NVIDIA today announced its first quarter results for fiscal year 2023. The report shows that NVIDIA's revenue in the first fiscal quarter was US $8.288 billion, an increase of 46% compared with us $5.661 billion in the same period last year and an increase of 8% compared with us $7.643 billion in the previous fiscal quarter; The net profit was US $1.618 billion, down 15% from US $1.912 billion in the same period last year and 46% from US $3.003 billion in the previous fiscal quarter;
The adjusted net profit not in accordance with us gaap was US $3.443 billion, an increase of 49% compared with us $2.313 billion in the same period last year and 3% compared with us $3.35 billion in the previous fiscal quarter.
NVIDIA's adjusted earnings per share and revenue in the first quarter exceeded the expectations of Wall Street analysts, but its outlook for revenue in the second quarter of fiscal 2023 failed to meet the expectations, resulting in a sharp decline in its after hours share price of nearly 8%.
Key results in the first quarter:
In the fiscal quarter ended May 1, NVIDIA's net profit was $1.618 billion, down 15% from $1.912 billion in the same period last year and 46% from $303 million in the previous fiscal quarter; Diluted earnings per share was $0.64, down 16% from $0.76 in the same period last year and 46% from $1.18 in the previous quarter.
Excluding some one-time items (not in accordance with US GAAP), NVIDIA's adjusted net profit in the first quarter was US $3.443 billion, an increase of 49% compared with us $2.313 billion in the same period of last year and 3% compared with us $3.35 billion in the previous quarter; The adjusted diluted earnings per share was $1.36, up 49% from $0.91 in the same period last year and 3% from $1.32 in the previous fiscal quarter, which exceeded analysts' expectations. According to the data provided by Yahoo Finance Channel, 31 analysts had expected NVIDIA's first quarter earnings per share to reach $1.29 on average.
NVIDIA's revenue in the first quarter was $8.288 billion, up 46% from $5.661 billion in the same period last year and 8% from $7.643 billion in the previous quarter, which also exceeded analysts' expectations. According to the data provided by Yahoo Finance Channel, 32 analysts had expected NVIDIA's first quarter revenue to reach $8.12 billion on average.
Divided by business departments, NVIDIA's game business revenue in the first fiscal quarter was $3.62 billion, a new record in the company's history, an increase of 31% compared with the same period of last year and 6% compared with the previous fiscal quarter; The revenue of data center business was US $3.75 billion, which also set a new record in the history of the company, with an increase of 83% compared with the same period of last year and 15% compared with the previous fiscal quarter; The revenue of professional visualization business was US $622 million, an increase of 67% compared with the same period of last year, but a decrease of 3% compared with the previous fiscal quarter; The revenue of automobile business was US $138 million, a decrease of 10% compared with the same period of last year and an increase of 10% compared with the previous fiscal quarter.
NVIDIA's gross profit in the first quarter was $5.431 billion, compared with $3.629 billion in the same period last year, compared with $4.999 billion in the previous quarter. Excluding some one-time items (not in accordance with U.S. GAAP), NVIDIA's adjusted gross profit in the first quarter was $5.563 billion, compared with $3.746 billion in the same period last year, compared with $5.124 billion in the previous quarter.
NVIDIA's gross profit margin in the first quarter was 65.5%, up 140 basis points from 64.1% in the same period last year and 10 basis points from 65.4% in the previous quarter. Excluding some one-time items (not in accordance with US GAAP), NVIDIA's adjusted gross profit margin in the first quarter was 67.1%, up 90 basis points from 66.2% in the same period last year and 10 basis points from 67.0% in the previous quarter.
NVIDIA's operating expenses in the first quarter were $3.563 billion, up 113% from $1.673 billion in the same period last year and 76% from $2.029 billion in the previous quarter. Among them, R & D expenditure was US $1.618 billion, compared with us $1.153 billion in the same period last year; Sales, general and administrative expenses were $592 million, compared with $520 million in the same period last year; The M & a termination fee was US $1.353 billion, compared with the same period last year. Excluding some one-time items (not in accordance with U.S. GAAP), NVIDIA's adjusted operating expenses in the first quarter were $1.608 billion, an increase of 35% compared with $1.189 billion in the same period last year and 11% compared with $1.447 billion in the previous quarter.
NVIDIA's operating profit in the first quarter was $1.868 billion, down 4% from $1.956 billion in the same period last year and 37% from $2.970 billion in the previous quarter. Excluding some one-time items (not in accordance with U.S. GAAP), NVIDIA's adjusted operating profit in the first quarter was $3.955 billion, an increase of 55% compared with $2.557 billion in the same period last year and an increase of 8% compared with $3.677 billion in the previous quarter.
Other financial information:
In the first quarter of fiscal year 2023, NVIDIA returned $2.1 billion in cash to shareholders in the form of share repurchases and dividends. On July 1, 2022, NVIDIA will pay a quarterly cash dividend of $0.04 per share to all registered shareholders as of June 9, 2022.
On May 23, 2022, the board of directors of NVIDIA expanded the scale of the company's stock repurchase program to repurchase up to $15 billion of ordinary shares, and extended the duration of the stock repurchase program until December 2023.
Performance Outlook:
NVIDIA predicts that the company's revenue in the second quarter of fiscal year 2023 will reach US $8.1 billion, with a fluctuation of 2%, including a deduction of about US $500million related to the COVID-19 in Russia and China. This performance outlook fails to meet analysts' previous expectations. According to the data provided by Yahoo Finance Channel, 31 analysts had expected NVIDIA's second quarter revenue to reach $8.45 billion on average.
NVIDIA also expects that the gross profit margin of the company in accordance with and not in accordance with U.S. GAAP is expected to reach 65.1% and 67.1% respectively in the second quarter of fiscal year 2023, floating up and down by 50 basis points; The operating expenses in accordance with and not in accordance with us gaap are expected to reach US $2.46 billion and US $1.75 billion respectively; Other expenditures in accordance with and not in accordance with us gaap are expected to be about US $40 million, excluding profits and losses from investment in non affiliated enterprises; The tax rate in accordance with and not in accordance with US GAAP is expected to be 12.5%, floating up and down by 1%.
Changes in share price:
On the same day, NVIDIA shares closed up $8.21, or 5.08%, at $169.75 in regular trading on NASDAQ. In the subsequent after hours trading as of 5:23 p.m. Eastern time on the 25th (5:23 a.m. Beijing time on the 26th), NVIDIA's share price fell $13.06, or 7.69%, to $156.69. Over the past 52 weeks, NVIDIA's highest price was $346.47 and its lowest price was $154.60.