NVIDIA Announces Financial Results for Third Quarter Fiscal 2025
SANTA CLARA, Calif., Nov. 20, 2024 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported revenue for the third quarter ended October 27, 2024, of $35.1 billion, up 17% from the previous quarter and up 94% from a year ago.
For the quarter, GAAP earnings per diluted share was $0.78, up 16% from the previous quarter and up 111% from a year ago. Non-GAAP earnings per diluted share was $0.81, up 19% from the previous quarter and up 103% from a year ago.
“The age of AI is in full steam, propelling a global shift to NVIDIA computing,” said Jensen Huang, founder and CEO of NVIDIA. “Demand for Hopper and anticipation for Blackwell — in full production — are incredible as foundation model makers scale pretraining, post-training and inference.
“AI is transforming every industry, company and country. Enterprises are adopting agentic AI to revolutionize workflows. Industrial robotics investments are surging with breakthroughs in physical AI. And countries have awakened to the importance of developing their national AI and infrastructure,” he said.
NVIDIA will pay its next quarterly cash dividend of $0.01 per share on December 27, 2024, to all shareholders of record on December 5, 2024.
Q3 Fiscal 2025 Summary
GAAP ($ in millions, except earnings per share) Q3 FY25 Q2 FY25 Q3 FY24 Q/Q Y/Y Revenue $ 35,082 $ 30,040 $ 18,120 Up 17% Up 94% Gross margin 74.6 % 75.1 % 74.0 % Down 0.5 pts Up 0.6 pts Operating expenses $ 4,287 $ 3,932 $ 2,983 Up 9% Up 44% Operating income $ 21,869 $ 18,642 $ 10,417 Up 17% Up 110% Net income $ 19,309 $ 16,599 $ 9,243 Up 16% Up 109% Diluted earnings per share* $ 0.78 $ 0.67 $ 0.37 Up 16% Up 111% Non-GAAP ($ in millions, except earnings per share) Q3 FY25 Q2 FY25 Q3 FY24 Q/Q Y/Y Revenue $ 35,082 $ 30,040 $ 18,120 Up 17% Up 94% Gross margin 75.0 % 75.7 % 75.0 % Down 0.7 pts -- Operating expenses $ 3,046 $ 2,792 $ 2,026 Up 9% Up 50% Operating income $ 23,276 $ 19,937 $ 11,557 Up 17% Up 101% Net income $ 20,010 $ 16,952 $ 10,020 Up 18% Up 100% Diluted earnings per share* $ 0.81 $ 0.68 $ 0.40 Up 19% Up 103%*All per share amounts presented herein have been retroactively adjusted to reflect the ten-for-one stock split, which was effective June 7, 2024.
Outlook NVIDIA’s outlook for the fourth quarter of fiscal 2025 is as follows:
Revenue is expected to be $37.5 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 73.0% and 73.5%, respectively, plus or minus 50 basis points. GAAP and non-GAAP operating expenses are expected to be approximately $4.8 billion and $3.4 billion, respectively. GAAP and non-GAAP other income and expense are expected to be an income of approximately $400 million, excluding gains and losses from non-affiliated investments and publicly-held equity securities. GAAP and non-GAAP tax rates are expected to be 16.5%, 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 $30.8 billion, up 17% from the previous quarter and up 112% from a year ago. Announced the availability of NVIDIA Hopper H200-powered instances in several cloud services, including AWS, CoreWeave and Microsoft Azure, with Google Cloud and Oracle Cloud Infrastructure coming soon. Launched Denmark’s largest sovereign AI supercomputer, an NVIDIA® DGX SuperPOD™ driven by 1,528 NVIDIA H100 Tensor Core GPUs and interconnected using NVIDIA Quantum-2 InfiniBand networking. Introduced the NVIDIA AI Aerial platform for telecommunications providers and began working with T-Mobile, Ericsson and Nokia to accelerate the commercialization of AI-RAN. Announced that SoftBank Corp. is building Japan’s most powerful AI supercomputer with the NVIDIA Blackwell platform and has successfully piloted the world’s first combined AI and 5G telecom network using NVIDIA AI Aerial. Revealed that cloud leaders in India, Japan and Indonesia are building AI infrastructure with NVIDIA accelerated computing, while consulting leaders are helping speed AI adoption across industries with NVIDIA AI Enterprise software. Accelerated xAI’s Colossus supercomputer cluster, using 100,000 NVIDIA Hopper GPUs, with the NVIDIA Spectrum-X™ Ethernet networking platform. Unveiled a partnership with Foxconn to build Taiwan’s fastest AI supercomputer with NVIDIA Blackwell. Announced that Blackwell debuted on MLPerf Training, completed all tests and delivered up to 2.2x performance gains on large language model benchmarks. Contributed foundational elements of the NVIDIA Blackwell design to the Open Compute Project and broadened NVIDIA Spectrum-X support for OCP standards. Revealed that U.S. technology companies including Accenture, Deloitte and Google Cloud are tapping NVIDIA AI software to create custom AI applications, transforming industries worldwide. Announced the expansion of a partnership with Lenovo to launch new hybrid AI solutions and systems optimized to run NVIDIA AI Enterprise software.Gaming and AI PC
Third-quarter Gaming revenue was $3.3 billion, up 14% from the previous quarter and up 15% from a year ago. Celebrated the 25th anniversary of GeForce® 256, the world’s first GPU, which marked a breakthrough for gaming and laid the foundation for an AI-driven future. Demonstrated NVIDIA ACE and digital human technologies in Mecha BREAK, featuring the Minitron 4B model for better in-game character responses, at Gamescom. Introduced 20 GeForce RTX and DLSS titles, including Indiana Jones and the Great Circle and Dragon Age: The Veilguard. Began shipping new RTX AI PCs with 321 AI trillion operations per second of performance from ASUS and MSI, with Microsoft Copilot+ capabilities anticipated next quarter.Professional Visualization
Third-quarter revenue was $486 million, up 7% from the previous quarter and up 17% from a year ago. Announced that Foxconn is using digital twins and industrial AI built on NVIDIA Omniverse™ to bring online faster three factories used to manufacture NVIDIA GB200 Grace Blackwell Superchips. Revealed that leading industrial manufacturers in India, including Reliance and Ola Motors, and Japan, including Toyota, Yaskawa, and Seven and I Holdings, are using NVIDIA AI and Omniverse to automate workflows and drive more efficient operations. Unveiled NVIDIA Holoscan for Media, an AI-enabled, software-defined platform that allows live media and video pipelines to run on the same infrastructure as AI, enhancing production delivery.Automotive and Robotics
Third-quarter Automotive revenue was $449 million, up 30% from the previous quarter and up 72% from a year ago. Revealed that Volvo is releasing a new electric SUV built on NVIDIA accelerated computing. Introduced Project GR00T AI and simulation tools for robot learning and humanoid development, and new generative AI tools and perception workflows for robotics developers. Announced that Japanese and Indian companies including Toyota and Ola Motors are using NVIDIA Isaac™ and Omniverse to build the next wave of physical AI.CFO Commentary Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com.
Conference Call and Webcast Information NVIDIA will conduct a conference call with analysts and investors to discuss its third quarter fiscal 2025 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, https://investor.nvidia.com. 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 2025.
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 operating income, 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 stock-based compensation expense, acquisition-related and other costs, other, gains and losses from non-affiliated investments and publicly-held equity securities, net, 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 related to 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 27, October 29, October 27, October 29, 2024 2023 2024 2023 Revenue $ 35,082 $ 18,120 $ 91,166 $ 38,819 Cost of revenue 8,926 4,720 22,031 11,309 Gross profit 26,156 13,400 69,135 27,510 Operating expenses Research and development 3,390 2,294 9,200 6,210 Sales, general and administrative 897 689 2,516 1,942 Total operating expenses 4,287 2,983 11,716 8,152 Operating Income 21,869 10,417 57,419 19,358 Interest income 472 234 1,275 572 Interest expense (61 ) (63 ) (186 ) (194 ) Other, net 36 (66 ) 301 (24 ) Other income (expense), net 447 105 1,390 354 Income before income tax 22,316 10,522 58,809 19,712 Income tax expense 3,007 1,279 8,020 2,237 Net income $ 19,309 $ 9,243 $ 50,789 $ 17,475 Net income per share (A): Basic $ 0.79 $ 0.37 $ 2.07 $ 0.71 Diluted $ 0.78 $ 0.37 $ 2.04 $ 0.70 Weighted average shares used in per share computation (A): Basic 24,533 24,680 24,577 24,700 Diluted 24,774 24,940 24,837 24,940 (A) Reflects a ten-for-one stock split on June 7, 2024. NVIDIA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) October 27, January 28, 2024 2024 ASSETS Current assets: Cash, cash equivalents and marketable securities $ 38,487 $ 25,984 Accounts receivable, net 17,693 9,999 Inventories 7,654 5,282 Prepaid expenses and other current assets 3,806 3,080 Total current assets 67,640 44,345 Property and equipment, net 5,343 3,914 Operating lease assets 1,755 1,346 Goodwill 4,724 4,430 Intangible assets, net 838 1,112 Deferred income tax assets 10,276 6,081 Other assets 5,437 4,500 Total assets $ 96,013 $ 65,728 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $ 5,353 $ 2,699 Accrued and other current liabilities 11,126 6,682 Short-term debt - 1,250 Total current liabilities 16,479 10,631 Long-term debt 8,462 8,459 Long-term operating lease liabilities 1,490 1,119 Other long-term liabilities 3,683 2,541 Total liabilities 30,114 22,750 Shareholders’ equity 65,899 42,978 Total liabilities and shareholders’ equity $ 96,013 $ 65,728 NVIDIA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended Nine Months Ended October 27, October 29, October 27, October 29, 2024 2023 2024 2023 Cash flows from operating activities: Net income $ 19,309 $ 9,243 $ 50,789 $ 17,475 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 1,252 979 3,416 2,555 Depreciation and amortization 478 372 1,321 1,121 (Gains) losses on investments in non-affiliated entities and publicly-held equity securities, net (37 ) 69 (302 ) 24 Deferred income taxes (602 ) (529 ) (3,879 ) (2,411 ) Other (79 ) (66 ) (365 ) (170 ) Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (3,561 ) (1,243 ) (7,694 ) (4,482 ) Inventories (978 ) (457 ) (2,357 ) 405 Prepaid expenses and other assets (714 ) 254 (726 ) (337 ) Accounts payable 1,689 461 2,490 1,250 Accrued and other current liabilities 606 (1,722 ) 3,918 953 Other long-term liabilities 266 (28 ) 849 208 Net cash provided by operating activities 17,629 7,333 47,460 16,591 Cash flows from investing activities: Proceeds from maturities of marketable securities 1,386 2,891 9,485 8,001 Proceeds from sales of marketable securities 154 - 318 - Purchases of marketable securities (4,518 ) (5,345 ) (19,565 ) (10,688 ) Purchase related to property and equipment and intangible assets (813 ) (278 ) (2,159 ) (815 ) Acquisitions, net of cash acquired (147 ) - (465 ) (83 ) Purchases of investments in non-affiliated entities (473 ) (441 ) (1,008 ) (897 ) Proceeds from sales of investments in non-affiliated entities 66 - 171 - Other - 4 - 25 Net cash used in investing activities (4,345 ) (3,169 ) (13,223 ) (4,457 ) Cash flows from financing activities: Proceeds related to employee stock plans 204 156 489 403 Payments related to repurchases of common stock (10,998 ) (3,806 ) (25,895 ) (6,874 ) Repayment of debt - - (1,250 ) (1,250 ) Payments related to tax on restricted stock units (1,680 ) (764 ) (5,068 ) (1,942 ) Dividends paid (245 ) (99 ) (589 ) (296 ) Principal payments on property and equipment and intangible assets (29 ) (13 ) (97 ) (44 ) Other - (1 ) - (1 ) Net cash used in financing activities (12,748 ) (4,527 ) (32,410 ) (10,004 ) Change in cash, cash equivalents, and restricted cash 536 (363 ) 1,827 2,130 Cash, cash equivalents, and restricted cash at beginning of period 8,571 5,882 7,280 3,389 Cash, cash equivalents, and restricted cash at end of period $ 9,107 $ 5,519 $ 9,107 $ 5,519 Supplemental disclosures of cash flow information: Cash paid for income taxes, net $ 3,540 $ 4,348 $ 10,989 $ 4,676 NVIDIA CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In millions, except per share data) (Unaudited) Three Months Ended Nine Months Ended October 27, July 28, October 29, October 27, October 29, 2024 2024 2023 2024 2023 GAAP gross profit $ 26,156 $ 22,574 $ 13,400 $ 69,135 $ 27,510 GAAP gross margin 74.6 % 75.1 % 74.0 % 75.8 % 70.9 % Acquisition-related and other costs (A) 116 118 119 355 358 Stock-based compensation expense (B) 50 40 38 125 96 Other (C) - (3 ) 26 (4 ) 36 Non-GAAP gross profit $ 26,322 $ 22,729 $ 13,583 $ 69,611 $ 28,000 Non-GAAP gross margin 75.0 % 75.7 % 75.0 % 76.4 % 72.1 % GAAP operating expenses $ 4,287 $ 3,932 $ 2,983 $ 11,716 $ 8,152 Stock-based compensation expense (B) (1,202 ) (1,114 ) (941 ) (3,291 ) (2,459 ) Acquisition-related and other costs (A) (39 ) (26 ) (16 ) (86 ) (88 ) Other (C) - - - - 10 Non-GAAP operating expenses $ 3,046 $ 2,792 $ 2,026 $ 8,339 $ 5,615 GAAP operating income $ 21,869 $ 18,642 $ 10,417 $ 57,419 $ 19,358 Total impact of non-GAAP adjustments to operating income 1,407 1,295 1,140 3,853 3,027 Non-GAAP operating income $ 23,276 $ 19,937 $ 11,557 $ 61,272 $ 22,385 GAAP other income (expense), net $ 447 $ 572 $ 105 $ 1,390 $ 354 (Gains) losses from non-affiliated investments and publicly-held equity securities, net (37 ) (193 ) 69 (302 ) 23 Interest expense related to amortization of debt discount 1 1 1 3 3 Non-GAAP other income (expense), net $ 411 $ 380 $ 175 $ 1,091 $ 380 GAAP net income $ 19,309 $ 16,599 $ 9,243 $ 50,789 $ 17,475 Total pre-tax impact of non-GAAP adjustments 1,371 1,103 1,210 3,554 3,053 Income tax impact of non-GAAP adjustments (D) (670 ) (750 ) (433 ) (2,144 ) (1,055 ) Non-GAAP net income $ 20,010 $ 16,952 $ 10,020 $ 52,199 $ 19,473 Diluted net income per share (E) GAAP $ 0.78 $ 0.67 $ 0.37 $ 2.04 $ 0.70 Non-GAAP $ 0.81 $ 0.68 $ 0.40 $ 2.10 $ 0.78 Weighted average shares used in diluted net income per share computation (E) 24,774 24,848 24,940 24,837 24,940 GAAP net cash provided by operating activities $ 17,629 $ 14,489 $ 7,333 $ 47,460 $ 16,591 Purchases related to property and equipment and intangible assets (813 ) (977 ) (278 ) (2,159 ) (815 ) Principal payments on property and equipment and intangible assets (29 ) (29 ) (13 ) (97 ) (44 ) Free cash flow $ 16,787 $ 13,483 $ 7,042 $ 45,204 $ 15,732 (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 Nine Months Ended October 27, July 28, October 29, October 27, October 29, 2024 2024 2023 2024 2023 Cost of revenue $ 116 $ 118 $ 119 $ 355 $ 358 Research and development $ 23 $ 17 $ 12 $ 52 $ 37 Sales, general and administrative $ 16 $ 9 $ 4 $ 34 $ 51 (B) Stock-based compensation consists of the following: Three Months Ended Nine Months Ended October 27, July 28, October 29, October 27, October 29, 2024 2024 2023 2024 2023 Cost of revenue $ 50 $ 40 $ 38 $ 125 $ 96 Research and development $ 910 $ 832 $ 701 $ 2,469 $ 1,826 Sales, general and administrative $ 292 $ 282 $ 240 $ 822 $ 633 (C) Other consists of IP-related costs and 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). (E) Reflects a ten-for-one stock split on June 7, 2024 NVIDIA CORPORATION RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK Q4 FY2025 Outlook ($ in millions) GAAP gross margin 73.0 % Impact of stock-based compensation expense, acquisition-related costs, and other costs 0.5 % Non-GAAP gross margin 73.5 % GAAP operating expenses $ 4,750 Stock-based compensation expense, acquisition-related costs, and other costs (1,350 ) Non-GAAP operating expenses $ 3,400
