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

Three Months Ended

Fiscal Year Ended

February 3,
2023

January 28,
2022

Change

February 3,
2023

January 28,
2022

Change

Net revenue

$             25,039

$             27,992

(11) %

$           102,301

$           101,197

1 %

Non-GAAP adjustments:

Impact of purchase accounting

—

8

—

32

Non-GAAP net revenue

$             25,039

$             28,000

(11) %

$           102,301

$           101,229

1 %

Gross margin

$                5,756

$                5,618

2 %

$             22,686

$             21,891

4 %

Non-GAAP adjustments:

Amortization of intangibles

99

150

414

598

Impact of purchase accounting

—

8

2

35

Stock-based compensation expense

40

37

152

133

Other corporate expenses

76

5

173

27

Non-GAAP gross margin

$                5,971

$                5,818

3 %

$             23,427

$             22,684

3 %

Operating expenses

$                4,567

$                4,009

14 %

$             16,915

$             17,232

(2) %

Non-GAAP adjustments:

Amortization of intangibles

(139)

(173)

(556)

(1,043)

Impact of purchase accounting

(11)

(12)

(42)

(32)

Transaction-related (income) expenses

(6)

22

(22)

(273)

Stock-based compensation expense

(188)

(179)

(779)

(675)

Other corporate expenses

(422)

(40)

(726)

(310)

Non-GAAP operating expenses

$                3,801

$                3,627

5 %

$             14,790

$             14,899

(1) %

Operating income

$                1,189

$                1,609

(26) %

$                5,771

$                4,659

24 %

Non-GAAP adjustments:

Amortization of intangibles

238

323

970

1,641

Impact of purchase accounting

11

20

44

67

Transaction-related (income) expenses

6

(22)

22

273

Stock-based compensation expense

228

216

931

808

Other corporate expenses

498

45

899

337

Non-GAAP operating income

$                2,170

$                2,191

(1) %

$                8,637

$                7,785

11 %