Dell Technologies Delivers Fourth Quarter and Full-Year Fiscal 2022 Financial Results 

ROUND ROCK, Texas, Feb. 24, 2022 —  Dell Technologies announces financial results for its fiscal 2022 fourth quarter and full year. The company also announces that its board of directors has approved a dividend policy under which the company intends to pay quarterly cash dividends on its common stock, with an initial dividend rate of $1.32 per share per year for fiscal 2023, or approximately $1 billion in aggregate. The board has declared the initial quarterly dividend of $0.33 per share, which will be payable on April 29 to stockholders of record as of April 20.

Highlights

Record full-year revenue of $101.2 billion, up 17%, fueled by continued growth across all business units and record PC shipments

Record full-year diluted earnings per share of $6.26, up 114%, and non-GAAP diluted earnings per share of $6.22, up 27%

Announcing a quarterly cash dividend policy, with an initial quarterly dividend of $0.33 per share and expected aggregate fiscal 2023 dividends of approximately $1 billion

Full-year revenue was a record $101.2 billion, up 17% over the prior year, fueled by record demand, strong execution, continued growth across all business units, and record PC shipments. The company generated record operating income of $4.7 billion, a 26% increase over the prior year, and record non-GAAP operating income of $7.8 billion, up 12%. For the full year, both net income from continuing operations and non-GAAP net income were $4.9 billion.  Cash flow from operations was $10.3 billion and cash flow from operations excluding VMware was a record $7.1 billion. Full-year diluted earnings per share from continuing operations was $6.26, up 114%, and non-GAAP diluted earnings per share was $6.22, up 27%.

Fourth quarter revenue increased 16% to $28 billion. The company generated operating income of $1.6 billion, up 13%, and non-GAAP operating income of $2.2 billion, up 1%. Net loss from continuing operations was $29 million, non-GAAP net income was $1.4 billion and adjusted EBITDA was $2.7 billion. Cash flow from operations was $3.1 billion. Fourth quarter diluted loss per share was $0.04, and non-GAAP diluted earnings per share was $1.72, in each case resulting in part from a higher than anticipated effective tax rate in the quarter.

Fourth Quarter and Full-Year Fiscal 2022 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.

Dell Technologies ended the quarter with remaining performance obligations of $42 billion, up 20% year-over-year, deferred revenue of $27.6 billion, and cash and investments of $11.3 billion. The company had net debt paydowns of $16.5 billion in fiscal 2022 and received an Investment Grade corporate family rating from all three major credit rating agencies.

Operating segments summary

Client Solutions Group delivered record results, with revenue for the fourth quarter of $17.3 billion, up 26% year-over-year. This performance was driven by $12.9 billion in commercial revenue – a 30% increase year-over-year – and $4.4 billion in consumer revenue – a 16% increase year-over-year. Operating income was $1.2 billion, or approximately 6.7% of Client Solutions Group revenue. For the full year, Client Solutions Group delivered record revenue of $61.5 billion, up 27% versus the prior year. Client Solutions Group full-year operating income was $4.4 billion, a 31% increase versus the prior year.

Key areas of innovation:

• Won 47 awards at CES, where Dell introduced the new XPS 13 Plus – a completely redesigned XPS that brings together modern design with more performance.
• Introduced the world’s thinnest gaming laptop (Alienware x14), the world’s first quantum dot OLED gaming monitor (Alienware 34 Curved QD-OLED gaming monitor) and the most powerful 17-inch AMD Advantage gaming laptop.
• Launched the latest UltraSharp video conferencing monitor, which features a 4K webcam, echo cancelling microphones and Microsoft Teams certification to provide the best collaboration and visual experience possible.
• Introduced Concept Luna, an advanced commercial notebook concept built around sustainability, recyclability and reuse.

Infrastructure Solutions Group revenue for the fourth quarter was $9.2 billion, up 3% year-over-year. Storage revenue was $4.5 billion, while servers and networking revenue was $4.7 billion – up 7% year-over-year. Operating income was $1.1 billion or approximately 12% of Infrastructure Solutions Group revenue. For the full year, revenue was $34.4 billion, with operating income of $3.7 billion.

Key areas of innovation:

• Announced expansions to our APEX multi-cloud capabilities, enabling customers to move from multi-cloud by default to multi-cloud by design, as well as connect to multiple clouds without hyperscale lock-in.
• Introduced Dell PowerProtect Cyber Recovery for AWS (Amazon Web Services), giving organizations modern data protection to isolate critical data from a ransomware attack and accelerate data recovery.

Executive Quotes:

• “Fiscal 2022 was the best year in Dell Technologies history. We reached more than $100 billion in revenue and grew 17% – a huge achievement and ahead of our long-term growth targets,” said Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies. “For our customers, the biggest opportunity is to turn data into insight, action and progress, and they are prioritizing investments in technology.”

• “In FY22, widespread digital transformation continued to accelerate growth in technology spend, and we are encouraged by growing demand across our entire portfolio,” said Chuck Whitten, co-chief operating officer, Dell Technologies. “We also made strategic progress across multi-cloud, edge, as-a-Service and telecom. We launched solutions in these spaces, engaged customers, and made investments to position Dell for future growth.”

• “Last year we achieved a number of milestones that unleashed shareholder value. We generated cash flow of $10.3 billion, achieved investment grade rating and spun-off VMware,” said Tom Sweet, chief financial officer, Dell Technologies. “We remain focused on executing our strategy to consolidate and modernize our core and build new growth engines that enable our customers’ multi-cloud future while delivering shareholder value.”

Dell Technologies World

Join us May 2 – May 5 for Dell Technologies World, the company’s flagship event that brings together the latest trends, technology and gurus. During the event, customers and partners will explore the connected ecosystem of IT infrastructure, applications, devices and security along with our APEX and multi-cloud solutions that give customers greater flexibility to scale IT to meet business needs, transform and inspire the next breakthrough. Register here.

Customer Highlights Blog

Read our quarterly blog from Bill Scannell, Dell Technologies president of Global Sales & Customer Operations, to learn more about how we are helping customers with their digital transformations: https://www.dell.com/en-us/blog/giving-customers-an-edge-in-todays-digital-world/

Environmental, Social and Governance (ESG)

Our Environmental, Social and Governance (ESG) efforts are focused on driving positive impact for people and our planet while delivering long-term value for all stakeholders. Explore our ESG resources.

Additional financial and operating information may be downloaded from https://investors.delltechnologies.com/financial-information/quarterly-results

About Dell Technologies

Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the data era.

Source: Dell Inc.

About the author: Tiffany Trader

With over a decade’s experience covering the HPC space, Tiffany Trader is one of the preeminent voices reporting on advanced scale computing today.