Since its second quarter earnings release, NVIDIA has achieved progress in these areas:
Company-wide
- Launched the revolutionary NVIDIA Turing™ GPU architecture, with new RT Cores to accelerate ray tracing and new Tensor Cores for AI inferencing.
- Drew nearly 13,000 attendees to GPU Technology Conferences in Munich, Tel Aviv, Tokyo and Washington, following events in San Jose and Taipei. The company expects 30,000 total GTC attendees this year, up more than 30 percent from 2017.
Datacenter
- Announced that the new TOP500 list of the world’s fastest supercomputers shows a 48 percent jump over last year in the number of systems using NVIDIA GPU accelerators, climbing to 127, including the fastest in the world, No. 1 in the U.S., No. 1 in Europe and No. 1 in Japan.
- Introduced RAPIDS™, an open-source GPU-acceleration platform for data science and machine learning, with broad adoption from industry leaders including Dell EMC, Hewlett Packard Enterprise, IBM, Oracle and SAP.
- Launched the NVIDIA T4 Cloud GPU and NVIDIA TensorRT™ Hyperscale Inference Platform to deliver advanced acceleration for voice, video, image and recommendation services in hyperscale datacenters. Within the first two months of its launch, the T4 received the fastest adoption of any server GPU, featuring in 57 separate designs from leading computer makers, and availability on Google Cloud Platform.
- Launched the NVIDIA RTX™ Server, opening a new market to GPUs for photo-real rendering in the datacenter.
- Unveiled the NVIDIA Clara™ platform, which brings AI to the next generation of medical instruments as a powerful tool for early detection, diagnosis and treatment of disease.
Gaming
- Released the GeForce RTX™ series, the first gaming GPUs based on the Turing architecture and the NVIDIA RTX platform, which fuses next-generation shaders with real-time ray tracing and new AI capabilities, including Deep Learning Super-Sampling anti-aliasing.
Professional Visualization
- Unveiled the Quadro RTX™ series, which is designed to revolutionize the workflow of millions of designers and artists on the desktop.
Automotive
- Announced NVIDIA’s first Level-2 autopilot design wins with Toyota, Volvo Cars and Isuzu Motors.
- Announced that Continental and Veoneer, leading tier-1 suppliers, have each selected DRIVE AGX Xavier to power self-driving solutions to be offered early in the 2020s.
- Announced the start of production of Xavier™, the world’s first single-chip autopilot SOC, and started shipping the NVIDIA DRIVE AGX Xavier™ developer kit.
- Published NVIDIA’s Self-Driving Safety Report, detailing the company’s development processes and four fundamental pillars of safe autonomous driving.
Edge AI
- Announced global availability of the NVIDIA Jetson™ AGX Xavier™ developer kit, with leading Japanese companies among the first to adopt the platform.
- Announced that Yamaha Motor Co. will use NVIDIA to power its upcoming lineup of autonomous machines.
CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at
http://investor.nvidia.com/.
Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its third quarter fiscal 2019 financial results and current financial prospects today at 2:30 p.m. Pacific time (5:30 p.m. Eastern time). To listen to the conference call, dial (877) 223-3864 in the United States or (574) 990-1377 internationally, and provide the following conference ID: 5485625. A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website,
http://investor.nvidia.com, and at
www.streetevents.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its fourth quarter and fiscal 2019.
Non-GAAP Measures
To supplement NVIDIA’s Condensed Consolidated Statements of Income and Condensed Consolidated Balance Sheets presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP other income (expense), non-GAAP income tax expense, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, non-GAAP diluted shares, and free cash flow. In order for NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense, legal settlement costs, acquisition-related costs, restructuring and other, contributions, gains from non-affiliated investments, interest expense related to amortization of debt discount, debt-related costs, the associated tax impact of these items, where applicable, and the tax benefit from income tax reform. Weighted average shares used in the non-GAAP diluted net income per share computation includes the anti-dilution impact of our Note Hedge. Free cash flow is calculated as GAAP net cash provided by operating activities less purchases of property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.
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| NVIDIA CORPORATION | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| October 28, | October 29, | October 28, | October 29, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||
| Revenue | $ | 3,181 | $ | 2,636 | $ | 9,511 | $ | 6,803 | |||||||||
| Cost of revenue | 1,260 | 1,067 | 3,547 | 2,782 | |||||||||||||
| Gross profit | 1,921 | 1,569 | 5,964 | 4,021 | |||||||||||||
| Operating expenses | |||||||||||||||||
| Research and development | 605 | 462 | 1,729 | 1,290 | |||||||||||||
| Sales, general and administrative | 258 | 212 | 725 | 594 | |||||||||||||
| Total operating expenses | 863 | 674 | 2,454 | 1,884 | |||||||||||||
| Income from operations | 1,058 | 895 | 3,510 | 2,137 | |||||||||||||
| Interest income | 37 | 17 | 94 | 48 | |||||||||||||
| Interest expense | (15 | ) | (15 | ) | (44 | ) | (46 | ) | |||||||||
| Other, net | 1 | (1 | ) | 12 | (22 | ) | |||||||||||
| Total other income (expense) | 23 | 1 | 62 | (20 | ) | ||||||||||||
| Income before income tax | 1,081 | 896 | 3,572 | 2,117 | |||||||||||||
| Income tax expense (benefit) | (149 | ) | 58 | (3 | ) | 189 | |||||||||||
| Net income | $ | 1,230 | $ | 838 | $ | 3,575 | $ | 1,928 | |||||||||
| Net income per share: | |||||||||||||||||
| Basic | $ | 2.02 | $ | 1.39 | $ | 5.88 | $ | 3.23 | |||||||||
| Diluted | $ | 1.97 | $ | 1.33 | $ | 5.71 | $ | 3.05 | |||||||||
| Weighted average shares used in per share computation: | |||||||||||||||||
| Basic | 609 | 603 | 608 | 597 | |||||||||||||
| Diluted | 625 | 628 | 626 | 633 | |||||||||||||
