HPE Q3 2024 – Revenue up 10%, ARR surges 35%

By Bobby Samwell • Thursday, September 05 06:03 • Permanent Link

Hewlett Packard Enterprise (HPE) has released its third quarter financial results for fiscal 2024, showcasing notable growth and profitability. Here are the key figures:

Revenue for the third quarter stood at $7.7 billion, marking a substantial 10% increase from the prior-year period in both actual dollars and constant currency.
The Annualized Revenue Run-Rate (ARR) reached $1.7 billion, surging by 35% from the prior-year period in actual dollars and 39% in constant currency.
Gross margins saw a decline, with GAAP at 31.6% (down 420 basis points from the prior-year period) and non-GAAP at 31.8% (down 410 basis points from the prior-year period).
Diluted net earnings per share (EPS) exhibited significant growth, with GAAP at $0.38 (up 9% from the prior-year period and up 58% sequentially) and non-GAAP at $0.50 (up 2% from the prior-year period and up 19% sequentially).
Cash flow from operations totaled $1,154 million, reflecting a decrease of $371 million from the prior-year period, while free cash flow (FCF) amounted to $669 million, also decreasing by $286 million from the prior-year period.

Segment results for the third quarter include: Server revenue soared to $4.3 billion, up 35% from the prior-year period. Intelligent Edge revenue declined to $1.1 billion, marking a 23% decrease from the prior-year period. Hybrid Cloud revenue dropped to $1.3 billion, down 7% from the prior-year period. Financial Services revenue reached $879 million, indicating a 1% increase from the prior-year period.

Looking ahead to the fourth quarter of fiscal 2024, HPE estimates revenue to be in the range of $8.1 billion to $8.4 billion, with GAAP diluted net EPS in the range of $0.76 to $0.81 and non-GAAP diluted net EPS in the range of $0.52 to $0.57.

For the full fiscal year 2024, HPE anticipates revenue growth of 1% to 3% in constant currency and GAAP diluted net EPS in the range of $1.68 to $1.73, with non-GAAP diluted net EPS in the range of $1.92 to $1.97. The company also estimates free cash flow of $1.9 billion.

HPE received approximately $2.1 billion from the partial sale of its equity position in H3C Technologies Co., Limited, with the financial impact of this transaction to be reflected in the fourth quarter and full year earnings announcement later this year. Today the company's shares have moved -1.5% to a price of $18.77. For the full picture, make sure to review Hewlett Packard Enterprise's 8-K report.

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