HPE: Fiscal 3Q22 Financial Results

Hewlett Packard Enterprise Development LP announced financial results for the third quarter, ended July 31, 2022.

Global revenue reached $7.0 billion, up 1%, in its 5 businesses: intelligent edge, HPC and AI, compute, financial services and storage.

Storage revenue was $1.1 billion, down 3% from the prior-year period with 12.6% operating profit margin, compared to 16.8% from the prior-year period reflecting higher supply chain costs and unfavorable mix shift. It’s the lowest figure since 2FQ20.

Representing 16% of total sales, storage revenue was up 5% Q/Q at $1.152 billion for 3FQ22, and down 2% from 2FQ22 in actual dollars and up 1% when adjusted for currency, with 14.7% operating profit margin, compared to 15.1% from 2FQ22, and up 210 basis points sequentially, with favorable mix shift.

The company records double-digit revenue growth Y/Y in owned IP products, tracking the fastest ARR growth among segments.

Highlights:
. Backlog increased sequentially to anothe record level
. Double-digit growth Y/Y in Nimble and hyperconverged product revenue
. ARR growth of 44% Y/Y, subcription orders up 64% Q/Q

As-a-service offerings within storage like Block are also leading order and ARR growth among business segments. With the favorable mix shift, operating margins improved to 14.7%, up 210 basis points sequentially. With respect to Pointnext operational services, combined with storage services, orders grew again and are up year-to-date mid-single digits in constant currency, similar to levels for total FY21 despite the exit of our Russia business.

For FY22, there are few chances that the company will reach $4.8 billion in storage revenue like in FY21.

Revenue for HPE storage since FY17
(in $ million)

* HPE changes its accounting results in 1FQ20.

Earnings call transcript