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NVIDIA Announces Financial Results for Third Quarter Fiscal 2024

  • Record revenue of $18.12 billion, up 34% from Q2, up 206% from year ago
  • Record Data Center revenue of $14.51 billion, up 41% from Q2, up 279% from year ago

NVIDIA (NASDAQ: NVDA) today reported revenue for the third quarter ended October 29, 2023, of $18.12 billion, up 206% from a year ago and up 34% from the previous quarter.

GAAP earnings per diluted share for the quarter were $3.71, up more than 12x from a year ago and up 50% from the previous quarter. Non-GAAP earnings per diluted share were $4.02, up nearly 6x from a year ago and up 49% from the previous quarter.

“Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI,” said Jensen Huang, founder and CEO of NVIDIA.

“Large language model startups, consumer internet companies and global cloud service providers were the first movers, and the next waves are starting to build. Nations and regional CSPs are investing in AI clouds to serve local demand, enterprise software companies are adding AI copilots and assistants to their platforms, and enterprises are creating custom AI to automate the world’s largest industries.

“NVIDIA GPUs, CPUs, networking, AI foundry services and NVIDIA AI Enterprise software are all growth engines in full throttle. The era of generative AI is taking off,” he said.

NVIDIA will pay its next quarterly cash dividend of $0.04 per share on December 28, 2023, to all shareholders of record on December 6, 2023.

Q3 Fiscal 2024 Summary











GAAP
($ in millions, except earnings

per share)
Q3 FY24Q2 FY24Q3 FY23Q/QY/Y
Revenue$18,120$13,507$5,931Up 34%Up 206%
Gross margin74.0%70.1%53.6%Up 3.9 ptsUp 20.4 pts
Operating expenses$2,983$2,662$2,576Up 12%Up 16%
Operating income$10,417$6,800$601Up 53%Up 1,633%
Net income$9,243$6,188$680Up 49%Up 1,259%
Diluted earnings per share$3.71$2.48$0.27Up 50%Up 1,274%

 












Non-GAAP
($ in millions, except earnings

per share)
Q3 FY24Q2 FY24Q3 FY23Q/QY/Y
Revenue$18,120$13,507$5,931Up 34%Up 206%
Gross margin75.0%71.2%56.1%Up 3.8 ptsUp 18.9 pts
Operating expenses$2,026$1,838$1,793Up 10%Up 13%
Operating income$11,557$7,776$1,536Up 49%Up 652%
Net income$10,020$6,740$1,456Up 49%Up 588%
Diluted earnings per share$4.02$2.70$0.58Up 49%Up 593%
      

Outlook

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

  • Revenue is expected to be $20.00 billion, plus or minus 2%.
  • GAAP and non-GAAP gross margins are expected to be 74.5% and 75.5%, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $3.17 billion and $2.20 billion, respectively.
  • GAAP and non-GAAP other income and expense are expected to be an income of approximately $200 million, excluding gains and losses from non-affiliated investments.
  • GAAP and non-GAAP tax rates are expected to be 15.0%, plus or minus 1%, excluding any discrete items.

Highlights

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

Data Center

  • Third-quarter revenue was a record $14.51 billion, up 41% from the previous quarter and up 279% from a year ago.
  • Announced NVIDIA HGX™ H200 with the new NVIDIA H200 Tensor Core GPU, the first GPU with HBM3e memory, with systems expected to be available in the second quarter of next year.
  • Introduced an AI foundry service — with NVIDIA AI Foundation Models, NVIDIA NeMo™ framework and NVIDIA DGX™ Cloud AI supercomputing — to accelerate the development and tuning of custom generative AI applications, first available on Microsoft Azure, with SAP and Amdocs among the first customers.
  • Announced that the NVIDIA Spectrum-X™ Ethernet networking platform for AI will be integrated into servers from Dell Technologies, Hewlett Packard Enterprise and Lenovo in the first quarter of next year.
  • Announced that NVIDIA GH200 Grace Hopper Superchips, including a new quad configuration, will power more than 40 new supercomputers, including the JUPITER system at Jülich Supercomputing Centre and Isambard-AI at the University of Bristol.
  • Made advances with global cloud service providers:
  • Partnered with a range of leading companies on AI initiatives, including Amdocs, Dropbox, Foxconn, Genentech (member of Roche Group), Infosys, Lenovo, Reliance Industries, Scaleway and Tata Group.
  • Announced record-setting performance in the latest two sets of MLPerf benchmarks for inference and training, with the NVIDIA Eos AI supercomputer training a GPT-3 model 3x faster than the previous record.
  • Announced growing worldwide support for the NVIDIA® CUDA® Quantum platform, including new efforts in Israel, the Netherlands, the U.K. and the U.S.

Gaming

  • Third-quarter revenue was $2.86 billion, up 15% from the previous quarter and up 81% from a year ago. 
  • Launched DLSS 3.5 Ray Reconstruction, which creates high-quality ray-traced images for intensive ray-traced games and apps, including Alan Wake 2 and Cyberpunk 2077
  • Released TensorRT-LLM™ for Windows, speeding on-device LLM inference by up to 4x. 
  • Added 56 DLSS games and over 15 Reflex games, bringing the total number of RTX games and applications to over 475. 
  • Surpassed 1,700 games on GeForce NOW™, including launches of Alan Wake 2, Baldur’s Gate 3, Cyberpunk 2077: Phantom Liberty, Forza Motorsport and Starfield.

Professional Visualization

  • Third-quarter revenue was $416 million, up 10% from the previous quarter and up 108% from a year ago.
  • Announced that Mercedes-Benz is using NVIDIA Omniverse to create digital twins to help plan, design, build and operate its manufacturing and assembly facilities around the world.
  • Announced a new line of desktop workstations with NVIDIA RTX™ 6000 Ada Generation GPUs and NVIDIA ConnectX® smart interface cards for training smaller AI models, fine-tuning models and running inference locally.

Automotive

  • Third-quarter revenue was $261 million, up 3% from the previous quarter and up 4% from a year ago.
  • Furthered its collaboration with Foxconn to develop next-generation electric vehicles for the global market, using the next-generation NVIDIA DRIVE Hyperion™ platform and NVIDIA DRIVE Thor™ system-on-a-chip.

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 third 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 fourth quarter and 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, 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 Nine Months Ended
   October 29, October 30, October 29, October 30,
    2023   2022   2023   2022 
          
Revenue$18,120  $5,931  $38,819  $20,923 
Cost of revenue 4,720   2,754   11,309   9,400 
Gross profit 13,400   3,177   27,510   11,523 
          
Operating expenses       
 Research and development 2,294   1,945   6,210   5,387 
 Sales, general and administrative 689   631   1,942   1,815 
 Acquisition termination cost          1,353 
  Total operating expenses 2,983   2,576   8,152   8,555 
          
Operating Income 10,417   601   19,358   2,968 
 Interest income 234   88   572   152 
 Interest expense (63)  (65)  (194)  (198)
 Other, net (66)  (11)  (24)  (29)
  Other income (expense), net 105   12   354   (75)
          
Income before income tax 10,522   613   19,712   2,893 
Income tax expense (benefit) 1,279   (67)  2,237   (61)
Net income$9,243  $680  $17,475  $2,954 
          
Net income per share:       
 Basic$3.75  $0.27  $7.07  $1.18 
 Diluted$3.71  $0.27  $7.01  $1.17 
          
Weighted average shares used in per share computation:       
 Basic 2,468   2,483   2,470   2,495 
 Diluted 2,494   2,499   2,494   2,517 
          

 












































NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
       
       
    October 29, January 29,
     2023  2023
ASSETS    
       
Current assets:    
 Cash, cash equivalents and marketable securities $18,281 $13,296
 Accounts receivable, net  8,309  3,827
 Inventories  4,779  5,159
 Prepaid expenses and other current assets  1,289  791
  Total current assets  32,658  23,073
       
Property and equipment, net  3,844  3,807
Operating lease assets  1,316  1,038
Goodwill  4,430  4,372
Intangible assets, net  1,251  1,676
Deferred income tax assets  5,982  3,396
Other assets  4,667  3,820
  Total assets $54,148 $41,182
       
LIABILITIES AND SHAREHOLDERS’ EQUITY
       
Current liabilities:    
 Accounts payable $2,380 $1,193
 Accrued and other current liabilities  5,472  4,120
 Short-term debt  1,249  1,250
  Total current liabilities  9,101  6,563
       
Long-term debt  8,457  9,703
Long-term operating lease liabilities  1,091  902
Other long-term liabilities  2,234  1,913
  Total liabilities  20,883  19,081
       
Shareholders’ equity  33,265  22,101
  Total liabilities and shareholders’ equity $54,148 $41,182
       

 























































NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
          
          
   Three Months Ended Nine Months Ended
   October 29, October 30, October 29, October 30,
    2023   2022   2023   2022 
          
Cash flows from operating activities:       
Net income$9,243  $680  $17,475  $2,954 
Adjustments to reconcile net income to net cash       
provided by operating activities:       
 Stock based compensation expense 979   745   2,555   1,971 
 Depreciation and amortization 372   406   1,121   1,118 
 Losses on investments in non-affiliates, net 69   11   24   35 
 Deferred income taxes (529)  (532)  (2,411)  (1,517)
 Acquisition termination cost          1,353 
 Other (66)  (45)  (170)  (27)
Changes in operating assets and liabilities, net of acquisitions:       
 Accounts receivable (1,243)  410   (4,482)  (258)
 Inventories (457)  (563)  405   (1,848)
 Prepaid expenses and other assets 254   247   (337)  (1,307)
 Accounts payable 461   (917)  1,250   (358)
 Accrued liabilities and other current liabilities (1,722)  (92)  953   1,175 
 Other long-term liabilities (28)  42   208   102 
Net cash provided by operating activities 7,333   392   16,591   3,393 
Cash flows from investing activities:       
 Proceeds from maturities of marketable securities 2,891   5,809   8,001   16,792 
 Proceeds from sales of marketable securities    75      1,806 
 Purchases of marketable securities (5,345)  (2,188)  (10,688)  (9,764)
 Purchase related to property and equipment and intangible assets (278)  (530)  (815)  (1,324)
 Acquisitions, net of cash acquired       (83)  (49)
 Investments in non-affiliates and other, net (437)  (18)  (872)  (83)
Net cash provided by (used in) investing activities (3,169)  3,148   (4,457)  7,378 
Cash flows from financing activities:       
 Proceeds related to employee stock plans 156   143   403   349 
 Payments related to repurchases of common stock (3,806)  (3,485)  (6,874)  (8,826)
 Repayment of debt       (1,250)   
 Payments related to tax on restricted stock units (764)  (294)  (1,942)  (1,131)
 Dividends paid (99)  (100)  (296)  (300)
 Principal payments on property and equipment and intangible assets (13)  (18)  (44)  (54)
 Other (1)  1   (1)  1 
Net cash used in financing activities (4,527)  (3,753)  (10,004)  (9,961)
Change in cash, cash equivalents, and restricted cash (363)  (213)  2,130   810 
Cash, cash equivalents, and restricted cash at beginning of period 5,882   3,013   3,389   1,990 
Cash, cash equivalents, and restricted cash at end of period$5,519  $2,800  $5,519  $2,800 
          
Supplemental disclosure of cash flow information:       
 Cash paid for income taxes, net$4,348  $264  $4,676  $1,372 
          

 











































































 NVIDIA CORPORATION
 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
 (In millions, except per share data)
 (Unaudited)
           
    Three Months Ended  Nine Months Ended
    October 29, July 30, October 30, October 29, October 30,
     2023   2023   2022   2023   2022 
             
 GAAP gross profit$13,400  $9,462  $3,177  $27,510  $11,523 
  GAAP gross margin 74.0%  70.1%  53.6%  70.9%  55.1%
  Acquisition-related and other costs (A) 119   119   120   358   335 
  Stock-based compensation expense (B) 38   31   32   96   108 
  IP-related costs 26   2      36    
 Non-GAAP gross profit$13,583  $9,614  $3,329  $28,000  $11,966 
  Non-GAAP gross margin 75.0%  71.2%  56.1%  72.1%  57.2%
             
  GAAP operating expenses$2,983  $2,662  $2,576  $8,152  $8,555 
  Stock-based compensation expense (B) (941)  (811)  (713)  (2,459)  (1,863)
  Acquisition-related and other costs (A) (16)  (18)  (54)  (88)  (164)
  Acquisition termination cost             (1,353)
  Other (C)     5   (16)  10   (25)
 Non-GAAP operating expenses$2,026  $1,838  $1,793  $5,615  $5,150 
             
 GAAP operating income$10,417  $6,800  $601  $19,358  $2,968 
  Total impact of non-GAAP adjustments to operating income 1,140   976   935   3,027   3,848 
 Non-GAAP operating income$11,557  $7,776  $1,536  $22,385  $6,816 
             
 GAAP other income (expense), net$105  $181  $12  $354  $(75)
  (Gains) losses from non-affiliated investments 69   (62)  11   23   36 
  Interest expense related to amortization of debt discount 1   1   1   3   3 
 Non-GAAP other income (expense), net$175  $120  $24  $380  $(36)
             
 GAAP net income$9,243  $6,188  $680  $17,475  $2,954 
  Total pre-tax impact of non-GAAP adjustments 1,210   915   947   3,053   3,887 
  Income tax impact of non-GAAP adjustments (D) (433)  (363)  (171)  (1,055)  (649)
 Non-GAAP net income $10,020  $6,740  $1,456  $19,473  $6,192 
             
 Diluted net income per share         
  GAAP $3.71  $2.48  $0.27  $7.01  $1.17 
  Non-GAAP $4.02  $2.70  $0.58  $7.81  $2.46 
             
 Weighted average shares used in diluted net income per share computation 2,494   2,499   2,499   2,494   2,517 
             
 GAAP net cash provided by operating activities$7,333  $6,348  $392  $16,591  $3,393 
  Purchases related to property and equipment and intangible assets (278)  (289)  (530)  (815)  (1,324)
  Principal payments on property and equipment and intangible assets (13)  (11)  (18)  (44)  (54)
 Free cash flow $7,042  $6,048  $(156) $15,732  $2,015 
             
  
             
 (A) Acquisition-related and other costs are comprised of amortization of intangible assets and transaction costs, and are included in the following line items:
    Three Months Ended Nine Months Ended
    October 29, July 30, October 30, October 29, October 30,
     2023   2023   2022   2023   2022 
  Cost of revenue$119  $119  $120  $358  $335 
  Research and development$12  $12  $10  $37  $29 
  Sales, general and administrative$4  $6  $44  $51  $135 
             
 (B) Stock-based compensation consists of the following:   
    Three Months Ended Nine Months Ended
    October 29, July 30, October 30, October 29, October 30,
     2023   2023   2022   2023   2022 
  Cost of revenue$38  $31  $32  $96  $108 
  Research and development$701  $600  $530  $1,826  $1,365 
  Sales, general and administrative$240  $211  $183  $633  $498 
             
 (C) Other consists of costs related to Russia branch office closure, assets held for sale related adjustments, legal settlement costs, and contributions.
             
 (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
   
 
  Q4

FY2024

Outlook
  ($ in millions)
   
GAAP gross margin 74.5%
 Impact of stock-based compensation expense, acquisition-related costs, and other costs 1.0%
Non-GAAP gross margin 75.5%
   
GAAP operating expenses$3,165 
 Stock-based compensation expense, acquisition-related costs, and other costs (965)
Non-GAAP operating expenses$2,200 
   

 

 


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