DELL TECHNOLOGIES INC.

Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited)

Three Months Ended

May 1, 2020

May 3, 2019

Change

Non-GAAP net revenue

$

21,945

$

21,990

—

%

Non-GAAP gross margin

$

7,325

$

7,434

(1)

%

% of non-GAAP net revenue

33

%

34

%

Non-GAAP operating expenses

$

5,164

$

5,238

(1)

%

% of non-GAAP net revenue

24

%

24

%

Non-GAAP operating income

$

2,161

$

2,196

(2)

%

% of non-GAAP net revenue

10

%

10

%

Non-GAAP net income

$

1,143

$

1,209

(5)

%

% of non-GAAP net revenue

5

%

5

%

Adjusted EBITDA

$

2,607

$

2,573

1

%

% of non-GAAP net revenue

12

%

12

%

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued on next page)

Three Months Ended

May 1, 2020

May 3, 2019

Change

Net revenue

$

21,897

$

21,908

—

Non-GAAP adjustments:

Impact of purchase accounting

48

82

Non-GAAP net revenue

$

21,945

$

21,990

—

%

Gross margin

$

6,853

$

6,797

1

%

Non-GAAP adjustments:

Amortization of intangibles

372

519

Impact of purchase accounting

51

84

Transaction-related expenses

—

(5)

Stock-based compensation expense

40

26

Other corporate expenses

9

13

Non-GAAP gross margin

$

7,325

$

7,434

(1)

%

Operating expenses

$

6,151

$

6,247

(2)

%

Non-GAAP adjustments:

Amortization of intangibles

(483)

(698)

Impact of purchase accounting

(12)

(17)

Transaction-related expenses

(76)

(47)

Stock-based compensation expense

(330)

(237)

Other corporate expenses

(86)

(10)

Non-GAAP operating expenses

$

5,164

$

5,238

(1)

%

Operating income

$

702

$

550

28

%

Non-GAAP adjustments:

Amortization of intangibles

855

1,217

Impact of purchase accounting

63

101

Transaction-related expenses

76

42

Stock-based compensation expense

370

263

Other corporate expenses

95

23

Non-GAAP operating income

$

2,161

$

2,196

(2)

%