10-QPeriod: Q2 FY2022

NVIDIA CORP Quarterly Report for Q2 Ended May 2, 2021

Filed May 26, 2021For Securities:NVDA

Summary

NVIDIA Corporation reported strong financial performance for the first quarter of fiscal year 2022, ending May 2, 2021. Revenue surged by 84% year-over-year to $5.66 billion, driven by significant growth in both the Graphics and Compute & Networking segments. The Graphics segment saw an 81% increase, largely due to robust sales of GeForce RTX 30 Series GPUs, benefiting also from cryptocurrency mining demand. The Compute & Networking segment experienced an 88% rise, bolstered by the Mellanox acquisition and the ramp-up of NVIDIA Ampere GPU architecture products. Net income more than doubled to $1.91 billion, with diluted earnings per share reaching $3.03, a 106% increase year-over-year. The company highlighted strong demand across its market platforms, particularly in Gaming and Data Center, while also navigating supply constraints expected to continue into the second half of the fiscal year. NVIDIA also announced a planned four-for-one stock split, subject to shareholder approval, signaling confidence in future growth.

Financial Highlights

55 data points
Beta

Revenue

$5.66B

64.1% Gross Margin

Net Income

$1.91B

33.8% Net Margin

EPS (Diluted)

$0.08

Total Assets

$30.80B

Cash & Equivalents

$978.00M

Free Cash Flow

$1.87B

Financial Statements
Beta
Revenue$5.66B
Cost of Revenue$2.03B
Gross Profit$3.63B
R&D Expenses$1.15B
SG&A Expenses$520.00M
Operating Expenses$1.67B
Operating Income$1.96B
Interest Expense$53.00M
Net Income$1.91B
EPS (Basic)$0.08
EPS (Diluted)$0.08
Shares Outstanding (Basic)24.84B
Shares Outstanding (Diluted)25.28B

Key Highlights

  • 1Total revenue for the first quarter of FY2022 reached $5.66 billion, an 84% increase year-over-year.
  • 2Net income more than doubled to $1.91 billion, with diluted EPS up 106% year-over-year to $3.03.
  • 3Graphics segment revenue grew 81% YoY to $3.45 billion, driven by strong GeForce GPU sales and crypto mining demand.
  • 4Compute & Networking segment revenue increased 88% YoY to $2.21 billion, benefiting from the Mellanox acquisition and Ampere GPU ramp.
  • 5Gross margin slightly decreased to 64.1% YoY, primarily due to amortization of intangible assets from the Mellanox acquisition.
  • 6The company announced a proposed four-for-one stock split, indicating management's confidence in future performance.
  • 7NVIDIA expects to remain supply-constrained in the gaming segment through the second half of the fiscal year.

Frequently Asked Questions

NVIDIA's revenue growth was primarily driven by strong demand for its GeForce GPUs in the Gaming segment, amplified by cryptocurrency mining activity, and robust sales in the Data Center driven by the Mellanox acquisition and the adoption of its Ampere architecture products by hyperscale customers and in vertical industries.

NVIDIA entered into an agreement to acquire Arm for $40 billion in September 2020. The acquisition is subject to regulatory approvals in various jurisdictions, and NVIDIA anticipates closing in the first quarter of calendar year 2022. The company is actively engaged with regulators globally.

NVIDIA expects to remain supply-constrained, particularly in the gaming segment, into the second half of its fiscal year. This is due to high demand and extended manufacturing lead times.

NVIDIA's Board of Directors declared a four-for-one stock split in the form of a stock dividend, subject to stockholder approval to increase authorized shares. If approved, the additional shares are expected to be distributed in July 2021. This action is often taken by companies to make their stock more accessible to a wider range of investors.