NVIDIA Announces Financial Results for First Quarter Fiscal 2025

 

**NVIDIA Announces Record Financial Results for Q1 Fiscal 2025**

NVIDIA has reported record-breaking financial results for the first quarter of fiscal year 2025, ending on April 28, 2024. Key highlights from the report include:

- **Total Revenue**: Achieved a record $26.0 billion, representing an 18% increase from the previous quarter and a remarkable 262% increase from the same period last year.

- **Data Center Revenue**: Reached a record $22.6 billion, up 23% from the previous quarter and an astonishing 427% increase from a year ago.

In addition to these financial milestones, NVIDIA has implemented several significant changes:

- **Forward Stock Split**: The company announced a ten-for-one forward stock split, effective June 7, 2024. This move aims to make stock ownership more accessible to both employees and investors. Shareholders of record as of the close of market on June 6, 2024, will receive nine additional shares for every share held.

- **Increased Dividend**: NVIDIA has raised its quarterly cash dividend by 150%, from $0.04 to $0.10 per share of common stock. Post-split, this translates to $0.01 per share, with the dividend payable on June 28, 2024, to shareholders of record as of June 11, 2024.

Financial performance metrics for the quarter include:

- **GAAP Earnings per Diluted Share**: $5.98, up 21% from the previous quarter and 629% from the prior year.

- **Non-GAAP Earnings per Diluted Share**: $6.12, up 19% from the previous quarter and 461% from the prior year.

Jensen Huang, founder and CEO of NVIDIA, highlighted the transformative impact of AI on various industries. "The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift traditional data centers to accelerated computing and build new AI factories," he said. "AI will bring significant productivity gains, enhance cost and energy efficiency, and open up new revenue opportunities."

NVIDIA’s data center growth was driven by surging demand for generative AI training and inference on the Hopper platform. This demand extended beyond cloud service providers to include consumer internet companies, enterprise, sovereign AI, automotive, and healthcare customers, creating multiple multibillion-dollar vertical markets.

Looking ahead, Huang emphasized the potential for continued growth with the Blackwell platform and Spectrum-X, which introduces large-scale AI capabilities to Ethernet-only data centers. Additionally, NVIDIA NIM, a new software offering, will deliver optimized generative AI solutions across various computing environments through a vast network of ecosystem partners.

Q1 Fiscal 2025 Summary

GAAP
($ in millions, except earnings per share)	Q1 FY25	Q4 FY24	Q1 FY24	Q/Q	Y/Y
Revenue	$26,044	$22,103	$7,192	Up 18%	Up 262%
Gross margin	78.4%	76.0%	64.6%	Up 2.4 pts	Up 13.8 pts
Operating expenses	$3,497	$3,176	$2,508	Up 10%	Up 39%
Operating income	$16,909	$13,615	$2,140	Up 24%	Up 690%
Net income	$14,881	$12,285	$2,043	Up 21%	Up 628%
Diluted earnings per share	$5.98	$4.93	$0.82	Up 21%	Up 629%

 

Non-GAAP
($ in millions, except earnings per share)	Q1 FY25	Q4 FY24	Q1 FY24	Q/Q	Y/Y
Revenue	$26,044	$22,103	$7,192	Up 18%	Up 262%
Gross margin	78.9%	76.7%	66.8%	Up 2.2 pts	Up 12.1 pts
Operating expenses	$2,501	$2,210	$1,750	Up 13%	Up 43%
Operating income	$18,059	$14,749	$3,052	Up 22%	Up 492%
Net income	$15,238	$12,839	$2,713	Up 19%	Up 462%
Diluted earnings per share	$6.12	$5.16	$1.09	Up 19%	Up 461%

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

• Revenue is expected to be $28.0 billion, plus or minus 2%.
• GAAP and non-GAAP gross margins are expected to be 74.8% and 75.5%, respectively, plus or minus 50 basis points. For the full year, gross margins are expected to be in the mid-70% range.
• GAAP and non-GAAP operating expenses are expected to be approximately $4.0 billion and $2.8 billion, respectively. Full-year operating expenses are expected to grow in the low-40% range.
• GAAP and non-GAAP other income and expense are expected to be an income of approximately $300 million, excluding gains and losses from non-affiliated investments.
• GAAP and non-GAAP tax rates are expected to be 17%, plus or minus 1%, excluding any discrete items.

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

Data Center

• First-quarter revenue was a record $22.6 billion, up 23% from the previous quarter and up 427% from a year ago.
• Unveiled the NVIDIA Blackwell platform to fuel a new era of AI computing at trillion-parameter scale and the Blackwell-powered DGX SuperPOD™ for generative AI supercomputing.
• Announced NVIDIA Quantum and NVIDIA Spectrum™ X800 series switches for InfiniBand and Ethernet, respectively, optimized for trillion-parameter GPU computing and AI infrastructure.
• Launched NVIDIA AI Enterprise 5.0 with NVIDIA NIM inference microservices to speed enterprise app development.
• Announced TSMC and Synopsys are going into production with NVIDIA cuLitho to accelerate computational lithography, the semiconductor manufacturing industry’s most compute-intensive workload.
• Announced that nine new supercomputers worldwide are using Grace Hopper Superchips to ignite new era of AI supercomputing.
• Unveiled that Grace Hopper Superchips power the top three machines on the Green500 list of the world’s most energy-efficient supercomputers.
• Expanded collaborations with AWS, Google Cloud, Microsoft and Oracle to advance generative AI innovation.
• Worked with Johnson & Johnson MedTech to bring AI capabilities to support surgery.

Gaming and AI PC

• First-quarter Gaming revenue was $2.6 billion, down 8% from the previous quarter and up 18% from a year ago. 
• Introduced new AI gaming technologies at GDC for NVIDIA ACE and Neural Graphics.
• Unveiled new AI performance optimizations and integrations for Windows to deliver maximum performance on NVIDIA GeForce RTX AI PCs and workstations.
• Announced more blockbuster games that will incorporate RTX technology, including Star Wars Outlaws and Black Myth Wukong.
• Added support for new models, including Google’s Gemma, for ChatRTX, which brings chatbot capabilities to RTX-powered Windows PCs and workstations.

Professional Visualization

• First-quarter revenue was $427 million, down 8% from the previous quarter and up 45% from a year ago.
• Introduced NVIDIA RTX™ 500 and 1000 professional Ada generation laptop GPUs for AI-enhanced workflows.
• Unveiled NVIDIA RTX A400 and A1000 GPUs for desktop workstations, based on the NVIDIA Ampere architecture, to bring AI to design and productivity workflows.
• Introduced NVIDIA Omniverse™ Cloud APIs to power industrial digital twin software tools, including an expanded Siemens partnership, and a new framework for the Apple Vision Pro.
• Announced the adoption of the new Earth-2 cloud APIs by The Weather Company and the Central Weather Administration of Taiwan for high-resolution global climate simulations.

Automotive and Robotics

• First-quarter Automotive revenue was $329 million, up 17% from the previous quarter and up 11% from a year ago.
• Announced BYD, XPENG, GAC’s AION Hyper, Nuro and others have chosen the next-generation NVIDIA DRIVE Thor™ platform, which now features Blackwell GPU architecture, to power their next-generation consumer and commercial electric vehicle fleets.
• Revealed U.S. and China electric vehicle makers Lucid and IM Motors are using the NVIDIA DRIVE Orin™ platform for vehicle models targeting the European market.
• Announced an array of partners are using NVIDIA generative AI technologies to transform in-vehicle experiences.
• Introduced the Project GR00T foundation model for humanoid robots and major Isaac robotics platform updates.

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 first 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 second quarter of 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 income from operations, 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, 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.

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