NVIDIA FY23 Q1 earnings report

01 Business performance and growth drivers

Data Center revenue was 3.75 B$, up 83% year over year. Gaming revenue was 3.62 B$.

Versus the preceding quarter, consolidated revenue changed by +0.645 B$ and operating profit by -1.102 B$; operating margin changed by -16.3 percentage points. Segment commentary explains the consolidated result. Sequential changes without controlling for acquisitions, seasonality and product transitions are not long-term growth rates.

02 Profit quality and margins

The release reports GAAP gross margin of 65.5% and non-GAAP margin of 67.1%. GAAP margin changed by +0.1 percentage points sequentially and +1.4 points year over year. Assess product mix, inventory and transition costs separately from sales scale.

A 1.35 B$ Arm termination charge affected earnings; next-quarter guidance incorporated roughly 0.5 B$ of Russia/China-lockdown revenue impact.

On consolidated revenue of 8.288 B$, operating margin was 22.5% and net margin 19.5%. Net profit differed from operating profit by -0.250 B$, reflecting non-operating items, taxes and related effects. This difference cannot by itself be attributed to product demand or operating competitiveness.

03 Cash flow and financial capacity

Quarterly operating cash flow of 1.731 B$ less capital expenditure of 0.361 B$ gives common-basis FCF of 1.370 B$. Ending cash and cash equivalents were 3.887 B$, versus total liabilities of 18.892 B$. Liabilities are not equivalent to borrowings; cash excludes separately reported short-term investments.

Common-basis FCF was 16.5% of revenue. Both operating cash flow and capital expenditure refer to this quarter, not annual or trailing-twelve-month periods. Working-capital movements and non-cash adjustments mean operating cash flow need not equal net profit.

The site's company-defined FCF is 1.348 B$, 0.022 B$ below the common basis. NVIDIA additionally deducts financing-related principal payments and related items; keep the two definitions separate.

04 Management commentary and contemporaneous guidance

Management demand commentary is based on the official release. Platform revenue is part of consolidated results, not incremental revenue to add to the totals.

Next-quarter revenue guidance was 8.10 B$±2%; GAAP/non-GAAP gross-margin guidance was 65.1%/67.1%, each ±0.5 percentage points. These are contemporaneous forecasts, not subsequent actual results.

05 Risks and next checks

Record sales coexist with one-off costs; track Gaming demand, China lockdowns and product transitions.

Quarterly results · CY-aligned view

CY denotes the calendar quarter with the greatest overlap with the fiscal period. If the first period has no start date, 89 days before its end is used only for calendar mapping. Financial values are not recalculated into calendar quarters. Incomplete years show totals of included quarters; cash, liabilities, borrowings and net cash use the last period-end balance. QoQ and YoY show absolute changes; margin changes are percentage points. Dashes indicate missing evidence or incomparable periods or definitions. Total liabilities never substitute for borrowings.

Definitions and evidence coverage

A dash means unavailable or undisclosed, not zero. Company-defined FCF may differ from total operating cash flow less common-basis CapEx. Total liabilities are accounting liabilities, not interest-bearing debt.

Management commentary summarizes the contemporaneous official earnings release; this report does not represent a full conference-call Q&A review.