DELL TECHNOLOGIES INC.
Selected Non-GAAP Financial Measures
(in millions, except per share amounts and percentages; unaudited)

Three Months Ended

April 30, 2021

May 1, 2020

Change

Non-GAAP net revenue

$

24,499

$

21,945

12%

Non-GAAP gross margin

$

8,018

$

7,325

9%

% of non-GAAP net revenue

33

%

33

%

Non-GAAP operating expenses

$

5,304

$

5,164

3%

% of non-GAAP net revenue

22

%

24

%

Non-GAAP operating income

$

2,714

$

2,161

26%

% of non-GAAP net revenue

11

%

10

%

Non-GAAP net income

$

1,819

$

1,143

59%

% of non-GAAP net revenue

7

%

5

%

Adjusted EBITDA

$

3,235

$

2,607

24%

% of non-GAAP net revenue

13

%

12

%

Non-GAAP earnings per share - diluted

$

2.13

$

1.34

59%

DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited; continued on next page)

Three Months Ended

April 30, 2021

May 1, 2020

Change

Net revenue

$

24,487

$

21,897

12%

Non-GAAP adjustments:

Impact of purchase accounting

12

48

Non-GAAP net revenue

$

24,499

$

21,945

12%

Gross margin

$

7,658

$

6,853

12%

Non-GAAP adjustments:

Amortization of intangibles

276

372

Impact of purchase accounting

13

51

Transaction-related expenses

—

—

Stock-based compensation expense

58

40

Other corporate expenses

13

9

Non-GAAP gross margin

$

8,018

$

7,325

9%

Operating expenses

$

6,283

$

6,151

2%

Non-GAAP adjustments:

Amortization of intangibles

(433)

(483)

Impact of purchase accounting

(12)

(12)

Transaction-related expenses

(51)

(76)

Stock-based compensation expense

(377)

(330)

Other corporate expenses

(106)

(86)

Non-GAAP operating expenses

$

5,304

$

5,164

3%

Operating income

$

1,375

$

702

96%

Non-GAAP adjustments:

Amortization of intangibles

709

855

Impact of purchase accounting

25

63

Transaction-related expenses

51

76

Stock-based compensation expense

435

370

Other corporate expenses

119

95

Non-GAAP operating income

$

2,714

$

2,161

26%