01—Abstract
Summary
Summary of the 10-K filed February 26, 2021. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Achieved a substantial 53% year-over-year revenue increase, reaching $16.68 billion for fiscal year 2021.
- Data Center segment revenue grew by an impressive 124%, significantly boosted by the acquisition of Mellanox and the strong performance of the Ampere GPU architecture.
- Gaming segment revenue increased by 41%, driven by new GeForce RTX 30 Series GPUs and expanded GeForce NOW services.
- Announced the pending acquisition of Arm Limited for $40 billion, a strategic move to enhance its AI platform and expand market reach.
- Successfully integrated the Mellanox acquisition, contributing 10% of total company revenue in FY2021 and strengthening its data center and networking capabilities.
- Reported strong growth in operating income (up 59%) and net income (up 55%), indicating robust profitability amidst rapid expansion.
- Continued investment in R&D (23.5% of revenue) to drive innovation across its core platforms, including AI, visual computing, and autonomous vehicles.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, NVIDIA Corp kept $0.26.
- Revenue$16.68B100.0%
- Cost of revenue−$6.28B37.7%
- Gross profit$10.40B62.3%
- Operating costs−$5.86B35.2%
- Operating income$4.53B27.2%
- Interest, other & tax−$200.0M1.2%
- Net income$4.33B26.0%
Where FY2021 revenue went
$16.68B- Cost of revenue: $6.28B, 38% of revenue
- Net income: $4.33B, 26% of revenue
- R&D: $3.92B, 24% of revenue
- SG&A: $1.94B, 12% of revenue
- Interest, other & tax: $200.0M, 1.2% of revenue
Kept 26% as net incomeInterest, other & tax $200.0M · 1.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 26, 2021Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $16.68B$10.92B | +52.7% |
| Cost of Revenue | $6.28B$4.15B | +51.3% |
| Gross Profit | $10.40B$6.77B | +53.6% |
| R&D Expenses | $3.92B$2.83B | +38.7% |
| SG&A Expenses | $1.94B$1.09B | +77.5% |
| Operating Expenses | $5.86B$3.92B | +49.5% |
| Operating Income | $4.53B$2.85B | +59.2% |
| Interest Expense | $184.00M$52.00M | +253.8% |
| Net Income | $4.33B$2.80B | +54.9% |
| EPS (Basic) | $0.18$0.12 | +53.0% |
| EPS (Diluted) | $0.17$0.11 | +53.1% |
| Shares Outstanding (Basic) | 24.67B24.39B | +1.1% |
| Shares Outstanding (Diluted) | 25.10B24.72B | +1.5% |
05—Questions
Frequently Asked Questions
What was NVIDIA's primary growth driver in fiscal year 2021?
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.
What is the status and strategic importance of the Arm acquisition?
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.
How did NVIDIA's market platforms perform in fiscal year 2021?
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%.
What were the key financial highlights for NVIDIA in fiscal year 2021?
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.
06—Continue