Technology

Dell Technologies Delivers Second Quarter Fiscal 2025 Financial Results

Published

3 months ago

August 29, 2024

News summary

Second quarter revenue of $25.0 billion, up 9% year over yearRecord Infrastructure Solutions Group (ISG) revenue of $11.6 billion, up 38% year over year, with record servers and networking revenue of $7.7 billion, up 80%Client Solutions Group (CSG) revenue of $12.4 billion, down 4% year over year, with commercial client revenue flat at $10.6 billionDiluted earnings per share of $1.17, up 86% year over year, and non-GAAP diluted earnings per share of $1.89, up 9%

ROUND ROCK, Texas, Aug. 29, 2024 /PRNewswire/ —

Full story
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2025 second quarter. Revenue was $25.0 billion, up 9% year over year. Operating income was $1.3 billion and non-GAAP operating income was $2.0 billion, up 15% and 3% year over year, respectively. Diluted earnings per share was $1.17, and non-GAAP diluted earnings per share was $1.89, up 86% and 9% year over year, respectively.

“In Q2 our combined ISG and CSG revenue was $24.1 billion, up 12% year over year, positioning us well for the second half of the year and beyond,” said Yvonne McGill, chief financial officer, Dell Technologies. “Our momentum in ISG is a significant tailwind, with record ISG revenue of $11.6 billion, up 38% year over year.”

Cash flow from operations was $1.3 billion. Dell returned $1 billion to shareholders through share repurchases and dividends and ended the quarter with $6.0 billion in cash and investments.

Second Quarter Fiscal 2025 Financial Results

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

(in millions, except per share amounts and percentages; unaudited)

Net revenue

$ 25,026

$ 22,934

9 %

$ 47,270

$ 43,856

8 %

Operating income

$ 1,342

$ 1,165

15 %

$ 2,262

$ 2,234

1 %

Net income

$ 841

$ 455

85 %

$ 1,796

$ 1,033

74 %

Change in cash from operating activities

$ 1,340

$ 3,214

(58) %

$ 2,383

$ 4,991

(52) %

Earnings per share – diluted

$ 1.17

$ 0.63

86 %

$ 2.49

$ 1.42

75 %

Non-GAAP operating income

$ 2,034

$ 1,977

3 %

$ 3,508

$ 3,575

(2) %

Non-GAAP net income

$ 1,371

$ 1,283

7 %

$ 2,294

$ 2,246

2 %

Adjusted free cash flow

$ 1,284

$ 3,050

(58) %

$ 1,907

$ 3,737

(49) %

Non-GAAP earnings per share – diluted

$ 1.89

$ 1.74

9 %

$ 3.16

$ 3.05

4 %

Information about Dell Technologies’ use of non-GAAP financial information is provided under “Non-GAAP Financial Measures” below. All comparisons in this press release are year-over-year unless otherwise noted.

Infrastructure Solutions Group (ISG) delivered record second quarter revenue of $11.6 billion, up 38% year over year. Servers and networking revenue was a record $7.7 billion, up 80%, with demand growth across AI and traditional servers. Storage revenue was $4.0 billion, down 5%. Operating income was $1.3 billion.

“Our AI momentum accelerated in Q2, and we’ve seen an increase in the number of enterprise customers buying AI solutions each quarter,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “AI-optimized server demand was $3.2 billion, up 23% sequentially, and $5.8 billion year to date. Backlog was $3.8 billion, and our pipeline has grown to several multiples of our backlog.”

Client Solutions Group (CSG) delivered second quarter revenue of $12.4 billion, down 4% year over year. Commercial client revenue was flat at $10.6 billion, and Consumer revenue was $1.9 billion, down 22%. Operating income was $767 million.

Operating Segments Results

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

(in millions, except percentages; unaudited)

Infrastructure Solutions Group (ISG):

Net revenue:

Servers and networking

$ 7,672

$ 4,274

80 %

$ 13,138

$ 8,111

62 %

Storage

3,974

4,187

(5) %

7,735

7,943

(3) %

Total ISG net revenue

$ 11,646

$ 8,461

38 %

$ 20,873

$ 16,054

30 %

Operating Income:

ISG operating income

$ 1,284

$ 1,049

22 %

$ 2,020

$ 1,789

13 %

% of ISG net revenue

11.0 %

12.4 %

9.7 %

11.1 %

% of total reportable segment operating income

63 %

52 %

57 %

49 %

Client Solutions Group (CSG):

Net revenue:

Commercial

$ 10,556

$ 10,554

— %

$ 20,710

$ 20,416

1 %

Consumer

1,858

2,388

(22) %

3,671

4,509

(19) %

Total CSG net revenue

$ 12,414

$ 12,942

(4) %

$ 24,381

$ 24,925

(2) %

Operating Income:

CSG operating income

$ 767

$ 969

(21) %

$ 1,499

$ 1,861

(19) %

% of CSG net revenue

6.2 %

7.5 %

6.1 %

7.5 %

% of total reportable segment operating income

37 %

48 %

43 %

51 %

Conference call information
As previously announced, the company will hold a conference call to discuss its performance and financial guidance on August 29 at 3:30 p.m. CDT. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information prior to financial guidance may be downloaded from investors.delltechnologies.com. The conference call will be broadcast live over the internet and can be accessed at https://investors.delltechnologies.com/news-events/upcoming-events.

For those unable to listen to the live broadcast, the final remarks and presentation with financial guidance will be available following the broadcast, and an archived version will be available at the same location for one year.

About Dell Technologies
Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the AI era.

Copyright © 2024 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

Non-GAAP Financial Measures:
This press release presents information about non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc., non-GAAP earnings per share attributable to Dell Technologies Inc. – diluted, free cash flow, and adjusted free cash flow, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America (“GAAP”). A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the attached tables for each of the fiscal periods indicated.

Special Note on Forward-Looking Statements:
Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies’ current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “confidence,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will” and “would,” or similar words or expressions that refer to future events or outcomes.

Dell Technologies’ results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: adverse global economic conditions and instability in financial markets; competitive pressures; Dell Technologies’ reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies’ ability to achieve favorable pricing from its vendors; Dell Technologies’ execution of its strategy; social and ethical issues relating to the use of new and evolving technologies; Dell Technologies’ ability to manage solutions and products and services transitions in an effective manner; Dell Technologies’ ability to deliver high-quality products, software, and services; cyber attacks or other data security incidents; Dell Technologies’ ability to successfully execute on strategic initiatives including acquisitions, divestitures or cost savings measures; Dell Technologies’ foreign operations and ability to generate substantial non-U.S. net revenue; Dell Technologies’ product, services, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies’ sales channel partners; access to the capital markets by Dell Technologies or its customers; material impairment of the value of goodwill or intangible assets; adverse economic conditions and the effect of additional regulation on Dell Technologies’ financial services activities; counterparty default risks; the loss by Dell Technologies of any contracts for ISG services and solutions and its ability to perform such contracts at their estimated costs; loss by Dell Technologies of government contracts; Dell Technologies’ ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; disruptions in Dell Technologies’ infrastructure; Dell Technologies’ ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; expectations relating to environmental, social and governance (ESG) considerations; compliance requirements of changing environmental and safety laws, human rights laws, or other laws; the effect of armed hostilities, terrorism, natural disasters, or public health issues; the effect of global climate change and legal, regulatory, or market measures to address climate change; Dell Technologies’ dependence on the services of Michael Dell and key employees; Dell Technologies’ level of indebtedness; and business and financial factors and legal restrictions affecting continuation of Dell Technologies’ quarterly cash dividend policy and dividend rate.

This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect Dell Technologies’ business, financial condition, results of operations, and prospects, in its reports filed with the SEC, including Dell Technologies’ annual report on Form 10-K for the fiscal year ended February 2, 2024, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the SEC’s website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties, and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.

DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Income and Related Financial Highlights

(in millions, except percentages; unaudited)

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

Net revenue:

Products

$ 18,954

$ 16,935

12 %

$ 35,081

$ 31,971

10 %

Services

6,072

5,999

1 %

12,189

11,885

3 %

Total net revenue

25,026

22,934

9 %

47,270

43,856

8 %

Cost of net revenue:

Products

16,079

14,002

15 %

29,845

26,377

13 %

Services

3,636

3,545

3 %

7,308

7,074

3 %

Total cost of net revenue

19,715

17,547

12 %

37,153

33,451

11 %

Gross margin

5,311

5,387

(1) %

10,117

10,405

(3) %

Operating expenses:

Selling, general, and administrative

3,189

3,517

(9) %

6,312

6,778

(7) %

Research and development

780

705

11 %

1,543

1,393

11 %

Total operating expenses

3,969

4,222

(6) %

7,855

8,171

(4) %

Operating income

1,342

1,165

15 %

2,262

2,234

1 %

Interest and other, net

(353)

(451)

22 %

(726)

(815)

11 %

Income before income taxes

989

714

39 %

1,536

1,419

8 %

Income tax expense (benefit)

148

259

(43) %

(260)

386

(167) %

Net income

841

455

85 %

1,796

1,033

74 %

Less: Net loss attributable to non-controlling
interests

(5)

(7)

29 %

(10)

(12)

17 %

Net income attributable to Dell Technologies Inc.

$ 846

$ 462

83 %

$ 1,806

$ 1,045

73 %

Percentage of Total Net Revenue:

Gross margin

21.2 %

23.5 %

21.4 %

23.7 %

Selling, general, and administrative

12.7 %

15.3 %

13.3 %

15.4 %

Research and development

3.1 %

3.3 %

3.2 %

Operating expenses

15.8 %

18.4 %

16.6 %

18.6 %

Operating income

5.4 %

5.1 %

4.8 %

5.1 %

Income before income taxes

4.0 %

3.1 %

3.2 %

Net income

3.4 %

2.0 %

3.8 %

2.4 %

Income tax rate

15.0 %

36.3 %

(16.9) %

27.2 %

Amounts are based on underlying data and may not visually foot due to rounding.

DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Financial Position

(in millions; unaudited)

August 2, 2024

February 2, 2024

ASSETS

Current assets:

Cash and cash equivalents

$ 4,550

$ 7,366

Accounts receivable, net of allowance of $78 and $71

11,391

9,343

Short-term financing receivables, net of allowance of $79 and $79

4,968

4,643

Inventories

5,953

3,622

Other current assets

10,681

10,973

Total current assets

37,543

35,947

Property, plant, and equipment, net

6,300

6,432

Long-term investments

1,302

1,316

Long-term financing receivables, net of allowance of $87 and $91

6,124

5,877

Goodwill

19,654

19,700

Intangible assets, net

5,374

5,701

Other non-current assets

6,390

7,116

Total assets

$ 82,687

$ 82,089

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Short-term debt

$ 6,711

$ 6,982

Accounts payable

24,095

19,389

Accrued and other

6,374

6,805

Short-term deferred revenue

14,853

15,318

Total current liabilities

52,033

48,494

Long-term debt

17,811

19,012

Long-term deferred revenue

12,859

13,827

Other non-current liabilities

2,781

3,065

Total liabilities

85,484

84,398

Stockholders’ equity (deficit):

Total Dell Technologies Inc. stockholders’ equity (deficit)

(2,894)

(2,404)

Non-controlling interests

Total stockholders’ equity (deficit)

(2,797)

(2,309)

Total liabilities and stockholders’ equity

$ 82,687

$ 82,089

DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Cash Flows

(in millions; unaudited)

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

August 2,
2024

August 4,
2023

Cash flows from operating activities:

Net income

$ 841

$ 455

$ 1,796

$ 1,033

Adjustments to reconcile net income to net cash provided
by operating activities:

499

2,759

587

3,958

Change in cash from operating activities

1,340

3,214

2,383

4,991

Cash flows from investing activities:

Purchases of investments

(25)

(98)

(64)

(113)

Maturities and sales of investments

108

216

127

Capital expenditures and capitalized software
development costs

(682)

(624)

(1,278)

(1,325)

Other

113

Change in cash from investing activities

(557)

(605)

(1,013)

(1,289)

Cash flows from financing activities:

Proceeds from the issuance of common stock

Repurchases of common stock

(725)

(260)

(1,425)

(500)

Repurchases of common stock for employee tax
withholdings

(14)

(6)

(535)

(312)

Payments of dividends and dividend equivalents

(316)

(269)

(652)

(545)

Proceeds from debt

1,941

2,134

4,933

4,655

Repayments of debt

(2,917)

(3,384)

(6,394)

(7,082)

Debt-related costs and other, net

(2)

(44)

(37)

(49)

Change in cash from financing activities

(2,032)

(1,827)

(4,109)

(3,829)

Effect of exchange rate changes on cash, cash equivalents,
and restricted cash

(42)

(59)

(97)

(117)

Change in cash, cash equivalents, and restricted cash

(1,291)

723

(2,836)

(244)

Cash, cash equivalents, and restricted cash at beginning of
the period

5,962

7,927

7,507

8,894

Cash, cash equivalents, and restricted cash at end of the
period

$ 4,671

$ 8,650

$ 4,671

$ 8,650

DELL TECHNOLOGIES INC.

Segment Information

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

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

Infrastructure Solutions Group (ISG):

Net revenue:

Servers and networking

$ 7,672

$ 4,274

80 %

$ 13,138

$ 8,111

62 %

Storage

3,974

4,187

(5) %

7,735

7,943

(3) %

Total ISG net revenue

$ 11,646

$ 8,461

38 %

$ 20,873

$ 16,054

30 %

Operating Income:

ISG operating income

$ 1,284

$ 1,049

22 %

$ 2,020

$ 1,789

13 %

% of ISG net revenue

11.0 %

12.4 %

9.7 %

11.1 %

% of total reportable segment operating income

63 %

52 %

57 %

49 %

Client Solutions Group (CSG):

Net revenue:

Commercial

$ 10,556

$ 10,554

— %

$ 20,710

$ 20,416

1 %

Consumer

1,858

2,388

(22) %

3,671

4,509

(19) %

Total CSG net revenue

$ 12,414

$ 12,942

(4) %

$ 24,381

$ 24,925

(2) %

Operating Income:

CSG operating income

$ 767

$ 969

(21) %

$ 1,499

$ 1,861

(19) %

% of CSG net revenue

6.2 %

7.5 %

6.1 %

7.5 %

% of total reportable segment operating income

37 %

48 %

43 %

51 %

Amounts are based on underlying data and may not visually foot due to rounding.

DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited; continued)

Three Months Ended

Six Months Ended

August 2, 2024

August 4, 2023

August 2, 2024

August 4, 2023

Reconciliation to consolidated net revenue:

Reportable segment net revenue

$ 24,060

$ 21,403

$ 45,254

$ 40,979

Other businesses (a)

966

1,528

2,015

2,871

Unallocated transactions (b)

—

Total consolidated net revenue

$ 25,026

$ 22,934

$ 47,270

$ 43,856

Reconciliation to consolidated operating income:

Reportable segment operating income

$ 2,051

$ 2,018

$ 3,519

$ 3,650

Other businesses (a)

(17)

(44)

(11)

(80)

Unallocated transactions (b)

—

Amortization of intangibles (c)

(168)

(213)

(336)

(416)

Stock-based compensation expense (d)

(191)

(223)

(401)

(448)

Other corporate expenses (e)

(333)

(376)

(509)

(477)

Total consolidated operating income

$ 1,342

$ 1,165

$ 2,262

$ 2,234

_________________

(a)

Other businesses consists of: 1) Dell’s resale of standalone VMware, Inc. products and services, “VMware Resale,” 2) Secureworks, and 3) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively.

(b)

Unallocated transactions includes other corporate items that are not allocated to Dell Technologies’ reportable segments.

(c)

Amortization of intangibles includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.

(d)

Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date.

(e)

Other corporate expenses consist primarily of severance expenses, payroll taxes associated with stock-based compensation, facility action costs, transaction-related expenses, impairment charges, and incentive charges related to equity investments. Other corporate expenses included $328 million and $364 million of severance expense during the three months ended August 2, 2024 and August 4, 2023, respectively.

SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES

These tables present information about the Company’s non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc., non-GAAP earnings per share attributable to Dell Technologies Inc. – diluted, free cash flow and adjusted free cash flow, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America (“GAAP”). A detailed discussion of Dell Technologies’ reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures” in our periodic reports filed with the SEC. Dell Technologies encourages investors to review the non-GAAP discussion in these reports in conjunction with the presentation of non-GAAP financial measures.

DELL TECHNOLOGIES INC.

Selected Financial Measures

(in millions, except per share amounts and percentages; unaudited)

Three Months Ended

Six Months Ended

August 2, 2024

August 4, 2023

Change

August 2, 2024

August 4, 2023

Change

Net revenue

$ 25,026

$ 22,934

9 %

$ 47,270

$ 43,856

8 %

Non-GAAP gross margin

$ 5,464

$ 5,536

(1) %

$ 10,411

$ 10,700

(3) %

% of net revenue

21.8 %

24.1 %

22.0 %

24.4 %

Non-GAAP operating expenses

$ 3,430

$ 3,559

(4) %

$ 6,903

$ 7,125

(3) %

% of net revenue

13.7 %

15.5 %

14.6 %

16.2 %

Non-GAAP operating income

$ 2,034

$ 1,977

3 %

$ 3,508

$ 3,575

(2) %

% of net revenue

8.1 %

8.6 %

7.4 %

8.2 %

Non-GAAP net income

$ 1,371

$ 1,283

7 %

$ 2,294

$ 2,246

2 %

% of net revenue

5.5 %

5.6 %

4.9 %

5.1 %

Non-GAAP earnings per share – diluted

$ 1.89

$ 1.74

9 %

$ 3.16

$ 3.05

4 %

Amounts are based on underlying data and may not visually foot due to rounding.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

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

Three Months Ended

Six Months Ended

August 2, 2024

August 4, 2023

Change

August 2, 2024

August 4, 2023

Change

Gross margin

$ 5,311

$ 5,387

(1) %

$ 10,117

$ 10,405

(3) %

Non-GAAP adjustments:

Amortization of intangibles

119

163

Stock-based compensation expense

Other corporate expenses

Non-GAAP gross margin

$ 5,464

$ 5,536

(1) %

$ 10,411

$ 10,700

(3) %

Operating expenses

$ 3,969

$ 4,222

(6) %

$ 7,855

$ 8,171

(4) %

Non-GAAP adjustments:

Amortization of intangibles

(109)

(129)

(217)

(253)

Stock-based compensation expense

(153)

(186)

(325)

(373)

Other corporate expenses

(277)

(348)

(410)

(420)

Non-GAAP operating expenses

$ 3,430

$ 3,559

(4) %

$ 6,903

$ 7,125

(3) %

Operating income

$ 1,342

$ 1,165

15 %

$ 2,262

$ 2,234

1 %

Non-GAAP adjustments:

Amortization of intangibles

168

213

336

416

Stock-based compensation expense

191

223

401

448

Other corporate expenses

333

376

509

477

Non-GAAP operating income

$ 2,034

$ 1,977

3 %

$ 3,508

$ 3,575

(2) %

Net income

$ 841

$ 455

85 %

$ 1,796

$ 1,033

74 %

Non-GAAP adjustments:

Amortization of intangibles

168

213

336

416

Stock-based compensation expense

191

223

401

448

Other corporate expenses

329

432

499

530

Fair value adjustments on equity
investments

(5)

Aggregate adjustment for income
taxes (a)

(153)

(69)

(763)

(225)

Non-GAAP net income

$ 1,371

$ 1,283

7 %

$ 2,294

$ 2,246

2 %

____________________

(a) Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(unaudited; continued)

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

Earnings per share attributable to Dell Technologies Inc. —
diluted

$ 1.17

$ 0.63

86 %

$ 2.49

$ 1.42

75 %

Non-GAAP adjustments:

Amortization of intangibles

0.23

0.29

0.46

0.56

Stock-based compensation expense

0.26

0.30

0.55

0.61

Other corporate expenses

0.46

0.58

0.69

0.72

Fair value adjustments on equity investments

(0.01)

0.04

0.06

Aggregate adjustment for income taxes (a)

(0.21)

(0.09)

(1.05)

(0.31)

Total non-GAAP adjustments attributable to non-
controlling interests

(0.01)

(0.02)

(0.01)

Non-GAAP earnings per share attributable to Dell
Technologies Inc. — diluted

$ 1.89

$ 1.74

9 %

$ 3.16

$ 3.05

4 %

____________________

(a) Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

Cash flow from operations

$ 1,340

$ 3,214

(58) %

$ 2,383

$ 4,991

(52) %

Non-GAAP adjustments:

Capital expenditures and capitalized software
development costs, net (a)

(636)

(624)

(1,222)

(1,322)

Free cash flow

$ 704

$ 2,590

(73) %

$ 1,161

$ 3,669

(68) %

Free cash flow

$ 704

$ 2,590

(73) %

$ 1,161

$ 3,669

(68) %

Non-GAAP adjustments:

Financing receivables (b)

487

497

652

130

Equipment under operating leases (c)

(37)

(62)

Adjusted free cash flow

$ 1,284

$ 3,050

(58) %

$ 1,907

$ 3,737

(49) %

____________________

(a)

Capital expenditures and capitalized software development costs is net of proceeds from sales of facilities, land, and other assets.

(b)

Financing receivables represent the operating cash flow impact from the change in DFS financing receivables.

(c)

Equipment under operating leases represents the net change of capital expenditures and depreciation expense for DFS leases and contractually embedded leases identified within flexible consumption arrangements.

View original content to download multimedia:https://www.prnewswire.com/news-releases/dell-technologies-delivers-second-quarter-fiscal-2025-financial-results-302234416.html

SOURCE Dell Technologies

Technology

Avathon Partners with CP PLUS, Largest CCTV Manufacturer in India, to Enhance Public Safety while Strengthening Community Bonds

Published

28 minutes ago

November 14, 2024

PLEASANTON, Calif., Nov. 13, 2024 /PRNewswire/ — Avathon, provider of the leading AI platform for industrial operations, has partnered with CP PLUS, one of the largest manufacturers of CCTV cameras, to create safer, more connected societies by bundling Avathon’s computer vision technology with each camera. The companies are bringing Avathon’s computer vision AI capabilities to small and medium-sized businesses (SMBs) across India, turning their cameras into intelligent assets that enable more secure workplaces, factories and facilities.

In today’s fast-paced world, it’s hard to keep an eye on every single detail, every minute of the day. Computer vision AI technology gives users the freedom and control to go about their daily lives knowing they will receive proactive alerts identifying safety and security issues in real time.

“Increasing demand for advanced public safety tools, smart home devices and integrated AI-powered cameras is fueling massive industry growth,” said Aditya Khemka, Managing Director, CP PLUS, a subsidiary of Aditya Group. “Our partnership with Avathon will help us to better deliver state-of-the-art AI-powered solutions that feature advanced functions like real-time anomaly detection and intelligent monitoring.”

Avathon’s computer vision AI automatically detects and alerts unsafe conditions and incidents in real time, allowing users to proactively take the right actions. Avathon enables business owners using valuable resources to monitor CCTV camera feeds to get back to focusing on operations. The company partners with OEM camera manufacturers by providing AI technology that enables end customers to quickly and accurately address processes, behaviors, and conditions that cause unacceptable risk. Through its partnership with CP PLUS, Avathon has democratized this technology, giving access to large organizations and small businesses alike.

CP PLUS is India’s leading surveillance brand with the most extensive portfolio in the entire global industry. Representing a major share of the Indian CCTV market, CP PLUS offers a range of products and services to meet the varied needs of government, commercial, residential, and industrial customers and its products are successfully deployed in every nook and corner of India and many countries across verticals and industry.

“AI cameras are paving the path forward in India toward smart-city initiatives and enhanced public safety improvements. In this sometimes disconnected world, it’s comforting to rely on a technology that instantly alerts users to potential dangers and other anomalies,” said Pervinder Johar, CEO of Avathon. “We’re proud to partner with CP PLUS to provide the AI innovations needed to push India to the leading edge of technological advancement.”

About Avathon

Avathon, a leader in Industrial AI, extends the life of critical infrastructure while advancing the journey toward full autonomy. Avathon’s Industrial AI platform empowers commercial and government customers with scalable, secure, and value-driven solutions that enhance efficiency and resilience across heavy industry.

Media contact:

Jon Ross
Sr. PR & Communications Manager
Avathon
jross@avathon.com

View original content:https://www.prnewswire.com/news-releases/avathon-partners-with-cp-plus-largest-cctv-manufacturer-in-india-to-enhance-public-safety-while-strengthening-community-bonds-302304865.html

SOURCE Avathon

Technology

Belgian Unicorn Odoo Celebrates Remarkable First Anniversary in Indonesia

Published

28 minutes ago

November 14, 2024

JAKARTA, Indonesia, Nov. 14, 2024 /PRNewswire/ — This November, Belgian business management software company Odoo celebrates 1st anniversary of the Indonesian office with esteemed partners and customers like Ismaya, Pertamina Energy Terminal, DORÉ, Dekoruma, Abuba Steak, Perum Bulog and Arista Group, to name a few.

With a mission to help more businesses to become digitally organized, the software company started actively developing the Indonesian market five years ago and has reached record-breaking milestones one after another—91.2% average annual growth and a quadrupled 189 active local partners—making Indonesia the best-performing market in APAC for six consecutive years.

The now locally based Odoo Indonesia is confident in extending services and helping businesses of all sizes in the country to digitally transform business management to contribute to optimized workflow efficiency and national economic growth.

To support rapid market expansion, Odoo will base its operations in BSD as the area embodies the start-up environment the Belgian firm always strives for—vibrant & dynamic—a choice affirmed by its sustained success in digital transformation endeavors across Indonesia.

Odoo opens first SEA office in BSD.

From a squad of 3, Odoo Indonesia has expanded into an over 80-strong team. In 2024, it engaged the community at 41 events in major cities, including Medan, Bandung, Surabaya, and Makassar, and around the archipelago in Java, Sumatra, Kalimantan, and Sulawesi, providing countless on-site support. Within a year of opening, the company introduced multiple landmark integrations and regionalized upgrades.

Odoo-Xendit Integration

Integration with Indonesian-based payment solution provider Xendit is made standard in Odoo to facilitate effortless transactions in Indonesia and across Southeast Asia through QRIS, e-Wallets, convenience stores, and other major payment methods in the region.

e-Faktur Submission

To support the Tax Office e-Faktur application, Odoo now collects necessary data to automate documents to assist users in completing the submission process in compliance with local regulations and is in the last stages of integrating with Pajak.io for direct submission from Odoo.

QRIS Features

The team introduced QRIS into the system to maximize ways to receive payments, facilitating a more convenient and localized payment process for Indonesian Odoo users.

Odoo-Shopee Integration

In October, Odoo announced upcoming integration with Shopee, the leading eCommerce platform in Southeast Asia.

“The opening of Odoo’s new office in BSD marks a significant milestone in our effort to penetrate the Indonesia market. Looking at our journey so far, I am also extremely proud of my team for their relentless contributions in helping our customers become more efficient, one app at a time. Moving forward, we aim to expand the team even more and the best part is: we are always looking for top talents to join us!” — Benny Putra Sugito, Director of Odoo (Indonesia)

Odoo is committed to leading the Indonesian business scene. While its expansion also aims to generate employment opportunities to offer the country a professional workforce in tech and business management, Odoo is resolute in educating the market about the significance of utilizing the right business tools and is dedicated to offering a comprehensive and integrable yet approachable solution to facilitate an easy digital transformation process for 64.2 million businesses of all sizes in Indonesia.

About Odoo

Odoo is a Belgian online business management software with a complete suite of business modules. The open-source service provider operates in 19 locations worldwide, including Indonesia, the United States, Hong Kong SAR, and Dubai. With 80+ official apps and 49k+ third-party apps, Odoo manages businesses’ finance, sales, inventory & manufacturing processes, human resources, marketing, team productivity, and more.

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/belgian-unicorn-odoo-celebrates-remarkable-first-anniversary-in-indonesia-302305086.html

SOURCE PT Odoo Software Indonesia

Technology

ZEEKR Reports Third Quarter 2024 Unaudited Financial Results

Published

28 minutes ago

November 14, 2024

HANGZHOU, China, Nov. 14, 2024 /PRNewswire/ — ZEEKR Intelligent Technology Holding Limited (“ZEEKR” or the “Company”) (NYSE: ZK), a global premium electric mobility technology company, today announced its unaudited financial results for the third quarter ended September 30, 2024.

Operating Highlights for the Third Quarter of 2024

Total vehicle deliveries were 55,003 units for the third quarter of 2024, representing a 51% year-over-year increase.

Deliveries

2024 Q3

2024 Q2

2024 Q1

2023 Q4

55,003

54,811

33,059

39,657

Deliveries

2023 Q3

2023 Q2

2023 Q1

2022 Q4

36,395

27,399

15,234

32,467

Financial Highlights for the Third Quarter of 2024

Vehicle sales were RMB14,401.3 million (US$2,052.2 million)[1] for the third quarter of 2024, representing an increase of 42.0% from the third quarter of 2023 and an increase of 7.2% from the second quarter of 2024.

Vehicle margin[2] was 15.7% for the third quarter of 2024, compared with 18.1% for the third quarter of 2023 and 14.2% for the second quarter of 2024.

Total revenues were RMB18,358.0 million (US$2,616.0 million) for the third quarter of 2024, representing an increase of 30.7% from the third quarter of 2023 and a decrease of 8.4% from the second quarter of 2024.

Gross profit was RMB2,941.8 million (US$419.2 million) for the third quarter of 2024, representing an increase of 28.5% from the third quarter of 2023 and a decrease of 14.7% from the second quarter of 2024.

Gross margin was 16.0% for the third quarter of 2024, compared with 16.3% for the third quarter of 2023 and 17.2% for the second quarter of 2024.

Loss from operations was RMB1,216.4 million (US$173.3 million) for the third quarter of 2024, representing a decrease of 19.3% from the third quarter of 2023 and a decrease of 29.3% from the second quarter of 2024. Excluding share-based compensation expenses, adjusted loss from operations (non-GAAP)[3] was RMB1,169.8 million (US$166.7 million) for the third quarter of 2024, representing a decrease of 20.8% from the third quarter of 2023 and an increase of 50.5% from the second quarter of 2024.

Net loss was RMB1,139.1 million (US$162.3 million) for the third quarter of 2024, representing a decrease of 21.7% from the third quarter of 2023 and a decrease of 37.0% from the second quarter of 2024. Excluding share-based compensation expenses, adjusted net loss (non-GAAP) was RMB1,092.6 million (US$155.7 million) for the third quarter of 2024, representing a decrease of 23.4% from the third quarter of 2023 and an increase of 26.3% from the second quarter of 2024.

[1] All conversions from Renminbi(“RMB”) to U.S. dollars (“US$”) are made at an exchange rate of RMB7.0176 to US$1.00, set forth in the H.10 statistical release of the Federal Reserve Board on September 30, 2024.

[2] Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of revenues derived from vehicle sales only.

[3] The Company’s non-GAAP financial measures exclude share-based compensation expenses. See “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this announcement.

Key Financial Results

(in RMB millions, except for percentages)

2024 Q3

2024 Q2

2023 Q3

% Change i

YoY

QoQ

Vehicle sales

14,401.3

13,438.2

10,143.7

42.0 %

7.2 %

Vehicle margin

15.7 %

14.2 %

18.1 %

(2.4)pts

1.5pts

Total revenues

18,358.0

20,040.1

14,044.6

30.7 %

(8.4) %

Gross profit

2,941.8

3,449.8

2,289.4

28.5 %

(14.7) %

Gross margin

16.0 %

17.2 %

16.3 %

(0.3)pts

(1.2)pts

Loss from operations

(1,216.4)

(1,721.0)

(1,507.8)

(19.3) %

(29.3) %

Non-GAAP loss from operations

(1,169.8)

(777.1)

(1,477.6)

(20.8) %

50.5 %

Net loss

(1,139.1)

(1,808.8)

(1,455.7)

(21.7) %

(37.0) %

Non-GAAP net loss

(1,092.6)

(864.9)

(1,425.6)

(23.4) %

26.3 %

Except for vehicle margin and gross margin, absolute changes instead of percentage changes are presented.

Recent Developments

Delivery Update

In October 2024, the Company delivered 25,049 vehicles, representing an increase of 92% from October 2023.

New Model Launches

On October 23, 2024, ZEEKR officially launched and commenced deliveries of the ZEEKR MIX, a five-seat, family-oriented vehicle. The ZEEKR MIX redefines the concept of an everyday driver, seamlessly combining ample space, outstanding safety, and agile handling. As the first model built on the Company’s SEA-M architecture, the ZEEKR MIX boasts up to 93% in-cabin space utilization, maximizing interior space through innovative packaging and a capsule-style exterior. Two front-row seats that can swivel 270 degrees and a movable central console enhance cabin versatility, enabling “9+N” cabin scenario modes and flexible seating arrangements.

CEO and CFO Comments

“Our performance remained strong and resilient this quarter, marked by record-high deliveries and successful new model launches,” said Mr. Andy An, ZEEKR’s chief executive officer. “In the third quarter, we set a new record with 55,003 vehicle deliveries, representing a 51% year-over-year increase, and reached an additional milestone in October with monthly deliveries of 25,049 units. Notably, the ZEEKR 7X’s deliveries exceeded 20,000 units within 50 days since its launch, marking a robust achievement in the highly competitive mainstream SUV market. As we expand our product lineup and strengthen each model’s position in its respective category, we are delivering ZEEKR’s ultimate driving experience to more users, further cementing ZEEKR’s industry leadership.”

Mr. Jing Yuan, ZEEKR’s chief financial officer, added, “Our disciplined cost control measures, coupled with ongoing optimization of product structure, economies of scale, and technological innovation, drove a 30.7% year-over-year increase in revenue. Vehicle sales for the quarter grew by 42.0% and 7.2% year-over-year and quarter-over-quarter, respectively. Meanwhile, vehicle margin remained on an upward trajectory, rising to 15.7% in the third quarter of 2024, highlighting our consistent progress in profitability enhancement. Looking ahead, we will continue to consolidate resources, strengthen product capabilities, and expand our industry presence to propel our sustainable growth.”

Financial Results for the Third Quarter of 2024

Revenues

Total revenues were RMB18,358.0 million (US$2,616.0 million) for the third quarter of 2024, representing an increase of 30.7% from RMB14,044.6 million for the third quarter of 2023 and a decrease of 8.4% from RMB20,040.1 million for the second quarter of 2024.

Revenues from vehicle sales were RMB14,401.3 million (US$2,052.2 million) for the third quarter of 2024, representing an increase of 42.0% from RMB10,143.7 million for the third quarter of 2023, and an increase of 7.2% from RMB13,438.2 million for the second quarter of 2024. The year-over-year increase was due to the increase in new product delivery volume, partially offset by the lower average selling price due to the different product mix and pricing strategy changes between the two quarters. The quarter-over-quarter increase was mainly attributable to the launch of the ZEEKR 7X new model in the third quarter of 2024 and the higher average selling price resulting from changes in product mix.

Revenues from sales of batteries and other components were RMB3,245.3 million (US$462.5 million) for the third quarter of 2024, representing a decrease of 1.3% from RMB3,288.8 million for the third quarter of 2023 and a decrease of 38.8% from RMB5,299.2 million for the second quarter of 2024. The revenues from sales of batteries and other components remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly driven by lower sales volume of battery packs in the domestic market.

Revenues from research and development service and other services were RMB711.4 million (US$101.4 million) for the third quarter of 2024, representing an increase of 16.2% from RMB612.1 million for the third quarter of 2023 and a decrease of 45.4% from RMB1,302.6 million for the second quarter of 2024. The year-over-year increase was mainly due to the increased sales of after-sales vehicle services. The quarter-over-quarter decrease was mainly due to the decreased sales of research and development services to related parties.

Cost of Revenues and Gross Margin

Cost of revenues was RMB15,416.2 million (US$2,196.8 million) for the third quarter of 2024, representing an increase of 31.1% from RMB11,755.2 million for the third quarter of 2023 and a decrease of 7.1% from RMB16,590.2 million for the second quarter of 2024. The year-over-year increase was mainly attributable to the increase in vehicle delivery volume and the quarter-over-quarter decrease was mainly attributable to the decrease in sales of batteries and other components.

Gross profit was RMB2,941.8 million (US$419.2 million) for the third quarter of 2024, representing an increase of 28.5% from RMB2,289.4 million for the third quarter of 2023 and a decrease of 14.7% from RMB3,449.8 million for the second quarter of 2024.

Gross margin was 16.0% for the third quarter of 2024, compared with 16.3% for the third quarter of 2023 and 17.2% for the second quarter of 2024. The gross margin remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly attributable to the decreased margins on batteries and other components.

Vehicle margin was 15.7% for the third quarter of 2024, compared with 18.1% for the third quarter of 2023 and 14.2% for the second quarter of 2024. The year-over-year decrease was primarily attributed to the lower average selling price of ZEEKR vehicles due to the different product mix and pricing strategy changes between the two quarters, partially offset by the procurement savings as the cost of auto parts and materials decreased. The quarter-over-quarter increase was mainly due to the change in product mix.

Operating Expenses

Research and development expenses were RMB1,966.2 million (US$280.2 million) for the third quarter of 2024, representing a decrease of 2.6% from RMB2,018.1 million for the third quarter of 2023 and a decrease of 25.1% from RMB2,623.5 million for the second quarter of 2024. Research and development expenses remained relatively stable compared with the third quarter of 2023. The quarter-over-quarter decrease was mainly due to a one-off, large quantity of share-based compensation expenses in the second quarter, conditioned on the Company’s initial public offering.

Selling, general and administrative expenses were RMB2,274.8 million (US$324.1 million) for the third quarter of 2024, representing an increase of 25.4% from RMB1,813.9 million for the third quarter of 2023 and a decrease of 12.7% from RMB2,604.7 million for the second quarter of 2024. The year-over-year increase was mainly due to increased expenses related to the expansion of offline channels in China and overseas as well as the marketing activities of the launch of new models. The quarter-over-quarter decrease was mainly due to a one-off, large quantity of share-based compensation expenses in the second quarter, conditioned on the Company’s initial public offering.

Loss from Operations

Loss from operations was RMB1,216.4 million (US$173.3 million) for the third quarter of 2024, representing a decrease of 19.3% from RMB1.507.8 million for the third quarter of 2023 and a decrease of 29.3% from RMB1,721.0 million for the second quarter of 2024.

Non-GAAP loss from operations, which excludes share-based compensation expenses from loss from operations, was RMB1,169.8 million (US$166.7 million) for the third quarter of 2024, representing a decrease of 20.8% from RMB1,477.6 million for the third quarter of 2023 and an increase of 50.5% from RMB777.1 million for the second quarter of 2024.

Net Loss and Net Loss Per Share

Net loss was RMB1,139.1 million (US$162.3 million) for the third quarter of 2024, representing a decrease of 21.7% from RMB1,455.7 million for the third quarter of 2023 and a decrease of 37.0% from RMB1,808.8 million for the second quarter of 2024.

Non-GAAP net loss, which excludes share-based compensation expenses from net loss, was RMB1,092.6 million (US$155.7 million) for the third quarter of 2024, representing a decrease of 23.4% from RMB1,425.6 million for the third quarter of 2023 and an increase of 26.3% from RMB864.9 million for the second quarter of 2024.

Net loss attributable to ordinary shareholders of ZEEKR was RMB1,226.3 million (US$174.7 million) for the third quarter of 2024, representing a decrease of 16.9% from RMB1,476.1 million for the third quarter of 2023 and a decrease of 44.0% from RMB2,190.2 million for the second quarter of 2024.

Non-GAAP net loss attributable to ordinary shareholders of ZEEKR, which excludes share-based compensation expenses from net loss attributable to ordinary shareholders, was RMB1,179.7 million (US$168.1 million) for the third quarter of 2024, representing a decrease of 18.4% from RMB1,445.9 million for the third quarter of 2023 and a decrease of 5.3% from RMB1,246.3 million for the second quarter of 2024.

Basic and diluted net loss per share attributed to ordinary shareholders were RMB0.48 (US$0.07) each for the third quarter of 2024, compared with RMB0.74 each for the third quarter of 2023 and RMB0.95 each for the second quarter of 2024.

Non-GAAP basic and diluted net loss per share attributed to ordinary shareholders were both RMB0.46 (US$0.07) each for the third quarter of 2024, compared with RMB0.72 each for the third quarter of 2023 and RMB0.54 each for the second quarter of 2024.

Basic and diluted net loss per American Depositary Share (“ADS[4]”) attributed to ordinary shareholders were RMB4.80 (US$0.68) each for the third quarter of 2024, compared with RMB9.51 each for the second quarter of 2024.

Non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders were RMB4.62 (US$0.66) each for the third quarter of 2024, compared with RMB5.41 each for the second quarter of 2024.

[4] Each ADS represents ten ordinary shares.

Balance Sheets

Cash and cash equivalents and restricted cash was RMB8,297.7 million (US$1,182.4 million) as of September 30, 2024.

Conference Call

The Company’s management will host an earnings conference call on Thursday, November 14, 2024, at 7:00 A.M. U.S. Eastern Time (8:00 P.M. Beijing/Hong Kong Time on the same day).

All participants who wish to join the call are requested to complete the online registration using the link provided below. After registration, each participant will receive by email a set of dial-in numbers, a passcode and a unique access PIN to join the conference call. Participants may pre-register at any time, including up to and after the call start time.

Participant Online Registration: https://dpregister.com/sreg/10194063/fdd5d5735e

A live webcast of the conference call will be available on the Company’s investor relations website at https://ir.zeekrlife.com/.

About ZEEKR

ZEEKR (NYSE: ZK) is a global premium electric mobility technology brand from Geely Holding Group. ZEEKR aims to create a fully integrated user ecosystem with innovation as a standard. ZEEKR utilizes Sustainable Experience Architecture (SEA) and develops its own battery technologies, battery management systems, electric motor technologies, and electric vehicle supply chains. ZEEKR’s value is equality, diversity, and sustainability. Its ambition is to become a true mobility solution provider.

ZEEKR operates its R&D centers and design studios in Ningbo, Hangzhou, Gothenburg, and Shanghai and boasts state-of-the-art facilities and world-class expertise. Since ZEEKR began delivering vehicles in October 2021, the brand has developed a diversified product portfolio that primarily includes the ZEEKR 001, a luxury shooting brake; the ZEEKR 001 FR, a hyper-performing electric shooting brake; the ZEEKR 009, a pure electric luxury MPV; the ZEEKR 009 Grand, a four-seat ultra-luxury flagship MPV; the ZEEKR X, a compact SUV; the ZEEKR 7X, a premium electric five-seater SUV; the ZEEKR MIX; and an upscale sedan model. ZEEKR has announced plans to sell vehicles in global markets, and has an ambitious roll-out plan over the next 5 years to satisfy the rapidly expanding global EV demand.

For more information, please visit https://ir.zeekrlife.com/.

Non-GAAP Financial Measures

The Company uses non-GAAP financial measures, such as non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to ordinary shareholders, non-GAAP basic and diluted net loss per ordinary share attributed to ordinary shareholders, non-GAAP basic and diluted net loss per ADS attributed to ordinary shareholders, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliations of GAAP and non-GAAP Results” set forth in this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars and from U.S. dollars to RMB are made at a rate of RMB7.0176 to US$1.00, the exchange rate on September 30, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or U.S. dollar amounts referred to could be converted into U.S. dollars or RMB, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “future,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any duty to update such information, except as required under applicable law.

For Investor Enquiries
ZEEKR
Investor Relations
Email: ir@zeekrlife.com

For Media Enquiries
ZEEKR
Media Relations
Email: Globalcomms@zeekrlife.com

ZEEKR INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

As of

December 31

September 30

2023

2024

RMB

US$

ASSETS

Current assets:

Cash and cash equivalents

3,260,670

5,640,993

803,835

Restricted cash

844,079

2,656,734

378,582

Notes receivable

487,851

952,108

135,674

Accounts receivable

1,104,450

2,096,355

298,728

Inventories

5,228,689

4,745,085

676,169

Amounts due from related parties

7,256,861

6,535,623

931,319

Prepayments and other current assets

2,294,508

2,711,024

386,317

Total current assets

20,477,108

25,337,922

3,610,624

Property, plant and equipment, net

2,914,274

3,265,370

465,312

Intangible assets, net

410,912

624,404

88,977

Land use rights, net

51,755

62,185

8,861

Operating lease right-of-use assets

2,443,545

2,225,175

317,085

Deferred tax assets

86,395

195,175

27,812

Long-term investments

459,794

629,383

89,686

Other non-current assets

273,717

367,752

52,404

Total non-current assets

6,640,392

7,369,444

1,050,137

TOTAL ASSETS

27,117,500

32,707,366

4,660,761

ZEEKR INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(Amounts in thousands)

As of

December 31

September 30

2023

2024

RMB

US$

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Short-term Borrowings

–

30,000

4,275

Accounts payable

4,104,717

3,589,418

511,488

Notes payable

5,504,945

12,474,151

1,777,552

Amounts due to related parties

16,355,902

15,008,230

2,138,656

Income tax payable

108,083

172,826

24,628

Accruals and other current liabilities

6,243,956

8,114,841

1,156,354

Total current liabilities

32,317,603

39,389,466

5,612,953

Long-term borrowings

–

414,630

59,084

Operating lease liabilities, non-current

1,807,159

1,577,950

224,856

Amounts due to related parties, non-current

1,100,000

–

Other non-current liabilities

563,001

540,082

76,961

Deferred tax liability

8,337

8,224

1,172

Total non-current liabilities

3,478,497

2,540,886

362,073

TOTAL LIABILITIES

35,796,100

41,930,352

5,975,026

SHAREHOLDERS’ EQUITY

Ordinary shares

2,584

3,361

479

Convertible preferred shares

362

–

Shares subscription receivable

–

(66)

(9)

Additional paid-in capital

11,213,798

15,683,094

2,234,823

Accumulated deficits

(20,865,686)

(26,296,475)

(3,747,218)

Accumulated other comprehensive income/(loss)

17,555

(26,402)

(3,762)

Total ZEEKR shareholders’ deficit

(9,631,387)

(10,636,488)

(1,515,687)

Non-controlling interest

952,787

1,413,502

201,422

TOTAL SHAREHOLDERS’ DEFICIT

(8,678,600)

(9,222,986)

(1,314,265)

TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY

27,117,500

32,707,366

4,660,761

ZEEKR INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS)/INCOME

(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)

Three Months Ended

September 30

June 30

September 30

2023

2024

RMB

US$

Revenues:

Vehicle sales

10,143,742

13,438,241

14,401,309

2,052,170

Sales of batteries and other components

3,288,766

5,299,171

3,245,331

462,456

Research and development service and
other services

612,103

1,302,639

711,362

101,368

Total revenues

14,044,611

20,040,051

18,358,002

2,615,994

Cost of revenues:

Vehicle sales

(8,308,327)

(11,533,020)

(12,146,781)

(1,730,902)

Sales of batteries and other components

(3,050,588)

(4,223,452)

(2,808,646)

(400,229)

Research and development service and
other services

(396,289)

(833,756)

(460,775)

(65,660)

Total cost of revenues

(11,755,204)

(16,590,228)

(15,416,202)

(2,196,791)

Gross profit

2,289,407

3,449,823

2,941,800

419,203

Operating expenses:

Research and development expenses

(2,018,136)

(2,623,471)

(1,966,167)

(280,177)

Selling, general and administrative
expenses

(1,813,890)

(2,604,665)

(2,274,751)

(324,149)

Other operating income, net

34,851

57,287

82,747

11,791

Total operating expenses

(3,797,175)

(5,170,849)

(4,158,171)

(592,535)

Loss from operations

(1,507,768)

(1,721,026)

(1,216,371)

(173,332)

Interest expense

(28,186)

(23,396)

(8,088)

(1,153)

Interest income

27,614

42,537

43,255

6,163

Other income/(expense), net

6,020

(7,809)

54,967

7,833

Loss before income tax expense and
share of losses in equity method
investments

(1,502,320)

(1,709,694)

(1,126,237)

(160,489)

Share of income in equity method
investments

33,021

85,852

81,500

11,614

Income tax benefits/(expense)

13,605

(184,980)

(94,409)

(13,453)

Net loss

(1,455,694)

(1,808,822)

(1,139,146)

(162,328)

Less: income attributable to non-
controlling interest

20,368

381,363

87,134

12,416

Net loss attributable to shareholders
of ZEEKR

(1,476,062)

(2,190,185)

(1,226,280)

(174,744)

ZEEKR INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
(LOSS)/INCOME (CONTINUED)

(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)

Three Months Ended

September 30

June 30

September 30

2023

2024

RMB

US$

Net loss per share attributed to
ordinary shareholders:

Basic and diluted

(0.74)

(0.95)

(0.48)

(0.07)

Weighted average shares used in
calculating net loss per share:

Basic and diluted

2,000,000,000

2,301,866,887

2,552,901,668

Net loss per ADS attributed to
ordinary shareholders:

Basic and diluted

–

(9.51)

(4.80)

(0.68)

Weighted average ADS used in
calculating net loss per ADS:

Basic and diluted

–

230,186,689

255,290,167

Net loss

(1,455,694)

(1,808,822)

(1,139,146)

(162,328)

Other comprehensive income/(loss),
net of tax of nil:

Foreign currency translation
adjustments

(35,240)

74,670

(75,858)

(10,810)

Comprehensive loss

(1,490,934)

(1,734,152)

(1,215,004)

(173,138)

Less: comprehensive income/(loss)
attributable to non-controlling interest

20,368

381,363

87,134

12,416

Comprehensive loss attributable to
shareholders of ZEEKR

(1,511,302)

(2,115,515)

(1,302,138)

(185,554)

ZEEKR INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amounts in thousands, except share/ADS and per share/ADS data and otherwise noted)

Three Months Ended

September 30

June 30

September 30

2023

2024

RMB

US$

Loss from operations

(1,507,768)

(1,721,026)

(1,216,371)

(173,332)

Share-based compensation expenses

30,142

943,921

46,595

6,640

Non-GAAP loss from operations

(1,477,626)

(777,105)

(1,169,776)

(166,692)

Net loss

(1,455,694)

(1,808,822)

(1,139,146)

(162,328)

Share-based compensation expenses

30,142

943,921

46,595

6,640

Non-GAAP net loss

(1,425,552)

(864,901)

(1,092,551)

(155,688)

Net loss attributable to ordinary
shareholders

(1,476,062)

(2,190,185)

(1,226,280)

(174,744)

Share-based compensation expenses

30,142

943,921

46,595

6,640

Non-GAAP net loss attributable to
ordinary shareholders of ZEEKR

(1,445,920)

(1,246,264)

(1,179,685)

(168,104)

Weighted average number of
ordinary shares used in calculating
Non-GAAP net loss per share

Basic and diluted

2,000,000,000

2,301,866,887

2,552,901,668

Non-GAAP net loss per ordinary
share attributed to ordinary
shareholders

Basic and diluted

(0.72)

(0.54)

(0.46)

(0.07)

Weighted average number of ADS
used in calculating Non-GAAP net
loss per ADS

Basic and diluted

–

230,186,689

255,290,167

Non-GAAP net loss per ADS
attributed to ordinary shareholders

Basic and diluted

–

(5.41)

(4.62)

(0.66)

View original content:https://www.prnewswire.com/news-releases/zeekr-reports-third-quarter-2024-unaudited-financial-results-302305084.html

SOURCE ZEEKR Intelligent Technology Holding Limited

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