Dell Technologies Inc. (DELL) Q4 2023 Earnings Call Transcript

For the period ending February 3, 2023

March 2, 2023 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon, and welcome to the Fiscal Year 2023 Fourth Quarter and Year-end Financial Results Conference Call for Dell Technologies Inc. I'd like to inform all participants this call is being recorded at the request of Dell Technologies. This broadcast is the copyrighted property of Dell Technologies Inc. Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited. Following prepared remarks, we will conduct a question-and-answer session. [Operator Instructions].

I'd like to turn the call over to Rob Williams, Head of Investor Relations. Mr. Williams, you may begin.

Rob Williams

Thanks for joining us. With me today are Jeff Clarke, Chuck Whitten, Tom Sweet and Tyler Johnson. Our earnings materials are available on our IR website, and I encourage you to review our materials and presentation which includes additional content to complement our discussion this afternoon. Guidance will be covered on today's call.

During this call, unless otherwise indicated, all references to financial measures refer to non-GAAP financial measures, including non-GAAP revenue, gross margin, operating expenses, operating income, net income and diluted earnings per share. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our web deck and our press release. Growth percentages refer to year-over-year change unless otherwise specified.

Statements made during this call that relate to future events and results are forward-looking statements based on current expectations. Actual results and events could differ materially from those projected due to a number of risks and uncertainties, which are discussed in our web deck and our SEC filings. We assume no obligation to update our forward-looking statements. Now

I'll turn it over to Chuck.

Chuck Whitten

Thanks, Rob. We are pleased with our FY '23 execution and financial results given the macroeconomic backdrop. FY '23 was ultimately a tale of two halves with 12% growth in the first half and revenue down 9% in the second half as the demand environment weakened over the course of the year.

Net, we delivered record FY '23 revenue of $102.3 billion, up 1% on the back of 17% growth in FY '22, record OpInc of $8.6 billion, up 11% and record EPS of $7.61, up 22%. ISG, in particular, had a strong year with record revenue of $38.4 billion, including record revenue in both servers and networking and storage and record operating income of over $5 billion.