NVIDIA Announces Financial Results for First Quarter Fiscal 2025

• Document quarterly income of $26.0 billion, up 18% from This fall and up 262% from a 12 months in the past 
• Document quarterly Information Heart income of $22.6 billion, up 23% from This fall and up 427% from a 12 months in the past
• Ten-for-one ahead inventory cut up efficient June 7, 2024
• Quarterly money dividend raised 150% to $0.01 per share on a post-split foundation

NVIDIA (NASDAQ: NVDA) right now reported income for the primary quarter ended April 28, 2024, of $26.0 billion, up 18% from the earlier quarter and up 262% from a 12 months in the past.

For the quarter, GAAP earnings per diluted share was $5.98, up 21% from the earlier quarter and up 629% from a 12 months in the past. Non-GAAP earnings per diluted share was $6.12, up 19% from the earlier quarter and up 461% from a 12 months in the past.

“The subsequent industrial revolution has begun — corporations and international locations are partnering with NVIDIA to shift the trillion-dollar conventional information facilities to accelerated computing and construct a brand new sort of knowledge middle — AI factories — to provide a brand new commodity: synthetic intelligence,” mentioned Jensen Huang, founder and CEO of NVIDIA. “AI will convey vital productiveness beneficial properties to almost each business and assist corporations be extra cost- and energy-efficient, whereas increasing income alternatives.

“Our information middle development was fueled by robust and accelerating demand for generative AI coaching and inference on the Hopper platform. Past cloud service suppliers, generative AI has expanded to shopper web corporations, and enterprise, sovereign AI, automotive and healthcare clients, creating a number of multibillion-dollar vertical markets.

“We’re poised for our subsequent wave of development. The Blackwell platform is in full manufacturing and types the inspiration for trillion-parameter-scale generative AI. Spectrum-X opens a brand-new marketplace for us to convey large-scale AI to Ethernet-only information facilities. And NVIDIA NIM is our new software program providing that delivers enterprise-grade, optimized generative AI to run on CUDA in all places — from the cloud to on-prem information facilities and RTX AI PCs — via our expansive community of ecosystem companions.”

NVIDIA additionally introduced a ten-for-one ahead inventory cut up of NVIDIA’s issued widespread inventory to make inventory possession extra accessible to staff and traders. The cut up will likely be effected via an modification to NVIDIA’s Restated Certificates of Incorporation, which can lead to a proportionate improve within the variety of shares of licensed widespread inventory. Every report holder of widespread inventory as of the shut of market on Thursday, June 6, 2024, will obtain 9 extra shares of widespread inventory, to be distributed after the shut of market on Friday, June 7, 2024. Buying and selling is predicted to start on a split-adjusted foundation at market open on Monday, June 10, 2024.

NVIDIA is growing its quarterly money dividend by 150% from $0.04 per share to $0.10 per share of widespread inventory. The elevated dividend is equal to $0.01 per share on a post-split foundation and will likely be paid on Friday, June 28, 2024, to all shareholders of report on Tuesday, June 11, 2024.

Q1 Fiscal 2025 Abstract

Outlook
NVIDIA’s outlook for the second quarter of fiscal 2025 is as follows:

• Income is predicted to be $28.0 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins are anticipated to be 74.8% and 75.5%, respectively, plus or minus 50 foundation factors. For the total 12 months, gross margins are anticipated to be within the mid-70% vary.
• GAAP and non-GAAP working bills are anticipated to be roughly $4.0 billion and $2.8 billion, respectively. Full-year working bills are anticipated to develop within the low-40% vary.
• GAAP and non-GAAP different earnings and expense are anticipated to be an earnings of roughly $300 million, excluding beneficial properties and losses from non-affiliated investments.
• GAAP and non-GAAP tax charges are anticipated to be 17%, plus or minus 1%, excluding any discrete objects.

Highlights
NVIDIA achieved progress since its earlier earnings announcement in these areas: 

Information Heart

Gaming and AI PC

• First-quarter Gaming income was $2.6 billion, down 8% from the earlier quarter and up 18% from a 12 months in the past. 
• Launched new AI gaming applied sciences at GDC for NVIDIA ACE and Neural Graphics.
• Unveiled new AI efficiency optimizations and integrations for Home windows to ship most efficiency on NVIDIA GeForce RTX AI PCs and workstations.
• Introduced extra blockbuster video games that can incorporate RTX expertise, together with Star Wars Outlaws and Black Fable Wukong.
• Added help for brand spanking new fashions, together with Google’s Gemma, for ChatRTX, which brings chatbot capabilities to RTX-powered Home windows PCs and workstations.

Skilled Visualization

Automotive and Robotics

• First-quarter Automotive income was $329 million, up 17% from the earlier quarter and up 11% from a 12 months in the past.
• Introduced BYD, XPENG, GAC’s AION Hyper, Nuro and others have chosen the next-generation NVIDIA DRIVE Thor™ platform, which now options Blackwell GPU structure, to energy their next-generation shopper and business electrical automobile fleets.
• Revealed U.S. and China electrical automobile makers Lucid and IM Motors are utilizing the NVIDIA DRIVE Orin™ platform for automobile fashions focusing on the European market.
• Introduced an array of companions are utilizing NVIDIA generative AI applied sciences to remodel in-vehicle experiences.
• Launched the Undertaking GR00T basis mannequin for humanoid robots and main Isaac robotics platform updates.

CFO Commentary
Commentary on the quarter by Colette Kress, NVIDIA’s govt vp and chief monetary officer, is obtainable at https://investor.nvidia.com.

Convention Name and Webcast Data
NVIDIA will conduct a convention name with analysts and traders to debate its first quarter fiscal 2025 monetary outcomes and present monetary prospects right now at 2 p.m. Pacific time (5 p.m. Jap time). A dwell webcast (listen-only mode) of the convention name will likely be accessible at NVIDIA’s investor relations web site, https://investor.nvidia.com. The webcast will likely be recorded and obtainable for replay till NVIDIA’s convention name to debate its monetary outcomes for its second quarter of fiscal 2025.

Non-GAAP Measures
To complement NVIDIA’s condensed consolidated monetary statements introduced in accordance with GAAP, the corporate makes use of non-GAAP measures of sure parts of economic efficiency. These non-GAAP measures embody non-GAAP gross revenue, non-GAAP gross margin, non-GAAP working bills, non-GAAP earnings from operations, non-GAAP different earnings (expense), web, non-GAAP web earnings, non-GAAP web earnings, or earnings, per diluted share, and free money movement. For NVIDIA’s traders to be higher in a position to evaluate its present outcomes with these of earlier durations, the corporate has proven a reconciliation of GAAP to non-GAAP monetary measures. These reconciliations modify the associated GAAP monetary measures to exclude stock-based compensation expense, acquisition-related and different prices, different, beneficial properties and losses from non-affiliated investments, curiosity expense associated to amortization of debt low cost, and the related tax affect of these things the place relevant. Free money movement is calculated as GAAP web money supplied by working actions much less each purchases associated to property and gear and intangible belongings and principal funds on property and gear and intangible belongings. NVIDIA believes the presentation of its non-GAAP monetary measures enhances the person’s general understanding of the corporate’s historic monetary efficiency. The presentation of the corporate’s non-GAAP monetary measures will not be meant to be thought-about in isolation or as an alternative choice to the corporate’s monetary outcomes ready in accordance with GAAP, and the corporate’s non-GAAP measures could also be completely different from non-GAAP measures utilized by different corporations.