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Press Release Details

Dell Technologies Delivers Fourth Quarter and Full Year Fiscal 2024 Financial Results

February 29, 2024
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News summary

  • Fourth quarter revenue of $22.3 billion and full-year revenue of $88.4 billion
  • Full-year operating income of $5.2 billion and non-GAAP operating income of $7.7 billion
  • Full-year cash flow from operations of $8.7 billion
  • Full-year diluted earnings per share of $4.36 and non-GAAP diluted earnings per share of $7.13
  • Announcing a 20% increase in annual cash dividend to $1.78 per common share

ROUND ROCK, Texas, Feb. 29, 2024 /PRNewswire/ -- 

Full story
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2024 fourth quarter and full year. Fourth quarter revenue was $22.3 billion, down 11% year over year. Operating income was $1.5 billion and non-GAAP operating income was $2.1 billion, up 25% and down 1% year over year, respectively. Cash flow from operations was $1.5 billion. Diluted earnings per share was $1.59, and non-GAAP diluted earnings per share was $2.20, up 89% and 22% year over year, respectively.

Revenue for the year was $88.4 billion, down 14% from fiscal year 2023. Operating income was $5.2 billion and non-GAAP operating income was $7.7 billion, down 10% and 11% year over year, respectively. Cash flow from operations for the full year was $8.7 billion. Full-year diluted earnings per share was $4.36, and non-GAAP diluted earnings per share was $7.13, up 35% and down 6% year over year, respectively. 

Cash and investments were $9.0 billion, and Dell reached its core leverage target of 1.5x exiting the fiscal year. Dell is increasing its annual cash dividend by 20% to $1.78 per common share, with $0.445 per common share for the first quarterly distribution payable on May 3 to shareholders of record as of April 23.

"We generated $8.7 billion in cash flow from operations this fiscal year, returning $7 billion to shareholders since Q1 FY23," said Yvonne McGill, chief financial officer, Dell Technologies. "We're optimistic about FY25 and are increasing our annual dividend by 20% – a testament to our confidence in the business and ability to generate strong cash flow."

Fourth Quarter Fiscal 2024 Financial Results

Three Months Ended


Fiscal Year Ended


February 2,
2024

February 3,
2023

Change

February 2,
2024

February 3,
2023

Change

(in millions, except per share amounts and percentages; unaudited)












Net revenue

$         22,318

$          25,039

(11) %

$         88,425

$        102,301

(14) %

Operating income

$           1,491

$            1,189

25 %

$           5,211

$            5,771

(10) %

Net income

$           1,158

$               606

91 %

$           3,195

$            2,422

32 %

Earnings per share - diluted

$             1.59

$              0.84

89 %

$             4.36

$              3.24

35 %












Non-GAAP operating income

$           2,139

$            2,170

(1) %

$           7,678

$            8,637

(11) %

Non-GAAP net income

$           1,610

$            1,322

22 %

$           5,245

$            5,727

(8) %

Adjusted free cash flow

$           1,010

$            2,267

(55) %

$           5,607

$            1,533

266 %

Non-GAAP earnings per share - diluted

$             2.20

$              1.80

22 %

$             7.13

$              7.61

(6) %

Information about Dell Technologies' use of non-GAAP financial information is provided under "Non-GAAP Financial Measures" below. All comparisons in this press release are year-over-year unless otherwise noted.

Infrastructure Solutions Group (ISG) delivered fourth quarter revenue of $9.3 billion, up 10% sequentially and down 6% year over year. Servers and networking revenue was $4.9 billion, with sequential growth driven primarily by AI-optimized servers. Storage revenue was $4.5 billion, up 16% sequentially with demand strength across the portfolio. Operating income was $1.4 billion. Full-year ISG revenue was $33.9 billion, down 12% year over year, and full-year operating income was $4.3 billion, down 15% year over year.

Client Solutions Group (CSG) delivered fourth quarter revenue of $11.7 billion, down 5% sequentially and 12% year over year. Commercial client revenue was $9.6 billion, and Consumer revenue was $2.2 billion. Operating income was $726 million. Full-year CSG revenue was $48.9 billion, down 16% year over year, and full-year operating income was $3.5 billion, down 8% year over year.

"Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "We've just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements."

Dell continues to expand its portfolio to help customers meet their performance, cost and security requirements across clouds, on premises and at the edge:

Operating Segments Results

Three Months Ended


Fiscal Year Ended


February 2,
2024

February 3,
2023

Change

February 2,
2024

February 3,
2023

Change

(in millions, except percentages; unaudited)

Infrastructure Solutions Group (ISG):










Net revenue:










Servers and networking

$     4,857

$    4,940

(2) %

$    17,624

$  20,398

(14) %

Storage

4,475

4,965

(10) %

16,261

17,958

(9) %

Total ISG net revenue

$     9,332

$    9,905

(6) %

$    33,885

$  38,356

(12) %












Operating Income:










ISG operating income

$     1,428

$    1,543

(7) %

$      4,286

$    5,045

(15) %

% of ISG net revenue

15.3 %

15.6 %


12.6 %

13.2 %

% of total reportable segment operating income

66 %

70 %


55 %

57 %













Client Solutions Group (CSG):










Net revenue:










Commercial

$     9,563

$  10,697

(11) %

$    39,814

$  45,556

(13) %

Consumer

2,152

2,664

(19) %

9,102

12,657

(28) %

Total CSG net revenue

$   11,715

$  13,361

(12) %

$    48,916

$  58,213

(16) %












Operating Income:










CSG operating income

$        726

$       671

8 %

$      3,512

$    3,824

(8) %

% of CSG net revenue

6.2 %

5.0 %


7.2 %

6.6 %

% of total reportable segment operating income

34 %

30 %


45 %

43 %

Conference call information
As previously announced, the company will hold a conference call to discuss its performance and financial guidance on Feb. 29 at 3:30 p.m. CST. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information prior to financial guidance may be downloaded from investors.delltechnologies.com. The conference call will be broadcast live over the internet and can be accessed at https://investors.delltechnologies.com/news-events/upcoming-events 

For those unable to listen to the live broadcast, the final remarks and presentation with financial guidance will be available following the broadcast, and an archived version will be available at the same location for one year.

Environmental, Social and Governance (ESG)
Our Environmental, Social and Governance (ESG) efforts focus on driving positive impact for people and our planet while delivering long-term value for our stakeholders. ESG resources can be accessed at https://www.dell.com/en-us/dt/corporate/social-impact/reporting/esg-governance.htm 

About Dell Technologies
Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry's broadest and most innovative technology and services portfolio for the data era.

Copyright © 2024 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

Non-GAAP Financial Measures:
This press release presents information about non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc., non-GAAP earnings per share attributable to Dell Technologies Inc. – diluted, free cash flow, and adjusted free cash flow which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the attached tables for each of the fiscal periods indicated.

Special Note on Forward-Looking Statements:
Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes.

Dell Technologies' results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: adverse global economic conditions and instability in financial markets; competitive pressures; Dell Technologies' reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies' ability to achieve favorable pricing from its vendors; Dell Technologies' execution of its strategy; Dell Technologies' ability to manage solutions and products and services transitions in an effective manner; Dell Technologies' ability to deliver high-quality products, software, and services; cyber attacks or other data security incidents; Dell Technologies' ability to successfully execute on strategic initiatives including acquisitions, divestitures or cost savings measures; Dell Technologies' foreign operations and ability to generate substantial non-U.S. net revenue; Dell Technologies' product, services, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies' sales channel partners; access to the capital markets by Dell Technologies or its customers; material impairment of the value of goodwill or intangible assets; adverse economic conditions and the effect of additional regulation on Dell Technologies' financial services activities; counterparty default risks; the loss by Dell Technologies of any contracts for ISG services and solutions and its ability to perform such contracts at their estimated costs; loss by Dell Technologies of government contracts; Dell Technologies' ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; disruptions in Dell Technologies' infrastructure; Dell Technologies' ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; expectations relating to environmental, social and governance (ESG) considerations; compliance requirements of changing environmental and safety laws, human rights laws, or other laws; the effect of armed hostilities, terrorism, natural disasters, or public health issues; the effect of global climate change and legal, regulatory, or market measures to address climate change; Dell Technologies' dependence on the services of Michael Dell and key employees; Dell Technologies' level of indebtedness; and business and financial factors and legal restrictions affecting continuation of Dell Technologies' quarterly cash dividend policy and dividend rate.

This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the SEC, including Dell Technologies' annual report on Form 10-K for the fiscal year ended February 3, 2023, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the SEC's website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties, and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.

DELL TECHNOLOGIES INC.

Consolidated Statements of Income and Related Financial Highlights

(in millions, except percentages; unaudited)


Three Months Ended


Fiscal Year Ended


February 2,
2024

February 3,
2023

Change

February 2,
2024

February 3,
2023

Change

Net revenue:










Products

$   16,149

$  19,038

(15) %

$   64,353

$  79,250

(19) %

Services

6,169

6,001

3 %

24,072

23,051

4 %

Total net revenue

22,318

25,039

(11) %

88,425

102,301

(14) %

Cost of net revenue:










Products

13,393

15,748

(15) %

53,316

66,029

(19) %

Services

3,609

3,535

2 %

14,240

13,586

5 %

Total cost of net revenue

17,002

19,283

(12) %

67,556

79,615

(15) %

Gross margin

5,316

5,756

(8) %

20,869

22,686

(8) %

Operating expenses:










Selling, general, and administrative

3,109

3,772

(18) %

12,857

14,136

(9) %

Research and development

716

795

(10) %

2,801

2,779

1 %

Total operating expenses

3,825

4,567

(16) %

15,658

16,915

(7) %

Operating income

1,491

1,189

25 %

5,211

5,771

(10) %

Interest and other, net

(203)

(266)

24 %

(1,324)

(2,546)

48 %

Income before income taxes

1,288

923

40 %

3,887

3,225

21 %

Income tax expense

130

317

(59) %

692

803

(14) %

Net income

1,158

606

91 %

3,195

2,422

32 %

Less: Net loss attributable to non-controlling interests

(2)

(8)

75 %

(16)

(20)

20 %

Net income attributable to Dell Technologies Inc.

$     1,160

$        614

89 %

$     3,211

$     2,442

31 %












Percentage of Total Net Revenue:










Gross margin

23.8 %

23.0 %


23.6 %

22.2 %

Selling, general, and administrative

13.9 %

15.1 %


14.5 %

13.9 %

Research and development

3.2 %

3.2 %


3.2 %

2.7 %

Operating expenses

17.1 %

18.3 %


17.7 %

16.6 %

Operating income

6.7 %

4.7 %


5.9 %

5.6 %

Income before income taxes

5.8 %

3.7 %


4.4 %

3.2 %

Net income

5.2 %

2.4 %


3.6 %

2.4 %

Income tax rate

10.1 %

34.3 %


17.8 %

24.9 %


Amounts are based on underlying data and may not visually foot due to rounding.

 

DELL TECHNOLOGIES INC.

Consolidated Statements of Financial Position

(in millions; unaudited)


February 2, 2024

February 3, 2023

ASSETS

Current assets:


Cash and cash equivalents

$                           7,366

$                           8,607

Accounts receivable, net of allowance of $71 and $78

9,343

12,482

Due from related party, net

—

378

Short-term financing receivables, net of allowance of $79 and $142

4,643

5,281

Inventories

3,622

4,776

Other current assets

10,957

10,827

Current assets held for sale

16

—

  Total current assets

35,947

42,351

Property, plant, and equipment, net

6,432

6,209

Long-term investments

1,316

1,518

Long-term financing receivables, net of allowance of $91 and $59

5,877

5,638

Goodwill

19,700

19,676

Intangible assets, net

5,701

6,468

Due from related party, net

—

440

Other non-current assets

7,116

7,311

Total assets

$                         82,089

$                         89,611




LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:


Short-term debt

$                           6,982

$                           6,573

Accounts payable

19,389

18,598

Due to related party

—

2,067

Accrued and other

6,805

8,874

Short-term deferred revenue

15,318

15,542

Total current liabilities

48,494

51,654

Long-term debt

19,012

23,015

Long-term deferred revenue

13,827

14,744

Other non-current liabilities

3,065

3,223

Total liabilities

84,398

92,636

Stockholders' equity (deficit):


Total Dell Technologies Inc. stockholders' equity (deficit)

(2,404)

(3,122)

Non-controlling interests

95

97

Total stockholders' equity (deficit)

(2,309)

(3,025)

Total liabilities and stockholders' equity

$                         82,089

$                         89,611

 

DELL TECHNOLOGIES INC.

Consolidated Statements of Cash Flows

(in millions; unaudited)


Three Months Ended

Fiscal Year Ended

February 2,
2024

February 3,
2023

February 2,
2024

February 3,
2023

Cash flows from operating activities:






Net income

$             1,158

$                 606

$              3,195

$              2,422

Adjustments to reconcile net income to net cash provided by
operating activities:

375

2,108

5,481

1,143

Change in cash from operating activities

1,533

2,714

8,676

3,565

Cash flows from investing activities:






Purchases of investments

(29)

(7)

(172)

(108)

Maturities and sales of investments

76

17

226

116

Capital expenditures and capitalized software development
costs

(727)

(759)

(2,756)

(3,003)

Acquisition of businesses and assets, net

1

(70)

(126)

(70)

Other

10

23

45

41

Change in cash from investing activities

(669)

(796)

(2,783)

(3,024)

Cash flows from financing activities:






Proceeds from the issuance of common stock

2

—

10

5

Repurchases of common stock

(878)

(165)

(2,080)

(2,883)

Repurchases of common stock for employee tax withholdings

(18)

(18)

(372)

(398)

Payments of dividends and dividend equivalents

(261)

(236)

(1,072)

(964)

Proceeds from debt

871

3,700

7,775

12,479

Repayments of debt

(1,480)

(1,746)

(11,246)

(9,825)

Debt-related costs and other, net

(55)

(22)

(109)

(39)

Change in cash from financing activities

(1,819)

1,513

(7,094)

(1,625)

Effect of exchange rate changes on cash, cash
equivalents, and restricted cash

14

239

(186)

(104)

Change in cash, cash equivalents, and restricted cash

(941)

3,670

(1,387)

(1,188)

Cash, cash equivalents, and restricted cash at beginning of the
period

8,448

5,224

8,894

10,082

Cash, cash equivalents, and restricted cash at end of the
period

$             7,507

$              8,894

$              7,507

$              8,894

 

DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited; continued on next page)


Three Months Ended


Fiscal Year Ended


February 2,
2024

February 3,
2023

Change

February 2,
2024

February 3,
2023

Change

Infrastructure Solutions Group (ISG):










Net revenue:










Servers and networking

$      4,857

$    4,940

(2) %

$   17,624

$  20,398

(14) %

Storage

4,475

4,965

(10) %

16,261

17,958

(9) %

Total ISG net revenue

$      9,332

$    9,905

(6) %

$   33,885

$  38,356

(12) %












Operating Income:










ISG operating income

$      1,428

$    1,543

(7) %

$     4,286

$    5,045

(15) %

% of ISG net revenue

15.3 %

15.6 %


12.6 %

13.2 %

% of total reportable segment operating income

66 %

70 %


55 %

57 %













Client Solutions Group (CSG):










Net revenue:










Commercial

$      9,563

$  10,697

(11) %

$   39,814

$  45,556

(13) %

Consumer

2,152

2,664

(19) %

9,102

12,657

(28) %

Total CSG net revenue

$    11,715

$  13,361

(12) %

$   48,916

$  58,213

(16) %












Operating Income:










CSG operating income

$         726

$       671

8 %

$     3,512

$    3,824

(8) %

% of CSG net revenue

6.2 %

5.0 %


7.2 %

6.6 %

% of total reportable segment operating income

34 %

30 %


45 %

43 %


Amounts are based on underlying data and may not visually foot due to rounding.

 

DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited; continued)


Three Months Ended

Fiscal Year Ended

February 2,
2024

February 3,
2023

February 2,
2024

February 3,
2023

Reconciliation to consolidated net revenue:





Reportable segment net revenue

$           21,047

$           23,266

$           82,801

$           96,569

Other businesses (a)

1,269

1,770

5,614

5,721

Unallocated transactions (b)

2

3

10

11

Total consolidated net revenue

$           22,318

$           25,039

$           88,425

$         102,301








Reconciliation to consolidated operating income:






Reportable segment operating income

$             2,154

$             2,214

$             7,798

$             8,869

Other businesses (a)

(17)

(48)

(129)

(240)

Unallocated transactions (b)

2

4

9

8

Impact of purchase accounting (c)

(4)

(11)

(14)

(44)

Amortization of intangibles

(206)

(238)

(819)

(970)

Transaction-related expenses (d)

(3)

(6)

(12)

(22)

Stock-based compensation expense (e)

(203)

(228)

(878)

(931)

Other corporate expenses (f)

(232)

(498)

(744)

(899)

Total consolidated operating income

$             1,491

$             1,189

$             5,211

$             5,771

_________________

(a)

Other businesses consists of: 1) Dell's resale of standalone VMware, Inc. products and services, "VMware Resale," 2) Secureworks, and 3) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively.

(b)

Unallocated transactions includes other corporate items that are not allocated to Dell Technologies' reportable segments.

(c)

Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.

(d)

Transaction-related expenses includes acquisition, integration, and divestiture related costs. From time to time, this category also may include transaction-related income related to divestitures of businesses or asset sales.

(e)

Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date.

(f)

Other corporate expenses includes severance, impairment charges, incentive charges related to equity investments, payroll taxes associated with stock-based compensation, facilities action, and other costs.  

SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES

These tables present information about the Company's non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc., non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, free cash flow and adjusted free cash flow, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A detailed discussion of Dell Technologies' reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented in "Management's Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures" in our periodic reports filed with the SEC. Dell Technologies encourages investors to review the non-GAAP discussion in these reports in conjunction with the presentation of non-GAAP financial measures.

DELL TECHNOLOGIES INC.

Selected Financial Measures

(in millions, except per share amounts and percentages; unaudited)


Three Months Ended


Fiscal Year Ended


February 2,
2024

February 3,
2023

%
Change

February 2,
2024

February 3,
2023

Change

Net revenue (a)

$    22,318

$   25,039

(11) %

$    88,425

$  102,301

(14) %

Non-GAAP gross margin

$      5,468

$     5,971

(8) %

$    21,444

$    23,427

(8) %

% of non-GAAP net revenue

24.5 %

23.8 %


24.3 %

22.9 %

Non-GAAP operating expenses

$      3,329

$     3,801

(12) %

$    13,766

$    14,790

(7) %

% of non-GAAP net revenue

14.9 %

15.1 %


15.6 %

14.5 %

Non-GAAP operating income

$      2,139

$     2,170

(1) %

$      7,678

$      8,637

(11) %

% of non-GAAP net revenue

9.6 %

8.7 %


8.7 %

8.4 %

Non-GAAP net income

$      1,610

$     1,322

22 %

$      5,245

$      5,727

(8) %

% of non-GAAP net revenue

7.2 %

5.3 %


5.9 %

5.6 %

Non-GAAP earnings per share - diluted

$        2.20

$       1.80

22 %

$        7.13

$        7.61

(6) %

____________________

(a)

Effective in the first quarter of Fiscal 2023, non-GAAP net revenue no longer differs from net revenue, the most comparable GAAP financial measure.

Amounts are based on underlying data and may not visually foot due to rounding.

 

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued on next page)


Three Months Ended


Fiscal Year Ended


February 2,
2024

February 3,
2023

%
Change

February 2,
2024

February 3,
2023

%
Change

Gross margin

$         5,316

$         5,756

(8) %

$       20,869

$       22,686

(8) %

Non-GAAP adjustments:










Amortization of intangibles

84

99


331

414

Impact of purchase accounting

—

—


—

2

Stock-based compensation expense

37

40


149

152

Other corporate expenses

31

76


95

173

Non-GAAP gross margin

$         5,468

$         5,971

(8) %

$       21,444

$       23,427

(8) %












Operating expenses

$         3,825

$         4,567

(16) %

$       15,658

$       16,915

(7) %

Non-GAAP adjustments:










Amortization of intangibles

(122)

(139)


(488)

(556)

Impact of purchase accounting

(4)

(11)


(14)

(42)

Transaction-related expenses

(3)

(6)


(12)

(22)

Stock-based compensation expense

(166)

(188)


(729)

(779)

Other corporate expenses

(201)

(422)


(649)

(726)

Non-GAAP operating expenses

$         3,329

$         3,801

(12) %

$       13,766

$       14,790

(7) %












Operating income

$         1,491

$         1,189

25 %

$         5,211

$         5,771

(10) %

Non-GAAP adjustments:










Amortization of intangibles

206

238


819

970

Impact of purchase accounting

4

11


14

44

Transaction-related expenses

3

6


12

22

Stock-based compensation expense

203

228


878

931

Other corporate expenses

232

498


744

899

Non-GAAP operating income

$         2,139

$         2,170

(1) %

$         7,678

$         8,637

(11) %












Net income

$         1,158

$            606

91 %

$         3,195

$         2,422

32 %

Non-GAAP adjustments:










Amortization of intangibles

206

238


819

970

Impact of purchase accounting

4

11


14

44

Transaction-related (income) expenses

(5)

(14)


49

(16)

Stock-based compensation expense

203

228


878

931

Other corporate expenses

232

392


744

1,812

Fair value adjustments on equity investments

(83)

9


(47)

206

Aggregate adjustment for income taxes

(105)

(148)


(407)

(642)

Non-GAAP net income

$         1,610

$         1,322

22 %

$         5,245

$         5,727

(8) %

 

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(unaudited; continued)


Three Months Ended


Fiscal Year Ended


February 2,
2024

February 3,
2023

%
Change

February 2,
2024

February 3,
2023

%
Change

Earnings per share attributable to Dell
Technologies, Inc. - diluted

$           1.59

$           0.84

89 %

$           4.36

$           3.24

35 %

Non-GAAP adjustments:










Amortization of intangibles

0.28

0.32


1.11

1.29

Impact of purchase accounting

0.01

0.01


0.02

0.06

Transaction-related (income) expenses     

(0.01)

(0.02)


0.07

(0.02)

Stock-based compensation expense

0.28

0.31


1.19

1.24

Other corporate expenses

0.32

0.53


1.01

2.41

Fair value adjustments on equity
investments

(0.11)

0.01


(0.06)

0.27

Aggregate adjustment for income taxes

(0.15)

(0.19)


(0.55)

(0.86)

Total non-GAAP adjustments attributable
to non-controlling interests

(0.01)

(0.01)


(0.02)

(0.02)

Non-GAAP earnings per share
attributable to Dell Technologies, Inc. -
diluted

$           2.20

$           1.80

22 %

$           7.13

$           7.61

(6) %

 

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)


Three Months Ended


Fiscal Year Ended


February 2,
2024

February 3,
2023

%
Change

February 2,
2024

February 3,
2023

%
Change

Cash flow from operations

$          1,533

$          2,714

(44) %

$          8,676

$          3,565

143 %

Non-GAAP adjustments:










Capital expenditures and capitalized
software development costs, net (a)     

(727)

(749)


(2,753)

(2,993)

Free cash flow

$             806

$          1,965

(59) %

$          5,923

$             572

935 %












Free cash flow

$            806

$          1,965

(59) %

$          5,923

$             572

935 %

Non-GAAP adjustments:










DFS financing receivables (b)

136

175


(309)

461

DFS operating leases (c)

68

127


(7)

500

Adjusted free cash flow

$          1,010

$          2,267

(55) %

$          5,607

$          1,533

266 %

____________________

(a)

Capital expenditures and capitalized software development costs is net of proceeds from sales of facilities, land, and other assets.

(b)

DFS financing receivables represents the operating cash flow impact from the change in financing receivables.

(c)

DFS operating leases represents the change in net carrying value of equipment for DFS operating leases.

 

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SOURCE Dell Technologies

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