Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2024 first quarter. Revenue was$20.9 billion, down 20%. The company generated operating income of$1.1 billionand non-GAAP operating income of$1.6 billion, down 31% and 25%, respectively. Diluted earnings per share was$0.79, and non-GAAP diluted earnings per share was$1.31, down 42% and 29%, respectively. Cash flow from operations was$1.8 billion.

"We executed well against a challenging economic backdrop," said Chuck Whitten, co-chief operating officer, Dell Technologies. "We maintained pricing discipline, reduced operating expenses, and our supply chain continued to perform well after normalizing ahead of competitors. We announced a record number of innovations, making good on our promise to extend Dell APEX as-a-Service capabilities across our full portfolio and simplifying multicloud and edge computing for our customers."

Dell ended the quarter with remaining performance obligations of$39 billion, recurring revenue of$5.6 billion, up 6%, and deferred revenue of$29.7 billion, up 8%, due to increases in service and software maintenance agreements. Cash and investments were$9.2 billion, and the company returned$527 million to shareholders in the first quarter through share repurchases and dividends.

"We continue to create value for stakeholders, with strong first quarter cash flow from operations of$1.8 billion," said Tom Sweet, chief financial officer, Dell Technologies. "We've returned$5 billion to shareholders over the last six quarters, well ahead of our free cash flow return target, and we continue to invest in innovation that will fuel our growth."

First Quarter Fiscal 2024 Financial Results

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 Groupdelivered first quarter revenue of$7.6 billion, down 18%. Storage revenue was$3.8 billion, with demand growth in the company's software-defined storage and leading midrange storage array. Servers and networking revenue was$3.8 billion, with demand growth in AI optimized high value workload servers. Operating income was$740 million, or approximately 10% of Infrastructure Solutions Group revenue.

Client Solutions Groupdelivered first quarter revenue of$12 billion, down 23%. Commercial revenue was$9.9 billion, and Consumer revenue was$2.1 billion. Operating income was$892 million, or approximately 7% of Client Solutions Group revenue. 

Key areas of innovation:

• Multicloud: Introducednew cloud platforms withMicrosoft, Red Hat and VMwarethat bring cloud operating models on premises, and announced storage for public cloud withAWS and Microsoftthat brings enterprise block and file storage capabilities to public cloud.
• Artificial Intelligence: AnnouncedProject Helix, making Dell the first to collaborate with NVIDIA on full-stack solutions that help customers quickly and securely deploy generative AI on-premises at scale using their own proprietary data.
• As a Service: Addedcompute and PCaaS and managed device services for clientto Dell APEX, making the breadth of Dell's portfolio available as a service or subscription.
• Edge: Introduced Dell NativeEdge, an edge software platform that helps customers manage, simplify and secure their entire edge estate with a single solution.
• Cybersecurity: AnnouncedProject Fort Zero, which will make Dell the first company to deliver end-to-end Zero Trust with a fully integrated Advanced Zero Trust private cloud solution to be validated by the U.S. Department of Defense.

Operating Segments Results

Conference call information

As previously announced, the company will hold a conference call to discuss its performance and financial guidance on June 1, 2023, at 3:30 p.m. CDT. 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 athttps://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.

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. The FY23 ESG report will be published in June, and the company will hold its annual investor conference call to discuss its ESG strategy on July 27. ESG resources can be accessed athttps://www.dell.com/en-us/dt/corporate/social-impact/reporting/esg-governance.htm.

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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 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, and non-GAAP earnings per share attributable to Dell Technologies Inc. -diluted, 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' ability to achieve  the intended benefits of its continuing strategic relationship with VMware, Inc.; 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; 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; 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 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.