Dell Financials

This article is about Dell's financial performance.

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2024: Dell shares collapse a record 18% in a day as computer sales collapse

In early June 2024, Dell Technologies fell a record 18% due to a collapse in computer sales. In particular, investors were disappointed with sales of artificial intelligence servers.

The computer business, which is supervised by the Dell Client Solutions Group, in March-May 2024 received revenue of $11.97 billion, which is almost exactly the same as a year ago. Revenues from the sale of laptops and desktops in the consumer sector fell by 15% (to $1.81 billion).

Dell shares fall 18%

Dell delivered fiscal first-quarter results that beat analysts' expectations and offered upbeat guidance. The company said revenue amounted to $22.24 billion, and in the second quarter the expected sales volume will be from $23.5 to $24.5 billion. However, this was not enough to reassure investors who believe Dell's AI servers are selling for "near zero profit."

Bank of America analysts still recommend buying the company's stock. However, they noted that Dell's AI server sales were lower than anticipated and the company's growth margin is expected to decline this fiscal year.

Dell Technologies notes that these are only the early stages of AI implementation, and hopes to get a higher return on investment in this area over time.

Analysts at JPMorgan said they were not surprised by the reaction from investors, but added that they believed the concerns were "exaggerated." They believe that Dell's stock volatility creates an attractive opportunity for those who want to make money by buying up cheaper shares. Analysts said the soon-to-grow demand for AI would boost profits for a company that could rebuild traditional infrastructure.^[1]

2023: Revenue cut 14% to $88.4 billion

At the end of the fiscal year, which ended on February 2, 2024, Dell's revenue amounted to $88.4 billion. This is 14% less than in the previous fiscal year, when the figure was $102.3 billion. Such data are given in a report published on February 29, 2024.

Dell's net annual profit is estimated at $3.2 billion. The growth compared to the previous financial year is 32%. Profit per security amounted to $4.36 against $3.24 in fiscal year 2023: growth in this indicator is 35%.

In the closed fiscal year, Dell experienced a sharp drop in server, network equipment, and storage sales. Revenue in this unit was recorded at $33.9 billion against $38.4 billion in fiscal 2023. Thus, the reduction was 12%. Servers and network solutions brought in $17.6 billion, which is 14% less on an annualized basis ($20.4 billion in fiscal 2023). The DSS accounted for $16.3 billion - a decline of 9% year-on-year ($18 billion in 2023).

In the customer solutions segment, Dell received $48.9 billion in revenue. This is 16% less than in the previous year, when the value was $58.2 billion. In the commercial sector, sales fell by 13% - from $45.6 billion to $39.8 billion. In the consumer direction, a decline of 28% was recorded - from $12.7 billion to $9.1 billion.

Dell is developing hardware platforms for generative artificial intelligence. These are, in particular, Dell PowerEdge servers XE9680 with AMD Instinct MI300X accelerators. The company also announced the expansion of the range of laptops and mobile workstations equipped with built-in AI based on a neural processor (NPU). In parallel, work is underway to create next-generation DSS optimized for resource-intensive AI applications.^[2]

2022: Record sales - $101.2 billion (+ 17 %)

In fiscal 2022, Dell Technologies received record revenue - it exceeded $100 billion for the first time and reached $101.2 billion. Compared to 2021, the company's sales increased by 17%.

The largest driver of Dell's revenue recovery is the computers supplied to the business. On this, the American IT corporation for the 12-month period, closed on January 28, 2022 of the calendar year, earned $45.58 billion, which is 29% more than a year earlier. PC sales for consumers increased by 23% to $15.89 billion. The entire computer division brought Dell $61.46 billion in annual revenue (+ 27%).

The Dell Infrastructure Solutions Group (ISG) division, specializing in servers, network devices and storage systems, generated revenue of $34.37 billion at the end of 2022, which is 4% more on an annualized basis. In the DSS segment, the company's revenues for the year remained practically unchanged at $15.47 billion. Server and network equipment sales grew by 8% and exceeded $17.9 billion.

Dell's net income in fiscal 2022 was $5.71 billion, surpassing a year ago profit by 63%. In the computer division, profit increased by 31% year-on-year and reached $4.37 billion, and in the server direction (taking into account the supply of network equipment and DSS) it slightly decreased (to $3.74 billion).

According to Dell CFO Tom Sweet, 2022 reporting year will be remembered by the company primarily by large cash flow ($10.3 billion), achievement of investment grade rating and VMware branch.

We remain focused on implementing our strategy in terms of consolidating and modernizing our core, as well as creating new growth drivers that ensure the multi-cloud future of our customers and generate revenues for shareholders, Sweet said.[3]

2021

Seventh in the world among ICT developers by revenue

According to Synergy Research Group, the total revenue of the 13 largest manufacturers of software and ICT services for business, including telecom operators, reached $613 billion in this market in 2021, which is 10% more than a year earlier. Dell was ranked seventh on this list.

Revenue growth by 2%, to $94.22 billion, a decrease in net profit by 37%, to $3.51 billion

At the end of fiscal 2021, Dell raised $94.22 billion, a record for the company. Compared to 2020, total sales rose by 2%. Sales of products practically did not change and amounted to $69.9 billion, and service revenues increased by 9%, to $24.31 billion.

Dell's financial upswing has been helped by the COVID-19 coronavirus pandemic, which has seen people work and learn more often from home, which in turn has boosted computer sales. The Dell Client Solutions Group, which is responsible for such equipment, registered revenue of $48.36 billion in 2021, which is 5% higher than a year ago.

Sales of desktops and laptops in the consumer segment grew the most - by 12%, to $12.96 billion. Dell earned $35.37 billion on the supply of PC equipment for business for the year, which is 3% more than a year earlier.

As noted, the Bloomberg demand generated by the pandemic allowed Dell to release more than 50 million desktops, laptops and tablets for the entire fiscal year.

Dell Infrastructure Solutions Group (ISG), which specializes in servers, networked devices and storage systems, recorded revenue of $32.6 billion in fiscal 2021, down 4% from the previous year. Dell's server and network equipment sales totaled $16.5 billion, down 4% year-on-year. Revenues in the storage system market also sank by 4%, to $16.1 billion.

Dell's net profit at the end of the 2021 financial year decreased by 37% compared to 2020 and amounted to $3.51 billion. Profit in the computer division increased by 7%, to $3.35 billion, and in the server division - it decreased by 6%, to $3.77 billion.^[4]

2020

Global Server Market Share - 16.1%

Dell's share of the global server market was 16.1% (IDC data ). Read more here.

Revenue growth of 2% to $92.15 billion; profit - $5.53 billion

In fiscal 2020, closed on January 31, 2020 calendar, Dell's revenue reached $92.15 billion, which is 2% higher than a year ago.

The Dell Infrastructure Solutions Group division, specializing in servers, network devices and storage systems, recorded revenue of $33.97 billion in 2020, which is 7% less than a year earlier.

Annual sales of Dell servers and network equipment amounted to $17.13 billion, which is 14% less on an annualized basis. Revenues in the market storage systems increased slightly and amounted to $16.84 billion.

Dell linked the drop in server sales to the Chinese market, where hardware sales fell by 35%, and this is even before the outbreak of the COVID-19 coronavirus.

The computer business, which oversees the Dell Client Solutions Group, received revenue of $45.84 billion in fiscal 2020, up 6% from a year earlier. Revenues from laptops and desktops in the corporate sector increased by 11% year-on-year (to $34.28 billion). In the consumer segment, turnover decreased by 6% and reached $11.56 billion.

Dell's net profit in the 2020 reporting year was $5.53 billion, while in 2019 the company registered net losses at $2.18 billion.

In the computer division, profit increased from $1.96 billion in 2019 to $3.14 billion a year later. In the server business, profit decreased by 4% to $4 billion.

After the publication of the financial statements, Dell shares fell 10% to $39.21, which has never happened since the company returned to the stock exchange. Quotes fell due to weak revenue growth of the IT vendor.

Along with the release of the financial results, Dell announced plans to repurchase shares worth up to $1 billion.^[5]

2019: Revenue growth 15% to $90.62 billion; losses - $2.18 billion

In fiscal 2019, which ended on February 1, 2019, Dell Technologies revenue amounted to $90.62 billion, an increase of 15% compared to the previous year.

In the computer business, for which the Client Solutions Group division is responsible, turnover jumped by 10% and reached $43.2 billion. The report notes that according to IDC, Dell's share of the personal computer market has increased for 24 consecutive quarters. At the same time, sales of corporate laptops and workstations, as well as high-performance consumer laptops and monitors are growing at double-digit rates. In the PC monitor market, the vendor's share in terms of piece deliveries of equipment is growing 23 quarters in a row.

For the 12-month period closed on February 1, 2019, Dell's revenue from computer sales to corporate customers amounted to $30.9 billion, up 12% from a year earlier. In the consumer sector, revenues increased by 5% to $12.3 billion.

In the division of Infrastructure Solutions Group, responsible for the sale of servers, storage systems and network equipment, revenue in 2019 amounted to $36.7 billion, 19% higher than a year ago. The sale of servers and network devices rose by 28% to $20 billion (here growth is observed nine quarters in a row), revenues in the storage market increased by 9% to $16.7 billion, and the share here goes up three quarters in a row.

The line "other businesses," which includes the indicators of subsidiaries Pivotal, Secureworks, RSA Security, Virtustream and Boomi, indicates annual revenue of $2.3 billion, which is 6% higher than the previous year.

Dell ended fiscal 2019 with a net loss of $2.18 billion, a quarter less than a year ago.^[6]

2018: Losses of $3.9 billion

In fiscal 2018 (the reporting period ended on February 2, 2018 calendar), Dell's revenue amounted to $78.66 billion, an increase of 28% compared to the previous year. The company's net losses increased by 3%, reaching $3.86 billion.

Dell remains unprofitable after acquiring EMC for $67 billion. In connection with this transaction, the corporation paid a total of $10 billion in debts of the purchased storage manufacturer, DSS $46 billion remains, Bloomberg notes. At the same time, by the end of the year, Dell had accumulated $20.3 billion in the form of cash and investments.

In fiscal 2018, the revenue of Dell Client Solutions, which is responsible for the supply of personal computers, amounted to $39.5 billion against $36.8 billion a year earlier. Profit in this business increased by 19%, exceeding $2.1 billion.

The computer business in the corporate sector brought the company $27.7 billion in revenue, which is 7% more than a year ago. In the consumer sector, turnover increased by 9% to $11.7 billion.

Dell's share of the global PC market has been growing for 20 quarters, the company is leading in computer monitor sales and increasing its share here for 18 consecutive quarters, the report said.

In the Dell Infrastructure Solutions Group division specializing in servers, network equipment and disk storage, annual revenue increased by 41%, reaching $30.65 billion. The company earned $15.4 billion on servers and network devices, which is 20% more than in fiscal 2017. In the storage system market, the manufacturer raised $15.3 billion - 71% more than in the previous year.

Dell Infrastructure Solutions Group's profit fell 9% to $2.2 billion. Dell is leading in the supply of arrays created on the basis of exclusively solid-state drives (all-flash), and began to earn about $5 billion a year in this segment.^[7]

2017: Losses rise to $3.7 billion due to EMC purchase

On March 30, 2017, Dell Technologies published a report on the results of the 2017 fiscal year. The IT equipment manufacturer's revenue rose 21%, but losses increased by more than three times, which is associated with the cost of joining EMC.

For the reporting 12-month period ended February 3, 2017, Dell sales amounted to $61.6 billion against $50.9 billion a year earlier. Net losses reached $3.7 billion, while in 2016 financial losses were measured at $1.2 billion. Interestingly, Dell's 2016 SEC report included slightly different revenue and profit indicators - apparently, the company made an adjustment due to the merger of EMC.

Since the acquisition of EMC closed, Dell has paid about $7 billion in debt and repurchased $824 million in stock. The purchase of EMC cost Dell $67 billion.

I am pleased with our overall performance in FY2017, the growth of the customer business and the positive momentum from investment in the infrastructure business, "says Dell CFO Tom Sweet. - In our 2018 financial year, we will develop this dynamics, starting with new sales opportunities and continuing to focus on formed sources of income and cost synergies and at the same time invest in our wide portfolio of solutions.

The report says that in 2017, the revenue of the Dell Client Solutions division, which is responsible for the supply of personal computers, amounted to $36.8 billion, an increase of 2% on an annualized basis. Operating profit in this business amounted to $1.8 billion.

In Dell Enterprise Solutions Group, a division specializing in servers network equipment and disk storage, annual revenue jumped 45% to $21.8 billion. Most of these revenues (about $12.8 billion) came from the implementation of servers and network devices. Turnover in the segment storage systems increased by 303% to $9 billion due to the takeover of EMC.^[8]

2016: Revenue drop of 6%, losses of $1.1 billion

In March 2016, financial indicators were released. Dell This was done by a manufacturer storage systems EMC bought by an American corporation.

EMC sent documents to the US Securities and Exchange Commission (SEC), according to which Dell's revenue for the fiscal year 2016, which ended January 29, 2016 calendar year, reached $54.9 billion, a decrease of 6% compared to a year ago.

The company's net losses amounted to $1.1 billion against $1.2 billion a year earlier. Operating losses also decreased - from $422 million to $383 million.

Dell linked the decline in revenue to weak sales of personal computers, software and services. For example, in the software division (Dell Software Group), annual revenues decreased by 9% to $1.4 billion. Profits in this business turned out to be almost zero.

The division responsible for services recorded revenue of $2.8 billion in 2016, which is 5% less than the previous year. Revenues from infrastructure and cloud services fell 3% to $1.7 billion.

For the reporting year, the revenue of Dell Client Solutions, which is responsible for the supply of personal computers, amounted to $35.9 billion, which is 9% less than a year earlier. Sales of consumer and corporate PCs decreased by 7% and 11%, respectively, to $9.2 billion and $21.3 billion. Dell Client Solutions' operating profit sank by a third.

In the Dell Enterprise Solutions Group, specializing in servers, network equipment and disk storage, annual turnover reached almost $15 billion, an increase of 2% compared to the previous year. On the implementation of servers and network solutions, the American company earned $12.8 billion against $12.4 billion for the fiscal year closed on January 30, 2015. In the storage market, revenue decreased by 5% over the period to $2.2 billion^[9]

2015: Losses of $1.2 billion

In mid-December 2015, Dell's first financial statement in two years was published. As it turned out, private management of the company does not provide it with profit. The results were announced by EMC, the purchase of which Dell announced in October 2015, in documents sent to the US Securities and Exchange Commission

For fiscal year 2015, closed on January 30, 2015, Dell's revenue amounted to $58.1 billion, which is 5% more than a year earlier. In 2013, the financial year, which became the last reporting period for the company before privatization (after which the vendor stopped publishing financial data), sales were measured at almost $57 billion.

In the revenue structure for 2015, financial year sales of equipment and software licenses took more than 80%, and the remaining share of revenues fell on services and services.

In the first year after turning from a public to a private company, Dell received a net loss of $3.3 billion, and a year later it decreased to $1.2 billion. In 2013, the IT manufacturer recorded a profit of $2.4 billion. Dell's operating loss decreased from $2.8 billion in the 12-month period ended in late January 2014 to $422 million a year later.

As noted by Re/code, the annual sale of Dell personal computers reached $28.9 billion, which corresponds to a year ago. However, in February-July 2015 calendar year, the company sold almost $2 billion less laptops and desktops than in the same period of the previous year.

Comparing these six-month timelines, it's worth noting the 4 percent growth in Dell server and network equipment sales. The service business sank by 6%, the decline was seen in many other divisions of the corporation.

It also follows from the EMC report that as of December 1, 2015, Dell CEO and founder Michael Dell owns 65% of the company's shares, and another 4% and 6%, respectively, belong to his investment firm MSD Capital and a trust fund controlled by Dell's wife. The rest of the stake is owned by private equity firm Silver Lake.^[10]

2013: Third quarter: revenue decline by 11%, profit - by 47%

Dell revenue in the third quarter of fiscal year 2013 decreased by 11% to $13.7 billion. Net income was $475 million or 27 cents per share, compared to $893 million or 49 cents per share a year earlier.

In the enterprise solutions segment, Dell's revenue grew by 3% to $4.8 billion during the reporting period, while revenue from server and network solutions grew by 11%. In contrast, in the segment of mass solutions, revenue failed by 23% to $2.5 billion, and sales for large corporations decreased by 8% to $4.2 billion.

In the third quarter of the 2013 fiscal years, Dell's profit declined by 47%, helped by a decline in PC sales, weak demand for large computer orders, and a consolidation of demand for mobile computers.

Dell's business in the mass market, where PC sales were depressed due to the growing popularity of smartphones and tablets, was especially affected, while Dell corporate customers purchased equipment with great caution under the influence of instability in the global economy.

Thus, the third largest PC manufacturer in the world said that "the challenges of the current situation in macroeconomics will continue to affect sales in the fourth quarter." Dell is gradually losing market position under pressure from strong Asian competitors like Lenovo. At the same time, the company is trying to manage business growth by betting on products and services for large corporations. Revenue growth forecast for the fourth quarter is 5%.

2012: Revenue growth by 1%, profit - by 33%

Revenue for the 2012 fiscal year (ended January 29, 2012) increased by 1% to $62.071 billion, profit - by 33% to $3.5 billion.

• The company notes that at the end of the year, it recorded a record revenue in the division of corporate solutions and services - $18.6 billion.

• Dell Services revenue rose 12% to $2.2 billion and accounts for 14% of Dell's business. The transactional services business grew by 14%, driven by increased sales of premium Dell support services and 8% growth in the outsourcing business. The volume of pre-orders for services (services backlog) increased by 11% to $15.5 billion.

• Dell storage sales rose 33% to $463 million, driven primarily by Dell's intellectual property-based systems, including Compellent, which sold 60% more than a year ago.

• Revenues from servers and network equipment rose 6%.

• The revenue of the Large Enterprise division (large enterprises) for the entire fiscal year amounted to $18.5 billion and increased by 4% compared to the previous year.

• Revenues of the Public (public sector) division amounted to $3.9 billion, which is 1% less than in the previous year. The revenues of this unit were negatively affected by the reduction in government spending in the United States and Western Europe. Services revenue rose 7% and Dell's IP storage sales grew 32%.

• Revenues of the Small and Medium Business division (small and medium-sized businesses) grew by 6% to $4 billion.

• Profit from the operations of the Consumer division (consumer sector) amounted to $39 million or 1.2 percent of income (a decrease of 43%). Income falls mostly occurred in the United States, while in other countries incomes rose 10%.

• Revenues in the Americas decreased by 3%. Revenues in emerging economies (these are all countries in the world except the United States, Canada, Western Europe and Japan) grew by 12% for the entire fiscal year. Revenues in BRIC countries rose 15% for the entire fiscal year.

2011

Revenue growth by 16%, profit - by 84%

Dell's revenue for the entire fiscal year was $61.5 billion, up 16% from the previous year. Operating income increased by 58% ($3.433 billion), net - 84% ($2.633 billion). Income in Brazil, Russia, India and China grew by 21% and accounted for 13% of the company's total income. In fiscal 2012, Dell expects revenue growth in the range of 5-9%.

In the fourth quarter of the 2011 fiscal year, Dell's revenue grew 5% year-on-year to $ 2010 billion in 15.7. Operating income increased by 124% to $1.1 billion, net - by 177% ($927 million). Revenue from corporate solutions and services grew by 7% to $4.6 billion. Server revenue increased by 16%. EqualLogic sales rose 49% and, along with Dell PowerVault sales, accounted for nearly two-thirds of the company's storage revenue. Revenue from the sale of commercial laptops and desktops rose 10%.

Q3: Decline in PC demand leads to lower revenue

Dell reported a slight decline in revenue in the third quarter, linking it to weakening consumer demand for PCs. However, the company recorded an increase in profitability.

Revenue for the quarter ended Oct. 28 was $15.37 billion, down slightly from $15.4 billion in the same quarter last year. Analysts expected revenues of $15.6 billion.

The company's revenue from handheld devices, which includes laptops and tablets, fell 2% year-on-year, while desktop revenue declined 6%. The company's storage revenues fell 15% year-on-year. Total revenues from these product lines accounted for 56% of the company's revenues.

At the same time, revenue from enterprise solutions and services including servers, storage and networks increased by 8% to $4.7 billion, a record result for the company, Dell said. The company made a profit of $893 million or $0.49 per share for the quarter, compared to $822 million or $0.42 per share in the same period last year. Excluding one-time expenses such as acquisitions, the company posted earnings of $983 million with earnings per share of $0.54. Analysts predicted earnings of $0.47 per share.

Dell is pushing the consumer business into the background as it tries to focus on the corporate market, where profit margins are higher and the PC market suffers due to low margins and lower supply. The company is trying to shift most of its revenue to corporate solutions and business services.

According to CFO Brian Gladden, the company received a "record income" of $4.7 billion. Dell has benefited from sales of its highest-priced servers and related products. Along with server sales, the company's expansion into the data center market helps it generate additional profits from the network and business services sector. The area of solid growth in the third quarter was the SMB segments, where server and network equipment sales revenue climbed 18% year-on-year, Gladden said.

He noted that revenues from the consumer segment of the market fell mainly due to a reduction in business in the United States, while business in Europe stabilized, and the Asia-Pacific region showed significant profit growth. Dell is also looking to increase product margins by selling more expensive PCs. The promotion of more expensive XPS models paid off, showing more than three times the revenue from their implementation compared to last year, Gladden emphasized. The XPS lineup provided 20% of Dell's consumer revenue.

According to Gladden, the move to sell more expensive products has confirmed its effectiveness. Dell plans to introduce new ultrabooks in the fourth quarter, the CFO said. As the company has already stated, its future tablets and smartphones will be aimed primarily at corporate users.

Jeff Clarke, Dell's vice president of end-user engagement and solutions, said the company is monitoring the flood situation in Thailand and has stocked up on hard drive components to prevent negative consequences. Research companies warn that flooding will affect PC sales in the first quarter of 2012.

Dell has previously been able to effectively resolve component shortages, Clark said. But the flooding has not receded and the company will monitor the situation, reallocating resources as needed, he said. Gladden believes that the cost of hard drives may rise in the fourth quarter, but the expected reduction in costs for other components should compensate for this price increase.

2008: Turnover of $61 billion

Turnover - $61.1 billion. Net income - $2.95 billion (2008)

Notes