Hewlett Packard Enterprise Company (NYSE:HPE) Deutsche Bank Technology Conference September 15, 2020 4:40 PM ET
Tarek Robbiati – Chief Financial Officer
Jon Faust – Chief Financial Officer, Aruba
Conference Call Participants
Jeriel Ong – Deutsche Bank
Hi, everybody and welcome to the closing session of the Deutsche Bank Technology Conference. My name is Jeriel Ong. I am the IT Hardware Analyst here at Deutsche Bank. And with me, we have Hewlett Packard Enterprise; and specifically, we have Tarek Robbiati, the CFO of Hewlett Packard Enterprise. Tarek?
Good afternoon, Jeriel and good afternoon, everyone. Hope you’re all well and safe. Jeriel, thank you for having me today, present at the Deutsche Bank conference. I wanted also to introduce you and the audience to a key member of my team, jon Faust. Jon is the CFO of Aruba, our edge business and I’ve asked him to join me, so that in case you have any questions pertaining to how is our business doing and how is Aruba doing in particular, we can have him share his perspective with us.
All right, appreciate that. I guess with all that said, we’ll jump right in. And if you guys have any questions, feel free to enter them into the webcast system and we’ll try to get to them closer to the end of the time that we have together. I guess I’ll start high level and talk about revenues. So, in – from my perspective, organic revenue growth is the most important metric for investors to get a bit more reengaged in the stock, and this quarter through at least one lens can be viewed as a quarter where HPE executed as it said it would, it be expectations in fact and the company appears to be on a path to a more improved revenue outlook. I guess what does HPE need to do in your view to continue to establish that path towards top-line stability and are there step markers in the medium or long-term that you would highlight?
Yes. thank you, Jeriel for this opening question. I’d say, as we always said on our earnings calls, our top priority is to return HPE to sustainable, profitable revenue growth. This is absolutely key and as you all know, back in May, we announced our cost optimization and core transformation program and what that program is about is reallocating resources to avenues of growth and gross margins. We are well ahead in executing this program, and we are starting to see the benefits of it in Q3. Now, we’ll continue to see the benefits of this all the way on to 2021 and 2022 when the program will come to an end.
We are, as part of that and our core transformation, driving the growth as-a-service business, I want to remind everybody that our GreenLake business has been growing at a very substantial growth rate with orders that were north of 80% in Q3, which drives the ARR, our annualized run rate of revenues, we did…