Business goals

Hewlett Packard Enterprise CEO on Future Business Goals

Antonio Neri, CEO of Hewlett Packard Enterprise, provided the financial outlook for fiscal year 2022 as well as details on company strategy, customer trends and growth opportunities.

HPE CEO Highlights Three Distinct Trends

# 1 the explosion of data at the edge, driven by the proliferation of devices and objects, requiring secure connectivity

# 2 the mandate of a cloud everywhere experience that enables customers to manage data and workloads in a distributed enterprise

# 3 growing need to extract value from data to generate insights and create new business models

“Each of these market trends, along with growing customer demand for the use of IT as a service, represents an important area of ​​growth for HPE,” said Neri. “We are particularly focused on the segments that will generate the most profitable growth, and we are actively investing in organic and inorganic innovation to ensure we capitalize on these high margin opportunities. “

Neri reviewed HPE’s leadership, innovation and market performance in each of the megatrend areas, with a particular focus on business dynamics with the HPE GreenLake Edge-to Platform. -Cloud.

HPE GreenLake, with more than 1,100 enterprise customers, contributes significantly to the company’s 33% year-over-year growth in annualized recurring revenue (ARR) in the third quarter of 2021 and to the growth of 46% of orders as a service.

Tarek Robbiati, Executive Vice President and Chief Financial Officer, provided a financial update including a outlook for fiscal 22.

“We have the right Edge-to-Cloud strategy aligned with prevailing market trends with the right financial architecture,” said Robbiati. “Our long-term financial model offers free cash flow growth of 15-20% which enables balanced investments for growth with substantial returns on capital to maximize shareholder value. “

Outlook FY22

HPE expects FY22 financial results to continue the momentum of FY21. HPE expects revenue growth of 3-4% and non-GAAP operating profit growth of approximately 10-15% year-over-year.

HPE provided its financial model for FY22-FY24. HPE expects a compound annual revenue growth rate of 2-4%. The previous three-year view was 1 to 3 percent. HPE expects the growth engines to be Edge, High Performance Computing and Artificial Intelligence, and Business as a Service. HPE expects growth in ARR as-a-Service to accelerate to 35-45% to over $ 2.3 billion in FY24 revenue.

The company expects its progress on its strategic imperatives to translate into a more solid financial architecture, including sustainable, profitable growth and increased recurring revenue at higher gross margins over time.