NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2022

Rhea-AI Summary

NVIDIA reported record quarterly revenue of $7.64 billion for Q4 FY22, marking a 53% increase year-over-year. Fiscal-year revenue reached $26.91 billion, up 61%. GAAP earnings per diluted share were a record $1.18, up 103% YOY. Significant growth was noted in Gaming, Data Center, and Professional Visualization sectors. However, NVIDIA terminated its acquisition of Arm due to regulatory challenges, leading to a $1.36 billion write-off. The outlook for Q1 FY23 anticipates revenue of $8.10 billion.

Positive

• Record quarterly revenue of $7.64 billion, up 53% Y/Y.
• Record annual revenue of $26.91 billion, up 61% from $16.68 billion.
• GAAP EPS of $1.18, up 103% Y/Y; non-GAAP EPS $1.32, up 69% Y/Y.
• Gaming revenue reached $3.42 billion, up 37% Y/Y.
• Data Center revenue of $3.26 billion, up 71% Y/Y.

Negative

• Acquisition of Arm terminated, leading to a $1.36 billion write-off.
• Automotive revenue down 14% Y/Y to $125 million.

• 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

• Fourth-quarter revenue was a record $643 million, up 109 percent from a year ago and up 11 percent from the previous quarter. Fiscal-year revenue rose 100 percent to a record $2.11 billion.
• Launched NVIDIA Omniverse™ for Creators, making it available at no cost to millions of individual creators.
• Launched Omniverse Universal Scene Description connector for Blender, the world’s most popular open-source 3D creative application.
• University of Illinois at Urbana-Champaign researchers built what is believed to be the longest, most complex 3D cell simulation using NVIDIA GPU-accelerated software.

Automotive and Robotics

• Fourth-quarter Automotive revenue was $125 million, down 14 percent from a year ago and down 7 percent from the previous quarter. Fiscal-year revenue rose 6 percent to $566 million.
• Formed a multi-year partnership with Jaguar Land Rover to jointly develop and deliver next-generation automated driving systems, plus AI-enabled services and experiences.
• Announced that NIO’s ET5 sedan, Xpeng’s G9 SUV and Pony.ai’s robotaxi fleet are using NVIDIA DRIVE Orin™.
• Announced that Desay, Flex, Quanta, Valeo and ZF are using the NVIDIA DRIVE Hyperion™ platform to manufacture safe and secure AV systems for vehicle makers.
• Launched the Isaac Autonomous Mobile Robot platform for building and deploying robotics applications.
  

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.

About NVIDIA
NVIDIA’s (NASDAQ: NVDA) invention of the GPU in 1999 sparked the growth of the PC gaming market and has redefined modern computer graphics, high performance computing and artificial intelligence. The company’s pioneering work in accelerated computing and AI is reshaping trillion-dollar industries, such as transportation, healthcare and manufacturing, and fueling the growth of many others. More information at https://nvidianews.nvidia.com/.

For further information, contact:

Simona Jankowski		Robert Sherbin
Investor Relations		Corporate Communications
NVIDIA Corporation		NVIDIA Corporation
sjankowski@nvidia.com		rsherbin@nvidia.com

Certain statements in this press release including, but not limited to, statements as to: the benefits, performance, impact, and abilities of our products and technologies, including NVIDIA AI, NVIDIA Omniverse, NVIDIA DRIVE, the GeForce RTX 3050 desktop GPU, GeForce RTX 3080 Ti and RTX 3070 Ti laptop GPUs, Studio GeForce, NVIDIA Reflex, GeForce NOW, NVIDIA DGX A100 systems, NVIDIA AI Enterprise 1.1, NVIDIA FLARE, NVIDIA Clara, NVIDIA Omniverse for Creators, Omniverse Universal Scene Description, NVIDIA GPU-accelerated software, NVIDIA DRIVE Orin, NVIDIA DRIVE Hyperion, and the Isaac Autonomous Mobile Robot platform; the momentum across our businesses; NVIDIA propelling advances in AI, digital biology, climate sciences, gaming, creative design, autonomous vehicles and robotics; our upcoming developer conference at GTC; our plans to announce many new products, applications, and partners for NVIDIA computing at GTC; our collaborations with AT&T and Samsung and our partnership with Jaguar Land Rover; NVIDIA’s next quarterly cash dividend; our intention to record a charge in connection with the termination of the Share Purchase Agreement related to Arm Limited; NVIDIA’s financial outlook for the first quarter of fiscal 2023; and NVIDIA’s expected tax rates for the first quarter of fiscal 2023 are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2022 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, GeForce NOW, GeForce RTX, NVIDIA Clara, NVIDIA DGX, NVIDIA DRIVE, NVIDIA DRIVE Hyperion, NVIDIA DRIVE Orin, NVIDIA Isaac and NVIDIA Omniverse trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.

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

FAQ

What were NVIDIA's earnings for Q4 FY22?

NVIDIA reported Q4 FY22 earnings per diluted share of $1.18, a 103% increase from the previous year.

How much revenue did NVIDIA generate in fiscal 2022?

NVIDIA generated record revenue of $26.91 billion in fiscal 2022, up 61% from the prior year.

What is NVIDIA's guidance for Q1 FY23 revenue?

NVIDIA expects Q1 FY23 revenue to be $8.10 billion, plus or minus 2%.

What sectors contributed to NVIDIA's record revenue?

Record revenue was achieved in Gaming, Data Center, and Professional Visualization sectors.

What was the impact of the terminated Arm acquisition on NVIDIA?

The termination of the Arm acquisition resulted in a $1.36 billion write-off recorded in operating expenses.