Published: Aug. 31, 2023 at 4:05 p.m. ET
By Denny Jacob
Dell Technologies posted declining revenue and net income in the latest quarter, a sign that customers are remaining cautious with their spending. Here’s what you need to know:
ADJUSTED EARNINGS: The tech company logged adjusted earnings per share of $1.74, up from $1.68 a year earlier. Analysts polled by FactSet expected adjusted…
By Denny Jacob
Dell Technologies posted declining revenue and net income in the latest quarter, a sign that customers are remaining cautious with their spending. Here’s what you need to know:
ADJUSTED EARNINGS: The tech company logged adjusted earnings per share of $1.74, up from $1.68 a year earlier. Analysts polled by FactSet expected adjusted earnings of $1.14 a share.
REVENUE: The Round Rock, Texas-based company posted revenue of $22.93 billion, declining 13% from $26.43 billion in the year-ago period. Analysts polled by FactSet expected $20.86 billion.
NET INCOME: Dell recorded net income of $455 million compared to $506 million in the prior-year period. Analysts polled by FactSet expected $535.1 million.
WHAT WE WATCHED
–REVENUE: Dell ended the quarter with remaining performance obligations of $39 billion. Recurring revenue, a key metric that points to repeat purchases from customers, ended at $5.6 billion, up 8% year over year. Deferred revenue also grew 8% year over year to $30.3 billion, which Dell said was primarily due to increases in service and software maintenance agreements.
–COMMENTARY: “We continue to focus on the most profitable segments of the market where we have a leading position. Demand for our proprietary software-defined storage solution has now grown eight consecutive quarters. Our client solutions group business was up 8% sequentially with strong attach rates. And AI is already showing it’s a long-term tailwind, with continued demand growth across our portfolio,” said Chief Operating Officer Jeff Clarke.
Write to Denny Jacob at denny.jacob@wsj.com
