HPE, also known as Hewlett Packard Enterprise, has reported its first-quarter financial performance for the year 2024 ending in January. Total revenue decreased by 14% compared to the same quarter in the previous year, amounting to $6.755 billion. The Annual Recurring Revenue (ARR) increased by 42% to $1.4 billion, and the net profit according to GAAP stood at $387 million.
The revenue from the server business, which is the core business of HPE, decreased by 23% to $3.4 billion. This business segment has been restructured to report separately as Compute and HPC & AI. On the other hand, the revenue from the Intelligent Edge business increased by 3% to $1.2 billion, while Hybrid Cloud saw a 10% decrease to $1.2 billion, and the Financial Services group recorded revenue of $873 million.
CEO Antonio Neri provided additional insights, stating that the company is seeing positive signals in the demand for servers for AI applications, with approximately 25% of current orders related to AI and a growing trend in this area.
Source: Barron’s and HPE (pdf)
TLDR: HPE reported a decrease in revenue for the first quarter of 2024, with a significant increase in ARR and insights into the demand for AI servers.
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