HPE Advances Long-Term Strategy, Delivering Strong Profitability And Scaling Recurring Revenue Against Market Headwinds
HPE News, Thursday, February 29th, 2024
Well-positioned to capture explosion of AI demand and continued opportunities in hybrid cloud and edge
HPE reported first quarter financial performance for fiscal year 2024. It was a mixed story for us, with some results to be proud of and some disappointments.
- Key takeaways from the quarter's performance:
- We achieved strong profitability, while advancing our long-term strategy.
- We continued to scale our recurring revenue, achieving the second-highest year-over-year growth rate since we started tracking ARR1 in late 2019 - which is a promising indicator for our ongoing portfolio shift to higher-margin revenues.
- Overall revenue performance was lower than expected due in large part to networking demand softening industry-wide, and the timing of several large GPU customer acceptances. We also did not have the GPU supply we would have liked.
In quarters like these, I am reminded of the significant progress we have made in pivoting our portfolio to position us to capture significant opportunities across edge, hybrid cloud, and AI.