Shulou(Shulou.com)11/24 Report--

Beijing time August 25 news, Nvidia today announced the company's financial results for the second quarter of fiscal year 2023. According to the report, Nvidia's revenue in the second quarter was $6.704 billion, up 3% from $6.507 billion in the same period last year and down 19% from $8.288 billion in the previous quarter. Net profit was $656 million, down 72% from $2.374 billion in the same period last year and 59% from $1.618 billion in the previous quarter Adjusted net profit, not in accordance with US GAAP, was $1.292 billion, down 51 per cent from $2.623 billion a year earlier and 63 per cent from $3.443 billion in the previous quarter.

Nvidia's second-quarter adjusted earnings and revenue fell short of Wall Street analysts' expectations and its third-quarter revenue outlook fell below expectations, sending its shares down nearly 4 per cent in after-hours trading.

Main results of the second quarter: Nvidia's net profit for the quarter ended July 31 was $656 million, down 72% from $2.374 billion a year earlier and 59% from $1.618 billion in the previous quarter; diluted earnings per share were $0.26, down 72% from $0.94 a year earlier and 59% from $0.64 in the previous quarter.

Excluding certain one-time items (not in accordance with GAAP), Nvidia's adjusted net profit for the second quarter was $1.292 billion, down 51% from $2.623 billion in the same period last year and 63% from $3.443 billion in the previous quarter. Diluted earnings per share were $0.51, down 51% from $1.04 a year earlier and down 63% from $1.36 in the previous quarter, which fell short of analysts' expectations. Analysts had on average expected Nvidia to earn $1.26 a share in the second quarter, according to Refinitiv, a provider of financial market data and infrastructure.

Nvidia's second-quarter revenue was $6.704 billion, up 3% from $6.507 billion a year earlier, down 19% from $8.288 billion in the previous quarter, and falling short of analysts' expectations. On average, 30 analysts expect Nvidia's second-quarter revenue to reach $8.1 billion, according to data provided by Yahoo Finance.

By business category, Nvidia's data center business had revenue of $3.81 billion in the second quarter, up 61 per cent from a year earlier and 1 per cent from the previous quarter. Revenue from Nvidia's gaming business was $2.04 billion in the second quarter, down 33 per cent from a year earlier and 44 per cent from the previous quarter. Revenue from Nvidia's professional visualization business was $496 million in the second quarter, down 4 per cent from a year earlier and 20 per cent from the previous quarter. Revenue from Nvidia's motor vehicle business was $220 million in the second quarter, up 45 per cent from a year earlier and 59 per cent from the previous quarter.

Nvidia's second-quarter gross profit was $2.915 billion, compared with $4.215 billion a year earlier and $5.431 billion in the previous quarter. Excluding some one-time items (not in accordance with GAAP), Nvidia's adjusted gross profit for the second quarter was $3.074 billion, compared with $4.337 billion a year earlier and $5.563 billion in the previous quarter.

Nvidia's second-quarter gross margin was 43.5%, down 21.3 percentage points from 64.8% a year earlier and 22.0 percentage points from 65.5% in the previous quarter. Excluding some one-time items (not in accordance with GAAP), Nvidia's adjusted gross margin for the second quarter was 45.9%, down 20.8 percentage points from 66.7% in the same period last year and 21.2 percentage points from 67.1% in the previous quarter.

Nvidia's operating expenses were $2.416 billion in the second quarter, up 36 per cent from $1.771 billion a year earlier and down 32 per cent from $3.563 billion in the previous quarter. Of this total, R & D expenditure was $1.824 billion, compared with $1.245 billion in the same period last year, and sales, general and administrative expenses were $592 million, compared with $526 million in the same period last year. Excluding some one-time items (not in accordance with GAAP), Nvidia's adjusted operating expenses were $1.749 billion in the second quarter, up 38 per cent from $1.266 billion a year earlier and 9 per cent from $1.608 billion in the previous quarter.

Nvidia's second-quarter operating profit was $499 million, down 80 per cent from $2.444 billion a year earlier and 73 per cent from $1.868 billion in the previous quarter. Excluding some one-time items (not in accordance with US GAAP), Nvidia's second-quarter investor operating profit was $1.325 billion, down 57 per cent from $3.071 billion a year earlier and 66 per cent from $3.955 billion in the previous quarter.

Other financial information: in the second quarter, Nvidia returned $3.44 billion in cash to shareholders in the form of share buybacks and cash dividends, compared with $2.1 billion in the first quarter. Under the authorized share repurchase program, the remaining repurchase amount available to Nvidia is US $11.93 billion as of December 2023. Nvidia said it planned to continue to buy back shares in the current fiscal year.

Nvidia will pay the next quarterly cash dividend of $0.04 per share to all shareholders of record as of September 8, 2022 on September 29, 2022.

Performance outlook: Nvidia expects revenue of $5.9 billion, up or down 2%, in the third quarter of fiscal 2023, which falls short of analysts' expectations. On average, 27 analysts expect Nvidia's third-quarter revenue to reach $6.95 billion, according to data provided by Yahoo Finance.

Nvidia said revenue from gaming and professional visualization was expected to decline month-on-month as original equipment manufacturers (OEM) and channel partners reduce inventory levels to meet current demand levels and prepare for the next generation of Nvidia products. But the company also expects the decline to be partially offset by month-on-month growth in data centres and motor vehicles.

Nvidia also predicts that in the third quarter of fiscal 2023, the company's gross profit margin in accordance with and without GAAP is expected to reach 62.4% and 65.0%, respectively, fluctuating by 50 basis points; operating expenses in accordance with and not in accordance with GAAP are expected to reach about $2.59 billion and $1.82 billion, respectively. Other expenses under and without GAAP are expected to amount to about $10 million, excluding equity gains and losses; tax rates under and without GAAP are expected to be 9.5 per cent, fluctuating by 1 per cent.

Share price movements: on the day, Nvidia shares closed up 41 cents, or 0.24 percent, at $172.22 in regular Nasdaq trading. In after-hours trading as of 05:24 est on the 24th (05:24 Beijing time on the 25th), Nvidia shares fell $6.59, or 3.83 per cent, to $165.63. Over the past 52 weeks, Nvidia has priced as high as $346.47 and as low as $140.55.

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