Nvidia today announced the company's fiscal 2023 second quarter financial report. According to the report, Nvidia’s second-quarter revenue was $ 6.704 billion, an increase of 3% compared with $6.507 billion in the same period last year and a 19% decrease compared to $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; non-GAAP adjusted net profit was $1.292 billion, down from $1.292 billion in the same period last year It was down 51% from $2.623 billion in the previous quarter and 63% from $3.443 billion in the previous quarter.
Nvidia’s second-quarter adjusted earnings and revenue missed Wall Street analysts’ expectations, and its third-quarter revenue outlook fell short of expectations, sending its shares down nearly 4 percent after the bell.
Key results for the second quarter:
In the quarter ended July 31, Nvidia’s net profit was $656 million, down 72% from $2.374 billion in the same period a year earlier and down 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 down 59% from $0.64 in the prior fiscal quarter.
Excluding certain one-time items (not in accordance with U.S. GAAP), Nvidia's second-quarter adjusted net profit was $ 1.292 billion, down 51% from $2.623 billion in the same period last year Diluted earnings per share were $0.51, down 51% from $1.04 in the prior year, and down 63% from $1.36 in the prior quarter. meet analyst expectations. Analysts on average had expected Nvidia’s second-quarter earnings per share to reach $1.26, according to data provided by financial market data and infrastructure provider Refinitiv.
Nvidia’s second-quarter revenue was $ 6.704 billion, a 3% increase from $6.507 billion in the same period last year and a 19% drop from $8.288 billion in the previous quarter, which also failed to meet analyst expectations. According to data provided by Yahoo Finance, 30 analysts on average expected Nvidia’s second-quarter revenue to reach $8.1 billion.
Divided by business category, Nvidia's data center business reported revenue of $3.81 billion in the fiscal second quarter, an increase of 61% from a year earlier and a 1% increase from the previous quarter. Nvidia's gaming business reported revenue of $2.04 billion in the fiscal second quarter, down 33 percent from a year earlier and down 44 percent from the previous quarter. Second-quarter revenue for Nvidia's professional visualization business was $496 million, down 4 percent from a year earlier and down 20 percent from the previous quarter. Nvidia’s second-quarter revenue for its automotive business was $220 million, up 45 percent from a year earlier and up 59 percent from the previous quarter.
Nvidia’s second-quarter gross profit was $2.915 billion , compared to $4.215 billion a year earlier and $5.431 billion in the previous quarter. Excluding certain one-time items (not in accordance with GAAP), Nvidia's second-quarter adjusted gross profit was $3.074 billion, compared to $4.337 billion a year earlier and $5.563 billion in the prior quarter One hundred million U.S. dollars.
Nvidia's second-quarter gross profit margin was 43.5% , down 21.3 percentage points from 64.8% in the same period last year, and down 22.0 percentage points from 65.5% in the previous quarter. Excluding certain one-time items (not in accordance with GAAP), Nvidia's adjusted gross margin in the fiscal second quarter was 45.9%, a decrease of 20.8 percentage points from 66.7% in the same period last year. 67.1%, a decrease of 21.2 percentage points.
Nvidia's operating expenses in the fiscal second quarter were $2.416 billion , up 36% from $1.771 billion in the same period a year earlier and down 32% from $3.563 billion in the previous quarter. Among them, research and development expenses were $1.824 billion, compared with $1.245 billion in the same period last year; sales, general and administrative expenses were $592 million, compared with $526 million in the same period last year. Excluding certain one-time items (not in accordance with GAAP), Nvidia's second-quarter adjusted operating expenses were $1.749 billion, up 38% from $1.266 billion in the prior year of $1.608 billion, an increase of 9%.
Nvidia's second-quarter operating profit was $499 million , down 80 percent from $2.444 billion in the same period a year earlier and down 73 percent from $1.868 billion in the previous quarter. Excluding certain one-time items (not in accordance with GAAP), Nvidia's second-quarter investor operating profit was $1.325 billion, down 57% from $3.071 billion in the prior year That's a 66% drop from $3.955 billion.
Additional Financial Information:
In the fiscal second quarter, Nvidia returned $3.44 billion in cash to shareholders in the form of share repurchases and cash dividends, compared with $2.10 billion in the first quarter. Under the authorized share repurchase program, Nvidia has $11.93 billion remaining to repurchase through December 2023. In the current fiscal year, Nvidia said it plans to continue buying back shares.
Nvidia will pay its next quarterly cash dividend of $0.04 per share on September 29, 2022 to all shareholders of record as of September 8, 2022.
Performance Outlook:
Nvidia expects the company’s revenue to reach $5.90 billion in the third quarter of fiscal 2023, plus or minus 2%, a performance outlook that fell short of analysts’ previous expectations. According to data provided by Yahoo Finance, 27 analysts on average expected Nvidia’s third-quarter revenue to reach $6.95 billion.
Nvidia said revenue in its gaming and professional visualization businesses is expected to decline sequentially as original equipment manufacturers (OEMs) and channel partners reduce inventory levels to meet current demand levels and prepare for Nvidia's next-generation products. But the company also expects sequential growth in its data center and automotive businesses to partially offset the decline.
Nvidia also expects the company's gross margins to be 62.4% and 65.0%, plus or minus 50 basis points, respectively, in the third fiscal quarter of fiscal 2023; GAAP and non-GAAP operating margins Expenses are expected to be approximately $2.59 billion and $1.82 billion, respectively; other expenses, excluding equity gains and losses, are expected to be approximately $10 million with and without GAAP; GAAP and non-GAAP tax rates are expected Both will be 9.5%, plus or minus 1%.
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