Financial Data and Key Metrics Changes - HPE reported total revenue of $7.8 billion for Q1 2023, an 18% increase year-over-year, significantly exceeding the high end of the outlook [8][24] - Non-GAAP operating margin reached a record 11.8%, up 80 basis points year-over-year [8][38] - Non-GAAP diluted net earnings per share increased 19% year-over-year to $0.63, surpassing guidance [8][27] - Free cash flow was negative $1.3 billion, reflecting typical seasonal cash usage [8][27] Business Line Data and Key Metrics Changes - Intelligent Edge segment revenue increased 31% year-over-year, surpassing $1 billion for the first time [16][30] - HPC and AI segment revenue grew 37% year-over-year, driven by the Frontier deal [16][31] - Storage segment revenue grew 10% year-over-year, with HPE Alletra showing triple-digit growth [33] - Compute segment revenue increased 19% year-over-year to $3.5 billion, benefiting from improved supply availability [34] Market Data and Key Metrics Changes - The order book at the start of Q1 was larger than the previous year and more than twice the size of normalized historical levels [9][25] - Demand for solutions remains uneven across the portfolio, with strong performance in Intelligent Edge and HPC, while Compute shows slower deal velocity [10][23] Company Strategy and Development Direction - HPE is focused on leveraging its hybrid cloud platform, HPE GreenLake, to address megatrends in edge, cloud, and AI [7][14] - The company announced acquisitions to enhance its cloud security and private networking capabilities, aiming to create a comprehensive cloud portfolio [11][12] - HPE aims to maintain momentum through investments in software and services while retaining cost discipline [24][41] Management's Comments on Operating Environment and Future Outlook - Management noted that supply chain challenges are easing, with expectations for continued improvement throughout fiscal year 2023 [9][41] - The company raised its revenue and EPS guidance for the full fiscal year, anticipating 5% to 7% revenue growth [44] - Management expressed confidence in the long-term strategy and execution, despite macroeconomic uncertainties [20][41] Other Important Information - HPE's as-a-Service total contract value has more than doubled to nearly $10 billion over the past two years [14] - The company plans to return approximately 60% of free cash flow to shareholders through dividends and stock repurchases [45] Q&A Session Summary Question: How is HPE participating in AI investments? - Management highlighted the unique opportunity in deploying large language models requiring supercomputing capacity, leveraging their Cray systems and unique IP [48][49] Question: What segments are showing weakness? - Management indicated unevenness in the Compute business, with longer sales cycles, while Intelligent Edge and HPC remain strong [52][53] Question: Can you explain the full-year guidance increase? - The revenue guidance was raised due to improved macro conditions and easing supply chain issues, despite some pricing pressures in the Compute segment [58][59] Question: Is the strong performance in Intelligent Edge sustainable? - Management confirmed that the growth is part of a continuous momentum, supported by a robust order book and unique value propositions [61][62] Question: Why is HPE's outlook more optimistic than peers? - Management attributed optimism to a diversified portfolio and a unique integrated solution through HPE GreenLake, which enhances customer experience [67][68]

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Table of Content UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2022 Or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37483 HEWLETT PACKARD ENTERPRISE COMPANY (Exact name of registrant as specified in its charter) Delaware 47-3298624 (S ...

Hewlett Packard Enterprise (NYSE:HPE) Q4 2022 Results Conference Call November 29, 2022 5:00 PM ET Company Participants Jeff Kvaal - VP, IR Antonio Neri - President and CEO Tarek Robbiati - EVP and CFO Conference Call Participants Wamsi Mohan - Bank of America Kyle McNealy - Jefferies Shannon Cross - Credit Suisse Simon Leopold - Raymond James Samik Chatterjee - JP Morgan Toni Sacconaghi - Bernstein Aaron Rakers - Wells Fargo Amit Daryanani - Evercore Operator Good day, and welcome to the Fourth Quarter Fis ...

Financial Data and Key Metrics Changes - Total HPE revenue increased 4% year-over-year to $7 billion, exceeding sequential outlook [8][21] - Non-GAAP gross margin reached 34.7%, up 0.5 points sequentially, matching the highest since the as-a-service business began [9][22] - Non-GAAP operating margin improved to 10.5%, up 120 basis points sequentially and 70 basis points year-over-year [10][23] - Non-GAAP diluted net earnings per share was $0.48, a 9% sequential rise and 2% year-over-year [10][23] - Cash flow from operations was $1.3 billion, with free cash flow of $587 million [10][24] Business Line Data and Key Metrics Changes - HPE GreenLake saw a 39% year-over-year increase in total as-a-service orders, with year-to-date orders growth at 86% [9][25] - Intelligent Edge revenue grew 12% year-over-year, with orders increasing for the seventh consecutive quarter [14][26] - HPC and AI revenue grew 15% year-over-year, with a backlog of awarded contracts just under $3 billion [26][27] - Compute revenue was down 1% due to supply constraints, but backlog grew sequentially to record levels [27] - Storage revenue was up 1%, with operating margins improving to 14.7% [28] Market Data and Key Metrics Changes - HPE's backlog reached record levels, up 96% year-over-year, with no meaningful cancellations [20][21] - The company expects currency to be a 2.5-point headwind to revenue for the full year [21] - Demand remains strong across various segments, with significant order growth in Edge and HPC [26][56] Company Strategy and Development Direction - HPE is focused on expanding its as-a-service offerings through the GreenLake platform, which is central to its strategy [9][61] - The company aims to achieve a three-year ARR CAGR target of 35% to 45% from fiscal year 2021 to fiscal year 2024 [25][61] - HPE is enhancing its partner ecosystem to adapt to evolving customer requirements [12] Management's Comments on Operating Environment and Future Outlook - Management noted enduring customer demand and a strong sales pipeline despite supply chain challenges [8][41] - The company anticipates supply chain issues to persist into next year, but expects some easing signs [11][41] - Management expressed confidence in achieving fiscal year 2022 revenue growth of 3% to 4% adjusted for currency [21][35] Other Important Information - HPE is committed to achieving net zero carbon emissions by 2040, accelerating its target by 10 years [17] - The company is strategically building inventory to navigate the supply chain environment [34] Q&A Session Summary Question: Discussion on backlog and guidance - Management highlighted record backlog levels and strong demand momentum, indicating confidence in revenue guidance despite currency headwinds [39][40][44] Question: OpEx and EPS commentary - Management acknowledged FX as a headwind to revenue but a potential tailwind to OpEx, maintaining discipline in cost management [47][49] Question: Order linearity and backlog quantification - Management confirmed backlog is close to double last year's levels, with sustained demand across segments [54][56] Question: As-a-service and ARR growth sustainability - Management emphasized the importance of the GreenLake platform in driving as-a-service growth, with confidence in achieving long-term targets [59][61] Question: October quarter guidance and margin expansion - Management expects revenue growth of at least 5% in Q4, with margin expansion driven by a favorable mix and disciplined cost management [66][68] Question: Operating margin sustainability in the compute segment - Management indicated that while operating margins may return to historical ranges, pricing discipline and backlog management will support profitability [70][72]

Hewlett Packard Enterprise Company (NYSE:HPE) Q2 2022 Earnings Conference Call June 1, 2022 5:00 PM ET Company Participants Andrew Simanek - Vice President, Investor Relations Antonio Neri - President & Chief Executive Officer Tarek Robbiati - Executive Vice President & Chief Financial Officer Conference Call Participants Aaron Rakers - Wells Fargo Simon Leopold - Raymond James Samik Chatterjee - JPMorgan Wamsi Mohan - Bank of America Rod Hall - Goldman Sachs Irvin Liu - Evercore ISI Kyle McNealy - Jefferie ...