Dell Technologies Delivers Fourth Quarter and Full Year Fiscal 2024 Financial Results
PR Newswire
ROUND ROCK, Texas, Feb. 29, 2024
News summary
-- Fourth quarter revenue of $22.3 billion and full-year revenue of $88.4
billion
-- Full-year operating income of $5.2 billion and non-GAAP operating income
of $7.7 billion
-- Full-year cash flow from operations of $8.7 billion
-- Full-year diluted earnings per share of $4.36 and non-GAAP diluted
earnings per share of $7.13
-- Announcing a 20% increase in annual cash dividend to $1.78 per common
share
ROUND ROCK, Texas, Feb. 29, 2024 /PRNewswire/ —
Full story
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2024 fourth quarter and full year. Fourth quarter revenue was $22.3 billion, down 11% year over year. Operating income was $1.5 billion and non-GAAP operating income was $2.1 billion, up 25% and down 1% year over year, respectively. Cash flow from operations was $1.5 billion. Diluted earnings per share was $1.59, and non-GAAP diluted earnings per share was $2.20, up 89% and 22% year over year, respectively.
Revenue for the year was $88.4 billion, down 14% from fiscal year 2023. Operating income was $5.2 billion and non-GAAP operating income was $7.7 billion, down 10% and 11% year over year, respectively. Cash flow from operations for the full year was $8.7 billion. Full-year diluted earnings per share was $4.36, and non-GAAP diluted earnings per share was $7.13, up 35% and down 6% year over year, respectively.
Cash and investments were $9.0 billion, and Dell reached its core leverage target of 1.5x exiting the fiscal year. Dell is increasing its annual cash dividend by 20% to $1.78 per common share, with $0.445 per common share for the first quarterly distribution payable on May 3 to shareholders of record as of April 23.
“We generated $8.7 billion in cash flow from operations this fiscal year, returning $7 billion to shareholders since Q1 FY23,” said Yvonne McGill, chief financial officer, Dell Technologies. “We’re optimistic about FY25 and are increasing our annual dividend by 20% — a testament to our confidence in the business and ability to generate strong cash flow.”
Fourth Quarter Fiscal 2024 Financial Results
Three Months Ended Fiscal Year Ended
----------------------------------- -----------------------------------
February 2, February 3, February 2, February 3,
2024 2023 Change 2024 2023 Change
---------------- ----------------- ------ ---------------- ----------------- ------
(in millions, except per share amounts and percentages; unaudited)
Net
revenue $ 22,318 $ 25,039 (11) % $ 88,425 $ 102,301 (14) %
Operating
income $ 1,491 $ 1,189 25 % $ 5,211 $ 5,771 (10) %
Net income $ 1,158 $ 606 91 % $ 3,195 $ 2,422 32 %
Earnings
per share
-
diluted $ 1.59 $ 0.84 89 % $ 4.36 $ 3.24 35 %
Non-GAAP
operating
income $ 2,139 $ 2,170 (1) % $ 7,678 $ 8,637 (11) %
Non-GAAP
net
income $ 1,610 $ 1,322 22 % $ 5,245 $ 5,727 (8) %
Adjusted
free cash
flow $ 1,010 $ 2,267 (55) % $ 5,607 $ 1,533 266 %
Non-GAAP
earnings
per share
-
diluted $ 2.20 $ 1.80 22 % $ 7.13 $ 7.61 (6) %
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 Group (ISG) delivered fourth quarter revenue of $9.3 billion, up 10% sequentially and down 6% year over year. Servers and networking revenue was $4.9 billion, with sequential growth driven primarily by AI-optimized servers. Storage revenue was $4.5 billion, up 16% sequentially with demand strength across the portfolio. Operating income was $1.4 billion. Full-year ISG revenue was $33.9 billion, down 12% year over year, and full-year operating income was $4.3 billion, down 15% year over year.
Client Solutions Group (CSG) delivered fourth quarter revenue of $11.7 billion, down 5% sequentially and 12% year over year. Commercial client revenue was $9.6 billion, and Consumer revenue was $2.2 billion. Operating income was $726 million. Full-year CSG revenue was $48.9 billion, down 16% year over year, and full-year operating income was $3.5 billion, down 8% year over year.
“Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “We’ve just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements.”
Dell continues to expand its portfolio to help customers meet their performance, cost and security requirements across clouds, on premises and at the edge:
-- Expanded the Dell Generative AI Solutions portfolio with support for the
AMD Instinct(TM) MI300X accelerator in Dell PowerEdge XE9680 servers and
the new Dell Validated Design for Generative AI with AMD ROCm(TM) powered
AI frameworks.
-- Introduced new enterprise data storage advancements and planned
validation with the NVIDIA DGX SuperPOD AI infrastructure, helping
customers quickly access data for AI workloads with Dell PowerScale
systems.
-- Announced Dell will have the broadest portfolio of commercial AI laptops
and mobile workstations, which feature built-in AI acceleration with the
addition of the neural processing unit (NPU). New XPS systems also
feature the NPU, helping to improve performance, productivity and
collaboration.
-- Forged partnership with Nokia to serve as its preferred infrastructure
partner for Nokia AirFrame customers, transitioning them to Dell
PowerEdge servers with Dell global services and support. Dell will also
offer Nokia's Digital Automation Cloud solution with Dell NativeEdge to
provide a comprehensive, scalable solution for enterprises.
Operating Segments Results
Three Months Ended Fiscal Year Ended
---------------------- ----------------------
February February February 2, February
2, 2024 3, 2023 Change 2024 3, 2023 Change
---------- ---------- ------ ----------- --------- ------
(in millions, except percentages; unaudited)
Infrastructure
Solutions Group
(ISG):
---------------
Net revenue:
Servers and
networking $ 4,857 $ 4,940 (2) % $ 17,624 $ 20,398 (14) %
Storage 4,475 4,965 (10) % 16,261 17,958 (9) %
---------- ---------- ----------- ---------
Total ISG
net
revenue $ 9,332 $ 9,905 (6) % $ 33,885 $ 38,356 (12) %
---------- ---------- ----------- ---------
Operating
Income:
---------- ---------- ----------- ---------
ISG operating
income $ 1,428 $ 1,543 (7) % $ 4,286 $ 5,045 (15) %
---------- ---------- ----------- ---------
% of ISG net
revenue 15.3 % 15.6 % 12.6 % 13.2 %
% of total
reportable
segment
operating
income 66 % 70 % 55 % 57 %
Client
Solutions Group
(CSG):
---------------
Net revenue:
Commercial $ 9,563 $ 10,697 (11) % $ 39,814 $ 45,556 (13) %
Consumer 2,152 2,664 (19) % 9,102 12,657 (28) %
---------- ---------- ----------- ---------
Total CSG
net
revenue $ 11,715 $ 13,361 (12) % $ 48,916 $ 58,213 (16) %
---------- ---------- ----------- ---------
Operating
Income:
---------- ---------- ----------- ---------
CSG operating
income $ 726 $ 671 8 % $ 3,512 $ 3,824 (8) %
---------- ---------- ----------- ---------
% of CSG net
revenue 6.2 % 5.0 % 7.2 % 6.6 %
% of total
reportable
segment
operating
income 34 % 30 % 45 % 43 %
Conference call information
As previously announced, the company will hold a conference call to discuss its performance and financial guidance on Feb. 29 at 3:30 p.m. CST. 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 at
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.