HPE: Fiscal 1Q24 Financial Results

Hewlett Packard Enterprise announced financial results for the first quarter ended January 31, 2024.

Global revenue was $6.8 billion, down 14% from the prior-year period in actual dollars and in constant currency

The company does not publish anymore its storage results, disappearing into hybrid cloud category. IBM and Marvell did the same in the past.

Hybrid cloud (including storage)

Last quarter, storage revenue was $1.111 billion, down 13% from the prior year period in actual dollars and 12% in constant currency.

For 1FQ24, lower revenues and a high mix of 3rd-party product impacted margins in the traditional storage business, down Y/Y on difficult compares, given backlog consumption in 1FQ23.

Demand for traditional server and storage products has stabilized. Demand for HPE GreenLake offerings was evident in a healthy ARR growth and demand for firm’s AI systems remains robust.

For hybrid cloud, the company expects sequential increases through the year as its traditional storage business improves and GreenLake momentum continues. It expects meaningful progress through the year.

Revenue for HPE storage since FY17
(in $ million)

Effective at the beginning of 1FQ23, the company implemented certain organizational changes to align its segment financial reporting more closely with its current business structure. This resulted in the transfer of certain storage networking products, previously reported within the storage reportable segment, to the compute reportable segment. The firm reflected these changes to its segment information retrospectively to the earliest period presented, which primarily resulted in the transfer of net revenue and operating profit for each of the businesses as described above. These changes had no impact on the previously reported consolidated results.