“We delivered a strong Q1 performance,” said Antonio Neri, President and CEO of Hewlett Packard Enterprise.
“Our revenue exceeded our outlook and we significantly expanded our gross and operating margins to drive strong profitability across most of our businesses. Our non-GAAP EPS exceeded the high-end of our guidance and free cash flow was a record Q1 performance. These results give us confidence to raise our FY21 outlook.”
“The global pandemic has brought a renewed focus on digital transformation as businesses are rethinking everything from remote work and collaboration to business continuity and data insight,“ he continued.
“As the world heads to recovery, our customers are looking for the agility and simplicity of the cloud native world with the flexibility and control of a hybrid business model – and this is where we have a unique and differentiated value proposition.”
“Our dedicated, passionate and resilient team members are laser-focused on delivering for our customers and executing our strategy to strengthen our core businesses, double down in areas of growth, and accelerate our pivot to as-a-service to drive long-term sustainable, profitable growth” said Neri.
First Quarter Fiscal Year 2021 Results
Net revenue of $6.8 billion, down 2% from the prior-year period or 3% when adjusted for currency, marked by stronger than normal sequential seasonality.
Annualized revenue run-rate (ARR) of $649 million, up 27% from the prior-year period. Based on strong customer demand and recent wins, we are reiterating our 2019 Securities Analyst Meeting ARR guidance of 30-40% Compounded Annual Growth Rate from fiscal year 2019 to fiscal year 2022.
• Revenue: $6.8 billion exceeded Q1 outlook with stronger than normal sequential seasonality
• Intelligent Edge revenue: $806 million, up 11% from the prior-year period when adjusted for currency
• Annualized revenue run-rate (ARR): $649 million, up 27% from the prior-year period
• Core businesses delivered strong profitability and cash flow
• Diluted net earnings per share (“EPS”):
• GAAP of $0.17, above the previously provided outlook of $0.02 to $0.06 per share
• Non-GAAP of $0.52, above the previously provided outlook of $0.40 to $0.44 per share
• Cash flow from operations of approximately $1.0 billion, up $1.0 billion from the prior-year period
• Generated record free cash flow of $563 million, up $748 million from the prior-year period Dividend: declared a regular cash dividend of $0.12 per share, payable on April 7, 2021
