On November 21, 2023, NVIDIA Corp (NVDA, Financial) released its 8-K filing, announcing financial results for the third quarter of fiscal year 2024. The company reported a record-breaking revenue of $18.12 billion, which represents a staggering 206% increase compared to the same period last year and a 34% rise from the second quarter of fiscal 2024. The growth was primarily fueled by the company's Data Center segment, which alone contributed $14.51 billion in revenue, up 279% year-over-year.
Financial Performance Overview
NVIDIA's gross margin improved significantly, reaching 74.0% on a GAAP basis and 75.0% on a non-GAAP basis. This marks an increase of 20.4 and 18.9 percentage points respectively compared to the third quarter of the previous fiscal year. Operating income also saw a monumental rise, with GAAP operating income at $10.42 billion, up from $601 million in Q3 FY23, and non-GAAP operating income at $11.56 billion.
Net income for the quarter stood at $9.24 billion on a GAAP basis, which is a 1,259% increase year-over-year. On a non-GAAP basis, net income reached $10.02 billion, up 588% from the previous year. Diluted earnings per share (EPS) followed suit, with GAAP EPS at $3.71, up from $0.27, and non-GAAP EPS at $4.02.
Balance Sheet and Cash Flow Highlights
The balance sheet of NVIDIA Corp (NVDA, Financial) remains robust, with cash, cash equivalents, and marketable securities totaling $18.28 billion as of October 29, 2023. The company's total assets increased to $54.15 billion, up from $41.18 billion at the end of the previous fiscal year. NVIDIA's liquidity position is further strengthened by its operating cash flow, which provided $7.33 billion during the quarter.
Operating expenses were managed effectively, with a 12% increase on a GAAP basis and a 10% increase on a non-GAAP basis compared to the previous quarter. This controlled growth in expenses, coupled with the substantial revenue increase, underscores NVIDIA's operational efficiency and ability to scale profitably.
Forward-Looking Outlook
Looking ahead to the fourth quarter of fiscal 2024, NVIDIA expects revenue to be approximately $20.00 billion, plus or minus 2%. The company also anticipates maintaining strong gross margins, with GAAP and non-GAAP gross margins expected to be around 74.5% and 75.5%, respectively.
Strategic Highlights and Commentary
Jensen Huang, founder and CEO of NVIDIA, commented on the company's performance, stating:
“Our strong growth reflects the broad industry platform transition from general-purpose to accelerated computing and generative AI. The era of generative AI is taking off.”
He also highlighted the role of NVIDIA's GPUs, CPUs, networking, AI foundry services, and NVIDIA AI Enterprise software as growth engines. The company's strategic focus on AI and accelerated computing is evident in its product launches and partnerships, which are expected to continue driving growth in the coming quarters.
Colette Kress, NVIDIA’s executive vice president and chief financial officer, provided additional insights into the company's financial health and future prospects, which can be found in the full commentary available on NVIDIA's investor relations website.
In summary, NVIDIA Corp (NVDA, Financial) has delivered a remarkable financial performance in the third quarter of fiscal 2024, with record revenues and earnings driven by strong demand in its Data Center business. The company's outlook remains positive, with expectations of continued revenue growth and robust gross margins. These results and projections may appeal to value investors looking for companies with strong growth trajectories and solid financial foundations.
Explore the complete 8-K earnings release (here) from NVIDIA Corp for further details.
