NVIDIA Announces Financial Results for Second Quarter Fiscal 2025
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NVIDIA CORPORATION | | |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | | | (In millions, except per share data) | | | (Unaudited) | | | | | | | | | | | | | | | | | |
Three Months Ended | |
Six Months Ended | | | | | |
July 28, | |
April 28, | |
July 30, | |
July 28, | |
July 30, | | | | | | |
2024 | | | |
2024 | | | |
2023 | | | |
2024 | | | |
2023 | | | | | | | | | | | | | | | | | | GAAP gross profit | | $ | 22,574 | | | $ | 20,406 | | | $ | 9,462 | | | $ | 42,979 | | | $ | 14,110 | | | | GAAP gross margin | | 75.1 | % | | | 78.4 | % | | | 70.1 | % | | | 76.6 | % | | | 68.2 | % | | | | Acquisition-related and other costs (A) | | 118 | | | | 119 | | | | 119 | | | | 238 | | | | 239 | | | | | Stock-based compensation expense (B) | | 40 | | | | 36 | | | | 31 | | | | 75 | | | | 58 | | | | | Other (C) | | | (3 | ) | | | (1 | ) | | | 2 | | | | (4 | ) | | | 10 | | | |
Non-GAAP gross profit |
$ |
22,729 | | |
$ |
20,560 | | |
$ |
9,614 | | |
$ |
43,288 | | |
$ |
14,417 | | | |
Non-GAAP gross margin | |
75.7 |
% | | |
78.9 |
% | | |
71.2 |
% | | |
77.2 |
% | | |
69.7 |
% | | | | | | | | | | | | | | | | | GAAP operating expenses | $ | 3,932 | | | $ | 3,497 | | | $ | 2,662 | | | $ | 7,428 | | | $ | 5,169 | | | | | Stock-based compensation expense (B) | | (1,114 | ) | | | (975 | ) | | | (811 | ) | | | (2,089 | ) | | | (1,518 | ) | | | | Acquisition-related and other costs (A) | | (26 | ) | | | (21 | ) | | | (18 | ) | | | (48 | ) | | | (72 | ) | | | | Other (C) | | | - | | | | - | | | | 5 | | | | - | | | | 10 | | | |
Non-GAAP operating expenses |
$ |
2,792 | | |
$ |
2,501 | | |
$ |
1,838 | | |
$ |
5,291 | | |
$ |
3,589 | | | | | | | | | | | | | | | | | | GAAP operating income | $ | 18,642 | | | $ | 16,909 | | | $ | 6,800 | | | $ | 35,551 | | | $ | 8,941 | | | | | Total impact of non-GAAP adjustments to operating income | | 1,295 | | | | 1,150 | | | | 976 | | | | 2,446 | | | | 1,887 | | | |
Non-GAAP operating income |
$ |
19,937 | | |
$ |
18,059 | | |
$ |
7,776 | | |
$ |
37,997 | | |
$ |
10,828 | | | | | | | | | | | | | | | | | | GAAP other income (expense), net | $ | 572 | | | $ | 370 | | | $ | 181 | | | $ | 942 | | | $ | 249 | | | | | Gains from non-affiliated investments and publicly-held equity securities, net | | (193 | ) | | | (69 | ) | | | (62 | ) | | | (264 | ) | | | (46 | ) | | | | Interest expense related to amortization of debt discount | | 1 | | | | 1 | | | | 1 | | | | 2 | | | | 2 | | | |
Non-GAAP other income (expense), net |
$ |
380 | | |
$ |
302 | | |
$ |
120 | | |
$ |
680 | | |
$ |
205 | | | | | | | | | | | | | | | | | | GAAP net income | | $ | 16,599 | | | $ | 14,881 | | | $ | 6,188 | | | $ | 31,480 | | | $ | 8,232 | | | | | Total pre-tax impact of non-GAAP adjustments | | 1,103 | | | | 1,082 | | | | 915 | | | | 2,184 | | | | 1,843 | | | | | Income tax impact of non-GAAP adjustments (D) | | (750 | ) | | | (725 | ) | | | (363 | ) | | | (1,475 | ) | | | (622 | ) | | |
Non-GAAP net income |
$ |
16,952 | | |
$ |
15,238 | | |
$ |
6,740 | | |
$ |
32,189 | | |
$ |
9,453 | | | | | | | | | | | | | | | | | | Diluted net income per share | | | | | | | | | | | | | GAAP | | $ | 0.67 | | | $ | 0.60 | | | $ | 0.25 | | | $ | 1.27 | | | $ | 0.33 | | | | | Non-GAAP | | $ | 0.68 | | | $ | 0.61 | | | $ | 0.27 | | | $ | 1.29 | | | $ | 0.38 | | | | | | | | | | | | | | | | | | Weighted average shares used in diluted net income per share computation | | 24,848 | | | | 24,890 | | | | 24,994 | | | | 24,869 | | | | 24,948 | | | | | | | | | | | | | | | | | | GAAP net cash provided by operating activities | $ | 14,489 | | | $ | 15,345 | | | $ | 6,348 | | | $ | 29,833 | | | $ | 9,259 | | | | | Purchases related to property and equipment and intangible assets | | (977 | ) | | | (369 | ) | | | (289 | ) | | | (1,346 | ) | | | (537 | ) | | | | Principal payments on property and equipment and intangible assets | | (29 | ) | | | (40 | ) | | | (11 | ) | | | (69 | ) | | | (31 | ) | | |
Free cash flow | |
$ |
13,483 | | |
$ |
14,936 | | |
$ |
6,048 | | |
$ |
28,418 | | |
$ |
8,691 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (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 | |
Six Months Ended | | | | | |
July 28, | |
April 28, | |
July 30, | |
July 28, | |
July 30, | | | | | | |
2024 | | | |
2024 | | | |
2023 | | | |
2024 | | | |
2023 | | | | | Cost of revenue | | $ | 118 | | | $ | 119 | | | $ | 119 | | | $ | 238 | | | $ | 239 | | | | | Research and development | $ | 17 | | | $ | 12 | | | $ | 12 | | | $ | 30 | | | $ | 24 | | | | | Sales, general and administrative | $ | 9 | | | $ | 8 | | | $ | 6 | | | $ | 18 | | | $ | 48 | | | | | | | | | | | | | | | | | | (B) Stock-based compensation consists of the following: | | | | | | | | |
Three Months Ended | |
Six Months Ended | | | | | |
July 28, | |
April 28, | |
July 30, | |
July 28, | |
July 30, | | | | | | |
2024 | | | |
2024 | | | |
2023 | | | |
2024 | | | |
2023 | | | | | Cost of revenue | | $ | 40 | | | $ | 36 | | | $ | 31 | | | $ | 75 | | | $ | 58 | | | | | Research and development | $ | 832 | | | $ | 727 | | | $ | 600 | | | $ | 1,559 | | | $ | 1,124 | | | | | Sales, general and administrative | $ | 282 | | | $ | 248 | | | $ | 211 | | | $ | 530 | | | $ | 394 | | | | | | | | | | | | | | | | | | (C) Other consists of IP-related costs and 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). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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