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