01—Abstract
Summary
Summary of the 10-K filed March 30, 2023. Cited figures are marked; the original filing is the authoritative source.
Dell Technologies Inc. reported a year-over-year revenue increase of 1% for fiscal year 2023, reaching $102.3 billiona, primarily driven by growth in its Infrastructure Solutions Group (ISG).
Despite a challenging macroeconomic environment, the company saw an increase in ISG revenue due to strong performance in servers, networking, and storage offerings. However, the Client Solutions Group (CSG) experienced a 5%b decline in revenue, largely attributed to decreased demand in the consumer segment and a reduction in units sold, partly offset by higher average selling prices.
The company also announced a 12%c increase in its quarterly dividend rate for fiscal year 2024, signaling confidence in its financial health and commitment to returning capital to shareholders. Dell Technologies is strategically focusing on modernizing its core offerings and pursuing growth in areas like Edge, Telecom, and as-a-Service models, exemplified by its Dell APEX initiative.
02—Key points
Key Highlights
- Dell Technologies reported a 1% increase in total net revenue to $102.3 billion for fiscal year 2023.
- The Infrastructure Solutions Group (ISG) saw a 12% revenue increase, driven by strong server, networking, and storage performance.
- The Client Solutions Group (CSG) experienced a 5% revenue decline, primarily due to softening demand in consumer and commercial segments.
- Operating income increased by 24% year-over-year, reaching $5.8 billion, with ISG operating income showing significant growth.
- The company repurchased approximately $2.8 billion of Class C Common Stock during fiscal year 2023.
- Dell announced a 12% increase in its quarterly dividend rate for fiscal year 2024, from $0.33 to $0.37 per share.
- The company continues to focus on its strategic priorities of modernizing core offerings and pursuing growth in new areas like Edge, Telecom, and as-a-Service through Dell APEX.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Dell Technologies Inc. kept $0.02.
- Revenue$102.30B100.0%
- Cost of revenue−$79.61B77.8%
- Gross profit$22.69B22.2%
- Operating costs−$16.91B16.5%
- Operating income$5.77B5.6%
- Interest, other & tax−$3.35B3.3%
- Net income$2.42B2.4%
Where FY2023 revenue went
$102.30B- Cost of revenue: $79.61B, 78% of revenue
- SG&A: $14.14B, 14% of revenue
- Net income: $2.42B, 2.4% of revenue
- R&D: $2.78B, 2.7% of revenue
- Interest, other & tax: $3.35B, 3.3% of revenue
Kept 2.4% as net incomeNet income $2.42B · 2.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed March 30, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $102.30B$101.20B | +1.1% |
| Cost of Revenue | $79.61B$79.31B | +0.4% |
| Gross Profit | $22.69B$21.89B | +3.6% |
| R&D Expenses | $2.78B$2.58B | +7.8% |
| SG&A Expenses | $14.14B$14.65B | −3.5% |
| Operating Expenses | $16.91B$17.23B | −1.8% |
| Operating Income | $5.77B$4.66B | +23.9% |
| Interest Expense | $1.22B$1.54B | −20.8% |
| Net Income | $2.42B$5.71B | −57.6% |
| EPS (Basic) | $3.33— | — |
| EPS (Diluted) | $3.24— | — |
| Shares Outstanding (Basic) | 734.00M762.00M | −3.7% |
| Shares Outstanding (Diluted) | 753.00M791.00M | −4.8% |
05—Questions
Frequently Asked Questions
What was Dell Technologies' overall financial performance in fiscal year 2023?
Dell Technologies reported a 1% increase in total net revenue for fiscal year 2023, reaching $102.3 billion. Operating income saw a substantial 24% increase to $5.8 billion, driven by strong performance in the Infrastructure Solutions Group (ISG) and disciplined cost management. This growth occurred despite a challenging macroeconomic environment that impacted the Client Solutions Group (CSG).
How did Dell's business segments perform?
The Infrastructure Solutions Group (ISG) was a strong performer, with revenue increasing by 12% to $38.4 billion, driven by growth in servers, networking, and storage. The Client Solutions Group (CSG) experienced a 5% revenue decline, totaling $58.2 billion, primarily due to a decrease in units sold in both consumer and commercial markets, although average selling prices saw an increase.
What is Dell's strategy for future growth?
Dell's strategy focuses on two main priorities: growing and modernizing its core offerings and pursuing new growth opportunities. This includes expanding its presence in areas like Edge computing, Telecom, data management, and as-a-Service consumption models, further developing its Dell APEX offerings to provide flexible consumption options for customers.
What is Dell's approach to returning capital to shareholders?
Dell Technologies is committed to returning capital to shareholders through share repurchases and dividends. In fiscal year 2023, the company repurchased approximately $2.8 billion of its Class C Common Stock and paid quarterly dividends. Notably, the company announced a 12% increase in its quarterly dividend rate for fiscal year 2024, signaling continued confidence in its financial stability and a commitment to shareholder value.
06—Continue