01—Abstract
Summary
Summary of the 10-K filed March 18, 2022. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation's 2022 10-K filing reveals a year of exceptional growth, with revenue surging by 61% to $26.91 billiona, 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 billionb 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.
02—Key points
Key Highlights
- Revenue grew an impressive 61% year-over-year to $26.91 billion, indicating strong market demand and execution.
- Both the Graphics and Compute & Networking segments saw 61% revenue growth, highlighting broad-based strength across gaming and data center markets.
- Net income more than doubled, increasing by 125% to $9.75 billion, demonstrating significant profitability improvement.
- The company ended the fiscal year with a strong liquidity position, with cash, cash equivalents, and marketable securities totaling $21.21 billion.
- The 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.
- NVIDIA continues to invest heavily in R&D, underscoring its commitment to innovation in accelerated computing, AI, and new growth areas.
- Supply chain constraints are expected to persist into the first half of fiscal year 2023, posing a potential challenge to meeting demand.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, NVIDIA Corp kept $0.36.
- Revenue$26.91B100.0%
- Cost of revenue−$9.44B35.1%
- Gross profit$17.48B64.9%
- Operating costs−$7.43B27.6%
- Operating income$10.04B37.3%
- Interest, other & tax−$289.0M1.1%
- Net income$9.75B36.2%
Where FY2022 revenue went
$26.91B- Net income: $9.75B, 36% of revenue
- Cost of revenue: $9.44B, 35% of revenue
- R&D: $5.27B, 20% of revenue
- SG&A: $2.17B, 8.0% of revenue
- Interest, other & tax: $289.0M, 1.1% of revenue
Kept 36% as net incomeInterest, other & tax $289.0M · 1.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed March 18, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $26.91B$16.68B | +61.4% |
| Cost of Revenue | $9.44B$6.28B | +50.3% |
| Gross Profit | $17.48B$10.40B | +68.1% |
| R&D Expenses | $5.27B$3.92B | +34.3% |
| SG&A Expenses | $2.17B$1.94B | +11.6% |
| Operating Expenses | $7.43B$5.86B | +26.8% |
| Operating Income | $10.04B$4.53B | +121.6% |
| Interest Expense | $236.00M$184.00M | +28.3% |
| Net Income | $9.75B$4.33B | +125.1% |
| EPS (Basic) | $0.39$0.18 | +122.2% |
| EPS (Diluted) | $0.39$0.17 | +122.5% |
| Shares Outstanding (Basic) | 24.96B24.67B | +1.2% |
| Shares Outstanding (Diluted) | 25.35B25.10B | +1.0% |
05—Questions
Frequently Asked Questions
What was NVIDIA's primary driver of revenue growth in fiscal year 2022?
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.
What is the financial impact of the terminated Arm acquisition?
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.
How is NVIDIA addressing supply chain constraints?
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.
What is NVIDIA's strategy for future growth and innovation?
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.
06—Continue