01—Abstract
Summary
Summary of the 10-Q filed May 21, 2020. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation (NVDA) reported strong fiscal first-quarter 2021 results, with revenue reaching $3.08 billiona, a significant 39% increase year-over-year.
This growth was driven by robust performance in both the Graphics and Compute & Networking segments. The Compute & Networking segment, in particular, saw an impressive 69%b year-over-year revenue increase, fueled by strong demand in Data Center solutions for AI and high-performance computing. The company also saw a substantial improvement in gross margin, rising to 65.1% from 58.4% in the prior year, indicating improved profitability.
Despite potential supply chain and demand disruptions from the ongoing COVID-19 pandemic, NVIDIA demonstrated resilience. The company's balance sheet remains strong, with cash, cash equivalents, and marketable securities totaling $16.35 billionc.
NVIDIA also announced the closing of its acquisition of Mellanox for approximately $7.0 billiond shortly after the quarter ended. While the company is evaluating the timing of resuming share repurchases due to market uncertainties, it remains committed to its quarterly dividend payments.
02—Key points
Key Highlights
- Revenue for the fiscal first quarter of 2021 was $3.08 billion, a 39% increase year-over-year, demonstrating strong top-line growth.
- The Compute & Networking segment revenue surged by 69% year-over-year to $1.17 billion, driven by demand for Data Center solutions.
- Gross margin improved significantly to 65.1% from 58.4% in the prior year's first quarter, indicating enhanced profitability.
- Net income more than doubled year-over-year, reaching $917 million, with diluted EPS at $1.47, up 130%.
- The company ended the quarter with a strong liquidity position, holding $16.35 billion in cash, cash equivalents, and marketable securities.
- NVIDIA closed the significant acquisition of Mellanox for approximately $7.0 billion shortly after the quarter ended, expected to bolster its Compute & Networking segment.
- Despite the COVID-19 pandemic, the company navigated supply chain disruptions and saw varied demand impacts, yet delivered robust financial results.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2021, NVIDIA Corp kept $0.30.
- Revenue$3.08B100.0%
- Cost of revenue−$1.08B34.9%
- Gross profit$2.00B65.1%
- Operating costs−$1.03B33.4%
- Operating income$976.0M31.7%
- Interest, other & tax−$59.0M1.9%
- Net income$917.0M29.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2021filed May 21, 2020Financial Statements
Q1 FY2021 against Q1 FY2020
| Line item | Q1 FY2021Q1 FY2020 | Change |
|---|---|---|
| Revenue | $3.08B$2.22B | +38.7% |
| Cost of Revenue | $1.08B$924.00M | +16.5% |
| Gross Profit | $2.00B$1.30B | +54.6% |
| R&D Expenses | $735.00M$674.00M | +9.1% |
| SG&A Expenses | $293.00M$264.00M | +11.0% |
| Operating Expenses | $1.03B$938.00M | +9.6% |
| Operating Income | $976.00M$358.00M | +172.6% |
| Interest Expense | $25.00M$13.00M | +92.3% |
| Net Income | $917.00M$394.00M | +132.7% |
| EPS (Basic) | $0.04$0.02 | +129.2% |
| EPS (Diluted) | $0.04$0.02 | +129.7% |
| Shares Outstanding (Basic) | 24.56B24.28B | +1.2% |
| Shares Outstanding (Diluted) | 24.88B24.64B | +1.0% |
05—Questions
Frequently Asked Questions
How did NVIDIA's revenue perform in the first quarter of fiscal year 2021 compared to the prior year?
NVIDIA reported revenue of $3.08 billion for the first quarter of fiscal year 2021, an increase of 39% compared to $2.22 billion in the same period of fiscal year 2020. This growth was primarily driven by strong performance in both the Graphics and Compute & Networking segments.
What is the company's current financial position, especially regarding cash?
NVIDIA maintained a strong liquidity position, ending the first quarter of fiscal year 2021 with $16.35 billion in cash, cash equivalents, and marketable securities. This was an increase from $10.89 billion at the end of the prior fiscal year, boosted by cash flow from operations and the issuance of new debt.
What was the impact of COVID-19 on NVIDIA's operations and financial results during this quarter?
NVIDIA experienced disruptions to its supply chain and logistics due to COVID-19. The pandemic also impacted demand for certain products, such as automotive and some gaming products sold through physical retailers, while increasing demand for others, like gaming and compute infrastructure used for remote work and learning. Despite these mixed impacts, the company reported significant year-over-year growth.
Can you provide details on the Mellanox acquisition?
NVIDIA completed its acquisition of Mellanox Technologies, Ltd. for approximately $7.0 billion in cash on April 27, 2020, shortly after the end of the fiscal first quarter. This acquisition is expected to enhance NVIDIA's offerings in the Data Center and high-performance computing markets.
06—Continue