Slide 1: Investor Presentation Q4 FY23
Investor Presentation Q4 FY23 February 27, 2023
Slide 2: Forward-looking statements
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; AI adoption being at an inflection point; our expectation of strong quarter over q
Slide 3: Content
Content • Q4 FY23 Earnings Summary • Key Announcements This Quarter • NVIDIA Overview • Financials • Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 4: Q4 FY23 Earnings Summary
Q4 FY23 Earnings Summary
Slide 5: Highlights
Highlights • Resumed sequential revenue growth driven by new Gaming product cycle; Y/Y decline reflects channel inventory corrections in Gaming and Pro Viz • Total revenue down 21% Y/Y to $6.05B, inline with outlook of $6.00B +/- 2% • Data Center up 11% Y/Y to $3.62B • Gaming down 46% Y/Y to $1.83B
Slide 6: Q4 FY23 Financial Summary
Q4 FY23 Financial Summary GAAP Non-GAAP 9,500 Revenue($M) Non-GAAP GM 100.0% Q4 FY23 Y/Y Q/Q Q4 FY23 Y/Y Q/Q 8,500 $8,288 90.0% $7,643 7,500 Revenue $6,051 -21% +2% $6,051 -21% +2% $6,704 80.0% 6,500 $6,051 Gross Margin 63.3% -2.1 pts +9.7 pts 66.1% -0.9 pts +10.0 pts $5,931 5,500 66.1% 70.0% 67.0%
Slide 7: Data Center
Data Center 11% Y/Y Highlights 6% Q/Q • Hyperscale customer revenue posted strong Q/Q growth $3,806 $3,833 $3,750 $3,616 • Revenue growth from cloud service provider (CSP) customers last year significantly outpaced that of Data Center as a whole, as $3,263 more enterprise customers move to a cloud-f
Slide 8: Gaming
Gaming Highlights • Q/Q growth was driven by the strong reception of our 40-series GeForce RTX GPUs based on the Ada Lovelace architecture $3,620 $3,420 • Y/Y decline reflects the impact of the channel inventory correction, which is largely behind us • The flagship RTX 4090 has quickly shot up in po
Slide 9: Professional Visualization
Professional Visualization Highlights • Q/Q growth was driven by desktop workstations, with strength in $643 $622 the automotive and manufacturing industry verticals • Y/Y decline reflects the impact of the channel inventory correction, which we expect to end in the first half of fiscal 2024 $496 •
Slide 10: Automotive
Automotive Highlights 135% Y/Y and • Q/Q growth was driven primarily by AI Automotive Solutions. New 17% Q/Q program ramps at both Electric Vehicle and traditional OEM $294 customers helped drive growth • The NVIDIA DRIVE operating system received safety certification $251 from TÜV SÜD, one of the m
Slide 11: Sources & Uses of Cash
Sources & Uses of Cash Highlights • Y/Y decreases reflect lower operating income and timing of supplier payments and inventory deliveries, partially offset by $3,033 lower accounts receivable due to strong collections 474% Q/Q • Q/Q increase reflects timing of supplier payments and lower 26% Y/Y acc
Slide 12: Q1 FY24 Outlook
Q1 FY24 Outlook $6.5 billion, plus or minus 2% Revenue Expect sequential growth to be driven by each of our four major market platforms, led by strong growth in Data Center and Gaming Gross Margins 64.1% GAAP and 66.5% non-GAAP, plus or minus 50 basis points Operating Expense Approximately $2.53 bil
Slide 13: Key Announcements This Quarter
Key Announcements This Quarter
Slide 14: NVIDIA Ada Lovelace Supercharges 170+ Laptop Designs
NVIDIA Ada Lovelace Supercharges 170+ Laptop Designs for Gamers and Creators • GeForce RTX 40 Series laptops are up to 3x more power efficient than the previous generation and bring NVIDIA DLSS 3 and fifth-generation Max-Q technologies to laptops for the first time • For gamers, RTX 40 Series laptop
Slide 15: GeForce RTX 4070 Ti Brings Ada Lovelace to $799
GeForce RTX 4070 Ti Brings NVIDIA Ada Lovelace Architecture to $799 • The new RTX 4070 Ti GPU is faster than the GeForce RTX 3090 Ti at nearly half the power • For 3D creators, the RTX 4070 Ti delivers up to 70% increase in performance compared to the GeForce RTX 3070 Ti for popular tools like Blend
Slide 16: GeForce NOW Coming to Cars
GeForce NOW Coming to Cars • GeForce NOW cloud gaming service will be coming to cars • Hyundai Motor Group, BYD, and Polestar are the first automakers working with NVIDIA to deliver GeForce NOW in their vehicles • Expands NVIDIA’s vehicle infotainment offerings, which include a suite of products and
Slide 17: New RTX 4080-Class Cloud Gaming Tier
New RTX 4080-Class Cloud Gaming Tier • Announced a new, high-performance Ultimate membership tier of GeForce NOW, delivering GeForce RTX 4080-class graphics horsepower — nearly 1.75x over the previous generation • Ultimate members will be the first to experience true PC gaming — streaming at up to 2
Slide 18: Foxconn Partners With NVIDIA to Build Automated Electric Vehicles
Foxconn Partners With NVIDIA to Build Automated Electric Vehicles • Announced a strategic partnership with Hon Hai Technology Group (Foxconn) to develop automated and autonomous vehicle platforms • As part of the agreement, Foxconn will be a tier-one manufacturer, producing electronic control units
Slide 19: Mercedes-Benz Assembles Next-Gen Factories With Omniverse
Mercedes-Benz Assembles Next-Gen Factories With NVIDIA Omniverse • Mercedes-Benz announced that it is using the NVIDIA Omniverse platform to design and plan manufacturing and assembly facilities • Mercedes-Benz planners can access the digital twin of the factory, reviewing and optimizing the plant a
Slide 20: Omniverse Avatar Cloud Engine (ACE) Now in Early Access
NVIDIA Omniverse Avatar Cloud Engine (ACE) Now in Early Access • ACE is a suite of cloud-native AI microservices that make it easier to build and deploy avatars, intelligent virtual assistants and digital humans at scale • These AI assistants can be designed for organizations across industries, enab
Slide 21: Deutsche Bank, NVIDIA to Accelerate Adoption of AI
Deutsche Bank, NVIDIA to Accelerate Adoption of AI • Deutsche Bank (DB) announced a partnership with NVIDIA to accelerate the use of AI and machine learning in the financial services sector • DB’s initiatives to speed efforts to serve customers worldwide, develop new data-driven products and service
Slide 22: Microsoft and NVIDIA Announce Expansive New Gaming Deal
Microsoft and NVIDIA Announce Expansive New Gaming Deal • Microsoft and NVIDIA agreed to a 10-year partnership to bring Xbox PC games to the NVIDIA GeForce NOW cloud gaming service • The agreement will enable gamers to stream Xbox PC titles from GeForce NOW to PCs, macOS, Chromebooks, smartphones an
Slide 23: Mercedes Benz Taking Entire Vehicle Lifecycle Digital
MB https://drive.google.com/drive/folders/1b4MSf CCOKkTXLoQ07_iPFsBlAYlv5HeN Mercedes Benz Taking Entire Vehicle Product Lifecycle Digital With NVIDIA AI and Omniverse • NVIDIA founder and CEO Jensen Huang joined Mercedes-Benz CEO Ola Källenius on stage at the automaker’s strategy update, showcasing
Slide 24: NVIDIA Overview
NVIDIA Overview
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: Driving Strong & Profitable Growth
Driving Strong & Profitable Growth $15,000 Operating Income (Non-GAAP, $M) Operating Margin (Non-GAAP) 60% Revenue ($M) $12,000 $12,690 50% $9,040 $9,000 $26,914 $26,974 $6,803 47% $6,000 $4,407 41% 40% $3,735 $3,000 38% 34% 34% $0 30% FY19 FY20 FY21 FY22 FY23 $16,675 Fiscal year ends in January. Re
Slide 36: 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% $15,965 67% 66% Significant expertise and ef
Slide 37: 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 $10.0B repurchased in FY23; $7.2B Remaining Authorization Through Dec 2023 as of Jan 29, 2023 $4.7B $4.3B $3.8B Dividend $3.1B $398M in FY 2023 Plan to Maintain1 Strategic I
Slide 38: Our Market Platforms at a Glance
Our Market Platforms at a Glance Data Center Gaming Professional Visualization Automotive 56% of FY23 revenue 33% of FY23 revenue 6% of FY23 revenue 3% of FY23 revenue FY23 Revenue $15.0B FY23 Revenue $9.1B FY23 Revenue $1.5B FY23 Revenue $0.9B 5-yr CAGR 51% 5-yr CAGR 10% 5-yr CAGR 11% 5-yr CAGR 10%
Slide 39: Data Center
Data Center The leading computing platform for AI, HPC & graphics Revenue ($M) $15,005 Leader in AI & HPC 51% 5-YR CAGR #1 in AI training and inference Through FY23 Used by all hyperscale & major cloud computing providers and 35,000 organizations $10,613 Powers 361 of the TOP500 supercomputers $6,69
Slide 40: Data Center: Hyperscale Revenue
Data Center Strong growth fueled by AI performance leadership and huge developer ecosystem CUDA Downloads—4.5X in 4 Yrs 90,000x 37M 2015 36,000 Mins (25 Days) Hyperscale Revenue K80 3x # of Developers—3.5X in 4 Yrs 2017 480 Mins V100 (8 Hours) 3.5M 2021 Accelerated Applications—5X in 4 Yrs 24 Second
Slide 41: Modern AI is a Data Center Scale Computing Workload
Modern AI is a Data Center Scale Computing Workload Data centers are becoming AI factories: data as input, intelligence as output AI Training Computational Requirements Fueling Giant-Scale AI Infrastructure NVIDIA compute & networking GPU | DPU | CPU 1010 All AI Models Excluding Transformers: 8x / 2
Slide 42: Wave of New Data Center Products
Wave of New Data Center Products Ramping new architectures for GPU, CPU and DPU H100 GPU Bluefield-3 DPU Grace CPU Superchip World’s Most Advanced Chip First 400 Gb/s DPU High Performance CPU for HPC and AI 80B Transistors Line-rate processing of software-defined 144 Cores | 740 SPECrate®2017_int_ba
Slide 43: Gaming
Gaming GeForce—the world’s largest gaming platform Revenue ($M) Leader in PC Gaming $12,462 10% 5-YR CAGR Strong #1 market position with over 80% share Through FY23 15 of the Top 15 most popular GPUs on Steam Leading performance & innovation $9,067 200M+ gamers on GeForce $7,759 $6,246 $5,518 Growth
Slide 44: Strong Gaming Fundamentals
Strong Gaming Fundamentals New generation, more gamers 77% 81% 400+ RTX Games and Applications 60% #1 #1 #1 #1 42% 3.1B Video App Photo App 3D App Broadcast App 2.3B PC Gamers Total Gamers Boomers Gen X Millennials Gen Z 2:30 4:25 6:50 7:20 Expanding reach to Hrs/Wk Hrs/Wk Hrs/Wk Hrs/Wk 110M Creator
Slide 45: Professional Visualization
Professional Visualization Workstation graphics Revenue ($M) Leader in Workstation Graphics 11% 5-YR CAGR 90%+ market share in graphics Through FY23 $2,111 for workstations 45M Designers and Creators Strong software ecosystem with over 100 $1,544 supported applications $1,212 $1,130 $1,053 Growth Dr
Slide 46: Automotive
Automotive Autonomous Vehicles (AV) & AI Cockpit Revenue ($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 47: Financials
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Slide 48: Annual Cash & Cash Flow Metrics
Annual Cash & Cash Flow Metrics Operating Income (Non-GAAP) — $M Operating Cash Flow — $M 12,690 9,108 9,040 5,822 5,641 6,803 4,761 3,743 4,407 3,735 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Free Cash Flow (Non-GAAP) — $M Cash Balance — $M 8,049 21,208 4,677 13,296 4,272 10,897 11,561 3,75
Slide 49: Corporate Responsibility
Corporate Responsibility Environmentally Conscious A Place For People To Do Their Life’s Work Management Time Magazine’s 100 Most Influential Companies 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’s M
Slide 50: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 51: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures Acquisition- Acquisition Stock-Based Tax Impact Related and IP-Related Other Non-GAAP Termination Compensation of GAAP Other Costs Cost (C) Cost (B) Adjustments (A) Q4 FY23 $3,999 — (120) (30) (16) — — $3,833 Gross margin ($ in million) 66.1% — (
Slide 52: 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 Gross Margin Non-GAAP (A) (B) GAAP Q4 FY2022 67.0% (1.1) (0.5) 65.4% Q1 FY2023 67.1% (1.1) (0.5) 65.5% Q2 FY2023 45.9% (1.8) (0.6) 43.5% Q3 FY2023 56.1% (2.0) (0.5) 53.6% A. Con
Slide 53: 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 $7,233 — (27) (35) $7,171 FY 2019 61.7% — (0.2) (0.3) 61.2% $6,821 — (39) (14) $6,768 FY
Slide 54: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Operating Acquisition- Stock-Based Margin Acquisition Related IP-Related Other Non-GAAP Compensation GAAP ($ in Millions & Termination Cost and Other Costs Cost (C) (B) Margin Percentage) (A) $4,407 — (2) (557) (35) (9) $3,804 FY 2019 37
Slide 55: Reconciliation of Non-GAAP to GAAP Financial Measures (contd.)
Reconciliation of Non-GAAP to GAAP Financial Measures (contd.) Principal Payments Purchases Related to Net Cash on Property ($ in Millions) Free Cash Flow Property and Equipment Provided by and Equipment and and Intangible Assets Operating Activities Intangible Assets FY 2019 $3,143 600 — $3,743 FY
Slide 56: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures ($ in Millions) Q1 FY24 Outlook Non-GAAP gross margin 66.5% Impact of stock-based compensation expense, acquisition-related costs, and other costs (2.4%) GAAP gross margin 64.1% Non-GAAP operating expenses $1,775 Impact of stock-based compensatio
Slide 57: NVIDIA
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