Dell Technologies Inc. (NYSE:DELL) Q1 2020 Earnings Conference Call - Final Transcript
May 30, 2019 • 06:00 pm ET
Good afternoon, and welcome to the Fiscal Year 2020 First Quarter Financial Results Conference Call for Dell Technologies Incorporated. I'd like to inform all participants that 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 parts without the prior written permission of Dell Technologies is prohibited. Following the prepared remarks, we will conduct a question-and-answer session. (Operator Instructions)
I'd like to turn the call over to Rob Williams, Head of Investor Relations. Mr. Williams, you may begin.
Robert L. Williams
Thanks, Ian, and thanks for joining us. With me today are our Vice Chairman, Jeff Clarke; our CFO, Tom Sweet; and our Treasurer, Tyler Johnson.
During this call, we will reference non-GAAP financial measures including non-GAAP revenue, gross margin, operating expenses, operating income, net income, EPS, EBITDA, adjusted EBITDA, and adjusted free cash flow. A reconciliation of these measures to their most directly comparable GAAP measures can be found in our web deck and press release. Please also note that all growth percentages refer to year-over-year change unless otherwise specified.
Finally, 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. We assume no obligation to update our forward-looking statements.
Now, I'll turn it over to Jeff.
Jeffrey W. Clarke
Thanks, Rob. Good afternoon, everyone. I would like to cover three topics before Tom goes through the financial results. First, our view on the IT spending environment; second, new solutions we have introduced; and third, the current demand backdrop. We are in the midst of a technology-led investment cycle that is accelerating digital transformation. The latest IDC forecasts for IT spending through 2022 excluding telecom supports this view with projected growth to be more than 2x real GDP and that investment is fueled by exponential increase in data and data-centric workloads that are driving better business outcomes alongside an increasingly diverse and mobile workforce.
Our investments in solutions and innovations are pointed directly at this opportunity. We have a differentiated portfolio that is delivering solutions from the edge, to the core, to the cloud and our customers are taking advantage of the value that Dell Technology provides. This was all clear earlier this month when we hosted 15,000 customers, partners and industry experts at Dell Technologies world. At this event, we unveiled the Dell Technologies Cloud, a new set of cloud infrastructure solutions to make hybrid cloud environment simpler to deploy and manage as customers continue to move towards hybrid cloud environments. We announced a new data center as a service offering. This fully managed solution brings the simplicity of power cloud service consumption to an on-premise environment. This service can be combined with Dell Technologies cloud platforms or public cloud on Dell technology solutions like