HPE Securities Analyst Meeting 2022: Leading the world’s digital transformation and delivering sustainable growth

OCTOBER 19, 2022 • BLOG POST • ANTONIO NERI, PRESIDENT AND CHIEF EXECUTIVE OFFICER

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IN THIS ARTICLE

  • HPE hosted members of the financial community at our Houston headquarters for our annual HPE Securities Analyst Meeting
  • In just three years, HPE has evolved to a consumption-based model with a richer mix of software and services, delivering strong results for our shareholders and our customers
  • With the competitive advantages that our leadership position brings, HPE is poised to deliver on the commitments we have made and continue to maximize shareholder value

HPE hosts its Securities Analyst Meeting 2022 at new headquarters in Houston, TX 

Today, we gather with the financial community – for the first time in-person since 2019 – for our annual HPE Securities Analyst Meeting. Every year, this event provides a fantastic opportunity for us to update investors and analysts with details of our edge-to-cloud strategy, how HPE is driving customer transformation and how we are capitalizing on accelerating market trends. This year, I am particularly looking forward to highlighting the success of our differentiated edge-to-cloud strategy and the wins it is creating for customers and in long-term value for shareholders.

Several years ago, we predicted the world would become hybrid. In 2019, as new megatrends around edge, cloud and data began to reshape the world’s expectations for enterprise technology, we committed to make all our solutions available as a service through a differentiated edge-to-cloud experience.

In just three years, we’ve successfully deployed that strategy: We evolved to a consumption-based model with a richer mix of software and services, delivering very strong results for our shareholders and our customers. A couple recent highlights we are very proud of:

 

  • Our total HPE orders, including as-a service bookings, are the highest ever this year, demonstrating enduring demand for our differentiated edge-to-cloud portfolio.

  • We are on track to deliver the largest annualized revenue run-rate ever, and, at the midpoint of our non-GAAP earnings-per-share guidance, the highest annual EPS since we became an independent company in 2015, based on continuing operations. This is particularly impressive given severe ongoing supply constraints and a very challenging geopolitical, foreign exchange and inflationary environment.

  • Our profitability through the third quarter – as measured by gross and operating margin – was among the highest since 2019.

 

The centerpiece of our strategy is HPE GreenLake, our edge-to-cloud platform that powers customers’ data-first modernization with one unified, hybrid-cloud services experience. Our unique platform is allowing us to win with customers. Among our top 100 HPE customers, already nearly 80 percent have adopted the HPE GreenLake platform – that represents $7.7 billion in total contract value, showing that scale matters.

Today, HPE GreenLake enables more than 120,000 users, powers more than 2 million connected devices, managing more than one exabyte of data. And that traction is driving momentum across the portfolio. Not only does HPE GreenLake enhance the value and relevance of our portfolio, it is also the foundation for our financial success.  We are optimistic this will continue. Looking at the markets that underpin our strategy – edge, cloud, and data – we see our total addressable market opportunity growing 1.8 times from about $150 billion to more than $250 billion by 2025 as we continue to expand our business into new areas of the IT market.

In continuing to execute on our strategy, we are simultaneously increasing recurring revenues and creating higher gross margins – all of which will drive greater cash flow. We have done all this while maintaining a relentless focus on delivering customer-centric technology breakthroughs and creating advantages for our customers. Combined with the momentum we are seeing across the business and megatrends as a tailwind, we are well-positioned to reap the competitive advantages that leadership brings to deliver on the commitments we have made and continue to maximize shareholder value.

As organizations around the world continue to adapt post-pandemic and accelerate their own business transformations, we are focused on being their technology provider of choice. We have predicted customer expectations and leaned into exceeding them, in ways that only we can. We have a strategy that others strive to emulate, but the experiences we offer are distinctive. And, we have created a performance culture that drives results.

I have often said that HPE does not wait for the next big thing to happen. We accelerate what comes next for our customers, our company, and our shareholders.  I look forward to delivering in the year ahead.

This blog contains forward-looking statements subject to risks; results could differ materially. For more cautionary language regarding forward-looking statements, refer to our slides presented at the 2022 Securities Analyst Meeting, available at 
investors.hpe.com.

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