NVIDIA Announces Financial Results for Third Quarter Fiscal 2021
|
NVIDIA CORPORATION |
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
| (In millions, except per share data) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Nine Months Ended |
| |
October 25, |
|
July 26, |
|
October 27, |
|
October 25, |
|
October 27, |
| |
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
| |
|
|
|
|
|
|
|
|
|
| GAAP gross profit |
$ |
2,960 |
|
|
$ |
2,275 |
|
|
$ |
1,916 |
|
|
$ |
7,240 |
|
|
$ |
4,753 |
|
| GAAP gross margin |
|
62.6 |
% |
|
|
58.8 |
% |
|
|
63.6 |
% |
|
|
62.0 |
% |
|
|
60.8 |
% |
| Acquisition-related and other costs (B) |
|
86 |
|
|
|
245 |
|
|
|
- |
|
|
|
331 |
|
|
|
- |
|
| Stock-based compensation expense (A) |
|
28 |
|
|
|
14 |
|
|
|
15 |
|
|
|
62 |
|
|
|
27 |
|
| Legal settlement costs |
|
21 |
|
|
|
17 |
|
|
|
- |
|
|
|
38 |
|
|
|
11 |
|
| Non-GAAP gross profit |
$ |
3,095 |
|
|
$ |
2,551 |
|
|
$ |
1,931 |
|
|
$ |
7,671 |
|
|
$ |
4,791 |
|
| Non-GAAP gross margin |
|
65.5 |
% |
|
|
66.0 |
% |
|
|
64.1 |
% |
|
|
65.7 |
% |
|
|
61.3 |
% |
| |
|
|
|
|
|
|
|
|
|
| GAAP operating expenses |
$ |
1,562 |
|
|
$ |
1,624 |
|
|
$ |
989 |
|
|
$ |
4,215 |
|
|
$ |
2,897 |
|
| Stock-based compensation expense (A) |
|
(355 |
) |
|
|
(360 |
) |
|
|
(208 |
) |
|
|
(919 |
) |
|
|
(597 |
) |
| Acquisition-related and other costs (B) |
|
(106 |
) |
|
|
(229 |
) |
|
|
(7 |
) |
|
|
(338 |
) |
|
|
(22 |
) |
| Legal settlement costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2 |
) |
| Non-GAAP operating expenses |
$ |
1,101 |
|
|
$ |
1,035 |
|
|
$ |
774 |
|
|
$ |
2,958 |
|
|
$ |
2,276 |
|
| |
|
|
|
|
|
|
|
|
|
| GAAP income from operations |
$ |
1,398 |
|
|
$ |
651 |
|
|
$ |
927 |
|
|
$ |
3,025 |
|
|
$ |
1,856 |
|
| Total impact of non-GAAP adjustments to income from operations |
|
595 |
|
|
|
865 |
|
|
|
229 |
|
|
|
1,689 |
|
|
|
659 |
|
| Non-GAAP income from operations |
$ |
1,993 |
|
|
$ |
1,516 |
|
|
$ |
1,156 |
|
|
$ |
4,714 |
|
|
$ |
2,515 |
|
| |
|
|
|
|
|
|
|
|
|
| GAAP other income (expense), net |
$ |
(50 |
) |
|
$ |
(42 |
) |
|
$ |
32 |
|
|
$ |
(86 |
) |
|
$ |
98 |
|
| Losses from non-affiliated investments |
|
4 |
|
|
|
2 |
|
|
|
- |
|
|
|
9 |
|
|
|
1 |
|
| Interest expense related to amortization of debt discount |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
| Non-GAAP other income (expense), net |
$ |
(45 |
) |
|
$ |
(39 |
) |
|
$ |
33 |
|
|
$ |
(76 |
) |
|
$ |
100 |
|
| |
|
|
|
|
|
|
|
|
|
| GAAP net income |
$ |
1,336 |
|
|
$ |
622 |
|
|
$ |
899 |
|
|
$ |
2,875 |
|
|
$ |
1,845 |
|
| Total pre-tax impact of non-GAAP adjustments |
|
600 |
|
|
|
868 |
|
|
|
230 |
|
|
|
1,699 |
|
|
|
660 |
|
| Income tax impact of non-GAAP adjustments (C) |
|
(102 |
) |
|
|
(124 |
) |
|
|
(26 |
) |
|
|
(255 |
) |
|
|
(97 |
) |
| Non-GAAP net income |
$ |
1,834 |
|
|
$ |
1,366 |
|
|
$ |
1,103 |
|
|
$ |
4,319 |
|
|
$ |
2,408 |
|
| |
|
|
|
|
|
|
|
|
|
| Diluted net income per share |
|
|
|
|
|
|
|
|
|
| GAAP |
$ |
2.12 |
|
|
$ |
0.99 |
|
|
$ |
1.45 |
|
|
$ |
4.59 |
|
|
$ |
2.99 |
|
| Non-GAAP |
$ |
2.91 |
|
|
$ |
2.18 |
|
|
$ |
1.78 |
|
|
$ |
6.90 |
|
|
$ |
3.90 |
|
| |
|
|
|
|
|
|
|
|
|
| Weighted average shares used in diluted net income per share computation |
|
630 |
|
|
|
626 |
|
|
|
618 |
|
|
|
626 |
|
|
|
617 |
|
| |
|
|
|
|
|
|
|
|
|
| GAAP net cash provided by operating activities |
$ |
1,279 |
|
|
$ |
1,566 |
|
|
$ |
1,640 |
|
|
$ |
3,755 |
|
|
$ |
3,296 |
|
| Purchases related to property and equipment and intangible assets |
|
(473 |
) |
|
|
(217 |
) |
|
|
(104 |
) |
|
|
(845 |
) |
|
|
(344 |
) |
| Free cash flow |
$ |
806 |
|
|
$ |
1,349 |
|
|
$ |
1,536 |
|
|
$ |
2,910 |
|
|
$ |
2,952 |
|
| |
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
|
|
|
|
|
| (A) Stock-based compensation consists of the following: |
Three Months Ended |
|
Nine Months Ended |
| |
October 25, |
|
July 26, |
|
October 27, |
|
October 25, |
|
October 27, |
| |
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
| Cost of revenue |
$ |
28 |
|
|
$ |
14 |
|
|
$ |
15 |
|
|
$ |
62 |
|
|
$ |
27 |
|
| Research and development |
$ |
232 |
|
|
$ |
228 |
|
|
$ |
141 |
|
|
$ |
594 |
|
|
$ |
400 |
|
| Sales, general and administrative |
$ |
123 |
|
|
$ |
132 |
|
|
$ |
67 |
|
|
$ |
325 |
|
|
$ |
197 |
|
| |
|
|
|
|
|
|
|
|
|
| (B) 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 25, |
|
July 26, |
|
October 27, |
|
October 25, |
|
October 27, |
| |
|
2020 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
| Cost of revenue |
$ |
86 |
|
|
$ |
245 |
|
|
$ |
- |
|
|
$ |
331 |
|
|
$ |
- |
|
| Research and development |
$ |
2 |
|
|
$ |
3 |
|
|
$ |
1 |
|
|
$ |
7 |
|
|
$ |
4 |
|
| Sales, general and administrative |
$ |
104 |
|
|
$ |
226 |
|
|
$ |
6 |
|
|
$ |
331 |
|
|
$ |
18 |
|
| |
|
|
|
|
|
|
|
|
|
| (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). |
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