HPE sees Greenlake, edge strength in Q3
Hewlett Packard enterprise saw strong demand in the third quarter for its intelligent edge products and HPE Greenlake.
The company said HPE Greenlake ARR was up 48% in the third quarter compared to a year ago and intelligent edge, also known as HPE Aruba, saw revenue surge 50%.
HPE reported third quarter revenue of $7 billion, up 1% from a year ago, with earnings of 35 cents a share. Non-GAAP earnings for the quarter were 49 cents a share. Wall Street was looking for earnings of 47 cents a share on revenue of $7 billion
Antonio Neri, CEO of HPE, said "demand improved sequentially across all key business segments, with particular strength in our HPC & AI segment." At HPE Discover, the company outlined a bevy of GreenLake additions. The timing is notable since Constellation Research analyst Dion Hinchcliffe recently published a report outlining how CXOs are moving to private cloud models for cost savings. In a nutshell, public cloud providers haven't been passing on savings and encouraging enterprises to move workloads such as AI on premises.
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HPE has been able to offset slower compute demand with edge computing offerings.
By the numbers for the third quarter:
- HPE's intelligent edge revenue was $1.4 billion, up 50% from a year ago.
- The company's third quarter HPC and AI revenue was up 1% from a year ago to $836 million.
- Compute revenue was $2.6 billion, down 13% from a year ago, and storage revenue was $1.1 billion, down 5% from a year ago.
As for the outlook, HPE projected fourth quarter revenue between $7.2 billion and $7.5 billion. HPE said non-GAAP fourth quarter earnings will be 48 cents a share to 52 cents a share. For fiscal 2023, HPE is projecting revenue growth to be between 4% and 6% with non-GAAP earnings between $2.11 a share and $2.15 a share.
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