2/29/20240001571996false00015719962024-02-292024-02-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549  
FORM 8-K

 CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 29, 2024
 ______________________
Dell Technologies Inc.
(Exact name of registrant as specified in its charter)
 ______________________
Delaware 001-37867 80-0890963
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
One Dell Way 
Round Rock,
Texas
78682
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (800) 289-3355
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class C Common Stock, par value $0.01 per shareDELLNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02    Results of Operations and Financial Condition.

On February 29, 2024, Dell Technologies Inc. (the “Company” or “Dell”) issued a press release announcing its financial results for its fiscal quarter and fiscal year ended February 2, 2024. A copy of the press release is furnished as Exhibit 99.1 to this current report.

In accordance with General Instruction B.2 to Form 8-K, the information contained in this Item 2.02 and in Exhibit 99.1 to this current report is being “furnished” with the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under such section. Further, such information shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, unless specifically identified as being incorporated therein by reference.

Item 9.01    Financial Statements and Exhibits.

(d)  Exhibits.

The following documents are herewith filed or furnished as exhibits to this report:
Exhibit
Number		  Description
  
104Cover Page Interactive Data File — the cover page XBRL tags are embedded within the Inline XBRL document.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 29, 2024Dell Technologies Inc.
By:/s/ Christopher Garcia
Christopher Garcia
Senior Vice President and Assistant Secretary
 (Duly Authorized Officer)
 

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Exhibit 99.1

 delltech-logoxprmxbluexrgba.jpg


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



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 — February 29, 2024

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.”

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Fourth Quarter Fiscal 2024 Financial Results
Three Months EndedFiscal Year Ended
February 2, 2024February 3, 2023ChangeFebruary 2, 2024February 3, 2023Change
(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:

•Expanded the Dell Generative AI Solutions portfolio with support for the AMD Instinct™ MI300X accelerator in Dell PowerEdge XE9680 servers and the new Dell Validated Design for Generative AI with AMD ROCm™ powered AI frameworks.
•Introduced new enterprise data storage advancements and planned validation with the NVIDIA DGX SuperPOD AI infrastructure, helping customers quickly access data for AI workloads with Dell PowerScale systems.
•Announced Dell will have the broadest portfolio of commercial AI laptops and mobile workstations, which feature built-in AI acceleration with the addition of the neural processing unit
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(NPU). New XPS systems also feature the NPU, helping to improve performance, productivity and collaboration.
•Forged partnership with Nokia to serve as its preferred infrastructure partner for Nokia AirFrame customers, transitioning them to Dell PowerEdge servers with Dell global services and support. Dell will also offer Nokia’s Digital Automation Cloud solution with Dell NativeEdge to provide a comprehensive, scalable solution for enterprises.

Operating Segments Results
Three Months EndedFiscal Year Ended
February 2, 2024February 3, 2023ChangeFebruary 2, 2024February 3, 2023Change
(in millions, except percentages; unaudited)
Infrastructure Solutions Group (ISG):
Net revenue:
Servers and networking$4,857$4,940 (2)%$17,624 $20,398 (14)%
Storage4,475 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 revenue15.3 %15.6 %12.6 %13.2 %
% of total reportable segment operating income66 %70 %55 %57 %
Client Solutions Group (CSG):
Net revenue:
Commercial$9,563 $10,697 (11)%$39,814 $45,556 (13)%
Consumer2,152 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 revenue6.2 %5.0 %7.2 %6.6 %
% of total reportable segment operating income34 %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.

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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.

Contacts
Investors: Investor_Relations@Dell.com
Media: Media.Relations@Dell.com
# # #

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
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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.

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DELL TECHNOLOGIES INC.
Consolidated Statements of Income and Related Financial Highlights
(in millions, except percentages; unaudited)
Three Months EndedFiscal Year Ended
February 2, 2024February 3, 2023ChangeFebruary 2, 2024February 3, 2023Change
Net revenue:
Products$16,149 $19,038 (15)%$64,353 $79,250 (19)%
Services6,169 6,001 3%24,072 23,051 4%
Total net revenue22,318 25,039 (11)%88,425 102,301 (14)%
Cost of net revenue:
Products13,393 15,748 (15)%53,316 66,029 (19)%
Services3,609 3,535 2%14,240 13,586 5%
Total cost of net revenue17,002 19,283 (12)%67,556 79,615 (15)%
Gross margin5,316 5,756 (8)%20,869 22,686 (8)%
Operating expenses:
Selling, general, and administrative3,109 3,772 (18)%12,857 14,136 (9)%
Research and development716 795 (10)%2,801 2,779 1%
Total operating expenses3,825 4,567 (16)%15,658 16,915 (7)%
Operating income1,491 1,189 25%5,211 5,771 (10)%
Interest and other, net(203)(266)24%(1,324)(2,546)48%
Income before income taxes1,288 923 40%3,887 3,225 21%
Income tax expense130 317 (59)%692 803 (14)%
Net income1,158 606 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 margin23.8 %23.0 %23.6 %22.2 %
Selling, general, and administrative13.9 %15.1 %14.5 %13.9 %
Research and development3.2 %3.2 %3.2 %2.7 %
Operating expenses17.1 %18.3 %17.7 %16.6 %
Operating income6.7 %4.7 %5.9 %5.6 %
Income before income taxes5.8 %3.7 %4.4 %3.2 %
Net income5.2 %2.4 %3.6 %2.4 %
Income tax rate10.1 %34.3 %17.8 %24.9 %

Amounts are based on underlying data and may not visually foot due to rounding.
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DELL TECHNOLOGIES INC.
Consolidated Statements of Financial Position
(in millions; unaudited)
February 2, 2024February 3, 2023
ASSETS
Current assets:
Cash and cash equivalents$7,366 $8,607 
Accounts receivable, net of allowance of $71 and $789,343 12,482 
Due from related party, net— 378 
Short-term financing receivables, net of allowance of $79 and $1424,643 5,281 
Inventories3,622 4,776 
Other current assets10,957 10,827 
Current assets held for sale16 — 
Total current assets35,947 42,351 
Property, plant, and equipment, net6,432 6,209 
Long-term investments1,316 1,518 
Long-term financing receivables, net of allowance of $91 and $595,877 5,638 
Goodwill19,700 19,676 
Intangible assets, net5,701 6,468 
Due from related party, net— 440 
Other non-current assets7,116 7,311 
Total assets$82,089 $89,611 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt$6,982 $6,573 
Accounts payable19,389 18,598 
Due to related party— 2,067 
Accrued and other6,805 8,874 
Short-term deferred revenue15,318 15,542 
Total current liabilities48,494 51,654 
Long-term debt19,012 23,015 
Long-term deferred revenue13,827 14,744 
Other non-current liabilities3,065 3,223 
Total liabilities84,398 92,636 
Stockholders’ equity (deficit):
Total Dell Technologies Inc. stockholders’ equity (deficit)(2,404)(3,122)
Non-controlling interests95 97 
Total stockholders’ equity (deficit)(2,309)(3,025)
Total liabilities and stockholders’ equity$82,089 $89,611 

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DELL TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(in millions; unaudited)

Three Months EndedFiscal Year Ended
February 2, 2024February 3, 2023February 2, 2024February 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 activities1,533 2,714 8,676 3,565 
Cash flows from investing activities:
Purchases of investments(29)(7)(172)(108)
Maturities and sales of investments76 17 226 116 
Capital expenditures and capitalized software development costs(727)(759)(2,756)(3,003)
Acquisition of businesses and assets, net1 (70)(126)(70)
Other10 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 stock2 — 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 debt871 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 cash14 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 period8,448 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 
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DELL TECHNOLOGIES INC.
Segment Information
(in millions, except percentages; unaudited; continued on next page)
Three Months EndedFiscal Year Ended
February 2, 2024February 3, 2023ChangeFebruary 2, 2024February 3, 2023Change
Infrastructure Solutions Group (ISG):
Net revenue:
Servers and networking$4,857$4,940 (2)%$17,624 $20,398 (14)%
Storage4,475 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 revenue15.3 %15.6 %12.6 %13.2 %
% of total reportable segment operating income66 %70 %55 %57 %
Client Solutions Group (CSG):
Net revenue:
Commercial$9,563 $10,697 (11)%$39,814 $45,556 (13)%
Consumer2,152 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 revenue6.2 %5.0 %7.2 %6.6 %
% of total reportable segment operating income34 %30 %45 %43 %

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



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DELL TECHNOLOGIES INC.
Segment Information
(in millions, except percentages; unaudited; continued)
Three Months EndedFiscal Year Ended
February 2, 2024February 3, 2023February 2, 2024February 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.
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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.

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DELL TECHNOLOGIES INC.
Selected Financial Measures
(in millions, except per share amounts and percentages; unaudited)
Three Months EndedFiscal Year Ended
February 2, 2024February 3, 2023% ChangeFebruary 2, 2024February 3, 2023Change
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 revenue24.5 %23.8 %24.3 %22.9 %
Non-GAAP operating expenses$3,329 $3,801 (12)%$13,766 $14,790 (7)%
% of non-GAAP net revenue14.9 %15.1 %15.6 %14.5 %
Non-GAAP operating income$2,139 $2,170 (1)%$7,678$8,637(11)%
% of non-GAAP net revenue9.6 %8.7 %8.7 %8.4 %
Non-GAAP net income $1,610 $1,322 22%$5,245 $5,727 (8)%
% of non-GAAP net revenue7.2 %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.
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DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited; continued on next page)
Three Months EndedFiscal Year Ended
February 2, 2024February 3, 2023% ChangeFebruary 2, 2024February 3, 2023% Change
Gross margin$5,316 $5,756 (8)%$20,869 $22,686 (8)%
Non-GAAP adjustments:
Amortization of intangibles84 99 331 414 
Impact of purchase accounting— — — 2 
Stock-based compensation expense37 40 149 152 
Other corporate expenses31 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 intangibles206 238 819 970 
Impact of purchase accounting4 11 14 44 
Transaction-related expenses3 6 12 22 
Stock-based compensation expense203 228 878 931 
Other corporate expenses232 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 intangibles206 238 819 970 
Impact of purchase accounting4 11 14 44 
Transaction-related (income) expenses(5)(14)49 (16)
Stock-based compensation expense203 228 878 931 
Other corporate expenses232 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)%



13

DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(unaudited; continued)
Three Months EndedFiscal Year Ended
February 2,
2024		February 3,
2023		% ChangeFebruary 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 intangibles0.28 0.32 1.11 1.29 
Impact of purchase accounting0.01 0.01 0.02 0.06 
Transaction-related (income) expenses(0.01)(0.02)0.07 (0.02)
Stock-based compensation expense0.28 0.31 1.19 1.24 
Other corporate expenses0.32 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)%



















14

DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited; continued)
Three Months EndedFiscal Year Ended
February 2,
2024		February 3,
2023		% ChangeFebruary 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.
15
v3.24.0.1
Cover Page
Feb. 29, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 29, 2024
Entity Registrant Name Dell Technologies Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37867
Entity Tax Identification Number 80-0890963
Entity Address, Address Line One One Dell Way
Entity Address, City or Town Round Rock,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 78682
City Area Code 800
Local Phone Number 289-3355
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class C Common Stock, par value $0.01 per share
Trading Symbol DELL
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001571996
Amendment Flag false
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