,101 |
|
|
$ |
3,830 |
|
|
$ |
2,958 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
GAAP income from operations |
$ |
2,671 |
|
|
$ |
2,444 |
|
|
$ |
1,398 |
|
|
$ |
7,071 |
|
|
$ |
3,025 |
|
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Total impact of non-GAAP adjustments to income from operations |
|
715 |
|
|
|
627 |
|
|
|
595 |
|
|
|
1,943 |
|
|
|
1,689 |
|
| |
Non-GAAP income from operations |
$ |
3,386 |
|
|
$ |
3,071 |
|
|
$ |
1,993 |
|
|
$ |
9,014 |
|
|
$ |
4,714 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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GAAP other income (expense), net |
$ |
(33 |
) |
|
$ |
(50 |
) |
|
$ |
(50 |
) |
|
$ |
5 |
|
|
$ |
(86 |
) |
| |
(Gains) losses from non-affiliated investments |
|
(20 |
) |
|
|
- |
|
|
|
4 |
|
|
|
(153 |
) |
|
|
9 |
|
| |
Interest expense related to amortization of debt discount |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
3 |
|
|
|
1 |
|
| |
Non-GAAP other income (expense), net |
$ |
(52 |
) |
|
$ |
(49 |
) |
|
$ |
(45 |
) |
|
$ |
(145 |
) |
|
$ |
(76 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
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GAAP net income |
|
$ |
2,464 |
|
|
$ |
2,374 |
|
|
$ |
1,336 |
|
|
$ |
6,749 |
|
|
$ |
2,875 |
|
| |
Total pre-tax impact of non-GAAP adjustments |
|
696 |
|
|
|
628 |
|
|
|
600 |
|
|
|
1,793 |
|
|
|
1,699 |
|
| |
Income tax impact of non-GAAP adjustments (C) |
|
(187 |
) |
|
|
(127 |
) |
|
|
(102 |
) |
|
|
(381 |
) |
|
|
(255 |
) |
| |
Domestication tax benefit |
|
- |
|
|
|
(252 |
) |
|
|
- |
|
|
|
(252 |
) |
|
|
- |
|
| |
Non-GAAP net income |
$ |
2,973 |
|
|
$ |
2,623 |
|
|
$ |
1,834 |
|
|
$ |
7,909 |
|
|
$ |
4,319 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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Diluted net income per share (D) |
|
|
|
|
|
|
|
|
|
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GAAP |
|
$ |
0.97 |
|
|
$ |
0.94 |
|
|
$ |
0.53 |
|
|
$ |
2.67 |
|
|
$ |
1.15 |
|
| |
Non-GAAP |
|
$ |
1.17 |
|
|
$ |
1.04 |
|
|
$ |
0.73 |
|
|
$ |
3.12 |
|
|
$ |
1.72 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted average shares used in diluted net income per share computation (D) |
|
|
2,538 |
|
|
|
2,532 |
|
|
|
2,520 |
|
|
|
2,532 |
|
|
|
2,504 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
GAAP net cash provided by operating activities |
$ |
1,519 |
|
|
$ |
2,682 |
|
|
$ |
1,279 |
|
|
$ |
6,075 |
|
|
$ |
3,755 |
|
| |
Purchases related to property and equipment and intangible assets |
|
(221 |
) |
|
|
(183 |
) |
|
|
(473 |
) |
|
|
(703 |
) |
|
|
(845 |
) |
| |
Principal payments on property and equipment |
|
(22 |
) |
|
|
(21 |
) |
|
|
- |
|
|
|
(62 |
) |
|
|
- |
|
| |
Free cash flow |
|
$ |
1,276 |
|
|
$ |
2,478 |
|
|
$ |
806 |
|
|
$ |
5,310 |
|
|
$ |
2,910 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
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|
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(A) 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 31, |
|
August 1, |
|
October 25, |
|
October 31, |
October 25, |
| |
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
| |
Cost of revenue |
$ |
86 |
|
|
$ |
86 |
|
|
$ |
86 |
|
|
$ |
258 |
|
|
$ |
331 |
|
| |
Research and development |
$ |
7 |
|
|
$ |
1 |
|
|
$ |
2 |
|
|
$ |
10 |
|
|
$ |
7 |
|
| |
Sales, general and administrative |
$ |
63 |
|
|
$ |
71 |
|
|
$ |
104 |
|
|
$ |
214 |
|
|
$ |
331 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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(B) Stock-based compensation consists of the following: |
|
|
|
| |
|
|
|
Three Months Ended |
|
Nine Months Ended |
| |
|
|
|
October 31, |
|
August 1, |
|
October 25, |
|
October 31, |
October 25, |
| |
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
| |
Cost of revenue |
$ |
44 |
|
|
$ |
32 |
|
|
$ |
28 |
|
|
$ |
102 |
|
|
$ |
62 |
|
| |
Research and development |
$ |
363 |
|
|
$ |
297 |
|
|
$ |
232 |
|
|
$ |
935 |
|
|
$ |
594 |
|
| |
Sales, general and administrative |
$ |
152 |
|
|
$ |
136 |
|
|
$ |
123 |
|
|
$ |
416 |
|
|
$ |
325 |
|
| |
|
|
|
|
|
|
|
|
|
|
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|
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(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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|
|
|
|
|
|
|
|
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(D) Reflects a four-for-one stock split on July 19, 2021. |
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