10-QPeriod: Q1 FY2025

NVIDIA CORP Quarterly Report for Q1 Ended Apr 28, 2024

Filed May 29, 2024For Securities:NVDA

Summary

NVIDIA Corporation (NVDA) reported exceptional financial results for the first quarter of fiscal year 2025, ending April 28, 2024. The company demonstrated a significant year-over-year revenue increase of 262%, reaching $26.04 billion, primarily driven by its Data Center segment. This segment saw a remarkable 427% surge in revenue to $22.68 billion, fueled by robust demand for its AI computing platforms, particularly the NVIDIA Hopper GPU. The company's gross margin improved substantially to 78.4%, reflecting strong pricing power and high demand for its advanced AI solutions. Net income also saw an extraordinary increase, growing 628% year-over-year to $14.88 billion, resulting in diluted earnings per share of $5.98, a 629% increase from the prior year. The company highlighted strong demand visibility for its next-generation Blackwell platform, with customer shipments expected to ramp in the second half of the fiscal year, though supply constraints are anticipated to continue into the next year. NVIDIA also announced a ten-for-one stock split and a 150% increase in its quarterly cash dividend, signaling confidence in its future growth prospects.

Financial Highlights

54 data points
Beta

Revenue

$26.04B

78.4% Gross Margin

Net Income

$14.88B

57.1% Net Margin

EPS (Diluted)

$0.60

Total Assets

$77.07B

Cash & Equivalents

$7.59B

Free Cash Flow

$15.35B

Financial Statements
Beta
Revenue$26.04B
Cost of Revenue$5.64B
Gross Profit$20.41B
R&D Expenses$2.72B
SG&A Expenses$777.00M
Operating Expenses$3.50B
Operating Income$16.91B
Interest Expense$64.00M
Net Income$14.88B
EPS (Basic)$0.60
EPS (Diluted)$0.60
Shares Outstanding (Basic)24.62B
Shares Outstanding (Diluted)24.89B

Key Highlights

  • 1Revenue soared by 262% year-over-year to $26.04 billion, driven by exceptional Data Center demand.
  • 2Data Center revenue grew an astounding 427% year-over-year to $22.68 billion, underscoring the demand for AI infrastructure.
  • 3Gross margin expanded significantly to 78.4%, up from 64.6% in the prior year's quarter, indicating strong pricing power.
  • 4Net income surged 628% year-over-year to $14.88 billion, with diluted EPS reaching $5.98 (up 629%).
  • 5The company expects continued strong demand for its next-generation Blackwell platform, with shipments ramping in H2 FY25, though supply constraints are anticipated.
  • 6NVIDIA announced a 10-for-1 forward stock split and a 150% increase in its quarterly dividend, signaling strong financial health and commitment to returning capital to shareholders.
  • 7Despite robust demand, supply for certain products like H200 remains constrained, and Blackwell supply is expected to be tight into the next fiscal year.

Frequently Asked Questions

NVIDIA's revenue growth was primarily driven by the exceptional performance of its Data Center segment, which experienced a 427% year-over-year increase. This surge was fueled by high demand for its AI computing platforms, particularly the NVIDIA Hopper GPU, utilized for training and inferencing large language models and generative AI applications. Enterprise and consumer internet companies, including major cloud providers, were key contributors to this growth.

NVIDIA has announced that its next-generation Blackwell platform is in production, with customer shipments expected to begin in the second quarter and ramp significantly in the second half of fiscal year 2025. However, the company anticipates that supply for Blackwell offerings will continue to be constrained into the next fiscal year, indicating strong initial demand that is expected to outpace supply.

NVIDIA announced a ten-for-one forward stock split, effective for shareholders of record on June 6, 2024. Additionally, the company increased its quarterly cash dividend by 150%, from $0.04 to $0.10 per share. NVIDIA also continues its share repurchase program, repurchasing $8.0 billion worth of stock in Q1 FY2025 and indicating plans to continue such repurchases.

NVIDIA faces several key risks, including the potential for inaccurate demand forecasting leading to mismatches between supply and demand, as well as challenges associated with product transitions and managing long manufacturing lead times. Geopolitical factors, particularly U.S. export control regulations impacting sales to China and other regions, also pose a significant risk. Additionally, the concentration of revenue from a limited number of customers and partners presents a risk if those relationships change.