HPE exceeds guidance in Q3

HPE has reported net revenue of $7bn in its Q3 financial results, exceeding its outlook for the quarter.

Annualized revenue run-rate was $858m, up 22 percent (28 percent adjusted for currency) from the prior-year period, while the company’s total as-a-Service orders were up 39 percent from the prior-year period and up 86 percent year-to-date.

Gross margins remained resilient despite ongoing supply chain constraints, with the company reporting GAAP of 34.5 percent, flat from the prior-year period and up 210 basis points sequentially, and non-GAAP of 34.7 percent, flat from the prior-year period and up 50 basis points.

Antonio Neri, president and CEO of HPE, said: “Our continued innovation and focus on execution resulted in revenue and profit growth, which are particularly noteworthy in such a dynamic market. Our growth in recurring revenue this fiscal year is evidence of customers’ strong response to our HPE GreenLake platform. Customers continue to prioritize investments in IT and are finding HPE’s industry-leading edge-to-cloud portfolio to be particularly relevant in today’s complex macroeconomic environment, where technology innovation is critical to accelerate business transformation and deliver important business outcomes.”

Tarek Robbiati, EVP and CFO of HPE, said: “We executed well in Q3, delivering revenue above our guidance while growing backlog sequentially to another record level. We are also pleased with the expansion of our gross margins despite the inflationary headwinds and challenged supply environment. We are driving operating leverage expansion through strong pricing discipline and shifting our mix towards higher-margin, software-rich offerings through the HPE GreenLake platform.”