NVIDIA Announces Financial Results for Second Quarter Fiscal 2021
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NVIDIA CORPORATION | |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | | (In millions, except per share data) | | (Unaudited) | | | | | | | | | | | |
Three Months Ended | |
Six Months Ended | | |
July 26, | |
April 26, | |
July 28, | |
July 26, | |
July 28, | | | |
2020 | | | |
2020 | | | |
2019 | | | |
2020 | | | |
2019 | | | | | | | | | | | | | | GAAP gross profit | $ | 2,275 | | | $ | 2,004 | | | $ | 1,541 | | | $ | 4,279 | | | $ | 2,837 | | | GAAP gross margin | | 58.8 | % | | | 65.1 | % | | | 59.8 | % | | | 61.6 | % | | | 59.1 | % | | Stock-based compensation expense (A) | | 14 | | | | 21 | | | | 8 | | | | 35 | | | | 12 | | | Acquisition-related and other costs (B) | | 245 | | | | 1 | | | | - | | | | 246 | | | | - | | | Legal settlement costs | | 17 | | | | - | | | | 2 | | | | 17 | | | | 11 | | | Non-GAAP gross profit | $ | 2,551 | | | $ | 2,026 | | | $ | 1,551 | | | $ | 4,577 | | | $ | 2,860 | | | Non-GAAP gross margin | | 66.0 | % | | | 65.8 | % | | | 60.1 | % | | | 65.9 | % | | | 59.6 | % | | | | | | | | | | | | | GAAP operating expenses | $ | 1,624 | | | $ | 1,028 | | | $ | 970 | | | $ | 2,652 | | | $ | 1,908 | | | Stock-based compensation expense (A) | | (360 | ) | | | (203 | ) | | | (216 | ) | | | (563 | ) | | | (389 | ) | | Acquisition-related and other costs (B) | | (229 | ) | | | (4 | ) | | | (5 | ) | | | (233 | ) | | | (15 | ) | | Legal settlement costs | | - | | | | - | | | | - | | | | - | | | | (2 | ) | | Non-GAAP operating expenses | $ | 1,035 | | | $ | 821 | | | $ | 749 | | | $ | 1,856 | | | $ | 1,502 | | | | | | | | | | | | | | GAAP income from operations | $ | 651 | | | $ | 976 | | | $ | 571 | | | $ | 1,627 | | | $ | 929 | | | Total impact of non-GAAP adjustments to income from operations | | 865 | | | | 229 | | | | 231 | | | | 1,094 | | | | 429 | | | Non-GAAP income from operations | $ | 1,516 | | | $ | 1,205 | | | $ | 802 | | | $ | 2,721 | | | $ | 1,358 | | | | | | | | | | | | | | GAAP other income (expense), net | $ | (42 | ) | | $ | 5 | | | $ | 35 | | | $ | (36 | ) | | $ | 66 | | | Losses from non-affiliated investments | | 2 | | | | 3 | | | | - | | | | 5 | | | | - | | | Interest expense related to amortization of debt discount | | 1 | | | | 1 | | | | - | | | | 1 | | | | 1 | | | Non-GAAP other income (expense), net | $ | (39 | ) | | $ | 9 | | | $ | 35 | | | $ | (30 | ) | | $ | 67 | | | | | | | | | | | | | | GAAP net income | $ | 622 | | | $ | 917 | | | $ | 552 | | | $ | 1,539 | | | $ | 947 | | | Total pre-tax impact of non-GAAP adjustments | | 868 | | | | 232 | | | | 231 | | | | 1,100 | | | | 430 | | | Income tax impact of non-GAAP adjustments (C) | | (124 | ) | | | (29 | ) | | | (21 | ) | | | (153 | ) | | | (72 | ) | | Non-GAAP net income | $ | 1,366 | | | $ | 1,120 | | | $ | 762 | | | $ | 2,486 | | | $ | 1,305 | | | | | | | | | | | | | | Diluted net income per share | | | | | | | | | | | GAAP | $ | 0.99 | | | $ | 1.47 | | | $ | 0.90 | | | $ | 2.47 | | | $ | 1.54 | | | Non-GAAP | $ | 2.18 | | | $ | 1.80 | | | $ | 1.24 | | | $ | 3.98 | | | $ | 2.12 | | | | | | | | | | | | | | Weighted average shares used in diluted net income per share computation | | 626 | | | | 622 | | | | 616 | | | | 624 | | | | 616 | | | | | | | | | | | | | | GAAP net cash provided by operating activities | $ | 1,566 | | | $ | 909 | | | $ | 936 | | | $ | 2,476 | | | $ | 1,656 | | | Purchase of property and equipment and intangible assets | | (217 | ) | | | (155 | ) | | | (113 | ) | | | (372 | ) | | | (241 | ) | | Free cash flow | $ | 1,349 | | | $ | 754 | | | $ | 823 | | | $ | 2,104 | | | $ | 1,415 | | | | | | | | | | | | | | | | | | | | | | | | | | | (A) Stock-based compensation consists of the following: |
Three Months Ended | |
Six Months Ended | | |
July 26, | |
April 26, | |
July 28, | |
July 26, | |
July 28, | | | |
2020 | | | |
2020 | | | |
2019 | | | |
2020 | | | |
2019 | | | Cost of revenue | $ | 14 | | | $ | 21 | | | $ | 8 | | | $ | 35 | | | $ | 12 | | | Research and development | $ | 228 | | | $ | 134 | | | $ | 145 | | | $ | 362 | | | $ | 259 | | | Sales, general and administrative | $ | 132 | | | $ | 69 | | | $ | 71 | | | $ | 201 | | | $ | 130 | | | | | | | | | | | | | | (B) Acquisition-related and other costs primarily include amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges. | | (C) Income tax impact of non-GAAP adjustments, including the recognition of excess tax benefits or deficiencies related to stock-based compensation under GAAP accounting standard (ASU 2016-09). | | | | | | | | | | | | | |
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