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Dell Technologies Delivers Record Third Quarter Fiscal 2022 Results | Dell Technologies
News summary
- Best third quarter in
Dell Technologies history, driven by robust demand, durable competitive advantages and strong execution - Record third quarter revenue of
$28.4 billion , up 21% - Third quarter diluted earnings per share of
$4.87 , non-GAAP diluted earnings per share of$2.37
Full story
Third Quarter Fiscal 2022 Financial Results
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
|
Change |
|
|
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
Operating Segments Summary
Client Solutions Group revenue for the third quarter was up 35% to a record
Key highlights:
- Continued growth in high-value segments, including commercial PCs, high-end consumer and gaming – which will drive long-term profitable share gains.
- Achieved highest year-over-year PC share gain in Dell’s history for calendar third quarter, with shipments up 26.6% and global PC share up 3.0 points to 17.4%.1
- Announced new Latitude Rugged notebooks – including the industry’s smallest 5G-capable 13″ fully-rugged laptop.
- Timed to the 25th anniversary of
Alienware – released the redesigned Alienware Aurora, the pinnacle of gaming desktop experiences. With a special focus on airflow and thermals, the open-air design provides better accessibility and improved performance – enriching the gaming experience in every possible way.
Infrastructure Solutions Group revenue for the third quarter was
Key highlights:
- Introduced updates to the network-attached storage (NAS) portfolio, including new Dell EMC PowerScale systems and software enhancements, all focused on providing customers with the flexible and secure consumption and management of unstructured data.
- Launched the industry’s first end-to-end NVMe/TCP solution, featuring
SmartFabric Storage Software , which provides the intelligence for automated storage connectivity at scale. - Announced edge innovations across the portfolio to help organizations simplify deployments and capture more value from data generated and processed outside the traditional data center and public cloud.
- Introduced new telecom software, solutions and services to help communications service providers (CSPs) accelerate their open, cloud-native network deployments and create new revenue opportunities at the edge.
- Announced APEX Cloud Services with VMware Cloud, which gives organizations the ability to move workloads across multiple cloud environments and scale resources quickly with predictable pricing and transparent costs.
Executive quotes:
- “We continue to deliver strong results, with more than
$13 billion in cash flow from operations on a trailing-twelve-month basis,” saidTom Sweet , chief financial officer,Dell Technologies . “The digital trends are tailwinds for our business, and along with our strategy and financial flexibility, lead us to be optimistic about our long-term growth prospects.”
- “Technology is more essential today than ever before, and we are clearly winning in our core, keeping us at the center of customers’ IT and digital agendas,” said
Jeff Clarke , vice chairman and co-chief operating officer,Dell Technologies . “Our product, global operations and sales teams did an outstanding job this quarter as we shipped a record number of products and delivered record revenue of$28.4 billion .”
- “We’re three quarters into what will prove to be a historic year for Dell, and we are just beginning to write the next chapter of the
Dell Technologies story,” saidChuck Whitten , co-chief operating officer,Dell Technologies . “We are uniquely positioned in the data era, with durable advantages and market-leading positions. Our strategy is focused on growing our core business and in adjacent multi-billion-dollar markets including multi-cloud, edge, telecom and as-a-Service.”
Conference call information
As previously announced, the Company will hold a conference call to discuss its third quarter performance today,
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
About
Copyright © 2021 Dell Inc. or its subsidiaries. All Rights Reserved.
1. IDC WW Quarterly Personal Computing Device (PCD) Tracker CY21Q3.
Non-GAAP Financial Measures:
This press release presents information about
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
This list of risks, uncertainties, and other factors is not complete.
Condensed Consolidated Statements of Income and Related Financial Highlights (in millions, except percentages; unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
|
Change |
|
|
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 |
$ |
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. |
Consolidated Statements of Financial Position (in millions; unaudited) |
|||||||
|
|
||||||
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 |
|||||
|
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: |
|||||||
|
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 |
Condensed Consolidated Statements of Cash Flows (in millions; unaudited) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
|
|
|
||||||||||||
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. |
Segment Information (in millions, except percentages; unaudited; continued on next page) |
|||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||
|
|
Change |
|
|
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 |
% |
|||||||||||||
|
|||||||||||||||||||||
Net Revenue: |
|||||||||||||||||||||
Total |
$ |
3,178 |
$ |
2,893 |
10 |
% |
$ |
9,317 |
$ |
8,556 |
9 |
% |
|||||||||
Operating Income: |
|||||||||||||||||||||
|
$ |
837 |
$ |
837 |
— |
% |
$ |
2,527 |
$ |
2,504 |
1 |
% |
|||||||||
% of |
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. |
Segment Information (in millions, except percentages; unaudited; continued) |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
|
|
|
||||||||||||
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 |
(b) |
Unallocated transactions includes other corporate items that are not allocated to |
(c) |
Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the |
(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
Selected Non-GAAP Financial Measures (in millions, except per share amounts and percentages; unaudited) |
|||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||
|
|
Change |
|
|
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. |
Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued on next page) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
|
Change |
|
|
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% |
Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
|
Change |
|
|
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% |
Reconciliation of Selected Non-GAAP Financial Measures For the Three Months Ended (in millions, except per share amounts; unaudited) |
||||||||||||||||||||||||||||
GAAP |
Amortization of |
Impact of |
Transaction- |
Stock-based |
Other |
Fair value |
Aggregate |
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 |
3,843 |
640 |
16 |
(3,622) |
420 |
25 |
(25) |
575 |
1,872 |
|||||||||||||||||||
Incremental dilution from |
(2) |
(3) |
||||||||||||||||||||||||||
Net income attributable to |
$ |
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 |
(b) |
Incremental dilution from |
Reconciliation of Selected Non-GAAP Financial Measures For the Nine Months Ended (in millions, except per share amounts; unaudited) |
||||||||||||||||||||||||||||
GAAP |
Amortization of |
Impact of |
Transaction- |
Stock-based |
Other |
Fair value |
Aggregate |
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 |
5,561 |
1,952 |
59 |
(3,532) |
1,244 |
293 |
(357) |
91 |
5,311 |
|||||||||||||||||||
Incremental dilution from |
(7) |
(12) |
||||||||||||||||||||||||||
Net income attributable to |
$ |
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 |
(b) |
Incremental dilution from |
Reconciliation of Selected Non-GAAP Financial Measures For the Three Months Ended (in millions, except per share amounts; unaudited) |
||||||||||||||||||||||||||||
GAAP |
Amortization of |
Impact of |
Transaction- |
Stock-based |
Other |
Fair value |
Aggregate |
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 |
832 |
782 |
46 |
(291) |
375 |
97 |
(455) |
182 |
1,568 |
|||||||||||||||||||
Incremental dilution from |
(3) |
(4) |
||||||||||||||||||||||||||
Net income attributable to |
$ |
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 |
(b) |
Incremental dilution from |
Reconciliation of Selected Non-GAAP Financial Measures For the Nine Months Ended (in millions, except per share amounts; unaudited) |
|||||||||||||||||||||||||||||||||||
GAAP |
Amortization of |
Impact of |
Transaction- |
Stock-based |
Other |
Fair value |
Aggregate |
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 |
2,023 |
$ |
2,360 |
$ |
155 |
$ |
(267) |
$ |
1,047 |
$ |
278 |
$ |
(556) |
$ |
(990) |
4,050 |
|||||||||||||||||||
Incremental dilution from |
(8) |
(13) |
|||||||||||||||||||||||||||||||||
Net income attributable to |
$ |
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 |
(b) |
Incremental dilution from |
View original content:https://www.prnewswire.com/news-releases/dell-technologies-delivers-record-third-quarter-fiscal-2022-results-301431148.html
SOURCE
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