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HPE says its "everything-as-a-service" model is paying off

A circle of laptops connected to a cloud symbol.
(Image credit: Shutterstock/Bluebay)

Hewlett Packard Enterprise (HPE) has presented its Q3 2021 financial results, saying it delivered an “impressive” performance in which the “everything-as-a-service” approach seems to be paying off.

“We delivered a very impressive Q3 performance, marked by strong order growth, expanded margins and record free cash flow,” said Antonio Neri, president and CEO of Hewlett Packard Enterprise. “I am pleased to see how our differentiated portfolio is resonating with the market, and our edge-to-cloud strategy is driving improved momentum across our businesses.”

The company increased its net revenue by 3% relative to Q3, and 1% year-on-year, up to $6.9 billion. Its annualized revenue run-rate (ARR) was $705 million, up 33% year-on-year, while its total as-a-service orders were up 46% in the same period. 

GAAP gross margins were also up 34.5%, up 420 basis points year-on-year, while non-GAPP gross margins rose 34.7%, also up 420 basis points from the prior-year period. GAAP diluted net earnings per share (EPS) was $0.29, compared to $0.01 in the prior-year period, while non-GAAP diluted net EPS was $0.47, compared to $0.36 in the same time period. 

Major NSA contract

Just a day before publishing the results, HPE announced a $2 billion contract with the US National Security Agency, lasting a decade. It will provide the agency with high-performance computing as a service, using its GreenLake platform. 

According to Silicon Angle, Neri said the deal was “more than just selling infrastructure”.

“It’s a true as-a-service model and management where we are operating the whole environment,” he said. “That is very different from what it was in the past.”

And while the company keeps its positive outlook, fueled by stabilizing buying patterns after what was a highly volatile year, supply chain shortages continue to be a nuisance and probably won’t go away for as long as a year.

Via: Silicon Angle

Sead Fadilpašić is a journalist - crypto, blockchain and new tech in general. He is also a hubSpot certified content creator and Writer.