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Apr 30, 2020

Hewlett Packard Enterprise Q2 2020 Earnings Report

HPE's financial performance was impacted by global economic lockdowns, but showed strategic momentum in as-a-service offerings and intelligent edge business.

Key Takeaways

Hewlett Packard Enterprise (HPE) reported Q2 2020 financial results, with a revenue of $6.0 billion. The company's performance was impacted by global economic lockdowns, but it gained traction in its as-a-service offering, HPE GreenLake, and saw growth in its Intelligent Edge business. The HPE Board of Directors approved a Cost Optimization and Prioritization Plan to prioritize investments and realign resources to areas of growth.

Revenue was $6.0 billion with momentum in strategy to pivot to as a service.

Annualized revenue run-rate (ARR) was $520 million, up 17% from the prior-year period.

GAAP gross profit margin was 31.9%, down 30 basis points from the prior-year period.

Non-GAAP diluted net EPS was $0.22, compared to $0.42 from the prior-year period.

Total Revenue
$6.01B
Previous year: $7.15B
-16.0%
EPS
$0.22
Previous year: $0.42
-47.6%
ARR
$520M
Gross Margin
31.9%
Previous year: 32.2%
-0.9%
Non-GAAP Gross Margin
32%
Previous year: 32.2%
-0.6%
Gross Profit
$1.91B
Previous year: $2.31B
-17.0%
Cash and Equivalents
$5.13B
Previous year: $3.59B
+43.1%
Free Cash Flow
-$402M
Total Assets
$54.5B
Previous year: $51.1B
+6.6%

Hewlett Packard Enterprise

Hewlett Packard Enterprise

Hewlett Packard Enterprise Revenue by Segment

Forward Guidance

HPE withdrew fiscal year 2020 guidance due to increased uncertainty related to the COVID-19 pandemic and will not be providing fiscal year 2020 third quarter or full year guidance.

Revenue & Expenses

Visualization of income flow from segment revenue to net income