Slide 1: Investor Presentation Q3 FY23
Investor Presentation Q3 FY23 November 21, 2022
Slide 2: Forward-looking statements disclaimer
Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: our financial position; our markets, market opportunity and growth drivers; Gaming channel inventories being on track to approach normal levels exiting Q4; ou
Slide 3: Content
Content • Q3 FY23 Earnings Summary • Key Announcements This Quarter • NVIDIA Overview • Financials • Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 4: Q3 FY23 Earnings Summary
Q3 FY23 Earnings Summary BEE
Slide 5: Highlights
Highlights • Record Data Center and Automotive revenue; Gaming and Pro Viz revenue declines on channel inventory corrections and challenging external conditions • Total revenue down 17% Y/Y to $5.93B, inline with outlook of $5.90B +/- 2% • Data Center up 31% Y/Y to $3.83B • Gaming down 51% Y/Y to $1
Slide 6: Q3 FY23 Financial Summary
Q3 FY23 Financial Summary GAAP Non-GAAP 9,500 Revenue($M) Non-GAAP GM 100.0% Q3 FY23 Y/Y Q/Q Q3 FY23 Y/Y Q/Q 8,500 $8,288 90.0% $7,643 7,500 Revenue $5,931 -17% -12% $5,931 -17% -12% $7,103 $6,704 80.0% 6,500 Gross Margin 53.6% -11.6 pts +10.1 pts 56.1% -10.9 pts +10.2 pts $5,931 5,500 70.0% 67.0% 6
Slide 7: Data Center
Data Center 31% Y/Y Highlights and 1% Q/Q • Very solid performance in the face of macroeconomic challenges, $3,833 $3,750 $3,806 new export controls, and lingering supply chain disruptions • Year-on-year, growth was driven primarily by leading US cloud $3,263 providers and a broadening set of consum
Slide 8: Gaming
Gaming Highlights • Decline reflects lower sell-in to partners to help align channel inventory levels with current demand expectations $3,620 $3,420 • We believe channel inventories are on track to approach normal $3,221 levels as we exit Q4 • Sell-through was relatively solid in the Americas and EM
Slide 9: Professional Visualization
Professional Visualization Highlights • Decline reflects lower sell-in to partners to help align channel $643 $622 inventory levels with current demand expectations $577 • Despite near-term challenges, long-term opportunity remains intact, fueled by AI, simulation, and computationally intensive $496
Slide 10: Automotive
Automotive Highlights 86% Y/Y and 14% Q/Q • Growth was driven by an increase in AI Automotive Solutions, as our customers’ DRIVE Orin-based production continues to ramp $251 • Volvo Cars unveiled the all-new flagship Volvo EX90 SUV powered $220 by the NVIDIA DRIVE platform • Other recently announced
Slide 11: Sources & Uses of Cash
Sources & Uses of Cash Highlights • Y/Y decrease reflects lower operating income, timing of supplier payments and inventory deliveries, partially offset by lower $3,033 supplier prepayments • Q/Q decrease reflects timing of supplier and other payments as well as inventory deliveries, partially offse
Slide 12: Q4 FY23 Outlook
Q4 FY23 Outlook Revenue $6.0 billion, plus or minus 2% Expect modest sequential growth, driven by Automotive, Gaming and Data Center Gross Margins 63.2% GAAP and 66.0% non-GAAP, plus or minus 50 basis points Operating Expense Approximately $2.56 billion GAAP and $1.78 billion non-GAAP Other Income &
Slide 13: Key Announcements This Quarter
Key Announcements This Quarter
Slide 14: NVIDIA GeForce RTX 40 Series GPU Launch
NVIDIA GeForce RTX 40 Series GPU Launch • Based on the new NVIDIA Ada Lovelace architecture, GeForce 40 Series GPUs deliver up to 4x the performance of the previous generation • Features DLSS 3, the neural rendering technology that uses AI to generate entire frames for faster gameplay • The initial
Slide 15: NVIDIA H100 in Full Production
NVIDIA H100 in Full Production • NVIDIA H100 is in full production, with global tech partners planning to roll out the first wave of products and services in Q4 • H100 delivers the same AI performance with 3.5x better energy efficiency and 3x lower total cost of ownership, while using 5x fewer serve
Slide 16: Large Language Model Cloud Services
Large Language Model (LLM) Cloud Services to Advance AI and Digital Biology • The NVIDIA NeMo LLM Service and the NVIDIA BioNeMo LLM Service enable developers to easily adapt LLMs and deploy customized AI applications • Applications include content generation, text summarization, chatbots, code deve
Slide 17: NVIDIA Omniverse Computing Systems (OVX)
NVIDIA Omniverse Computing Systems (OVX) • NVIDIA OVX systems—the graphics and simulation foundation for the metaverse—are designed to build 3D virtual worlds and to operate immersive digital twin simulations in NVIDIA Omniverse Enterprise • NVIDIA OVX is powered by NVIDIA L40 GPU based on Ada Lovel
Slide 18: NVIDIA Omniverse Cloud Services
NVIDIA Omniverse Cloud Services • NVIDIA’s first software- and infrastructure-as-a-service offering • A suite of cloud services for artists, developers and enterprise teams to design, publish, and operate metaverse applications anywhere • Omniverse Cloud services run on the Omniverse OVX for graphic
Slide 19: NVIDIA DRIVE Thor Superchip
NVIDIA DRIVE Thor Superchip • DRIVE Thor, with 2,000 teraflops of performance, unifies separate functions into a single architecture for greater efficiency and lower overall system cost. Functions include: • Automated and assisted driving • Parking • Driver and occupant monitoring • Digital instrume
Slide 20: Jetson Orin Nano for Robotics
Jetson Orin Nano for Robotics • The new Jetson Orin Nano system-on-module delivers up to 40 TOPS, or up to 80x the performance of the prior generation Jetson Nano, setting a new standard for entry-level edge AI and robotics • NVIDIA’s Jetson ecosystem includes 1 million developers, 6,000 customers a
Slide 21: IGX Edge AI Platform
IGX Edge AI Platform for Safe, Secure Autonomous Systems • The NVIDIA IGX platform brings advanced security and proactive safety to sensitive industries such as manufacturing, logistics and healthcare • Includes NVIDIA IGX Orin, a compact and energy- efficient AI system, and can run NVIDIA AI Enterp
Slide 22: Oracle Adding More NVIDIA GPUs in OCI
Oracle Adding Tens of Thousands More NVIDIA GPUs in OCI, Partnering to Speed AI Adoption • Oracle Cloud Infrastructure (OCI) is adding tens of thousands more NVIDIA GPUs, including the A100 and upcoming H100 • Provides enterprises a broad, easily accessible portfolio of options for AI training and i
Slide 23: Meta's Grand Teton Brings NVIDIA Hopper to Its Data Centers
Meta’s Next-Gen AI Platform, Grand Teton, Brings NVIDIA Hopper to Its Data Centers • Grand Teton uses NVIDIA H100 GPUs and offers 2x the network bandwidth and 4x the bandwidth between host processors and GPU accelerators compared to Meta’s prior Zion system • The added network bandwidth enables Meta
Slide 24: Leadership in Latest MLPerf Training Benchmark
Reinforcing NVIDIA’s Leadership in Latest MLPerf Training Benchmark What is MLPerf? MLPerf November 2022—AI Training • The industry’s first objective AI benchmark for measuring • Seventh consecutive top showing in training tests machine learning performance NVIDIA H100 GPUs set records across all en
Slide 25: NVIDIA AI Adopted by Rescale
NVIDIA AI Adopted by Rescale HPC-as-a-Service Platform • Rescale is adopting NVIDIA AI Enterprise and other software to address the industrial scientific community’s rising demand for AI in the cloud • Brings new capabilities to Rescale’s HPC-as-a- service offerings, which include simulation and eng
Slide 26: NVIDIA Teams with Microsoft on Cloud AI Computer
NVIDIA Teams with Microsoft to Build Massive Cloud AI Computer • Multi-year collaboration with Microsoft to build one of the most powerful AI supercomputers to help enterprises train, deploy and scale AI, including large, state-of-the-art models • Microsoft Azure will incorporate the NVIDIA AI stack
Slide 27: NVIDIA Overview
NVIDIA Overview
Slide 28: NVIDIA pioneered accelerated computing
NVIDIA pioneered accelerated computing to help solve impactful challenges classical computers cannot. A quarter of a century in the making, NVIDIA accelerated computing is broadly recognized as the way to advance computing as Moore’s law ends and AI lifts off. NVIDIA’s platform is installed in sever
Slide 29: What Is Accelerated Computing?
What Is Accelerated Computing? A full-stack approach: silicon, systems, software Amdahl’s law: The overall system speed-up (S) gained by optimizing a single part of a system by a factor (s) is limited by the proportion of execution time of that part (p). Not just a superfast chip – accelerated compu
Slide 30: Why Accelerated Computing?
Why Accelerated Computing? Advancing computing in the post-Moore’s Law era 109 Trillions of Operations per Second (TOPS) 108 Accelerated computing is needed to tackle the most impactful opportunities of our time—like AI, climate 107 GPU-Computing perf 1000X simulation, drug discovery, ray tracing, a
Slide 31: AI Is the Greatest Technology Force of Our Time
AI Is the Greatest Technology Force of Our Time Data centers across industries will become AI factories AI has fundamentally changed what software can make and how you make software. Companies are processing & refining their data, making AI software—becoming intelligence manufacturers. Their data ce
Slide 32: Building and Operating Metaverse Applications Is the Next Wave
Building and Operating Metaverse Applications Is the Next Wave NVIDIA Omniverse—Runs on NVIDIA OVX servers | RTX workstations | Enterprise software | Cloud services NVIDIA Omniverse is a software platform for building and operating metaverse applications. Our initial focus is on industrial metaverse
Slide 33: NVIDIA's Accelerated Computing Platform
NVIDIA’s Accelerated Computing Platform Full-stack innovation across silicon, systems and software AI APPLICATION FRAMEWORK With nearly three decades of a singular focus, NVIDIA is expert at accelerating software and scaling compute by a Million-X, going well beyond Moore’s law. PLATFORMS NVIDIA HPC
Slide 34: NVIDIA's Multi-Sided Platform and Flywheel
NVIDIA’s Multi-Sided Platform and Flywheel NVIDIA is valued by every stakeholder in the ecosystem: 3.5 Million • For developers – NVIDIA’s One Architecture and large Full-Stack Developers installed base give developer’s software the best Expertise and Scale Wealth of Accelerated performance and grea
Slide 35: Full-Stack & Data Center Scale Acceleration
Full-Stack & Data Center Scale Acceleration Drive Significant Cost Savings and Workload Scaling Classical Computing—92 CPU-only servers Accelerated Computing—1 NVIDIA DGX A100 $3.3M (including switches, cables, racks) $220,000 DGX and $100,000 NVIDIA AI software Application Application Re-Engineered
Slide 36: New NVIDIA Software and Services
New NVIDIA Software and Services Enabling the World’s Enterprises to Revolutionize Industries with AI NVIDIA AI Enterprise NVIDIA Omniverse NVIDIA Nemo LLM NVIDIA BioNemo The operating engine of AI for A platform for designing, building, NVIDIA-hosted cloud service for NVIDIA-hosted cloud service fo
Slide 37: Giant Market Opportunity
Giant Market Opportunity Gaming & Metaverse Financial Services Healthcare Logistics Manufacturing Retail Transportation Gaming Over 3B gamers and creators, a quarter of them spending over $1 Trillion Opportunity $100/year for GPUs in desktops, laptops, cloud or consoles NVIDIA AI Omniverse NVIDIA AI
Slide 38: Driving Strong & Profitable Growth
Driving Strong & Profitable Growth $15,000 Operating Profit (Non-GAAP, $M) Operating Margin (Non-GAAP) 60% $12,690 Revenue ($M) $12,000 50% $9,000 $26,914 $6,803 47% $6,816 $6,000 $4,407 41% 40% $3,617 $3,735 YTD YTD $3,000 38% $20,923 37% 34% $0 33% 30% FY18 FY19 FY20 FY21 FY22 FY23 $16,675 Fiscal
Slide 39: NVIDIA Gross Margins Reflect Value of Acceleration
NVIDIA Gross Margins Reflect Value of Acceleration Gross Profit (Non-GAAP, $M) Gross Margin (Non-GAAP) Accelerated computing requires full-stack and data center-scale innovation across silicon, systems, $18,000 $17,969 69% algorithms and applications. 67% 67% 66% Significant expertise and effort are
Slide 40: Strong Cash Flow Generation
Strong Cash Flow Generation Free Cash Flow (Non-GAAP) Capital Allocation $8.0B Share Repurchase Resumed Buybacks in Q1 FY 2023 $9.0B repurchased YTD FY23; $8.3B Remaining Authorization Through Dec 2023 as of Oct 30, 2022 $4.7B $4.3B Dividend $3.1B $400M in FY 2022 $2.9B Plan to Maintain1 $2.0B YTD Y
Slide 41: Our Market Platforms at a Glance
Our Market Platforms at a Glance Gaming Data Center Professional Visualization Automotive 46% of FY22 revenue 40% of FY22 revenue 8% of FY22 revenue 2% of FY22 revenue FY22 Revenue $12.5B FY22 Revenue $10.6B FY22 Revenue $2.1B FY22 Revenue $0.6B 5-yr CAGR 25% 5-yr CAGR 66% 5-yr CAGR 20% 5-yr CAGR 3%
Slide 42: Data Center
Data Center The leading computing platform for AI, HPC & graphics Revenue ($M) $11,389 Leader in AI & HPC $10,613 66% 5-YR CAGR #1 in AI training and inference Through FY22 Used by all hyperscale & major cloud computing providers and 35,000 organizations Powers 361 of the TOP500 supercomputers $6,69
Slide 43: Data Center: Hyperscale Revenue
Data Center Strong growth fueled by AI performance leadership and huge developer ecosystem CUDA Downloads—4.5X in 4 Yrs 90,000x 37M 2015 36,000 Mins (25 Days) Hyperscale Revenue K80 3x # of Developers—3.5X in 4 Yrs 2017 480 Mins V100 (8 Hours) 3.5M 2021 Accelerated Applications—5X in 4 Yrs 24 Second
Slide 44: Modern AI is a Data Center Scale Computing Workload
Modern AI is a Data Center Scale Computing Workload Data centers are becoming AI factories: data as input, intelligence as output AI Training Computational Requirements Fueling Giant-Scale AI Infrastructure NVIDIA compute & networking GPU | DPU | CPU 1010 All AI Models Excluding Transformers: 8x / 2
Slide 45: Wave of New Data Center Products
Wave of New Data Center Products Ramping new architectures for GPU, CPU and DPU H100 GPU Bluefield-3 DPU Grace CPU Superchip World’s Most Advanced Chip First 400 Gb/s DPU High Performance CPU for HPC and AI 80B Transistors Line-rate processing of software-defined 144 Cores | 740 SPECrate®2017_int_ba
Slide 46: Gaming
Gaming GeForce—the world’s largest gaming platform Revenue ($M) Leader in PC Gaming $12,462 25% 5-YR CAGR Strong #1 market position with over 80% share Through FY22 15 of the Top 15 most popular GPUs on Steam Leading performance & innovation 200M+ gamers on GeForce $7,759 $7,236 $6,246 $5,513 $5,518
Slide 47: Strong Gaming Fundamentals
Strong Gaming Fundamentals New generation, more gamers 77% 81% 350+ RTX Games and Applications 60% #1 #1 #1 #1 42% 3.1B Video App Photo App 3D App Broadcast App 2.3B PC Gamers Total Gamers Boomers Gen X Millennials Gen Z 2:30 4:25 6:50 7:20 Expanding reach to Hrs/Wk Hrs/Wk Hrs/Wk Hrs/Wk 110M Creator
Slide 48: Professional Visualization
Professional Visualization Workstation graphics Revenue ($M) Leader in Workstation Graphics 20% 5-YR CAGR 90%+ market share in graphics Through FY22 $2,111 for workstations 45M Designers and Creators Strong software ecosystem with over 100 supported applications $1,318 $1,212 $1,130 $1,053 $934 YTD
Slide 49: Automotive
Automotive Autonomous Vehicles (AV) & AI Cockpit Revenue ($M) Leader in Autonomous Driving Our Next Billion-Dollar Business Historical revenue driven largely by infotainment Over $11B design win pipeline across 40 customers Future growth primarily fueled by NVIDIA DRIVE, our AV and AI cockpit platfo
Slide 50: Financials
Financials
Slide 51: Annual Cash & Cash Flow Metrics
Annual Cash & Cash Flow Metrics Operating Income (Non-GAAP) — $M Operating Cash Flow — $M 12,690 9,108 5,822 6,803 4,761 3,502 3,743 4,407 3,617 3,735 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 Free Cash Flow (Non-GAAP) — $M Cash Balance — $M 8,049 21,208 4,677 4,272 10,897 11,561 2,909 3,143
Slide 52: Corporate Responsibility
Corporate Responsibility Environmentally Conscious A Place For People To Do Their Life’s Work Management Time Magazine’s 100 Most Influential Companies #1 CEO Magazine’s 10 Best CEOs NVIDIA's two HQ campuses have received Fortune’s World’s Most Admired Companies LEED Gold status Wall Street Journal’
Slide 53: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 54: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures Acquisition- Acquisition Stock-Based Related and Other Tax Impact of Non-GAAP Termination Compensation GAAP Other Costs (C) Adjustments Cost (B) (A) Q3 FY23 $3,329 — (120) (32) — — $3,177 Gross margin ($ in million) 56.1% — (2.0) (0.5) — — 53.6%
Slide 55: Reconciliation of Non-GAAP to GAAP Financial Measures (contd)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd) Acquisition-Related Stock-Based and Other Costs Compensation IP-Related Gross Margin Non-GAAP (A) (B) Costs GAAP Q3 FY2022 67.0% (1.2) (0.6) — 65.2% Q4 FY2022 67.0% (1.1) (0.5) — 65.4% Q1 FY2023 67.1% (1.1) (0.5) — 65.5% Q2 FY2023 45.9% (
Slide 56: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Acquisition-Related Stock-Based Gross Margin and Other Costs Compensation ($ in Millions & Margin Percentage) Non-GAAP (A) (B) IP-Related Costs GAAP $5,844 — (21) (1) $5,822 FY 2018 60.2% — (0.3) — 59.9% $7,233 — (27) (35) $7,171 FY 2019
Slide 57: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures Acquisition-Related Stock-Based Gross Margin and Other Costs Compensation ($ in Millions & Margin Percentage) Non-GAAP (A) (B) IP-Related Costs GAAP $12,844 (258) (102) (8) $12.476 YTD Q3 FY2022 66.6% (1.4) (0.5) — 64.7% $11,966 (335) (108) — $11
Slide 58: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Margin Acquisition-Related Stock-Based ($ in Millions & Non-GAAP and Other Costs Compensation Other GAAP Margin Percentage) (A) (B) $3,617 (13) (391) (3) $3,210 FY 2018 37.2% (0.2) (4.0) — 33.0% $4,407 (2) (557) (44) $3,804 FY
Slide 59: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Margin Acquisition-Related Stock-Based Acquisition ($ in Millions & Non-GAAP and Other Costs Compensation Other GAAP Termination Cost Margin Percentage) (A) (B) YTD Q3 FY2022 $9,014 — (482) (1,453) (8) $7,071 46.8% — (2.6) (7.5
Slide 60: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Purchases Related to Principal Payments Net Cash ($ in Millions) Free Cash Flow Property and Equipment on Property Provided by and Intangible Assets and Equipment Operating Activities FY 2018 $2,909 593 — $3,502 FY 2019 $3,143 600 — $3,7
Slide 61: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures ($ in Millions) Q4 FY23 Outlook Non-GAAP gross margin 66.0% Impact of stock-based compensation expense, acquisition-related costs, and other costs (2.8%) GAAP gross margin 63.2% Non-GAAP operating expenses $1,780 Impact of stock-based compensatio
Slide 62: NVIDIA
9 @INVIDIA.