NVIDIA Announces Financial Results for Fourth Quarter and Fiscal 2020
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NVIDIA CORPORATION | |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES | | (In millions, except per share data) | | (Unaudited) | | | | | | | | | | | |
Three Months Ended | |
Twelve Months Ended | | |
January 26, |
October 27, |
January 27, |
January 26, |
January 27, | | |
2020 | |
2019 | |
2019 | |
2020 | | |
2019 | | | | | | | | | | | | | GAAP gross profit | $ | 2,015 | | | $ | 1,916 | | | $ | 1,207 | | | $ | 6,768 | | | $ | 7,171 | | | GAAP gross margin | | 64.9 | % | | | 63.6 | % | | | 54.7 | % | | | 62.0 | % | | | 61.2 | % | | Stock-based compensation expense (A) | | 12 | | | | 15 | | | | 6 | | | | 39 | | | | 27 | | | Legal settlement costs | | 3 | | | | - | | | | 21 | | | | 14 | | | | 35 | | | Non-GAAP gross profit | $ | 2,030 | | | $ | 1,931 | | | $ | 1,234 | | | $ | 6,821 | | | $ | 7,233 | | | Non-GAAP gross margin | | 65.4 | % | | | 64.1 | % | | | 56.0 | % | | | 62.5 | % | | | 61.7 | % | | | | | | | | | | | | | GAAP operating expenses | $ | 1,025 | | | $ | 989 | | | $ | 913 | | | $ | 3,922 | | | $ | 3,367 | | | Stock-based compensation expense (A) | | (208 | ) | | | (208 | ) | | | (150 | ) | | | (805 | ) | | | (530 | ) | | Acquisition-related and other costs | | (7 | ) | | | (7 | ) | | | (1 | ) | | | (30 | ) | | | (2 | ) | | Legal settlement costs | | - | | | | - | | | | (7 | ) | | | (1 | ) | | | (9 | ) | | Non-GAAP operating expenses | $ | 810 | | | $ | 774 | | | $ | 755 | | | $ | 3,086 | | | $ | 2,826 | | | | | | | | | | | | | | GAAP income from operations | $ | 990 | | | $ | 927 | | | $ | 294 | | | $ | 2,846 | | | $ | 3,804 | | | Total impact of non-GAAP adjustments to income from operations | | 230 | | | | 229 | | | | 185 | | | | 889 | | | | 603 | | | Non-GAAP income from operations | $ | 1,220 | | | $ | 1,156 | | | $ | 479 | | | $ | 3,735 | | | $ | 4,407 | | | | | | | | | | | | | | GAAP other income | $ | 26 | | | $ | 32 | | | $ | 30 | | | $ | 124 | | | $ | 92 | | | Losses (Gains) from non-affiliated investments | | - | | | | - | | | | (1 | ) | | | 1 | | | | (12 | ) | | Interest expense related to amortization of debt discount | | - | | | | 1 | | | | - | | | | 2 | | | | 2 | | | Non-GAAP other income | $ | 26 | | | $ | 33 | | | $ | 29 | | | $ | 127 | | | $ | 82 | | | | | | | | | | | | | | GAAP net income | $ | 950 | | | $ | 899 | | | $ | 567 | | | $ | 2,796 | | | $ | 4,141 | | | Total pre-tax impact of non-GAAP adjustments | | 230 | | | | 230 | | | | 184 | | | | 890 | | | | 593 | | | Income tax impact of non-GAAP adjustments (B) | | (8 | ) | | | (26 | ) | | | (25 | ) | | | (106 | ) | | | (223 | ) | | Tax benefit from income tax reform | | - | | | | - | | | | (230 | ) | | | - | | | | (368 | ) | | Non-GAAP net income | $ | 1,172 | | | $ | 1,103 | | | $ | 496 | | | $ | 3,580 | | | $ | 4,143 | | | | | | | | | | | | | | Diluted net income per share | | | | | | | | | | | GAAP | $ | 1.53 | | | $ | 1.45 | | | $ | 0.92 | | | $ | 4.52 | | | $ | 6.63 | | | Non-GAAP | $ | 1.89 | | | $ | 1.78 | | | $ | 0.80 | | | $ | 5.79 | | | $ | 6.64 | | | | | | | | | | | | | | Weighted average shares used in diluted net income per share computation | | | | | | | | | | | GAAP | | 621 | | | | 618 | | | | 619 | | | | 618 | | | | 625 | | | Anti-dilution impact from note hedge | | - | | | | - | | | | - | | | | - | | | | (1 | ) | | Non-GAAP | | 621 | | | | 618 | | | | 619 | | | | 618 | | | | 624 | | | | | GAAP net cash provided by operating activities | $ | 1,465 | | | $ | 1,640 | | | $ | 898 | | | $ | 4,761 | | | $ | 3,743 | | | Purchase of property and equipment and intangible assets | | (144 | ) | | | (104 | ) | | | (203 | ) | | | (489 | ) | | | (600 | ) | | Free cash flow | $ | 1,321 | | | $ | 1,536 | | | $ | 695 | | | $ | 4,272 | | | $ | 3,143 | | | | | | | | | | | | | | | | | | | | | | | | | | | (A) Stock-based compensation consists of the following: |
Three Months Ended | |
Twelve Months Ended | | |
January 26, |
October 27, |
January 27, |
January 26, |
January 27, | | |
2020 | |
2019 | |
2019 | |
2020 | |
2019 | | Cost of revenue | $ | 12 | | | $ | 15 | | | $ | 6 | | | $ | 39 | | | $ | 27 | | | Research and development | $ | 140 | | | $ | 141 | | | $ | 99 | | | $ | 540 | | | $ | 336 | | | Sales, general and administrative | $ | 68 | | | $ | 67 | | | $ | 51 | | | $ | 265 | | | $ | 194 | | | (B) 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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