Antonio Neri: Well, thanks, Jeff, and good afternoon, everyone. Thank you for joining our earnings call. We began our fiscal year 2023 from a position of great strength after delivering an outstanding 2022 fourth quarter. I am extremely pleased with how we leverage that strength to achieve impressive results in Q1. HPE posted a record set in first quarter performance, extending our track record of consistency fulfilling our financial commitments. We generated our highest first quarter revenue since 2016 and our best ever non-GAAP operating profit margin. Our focus on growth opportunities and pricing discipline produced our highest ever non-GAAP diluted net earnings per share. Powered by our market-leading hybrid cloud platform, HPE GreenLake, we unlocked an impressive $1 billion in annualized revenue run rate or ARR for the first time.

Our results show the relevance of our strategy that addresses megatrends around edge, cloud and AI reshaping our industry, the transformation of our industry leading portfolio and the outstanding execution of our team. In the first quarter, total HPE revenue climbed 18% to $7.8 billion, significantly above the high end of our outlook. We once again expanded non-GAAP operating margin this time to a record 11.8%, up 80 basis points year-over-year. Non-GAAP diluted net earnings per share increased 19% year-over-year to $0.63. Free cash flow was negative $1.3 billion, reflecting working capital needs in a quarter where we typically see use of cash. Our Q1 performance and the size of our order book position us well for fiscal year 2023. Our quarterly results, combined with confidence in our strategy and execution have led us to raise our revenue and EPS guidance for the full fiscal year.

Tarek will provide more details in his remarks. From a macro perspective, the supply chain challenges we faced during several quarters continue to ease, and we expect more of that throughout fiscal year 2023. As we mentioned at the close of fiscal year 2022, we do not anticipate all supply shortages coming to an end, but we do expect supply availability to continue to improve. Our order book at the start of Q1 was larger than it was a year ago. And as we exit the quarter, it is more than twice the size of normalized historical levels. Our Intelligent Edge, HPC and AI and other as-a-service order books continue to stand at extremely elevated level. Against today's macroeconomic backdrop, demand for our solutions continue, though it is uneven across our portfolio, we also see more innovated cell cycles, specifically in compute that we have seen in recent quarters.

We responded decisively to demand in the market, working to win deals across all geographies and all parts of our portfolio. The traction of our portfolio is the result of our winning strategy, aligned to major market trends around the edge, cloud and AI. We continue to anticipate what comes next for our customers and invest in innovation to address the data first modernization needs with an unmatched set of edge to cloud solutions. In addition to driving impressive organic innovation across our portfolio, we continue to be opportunistic in considering strategic acquisitions and partnerships that enhance what we can offer to our customers. Today, we announced our agreement to acquire cloud security provider access security, which will help fortify network security and strengthen our Secure Access Service Edge or SASE solutions.

As we anticipate further customer demand for enhanced connectivity to our HPE Aruba Intelligent Edge solutions. Last week, we also announced our purchase of Athonet, which strengthened our private networking capabilities to help enterprises and telcos accelerate 5G deployments. Through these acquisitions, we are creating one of the most complete cloud portfolios in private 5G and wireless connectivity areas we have identified for growth in coming years. These new private 5G capabilities will be integrated into our HPE GreenLake platform, enabling customers to combine their WiFi and private 5G into one subscription that can scale according to demand. Earlier in the first quarter, we also purchased technology from two companies that enhance our cloud computing and AI offerings.

Next quarter, we will begin selling scalable compute software technologies from tile scale, introducing additional choice points for customers to meet their compute and data-intensive world needs. We also integrate -- we will also integrate the packet reproducible AI software with our supercomputing AI solutions to further expand our AI at scale capabilities. We will continue to assess organic and inorganic investments that improve our competitive position in growth markets while driving higher level of recurring revenue and profitability. As always, we follow a disciplined return-based framework to build on our track record of creating sustainable long-term value for shareholders. Since we began the transformation of our business in 2019 to become the edge to cloud company, we have consistently grown our other service business, underpinned by the HPE GreenLake platform.

The relevance of HPE GreenLake with customers, combined with our disciplined execution, has propelled both AI and our as-a-Service total contract value higher. Over the last two years, we have more than doubled our as-a-Service total contract value, reaching nearly $10 billion through the end of this quarter. These milestones prove the momentum in our transformation. During the first quarter, we once again increased our new HPE Green logos, growing our customer base by 7%, while as-a-Service order this quarter declined 20% year-over-year, it is important to keep in mind that the order figure is compared to prior year growth of a record 136%. One HPE GreenLake customer we recently highlighted is the 2023 Ryder Cup, which announced HPE will deliver an intelligent, secure and flexible high-performance network to our platform at the September 2023 golf event in Rome.

Our platform will enable the Ryder Cup to deliver the tournament as-a-Service in a sustainable cost-efficient way while significantly enhancing the spectator experience and engagement. We have continued our investment in HP GreenLake, expanding our cloud services portfolio and partner ecosystem. In December, at our HPE Discover Frankfurt customer event in Germany, we announced our latest enhancements and the new cloud platform services capabilities in the data analytics, developer and sustainability areas. Our HPE GreenLake platform continue to attract business and drive performance across the portfolio. In every one of our key segments during the first quarter, we produced more revenues as well as positive operating profit. Let me provide you a few highlights.

In our Intelligent Edge segment, revenue increased 31% year-over-year. We continue to see customers switch to our HPE Aruba technology from other vendors. We provide a single AI-driven cloud management experience, which is now part of HPE GreenLake platform with easy-of-use improving cost benefits. Year-over-year revenue growth was even higher in our HPC and AI segment, up 37% as we book revenue associated with Frontier, the world's first Exascale system. HPE is the clear market leader and has significant growth opportunities as enterprises scale AI models. AI will transform the IT landscape in the coming years and is a generation of technology shift like web, mobile and cloud that have the potential to disrupt existing business models. Supercomputing will be essential to enabling this disruption.

For example, building a viable generative large language model for search would require a supercomputer to run the model continuously to stay current and improve accuracy. Our HPC and AI business has strong IP in the case of experience that give HPE a competitive advantage in building large computing systems, which are required to increase social adoption of AI models globally. We recognize AI will become the dominant supercomputing world load, while we acquired the market leader Cray in 2019. And continue to invest in key technology innovation that will enable these AI models at scale. Key examples are our acquisition of Determined AI in 2021 and Pachyderm early this year. While either unique and differentiated software to help our customer strength AI models and automate data pipelines.

Customer recognized this leadership. For example, Aleph Alpha, a German startup building a commercial large language model has turned to HPE. We're also working with customers across industry verticals such as life sciences, aerospace to have new breakthroughs with AI. In the quarters ahead, we anticipate sharing more news on how we are scaling in this market and attracting new customers. I'm also pleased with the strong and steady performance of HPE Financial Services, which grew revenue 8% and financing volumes 21% year-over-year. Last month, we announced the retirement of our long-standing leader of this business, Rotman, and the promotion of Gerri Gold to take helm and further accelerate the business momentum. Gerri and her team recently launched a special financing program for customers who score high in ESG, and we are seeing great customer and partner response already.

I am very proud of how the ?? our HPE team members have executed to achieve this quarter's exceptional plans, especially given the uneven macro environment. We have kicked off fiscal year 2023 with another set of standout results, giving us the confidence to raise our revenue and non-GAAP earnings per share guidance for the full fiscal year. Our customers have responded to the hybrid cloud value proposition we uniquely provide as they seek better ways to drive value from data from a cloud. We are attracting more customers and executing with discipline. As we look forward, we remain laser-focused on executing our winning strategy, which is delivering unmatched innovation and significant results for our customers and shareholders. We are confident in our strategy and execution for the long term.

Let me now ask Tarek to give details on our business segments and greater visibility into our updated financial outlook. So, Tarek, over to you.

Tarek Robbiati: Thank you very much, Antonio. Q1 2023 was, as Antonio said, a record quarter for HPE. As usual, I will reference slides some earnings presentation to guide you through our performance. Antonio discussed key highlights for Q1 2023 on slide 4. Let me discuss our Q1 performance details, starting with slide 5. We are very pleased that the execution of our strategy has driven record quarterly results in terms of revenue, non-GAAP gross margin, non-GAAP operating margin and non-GAAP EPS for a first quarter of a financial year. These and other records I referenced are primarily since we reset our strategy with our 2017 spin-off transactions. Notably, revenues grew year-over-year across all our business segments, Save for corporate in Q1 2023, as we benefited from improvements in the supply environment.

Our supply chain execution is solid, we have very strong momentum, thanks to our substantial order book and our investments are bearing fruit, and we are gaining share in specific at segments. In short, our strategy is working and working really well. Having said so, while we are optimistic about our fiscal year 2023, we're all realistic. Overall, we have experienced above-trend demand through much of the past two years as attested by our growing order book over the fiscal year 2022 period. And now market demand has shifted from being steady across our portfolio to being uneven over the course of Q1 2023. More specifically, deal velocity for Compute has slowed as customers digest the investments of the past two years, though demand for our storage and HPCI solutions is holding and demand for our edge solutions remains healthy.

Photo by James Jeremy Beckers on Unsplash

In that context, we are taking action to maintain our momentum for the second half of 2023 and fiscal year 2024. We intend to further our investments in software and services in all our business units including in our HPE GreenLake edge-to-cloud platform, HPC AI, storage and edge to extend our share gains across our segments, all while retaining our cost discipline and productivity focused. We delivered Q1 revenue of $7.8 billion, which equates to a robust 12% year-over-year growth and 18% in constant currency despite our exit from Russia and Belarus in Q2 2022. We did not experience a typical seasonal decline between Q4 and Q1, thanks to excellent supply chain execution on our large order book. Each of our segments excluding only our corporate segment grew revenue at least 8% in constant currency.

This revenue performance was well above our prior guidance for Q1 of $7.2 billion to $7.6 billion and represented a record Q1 revenue level. We benefited from improvements in the supply environment, particularly in our Compute segment. This allowed us to execute against our order book, which our customers greatly appreciated. The delivery times of our products and services across our portfolio are now almost back to pre-pandemic levels. Yet we continue to have more progress to make in supply chain productivity as our order book entering Q2 2023 is more than twice normal level across our company. The combination of our large order book and improved supply environment gives us confidence that we can grow revenues well above the previously communicated guidance of 2% to 4% revenue growth in constant currency for fiscal year 2023.

More on that later. As a result, we also a confidence in the longer term 2% to 4% revenue CAGR outlook over the fiscal year 2022 to fiscal year 2025 period, we provided at our 2022 Securities Analyst Meeting last October. Our non-GAAP gross margin reached a Q1 record of 34.2%. This is up 30 basis points year-over-year and 110 basis points sequentially. Our margin structure has benefited from pricing actions we have taken over the course of the pandemic, combined with the beginnings of declines in commodities and logistics costs Over the long-term, our margin structure will continue to benefit as we continue to shift our mix of business to higher margin software-intensive as-a-Service offerings. Our non-GAAP operating margins reached a record high 11.8%.

This is 80 basis points ahead of Q1 2022 and 30 basis points higher than Q4 2022. While strong revenue growth and gross margin performance are key drivers, this result would not have been possible without the strategic actions. Antonio and I took in fiscal year 2020 to reallocate resources and optimize our cost structure. As mentioned during our last earnings call, Antonio and I remain determined to maintain our focus on productivity. Our top line and margin strength in Q1 translated to GAAP diluted net EPS of $0.38 and non-GAAP diluted net EPS of $0.63. Non-GAAP diluted net EPS easily exceeded our guidance range of $0.50 to $0.58 and was another company record. Our Q1 2023 free cash flow was negative $1.3 billion. We typically have seasonal outflows in our Q1.

We will discuss cash flow in more detail in a moment. But having said that, we remain on track to generate between $1.9 billion and $2.1 billion in free cash flow in fiscal year 2023. Finally, we are continuing to return substantial capital to our shareholders. We paid $156 million in dividend this quarter and repurchased $73 million in stock. We intend to buy back at least $500 million worth of shares in fiscal year 2023, just like we did in fiscal year 2022. Turning on to our as-a-Service business performance. We are very pleased to announce our ARR surpassed $1 billion in Q1 2023. This is an important milestone for our business that reflects that our as-a-service strategy is working. The supply chain challenges have slowed our ARR growth in prior quarters.

The benefits of easing supply challenges are beginning to appear in our results as ARR growth in constant currency accelerated from 25% in Q4 2022 to 31% in Q1 2023. We expect further acceleration through fiscal year 2023 as improving supply allows us to expedite delivery of as-a-service solutions to our customers. Our as-a-service order decline of 20% in Q1 is a function of a difficult compare to Q1 2022, in which orders grew 136% on strength from several large deals, including a large public cloud customer. We are comfortable with our robust pipeline of as-a-Service business. We base this confidence on our 68% order growth in fiscal year 2022, the number of deals currently pending acceptance and our current view of the sales funnel. We, therefore, retain our three-year ARR target of 35% to 45% CAGR from fiscal year 2022 to fiscal year 2025.

Most importantly, we continue to make our as-a-Service business more valuable with a growing mix of higher-margin software and services recurring revenue. In Q1 2023, our mix of software and services increased another 150 basis points year-over-year to 65%, thanks to our cloud and SaaS offerings, particularly in edge and storage. Let's now turn to our segment highlights on the next slide. I would like to remind you that, all revenue growth rates on this slide are in constant currency. In the Intelligent Edge, we delivered a second consecutive record revenue quarter and surpassed the $1 billion revenue milestone for the first time. We grew our revenue 31% year-over-year. We are outgrowing our main competitors and are taking share with our combination of wireless LAN, enterprise switching and SD-WAN solutions, including in some of the largest enterprise customers.

Customers are increasingly adopting our software-centric solutions such as our edge service platform, automation suite. Our operating margin of 21.9% was up 450 basis points annually and 860 basis points sequentially. We're benefiting from scale and our prior price increases have worked through our order book. We are very, very pleased that our edge business has exceeded the rule of 40 this quarter and feel very optimistic about the prospects of our Aruba business in fiscal year 2023 and beyond, given its substantial order book underpinned by a superior platform-based SaaS offerings. We retain confidence in our long-term targets of mid-teens revenue growth and mid-20% operating margins. In HPC and AI, revenue grew 37% year-over-year. We successfully closed the balance of the Frontier deal in Q1, which contributed to the strength of this business in Q1 2023.

While the segment is also now benefiting from easing supply chain, the lumpiness and long lead times of this business mean that operating margins will continue to fluctuate. As Antonio mentioned, we have been thinking strategically about and investing behind Artificial Intelligence for many years. This is true both organically and inorganically. The emergence of large language models such as ChatGPT and BART and generative AI, some of which run on our systems has prompted many questions from our customer base. We believe AI at scale is a high-growth market and then the building and refinement of AI models will require unique computational capabilities that our Cray supercomputers and HPI solutions are extremely well positioned to enable. We intend to invest organically and inorganically as listed by our acquisition of Pachyderm to fully grasp this opportunity.

With regards to storage, we are pleased to report 10% annual growth, where we are bolstering our portfolio to grow market share. HPE Alletra remains one of our fastest-growing new product introductions ever, and grew well above triple-digits in Q1. HPE Alletra contributed to double-digit growth in our own IP products, which is driving a mix shift to higher-margin, software-intensive as-a-Service revenue. We continue to invest in R&D for our own IP products in this business unit. And as a result, our Q1 operating margin of 12% is down 190 basis points year-over-year. Compute revenues grew 19% year-over-year to $3.5 billion. The segment benefited from the multi-sourcing and demand steaming initiatives we have discussed in prior calls as well as steadily improving supply availability.

Our dynamic pricing strategy has helped us navigate a volatile supply climate while driving industry-leading gross margins. Our Compute operating margin of 17.6% exceeded our long-term outlook of 11% to 13% for the fifth consecutive quarter, which attests to our best-in-class performance. We do believe our Compute operating margins are peaking and should gradually return to our target range of 11% to 13%. While we are seeing commodities costs decreasing, leading to increased competitive price pressure, we have for the first time three concurrent and differentiated platforms being sold in the market, Gen10, Gen10 Plus and Gen11, which would allow a gradual management of pricing and margins over time. In our Pointnext Operational Services business, combined with Storage services, orders declined mid- to high single-digits and revenues were flat year-over-year, driven by uneven demand.

As you know, this is a key component of recurring revenues and profit for each of our segments. Finally, HPE Financial Services revenues rose 8% year-over-year and financing volume of $1.6 billion grew 21% in constant currency. Our operating margins fell 300 basis points year-over-year due to the higher interest rate climate that we will gradually offset over time through pricing. Time and time again, our HPFS business has proven resilience in downturn, thanks to the quality of the underwriting of the book of business. Throughout the pandemic, I'd like to remind you, our annual loss ratio never exceeded 1%. Our loss ratio is back to pre-pandemic levels of approximately 50 basis points. Slide 8 highlights our revenue and non-GAAP diluted net EPS performance.

We are very pleased that the progress we are making again our edge-to-cloud strategy is evidence in the financial results we have delivered on both the top and bottom lines. We have grown both our revenue and non-GAAP diluted net EPS to record or near-record levels in Q1 2023. This illustrates not only the commercial success of our products in the marketplace, but also our ability to generate healthy margins. I am particularly pleased to see that our focus on supply chain execution has enabled the attainment of record revenues despite a substantial year-over-year headwind from foreign exchange rates that impacted revenue growth by 550 basis points in Q1 2023. Slide 9 illustrates the progress we have made in our gross margin structure. Our Q1 2023 non-GAAP gross margin is up 30 basis points year-over-year.

We generated $2.7 billion in gross profit in Q1 2023, which is yet another quarterly record. Our gross profit and margin are a testament to the success of our strategic pricing actions through the period of supply challenges in fiscal year 2020 to fiscal year 2022. It is also illustrative of the long-term favorable mix shift we are driving. Despite a strong compute quarter, our revenue mix of computing at 44% was flat year-over-year. This illustrates that we have a larger revenue base as our higher-margin segments are growing rapidly, and our as-a-service strategy is gaining momentum. Slide 10 illustrates our non-GAAP operating margins for which reached 11.8% in Q1 '23. This is up 30 basis points sequentially and 80 basis points year-over-year.

It is also a record quarterly non-GAAP operating margin for the company. Our very strong Q1 revenue performance and our resilient gross margins are the leading contributors to the operating margin expansion. Unlike many tech companies that have announced layoffs recently, we have strong momentum at HPE with a combination of our improved cost structure, substantial order book and outstanding execution, delivering profitable growth that is increasingly recurring at higher margins as our as-a-service transformation continues to unfold. Again, let me reiterate that Antonio and I are determined to maintain this focus on profitable growth and productivity for the future. Let's now turn to discuss H3C. As you know, we've chosen to exercise our put options on our shares in H3C.

We took this decision to carefully weigh the financial implications of remaining in the joint venture with the risk-reward profile of exercising the put. We are confident that we have made the decision that is in the best interest of our shareholders. HPE and our partner, Unisplendour continue to have strive discussions to reach agreement on the determination of the final purchase price of HPE shares in HPC and enter into a share purchase agreement. We will keep you updated ?? please keep in mind that, our decision to exercise the put is distinct from the commercial agreements with H3C. We intend to continue to do business in China through both our direct sales and through H3C and we remain committed to serving our customers in China. I would like to remind you that, we will continue to recognize the value of the dividends we received from H3C in our financials until the transaction is complete and I'm happy to report H3C results remains healthy despite uncertainty in the Chinese economy.

Our first fiscal year from a cash flow perspective is typically a down quarter for cash flow. In Q1 2023, we had outflows of $800 million in cash flow from operations. And $1.3 billion in free cash flow. Working capital was a use of cash due to timing of receipts, payments, and continue investments in inventory, which has driven our cash flow conversion cycle from negative 14 days in Q4 to positive 15 days in Q1 2023. More specifically, our accounts payable balance was reduced by $2.2 billion quarter-over-quarter and was the main driver for negative operating cash flow and affected our cash flow conversion cycle. Also we have made significant investment in HPEFS volumes to drive future growth in subsequent quarters. We expect to generate significant free cash flow in the remainder of fiscal year 2023 and reiterate our guidance of $1.9 billion to $2.1 billion in free cash flow for the full year.

Now let's turn to our outlook slide on Slide 13. As we have mentioned, demand for our products and services was more uneven in Q1 2023 across our business than it was in Q4 2022. Having said that, we also believe our portfolio differentiation will continue to drive market share gains and are entering Q2 2023 with a substantial order book relative to pre-pandemic levels. We have strong momentum in Q1 2023 and we are now turning our focus to invest in sustaining that momentum in the second half of 2023 and fiscal year 2024 in a context of continuous macroeconomic uncertainty. Let me reiterate that our guidance incorporates our current thinking on the macroeconomic picture, inflationary pressure, or exit from Russia and Belarus in 2022 and foreign exchange risk.

I would like to remind you that approximately 50% of our revenue is generated in foreign currencies. For Q2 2023, we expect revenues in the range of $7.1 billion to $7.5 billion at every point of the range. This represents 9% year-over-year growth in reported dollars. We expect GAAP diluted net EPS of $0.27 to $0.35 and non-GAAP diluted net EPS of $0.44 to $0.52. This outlook assumes the current level of demand we have been experiencing remain unchanged. And then we continue to make progress on the delivery of our order book. To sum it up, I am very pleased with our Q1 results and guidance for Q2. We also understand some of our end markets are likely to remain uneven in the near-term. We had indicated at our last earnings announcement that our financial performance in fiscal year 2023 is likely to be more weighted ?? more weighted to the first half of the year than is typical.

Given the strong Q1 performance, momentum and substantial order book we continue to have, we are lifting our full year guidance accordingly. We are now targeting 5% to 7% revenue growth adjusted for currency, which is at the midpoint, twice our prior revenue growth guidance, non-GAAP operating profit growth of 5% to 6%, GAAP diluted net EPS of $1.40 to $1.48. Non-GAAP diluted net EPS of $2.02 to $2.10 and free cash flow of $1.9 billion to $2.1 billion. Specifically for OI&E, we benefited in Q1 2023 from one-off foreign exchange gains that accounted for $0.02 to $0.03 per share. These are unlikely to repeat in the rest of the fiscal year. Given the high interest rate environment is expected to remain unchanged, we expect OI&E to be an expense of $20 million to $40 million on a full year basis.

This explains our fiscal year 2023 EPS guidance range of $2.02 to $2.10, which incorporates $0.06 of the $0.09 beat in Q1 2023. In terms of capital returns, we will return approximately 60% of free cash flow to shareholders via dividends and repurchases. We are maintaining our dividend and expect to repurchase at least $500 million worth of shares in fiscal year 2023. So to conclude, our results speak for themselves, and we continue to execute better than the competition. While many tech companies are playing defense with layoffs, we see fiscal year 2023 as an opportunity to accelerate the execution of our strategy. Antonio and I look forward to continuing our execution momentum through fiscal year 2023 and beyond. Now with that, let's open it up for questions.

Thank you.

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