NVIDIA Announces Financial Results for Second Quarter Fiscal 2022
| |
NVIDIA CORPORATION | | | |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | | | | (In millions, except per share data) | | | | (Unaudited) | | | | | | | | | | | | | | | | | | | |
Three Months Ended | |
Six Months Ended | | | | | | |
August 1, | |
May 2, | |
July 26, | |
August 1, | |
July 26, | | | | | | |
2021 | |
2021 | |
2020 | |
2021 | |
2020 | | | | | | | | | | | | | | | | | | | GAAP gross profit | $ | 4,215 | | | $ | 3,629 | | | $ | 2,275 | | | $ | 7,844 | | | $ | 4,279 | | | | | GAAP gross margin | | 64.8 | % | | | 64.1 | % | | | 58.8 | % | | | 64.5 | % | | | 61.6 | % | | | | Acquisition-related and other costs (A) | | 86 | | | | 87 | | | | 245 | | | | 173 | | | | 246 | | | | | Stock-based compensation expense (B) | | 32 | | | | 25 | | | | 14 | | | | 57 | | | | 35 | | | | | IP-related costs | | | 4 | | | | 5 | | | | 17 | | | | 9 | | | | 17 | | | | | Non-GAAP gross profit | $ | 4,337 | | | $ | 3,746 | | | $ | 2,551 | | | $ | 8,083 | | | $ | 4,577 | | | | | Non-GAAP gross margin | | 66.7 | % | | | 66.2 | % | | | 66.0 | % | | | 66.4 | % | | | 65.9 | % | | | | | | | | | | | | | | | | | | | GAAP operating expenses | $ | 1,771 | | | $ | 1,673 | | | $ | 1,624 | | | $ | 3,444 | | | $ | 2,652 | | | | | Stock-based compensation expense (B) | | (433 | ) | | | (404 | ) | | | (360 | ) | | | (837 | ) | | | (563 | ) | | | | Acquisition-related and other costs (A) | | (72 | ) | | | (80 | ) | | | (229 | ) | | | (152 | ) | | | (233 | ) | | | | Non-GAAP operating expenses | $ | 1,266 | | | $ | 1,189 | | | $ | 1,035 | | | $ | 2,455 | | | $ | 1,856 | | | | | | | | | | | | | | | | | | | | GAAP income from operations | $ | 2,444 | | | $ | 1,956 | | | $ | 651 | | | $ | 4,400 | | | $ | 1,627 | | | | | Total impact of non-GAAP adjustments to income from operations | | 627 | | | | 601 | | | | 865 | | | | 1,228 | | | | 1,094 | | | | | Non-GAAP income from operations | $ | 3,071 | | | $ | 2,557 | | | $ | 1,516 | | | $ | 5,628 | | | $ | 2,721 | | | | | | | | | | | | | | | | | | | | GAAP other income (expense), net | $ | (50 | ) | | $ | 88 | | | $ | (42 | ) | | $ | 38 | | | $ | (36 | ) | | | | (Gains) losses from non-affiliated investments | | - | | | | (134 | ) | | | 2 | | | | (133 | ) | | | 5 | | | | | Interest expense related to amortization of debt discount | | 1 | | | | 1 | | | | 1 | | | | 2 | | | | 1 | | | | | Non-GAAP other income (expense), net | $ | (49 | ) | | $ | (45 | ) | | $ | (39 | ) | | $ | (93 | ) | | $ | (30 | ) | | | | | | | | | | | | | | | | | | | GAAP net income | | $ | 2,374 | | | $ | 1,912 | | | $ | 622 | | | $ | 4,285 | | | $ | 1,539 | | | | | Total pre-tax impact of non-GAAP adjustments | | 628 | | | | 468 | | | | 868 | | | | 1,097 | | | | 1,100 | | | | | Income tax impact of non-GAAP adjustments (C) | | (127 | ) | | | (67 | ) | | | (124 | ) | | | (194 | ) | | | (153 | ) | | | | Domestication tax benefit | | (252 | ) | | | - | | | | - | | | | (252 | ) | | | - | | | | | Non-GAAP net income | $ | 2,623 | | | $ | 2,313 | | | $ | 1,366 | | | $ | 4,936 | | | $ | 2,486 | | | | | | | | | | | | | | | | | | | | Diluted net income per share (D) | | | | | | | | | | | | | GAAP | | $ | 0.94 | | | $ | 0.76 | | | $ | 0.25 | | | $ | 1.69 | | | $ | 0.62 | | | | | Non-GAAP | | $ | 1.04 | | | $ | 0.91 | | | $ | 0.55 | | | $ | 1.95 | | | $ | 1.00 | | | | | | | | | | | | | | | | | | | | Weighted average shares used in diluted net income per share computation (D) | | | | 2,532 | | | | 2,528 | | | | 2,504 | | | | 2,529 | | | | 2,496 | | | | | | | | | | | | | | | | | | | | GAAP net cash provided by operating activities | $ | 2,682 | | | $ | 1,874 | | | $ | 1,566 | | | $ | 4,556 | | | $ | 2,476 | | | | | Purchases related to property and equipment and intangible assets | | (183 | ) | | | (298 | ) | | | (217 | ) | | | (481 | ) | | | (372 | ) | | | | Principal payments on property and equipment | | (21 | ) | | | (19 | ) | | | - | | | | (40 | ) | | | - | | | | | Free cash flow | | $ | 2,478 | | | $ | 1,557 | | | $ | 1,349 | | | $ | 4,035 | | | $ | 2,104 | | | | | | | | | | | | | | | | | | | | | | | | (A) Acquisition-related and other costs primarily include amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges presented as follows: | | | | | | |
Three Months Ended | |
Six Months Ended | | | | | | |
August 1, | |
May 2, | |
July 26, | |
August 1, | |
July 26, | | | | | | |
2021 | |
2021 | |
2020 | |
2021 | |
2020 | | | | Cost of revenue | $ | 86 | | | $ | 87 | | | $ | 245 | | | $ | 173 | | | $ | 246 | | | | | Research and development | $ | 1 | | | $ | 1 | | | $ | 3 | | | $ | 4 | | | $ | 5 | | | | | Sales, general and administrative | $ | 71 | | | $ | 79 | | | $ | 226 | | | $ | 148 | | | $ | 228 | | | | | | | | | | | | | | | | | | | | (B) Stock-based compensation consists of the following: | | | | | | | | | |
Three Months Ended | |
Six Months Ended | | | | | | |
August 1, | |
May 2, | |
July 26, | |
August 1, | |
July 26, | | | | | | |
2021 | |
2021 | |
2020 | |
2021 | |
2020 | | | | Cost of revenue | $ | 32 | | | $ | 25 | | | $ | 14 | | | $ | 57 | | | $ | 35 | | | | | Research and development | $ | 297 | | | $ | 276 | | | $ | 228 | | | $ | 573 | | | $ | 362 | | | | | Sales, general and administrative | $ | 136 | | | $ | 128 | | | $ | 132 | | | $ | 264 | | | $ | 201 | | | | | | | | | | | | | | | | | | | | (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). | | | | | | | | | | | | | | | | | | | (D) Reflects a four-for-one stock split on July 19, 2021. | |
|
