Hewlett Packard Enterprise (HPE) hosted its annual Securities Analyst Meeting (“SAM”) at HPE’s headquarters in Houston, where Antonio Neri, president and chief executive officer, and Tarek Robbiati, executive vice president and chief financial officer, provided the financial outlook for fiscal year 2023 as well as details on the company’s strategy, customer trends, accelerating market opportunity, and long-term growth initiatives.
Neri emphasized in his SAM remarks how HPE’s edge-to-cloud strategy directly addresses IT industry megatrends that have emerged over the last several years. He noted that HPE has delivered strong results for shareholders and is in solid position to add even greater value.
“We have taken decisive and important actions to transform HPE. Our evolution to a platform-based model, fueled by a software- and services-rich portfolio, is already delivering very strong results that translate to value for our shareholders,” Neri said. “Our distinct innovation and strong execution continue to drive customer demand across our portfolio, which we expect to result in higher recurring revenues, expanded gross and operating margins, and increased free cash flow in future years.”
Neri illustrated additional market drivers that can accelerate greater success of HPE’s strategy, including the opportunity embedded in customers’ growing preference for hybrid multi-cloud models. “Hybrid multi-cloud adoption for the most demanding workloads is accelerating across industry verticals,” Neri said during the SAM webcast. “And while the world is already hybrid and getting more so, we know the cloud experience is not yet everywhere. Customers are looking for a way to unify their multi-generation IT strategy with a consistent cloud experience across all their applications and data.”
Neri pointed to HPE’s leadership in hybrid multi-cloud, as the company that offers the broadest set of workloads of any hybrid cloud vendor in the market. “From the time we first predicted the future would be hybrid, we made sure we were first to bring to market differentiated services and solutions for our customers,” Neri said.
Neri also provided updates on the maturity of the unique HPE GreenLake platform. HPE has distinguished the HPE GreenLake platform by providing a unified, automated, and secure cloud experience that is integrated across the edge, data centers, co-locations, and public clouds.
With more than 120,000 users across two million connected devices and $7.7 billion in total contract value, HPE GreenLake has driven traction across HPE’s overall portfolio. Total HPE orders, including as-a service bookings, are at their highest ever in the fiscal year 2022.
“We are relentlessly focused on delivering customer-centric technology breakthroughs,” said Neri. “With the competitive advantages that our leadership position brings, HPE is poised to deliver on the commitments we have made.”
Financial Update
Tarek Robbiati provided more insight into how HPE’s vision is expected to translate into an attractive long-term financial profile.
“We have the right edge-to-cloud strategy, aligned with dominant market trends and supported by a sound financial architecture to win customers, drive sustainable, profitable growth, and create shareholder value,” Robbiati said. “Our transition to as a service has helped us create resilient recurring revenue, higher gross margin, and sustainable free cash flow, enabling consistently strong top and bottom-line results, even in light of a complex macro environment.”
Robbiati also provided a financial update including the company’s outlook for fiscal year 2023, highlighting how HPE expects to capitalize on enduring market demand and detailing how various macroeconomic aspects factor into the outlook.
