10-KPeriod: FY2022

NVIDIA CORP Annual Report, Year Ended Jan 30, 2022

Filed March 18, 2022For Securities:NVDA

Summary

NVIDIA Corporation's 2022 10-K filing reveals a year of exceptional growth, with revenue surging by 61% to $26.91 billion, driven by robust demand across its key markets. The company's core Graphics and Compute & Networking segments both experienced significant year-over-year increases. This performance was fueled by strong sales of its Ampere architecture GPUs, particularly in the gaming sector, and accelerated computing solutions for data centers supporting AI and cloud workloads. A notable event during the fiscal year was the termination of the Arm acquisition due to regulatory challenges, resulting in a $1.36 billion charge to be recognized in the upcoming fiscal year. Despite this setback and ongoing supply chain constraints, NVIDIA demonstrated strong operational execution and financial health, evidenced by a substantial increase in net income and a healthy cash position. The company continues to invest heavily in research and development, focusing on advancing its accelerated computing platform, particularly in AI and professional visualization, and laying the groundwork for future innovations in areas like autonomous vehicles and the metaverse.

Financial Highlights

57 data points
Beta

Revenue

$26.91B

64.9% Gross Margin

Net Income

$9.75B

36.2% Net Margin

EPS (Diluted)

$0.39

Total Assets

$44.19B

Cash & Equivalents

$1.99B

Free Cash Flow

$9.11B

Financial Statements
Beta
Revenue$26.91B
Cost of Revenue$9.44B
Gross Profit$17.48B
R&D Expenses$5.27B
SG&A Expenses$2.17B
Operating Expenses$7.43B
Operating Income$10.04B
Interest Expense$236.00M
Net Income$9.75B
EPS (Basic)$0.39
EPS (Diluted)$0.39
Shares Outstanding (Basic)24.96B
Shares Outstanding (Diluted)25.35B

Key Highlights

  • 1Revenue grew an impressive 61% year-over-year to $26.91 billion, indicating strong market demand and execution.
  • 2Both the Graphics and Compute & Networking segments saw 61% revenue growth, highlighting broad-based strength across gaming and data center markets.
  • 3Net income more than doubled, increasing by 125% to $9.75 billion, demonstrating significant profitability improvement.
  • 4The company ended the fiscal year with a strong liquidity position, with cash, cash equivalents, and marketable securities totaling $21.21 billion.
  • 5The termination of the Arm acquisition will result in a $1.36 billion charge in the first quarter of fiscal year 2023, a significant one-time event impacting future expenses.
  • 6NVIDIA continues to invest heavily in R&D, underscoring its commitment to innovation in accelerated computing, AI, and new growth areas.
  • 7Supply chain constraints are expected to persist into the first half of fiscal year 2023, posing a potential challenge to meeting demand.

Frequently Asked Questions

NVIDIA's primary driver of revenue growth was the strong demand for its Ampere architecture GPUs. This demand was seen across both its Graphics segment, particularly for gaming, and its Compute & Networking segment, which serves data centers for AI and cloud computing workloads. The release of new RTX 30 Series GPUs, the growing popularity of gaming and esports, and the increasing adoption of AI and high-performance computing in data centers all contributed significantly.

The termination of the Arm acquisition, announced on February 8, 2022, was due to significant regulatory challenges. NVIDIA intends to record a $1.36 billion charge in operating expenses in the first quarter of fiscal year 2023. This charge reflects the write-off of a prepayment made at the signing of the acquisition agreement.

NVIDIA acknowledges ongoing supply chain constraints, which it expects to continue into the first half of fiscal year 2023, particularly in Gaming and Networking. To mitigate this, the company has placed non-cancellable inventory orders in advance of historical lead times, paid premiums, and provided deposits to secure future supply and capacity. They are also broadening their supply base.

NVIDIA's strategy centers on advancing its accelerated computing platform, extending its leadership in AI, and reinforcing its position in computer graphics. Key initiatives include developing new GPU architectures, expanding its software ecosystem (like CUDA and AI Enterprise), and growing its presence in high-growth markets such as data centers, professional visualization, and autonomous vehicles. The company is also investing in new areas like Omniverse and the metaverse, and has plans to build the Earth-2 AI supercomputer for climate change modeling.