Dell Technologies Inc.

Good afternoon and welcome to the fiscal year 2023 first quarter financial 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 earnings materials are available on our IR website, and I encourage you to review these presentation materials, which include rich content to complement our discussion this afternoon. Guidance will also be covered on today's call. During this call, unless otherwise indicated, all references to financial measures refer to non-GAAP financial measures, which include non-GAAP revenue, gross margin, operating expenses, operating income, net income, earnings per share, and adjusted free cash flow. A reconciliation of these measures to the most directly comparable gap measures can be found in our web deck and press release. Growth percentages refer to year-over-year change unless otherwise noted. 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. During the call today, Jeff will recap Q1 and innovation highlights from Dell Technologies World, along with the current demand and supply chain environments. Chuck will cover detailed Q1 CSG and ISG operating performance, and Tom will cover our Q1 financial results, capital allocation, and guidance. Now, I'll turn it over to Jeff.

Hello, everybody. Thanks for joining us. Following a record FY22, we continue to execute quite well in a complex macro environment. We are focused on our long-term strategy while continuing to innovate, enhancing existing solutions, and creating new ones for our customers. For Q1, we delivered record revenue of $26.1 billion, up 16%, with strong, balanced growth across CSG and ISG. We also improved our profitability in the quarter, and we will continue to focus on disciplined cost management. As a result, diluted EPS was $1.84, a record up 36%. Over the last 12 months, we have generated $5.8 billion of cash flow from operations. We are grateful to succeed alongside our customers. At Dell Technologies World, customers like CVS Health, USAA, General Motors and Boeing talked about reinventing their processes and their industries, while unleashing innovation, productivity, and sustainability with Dell as a key technology partner. We highlighted our role in the multi-cloud future, announcing a steady stream of innovation that places us at the center of our customers' multi-cloud world. Specifically, We made a series of announcements that demonstrate the work we are doing to build a multi-cloud ecosystem that includes all major public clouds. We shared Project Alpine, which brings enterprise class data services into the public cloud for cloud bursting, test and development, cloud-based analytics, data and container mobility. We are also unlocking the power of data through our partnership with Snowflake, the first of its kind, that provides direct access to Dell object storage on-prem, and we are including cybersecurity throughout. In addition, we also announced over 500 software enhancements to our industry-leading storage portfolio. For PowerMax, the world's most secure mission-critical storage, we introduced a new intelligent NVMe multi-node scale-out architecture with isolated cyber vaults, 65 million immutable snapshots, and the industry's first data compression for mainframes. For PowerStore, we added ease of integration, significantly boosted mixed workload performance, deepened VMware integration, and added native MetroSync replication. And with PowerFlex, we have the only software-defined infrastructure that scales almost limitlessly. For compute and storage, while supporting bare metal, all hypervisors, and file and block storage services on a single platform with increased cyber resiliency and multi-cloud extensions. These software-driven innovations enable a continuously modern storage experience with highly adaptable storage architectures, comprehensive cyber resiliency, and multi-cloud ecosystem flexibility. And lastly, we announced a range of APEX offers that further expand our subscription and as-a-service capabilities. To date, the transition towards multi-cloud and a highly distributed architecture is playing out much like we thought. It's clear our strategy is resonating across our customers and partner ecosystem. Turning to the supply chain, we experienced a wide range of semiconductor shortages that impacted CSG and ISG in Q1. In addition, the COVID lockdowns in China caused temporary supply chain interruptions in the quarter. As a result, backlog levels were elevated across CSG and ISG exiting the quarter. We expect backlog to remain elevated through at least Q2 due to current demand and industry-wide supply chain challenges. Q1 component costs were deflationary across key commodities, but logistics spend remained elevated due to higher rates and a mix of expedited parts. Turning to Q2, we expect component costs to turn inflationary and logistics costs remain at elevated levels. That all said, Dell Technologies is well positioned to navigate these supply chain challenges just as we have over the past three-plus years. The big picture. As we previously noted, we are seeing a shift in spend from consumer and PCs to data center infrastructure. IT demand is currently healthy. However, there are a number of uncertainties out in the broader macro that we continue to monitor, geopolitical issues, inflation, ongoing supply chain challenges, chip constraints, and COVID shutdowns. What we've shown over the years is that regardless of the environment, we are agile and built to outperform. We are able to quickly lean into opportunities and focus on what we can control, executing our strategy for growth, innovating for our customers, motivating our teams, building better communities, and delivering for our stakeholders. And with that, I'd like to turn it over to Chuck for a deeper dive into our segment results.