Dell Technologies today announced the third-quarter financial report for the 2022 fiscal year. The report shows that Dell Technologies’ total net revenue in the third fiscal quarter was US$28.394 billion, an increase of 21% compared to US$23.482 billion in the same period last year; net profit was US$ 3.888 billion, an increase of 341% compared to US$881 million in the same period last year.
Not in accordance with US GAAP, Dell Technologies’ adjusted total net revenue for the third fiscal quarter was US$28.405 billion, an increase of 21% compared to US$23.521 billion in the same period last year; adjusted net profit was US$2.015 billion, compared with the same period last year. An increase of 18% compared to US$1.711 billion.
Dell's adjusted revenue and earnings per share in the third fiscal quarter exceeded Wall Street analysts' previous expectations, driving its after-hours stock price up nearly 2%.
Performance summary
In the fiscal quarter ending October 29, 2021, Dell Technologies’ net profit was US$3.888 billion, an increase of 341% compared to US$881 million in the same period last year; diluted earnings per share was US$4.87, compared with 1.08 in the same period last year. The dollar increased by 351% compared to that. Not in accordance with US GAAP (excluding intangible asset amortization expenses, tax effects, equity incentive expenses and other one-off items), Dell Technologies’ adjusted net profit for the third fiscal quarter was US$2.015 billion, compared with 1.711 billion in the same period last year. The dollar increased by 18%; adjusted earnings per share was 2.37 US dollars, an increase of 17% compared with 2.03 US dollars in the same period last year, exceeding analyst expectations. According to data provided by the Yahoo Finance Channel, 11 analysts had previously expected on average that Dell Technologies’ adjusted earnings per share in the third fiscal quarter would reach US$2.18.
Dell Technologies' total net revenue in the third fiscal quarter was US$28.394 billion, an increase of 21% compared to US$23.482 billion in the same period last year. Not in accordance with US GAAP, Dell Technologies’ adjusted total net revenue for the third fiscal quarter was $28.405 billion, an increase of 21% compared with $23.521 billion in the same period last year, and also exceeded analyst expectations. According to data provided by the Yahoo Finance Channel, seven analysts had previously expected on average that Dell Technology’s third-quarter revenue would reach US$26.82 billion.
Dell Technologies' operating profit in the third fiscal quarter was US$1.349 billion, an increase of 19% compared to US$1.129 billion in the same period last year. Not in accordance with US GAAP, Dell Technologies’ adjusted operating profit for the third fiscal quarter was US$2.868 billion, an increase of 5% compared to US$2.725 billion in the same period last year.
Dell Technologies' adjusted EBITDA (net profit before interest, taxes, depreciation and amortization) in the third fiscal quarter was US$3.410 billion, an increase of 6% compared to US$3.231 billion in the same period last year.
Dell Technologies' total revenue cost in the third fiscal quarter was 20.335 billion U.S. dollars, an increase of 25% compared with 16.221 billion U.S. dollars in the same period last year. Among them, product revenue cost was 17.552 billion U.S. dollars, an increase of 27% compared to 13.789 billion U.S. dollars in the same period last year; service revenue cost was 2.783 billion U.S. dollars, an increase of 14% compared to 2.432 billion U.S. dollars in the same period last year.
Dell Technologies' total operating expenses in the third fiscal quarter were US$6.710 billion, an increase of 9% compared to US$6.132 billion in the same period last year. Among them, sales, general affairs, and administrative expenses were US$5.293 billion, an increase of 11% compared to US$4.772 billion in the same period last year; R&D expenditures were US$1.417 billion, an increase of 4% compared to US$1.360 billion in the same period last year.
As of the end of the third fiscal quarter, Dell Technologies’ remaining performance obligations were US$4.7 billion, an increase of 26%; deferred revenue was US$3.1 billion; cash and investment balances were US$242 billion. So far this year, Dell Technologies has repaid a total of $15.9 billion in debt.
Performance of each department
Dell Technologies' product revenue in the third fiscal quarter was 21.54 billion U.S. dollars, an increase of 24% compared with 17.352 billion U.S. dollars in the same period last year; service revenue was 6.854 billion U.S. dollars, an increase of 12% compared to 6.130 billion U.S. dollars in the same period last year.
Divided by specific business sectors, Dell Technologies’ revenue from the Customer Solutions Group in the third fiscal quarter reached a record of 16.546 billion U.S. dollars , an increase of 35% compared to 12.286 billion U.S. dollars in the same period last year. Among them, the commercial sector revenue reached a record 12.292 billion U.S. dollars, an increase of 40% compared with the 8.783 billion U.S. dollars in the same period last year; the consumer segment revenue also reached a record 4.254 billion U.S. dollars, compared with 3.503 billion U.S. dollars in the same period last year. Compared with an increase of 21%. Customer Solutions Group’s operating profit in the third fiscal quarter reached a record 1.1 billion U.S. dollars, a year-on-year increase of 14%, accounting for 6.9% of the group’s revenue.
Dell Technologies’ revenue from the Infrastructure Solutions Group in the third fiscal quarter was US$8.428 billion, an increase of 5% compared to US$8.024 billion in the same period last year. Among them, the revenue of the storage department was US$3.895 billion, an increase of 1% compared to the US$3.860 billion in the same period last year; the revenue of the server and networking department was US$4.533 billion, an increase of 9% compared to the US$4.164 billion in the same period last year. %. The operating profit of the Infrastructure Solutions Group in the third fiscal quarter was US$892 million, an increase of 1% from US$882 million in the same period last year, accounting for approximately 10.6% of the group’s revenue.
The VMware division’s third-quarter net revenue was US$3.178 billion, an increase of 10% compared to US$2.893 billion in the same period last year, mainly due to the broad growth of its diversified product portfolio. The operating profit of the VMware division in the third fiscal quarter was $837 million, which was flat compared with the same period last year, accounting for 26.3% of the division's revenue.
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