NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2022

• Record quarterly revenue of $7.64 billion, up 53 percent from a year earlier
• Record fiscal-year revenue of $26.91 billion, up 61 percent
• Record quarterly and fiscal-year revenue for Gaming, Data Center and Professional Visualization

SANTA CLARA, Calif., Feb. 16, 2022 (GLOBE NEWSWIRE) — NVIDIA (NASDAQ: NVDA) today reported record revenue for the fourth quarter ended January 30, 2022, of $7.64 billion, up 53 percent from a year ago and up 8 percent from the previous quarter. Gaming, Data Center and Professional Visualization market platforms each achieved record revenue for the quarter and year.

GAAP earnings per diluted share for the quarter were a record $1.18, up 103 percent from a year ago and up 22 percent from the previous quarter. Non-GAAP earnings per diluted share were $1.32, up 69 percent from a year ago and up 13 percent from the previous quarter.

For fiscal 2022, revenue was a record $26.91 billion, up 61 percent from $16.68 billion a year ago. GAAP earnings per diluted share were a record $3.85, up 123 percent from $1.73 a year ago. Non-GAAP earnings per diluted share were $4.44, up 78 percent from $2.50 a year ago.

“We are seeing exceptional demand for NVIDIA computing platforms,” said Jensen Huang, founder and CEO of NVIDIA. “NVIDIA is propelling advances in AI, digital biology, climate sciences, gaming, creative design, autonomous vehicles and robotics – some of today’s most impactful fields.

“We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with NVIDIA AI, NVIDIA Omniverse and NVIDIA DRIVE. GTC is coming. We will announce many new products, applications and partners for NVIDIA computing,” he said.

NVIDIA paid quarterly cash dividends of $100 million in the fourth quarter and $399 million in fiscal 2022. It will pay its next quarterly cash dividend of $0.04 per share on March 24, 2022, to all shareholders of record on March 3, 2022.

Q4 Fiscal 2022 Summary

GAAP
($ in millions, except earnings per share)	Q4 FY22			Q3 FY22			Q4 FY21			Q/Q	Y/Y
Revenue	$7,643			$7,103			$5,003			Up 8%	Up 53%
Gross margin		65.4	%		65.2	%		63.1	%	Up 20 bps	Up 230 bps
Operating expenses	$2,029			$1,960			$1,650			Up 4%	Up 23%
Operating income	$2,970			$2,671			$1,507			Up 11%	Up 97%
Net income	$3,003			$2,464			$1,457			Up 22%	Up 106%
Diluted earnings per share*	$1.18			$0.97			$0.58			Up 22%	Up 103%

   

Non-GAAP
($ in millions, except earnings per share)	Q4 FY22			Q3 FY22			Q4 FY21			Q/Q	Y/Y
Revenue	$7,643			$7,103			$5,003			Up 8%	Up 53%
Gross margin		67.0	%		67.0	%		65.5	%	—	Up 150 bps
Operating expenses	$1,447			$1,375			$1,187			Up 5%	Up 22%
Operating income	$3,677			$3,386			$2,089			Up 9%	Up 76%
Net income	$3,350			$2,973			$1,957			Up 13%	Up 71%
Diluted earnings per share*	$1.32			$1.17			$0.78			Up 13%	Up 69%

*All per share amounts presented herein have been adjusted to reflect the four-for-one stock split, which was effective July 2021.

Fiscal 2022 Summary

GAAP
($ in millions, except earnings per share)	FY22			FY21			Y/Y
Revenue	$26,914			$16,675			Up 61%
Gross margin		64.9	%		62.3	%	Up 260 bps
Operating expenses	$7,434			$5,864			Up 27%
Operating income	$10,041			$4,532			Up 122%
Net income	$9,752			$4,332			Up 125%
Diluted earnings per share*	$3.85			$1.73			Up 123%

Non-GAAP
($ in millions, except earnings per share)	FY22			FY21			Y/Y
Revenue	$26,914			$16,675			Up 61%
Gross margin		66.8	%		65.6	%	Up 120 bps
Operating expenses	$5,279			$4,144			Up 27%
Operating income	$12,690			$6,803			Up 87%
Net income	$11,259			$6,277			Up 79%
Diluted earnings per share*	$4.44			$2.50			Up 78%

*All per share amounts presented herein have been adjusted to reflect the four-for-one stock split, which was effective July 2021.

Termination of the Arm Share Purchase Agreement

On February 8, 2022, NVIDIA and SoftBank Group Corp. (SoftBank) announced the termination of the Share Purchase Agreement whereby NVIDIA would have acquired Arm Limited from SoftBank. The parties agreed to terminate because of significant regulatory challenges preventing the consummation of the transaction. NVIDIA intends to record in operating expenses a $1.36 billion charge (the Arm Write-off) in the first quarter of fiscal 2023 reflecting the write-off of the prepayment provided at signing in September 2020. 

Outlook

NVIDIA’s outlook for the first quarter of fiscal 2023 is as follows:

• Revenue is expected to be $8.10 billion, plus or minus 2 percent.
• GAAP and non-GAAP gross margins are expected to be 65.2 percent and 67.0 percent, respectively, plus or minus 50 basis points.
• GAAP operating expenses are expected to be $3.55 billion, including the Arm Write-off of $1.36 billion. Non-GAAP operating expenses are expected to be $1.60 billion.
• GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $55 million, excluding gains and losses from non-affiliated investments.
• GAAP and non-GAAP tax rates are expected to be 11 percent and 13 percent, respectively, plus or minus 1 percent, excluding any discrete items.

Highlights

NVIDIA achieved progress since its previous earnings announcement in these areas: 

Gaming

• Fourth-quarter revenue was a record $3.42 billion, up 37 percent from a year ago and up 6 percent from the previous quarter. Fiscal-year revenue rose 61 percent to a record $12.46 billion.
• Launched the GeForce RTX^® 3050 desktop GPU, bringing RTX and the performance and efficiency of NVIDIA Ampere architecture to more gamers, starting at $249 MSRP.
• Launched GeForce RTX 3080 Ti and RTX 3070 Ti laptop GPUs, delivering new levels of performance to laptops for gamers and creators.
• Announced over 160 gaming and Studio GeForce^®-based laptop designs by leading manufacturers.
• Announced over 30 new RTX games and titles shipped in the quarter – including COD: Vanguard, Horizon Zero Dawn, God of War, Icarus and Rainbow Six Extraction.
• Integrated NVIDIA Reflex technology for low-latency gaming in more AAA games – including Call of Duty: Vanguard, God of War and Rainbow Six Extraction.
• Added over 65 games to the GeForce NOW library, bringing the total to over 1,200, and announced collaborations with AT&T and Samsung to offer GeForce Now to their customers.
   

Data Center

• Fourth-quarter revenue was a record $3.26 billion, up 71 percent from a year ago and up 11 percent from the previous quarter. Fiscal-year revenue rose 58 percent to a record $10.61 billion.
• Announced that Meta is building its AI Research SuperCluster with NVIDIA^® DGX™ A100 systems.
• Extended its AI leadership, as NVIDIA and partners, including Microsoft Azure, set records across eight popular workloads in the latest MLPerf training results.
• Announced the general release of NVIDIA AI Enterprise 1.1, with updates including production support for containerized AI with NVIDIA software on VMware vSphere with Tanzu.
• Open-sourced NVIDIA FLARE, an SDK enabling healthcare, manufacturing and financial services groups to collaborate on generalizable AI models that harness federated learning where data is sparse, confidential or lacks diversity.
• A team of Stanford researchers set a world record for fastest DNA sequencing of a human genome, using NVIDIA Clara™, Google DeepVariant and Oxford Nanopore Technologies sequencing.

Professional Visualization

Automotive and Robotics

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 2022 financial results and current financial prospects today at 2:30 p.m. Pacific time (5:30 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 2023.

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 stock-based compensation expense, acquisition-related and other costs, IP-related costs, gains and losses from non-affiliated investments, interest expense related to amortization of debt discount, the associated tax impact of these items where applicable, domestication tax benefit, and foreign tax benefit. 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 30,				January 31,				January 30,				January 31,
				2022				2021				2022				2021
Revenue			$	7,643			$	5,003			$	26,914			$	16,675
Cost of revenue				2,644				1,846				9,439				6,279
Gross profit				4,999				3,157				17,475				10,396
Operating expenses
	Research and development			1,466				1,147				5,268				3,924
	Sales, general and administrative			563				503				2,166				1,940
		Total operating expenses		2,029				1,650				7,434				5,864
Income from operations				2,970				1,507				10,041				4,532
	Interest income			9				6				29				57
	Interest expense			(61	)			(53	)			(236	)			(184	)
	Other, net			(53	)			10				107				4
		Other income (expense), net		(105	)			(37	)			(100	)			(123	)
Income before income tax				2,865				1,470				9,941				4,409
Income tax expense (benefit)				(138	)			13				189				77
Net income			$	3,003			$	1,457			$	9,752			$	4,332
Net income per share (A):
	Basic		$	1.20			$	0.59			$	3.91			$	1.76
	Diluted		$	1.18			$	0.58			$	3.85			$	1.73
Weighted average shares used in per share computation (A):
	Basic			2,504				2,478				2,496				2,467
	Diluted			2,545				2,524				2,535				2,510
(A) Reflects a four-for-one stock split on July 19, 2021.

NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
				January 30,			January 31,
					2022			2021
ASSETS
Current assets:
	Cash, cash equivalents and marketable securities			$	21,208		$	11,561
	Accounts receivable, net				4,650			2,429
	Inventories				2,605			1,826
	Prepaid expenses and other current assets				366			239
		Total current assets			28,829			16,055
Property and equipment, net					2,778			2,149
Operating lease assets					829			707
Goodwill					4,349			4,193
Intangible assets, net					2,339			2,737
Deferred income tax assets					1,222			806
Other assets					3,841			2,144
		Total assets		$	44,187		$	28,791
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
	Accounts payable			$	1,783		$	1,149
	Accrued and other current liabilities				2,552			1,777
	Short-term debt				–			999
		Total current liabilities			4,335			3,925
Long-term debt					10,946			5,964
Long-term operating lease liabilities					741			634
Other long-term liabilities					1,553			1,375
		Total liabilities			17,575			11,898
Shareholders’ equity					26,612			16,893
		Total liabilities and shareholders’ equity		$	44,187		$	28,791

NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
			Three Months Ended								Twelve Months Ended
			January 30,				January 31,				January 30,				January 31,
				2022				2021				2022				2021
Cash flows from operating activities:
Net income			$	3,003			$	1,457			$	9,752			$	4,332
Adjustments to reconcile net income to net cash
provided by operating activities:
	Stock-based compensation expense			551				417				2,004				1,397
	Depreciation and amortization			309				287				1,174				1,098
	Deferred income taxes			(225	)			(164	)			(406	)			(282	)
	(Gains) losses on investments in non affiliates, net			53				(9	)			(100	)			–
	Other			21				(8	)			47				(20	)
Changes in operating assets and liabilities, net of acquisitions:
	Accounts receivable			(692	)			117				(2,215	)			(550	)
	Inventories			(374	)			(334	)			(774	)			(524	)
	Prepaid expenses and other assets			(158	)			15				(1,715	)			(394	)
	Accounts payable			183				23				568				312
	Accrued and other current liabilities			423				178				581				290
	Other long-term liabilities			(61	)			88				192				163
Net cash provided by operating activities				3,033				2,067				9,108				5,822
Cash flows from investing activities:
	Proceeds from maturities of marketable securities			7,417				3,627				15,197				8,792
	Proceeds from sales of marketable securities			107				25				1,023				527
	Purchases of marketable securities			(8,767	)			(6,468	)			(24,787	)			(19,308	)
	Purchases related to property and equipment and intangible assets			(273	)			(283	)			(976	)			(1,128	)
	Acquisitions, net of cash acquired			(60	)			–				(263	)			(8,524	)
	Investments and other, net			(11	)			(30	)			(24	)			(34	)
Net cash used in investing activities				(1,587	)			(3,129	)			(9,830	)			(19,675	)
Cash flows from financing activities:
	Proceeds related to employee stock plans			4				4				281				194
	Payments related to tax on restricted stock units			(622	)			(225	)			(1,904	)			(942	)
	Dividends paid			(100	)			(99	)			(399	)			(395	)
	Principal payments on property and equipment			(21	)			(17	)			(83	)			(17	)
	Other			(5	)			(2	)			(7	)			(4	)
	Issuance of debt, net of issuance costs			–				(3	)			4,977				4,968
	Repayment of debt			–				–				(1,000	)			–
Net cash provided by (used in) financing activities				(744	)			(342	)			1,865				3,804
Change in cash and cash equivalents				702				(1,404	)			1,143				(10,049	)
Cash and cash equivalents at beginning of period				1,288				2,251				847				10,896
Cash and cash equivalents at end of period			$	1,990			$	847			$	1,990			$	847

	NVIDIA CORPORATION
	RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
	(In millions, except per share data)
	(Unaudited)
					Three Months Ended												Twelve Months Ended
					January 30,				October 31,				January 31,				January 30,				January 31,
						2022				2021				2021				2022				2021
	GAAP gross profit				$	4,999			$	4,631			$	3,157			$	17,475			$	10,396
	GAAP gross margin					65.4	%			65.2	%			63.1	%			64.9	%			62.3	%
	Acquisition-related and other costs (A)					86				86				92				344				425
	Stock-based compensation expense (B)					39				44				26				141				88
	IP-related costs					–				–				1				9				38
	Non-GAAP gross profit				$	5,124			$	4,761			$	3,276			$	17,969			$	10,947
	Non-GAAP gross margin					67.0	%			67.0	%			65.5	%			66.8	%			65.6	%
	GAAP operating expenses				$	2,029			$	1,960			$	1,650			$	7,434			$	5,864
	Stock-based compensation expense (B)					(512	)			(515	)			(391	)			(1,863	)			(1,309	)
	Acquisition-related and other costs (A)					(70	)			(70	)			(72	)			(292	)			(411	)
	Non-GAAP operating expenses				$	1,447			$	1,375			$	1,187			$	5,279			$	4,144
	GAAP income from operations				$	2,970			$	2,671			$	1,507			$	10,041			$	4,532
	Total impact of non-GAAP adjustments to income from operations					707				715				582				2,649				2,271
	Non-GAAP income from operations				$	3,677			$	3,386			$	2,089			$	12,690			$	6,803
	GAAP other income (expense), net				$	(105	)		$	(33	)		$	(37	)		$	(100	)		$	(123	)
	(Gains) losses from non-affiliated investments					53				(20	)			(9	)			(99	)			–
	Interest expense related to amortization of debt discount					–				1				1				3				3
	Non-GAAP other income (expense), net				$	(52	)		$	(52	)		$	(45	)		$	(196	)		$	(120	)
	GAAP net income				$	3,003			$	2,464			$	1,457			$	9,752			$	4,332
	Total pre-tax impact of non-GAAP adjustments					760				696				574				2,553				2,274
	Income tax impact of non-GAAP adjustments (C)					(330	)			(187	)			(74	)			(712	)			(329	)
	Domestication tax adjustments					7				–				–				(244	)			–
	Foreign tax benefit					(90	)			–				–				(90	)			–
	Non-GAAP net income				$	3,350			$	2,973			$	1,957			$	11,259			$	6,277
	Diluted net income per share (D)
	GAAP				$	1.18			$	0.97			$	0.58			$	3.85			$	1.73
	Non-GAAP				$	1.32			$	1.17			$	0.78			$	4.44			$	2.50
	Weighted average shares used in diluted net income per share computation (D)					2,545				2,538				2,524				2,535				2,510
	GAAP net cash provided by operating activities				$	3,033			$	1,519			$	2,067			$	9,108			$	5,822
	Purchases related to property and equipment and intangible assets					(273	)			(221	)			(283	)			(976	)			(1,128	)
	Principal payments on property and equipment					(21	)			(22	)			(17	)			(83	)			(17	)
	Free cash flow				$	2,739			$	1,276			$	1,767			$	8,049			$	4,677
	(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												Twelve Months Ended
					January 30,				October 31,				January 31,				January 30,				January 31,
						2022				2021				2021				2022				2021
	Cost of revenue				$	86			$	86			$	92			$	344			$	425
	Research and development				$	9			$	7			$	2			$	19			$	9
	Sales, general and administrative				$	61			$	63			$	70			$	273			$	402
	(B) Stock-based compensation consists of the following:
					Three Months Ended												Twelve Months Ended
					January 30,				October 31,				January 31,				January 30,				January 31,
						2022				2021				2021				2022				2021
	Cost of revenue				$	39			$	44			$	26			$	141			$	88
	Research and development				$	362			$	363			$	266			$	1,298			$	860
	Sales, general and administrative				$	150			$	152			$	125			$	565			$	449
	(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.

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
		Q1 FY2023 Outlook
		($ in millions)
GAAP gross margin			65.2%
	Impact of stock-based compensation expense and acquisition-related costs		1.8%
Non-GAAP gross margin			67.0%
GAAP operating expenses		$	3,550
	Arm write-off cost		(1,357	)
	Stock-based compensation expense and acquisition-related costs		(593	)
Non-GAAP operating expenses		$	1,600

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