10-KPeriod: FY2021

NVIDIA CORP Annual Report, Year Ended Jan 31, 2021

Filed February 26, 2021For Securities:NVDA

Summary

NVIDIA Corporation's (NVDA) 2021 10-K filing highlights a period of significant growth and strategic expansion. The company experienced a robust 53% increase in revenue, reaching $16.68 billion, largely driven by a substantial 124% surge in its Data Center segment, bolstered by the Mellanox acquisition and the ramp-up of its Ampere architecture. The Gaming segment also showed strong performance with a 41% increase. NVIDIA's platform strategy, which unifies hardware, software, and services across diverse markets like Gaming, Professional Visualization, Data Center, and Automotive, continues to be a key differentiator. The company is actively pursuing significant growth opportunities, most notably the pending acquisition of Arm Limited for $40 billion, which aims to combine NVIDIA's AI expertise with Arm's vast ecosystem. This strategic move is expected to accelerate innovation and expand NVIDIA's reach into high-growth markets. Despite global economic uncertainties and supply chain challenges exacerbated by COVID-19, NVIDIA demonstrated resilience and operational strength, underscoring its leadership in accelerated computing and artificial intelligence.

Financial Highlights

57 data points
Beta

Revenue

$16.68B

62.3% Gross Margin

Net Income

$4.33B

26.0% Net Margin

EPS (Diluted)

$0.17

Total Assets

$28.79B

Cash & Equivalents

$847.00M

Free Cash Flow

$5.82B

Financial Statements
Beta
Revenue$16.68B
Cost of Revenue$6.28B
Gross Profit$10.40B
R&D Expenses$3.92B
SG&A Expenses$1.94B
Operating Expenses$5.86B
Operating Income$4.53B
Interest Expense$184.00M
Net Income$4.33B
EPS (Basic)$0.18
EPS (Diluted)$0.17
Shares Outstanding (Basic)24.67B
Shares Outstanding (Diluted)25.10B

Key Highlights

  • 1Achieved a substantial 53% year-over-year revenue increase, reaching $16.68 billion for fiscal year 2021.
  • 2Data Center segment revenue grew by an impressive 124%, significantly boosted by the acquisition of Mellanox and the strong performance of the Ampere GPU architecture.
  • 3Gaming segment revenue increased by 41%, driven by new GeForce RTX 30 Series GPUs and expanded GeForce NOW services.
  • 4Announced the pending acquisition of Arm Limited for $40 billion, a strategic move to enhance its AI platform and expand market reach.
  • 5Successfully integrated the Mellanox acquisition, contributing 10% of total company revenue in FY2021 and strengthening its data center and networking capabilities.
  • 6Reported strong growth in operating income (up 59%) and net income (up 55%), indicating robust profitability amidst rapid expansion.
  • 7Continued investment in R&D (23.5% of revenue) to drive innovation across its core platforms, including AI, visual computing, and autonomous vehicles.

Frequently Asked Questions

NVIDIA's primary growth driver in fiscal year 2021 was its Data Center segment, which saw a 124% increase in revenue. This growth was fueled by the acquisition of Mellanox, the successful ramp-up of NVIDIA's Ampere GPU architecture, and increased demand for AI and high-performance computing solutions.

NVIDIA announced its agreement to acquire Arm Limited for $40 billion in September 2020. This acquisition is strategically crucial as it aims to combine NVIDIA's leading AI computing platform with Arm's extensive ecosystem, creating a premier computing company for the AI age. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of calendar year 2022.

NVIDIA's market platforms showed varied performance. Gaming revenue grew 41% due to strong demand for new GPUs and services. Professional Visualization revenue declined 13% impacted by enterprise demand shifts due to COVID-19. Data Center revenue surged 124%. Automotive revenue decreased 23%, reflecting a shift in product cycles, while OEM and Other revenue increased 25%.

Key financial highlights include a 53% increase in total revenue to $16.68 billion, a gross margin of 62.3%, and a significant increase in operating income (up 59%) and net income (up 55%) to $4.33 billion. The company also maintained a strong cash position of $11.56 billion in cash, cash equivalents, and marketable securities.