5 HPE Earnings Takeaways: Partners Drive Record GreenLake Growth
From a record 55 percent year-over-year channel growth in HPE GreenLake to 10 percent growth in intelligent edge, these are the five biggest channel takeaways from HPE’s third fiscal quarter.
A ‘Perfect Storm” Channel Growth Quarter
Hewlett Packard Enterprise Worldwide Channel Chief George Hope told partners that the channel business was up three percent overall to $3.7 billion in HPE’s third fiscal quarter ended July 31 with a record-breaking 55 percent growth in the GreenLake cloud services platform.
“We’re growing in every dimension and we are making progress both year over year and sequentially,” said Hope in a quarterly earnings channel review for partners that he hosted alongside HPE CEO Antonio Neri. “We have kind of had an indirect perfect storm if you will.”
HPE’s intelligent edge business – which includes HPE’s Aruba wireless networking business – was up 10 percent year over year in the channel to $833 million. The channel accounts for 91 percent of the Aruba business.
HPE’s storage business through the channel, meanwhile, was up seven percent year over year, while the compute business was up two percent year over year for partners, said Hope.
With overall product mix taken into account, HPE’s channel business accounts for 69 percent of sales.
With supply chain issues remaining unchanged, mew orders during the quarter exceeded expectations, pushing HPE’s sales backlog to yet another record level. That backlog is up 96 percent year over year.
“What I am really pleased about is what I said during the (earnings) call is the fact that we continue to see enduring demand,” Neri told partners. “That is particularly true in many areas of the portfolio because of our unique differentiated value proposition whether it is the edge or GreenLake.”
Overall, HPE reported non-GAAP earnings per share of 48 cents on sales of $7 billion- up four percent when adjusted for currency impact. That compares with non-GAAP earnings of 47 cents per share on sales of $6.89 billion in the year-ago quarter.
HPE expanded gross margins by half a point sequentially during the quarter, with non-GAAP gross margin of 34.7 percent, up 50 basis points sequentially, matching the highest gross margin the company has delivered since it began it as a service sales offensive in 2019.
Here are the five biggest channel takeaways from HPE’s third fiscal quarter ended July 31.