Hewlett Packard Enterprise (HPE) has announced its financial results for the fourth quarter ending October 31, 2023, and FY23.
The company saw Q4 revenues slip to $7.4bn, down seven percent from the prior-year period. However, for FY23, revenues were up two percent and 5.5 percent in constant currency from the year before, reaching $29.1bn.
Jeremy Cox, senior vice president and interim CFO of Hewlett Packard Enterprise, said: “The progress we’re making aligned to our edge-to-cloud strategy is evident in our top and bottom-line results.
“Given our disciplined execution and focus, we closed Q4 and fiscal year 2023 strong within an uneven IT market. We see promising indicators of continued demand in the areas of the market we are prioritizing, especially in AI.”
The company’s partnerships and new innovations in edge, high-performance computing (HPC) and AI ultimately drove its strong performance for the year. Intelligent Edge revenue reached $1.4bn, an increase of 41 percent from the prior-year period, with 29.5 percent operating profit margin, compared to 13.3 percent previously. HPC and AI revenue was $1.2bn, an increase of 37 percent with a 4.7 percent operating profit margin.
Compute revenue and storage revenue, however, let the company down, with the former falling 31 percent to $2.6bn, and the latter falling 13 percent to $1.1bn.
Financial Services revenue stood at $876m, an increase of two percent from the prior-year period and an 8.9 percent operating profit margin.
Antonio Neri, president and CEO of Hewlett Packard Enterprise, said: “In fiscal year 2023, HPE clearly demonstrated that our strategic investments and extraordinary innovation across the growth areas of edge, hybrid cloud and AI are resonating with customers.
“We delivered record performance against key financial metrics this year. Our steady execution resulted in higher revenue, further margin expansion, larger operating profit and record-breaking non-GAAP diluted net earnings per share and free cash flow. As we continue to capitalize on growing market opportunities – particularly as customer interest in AI continues to explode – I am confident in our ability to deliver substantial returns to our shareholders, hence why we are raising the dividend in FY 2024.”
In terms of outlook for its Q1 FY24, the company estimates revenues of $6.9bn-$7.3bn with a GAAP diluted net EPS of $0.24-$0.32 and Non-GAAP diluted net EPS of $0.42-$0.50. For FY24, the company expects a free cash flow of $1.9bn-$2.1bn with revenue growth around two-four percent.
HPE’s successful year has been driven by its strategic partnerships. One of the latest saw the company’s GreenLake solution being chosen by Swisslog to accelerate the delivery of IT-managed services for intralogistics automation and to advance customer experience.
These innovations and partnerships follow HPE’s shake-up in leadership and company structure which was announced in September and will take effect at the start of HPE’s 2024 fiscal year.