Dell Technologies Inc.

Good afternoon and welcome to the fiscal year 2022 third quarter results conference call for Dell Technologies Incorporated. I'd like to inform all participants this call is being recorded at the request of Dell Technologies. This broadcast is the copyrighted property of Dell Technologies Incorporated. Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited. Following prepared remarks, we will conduct a question and answer session. If you have a question, simply press star then one on your telephone keypad at any time during the presentation. I'd like to turn the call over to Rob Williams, Head of Investor Relations. Mr. Williams, you may begin.

Thanks, Jamaria, and thanks, everyone, for joining us. With me today are Jeff Clark, Chuck Witten, Tom Sweet, and Tyler Johnson. Our press release, Financial Tables Web Deck, prepared remarks, and additional materials are available on our IR website. The guidance section will be covered on today's call. During this call, unless we otherwise indicate, all references to financial measures refer to non-GAAP financial measures, including non-GAAP revenue, gross margin, operating expenses, operating income, net income, earnings per share, EBITDA, adjusted EBITDA, adjusted free cash flow, as well as an estimated non-GAAP revenue, operating income, and EPS from continuing operations. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our web deck and press release. Also note that all growth percentages refer to year-over-year change unless otherwise specified. Certain items contained in our earnings materials are presented on a continuing operations basis, giving effect to the VMware spinoff. These amounts represent management's current estimate of continuing operations financial results. Final amounts presented on a continuing operations basis will be provided in our Form 10-K for fiscal 2022 and subsequent Form 10-Q filings. Amounts are subject to change with no obligation to reconcile these estimates. Additionally, I'd like to remind you that all statements made during this call that relate to future results and events are forward-looking statements based on current expectations. Actual results and events could differ materially from those projected due to a number of risks and uncertainties which are discussed in our web deck and SEC filings. We assume no obligation to update our forward-looking statements. Now, I'd like to turn it over to Chuck.

Thanks, Rob, and hi, everyone. Thanks for joining us today. We're three quarters into what will prove to be a historic year for Dell. As Michael said at our September analyst meeting, we're just beginning to write the next chapter of the Dell Technologies story. During that meeting and with industry analysts at our annual Dell Technologies Summit in October, we shared our view on the IT industry, our strategy going forward, and our view on long-term value creation. We'd emphasize four key points from those sessions. First, we are uniquely positioned in the data and multi-cloud era. with durable advantages, market-leading positions, and the financial flexibility to drive sustained profitable growth. Second, our ISG and CSG core businesses are attractive. They sit in large markets, estimated at $670 billion in TAM, and are projected to grow in the low single digits over the next few years. We have ample headroom for growth, a track record of gaining share, and are pursuing a differentiated strategy to consolidate and modernize our core business. including through our Apex-branded as-a-service solutions. In CSG, our differentiation comes from our unique direct sales motion and strategic channel program, our focus on the most stable and premium parts of the PC market, and our strong attached motion, which captures the value around the device as customers seek exceptional experiences and improved productivity by buying more software and peripherals. And for ISG, our leadership positions give us a unique ability to solve customer problems as data proliferates and infrastructure becomes more distributed, hybrid, and software-driven. We're your number one in x86 and mainstream server revenue, and we are also number one in all external storage categories with the most extensive and diverse storage portfolio in the industry. Our storage business addresses each segment of the market with a differentiated architecture optimized for workload needs. And, of course, our alliance with VMware is unique in the industry. We've honed a first and best technical and commercial motion that enables faster time to market and differentiated, jointly engineered solutions. The third point we'd highlight is the attractive new growth opportunities that surround our business. $650 billion in additional market opportunity, growing at an 8% kegger through 2024. These are markets where we have a unique right to win and are driving real innovation today, markets like Telco and Edge, to name just two examples. And lastly, we are firmly committed to creating shareholder value with an attractive long-term financial framework, balanced capital allocation strategy, and track record of delivering consistent results in any environment. Our year-to-date and Q3 financial results, along with our steady strategic progress, offer compelling proof of these points and our long-term strategy. Let's start with our core markets and execution. Demand for our solutions remains strong as global economic recovery and widespread digital transformation reset IT demand to higher levels. Against that backdrop, and despite the difficult supply environment, we again delivered great performance in Q3, with strong growth in all three business units, all regions, and broad strength across our commercial PC, server, and notably most of our storage portfolio. We gain share in servers, storage, and PCs according to the latest reported IDC results. As we look forward, all signposts point to continued strong market demand, and we intend to continue winning in the consolidation and gaining share over the long term. Our strategy is not just to win in the consolidation, but also to modernize our business. and our APEX-branded solutions are important to that future. Though it is still early days, we're pleased with our technical progress and the momentum across our family of as-a-service offerings, which will continue to expand going forward. For example, in October, we announced APEX Cloud Services with VMware Cloud. A terrific example of our first and best alliance with VMware, that solution gives organizations the ability to move workloads across multiple cloud environments and scale resources quickly with predictable pricing and transparent costs. Turning to our growth engines, as I said, Edge and Telecom are two perfect examples of the types of markets we are looking to disrupt, and we delivered a steady stream of innovation in these spaces in Q3. For the Edge, we introduced VxRail satellite nodes and updates to our streaming data platform. For Telecom, we introduced new bare metal orchestrator software, multiple reference architectures to accelerate ORAN and Edge deployments, and a new service offering called Respond and Restore for Telecom. We're encouraged by our ability to simultaneously deliver in our core while driving innovation in new growth markets, and we will continue to pursue adjacent growth where our market positions, customer relationships, and durable competitive advantages give us a unique right to solve customer problems in the data and multi-cloud era. Let me conclude with our commitment to long-term shareholder value. Since the September meeting, we have hit a few major milestones in our efforts to simplify our corporate structure and create financial flexibility to drive future growth. We completed the transaction to spin off VMware, and we closed the Boomi divestiture, each resulting in a more simplified corporate structure. In addition, we have returned to an investment-grade corporate rating, which opens up the opportunity for a more balanced capital allocation strategy. To sum up, we remain confident that our market positions, articulated strategy, durable competitive advantages, commitment to disciplined capital allocation, and importantly, our culture and track record of execution are great for customers and our team members, and create an attractive near and long-term opportunity for shareholders. Q3 was a great example of these winning elements coming together, and we're just getting started. With that, let me now turn it over to Jeff.