NVIDIA Announces Financial Results for Third Quarter Fiscal 2021

NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
(Unaudited)

	Three Months Ended									Nine Months Ended
	October 25,			July 26,			October 27,			October 25,			October 27,
		2020			2020			2019			2020			2019

GAAP gross profit	$	2,960		$	2,275		$	1,916		$	7,240		$	4,753
GAAP gross margin		62.6	%		58.8	%		63.6	%		62.0	%		60.8	%
Acquisition-related and other costs (B)		86			245			-			331			-
Stock-based compensation expense (A)		28			14			15			62			27
Legal settlement costs		21			17			-			38			11
Non-GAAP gross profit	$	3,095		$	2,551		$	1,931		$	7,671		$	4,791
Non-GAAP gross margin		65.5	%		66.0	%		64.1	%		65.7	%		61.3	%

GAAP operating expenses	$	1,562		$	1,624		$	989		$	4,215		$	2,897
Stock-based compensation expense (A)		(355	)		(360	)		(208	)		(919	)		(597	)
Acquisition-related and other costs (B)		(106	)		(229	)		(7	)		(338	)		(22	)
Legal settlement costs		-			-			-			-			(2	)
Non-GAAP operating expenses	$	1,101		$	1,035		$	774		$	2,958		$	2,276

GAAP income from operations	$	1,398		$	651		$	927		$	3,025		$	1,856
Total impact of non-GAAP adjustments to income from operations		595			865			229			1,689			659
Non-GAAP income from operations	$	1,993		$	1,516		$	1,156		$	4,714		$	2,515

GAAP other income (expense), net	$	(50	)	$	(42	)	$	32		$	(86	)	$	98
Losses from non-affiliated investments		4			2			-			9			1
Interest expense related to amortization of debt discount		1			1			1			1			1
Non-GAAP other income (expense), net	$	(45	)	$	(39	)	$	33		$	(76	)	$	100

GAAP net income	$	1,336		$	622		$	899		$	2,875		$	1,845
Total pre-tax impact of non-GAAP adjustments		600			868			230			1,699			660
Income tax impact of non-GAAP adjustments (C)		(102	)		(124	)		(26	)		(255	)		(97	)
Non-GAAP net income	$	1,834		$	1,366		$	1,103		$	4,319		$	2,408

Diluted net income per share
GAAP	$	2.12		$	0.99		$	1.45		$	4.59		$	2.99
Non-GAAP	$	2.91		$	2.18		$	1.78		$	6.90		$	3.90

Weighted average shares used in diluted net income per share computation		630			626			618			626			617

GAAP net cash provided by operating activities	$	1,279		$	1,566		$	1,640		$	3,755		$	3,296
Purchases related to property and equipment and intangible assets		(473	)		(217	)		(104	)		(845	)		(344	)
Free cash flow	$	806		$	1,349		$	1,536		$	2,910		$	2,952



(A) Stock-based compensation consists of the following:	Three Months Ended									Nine Months Ended
	October 25,			July 26,			October 27,			October 25,			October 27,
		2020			2020			2019			2020			2019
Cost of revenue	$	28		$	14		$	15		$	62		$	27
Research and development	$	232		$	228		$	141		$	594		$	400
Sales, general and administrative	$	123		$	132		$	67		$	325		$	197

(B) 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									Nine Months Ended
	October 25,			July 26,			October 27,			October 25,			October 27,
		2020			2020			2019			2020			2019
Cost of revenue	$	86		$	245		$	-		$	331		$	-
Research and development	$	2		$	3		$	1		$	7		$	4
Sales, general and administrative	$	104		$	226		$	6		$	331		$	18

(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).

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 Next Page »