NVIDIA(NVDA) - 2025 Q1 - Quarterly Report

Revenue and Growth - Revenue for the three months ended April 28, 2024, was $26.044 billion, an 18% increase quarter-over-quarter and a 262% increase year-over-year[138] - Total revenue for the quarter was $26.044 billion, a 262% increase from $7.192 billion in the same period last year[154][177] - Revenue for the first quarter of fiscal year 2025 was $26.0 billion, up 262% year-over-year and 18% sequentially[199] - Data Center revenue increased by 427% year-over-year to $22.563 billion, driven by higher shipments of the NVIDIA Hopper GPU computing platform[154][171] - Data Center revenue reached $22.6 billion, up 427% year-over-year and 23% sequentially, with inference driving approximately 40% of revenue over the trailing 4 quarters[203] - Gaming revenue grew to $2.647 billion, up from $2.240 billion in the previous year[154] - Gaming revenue was $2.6 billion, up 18% year-over-year but down 8% sequentially due to seasonally lower GPU sales for laptops[204] - Professional Visualization revenue increased by 45% year-over-year to $427 million, primarily due to higher sell-in to partners[154][172] - Automotive revenue rose to $329 million, up from $296 million in the previous year[154] - Automotive revenue grew to $329 million, up 11% year-over-year and 17% sequentially, driven by self-driving platforms and AI Cockpit solutions[205] - Revenue from sales outside the United States accounted for 48% of total revenue for the first quarter of fiscal year 2025[180] Profitability and Margins - Gross margin for the quarter was 78.4%, up 2.4 percentage points quarter-over-quarter and 13.8 percentage points year-over-year[138] - Gross margin improved significantly to 78.4%, up from 64.6% a year ago, driven by strong Data Center revenue growth[177] - Gross margin increased to 78.4% from 64.6% year-over-year, primarily due to strong Data Center revenue growth[214] - Operating income for the quarter was $16.909 billion, a 24% increase quarter-over-quarter and a 690% increase year-over-year[138] - Net income for the quarter was $14.881 billion, a 21% increase quarter-over-quarter and a 628% increase year-over-year[138] Segment Performance - The Compute & Networking segment generated $22.675 billion in revenue, while the Graphics segment generated $3.369 billion in revenue for the quarter[151] - Data Center revenue in China declined significantly following new export control restrictions in October 2023, despite ramping new products designed specifically for the Chinese market[195] Shareholder Returns and Stock Activity - The company repurchased 9.9 million shares of common stock for $8.0 billion during the first quarter of fiscal year 2025[146] - The company repurchased 9.9 million shares for $8.0 billion during the quarter and is authorized to repurchase up to $14.5 billion of additional shares[235] - The company paid $98 million in cash dividends to shareholders during the first quarter of fiscal year 2025[147] - The company announced a ten-for-one forward stock split, with the record date set for June 6, 2024, and distribution on June 7, 2024[156] Financial Commitments and Liabilities - The company has purchase commitments totaling $29.373 billion, with $19.306 billion due in fiscal year 2025 (excluding the first quarter)[140] - The estimated product warranty liabilities were $532 million as of April 28, 2024, up from $306 million as of January 28, 2024[140] - The company's long-term debt obligations include $1.25 billion due within one year, $2.25 billion due in 1-5 years, $2.75 billion due in 5-10 years, and $3.5 billion due in more than 10 years[315] - The company's net carrying amount of debt is $9.71 billion, with $8.46 billion classified as long-term[315] Operating Expenses and Costs - Research and development expenses increased by 45% to $2.720 billion, representing 10.4% of net revenue[184] - Operating expenses increased 39% year-over-year and 10% sequentially, driven by compensation and benefits reflecting employee growth[202] - The company has experienced extended lead times of more than 12 months for certain supplies and has paid premiums and provided deposits to secure future supply and capacity, increasing product costs[239] - The company has increased prices for certain products due to supplier price hikes and may continue to do so in the future[242] - The company has written down inventory, incurred cancellation penalties, and recorded impairments due to overestimation of future demand[242] - The company's purchase obligations and prepaids have grown and are expected to continue growing, increasing risks to gross margins and financial results[242] Liquidity and Cash Position - Cash, cash equivalents, and marketable securities totaled $31.4 billion as of April 28, 2024, providing sufficient liquidity for at least the next twelve months[220] Customer Concentration - Sales to two direct customers, Customer A and Customer B, accounted for 13% and 11% of total revenue, respectively, both in the Compute & Networking segment[181] - Customer A and Customer B accounted for 13% and 11% of total revenue, respectively, in Q1 FY2025, both within the Compute & Networking segment[245] - Two indirect customers each represented 10% or more of total revenue in Q1 FY2025, with one purchasing primarily through direct Customer B[245] Regulatory and Market Challenges - The US government's new export licensing requirements have restricted shipments of certain products, including A100, A800, H100, H800, and L40S, to China and other countries[135] - The company expects supply constraints for its Blackwell GPU architecture to continue into next year, with initial demand well ahead of projected supply for this fiscal year[192] Strategic Initiatives - The company has begun a broader and faster Data Center product launch cadence to address growing AI opportunities[241] - The company's ERP system upgrade, initiated in FY2022, is ongoing in phases and continues to be evaluated for impacts on internal control over financial reporting[313]