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

Three Months Ended

April 29, 2022

April 30, 2021

Change

Non-GAAP net revenue

$            26,116

$            22,598

16%

Non-GAAP gross margin

$              5,941

$              5,464

9%

   % of non-GAAP net revenue

22.7 %

24.2 %

Non-GAAP operating expenses

$              3,806

$              3,694

3%

   % of non-GAAP net revenue

14.5 %

16.4 %

Non-GAAP operating income

$              2,135

$              1,770

21%

   % of non-GAAP net revenue

8.2 %

7.8 %

Non-GAAP net income

$              1,434

$              1,055

36%

   % of non-GAAP net revenue

5.5 %

4.7 %

Non-GAAP earnings per share - diluted

$                1.84

$                1.35

36%

Amounts are based on underlying data and may not visually foot due to rounding.

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

Three Months Ended

April 29, 2022

April 30, 2021

Change

Net revenue

$             26,116

$             22,590

16%

   Non-GAAP adjustments:

     Impact of purchase accounting

—

8

       Non-GAAP net revenue

$             26,116

$             22,598

16%

Gross margin

$                5,784

$                5,264

10%

   Non-GAAP adjustments:

       Amortization of intangibles

104

150

     Impact of purchase accounting

2

9

     Stock-based compensation expense

38

28

     Other corporate expenses

13

13

       Non-GAAP gross margin

$                5,941

$                5,464

9%

Operating expenses

$                4,234

$                4,277

(1)%

   Non-GAAP adjustments:

     Amortization of intangibles

(139)

(295)

     Impact of purchase accounting

(7)

(11)

     Transaction-related expenses

(5)

(29)

     Stock-based compensation expense

(194)

(144)

     Other corporate expenses

(83)

(104)

       Non-GAAP operating expenses

$                3,806

$                3,694

3%

Operating income

$                1,550

$                   987

57%

   Non-GAAP adjustments:

     Amortization of intangibles

243

445

     Impact of purchase accounting

9

20

     Transaction-related (income) expenses

5

29

     Stock-based compensation expense

232

172

     Other corporate expenses

96

117

       Non-GAAP operating income

$                2,135

$                1,770

21%