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NVIDIA Announces Financial Results for Second Quarter Fiscal 2024

  • Record revenue of $13.51 billion, up 88% from Q1, up 101% from year ago
  • Record Data Center revenue of $10.32 billion, up 141% from Q1, up 171% from year ago

NVIDIA (NASDAQ: NVDA) today reported revenue for the second quarter ended July 30, 2023, of $13.51 billion, up 101% from a year ago and up 88% from the previous quarter.

GAAP earnings per diluted share for the quarter were $2.48, up 854% from a year ago and up 202% from the previous quarter. Non-GAAP earnings per diluted share were $2.70, up 429% from a year ago and up 148% from the previous quarter.

“A new computing era has begun. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.

“NVIDIA GPUs connected by our Mellanox networking and switch technologies and running our CUDA AI software stack make up the computing infrastructure of generative AI.

“During the quarter, major cloud service providers announced massive NVIDIA H100 AI infrastructures. Leading enterprise IT system and software providers announced partnerships to bring NVIDIA AI to every industry. The race is on to adopt generative AI,” he said.

During the second quarter of fiscal 2024, NVIDIA returned $3.38 billion to shareholders in the form of 7.5 million shares repurchased for $3.28 billion, and cash dividends. As of the end of the second quarter, the company had $3.95 billion remaining under its share repurchase authorization. On August 21, 2023, the Board of Directors approved an additional $25.00 billion in share repurchases, without expiration. NVIDIA plans to continue share repurchases this fiscal year.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on September 28, 2023, to all shareholders of record on September 7, 2023.

Q2 Fiscal 2024 Summary











GAAP
($ in millions, except earnings

per share)
Q2 FY24Q1 FY24Q2 FY23Q/QY/Y
Revenue$13,507 $7,192 $6,704 Up 88%Up 101%
Gross margin 70.1% 64.6% 43.5%Up 5.5 ptsUp 26.6 pts
Operating expenses$2,662 $2,508 $2,416 Up 6%Up 10%
Operating income$6,800 $2,140 $499  Up 218%Up 1,263%
Net income$6,188 $2,043 $656 Up 203%Up 843%
Diluted earnings per share$2.48 $0.82 $0.26 Up 202%Up 854%

 











Non-GAAP
($ in millions, except earnings

per share)
Q2 FY24Q1 FY24Q2 FY23Q/QY/Y
Revenue$13,507 $7,192 $6,704 Up 88%Up 101%
Gross margin 71.2% 66.8% 45.9%Up 4.4 ptsUp 25.3 pts
Operating expenses$1,838 $1,750 $1,749 Up 5%Up 5%
Operating income$7,776 $3,052 $1,325 Up 155%Up 487%
Net income$6,740 $2,713 $1,292 Up 148%Up 422%
Diluted earnings per share$2.70 $1.09 $0.51 Up 148%Up 429%

Outlook

NVIDIA’s outlook for the third quarter of fiscal 2024 is as follows:

  • Revenue is expected to be $16.00 billion, plus or minus 2%.
  • GAAP and non-GAAP gross margins are expected to be 71.5% and 72.5%, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $2.95 billion and $2.00 billion, respectively.
  • GAAP and non-GAAP other income and expense are expected to be an income of approximately $100 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 14.5%, plus or minus 1%, excluding any discrete items.

Highlights

NVIDIA achieved progress since its previous earnings announcement in these areas: 

Data Center

  • Second-quarter revenue was a record $10.32 billion, up 141% from the previous quarter and up 171% from a year ago.
  • Announced that the NVIDIA® GH200 Grace™ Hopper™ Superchip for complex AI and HPC workloads is shipping this quarter, with a second-generation version with HBM3e memory expected to ship in Q2 of calendar 2024.
  • Announced the NVIDIA L40S GPU — a universal data center processor designed to accelerate the most compute-intensive applications — available from leading server makers in a broad range of platforms, including NVIDIA OVX™ and NVIDIA AI-ready servers with NVIDIA BlueField® DPUs, beginning this quarter.
  • Unveiled NVIDIA MGX™, a server reference design available this quarter that lets system makers quickly and cost-effectively build more than 100 server variations for AI, HPC and NVIDIA Omniverse™ applications.
  • Announced NVIDIA Spectrum-X™, an accelerated networking platform designed to improve the performance and efficiency of Ethernet-based AI clouds, which is shipping this quarter.
  • Joined with global system makers to announce new NVIDIA RTX™ workstations with up to four new NVIDIA RTX 6000 Ada GPUs, as well as NVIDIA AI Enterprise and NVIDIA Omniverse Enterprise software, expected to ship this quarter.
  • Launched general availability of cloud instances based on NVIDIA H100 Tensor Core GPUs with Amazon Web Services, Microsoft Azure and regional cloud service providers.
  • Partnered with a range of companies on AI initiatives, including: 

    • ServiceNow and Accenture to develop AI Lighthouse, a first-of-its-kind program to fast-track the development and adoption of enterprise generative AI capabilities.
    • VMware to extend the companies’ strategic partnership to ready enterprises running VMware’s cloud infrastructure for the era of generative AI with VMware Private AI Foundation with NVIDIA.
    • Snowflake to provide businesses with an accelerated path to create customized generative AI applications using their own proprietary data.
    • WPP to develop a generative AI-enabled content engine that lets creative teams produce high-quality commercial content faster, more efficiently and at scale while staying fully aligned with a client’s brand.
    • SoftBank to create a platform for generative AI and 5G/6G applications based on the GH200, which SoftBank plans to roll out at new, distributed AI data centers across Japan.
    • Hugging Face to give developers access to NVIDIA DGX™ Cloud AI supercomputing within the Hugging Face platform to train and tune advanced AI models.

  • Announced NVIDIA AI Workbench, an easy-to-use toolkit allowing developers to quickly create, test and customize pretrained generative AI models on a PC or workstation and then scale them, as well as NVIDIA AI Enterprise 4.0, the latest version of its enterprise software.
  • Set records in the latest MLPerf training benchmarks with H100 GPUs, excelling in a new measure for generative AI. 

Gaming

  • Second-quarter revenue was $2.49 billion, up 11% from the previous quarter and up 22% from a year ago.
  • Began shipping the GeForce RTX™ 4060 family of GPUs, bringing to gamers NVIDIA Ada Lovelace architecture and DLSS, starting at $299.
  • Announced NVIDIA Avatar Cloud Engine, or ACE, for Games, a custom AI model foundry service using AI-powered natural language interactions to transform games by bringing intelligence to non-playable characters.
  • Added 35 DLSS games, including Diablo IV, Ratchet & Clank: Rift Apart, Baldur’s Gate 3 and F1 23, as well as Portal: Prelude RTX, a path-traced game made by the community using NVIDIA’s RTX Remix creator tool.

Professional Visualization

  • Second-quarter revenue was $379 million, up 28% from the previous quarter and down 24% from a year ago.
  • Announced three new desktop workstation RTX GPUs based on the Ada Lovelace architecture — NVIDIA RTX 5000, RTX 4500 and RTX 4000 — to deliver the latest AI, graphics and real-time rendering, which are shipping this quarter.
  • Announced a major release of the NVIDIA Omniverse platform, with new foundation applications and services for developers and industrial enterprises to optimize and enhance their 3D pipelines with OpenUSD and generative AI.
  • Joined with Pixar, Adobe, Apple and Autodesk to form the Alliance for OpenUSD to promote the standardization, development, evolution and growth of Universal Scene Description technology.

Automotive

  • Second-quarter revenue was $253 million, down 15% from the previous quarter and up 15% from a year ago.
  • Announced that NVIDIA DRIVE Orin™ is powering the new XPENG G6 Coupe SUV’s intelligent advanced driver assistance system.
  • Partnered with MediaTek, which will develop mainstream automotive systems on chips for global OEMs, which integrate new NVIDIA GPU chiplet IP for AI and graphics.

CFO Commentary

Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at

Conference Call and Webcast Information

NVIDIA will conduct a conference call with analysts and investors to discuss its second quarter fiscal 2024 financial results and current financial prospects today at 2 p.m. Pacific time (5 p.m. Eastern time). A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its third quarter of fiscal 2024.

Non-GAAP Measures

To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income from operations, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP net income, or earnings, per diluted share, and free cash flow. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude acquisition termination costs, stock-based compensation expense, acquisition-related and other costs, IP-related costs, legal settlement costs, contributions, other, gains and losses from non-affiliated investments, interest expense related to amortization of debt discount, and the associated tax impact of these items where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less both purchases of property and equipment and intangible assets and principal payments on property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.

 

NVIDIA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

































   Three Months Ended Six Months Ended
   July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022
          
Revenue$13,507  $6,704  $20,699  $14,992 
Cost of revenue 4,045   3,789   6,589   6,646 
Gross profit 9,462   2,915   14,110   8,346 
          
Operating expenses       
 Research and development 2,040   1,824   3,916   3,443 
 Sales, general and administrative 622   592   1,253   1,183 
 Acquisition termination cost          1,353 
  Total operating expenses 2,662   2,416   5,169   5,979 
          
Operating income 6,800   499   8,941   2,367 
 Interest income 187   46   338   64 
 Interest expense (65)  (65)  (131)  (132)
 Other, net 59   (5)  42   (19)
  Other income (expense), net 181   (24)  249   (87)
          
Income before income tax 6,981   475   9,190   2,280 
Income tax expense (benefit) 793   (181)  958   6 
Net income$6,188  $656  $8,232  $2,274 
          
Net income per share:       
 Basic$2.50  $0.26  $3.33  $0.91 
 Diluted$2.48  $0.26  $3.30  $0.90 
          
Weighted average shares used in per share computation:       
 Basic 2,473   2,495   2,472   2,500 
 Diluted 2,499   2,516   2,495   2,526 

 

 

NVIDIA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)




































   July 30, 2023 January 29, 2023
ASSETS   
      
Current assets:   
 Cash, cash equivalents and marketable securities$16,023 $13,296
 Accounts receivable, net 7,066  3,827
 Inventories 4,319  5,159
 Prepaid expenses and other current assets 1,389  791
  Total current assets 28,797  23,073
      
Property and equipment, net 3,799  3,807
Operating lease assets 1,235  1,038
Goodwill 4,430  4,372
Intangible assets, net 1,395  1,676
Deferred income tax assets 5,398  3,396
Other assets 4,501  3,820
  Total assets$49,555 $41,182
      
LIABILITIES AND SHAREHOLDERS’ EQUITY
      
Current liabilities:   
 Accounts payable$1,929 $1,193
 Accrued and other current liabilities 7,156  4,120
 Short-term debt 1,249  1,250
  Total current liabilities 10,334  6,563
      
Long-term debt 8,456  9,703
Long-term operating lease liabilities 1,041  902
Other long-term liabilities 2,223  1,913
  Total liabilities 22,054  19,081
      
Shareholders’ equity 27,501  22,101
  Total liabilities and shareholders’ equity$49,555 $41,182

 

 

NVIDIA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

































  Three Months Ended Six Months Ended
  July 30, July 31, July 30, July 31,
   2023   2022   2023   2022 
         
Cash flows from operating activities:       
Net income$6,188  $656  $8,232  $2,274 
Adjustments to reconcile net income to net cash provided by operating activities:       
 Stock based compensation expense 842   648   1,576   1,226 
 Depreciation and amortization 365   378   749   712 
 (Gains) losses on investments in non affiliates, net (60)  7   (45)  24 
 Deferred income taxes (746)  (443)  (1,881)  (985)
 Acquisition termination cost          1,353 
 Other (69)  (5)  (102)  18 
Changes in operating assets and liabilities, net of acquisitions:       
 Accounts receivable (2,986)  120   (3,239)  (668)
 Inventories 296   (725)  861   (1,285)
 Prepaid expenses and other assets (376)  (293)  (592)  (1,554)
 Accounts payable 777   304   789   559 
 Accrued liabilities and other current liabilities 1,986   633   2,675   1,267 
 Other long-term liabilities 131   (10)  236   60 
Net cash provided by operating activities 6,348   1,270   9,259   3,001 
         
Cash flows from investing activities:       
 Proceeds from maturities of marketable securities 2,598   5,036   5,111   10,983 
 Proceeds from sales of marketable securities    702      1,731 
 Purchases of marketable securities (2,542)  (3,644)  (5,343)  (7,576)
 Purchase related to property and equipment and intangible assets (289)  (433)  (537)  (794)
 Acquisitions, net of cash acquired    (13)  (83)  (49)
 Investments and other, net (214)  (30)  (435)  (65)
Net cash provided by (used in) investing activities (447)  1,618   (1,287)  4,230 

 




























  Three Months Ended Six Months Ended
  July 30, July 31, July 30, July 31,
   2023   2022   2023   2022 
         
Cash flows from financing activities:       
 Proceeds related to employee stock plans 1   1   247   205 
 Payments related to repurchases of common stock (3,067)  (3,345)  (3,067)  (5,341)
 Repayment of debt (1,250)     (1,250)   
 Payments related to tax on restricted stock units (672)  (305)  (1,179)  (837)
 Dividends paid (99)  (100)  (199)  (200)
 Principal payments on property and equipment and intangible assets (11)  (14)  (31)  (36)
 Other    1      1 
Net cash used in financing activities (5,098)  (3,762)  (5,479)  (6,208)
         
Change in cash, cash equivalents, and restricted cash 803   (874)  2,493   1,023 
Cash, cash equivalents, and restricted cash at beginning of period 5,079   3,887   3,389   1,990 
Cash, cash equivalents, and restricted cash at end of period$5,882  $3,013  $5,882  $3,013 
         
Reconciliation of cash, cash equivalents, and restricted cash to the Condensed Consolidated Balance Sheet:       
 Cash and cash equivalents$5,783  $3,013  $5,783  $3,013 
 Restricted cash, included in prepaid expenses and other current assets 99      99    
Total cash, cash equivalents, and restricted cash$5,882  $3,013  $5,882  $3,013 
         
Supplemental disclosures of cash flow information:       
Cash paid for income taxes, net$227  $1,081  $328  $1,108 

 

 

NVIDIA CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

(Unaudited)





































   Three Months Ended Six Months Ended
   July 30, April 30, July 31, July 30, July 31,
    2023   2023   2022   2023   2022 
            
GAAP gross profit$9,462  $4,648  $2,915  $14,110  $8,346 
 GAAP gross margin  70.1%  64.6%  43.5%  68.2%  55.7%
  Acquisition-related and other costs (A) 119   119   121   239   214 
  Stock-based compensation expense (B) 31   27   38   58   76 
  IP-related costs 2   8      10    
Non-GAAP gross profit$9,614  $4,802  $3,074  $14,417  $8,636 
 Non-GAAP gross margin  71.2%  66.8%  45.9%  69.7%  57.6%
            
GAAP operating expenses$2,662  $2,508  $2,416  $5,169  $5,979 
  Stock-based compensation expense (B) (811)  (708)  (611)  (1,518)  (1,151)
  Acquisition-related and other costs (A) (18)  (54)  (54)  (72)  (110)
  Acquisition termination cost             (1,353)
  Legal settlement costs             (7)
  Contributions       (2)     (2)
  Other (C) 5   4      10    
Non-GAAP operating expenses$1,838  $1,750  $1,749  $3,589  $3,356 
            
GAAP operating income$6,800  $2,140  $499  $8,941  $2,367 
  Total impact of non-GAAP adjustments to operating income 976   912   826   1,887   2,913 
Non-GAAP operating income$7,776  $3,052  $1,325  $10,828  $5,280 
            
GAAP other income (expense), net$181  $69  $(24) $249  $(87)
  (Gains) losses from non-affiliated investments (62)  14   7   (46)  24 
  Interest expense related to amortization of debt discount 1   1   1   2   2 
Non-GAAP other income (expense), net$120  $84  $(16) $205  $(61)
            
GAAP net income$6,188  $2,043  $656  $8,232  $2,274 
  Total pre-tax impact of non-GAAP adjustments 915   927   833   1,843   2,940 
  Income tax impact of non-GAAP adjustments (D) (363)  (257)  (197)  (622)  (478)
Non-GAAP net income $6,740  $2,713  $1,292  $9,453  $4,736 

 
















  Three Months Ended Six Months Ended
  July 30, April 30, July 31, July 30, July 31,
   2023   2023   2022   2023   2022 
Diluted net income per share         
 GAAP$2.48  $0.82  $0.26  $3.30  $0.90 
 Non-GAAP$2.70  $1.09  $0.51  $3.79  $1.87 
           
Weighted average shares used in diluted net income per share computation 2,499   2,490   2,516   2,495   2,527 
           
GAAP net cash provided by operating activities$6,348  $2,911  $1,271  $9,259  $3,001 
 Purchases related to property and equipment and intangible assets (289)  (248)  (432)  (537)  (794)
 Principal payments on property and equipment and intangible assets (11)  (20)  (15)  (31)  (36)
Free cash flow$6,048  $2,643  $824  $8,691  $2,171 

 






















(A) Acquisition-related and other costs are comprised of amortization of intangible assets, transaction costs, and certain compensation charges and are included in the following line items:
  Three Months Ended Six Months Ended
  July 30, April 30, July 31, July 30, July 31,
   2023  2023  2022  2023  2022
 Cost of revenue$119 $119 $121 $239 $214
 Research and development$12 $12 $10 $24 $19
 Sales, general and administrative$6 $42 $44 $48 $91
           
(B) Stock-based compensation consists of the following:
  Three Months Ended Six Months Ended
  July 30, April 30, July 31, July 30, July 31,
   2023  2023  2022  2023  2022
 Cost of revenue$31 $27 $38 $58 $76
 Research and development$600 $524 $452 $1,124 $836
 Sales, general and administrative$211 $184 $159 $394 $315
           
(C) Other consists of assets held for sale related adjustments.
           
(D) 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).

 

 

NVIDIA CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK 













  Q3 FY2024
  Outlook
  ($ in millions)
GAAP gross margin 71.5%
 Impact of stock-based compensation expense, acquisition-related costs, and other costs 1.0%
Non-GAAP gross margin 72.5%
   
GAAP operating expenses$2,950 
 Stock-based compensation expense, acquisition-related costs, and other costs (950)
Non-GAAP operating expenses$2,000 

 



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