ROUND ROCK, Texas, May 27, 2022 — Dell Technologies (NYSE: DELL) announced financial results for its fiscal 2023 first quarter. Revenue was a first quarter record of $26.1 billion, up 16%, with growth across Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The company generated record first quarter operating income of $1.6 billion, a 57% increase, and record non-GAAP operating income of $2.1 billion, up 21%. Net income from continuing operations was $1.1 billion, up 62%, and non-GAAP net income was $1.4 billion, up 36%, both driven by growth in operating income and lower interest expense due to reduced debt balances. Diluted earnings per share was $1.37, up 63%, and non-GAAP diluted earnings per share was $1.84, up 36%.
Dell Technologies ended the quarter with remaining performance obligations of $42 billion, up 14% year-over-year, deferred revenue of $27.4 billion, and cash and investments of $8.5 billion. Recurring revenue for the first quarter was approximately $5.3 billion, up 15%.
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.
Operating segments summary
Infrastructure Solutions Group delivered record first quarter revenue of $9.3 billion, up 16%. Storage revenue was $4.2 billion, up 9%, with demand across the company’s broad storage portfolio. Servers and networking revenue was $5 billion, up 22% year-over-year. Operating income was $1.1 billion or approximately 11.7% of Infrastructure Solutions Group revenue.
Key areas of innovation:
- More than 500 storage software advancements across Dell PowerStore, PowerMax and PowerFlex to help customers deliver faster insights, achieve better multi-cloud data control and increase cyber resiliency.
- APEX Cyber Recovery Services, the first in a series of APEX full stack solutions, offering customers a cloud experience and simplifying recovery from cyberattacks.
- A collaboration with Snowflake will connect on-premises data from Dell’s industry-leading enterprise storage portfolio with the Snowflake Data Cloud.
- Dell Telecom Multi-Cloud Foundation helps communications service providers (CSPs) build and deploy open, cloud-native networks faster with lower cost and complexity.
- Dell Validated Design for Retail Edge helps retailers simplify edge infrastructure and launch new applications for better customer experiences.
Client Solutions Group delivered record first quarter revenue of $15.6 billion, up 17% year-over-year. Performance was driven by continued strength in commercial PCs, with commercial PC revenue of $12 billion, a 22% increase year-over-year. Consumer revenue was $3.6 billion, a 3% increase year-over-year. Operating income was $1.1 billion, or approximately 7.2% of Client Solutions Group revenue.
Key areas of innovation:
- Dell Optimizer software, which is built into commercial PCs, integrates AI for increased privacy, connectivity and collaboration to provide greater intelligence for hybrid work styles.
- Latitude 9330, the world’s first laptop with a collaboration touchpad that lets users mute, turn video on/off, screen share and chat. Also announced the Latitude 5000 series, Dell’s most sustainable laptops yet, featuring the world’s most innovative use of sustainable materials.
- New Precision mobile workstations for creators, engineers and architects – including the Precision 5470, the world’s smallest, thinnest and most powerful 14” mobile workstation. New 16- and 17-inch workstations offer a new form factor for DDR5 memory that enables a thinner chassis design and makes systems more accessible for repairs.
- Asset Recovery Services expansion into 35 new countries across EMEA and APJ, includes new data sanitization offers and simplifies the asset disposal process of PCs, servers, peripherals and accessories.
- New Latitude, Precision and XPS devices now ship with 100% recyclable packaging that is also made from 100% recycled or renewable materials.
- “We followed a record FY22 with a record first quarter FY23. Revenue was $26.1 billion, up 16%, with growth across our business units,” said Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies. “We are built to outperform, in a balanced and consistent way across the company, as our customers invest in their digital futures and choose Dell as their trusted partner.”
- “Our first quarter – with record Q1 revenue, operating income and diluted EPS – demonstrates the benefits of having a strong, geographically and sector-diverse business covering the edge to the core data center to the cloud,” said Chuck Whitten, co-chief operating officer. “Plus we are positioned to pursue growth wherever it materializes in the IT market, given the predictability, durability and flexibility in our business.”
- “In our first quarter, we returned $1.75 billion to our shareholders through a combination of share repurchases and dividends,” said Tom Sweet, chief financial officer, Dell Technologies. “We are delivering long-term value by executing our strategy for growth, taking share, generating strong cash flow from operations and executing our capital allocation framework.”
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Source: Dell Technologies