Dell Technologies announced today its third-quarter financial report for the 2023 fiscal year. According to the report, the total net revenue of Dell Technologies in the third fiscal quarter was US$247.21, a decrease of 6% compared with the US$26.424 billion in the same period last year; Net profit from continuing operations fell 93% to $3.683 billion. Not in accordance with US GAAP, Dell Technologies' adjusted total net revenue in the third fiscal quarter was US$24.721 billion, a decrease of 6% compared with US$26.432 billion in the same period last year; adjusted net profit was US$1.705 billion, an increase of Compared with 1.313 billion US dollars in the same period, it increased by 30%.
Dell's third-quarter adjusted revenue and earnings per share exceeded Wall Street analysts' expectations, which pushed its stock price up nearly 5% after hours.
Performance summary:
In the fiscal quarter that ended October 28, 2022, Dell Technologies’ net profit from continuing operations was US$241 million, a 93% decrease from the net profit of US$3.683 billion from continuing operations in the same period last year; Diluted earnings per share were $0.33, down 93% from $4.68 in the prior year period.
Not in accordance with US GAAP (excluding intangible asset amortization expense, tax impact, equity award expense, and other one-time items), Dell Technologies’ third-quarter adjusted net profit was $1.705 billion, compared with $1.313 billion in the same period last year. billion dollars, an increase of 30%; adjusted earnings per share of $2.30, compared with $1.66 in the same period last year, an increase of 39%, this performance exceeded analyst expectations. According to data provided by Yahoo Finance Channel, 14 analysts had expected Dell Technologies' third-quarter adjusted earnings per share to reach $1.6 on average.
Dell Technologies' total net revenue for the third fiscal quarter was $247.21, down 6% from $26.424 billion in the same period last year. Not in accordance with US GAAP, Dell Technologies' third-quarter adjusted net revenue was US$24.721 billion, down 6% from US$26.432 billion in the same period last year, but this performance still exceeded analyst expectations. According to data provided by Yahoo Finance Channel, 13 analysts had expected Dell Technologies' third-quarter revenue to reach $24.56 billion on average.
Dell Technologies' third-quarter net income from continuing operations as a percentage of total net revenue (or net profit margin) was 1.0%, compared with 13.9% in the same period last year. Excluding one-time items (non-GAAP), Dell Technologies' adjusted net margin for the fiscal third quarter was 6.9%, compared with 5.0% for the same period last year.
Dell Technologies' third-quarter operating profit was $1.762 billion, up 68% from $1.046 billion in the same period last year. Not in accordance with US GAAP, Dell Technologies' third-quarter adjusted operating profit was US$2.380 billion, an increase of 22% compared with US$1.956 billion in the same period last year.
Dell Technologies' third-quarter operating margin was 7.1 percent, compared with 4.0 percent a year earlier. Excluding one-time items (non-GAAP), Dell Technologies' adjusted operating margin was 9.6% in the third quarter, compared with 7.4% in the same period last year.
Performance by business segment:
Dell Technologies' third-quarter product revenue was $18.938 billion, down 10% from $20.979 billion in the same period last year; service revenue was $5.783 billion, up 6% from $5.445 billion in the same period last year.
By specific business sector:
Dell Technologies' third-quarter revenue from the Infrastructure Solutions Group was US$9.630 billion, an increase of 12% compared to US$8.564 billion in the same period last year. Among them, the revenue of the storage department was 4.429 billion U.S. dollars, an increase of 11% compared with the 4.003 billion U.S. dollars in the same period of the previous year; %. The operating profit of the infrastructure solutions group in the third fiscal quarter was US$1.374 billion, an increase of 54% compared with US$894 million in the same period last year; the proportion of the group's revenue was about 14.3%, compared with the previous year's The proportion of the same period last year was about 10.4%.
Dell Technologies' third-quarter revenue from the Client Solutions Group was $13.775 billion, down 17% from $16.556 billion in the same period last year. Among them, the revenue of the commercial sector reached US$10.747 billion, a decrease of 13% compared with US$12.300 billion in the same period of the previous year; the revenue of the consumer sector reached US$3.028 billion, a decrease of 29% compared with the US$4.256 billion in the same period of the previous year. Operating profit of the Client Solutions Group in the third fiscal quarter reached $1.060 billion, down 7% from $1.142 billion in the same period last year; the proportion of the group's revenue was approximately 7.7%, compared with the previous year The proportion during the same period was about 6.9%. .
Additional financial information:
Dell Technologies' total cost of revenue for the third fiscal quarter was US$19.014 billion, down 9% from US$20.890 billion in the same period last year. Among them, the product revenue cost was US$15.601 billion, a decrease of 13% compared with the US$17.833 billion in the same period of the previous year; the service revenue cost was US$3.413 billion, an increase of 12% compared with the US$3.057 billion in the same period of the previous year.
Dell Technologies gross profit in the third fiscal quarter was US$5.707 billion, an increase of 3% compared with US$5.534 billion in the same period last year; the gross profit margin was 23.1%, compared with 20.9% in the same period last year. Excluding one-time items (not in accordance with US GAAP), Dell Technologies' adjusted gross profit in the fiscal third quarter was $5.865 billion, an increase of 2% compared with $5.729 billion in the same period last year; adjusted gross profit margin It was 23.7%, compared with 21.7% in the same period last year.
Dell Technologies' total operating expenses for the third fiscal quarter were $3.945 billion, down 12% from $4.488 billion in the same period last year. Among them, sales, general and administrative expenses were US$3.268 billion, a decrease of 15% compared with US$3.838 billion in the same period of the previous year; research and development expenses were US$677 million, an increase of 4% compared with US$650 million in the same period of the previous year.
Dell Technologies' total operating expenses as a percentage of total net revenues for the fiscal third quarter was 16.0 percent, compared to 16.9 percent for the same period last year. Among them, sales, general and administrative expenses accounted for 13.3% of total net revenue, compared with 14.4% in the same period last year; research and development expenses accounted for 2.7% of total net revenue, This compared with 2.5 percent in the same period a year earlier.
Dell's third-quarter cash changes from operating activities were $396 million, compared to $3.251 billion a year earlier.
As of the end of the third fiscal quarter, Dell Technologies held cash and investments totaling $6.5 billion and deferred revenue of $27.1 billion.
As of the end of the fiscal third quarter, Dell Technologies had remaining performance obligations of $39 billion.
Dell Technologies' third-quarter recurring revenue was approximately $5.4 billion, an 11 percent increase compared to the same period last year.
During the fiscal third quarter, Dell Technologies returned $847 million in cash to shareholders through share repurchases and dividends.
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