Table of Contents
- Revenue of $7.19 billion, up 19% from the previous quarter
- Revenue of $4.28 billion for Data Centers
- Revenue outlook of $11.00 billion for the second quarter of fiscal 2024
NVidia (NASDAQ: NVDA) today reported revenue of $7.19 billion for the first quarter ended April 30, 2023, down 13% from a year ago.
For the quarter, GAAP earnings per diluted share were $0.82, up 28% from a year ago and up 44% from the prior quarter. Non-GAAP earnings per diluted share were $1.09, down 20% from a year ago and up 24% from the prior quarter.
NVIDIA founder and CEO Jensen Huang said, “The computer industry is going through two simultaneous transitions – accelerated computing and generative AI.”
As companies race to integrate generative AI into every product, service, and business process, a trillion dollars of installed global data center infrastructure will shift to accelerated computing.
We are significantly increasing our supply to meet surging demand for all of our data center products, including H100, Grace CPU, Grace Hopper Superchip, NVLink, Quantum 400 InfiniBand, and BlueField-3 DPU.
In the first quarter of fiscal 2024, NVIDIA returned $99 million to shareholders in cash dividends.
All shareholders of record on June 8, 2023 will receive NVIDIA’s next quarterly cash dividend of $0.04 per share on June 30, 2023.
Q1 Fiscal 2024 Summary
| GAAP | |||||||||||
| ($ in millions, except earnings per share) | Q1 FY24 | Q4 FY23 | Q1 FY23 | Q/Q | Y/Y | ||||||
| Revenue | $ | 7,192 | $ | 6,051 | $ | 8,288 | Up 19% | Down 13% | |||
| Gross margin | 64.6 | % | 63.3 | % | 65.5 | % | Up 1.3 pts | Down 0.9 pts | |||
| Operating expenses | $ | 2,508 | $ | 2,576 | $ | 3,563 | Down 3% | Down 30% | |||
| Operating income | $ | 2,140 | $ | 1,257 | $ | 1,868 | Up 70% | Up 15% | |||
| Net income | $ | 2,043 | $ | 1,414 | $ | 1,618 | Up 44% | Up 26% | |||
| Diluted earnings per share | $ | 0.82 | $ | 0.57 | $ | 0.64 | Up 44% | Up 28% | |||
| Non-GAAP | |||||||||||
| ($ in millions, except earnings per share) | Q1 FY24 | Q4 FY23 | Q1 FY23 | Q/Q | Y/Y | ||||||
| Revenue | $ | 7,192 | $ | 6,051 | $ | 8,288 | Up 19% | Down 13% | |||
| Gross margin | 66.8 | % | 66.1 | % | 67.1 | % | Up 0.7 pts | Down 0.3 pts | |||
| Operating expenses | $ | 1,750 | $ | 1,775 | $ | 1,608 | Down 1% | Up 9% | |||
| Operating income | $ | 3,052 | $ | 2,224 | $ | 3,955 | Up 37% | Down 23% | |||
| Net income | $ | 2,713 | $ | 2,174 | $ | 3,443 | Up 25% | Down 21% | |||
| Diluted earnings per share | $ | 1.09 | $ | 0.88 | $ | 1.36 | Up 24% | Down 20% | |||
The future
The following is NVIDIA’s outlook for the second quarter of fiscal 2024:
We expect revenue to be $11.00 billion, plus or minus 2%.
The GAAP and non-GAAP gross margins are expected to be 68.6% and 70.0%, respectively.
It is expected that GAAP and non-GAAP operating expenses will be approximately $2.71 billion and $1.90 billion, respectively.
Including gains and losses from non-affiliated investments, GAAP and non-GAAP other income and expenses are expected to be approximately $90 million.
Including any discrete items, GAAP and non-GAAP tax rates are expected to be 14.0%, plus or minus 1%.
A few highlights
Since its previous earnings announcement, NVIDIA has made the following progress:
Center for data management
There was a record $4.28 billion in revenue in the first quarter, an increase of 14% from a year ago and 18% from the previous quarter.
Combined the company’s full-stack inference software with the latest NVIDIA Ada, NVIDIA HopperTM and NVIDIA Grace HopperTM processors to launch four new inference platforms.
Google Cloud is the first cloud provider to offer the new NVIDIA L4 Tensor Core GPU to accelerate generative AI applications.
NVIDIA AI Foundation helps businesses build and operate custom large language models and generative AI models using their own proprietary data.
Launched the NVIDIA cuLitho software library for computational lithography to accelerate next-generation semiconductor design and manufacturing.
Provided new products and services based on the NVIDIA H100 Tensor Core GPU, including Amazon Web Services, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure.
Developed generative AI across enterprise IT in partnership with ServiceNow.
Developed an AI platform for medical devices in collaboration with Medtronic.
Developed full-stack solutions for enterprises to build and deploy trustworthy generative AI applications in partnership with Dell Technologies.
Microsoft announced the integration of NVIDIA AI Enterprise software into Azure Machine Learning to help enterprises accelerate their AI initiatives.
Playing video games
Revenue in the first quarter was $2.24 billion, down 38% from a year ago and up 22% from the previous quarter.
Introducing the GeForce RTXTM 4060 GPU family, featuring Ada Lovelace architecture and DLSS, starting at $299.
Developed the GeForce RTX 4070 GPU based on the Ada architecture, enabling DLSS 3, real-time ray-tracing, and running most modern games at over 100 frames per second at 1440p.
A total of 300 games and apps have been added, including 36 DLSS titles.
Collaboration with CD PROJEKT RED on an update to Cyberpunk 2077 enabled path tracing for the first time.
Added more than 1,600 game titles to GeForce NOW, including Gears 5, the first Xbox game.
Visualization by professionals
Its first-quarter revenue was $295 million, down 53% from a year ago but up 31% from the previous quarter.
For the development and deployment of industrial metaverse applications, NVIDIA OmniverseTM Cloud is a fully managed service running in Microsoft Azure.
Integrated Microsoft 365 applications with Omniverse as part of its collaboration with Microsoft.
NVIDIA announced six new Ada-based GPUs for mobile and desktop workstations.
Automobiles
Record revenues of $296 million were generated in the first quarter, up 114% from a year ago and up 1% from the previous quarter.
Over the next six years, the automotive design win pipeline will grow to $14 billion from $11 billion.
NVIDIA DRIVE OrinTM will be extended across new models by the world’s leading electric vehicle manufacturer, BYD.
Commentary from the CFO
Colette Kress, NVIDIA’s executive vice president and chief financial officer, provides a commentary on the quarter at https://investor.nvidia.com.
Information about the conference call and webcast
NVIDIA is holding a conference call with analysts and investors to cover its financial results and outlook from the first quarter of fiscal 2024 today at 2 p.m. Pacific (5 p.m. Eastern). It can be streamed live on their investor relations site, https://investor.nvidia.com, and will be archived until the organization discusses their second quarter of fiscal 2024.
Measuring non-GAAP
In addition to its statements in accordance with GAAP, NVIDIA uses non-GAAP measures to evaluate certain components of financial performance. These include non-GAAP gross profit, margin, operating expenses, income from operations, net income and earnings per diluted share, as well as free cash flow. To enable comparisons between past results and present figures, the company provides reconciliations of GAAP and non-GAAP financial measures. These reconciliations take into account acquisition termination costs, stock-based compensation expense and other costs, IP-related outgoings, legal settlement payments; losses from non-affiliated investments; interest expense related to amortization of debt discount; plus any linked tax liabilities. Free cash flow calculations take GAAP net cash provided by operating activities and subtract purchases of property and equipment, intangible assets and principal payments for similar items. NVIDIA believes that the inclusion of these non-GAAP figures gives a clearer insight into historical financial performance. It is important to note that these measures differ from those employed by other organizations.
