NVIDIA Announces Financial Results for Third Quarter Fiscal 2022
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NVIDIA CORPORATION | | |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | | | (In millions, except per share data) | | | (Unaudited) | | | | | | | | | | | | | | | | | |
Three Months Ended | |
Nine Months Ended | | | | | |
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 | % | | | | | | | | | | | | | | | | | 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 | ) | | | 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 | | | | 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 | | | | | | | | | | | | | | | | | | 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 | ) | | | | | | | | | | | | | | | | | 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 | | | | | | | | | | | | | | | | | | Diluted net income per share (D) | | | | | | | | | | | | GAAP | | $ | 0.97 | | | $ | 0.94 | | | $ | 0.53 | | | $ | 2.67 | | | $ | 1.15 | | | | Non-GAAP | | $ | 1.17 | | | $ | 1.04 | | | $ | 0.73 | | | $ | 3.12 | | | $ | 1.72 | | | | | | | | | | | | | | | | | | 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 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (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 | | | | | | | | | | | | | | | | | | (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 | | | | | | | | | | | | | | | | | | (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). | | | | | | | | | | | | | | | | | (D) Reflects a four-for-one stock split on July 19, 2021. |
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