Preliminary second quarter revenue of
Shortfall versus outlook primarily driven by weaker Gaming revenue
Management to discuss financial results and outlook on
NVIDIA (NASDAQ: NVDA) today announced selected preliminary financial results for the second quarter ended
Second quarter revenue is expected to be approximately
The shortfall relative to the May revenue outlook of
Data Center revenue, though a record, was somewhat short of the company's expectations, as it was impacted by supply chain disruptions.
Second quarter results are expected to include approximately
'Our gaming product sell-through projections declined significantly as the quarter progressed,' said
'NVIDIA has excellent products and position driving large and growing markets. As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI,' he said.
'The significant charges incurred in the quarter reflect previous long-term purchase commitments we made during a time of severe component shortages and our current expectation of ongoing macroeconomic uncertainty,' said
'We believe our long-term gross margin profile is intact. We have slowed operating expense growth, balancing investments for long-term growth while managing near-term profitability. We plan to continue stock buybacks as we foresee strong cash generation and future growth,' she said.
Q2 FY23 Outlook1 Q2 FY23 Preliminary Results
Revenue$8.10 billion , plus or minus 2%$6.70 billion
Gross margin - GAAP
Gross margin - non-GAAP 65.1%, plus or minus 50 bps
67.1%, plus or minus 50 bps 43.7%, plus or minus 50 bps
46.1%, plus or minus 50 bps
Operating expenses - GAAP
Operating expenses - non-GAAP$2.46 billion
$1.75 billion $2.42 billion
GAAP and non-GAAP other income and expense$40 million expense$24 million and$16 million expense, respectively
GAAP and non-GAAP tax rate 12.5%, plus or minus 1%, excluding discrete items -35% GAAP (benefit) and 2% non-GAAP, including discrete items
1 Announced in
Revenue by Market Platform
($ in billions) Q2 FY23
Preliminary Results Q/Q Y/Y
Gaming$2.04 Down 44% Down 33%
Data Center 3.81 Up 1% Up 61%
Professional Visualization 0.50 Down 20% Down 4%
Automotive 0.22 Up 59% Up 45%
OEM and Other 0.13 Down 12% Down 66%
Total$6.70 Down 19% Up 3%
The preliminary results for the second quarter ended
Conference Call and Webcast Information
NVIDIA will host a conference call on
The call will be webcast live (in listen-only mode) on investor.nvidia.com. The company's prepared remarks will be followed by a question-and-answer session, which will be limited to questions from financial analysts and institutional investors.
Ahead of the call, NVIDIA will provide written commentary on its second-quarter results from its CFO,
The webcast will be recorded and available for replay until the company's conference call to discuss financial results for its third quarter of fiscal year 2023.
Non-GAAP Measures
In addition to
These non-GAAP financial measures exclude stock-based compensation expense, acquisition-related and other costs, gains or losses from non-affiliated investments, interest expense related to amortization of debt discount and the associated tax impact of these items, where applicable.
A preliminary updated reconciliation of GAAP to non-GAAP gross margin, operating expenses, other income and expenses and tax rate is as follows:
Reconciliation of GAAP to non-GAAP Financial Measures
($ in millions) Q2 FY23
Preliminary Results
GAAP gross margin 43.7%
Stock-based compensation expense, acquisition-related costs, and other costs 2.4
Non-GAAP gross margin 46.1%
GAAP operating expenses$2,416
Stock-based compensation expense and acquisition-related costs (667)
Non-GAAP operating expenses$1,749
GAAP other expense, net$24
Losses from non-affiliated investments and other costs (8)
Non-GAAP other expense, net$16
GAAP tax rate (benefit) (35%)
Tax impact of non-GAAP adjustments 37
Non-GAAP tax rate 2%
NVIDIA believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the company's 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.
Media Contacts
Investor Relations
sjankowski@nvidia.com
Corporate Communications
rsherbin@nvidia.com
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