Investor Presentation Q1 Fy2022

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Investor Presentation Q1 Fy2022 INVESTOR PRESENTATION Q1 FY2022 June 1, 2021 RTX reinventing computer graphics; our expectations on supply; strengthening demand for Data Center in coming quarters; continuing to gain traction in inference; the fastest growing areas of AI; the impact of offices reopening; NVIDIA helping to revolutionize the transportation industry; our partnerships and customers; our financial outlook, our expected tax rates and our expected capital expenditures for the second quarter of fiscal 2022; our growth and growth drivers; our opportunities in existing and new markets; the TAM for our products; and our design win pipeline are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and any other forward-looking statements that go beyond historical facts that are made in this presentation are subject to risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners' products; design, manufacturing or software defects; changes in consumer preferences and demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems and other factors. NVIDIA has based these forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, and you should not rely upon the forward-looking statements as predictions of future events. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although NVIDIA believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. For a complete discussion of factors that could materially affect our financial results and operations, please refer to the reports we file from time to time with the SEC, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports we file with the SEC are posted on our website and are available from NVIDIA without charge. NVIDIA uses certain non-GAAP measures in this presentation including non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted earnings per share, and free cash flow. NVIDIA believes the presentation of its non-GAAP financial measures enhances investors' overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies. Further information relevant to the interpretation of non- GAAP financial measures, and reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, may be found in the slide titled “Reconciliation of Non-GAAP to GAAP Financial Measures”. 2 CONTENT Q1 FY22 Earnings Summary Key Announcements This Quarter NVIDIA Overview Financials Reconciliation of Non-GAAP to GAAP Financial Measures 3 Q1 FY22 EARNINGS SUMMARY 4 HIGHLIGHTS Record total, Gaming, Data Center and Professional Visualization revenue Total revenue up 84% y/y to $5.66B, ahead of our original outlook of $5.30B +/- two percent Gaming up 106% y/y to a record $2.76B; Data Center up 79% y/y to a record $2.05B Gaming driven by strong demand for GeForce RTX 30 Series GPUs Record desktop and laptop GPU sales, with the largest-ever wave of GeForce-powered laptops RTX has reinvented computer graphics; vast majority of installed base has yet to upgrade to RTX GPUs Crypto mining likely contributed to demand; expect to limit going forward with “Low Hash Rate” GPUs Strong growth in Data Center across compute and networking products Growth was led by hyperscale customers, with strengthening demand for internal and cloud workloads Vertical Industries also grew both q/q and y/y, led by consumer internet companies Gaining traction in AI inference, with record combined shipments of T4, A10 and A30 GPUs 5 Q1 FY2022 FINANCIAL SUMMARY 6,000 80.0% GAAP Non-GAAP $5,661 78.0% 5,500 Q1 FY22 Y/Y Q/Q Q1 FY22 Y/Y Q/Q $5,003 76.0% 5,000 $4,726 74.0% Revenue $5,661 +84% +13% $5,661 +84% +13% 4,500 $3,866 72.0% 4,000 Gross Margin 64.1% -100 bps +100 bps 66.2% +40 bps +70 bps 70.0% 3,500 $3,080 68.0% 66.2% Operating Income $1,956 +100% +30% $2,557 +112% +22% 3,000 65.8% 66.0% 65.5% 65.5% 66.0% 2,500 64.0% Net Income $1,912 +109% +31% $2,313 +107% +18% 2,000 62.0% Diluted EPS $3.03 +106% +31% $3.66 +103% +18% 1,500 60.0% Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Cash Flow from Ops $1,874 +106% -9% $1,874 +106% -9% Revenue($M) Non-GAAP GM No difference between GAAP and Non-GAAP Cash Flow from Operations and Revenue. All dollar figures are in millions ($) other than EPS. 6 GAMING Revenue ($M) Highlights Record quarter driven by GeForce RTX 30 Series GPUs and game console SOCs 11% q/q and $3,100 106% y/y $2,760 Largest-ever wave of GeForce gaming laptops, over 140 at all major OEMs $2,600 $2,495 $2,271 Over 60 RTX games; DLSS incorporated in $2,100 game engines Unreal Engine 4 and Unity $1,654 GeForce NOW has passed 10 million $1,600 members and offers nearly 1,000 games, $1,339 more than any other cloud gaming service $1,100 We believe Gaming also benefited from crypto mining demand $600 Channel inventories lean; Expect to Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 remain supply constrained into 2H 7 DATA CENTER Revenue ($M) Highlights 8% q/q and $2,200 79% y/y Topped $2B for the first time; Growth $2,048 was led by hyperscale customers for $2,000 internal and cloud workloads $1,900 $1,903 $1,800 $1,752 A100 deployed across all major hyper- scalers and CSPs globally; we see strengthening demand in coming quarters $1,600 Continue to gain traction in inference $1,400 with hyperscale and vertical industries $1,200 $1,141 Strong inference growth driven not just by T4 but also A100, new A10 and A30 GPUs $1,000 Two of the fastest growing areas of AI - NLU and deep recommenders $800 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 8 PROFESSIONAL VISUALIZATION Revenue ($M) Highlights 21% q/q and y/y Strong notebook growth to new record driven by enterprises supporting remote $372 workforce initiatives $350 $307 $307 Desktop rebounded as enterprises resumed spending; likely to see continued $236 growth as offices reopen $203 Strength in manufacturing, healthcare, auto and media & entertainment Announced a number of powerful new NVIDIA Ampere architecture GPUs for next-generation desktop and notebook workstations $0 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 9 AUTOMOTIVE Revenue ($M) Highlights $250 Sequential growth driven by growth in AI Cockpit partially offset by an expected 6% q/q decline in legacy infotainment 1% y/y New wins with Volvo, GM Cruise and NEVs $155 $154 including Faraday Future, R Auto, IM $145 Motors and VinFast $125 $111 In trucking, Navistar is partnering with TuSimple in selecting NVIDIA DRIVE for autonomous driving Extended technology leadership with the announcement of the next-generation NVIDIA DRIVE Atlan SoC $0 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Our auto design win pipeline exceeds $8 billion through fiscal year 2027 10 SOURCES & USES OF CASH Cash Flow from Operations ($M) Highlights 106% y/y Returned $99M to shareholders in the $2,200 $2,067 9% q/q form of dividends $2,000 $1,874 $1,800 Invested $317M in capex $1,566 $1,600 Ended the quarter with $12.7B in gross $1,400 $1,279 cash and $7.0B in debt, $5.7B in net cash $1,200 $1,000 $909 $800 $600 $400 $200 Gross cash is defined as cash/cash equivalents & marketable securities. $0 Debt is defined as principal value of debt. Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Net cash is defined as gross cash less debt. 11 Q2 FY2022 OUTLOOK Revenue – $6.30 billion, plus or minus two percent We expect broad-based sequential and year-on-year revenue growth in all our market platforms. Our outlook includes $400 million in CMP. Aside from CMP, the sequential revenue increase is driven largely by Data Center and Gaming. Gross Margin – 64.6% GAAP and 66.5% non-GAAP, plus or minus 50 basis points Operating Expense – Approximately $1.76 billion GAAP and $1.26 billion non-GAAP Other Income & Expense – Net expense of $50 million for both GAAP and non-GAAP Tax Rate – GAAP and non-GAAP both 10 percent, plus or minus one percent, excluding discrete items Capital Expenditure – Approximately $300 million to $325 million 12 KEY ANNOUNCEMENTS
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