Dell Technologies Delivers Fourth Quarter and Full-Year Fiscal

Dell Technologies Delivers Fourth Quarter and Full-Year Fiscal 2022 Financial Results

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 Dell Technologies Inc. - basic and diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, EBITDA, 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			Fiscal Year Ended
	January 28, 2022	January 29, 2021	Change	January 28, 2022	January 29, 2021	Change
Non-GAAP net revenue	$ 28,000	$ 24,176	16%	$ 101,229	$ 86,776	17%
Non-GAAP gross margin	$ 5,818	$ 5,791	—%	$ 22,684	$ 21,233	7%
% of non-GAAP net revenue	21 %	24 %		22 %	24 %
Non-GAAP operating expenses	$ 3,627	$ 3,621	—%	$ 14,899	$ 14,284	4%
% of non-GAAP net revenue	13 %	15 %		15 %	16 %
Non-GAAP operating income	$ 2,191	$ 2,170	1%	$ 7,785	$ 6,949	12%
% of non-GAAP net revenue	8 %	9 %		8 %	8 %
Non-GAAP net income	$ 1,390	$ 1,362	2%	$ 4,924	$ 3,746	31%
% of non-GAAP net revenue	5 %	6 %		5 %	4 %
Adjusted EBITDA	$ 2,686	$ 2,620	3%	$ 9,660	$ 8,645	12%
% of non-GAAP net revenue	10 %	11 %		10 %	10 %
Non-GAAP earnings per share - diluted	$ 1.72	$ 1.76	(2)%	$ 6.22	$ 4.88	27%

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



DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued on next page)

	Three Months Ended			Fiscal Year Ended
	January 28, 2022	January 29, 2021	Change	January 28, 2022	January 29, 2021	Change
Net revenue	$ 27,992	$ 24,150	16%	$ 101,197	$ 86,670	17%
Non-GAAP adjustments:
Impact of purchase accounting	8	26		32	106
Non-GAAP net revenue	$ 28,000	$ 24,176	16%	$ 101,229	$ 86,776	17%

Gross margin	$ 5,618	$ 5,524	2%	$ 21,891	$ 20,140	9%
Non-GAAP adjustments:
Amortization of intangibles	150	213		598	853
Impact of purchase accounting	8	25		35	109
Stock-based compensation expense	37	22		133	75
Other corporate expenses	5	7		27	56
Non-GAAP gross margin	$ 5,818	$ 5,791	—%	$ 22,684	$ 21,233	7%

Operating expenses	$ 4,009	$ 4,101	(2)%	$ 17,232	$ 16,455	5%
Non-GAAP adjustments:
Amortization of intangibles	(173)	(314)		(1,043)	(1,280)
Impact of purchase accounting	(12)	(11)		(32)	(35)
Transaction-related expenses	22	(19)		(273)	(124)
Stock-based compensation expense	(179)	(115)		(675)	(412)
Other corporate expenses	(40)	(21)		(310)	(320)
Non-GAAP operating expenses	$ 3,627	$ 3,621	—%	$ 14,899	$ 14,284	4%

Operating income	$ 1,609	$ 1,423	13%	$ 4,659	$ 3,685	26%
Non-GAAP adjustments:
Amortization of intangibles	323	527		1,641	2,133
Impact of purchase accounting	20	36		67	144
Transaction-related (income) expenses	(22)	19		273	124
Stock-based compensation expense	216	137		808	487
Other corporate expenses	45	28		337	376
Non-GAAP operating income	$ 2,191	$ 2,170	1%	$ 7,785	$ 6,949	12%



DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued)

	Three Months Ended			Fiscal Year Ended
	January 28, 2022	January 29, 2021	Change	January 28, 2022	January 29, 2021	Change
Net income (loss) from continuing operations	$ (29)	$ 695	(104)%	$ 4,942	$ 2,245	120%
Non-GAAP adjustments:
Amortization of intangibles	323	527		1,641	2,133
Impact of purchase accounting	20	36		67	144
Transaction-related (income) expenses	1,492	19		(2,143)	(332)
Stock-based compensation expense	216	137		808	487
Other corporate expenses	45	28		337	268
Fair value adjustments on equity investments	(192)	(16)		(572)	(427)
Aggregate adjustment for income taxes	(485)	(64)		(156)	(772)
Non-GAAP net income	$ 1,390	$ 1,362	2%	$ 4,924	$ 3,746	31%

Net income (loss) from continuing operations attributable to Dell Technologies Inc.	$ (28)	$ 697	(104)%	$ 4,948	$ 2,249	120%
Non-GAAP adjustments:
Amortization of intangibles	323	527		1,641	2,133
Impact of purchase accounting	20	36		67	144
Transaction-related (income) expenses	1,492	19		(2,143)	(332)
Stock-based compensation expense	216	137		808	487
Other corporate expenses	45	28		337	268
Fair value adjustments on equity investments	(192)	(16)		(572)	(427)
Aggregate adjustment for income taxes	(485)	(64)		(156)	(772)
Total non-GAAP adjustments attributable to non-controlling interests	(1)	(2)		(7)	(6)
Non-GAAP net income attributable to Dell Technologies Inc.	$ 1,390	$ 1,362	2%	$ 4,923	$ 3,744	31%

Net income (loss) from continuing operations	$ (29)	$ 695	(104)%	$ 4,942	$ 2,245	120%
Adjustments:
Interest and other, net	1,657	475		(1,264)	1,339
Income tax expense (benefit)	(19)	253		981	101
Depreciation and amortization	830	987		3,547	3,867
EBITDA	$ 2,439	$ 2,410	1%	$ 8,206	$ 7,552	9%

EBITDA	$ 2,439	$ 2,410	1%	$ 8,206	$ 7,552	9%
Adjustments:
Stock-based compensation expense	216	137		808	487
Impact of purchase accounting	8	26		36	106
Transaction-related (income) expenses	(22)	19		273	124
Other corporate expenses	45	28		337	376
Adjusted EBITDA	$ 2,686	$ 2,620	3%	$ 9,660	$ 8,645	12%



DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages and per share amounts; unaudited; continued)

	Three Months Ended			Fiscal Year Ended
	January 28, 2022	January 29, 2021	Change	January 28, 2022	January 29, 2021	Change

*Earnings per share from continuing operations attributable to Dell Technologies Inc.*
Net income (loss) from continuing operations attributable to Dell Technologies Inc. - basic	$ (28)	$ 697		$ 4,948	$ 2,249
Weighted-average shares outstanding — basic	763	750		762	744
Earnings (loss) per share attributable to Dell Technologies Inc. - basic	$ (0.04)	$ 0.93	(104)%	$ 6.49	$ 3.02	115%

Net income (loss) from continuing operations attributable to Dell Technologies Inc. - diluted	$ (28)	$ 697		$ 4,948	$ 2,249
Weighted-average shares outstanding — diluted	763	776		791	767
Earnings (loss) per share attributable to Dell Technologies Inc. — diluted:	$ (0.04)	$ 0.90	(104)%	$ 6.26	$ 2.93	114%

*Earnings per share from discontinued operations attributable to Dell Technologies Inc.*
Net income from discontinued operations attributable to Dell Technologies Inc. - basic	$ 30	$ 530		$ 615	$ 1,001
Weighted-average shares outstanding — basic	763	750		762	744
Earnings per share attributable to Dell Technologies Inc. - basic	$ 0.04	$ 0.71	(94)%	$ 0.81	$ 1.35	(40)%
Incremental dilution from VMware, Inc. attributable to Dell Technologies	—	(5)		(7)	(13)
Net income from discontinued operations attributable to Dell Technologies Inc. - diluted	$ 30	$ 525		$ 608	$ 988
Weighted-average shares outstanding — diluted	763	776		791	767
Earnings per share attributable to Dell Technologies Inc. — diluted	$ 0.04	$ 0.67	(94)%	$ 0.76	$ 1.29	(41)%

*Non-GAAP earnings per share attributable to Dell Technologies Inc.*
Non-GAAP net income attributable to Dell Technologies Inc. - basic	$ 1,390	$ 1,362		$ 4,923	$ 3,744
Weighted-average shares outstanding — basic	763	750		762	744
Earnings per share attributable to Dell Technologies Inc. - basic	$ 1.82	$ 1.82	—%	$ 6.46	$ 5.03	28%

Non-GAAP net income attributable to Dell Technologies Inc. - diluted	$ 1,390	$ 1,362		$ 4,923	$ 3,744
Weighted-average shares outstanding — diluted	810	776		791	767
Earnings per share attributable to Dell Technologies Inc. — diluted	$ 1.72	$ 1.76	(2)%	$ 6.22	$ 4.88	27%

Amounts may not visually recalculate due to rounding.

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