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

According to the news on the morning of November 17, Beijing time, Nvidia today announced the company's financial results for the third quarter of fiscal year 2023. According to the report, Nvidia's revenue in the third quarter was $5.931 billion, down 17% from $7.103 billion in the same period last year and 12% from $6.704 billion in the previous quarter. Net profit was $680 million, down 72% from $2.464 billion in the same period last year and up 4% from $656 million in the previous quarter Adjusted net profit, not in accordance with GAAP, was $1.456 billion, down 51% from $2.973 billion a year earlier and up 13% from $1.292 billion in the previous quarter.

Nvidia's adjusted earnings per share in the third quarter failed to meet Wall Street analysts' expectations, but revenue beat expectations. At the same time, Nvidia's fourth-quarter revenue outlook was slightly lower than analysts' expectations. Nvidia shares rose nearly 2 per cent in after-hours trading after the announcement.

Main results of the third quarter: Nvidia's net profit for the quarter ended October 30, 2022 was $680 million, down 72% from $2.464 billion a year earlier and up 4% from $656 million in the previous quarter; diluted earnings per share were 27%, down 72% from $0.97 a year earlier and up 4% from $0.26 in the previous quarter.

Excluding some one-time items (not in accordance with GAAP), Nvidia's adjusted net profit for the third quarter was $1.456 billion, down 51% from $2.973 billion in the same period last year and up 13% from $1.292 billion in the previous quarter. Adjusted diluted earnings per share of $0.58, down 50% from $1.17 a year earlier and up 14% from $0.51 in the previous quarter, fell short of analysts' expectations. On average, 31 analysts had expected Nvidia to earn 69 cents a share in the third quarter, according to data provided by Yahoo Finance.

Nvidia's third-quarter revenue was $5.931 billion, down 17% from $7.103 billion a year earlier and 12% from $6.704 billion in the previous quarter, which beat analysts' expectations. On average, 30 analysts had expected Nvidia's revenue to reach $5.77 billion in the third quarter, according to Yahoo Finance.

By business category, Nvidia's data center business had revenue of $3.83 billion in the third quarter, up 31 per cent from a year earlier and 1 per cent from the previous quarter. Revenue from Nvidia's gaming business was $1.57 billion in the third quarter, down 51% from a year earlier and 23% from the previous quarter. Revenue from Nvidia's professional visualization business was $200 million in the third quarter, down 65 per cent from a year earlier and 60 per cent from the previous quarter. Revenue from Nvidia's motor vehicle business was $251 million in the third quarter, up 86% from a year earlier and 14% from the previous quarter.

Nvidia's third-quarter gross profit was $3.177 billion, compared with $4.631 billion a year earlier and $2.915 billion in the previous quarter. Excluding some one-time items (not in accordance with GAAP), Nvidia's adjusted gross profit for the third quarter was $3.329 billion, compared with $4.761 billion in the same period a year earlier and $3.074 billion in the previous quarter.

Nvidia's third-quarter gross margin was 53.6%, down 11.6 percentage points from 65.2% a year earlier and up 10.1 percentage points from 43.5% in the previous quarter. Not in accordance with US GAAP, Nvidia's adjusted gross margin for the third quarter was 56.1%, down 10.9 percentage points from 67.0% in the same period last year and up 10.2 percentage points from 45.9% in the previous quarter.

Nvidia's operating expenses were $2.576 billion in the third quarter, up 31 per cent from $1.96 billion a year earlier and 7 per cent from $2.416 billion in the previous quarter. Of this total, R & D expenditure was $1.945 billion, compared with 14.03 in the same period last year, and sales, general and administrative expenses were $631 million, compared with $557 million in the same period last year. Without GAAP, Nvidia's adjusted operating expenses for the third quarter were $1.793 billion, up 30 per cent from $1.375 billion in the same period last year and 3 per cent from $1.749 billion in the previous quarter.

Nvidia's third-quarter operating profit was $601 million, down 77 per cent from $2.671 billion a year earlier and up 20 per cent from $499 million in the previous quarter. Without GAAP, Nvidia's adjusted operating profit for the third quarter was $1.536 billion, down 55% from $3.386 billion a year earlier and up 16% from $1.325 billion in the previous quarter.

Other financial information: in the third quarter, Nvidia returned $3.75 billion in cash to shareholders in the form of share buybacks and cash dividends, bringing the total cash return in the first three quarters to $9.29 billion. Under the authorized share repurchase program, the remaining repurchase amount available to Nvidia is US $8.28 billion as of October 30, 2023.

Nvidia will pay the next quarterly cash dividend of $0.04 per share to all shareholders of record as of December 1, 2022 on December 22, 2022.

Performance outlook: Nvidia expects revenue of $6 billion, up or down 2%, in the fourth quarter of fiscal 2023, which falls short of analysts' expectations. On average, 30 analysts had expected Nvidia's fourth-quarter revenue to reach $6.09 billion, according to Yahoo Finance.

Nvidia also predicts that in the fourth quarter of fiscal year 2023, the company's gross profit margin under and without GAAP is expected to reach 63.2% and 66.0%, respectively, fluctuating by 50 basis points; operating expenses in accordance with and without GAAP are expected to reach about $2.56 billion and $1.78 billion, respectively; and other income according to and not in accordance with GAAP is expected to reach about $40 million. Tax rates in accordance with and without GAAP are expected to be 9.0%, fluctuating by 1%.

Share price movements: on the day, Nvidia shares closed down $7.56, or 4.54%, at $159.10 in regular Nasdaq trading. Nvidia shares rose $3.10, or 1.95 per cent, to $162.20 in after-hours trading as of 04:59 EDT on the 16th (05:59 Beijing time on the 17th). Over the past 52 weeks, Nvidia has priced as high as $346.47 and as low as $108.13.

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