NVIDIA ( $NVDA ) Earnings Breakdown

NVIDIA ( $NVDA ) Earnings Breakdown

Highlights
-Earnings reported 6.12 vs estimated 5.60 (+9.30%)
-Revenue reported 26.04b vs estimated 24.59b (+5.90%)
-Record Quarterly Revenue: NVIDIA reported $26.0 billion in revenue for Q1 FY25, up 18% from Q4 and up 262% from a year ago.
-Data Center Growth: Data Center revenue hit $22.6 billion, up 23% from Q4 and 427% year-over-year.
-Stock Split: A ten-for-one forward stock split will take effect on June 7, 2024.
-Dividend Increase: Quarterly cash dividend raised by 150% to $0.01 per share on a post-split basis.
-Strong Earnings: GAAP earnings per diluted share were $5.98, up 21% from Q4 and 629% year-over-year. Non-GAAP earnings were $6.12, up 19% from Q4 and 461% year-over-year.

Good Parts
-Revenue Growth: Significant increase in revenue, up 18% from the previous quarter and 262% from a year ago.
-Gross Margin Improvement: GAAP gross margin increased to 78.4% from 76.0% in Q4 and 64.6% a year ago.
-Operating Income Surge: GAAP operating income rose to $16.9 billion, up 24% from Q4 and 690% year-over-year.
-Net Income: GAAP net income was $14.9 billion, a substantial increase of 628% year-over-year.
-Increased Assets: Total assets grew to $77.1 billion from $65.7 billion in the previous quarter.
-Strong Cash Position: Cash, cash equivalents, and marketable securities were $31.4 billion.
-Deferred Income Tax Assets: Significant increase to $7.8 billion from $6.1 billion.
-Operating Cash Flow: Generated $15.3 billion in operating cash flow, a huge increase from $2.9 billion a year ago.
-Free Cash Flow: Free cash flow was $14.9 billion, up from $2.6 billion a year ago.

Bad Parts
-Operating Expenses: GAAP operating expenses increased to $3.5 billion, up 39% year-over-year.
-R&D and SG&A Costs: Research and development expenses and sales, general, and administrative expenses both increased significantly.
-Current Liabilities: Increased to $15.2 billion from $10.6 billion in the previous quarter.
-Long-term Debt: Remained high at $8.5 billion.
-Investing Activities: Net cash used in investing activities was $5.7 billion, higher than $841 million a year ago, primarily due to increased purchases of marketable securities.
-Financing Activities: Net cash used in financing activities was $9.3 billion, compared to $380 million a year ago, largely due to stock repurchases and taxes on restricted stock units.

Grades
Income Statement: A-
-Good Parts: Exceptional revenue growth, gross margin improvement, significant increase in operating and net income.
-Bad Parts: Rising operating expenses.
-Notes: Strong performance in key segments like Data Center, but careful monitoring of expense growth is needed.

Balance Sheet: B+
-Good Parts: Strong asset base, substantial cash reserves.
-Bad Parts: Increase in current liabilities and sustained high long-term debt.
-Notes: Overall strong balance sheet, but increasing liabilities could pose risks.

Cash Flow Statement: A
Good Parts: Robust operating cash flow, significant free cash flow.
-Bad Parts: High net cash used in investing and financing activities.
-Notes: Excellent cash flow generation, but high outflows for investments and financing need attention.

Summary
NVIDIA had an exceptional quarter, highlighted by record revenue and significant growth in its Data Center segment. The company's gross margin and net income saw impressive improvements, reflecting efficient operations and strong market demand, especially in AI-related fields. The announcement of a ten-for-one stock split and a 150% increase in the quarterly dividend indicates strong confidence in future growth and a commitment to returning value to shareholders