Dell Technologies fournit des résultats records du troisième trimestre 2022

ROUND ROCK, Texas, Nov. 23, 2021 /PRNewswire/ --

News summary

Full story Dell Technologies (NYSE: DELL) announces record financial results for its fiscal 2022 third quarter. The company generated record revenue of $28.4 billion, up 21%, driven by growth in all business units, customer segments and geographies, as well as broad strength across commercial PCs, servers and storage. Operating income was a third quarter record of $1.3 billion, a 19% increase over the same period the prior year, and non-GAAP operating income was a third quarter record of $2.9 billion, up 5%. Net income was $3.9 billion, non-GAAP net income was $2.0 billion and adjusted EBITDA was $3.4 billion. Net cash from operating activities was $3.3 billion. Diluted earnings per share was $4.87, up 351% and non-GAAP diluted earnings per share was $2.37, up 17%.

Third Quarter Fiscal 2022 Financial Results

Three Months Ended

Nine Months Ended

October 29, 2021

October 30, 2020

Change

October 29, 2021

October 30, 2020

Change

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

Total net revenue

$

28,394

$

23,482

21%

$

79,003

$

68,112

16%

Operating income

$

1,349

$

1,129

19%

$

4,096

$

2,967

38%

Net income

$

3,888

$

881

341%

$

5,706

$

2,162

164%

Earnings per share - diluted

$

4.87

$

1.08

351%

$

7.08

$

2.64

168%

Non-GAAP net revenue

$

28,405

$

23,521

21%

$

79,037

$

68,241

16%

Non-GAAP operating income

$

2,868

$

2,725

5%

$

8,393

$

7,504

12%

Non-GAAP net income

$

2,015

$

1,711

18%

$

5,745

$

4,475

28%

Adjusted EBITDA

$

3,410

$

3,231

6%

$

9,976

$

8,938

12%

Non-GAAP earnings per share - diluted

$

2.37

$

2.03

17%

$

6.75

$

5.28

28%

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.

Dell Technologies ended the quarter with remaining performance obligations of $47 billion, up 26%, deferred revenue of $31 billion, and cash and investments of $24.2 billion. The company has paid down a total of $15.9 billion of debt year-to-date and received an Investment Grade corporate family rating from all three of the major credit rating agencies.

Operating Segments Summary

Client Solutions Group revenue for the third quarter was up 35% to a record $16.5 billion. Operating income was a third quarter record of $1.1 billion, up 14%, and 6.9% of Client Solutions Group revenue. Commercial revenue was a record $12.3 billion, up an unprecedented 40%, and consumer revenue was also a record $4.3 billion, up 21%.

Key highlights:

Infrastructure Solutions Group revenue for the third quarter was $8.4 billion, up 5% and the third consecutive quarter of positive year-over-year revenue growth, as customers accelerate IT investments. Storage revenue was $3.9 billion, up 1%. Servers and networking revenue was $4.5 billion, up 9% for a fourth consecutive quarter of year-over-year growth. Operating income was $892 million or approximately 10.6% of Infrastructure Solutions Group revenue. Customer investments in IT infrastructure and digital transformation will continue to drive strong demand for compute and storage and create future growth opportunities for new innovations in multi-cloud, telecom and 5G.

Key highlights:

VMware revenue was $3.2 billion for the third quarter, up 10% driven by broad-based strength across a diverse product portfolio. Operating income for the quarter was $837 million, or 26.3% of VMware revenue.

Executive quotes:

Conference call information As previously announced, the Company will hold a conference call to discuss its third quarter performance today, Nov. 23, 2021 at 4:30 p.m. CST. The conference call will be broadcast live over the internet and can be accessed at https://investors.delltechnologies.com/events-and-presentations/upcoming-events

For those unable to listen to the live broadcast, an archived version will be available at the same location for one year.

Additional financial and operating information may be downloaded from https://investors.delltechnologies.com/financial-information/quarterly-results

Read our quarterly blog from Bill Scannell, Dell Technologies president of Global Sales & Customer Operations, to learn more about how we are helping customers with their digital transformations: https://www.delltechnologies.com/en-us/blog/accelerating-customers-digital-journeys-every-step-of-the-way/

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 © 2021 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.

1.IDC WW Quarterly Personal Computing Device (PCD) Tracker CY21Q3.

Non-GAAP Financial Measures: This press release presents information about Dell Technologies' non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to non-controlling interests, non-GAAP net income attributable to Dell Technologies Inc. - basic, non-GAAP net income attributable to Dell Technologies Inc. - diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, EBITDA, and adjusted EBITDA, 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: risks and uncertainties relating to our spin-off of VMware, Inc., including the potential effects on our business of the transaction; the effects of the COVID-19 pandemic; 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; adverse global economic conditions and instability in financial markets; Dell Technologies' execution of its growth, business and acquisition strategies; the success of Dell Technologies' cost efficiency measures; 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' 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; weak 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; compliance requirements of changing environmental and safety laws or other laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; Dell Technologies' dependence on the services of Michael Dell and key employees; and Dell Technologies' level of indebtedness.

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 January 29, 2021, 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.

Condensed Consolidated Statements of Income and Related Financial Highlights

(in millions, except percentages; unaudited)

Three Months Ended

Nine Months Ended

October 29, 2021

October 30, 2020

Change

October 29, 2021

October 30, 2020

Change

Net revenue:

Products

$

21,540

$

17,352

24%

$

58,968

$

50,127

18%

Services

6,854

6,130

12%

20,035

17,985

11%

Total net revenue

28,394

23,482

21%

79,003

68,112

16%

Cost of net revenue:

Products

17,552

13,789

27%

47,137

39,923

18%

Services

2,783

2,432

14%

8,164

6,919

18%

Total cost of net revenue

20,335

16,221

25%

55,301

46,842

18%

Gross margin

8,059

7,261

11%

23,702

21,270

11%

Operating expenses:

Selling, general, and administrative

5,293

4,772

11%

15,398

14,419

7%

Research and development

1,417

1,360

4%

4,208

3,884

8%

Total operating expenses

6,710

6,132

9%

19,606

18,303

7%

Operating income

1,349

1,129

19%

4,096

2,967

38%

Interest and other, net

3,436

273

NM

2,689

(929)

389%

Income before income taxes

4,785

1,402

241%

6,785

2,038

233%

Income tax expense (benefit)

897

521

72%

1,079

(124)

970%

Net income

3,888

881

341%

5,706

2,162

164%

Less: Net income attributable to non-controlling interests

45

49

(8)%

145

139

4%

Net income attributable to Dell Technologies Inc.

$

3,843

$

832

362%

$

5,561

$

2,023

175%

Percentage of Total Net Revenue:

Gross margin

28

%

31

%

30

%

31

%

Selling, general, and administrative

19

%

20

%

19

%

21

%

Research and development

5

%

6

%

5

%

6

%

Operating expenses

24

%

26

%

25

%

27

%

Operating income

5

%

5

%

5

%

4

%

Income before income taxes

17

%

6

%

9

%

3

%

Net income

14

%

4

%

7

%

3

%

Income tax rate

18.7

%

37.2

%

15.9

%

-6.1

%

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

 Dell Technologies Delivers Record Third Quarter Fiscal 2022 Results

DELL TECHNOLOGIES INC.

Consolidated Statements of Financial Position

(in millions; unaudited)

October 29, 2021

January 29, 2021

ASSETS

Current assets:

Cash and cash equivalents

$

22,406

$

14,201

Accounts receivable, net

14,177

12,788

Short-term financing receivables, net

4,970

5,155

Inventories, net

5,442

3,402

Other current assets

10,184

8,021

Total current assets

57,179

43,567

Property, plant, and equipment, net

6,925

6,431

Long-term investments

1,827

1,624

Long-term financing receivables, net

5,270

5,339

Goodwill

40,701

40,829

Intangible assets, net

12,319

14,429

Other non-current assets

11,456

11,196

Total assets

$

135,677

$

123,415

LIABILITIES, REDEEMABLE SHARES, AND STOCKHOLDERS' EQUITY

Current liabilities:

Short-term debt

$

16,280

$

6,362

Accounts payable

26,772

21,696

Accrued and other

10,081

9,549

Short-term deferred revenue

16,569

16,525

Total current liabilities

69,702

54,132

Long-term debt

31,699

41,622

Long-term deferred revenue

14,885

14,276

Other non-current liabilities

5,197

5,360

Total liabilities

121,483

115,390

Redeemable shares

472

Stockholders' equity:

Total Dell Technologies Inc. stockholders' equity

8,954

2,479

Non-controlling interests

5,240

5,074

Total stockholders' equity

14,194

7,553

Total liabilities, redeemable shares, and stockholders' equity

$

135,677

$

123,415

DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Cash Flows

(in millions; unaudited)

Three Months Ended

Nine Months Ended

October 29, 2021

October 30, 2020

October 29, 2021

October 30, 2020

Cash flows from operating activities:

Net income

$

3,888

$

881

$

5,706

$

2,162

Adjustments to reconcile net income to net cash provided by (used in) operating activities

(637)

2,113

1,508

3,368

Change in cash from operating activities

3,251

2,994

7,214

5,530

Cash flows from investing activities:

Purchases of investments

(50)

(122)

(320)

(296)

Maturities and sales of investments

119

27

454

98

Capital expenditures and capitalized software development costs

(799)

(480)

(2,056)

(1,584)

Acquisition of businesses and assets, net

(71)

(16)

(405)

Divestitures of businesses and assets, net

3,957

2,067

3,957

2,187

Other

14

14

34

26

Change in cash from investing activities

3,241

1,435

2,053

26

Cash flows from financing activities:

Proceeds from the issuance of common stock

140

168

326

389

Repurchases of parent common stock (a)

(18)

(35)

(240)

Repurchases of subsidiary common stock (a)

(196)

(299)

(1,174)

(890)

Proceeds from debt

9,102

2,925

13,037

14,772

Repayments of debt

(4,646)

(7,024)

(13,069)

(17,244)

Other

(99)

(80)

(113)

(270)

Change in cash from financing activities

4,283

(4,310)

(1,028)

(3,483)

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

(33)

(15)

(54)

(67)

Change in cash, cash equivalents, and restricted cash

10,742

104

8,185

2,006

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

12,627

12,053

15,184

10,151

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

$

23,369

$

12,157

$

23,369

$

12,157

_________________

(a)

Common stock repurchases are inclusive of employee tax withholding on stock-based compensation.

DELL TECHNOLOGIES INC.

Segment Information

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

Three Months Ended

Nine Months Ended

October 29, 2021

October 30, 2020

Change

October 29, 2021

October 30, 2020

Change

Infrastructure Solutions Group (ISG):

Net Revenue:

Servers and networking

$

4,533

$

4,164

9

%

$

13,104

$

12,118

8

%

Storage

3,895

3,860

1

%

11,667

11,682

%

Total ISG net revenue

$

8,428

$

8,024

5

%

$

24,771

$

23,800

4

%

Operating Income:

ISG operating income

$

892

$

882

1

%

$

2,650

$

2,587

2

%

% of ISG net revenue

11

%

11

%

11

%

11

%

% of total reportable segment operating income

31

%

32

%

32

%

35

%

Client Solutions Group (CSG):

Net Revenue:

Commercial

$

12,292

$

8,783

40

%

$

32,668

$

25,456

28

%

Consumer

4,254

3,503

21

%

11,446

9,137

25

%

Total CSG net revenue

$

16,546

$

12,286

35

%

$

44,114

$

34,593

28

%

Operating Income:

CSG operating income

$

1,147

$

1,002

14

%

$

3,232

$

2,309

40

%

% of CSG net revenue

7

%

8

%

7

%

7

%

% of total reportable segment operating income

40

%

37

%

38

%

31

%

VMware:

Net Revenue:

Total VMware net revenue

$

3,178

$

2,893

10

%

$

9,317

$

8,556

9

%

Operating Income:

VMware operating income

$

837

$

837

%

$

2,527

$

2,504

1

%

% of VMware net revenue

26

%

29

%

27

%

29

%

% of total reportable segment operating income

29

%

31

%

30

%

34

%

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

Nine Months Ended

October 29, 2021

October 30, 2020

October 29, 2021

October 30, 2020

Reconciliation to consolidated net revenue:

Reportable segment net revenue

$

28,152

$

23,203

$

78,202

$

66,949

Other businesses (a)

251

314

829

1,288

Unallocated transactions (b)

2

4

6

4

Impact of purchase accounting (c)

(11)

(39)

(34)

(129)

Total consolidated net revenue

$

28,394

$

23,482

$

79,003

$

68,112

Reconciliation to consolidated operating income:

Reportable segment operating income

$

2,876

$

2,721

$

8,409

$

7,400

Other businesses (a)

(9)

3

(17)

105

Unallocated transactions (b)

1

1

1

(1)

Impact of purchase accounting (c)

(17)

(49)

(62)

(165)

Amortization of intangibles

(694)

(845)

(2,114)

(2,547)

Transaction-related expenses (d)

(311)

(52)

(422)

(211)

Stock-based compensation expense (e)

(472)

(436)

(1,406)

(1,219)

Other corporate expenses (f)

(25)

(214)

(293)

(395)

Total consolidated operating income

$

1,349

$

1,129

$

4,096

$

2,967

_________________

(a)

Secureworks and Virtustream constitute Other businesses and do not meet the requirements for a reportable segment, either individually or collectively. The results of Other businesses are not material to the Company's overall results. On September 1, 2020, the Company completed the sale of RSA Security. On October 1, 2021, the Company completed the sale of Boomi. Prior to the divestitures, the results of Boomi and RSA Security were included within Other businesses.

(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.

(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 impairment charges, severance, facilities action, and other costs.

SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES

These tables present information about the Company's non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to non-controlling interests, non-GAAP net income attributable to Dell Technologies Inc. - basic, non-GAAP net income attributable to Dell Technologies Inc. - diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, EBITDA, and adjusted EBITDA, 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 Non-GAAP Financial Measures

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

Three Months Ended

Nine Months Ended

October 29, 2021

October 30, 2020

Change

October 29, 2021

October 30, 2020

Change

Non-GAAP net revenue

$

28,405

$

23,521

21

%

$

79,037

$

68,241

16

%

Non-GAAP gross margin

$

8,410

$

7,771

8

%

$

24,770

$

22,722

9

%

% of non-GAAP net revenue

30

%

33

%

31

%

33

%

Non-GAAP operating expenses

$

5,542

$

5,046

10

%

$

16,377

$

15,218

8

%

% of non-GAAP net revenue

20

%

21

%

21

%

22

%

Non-GAAP operating income

$

2,868

$

2,725

5

%

$

8,393

$

7,504

12

%

% of non-GAAP net revenue

10

%

12

%

11

%

11

%

Non-GAAP net income

$

2,015

$

1,711

18

%

$

5,745

$

4,475

28

%

% of non-GAAP net revenue

7

%

7

%

7

%

7

%

Adjusted EBITDA

$

3,410

$

3,231

6

%

$

9,976

$

8,938

12

%

% of non-GAAP net revenue

12

%

14

%

13

%

13

%

Non-GAAP earnings per share - diluted

$

2.37

$

2.03

17

%

$

6.75

$

5.28

28

%

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

Nine Months Ended

October 29, 2021

October 30, 2020

Change

October 29, 2021

October 30, 2020

Change

Net revenue

$

28,394

$

23,482

21%

$

79,003

$

68,112

16%

Non-GAAP adjustments:

Impact of purchase accounting

11

39

34

129

Non-GAAP net revenue

$

28,405

$

23,521

21%

$

79,037

$

68,241

16%

Gross margin

$

8,059

$

7,261

11%

$

23,702

$

21,270

11%

Non-GAAP adjustments:

Amortization of intangibles

275

375

826

1,122

Impact of purchase accounting

12

40

37

134

Transaction-related expenses

Stock-based compensation expense

62

51

183

141

Other corporate expenses

2

44

22

55

Non-GAAP gross margin

$

8,410

$

7,771

8%

$

24,770

$

22,722

9%

Operating expenses

$

6,710

$

6,132

9%

$

19,606

$

18,303

7%

Non-GAAP adjustments:

Amortization of intangibles

(419)

(470)

(1,288)

(1,425)

Impact of purchase accounting

(5)

(9)

(25)

(31)

Transaction-related expenses

(311)

(52)

(422)

(211)

Stock-based compensation expense

(410)

(385)

(1,223)

(1,078)

Other corporate expenses

(23)

(170)

(271)

(340)

Non-GAAP operating expenses

$

5,542

$

5,046

10%

$

16,377

$

15,218

8%

Operating income

$

1,349

$

1,129

19%

$

4,096

$

2,967

38%

Non-GAAP adjustments:

Amortization of intangibles

694

845

2,114

2,547

Impact of purchase accounting

17

49

62

165

Transaction-related expenses

311

52

422

211

Stock-based compensation expense

472

436

1,406

1,219

Other corporate expenses

25

214

293

395

Non-GAAP operating income

$

2,868

$

2,725

5%

$

8,393

$

7,504

12%

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)

Three Months Ended

Nine Months Ended

October 29, 2021

October 30, 2020

Change

October 29, 2021

October 30, 2020

Change

Net income

$

3,888

$

881

341%

$

5,706

$

2,162

164%

Non-GAAP adjustments:

Amortization of intangibles

694

845

2,114

2,547

Impact of purchase accounting

17

49

62

165

Transaction-related expenses

(3,607)

(286)

(3,508)

(247)

Stock-based compensation expense

472

436

1,406

1,219

Other corporate expenses

25

106

293

287

Fair value adjustments on equity investments

(27)

(489)

(352)

(591)

Aggregate adjustment for income taxes

553

169

24

(1,067)

Non-GAAP net income

$

2,015

$

1,711

18%

$

5,745

$

4,475

28%

Net income

$

3,888

$

881

341%

$

5,706

$

2,162

164%

Adjustments:

Interest and other, net

(3,436)

(273)

(2,689)

929

Income tax expense (benefit)

897

521

1,079

(124)

Depreciation and amortization

1,242

1,361

3,721

4,017

EBITDA

$

2,591

$

2,490

4%

$

7,817

$

6,984

12%

EBITDA

$

2,591

$

2,490

4%

$

7,817

$

6,984

12%

Adjustments:

Stock-based compensation expense

472

436

1,406

1,219

Impact of purchase accounting

11

39

38

129

Transaction-related expenses

311

52

422

211

Other corporate expenses

25

214

293

395

Adjusted EBITDA

$

3,410

$

3,231

6%

$

9,976

$

8,938

12%

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

For the Three Months Ended October 29, 2021

(in millions, except per share amounts; unaudited)

GAAP

Amortization of intangibles

Impact of purchase accounting

Transaction-related expenses

Stock-based compensation expense

Other corporate expenses

Fair value adjustments on equity investments

Aggregate adjustment for income taxes

Non-GAAP

Net income

$

3,888

694

17

(3,607)

472

25

(27)

553

$

2,015

Less: Net income attributable to non-controlling interests (a)

45

54

1

15

52

(2)

(22)

143

Net income attributable to Dell Technologies Inc. - basic

3,843

640

16

(3,622)

420

25

(25)

575

1,872

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. (b)

(2)

(3)

Net income attributable to Dell Technologies Inc. - diluted

$

3,841

$

1,869

Earnings per share - basic

$

5.02

$

2.44

Earnings per share - diluted

$

4.87

$

2.37

Weighted-average shares outstanding - basic

766

766

Weighted-average shares outstanding - diluted

788

788

_________________

(a)

Net income attributable to non-controlling interests is calculated by multiplying the minority interest percentage of VMware, Inc. and SecureWorks Corp. by their respective non-GAAP net income adjustments for the period presented.

(b)

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings per share of Dell Technologies Inc. and is calculated by multiplying the difference between VMware, Inc.'s basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by Dell Technologies Inc.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

For the Nine Months Ended October 29, 2021

(in millions, except per share amounts; unaudited)

GAAP

Amortization of intangibles

Impact of purchase accounting

Transaction-related expenses

Stock-based compensation expense

Other corporate expenses

Fair value adjustments on equity investments

Aggregate adjustment for income taxes

Non-GAAP

Net income

$

5,706

2,114

62

(3,508)

1,406

293

(352)

24

$

5,745

Less: Net income attributable to non-controlling interests (a)

145

162

3

24

162

5

(67)

434

Net income attributable to Dell Technologies Inc. - basic

5,561

1,952

59

(3,532)

1,244

293

(357)

91

5,311

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. (b)

(7)

(12)

Net income attributable to Dell Technologies Inc. - diluted

$

5,554

$

5,299

Earnings per share - basic

$

7.30

$

6.97

Earnings per share - diluted

$

7.08

$

6.75

Weighted-average shares outstanding - basic

762

762

Weighted-average shares outstanding - diluted

785

785

_________________

(a)

Net income attributable to non-controlling interests is calculated by multiplying the minority interest percentage of VMware, Inc. and SecureWorks Corp. by their respective non-GAAP net income adjustments for the period presented.

(b)

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings per share of Dell Technologies Inc. and is calculated by multiplying the difference between VMware, Inc.'s basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by Dell Technologies Inc.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

For the Three Months Ended October 30, 2020

(in millions, except per share amounts; unaudited)

GAAP

Amortization of intangibles

Impact of purchase accounting

Transaction-related expenses

Stock-based compensation expense

Other corporate expenses

Fair value adjustments on equity investments

Aggregate adjustment for income taxes

Non-GAAP

Net income

$

881

845

49

(286)

436

106

(489)

169

$

1,711

Less: Net income attributable to non-controlling interests (a)

49

63

3

5

61

9

(34)

(13)

143

Net income attributable to Dell Technologies Inc. - basic

832

782

46

(291)

375

97

(455)

182

1,568

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. (b)

(3)

(4)

Net income attributable to Dell Technologies Inc. - diluted

$

829

$

1,564

Earnings per share - basic

$

1.11

$

2.10

Earnings per share - diluted

$

1.08

$

2.03

Weighted-average shares outstanding - basic

747

747

Weighted-average shares outstanding - diluted

771

771

_________________

(a)

Net income attributable to non-controlling interests is calculated by multiplying the minority interest percentage of VMware, Inc. and SecureWorks Corp. by their respective non-GAAP net income adjustments for the period presented.

(b)

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings per share of Dell Technologies Inc. and is calculated by multiplying the difference between VMware, Inc.'s basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by Dell Technologies Inc.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

For the Nine Months Ended October 30, 2020

(in millions, except per share amounts; unaudited)

GAAP

Amortization of intangibles

Impact of purchase accounting

Transaction-related expenses

Stock-based compensation expense

Other corporate expenses

Fair value adjustments on equity investments

Aggregate adjustment for income taxes

Non-GAAP

Net income

$

2,162

2,547

165

(247)

1,219

287

(591)

(1,067)

$

4,475

Less: Net income attributable to non-controlling interests (a)

139

187

10

20

172

9

(35)

(77)

425

Net income attributable to Dell Technologies Inc. - basic

2,023

$

2,360

$

155

$

(267)

$

1,047

$

278

$

(556)

$

(990)

4,050

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. (b)

(8)

(13)

Net income attributable to Dell Technologies Inc. - diluted

$

2,015

$

4,037

Earnings per share - basic

$

2.73

$

5.46

Earnings per share - diluted

$

2.64

$

5.28

Weighted-average shares outstanding - basic

742

742

Weighted-average shares outstanding - diluted

764

764

_________________

(a)

Net income attributable to non-controlling interests is calculated by multiplying the minority interest percentage of VMware, Inc. and SecureWorks Corp. by their respective non-GAAP net income adjustments for the period presented.

(b)

Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings per share of Dell Technologies Inc. and is calculated by multiplying the difference between VMware, Inc.'s basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by Dell Technologies Inc.

SOURCE Dell Technologies

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