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NVIDIA Announces Financial Results for Second Quarter Fiscal 2022

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NVIDIA reported a record revenue of $6.51 billion for Q2 FY22, marking a significant 68% increase year-over-year and a 15% rise quarter-over-quarter. The company's GAAP earnings per share reached $0.94, up 276% from last year. Key segments include Gaming revenue of $3.06 billion (up 85%) and Data Center revenue of $2.37 billion (up 35%). NVIDIA expects Q3 revenue of approximately $6.80 billion with gross margins around 65.2%. The company continues to innovate in AI and gaming technologies, launching several notable products and platforms.

Positive
  • Record revenue of $6.51 billion, up 68% year-over-year.
  • Gaming segment revenue reached $3.06 billion, a significant 85% increase.
  • Data Center revenue of $2.37 billion, up 35% compared to the previous year.
  • GAAP earnings per share of $0.94, a 276% increase year-over-year.
  • Introduced new products like GeForce RTX 3080 Ti, enhancing performance.
Negative
  • Operating expenses increased by 6% to $1.77 billion, though revenue growth outpaced this.
  • Record revenue of $6.51 billion, up 68 percent from a year earlier
  • Record Gaming revenue of $3.06 billion, up 85 percent from a year earlier
  • Record Data Center revenue of $2.37 billion, up 35 percent from a year earlier

SANTA CLARA, Calif., Aug. 18, 2021 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported record revenue for the second quarter ended August 1, 2021, of $6.51 billion, up 68 percent from a year earlier and up 15 percent from the previous quarter, with record revenue from the company’s Gaming, Data Center and Professional Visualization platforms.

GAAP earnings per diluted share for the quarter were $0.94, up 276 percent from a year ago and up 24 percent from the previous quarter. Non-GAAP earnings per diluted share were $1.04, up 89 percent from a year ago and up 14 percent from the previous quarter.

“NVIDIA’s pioneering work in accelerated computing continues to advance graphics, scientific computing and AI,” said Jensen Huang, founder and CEO of NVIDIA.

“Enabled by the NVIDIA platform, developers are creating the most impactful technologies of our time – from natural language understanding and recommender systems, to autonomous vehicles and logistic centers, to digital biology and climate science, to metaverse worlds that obey the laws of physics.

“This quarter, we launched NVIDIA Base Command and Fleet Command to develop, deploy, scale and orchestrate the AI workloads that run on the NVIDIA AI Enterprise software suite. With our new enterprise software, wide range of NVIDIA-powered systems and global network of system and integration partners, we can accelerate the world’s largest industries racing to benefit from the transformative power of AI.

“We are thrilled to have launched NVIDIA Omniverse, a simulation platform nearly five years in the making that runs physically realistic virtual worlds and connects to other digital platforms. We imagine engineers, designers and even autonomous machines connecting to Omniverse to create digital twins and industrial metaverses,” he said.

NVIDIA paid quarterly cash dividends of $100 million in the second quarter. It will pay its next quarterly cash dividend of $0.04 per share on September 23, 2021, to all shareholders of record on September 1, 2021.

On July 19, 2021, the company completed a four-for-one split of its common stock in the form of a stock dividend to shareholders of record as of June 21, 2021. All share and per share amounts presented have been retroactively adjusted to reflect the stock split.


Q2 Fiscal 2022 Summary

GAAP
($ in millions, except earnings per share)Q2 FY22Q1 FY22Q2 FY21Q/QY/Y
Revenue$6,507 $5,661 $3,866 Up 15%Up 68%
Gross margin 64.8% 64.1% 58.8%Up 70 bpsUp 600 bps
Operating expenses$1,771 $1,673 $1,624 Up 6%Up 9%
Operating income$2,444 $1,956 $651 Up 25%Up 275%
Net income$2,374 $1,912 $622 Up 24%Up 282%
Diluted earnings per share$0.94 $0.76 $0.25 Up 24%Up 276%


Non-GAAP
($ in millions, except earnings per share)Q2 FY22Q1 FY22Q2 FY21Q/QY/Y
Revenue$6,507 $5,661 $3,866 Up 15%Up 68%
Gross margin 66.7% 66.2% 66.0%Up 50 bpsUp 70 bps
Operating expenses$1,266 $1,189 $1,035 Up 6%Up 22%
Operating income$3,071 $2,557 $1,516 Up 20%Up 103%
Net income$2,623 $2,313 $1,366 Up 13%Up 92%
Diluted earnings per share$1.04 $0.91 $0.55 Up 14%Up 89%

NVIDIA’s outlook for the third quarter of fiscal 2022 is as follows:

  • Revenue is expected to be $6.80 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 and non-GAAP operating expenses are expected to be approximately $1.96 billion and $1.37 billion, respectively.
  • GAAP and non-GAAP other income and expense are both expected to be an expense of approximately $60 million, excluding gains and losses on equity securities.
  • GAAP and non-GAAP tax rates are both expected to be 11 percent, plus or minus 1 percent, excluding any discrete items such as excess tax benefits or deficiencies related to stock-based compensation.

Highlights

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

Gaming

Data Center

Professional Visualization

  • Second-quarter revenue was a record $519 million, up 156 percent from a year earlier and up 40 percent from the previous quarter.
  • Expanded NVIDIA Omniverse™, the world’s first 3D, real-time simulation and collaboration platform, through new integrations with Blender and Adobe, applications used by millions of users.
  • Launched the NVIDIA RTX A2000, which brings RTX to the volume segment of the desktop workstation market and enables a range of new form factors from backs of displays to edge devices.

Automotive

  • Second-quarter revenue was $152 million, up 37 percent from a year earlier and down 1 percent from the previous quarter.
  • Announced that self-driving startup AutoX’s Gen5 robotaxi platform uses NVIDIA DRIVE® to achieve level 4 autonomy.
  • Collaborated with autonomous trucking company Plus on plans to provide Amazon with at least 1,000 self-driving systems, which are powered by NVIDIA DRIVE.
  • Announced that autonomous trucking platform startup Embark is using NVIDIA DRIVE to create systems for Freightliner, Navistar International, PACCAR and Volvo.

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 second quarter financial results and current financial prospects today at 2 p.m. Pacific time (5 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 third quarter of fiscal 2022.

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, mark to market adjustments of our publicly traded equity securities, interest expense related to amortization of debt discount, the associated tax impact of these items where applicable, and domestication 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: NVIDIA’s pioneering work in accelerated computing and its impacts; NVIDIA’s platform enabling developers to create the most impactful technologies of our time; NVIDIA accelerating the world’s largest industries racing to benefit from the transformative power of AI; the benefits, performance and abilities of our products and technologies, including NVIDIA Base Command, Fleet Command, NVIDIA Omniverse, GeForce RTX 3080 Ti and 3070 Ti, NVIDIA Reflex, GeForce NOW, NVIDIA AI LaunchPad, TensorRT 8, NVIDIA A100 GPU VMs, NVIDIA BlueField-2, NVIDIA RTX A2000, and NVIDIA DRIVE; our ability to bring the power of AI to the world’s largest industries with our global network of system partners and new enterprise software and subscriptions; engineers, designers and autonomous machines connecting to Omniverse to create digital twins and industrial metaverses; NVIDIA’s next quarterly cash dividend; NVIDIA’s financial outlook for the third quarter of fiscal 2022; NVIDIA’s expected tax rates for the third quarter of fiscal 2022; and the impact of the first AI-on-5G Innovation Lab 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.

© 2021 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, BlueField, Fleet Command, GeForce NOW, GeForce RTX, NVIDIA Base Command, NVIDIA DOCA, NVIDIA DRIVE, NVIDIA Omniverse, NVIDIA RTX, GeForce NOW, GeForce RTX and TensorRT are 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 Six Months Ended 
   August 1, July 26, August 1, July 26, 
   2021 2020 2021 2020 
           
Revenue$6,507  $3,866  $12,168  $6,946  
Cost of revenue 2,292   1,591   4,324   2,667  
Gross profit 4,215   2,275   7,844   4,279  
Operating expenses        
 Research and development 1,245   997   2,398   1,732  
 Sales, general and administrative 526   627   1,046   920  
  Total operating expenses 1,771   1,624   3,444   2,652  
Income from operations 2,444   651   4,400   1,627  
 Interest income 6   13   13   44  
 Interest expense (60)  (54)  (113)  (78) 
 Other, net 4   (1)  138   (2) 
  Other income (expense), net (50)  (42)  38   (36) 
Income before income tax 2,394   609   4,438   1,591  
Income tax expense (benefit) 20   (13)  153   52  
Net income$2,374  $622  $4,285  $1,539  
           
Net income per share (A):        
 Basic$0.95  $0.25  $1.72  $0.63  
 Diluted$0.94  $0.25  $1.69  $0.62  
           
Weighted average shares used in per share computation (A):       
 Basic 2,493   2,464   2,489   2,460  
 Diluted 2,532   2,504   2,529   2,496  
           
(A) Reflects a four-for-one stock split on July 19, 2021. 


NVIDIA CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(In millions) 
(Unaudited) 
        
        
    August 1, January 31, 
    2021 2021 
ASSETS     
        
Current assets:     
 Cash, cash equivalents and marketable securities $19,654 $11,561 
 Accounts receivable, net  3,586  2,429 
 Inventories  2,114  1,826 
 Prepaid expenses and other current assets  452  239 
  Total current assets  25,806  16,055 
        
Property and equipment, net  2,364  2,149 
Operating lease assets  801  707 
Goodwill  4,193  4,193 
Intangible assets, net  2,478  2,737 
Deferred income tax assets  958  806 
Other assets  2,050  2,144 
  Total assets $38,650 $28,791 
        
LIABILITIES AND SHAREHOLDERS' EQUITY 
        
Current liabilities:     
 Accounts payable $1,474 $1,201 
 Accrued and other current liabilities  1,974  1,725 
 Short-term debt  1,000  999 
  Total current liabilities  4,448  3,925 
        
Long-term debt  10,943  5,964 
Long-term operating lease liabilities  716  634 
Other long-term liabilities  1,396  1,375 
  Total liabilities  17,503  11,898 
        
Shareholders' equity  21,147  16,893 
  Total liabilities and shareholders' equity $38,650 $28,791 


NVIDIA CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
(In millions) 
(Unaudited) 
           
           
   Three Months Ended Six Months Ended 
   August 1, July 26, August 1, July 26, 
   2021 2020 2021 2020 
           
Cash flows from operating activities:        
Net income$2,374  $622  $4,285  $1,539  
Adjustments to reconcile net income to net cash        
provided by operating activities:        
 Stock-based compensation expense 465   374   894   598  
 Depreciation and amortization 286   404   567   511  
 Deferred income taxes (185)  (80)  (161)  (64) 
 (Gains) losses on investments in non affiliates, net 1   2   (133)  5  
 Other 18   (10)  16   (10) 
Changes in operating assets and liabilities, net of acquisitions:        
 Accounts receivable (563)  44   (1,157)  (205) 
 Inventories (123)  54   (282)  (97) 
 Prepaid expenses and other assets 16   42   18   34  
 Accounts payable 209   (8)  279   63  
 Accrued and other current liabilities 133   112   132   81  
 Other long-term liabilities 51   10   98   21  
Net cash provided by operating activities 2,682   1,566   4,556   2,476  
Cash flows from investing activities:        
 Proceeds from maturities of marketable securities 2,096   1,032   5,236   1,032  
 Proceeds from sales of marketable securities 347   258   705   259  
 Purchases of marketable securities (4,798)  (7,425)  (9,268)  (8,286) 
 Purchases related to property and equipment and intangible assets  (183)  (217)  (481)  (372) 
 Investments and other, net 5   -   3   (7) 
 Acquisitions, net of cash acquired -   (7,137)  -   (7,171) 
Net cash used in investing activities (2,533)  (13,489)  (3,805)  (14,545) 
Cash flows from financing activities:        
 Issuance of debt, net of issuance costs 4,985   (8)  4,985   4,971  
 Proceeds related to employee stock plans 2   6   128   94  
 Payments related to tax on restricted stock units (365)  (196)  (843)  (418) 
 Dividends paid (100)  (99)  (198)  (197) 
 Principal payments on property and equipment (21)  -   (40)  -  
 Other -   -   (2)  (3) 
Net cash provided by (used in) financing activities 4,501   (297)  4,030   4,447  
Change in cash and cash equivalents 4,650   (12,220)  4,781   (7,622) 
Cash and cash equivalents at beginning of period 978   15,494   847   10,896  
Cash and cash equivalents at end of period$5,628  $3,274  $5,628  $3,274  


 NVIDIA CORPORATION 
 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES 
 (In millions, except per share data) 
 (Unaudited) 
            
    Three Months Ended  Six Months Ended 
    August 1, May 2, July 26, August 1, July 26, 
    2021 2021 2020 2021 2020 
              
 GAAP gross profit$4,215  $3,629  $2,275  $7,844  $4,279  
 GAAP gross margin 64.8%  64.1%  58.8%  64.5%  61.6% 
 Acquisition-related and other costs (A) 86   87   245   173   246  
 Stock-based compensation expense (B) 32   25   14   57   35  
 IP-related costs  4   5   17   9   17  
 Non-GAAP gross profit$4,337  $3,746  $2,551  $8,083  $4,577  
 Non-GAAP gross margin 66.7%  66.2%  66.0%  66.4%  65.9% 
              
 GAAP operating expenses$1,771  $1,673  $1,624  $3,444  $2,652  
 Stock-based compensation expense (B) (433)  (404)  (360)  (837)  (563) 
 Acquisition-related and other costs (A) (72)  (80)  (229)  (152)  (233) 
 Non-GAAP operating expenses$1,266  $1,189  $1,035  $2,455  $1,856  
              
 GAAP income from operations$2,444  $1,956  $651  $4,400  $1,627  
 Total impact of non-GAAP adjustments to income from operations 627   601   865   1,228   1,094  
 Non-GAAP income from operations$3,071  $2,557  $1,516  $5,628  $2,721  
              
 GAAP other income (expense), net$(50) $88  $(42) $38  $(36) 
 (Gains) losses from non-affiliated investments -   (134)  2   (133)  5  
 Interest expense related to amortization of debt discount 1   1   1   2   1  
 Non-GAAP other income (expense), net$(49) $(45) $(39) $(93) $(30) 
              
 GAAP net income $2,374  $1,912  $622  $4,285  $1,539  
 Total pre-tax impact of non-GAAP adjustments 628   468   868   1,097   1,100  
 Income tax impact of non-GAAP adjustments (C) (127)  (67)  (124)  (194)  (153) 
 Domestication tax benefit (252)  -   -   (252)  -  
 Non-GAAP net income$2,623  $2,313  $1,366  $4,936  $2,486  
              
 Diluted net income per share (D)          
 GAAP $0.94  $0.76  $0.25  $1.69  $0.62  
 Non-GAAP $1.04  $0.91  $0.55  $1.95  $1.00  
              
 Weighted average shares used in diluted net income per share computation (D)   2,532   2,528   2,504   2,529   2,496  
              
 GAAP net cash provided by operating activities$2,682  $1,874  $1,566  $4,556  $2,476  
 Purchases related to property and equipment and intangible assets (183)  (298)  (217)  (481)  (372) 
 Principal payments on property and equipment (21)  (19)  -   (40)  -  
 Free cash flow $2,478  $1,557  $1,349  $4,035  $2,104  
   
              
 (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 Six Months Ended 
    August 1, May 2, July 26, August 1, July 26, 
    2021 2021 2020 2021 2020 
 Cost of revenue$86  $87  $245  $173  $246  
 Research and development$1  $1  $3  $4  $5  
 Sales, general and administrative$71  $79  $226  $148  $228  
              
 (B) Stock-based compensation consists of the following:    
    Three Months Ended Six Months Ended 
    August 1, May 2, July 26, August 1, July 26, 
    2021 2021 2020 2021 2020 
 Cost of revenue$32  $25  $14  $57  $35  
 Research and development$297  $276  $228  $573  $362  
 Sales, general and administrative$136  $128  $132  $264  $201  
              
 (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 
    
  
  Q3 FY2022
Outlook
 
  ($ in millions) 
    
GAAP gross margin 65.2% 
 Impact of stock-based compensation expense, acquisition-related costs, and other costs 1.8% 
Non-GAAP gross margin 67.0% 
    
GAAP operating expenses$1,960  
 Stock-based compensation expense, acquisition-related costs, and other costs (590) 
Non-GAAP operating expenses$1,370  
    

FAQ

What was NVIDIA's revenue for Q2 FY22?

NVIDIA reported a record revenue of $6.51 billion for Q2 FY22.

How much did NVIDIA earn per share in Q2 FY22?

NVIDIA's GAAP earnings per diluted share for Q2 FY22 were $0.94.

What is NVIDIA's revenue outlook for Q3 FY22?

NVIDIA expects Q3 revenue to be approximately $6.80 billion.

How did NVIDIA's Gaming segment perform in Q2 FY22?

The Gaming segment achieved revenue of $3.06 billion, up 85% year-over-year.

What was NVIDIA's Data Center revenue in Q2 FY22?

Data Center revenue for NVIDIA was $2.37 billion, reflecting a 35% increase from the prior year.

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