01—Abstract
Summary
Summary of the 10-Q filed May 26, 2021. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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.
02—Key points
Key Highlights
- Total revenue for the first quarter of FY2022 reached $5.66 billion, an 84% increase year-over-year.
- Net income more than doubled to $1.91 billion, with diluted EPS up 106% year-over-year to $3.03.
- Graphics segment revenue grew 81% YoY to $3.45 billion, driven by strong GeForce GPU sales and crypto mining demand.
- Compute & Networking segment revenue increased 88% YoY to $2.21 billion, benefiting from the Mellanox acquisition and Ampere GPU ramp.
- Gross margin slightly decreased to 64.1% YoY, primarily due to amortization of intangible assets from the Mellanox acquisition.
- The company announced a proposed four-for-one stock split, indicating management's confidence in future performance.
- NVIDIA expects to remain supply-constrained in the gaming segment through the second half of the fiscal year.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2022, NVIDIA Corp kept $0.34.
- Revenue$5.66B100.0%
- Cost of revenue−$2.03B35.9%
- Gross profit$3.63B64.1%
- Operating costs−$1.67B29.6%
- Operating income$1.96B34.6%
- Interest, other & tax−$44.0M0.8%
- Net income$1.91B33.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2022filed May 26, 2021Financial Statements
Q2 FY2022 against Q2 FY2021
| Line item | Q2 FY2022Q2 FY2021 | Change |
|---|---|---|
| Revenue | $5.66B$3.87B | +46.4% |
| Cost of Revenue | $2.03B$1.59B | +27.7% |
| Gross Profit | $3.63B$2.27B | +59.5% |
| R&D Expenses | $1.15B$997.00M | +15.6% |
| SG&A Expenses | $520.00M$627.00M | −17.1% |
| Operating Expenses | $1.67B$1.62B | +3.0% |
| Operating Income | $1.96B$651.00M | +200.5% |
| Interest Expense | $53.00M$54.00M | −1.9% |
| Net Income | $1.91B$622.00M | +207.4% |
| EPS (Basic) | $0.08$0.03 | +208.0% |
| EPS (Diluted) | $0.08$0.03 | +204.0% |
| Shares Outstanding (Basic) | 24.84B24.64B | +0.8% |
| Shares Outstanding (Diluted) | 25.28B25.04B | +1.0% |
05—Questions
Frequently Asked Questions
What were the main drivers of NVIDIA's significant revenue growth in this quarter?
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.
How is the pending acquisition of Arm progressing?
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.
What is NVIDIA's outlook regarding supply chain constraints?
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.
Can you explain the stock split announcement?
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.
06—Continue