28-Aug-2024
HP, Inc. (HPQ) Q3
2024 Earnings Call
Total Pages: 17
HP, Inc. (HPQ)
Q3 2024 Earnings Call | 28-Aug-2024 |
CORPORATE PARTICIPANTS
Orit Keinan-Nahon | Karen L. Parkhill |
Senior Vice President-Finance & Head-Investor Relations, HP, Inc. | Chief Financial Officer, HP, Inc. |
Enrique Lores | Timothy J. Brown |
President, Chief Executive Officer & Director, HP, Inc. | |
Interim Chief Financial Officer, HP, Inc. | |
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OTHER PARTICIPANTS
Andrew Spinola | Wamsi Mohan |
Analyst, UBS Securities LLC | Analyst, Bank of America Merrill Lynch |
Samik Chatterjee | Michael Ng |
Analyst, JPMorgan Securities LLC | Analyst, Goldman Sachs & Co. LLC |
Erik W. Woodring | Irvin Liu |
Analyst, Morgan Stanley & Co. LLC | Analyst, Evercore Group LLC |
A. M. Sacconaghi | Steven Kinney Chin |
Analyst, AB Bernstein | Analyst, TD Cowen |
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MANAGEMENT DISCUSSION SECTION
Operator: Good day, everyone, and welcome to the Third Quarter 2024 HP, Inc. Earnings Conference Call. My name is Desiree, and I'll be your conference moderator for today's call. At this time, all participants will be in listen-only mode. We will be facilitating a question-and-answer session towards the end of the conference. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.
I would now like to turn the call over to Orit Keinan-Nahon, Head of Investor Relations. Please go ahead.
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Orit Keinan-Nahon
Senior Vice President-Finance & Head-Investor Relations, HP, Inc.
Good afternoon, everyone, and welcome to HP's third quarter 2024 earnings conference call. With me today are Enrique Lores, HP's President and Chief Executive Officer; Karen Parkhill, HP's Chief Financial Officer; and Tim Brown, who is the Interim Chief Financial Officer.
Before handing the call over to Enrique, let me remind you that this call is a webcast, and a replay will be available on our website shortly after the call for approximately one year. We posted earnings release and accompanying slide presentation on our Investor Relations web page at investor.hp.com.
As always, elements of this presentation are forward-looking and are based on our best view of the world and our businesses as we see them today. For more detailed information, please see disclaimers in the earnings materials relating to forward-looking statements that involve risks, uncertainties and assumptions. For a discussion of some these risks, uncertainties and assumptions, please refer to HP's SEC reports, including our
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most recent Form 10-K. HP assumes no obligation and does not intend to update any such forward-looking statements. We also note that the financial information discussed on this call reflects estimates based on information available now and could differ materially from the amounts ultimately reported in HP's SEC filings.
During this webcast, unless otherwise specifically noted, all comparisons are year-over-year comparisons with the corresponding year ago period. In addition, unless otherwise noted, references to HP channel inventory refer to Tier 1 channel inventory. For financial information that has been expressed on a non-GAAP basis, we've included reconciliations to the comparable GAAP information. Please refer to the tables and slide presentation accompanying today's earnings release for those reconciliations.
With that, I'd now like to turn the call over to Enrique.
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Enrique Lores
President, Chief Executive Officer & Director, HP, Inc.
Thank you, Orit, and thank you all for joining today's call. Let me start by welcoming our new CFO, Karen Parkhill, who joined HP earlier this month. Her expertise and background are a great addition to our leadership team, and we are delighted to have her on board. And a big thank you to Tim Brown, for stepping in as Interim CFO over the last three quarters.
Today, I will cover our third quarter results, a few of the new innovative experiences we have introduced, how we are tracking against our strategic priorities, and our expectations for Q4. Karen will provide additional details on our financials and outlook.
Starting with our results, let me first focus on revenue. I am pleased to share we are building solid momentum. The company returned to revenue growth for the first time in nine quarters, up 2% year-over-year. This was driven by strong performance in Personal Systems and our key growth areas. Commercial PC recovery was strong, in line with our expectations, and a signal of ongoing market stabilization. That said, the recovery of the Print market was slower than expected, which impacted Print revenue.
Non-GAAP operating profit was down 7% and non-GAAP EPS was within our previously provided outlook range, but below our expectations. We have been taking decisive actions to address this. We see an immediate opportunity to drive additional structural cost savings in Q4 as part of our Future Ready program. We're accelerating our plan, raising our exit goal for fiscal year 2024. We expect to reach 80% of the three-year structural cost run rate target by the end of this year.
We will also keep executing our plan to strengthen momentum and drive long-term profitable growth. This includes investments in support of our growth businesses. And these combined efforts will help us win in the market, drive profitable growth and build a stronger HP.
Turning to new innovations, Q3 was another strong quarter. We continue to deliver industry-leading experiences by putting our customers at the center of everything we do. In the AI PC category, we are charging ahead. Our next-gen AI PCs are empowering everyone from knowledge workers to data scientists to unlock the power of AI. In May, we launched our first generation using the latest Qualcomm processor as the world's thinnest next-gen AI PC with the longest battery life, they are made for mobility. And in July, we introduced a new premium model powered by the latest AMD processor. It is the most powerful AI PC in the industry with up to 55 TOPS of NPU performance.
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It delivers personalized experiences like real-time translation, personal communication coaching and quick professional video creation. And to help protect against AI-assisted cyberattacks, the new OmniBook Ultra includes the industry-leading protections and capabilities of HP Wolf Security.
We are doing even more to raise the bar for data scientist and AI developers. Our HP AI Studio is the world's most comprehensive workstation solution for AI development. In Q3, we made it even stronger by being the first and only to build Gen AI trust into our solution. This means developers can more effectively detect, correct and monitor inaccurate output from AI models, making it faster and safer for companies to deploy AI-powered applications.
In Workforce Solutions, our proprietary Workforce Experience Platform is exceeding our expectations. Customers are now leveraging our AI capabilities to manage over 250,000 devices, and growing. We also recently added several managed devices wins and deployments, including larger companies like Eaton. Our continued partnership with this global intelligent power management company will help support their IT journey in serving more than 90,000 employees around the world.
We set a new standard for industrial printing at Drupa, introducing advanced digital process and intelligent automation solutions. This included autonomous mobile robots that save up to 2 hours of production a day per press. We also enhanced our PrintOS platform, giving customers the ability to monitor their entire production floor from jobs mission to delivery. We were honored to take home more best of awards than any other exhibitor at the show. We also announced a new partnership with Canva, where 185 million monthly users can now similarly design and create online and print locally.
We also secured major deals with print and digital industry leaders like R.R. Donnelley, All4Labels, and Cimpress. We are excited about what's ahead. In September, we will host our second annual HP Imagine event. Here, we will unveil even more new experiences that help our customers drive growth and professional fulfillment. In Q3, we further invested in our long-term success. We acquired CyberCore Technologies, a leading provider of secure supply chain management and cyber solutions for the US Federal government. The addition of CyberCore to the HP family will help further strengthen our security expertise and enhance our offerings.
And just yesterday, we announced we have received a $50 million award from the U.S. Department of Commerce. This funding from the CHIPS and Science Act will help modernize and expand our microfluidics semiconductor fab in Corvallis, Oregon. It will also help us further explore the potential of our microfluidics technology in new areas such as life sciences.
In Q3, we released our annual Sustainable Impact Report, highlighting the important progress we have made. In 2023, our initiatives help us reach a 27% reduction in value chain greenhouse gas emissions. We continue to roll out easily recyclable packaging created from recycled content. In 2023, we reached a 62% reduction in single-use plastic packaging. And our digital equity efforts have reached 45 million people since 2021.
We know there is always more that can be done, but we are proud of our progress. And we are honored to be ranked first in our industry on TIME Magazine's World's Most Sustainable Companies list. Now, let me share more details on the performance of each our businesses in the third quarter.
In Personal Systems, revenue was up 5% year-over-year, the second consecutive quarter of year-over-year growth. Operating profit was 6.4%, in line with expectations. Globally, our PC share was flat year-over-year, but up 1.3 points quarter-over-quarter. This was driven by growth in high-value categories, including workstations and consumer premium.
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We continue to see strong progress in key growth areas, with revenue up year-over-year in Personal Systems services and in Hybrid Systems, driven by strong demand for video collaboration. And we grew gaming revenue quarter-over-quarter, in line with normal seasonality.
We remain very excited about the AI PC's opportunity. Shipments are ramping and initial reactions overwhelmingly positive. We have a strong portfolio with an unprecedented level of HP engineering. Our growing ecosystem of developers and AI software providers are a huge competitive advantage. Forbes declared HP won the AI PC crown, and they are right. Our focus is on delivering new AI experiences for our customers. Overall, our AI PC expectations across shipments, higher ASPs and premium mix remains on track with our expectations for the second half.
Shifting to Print, net revenue was down 3% year-over-year. We delivered Print operating profit of 17.3%, which was below our expectations. We saw a softer demand, unfavorable geo mix, and a more aggressive pricing environment. Even in this type of challenging environment, I expect us to do better. And as I said earlier, we are taking actions to accelerate our structural cost savings for this year.
We have made progress on gaining profitable share with growth year-over-year and quarter-over-quarter in home and in office, when excluding China. We gained share in our strategic areas especially in Big Tanks, A3 and A4 value.
Key growth areas in Print continue to make progress. Consumer services revenue and subscribers grew year- over-year. Industrial graphics did as well. And we have strong momentum coming out of Drupa. And supplies continue to perform as expected.
Overall, we generated strong free cash flow of $1.3 billion in the quarter and return $29 billion to shareholders. We remain committed to our capital allocation strategy. Our board of directors have just increased the total share repurchase authorization to $10 billion. This reaffirms our commitment to deliver strong and sustained capital return to our shareholders.
Looking forward to Q4, we expect the demand environment will remain dynamic and that our markets will continue to be competitive. We expect the PC commercial momentum to continue and our key growth areas to make progress. At the same time, the competitive pricing environment will remain in Q4 and the Print market recovery will continue to be slower. As a result, we decided to moderate our expectations for Q4 and the full year.
We will maintain investments and progress in high value and key growth areas, and accelerate our cost reduction plans. We are confident in our strategy and well equipped to drive meaningful progress as we round out fiscal year 2024. Across our entire portfolio, leveraging AI and enabling hybrid work experiences will remain central to creating solutions that deliver growth and fulfillment for all HP customers.
I will pause here and turn it over to Karen.
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Karen L. Parkhill
Chief Financial Officer, HP, Inc.
Thank you, Enrique, for the warm welcome. I'm thrilled to join HP, and I'm eager to meet you, our analysts and investors in the months ahead. Though I've been here just a few weeks, I'm incredibly impressed by the innovation all around me. HP is an iconic company, and I'm excited to work with Enrique and our leadership team
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to create an even stronger future ahead. Building upon our market-leading portfolio, attractive growth businesses, and culture keenly focused on delivering value for our shareholders.
Now on to the quarter. Starting high level, we are building on the progress we made in the first half, and as Enrique said, are pleased with our return to revenue growth for the first time in nine quarters. Solid performance in Personal Systems, which grew for the second quarter in a row and in our key growth areas drove our Q3 revenue growth. And double-digit sequential growth in Personal Systems drove strong free cash flow in the quarter. We also returned nearly $870 million to our shareholders through repurchases and dividends and remain focused on returning approximately 100% of our free cash flow this fiscal year.
Looking across the company, the print market was softer than we expected at the beginning of the quarter. And both Print and PS saw dynamic pricing environment that put some pressure on our margins, as did our focus on continuing to invest for long-term sustainable growth. As a result, and as Enrique mentioned, we are accelerating our Future Ready Plan and intend to deliver savings sooner than expected.
As a reminder, our plan incorporated our goal to deliver gross annualized structural cost savings of $1.6 billion by the end of fiscal year 2025 with approximately 70% or $1.1 billion achieved by the time we exit the fiscal year.
Given our focus to mitigate near-term market challenges and just as importantly, maintain investments to drive longer-term growth, we have accelerated our efforts and now expect our cumulative savings target exiting the fiscal year to be approximately $1.3 billion or 80% of the planned target.
Now, let's take a closer look at the details of the quarter. Net revenue was up 2% nominally and up 3% in constant currency. In constant currency, revenue increased in all regions with Americas, EMEA and APJ each growing 3%. Gross margin at 21.5% in the quarter was up slightly year-over-year. Our cost-saving efforts offset both competitive pricing in the face of rising commodity costs and a mix shift given the strong PS performance.
Non-GAAP operating expenses were up year-over-year from continued investment in key initiatives and our people. And of course, we continue to drive cost reductions, including the Future Ready cost savings. All in, non- GAAP operating profit was $1.1 billion, down 7% year-over-year.
Below the op profit line, non-GAAP net OI&E was down year-over-year, benefiting from less short-term financing activity and lower interest expense from the debt tender we completed last year. Finally, with a diluted share count of roughly 1 billion shares, our non-GAAP diluted net earnings per share was $0.83, a year-over-year decrease of $0.03, and GAAP diluted net earnings per share was $0.65.
Now, let's turn to segment performance. Personal Systems revenue was up 5%, both nominally and in constant currency, with higher commercial volumes and increased ASPs as we worked to adjust pricing where possible to mitigate increased commodity costs. Total units were up 1% year-over-year with strength in commercial. And sequentially, revenue was up 11% and units were up 14% with seasonal strength and overall share gains. Of note, fiber systems revenue grew in the double digits year-over-year, including strong growth in video collaboration.
Drilling more into the details, Consumer revenue was down 1% with units down 6% and commercial revenue was up 8% on 6% unit growth. Improved pricing in consumer, along with favorable commercial mix and a shift to premium, consistent with our strategy, drove higher overall ASPs. In fact, we continue to see commercial representing greater than 70% of Personal Systems revenue. And while calendar Q2 market share was flat year-
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over-year, we gained share sequentially, driving improvements in high-value categories. And of course, we remain focused on driving profitable revenue and share growth in both our consumer and commercial markets.
Personal Systems operating margin of 6.4% was down slightly year-over-year. We had higher commodity costs and purposely continued our strategic investment, offset in part by Future Ready savings. In Print, our results reflected the slower pace of market recovery and an incrementally aggressive pricing environment as our Japanese competitors continued to benefit from the weaker yen.
Overall, the market came in below expectations, particularly in China. Total print revenue was down 3% on a reported basis and 2% in constant currency. And while hardware units declined 2% year-over-year, total print market share increased both year-over-year and sequentially. And momentum in industrial graphics continued with supplies and services driving the fourth straight quarter of year-over-year revenue growth.
By Customer segment, Commercial revenue decreased 5% with units down 4%. And as mentioned, we felt the impact of market declines, most notably in China and competitive pricing. Consumer revenue returned to growth, increasing 2% on flat units with favorable mix offsetting pricing. Of note, hardware units grew 5% sequentially, driven by strength in consumer. And supplies revenue was down 2% nominally and 1% in constant currency, in line with our outlook. Print operating margin of 17.3% was down year-over-year, with headwinds from pricing and increased investments, not fully offset by savings from our Future Ready actions.
On our Future Ready Transformation Plan, we continue to drive greater effectiveness and efficiency across the company. For example, we're using generative AI capabilities to reduce customer call times in Workforce Solutions. And in our commercial organization, our move to more end-to-end processes is enabling much faster deal quotes for contractual customers and allowing customers to more easily buy and renew on hp.com. There is more to come as we accelerate and complete this program, particularly in Print, where we are driving further reductions across the core, including business consolidation, supply chain optimization, and reductions in platforms.
Now, let me move to cash flow and capital allocation. We generated more than $1.4 billion in cash from operations and $1.3 billion in free cash flow. We continue to improve our cash conversion cycle this quarter, driving inventory days down with seasonally higher volumes in Personal Systems, offset in part by an increase in strategic buys as we focused on reducing the near-term impact of rising commodity costs.
Lastly, we returned close to $870 million to shareholders through both share repurchase and dividends, and finished the quarter within our target leverage range. Just as a reminder, unless higher ROI opportunities arise and as long as our gross leverage ratio remained below two times, we expect to return approximately 100% of our free cash flow to our shareholders overtime.
Looking forward to the fourth quarter and our fiscal year-end, we will continue to navigate a dynamic environment. And have, therefore, modeled multiple scenarios based on several assumptions. In Personal Systems, we expect Q4 revenue to increase sequentially low-to-mid-single digits. We are expecting continued strength in commercial. But given the lingering softness in the consumer market, we are expecting less seasonal growth than we have seen historically. We anticipate Personal Systems operating margin to remain in the upper half of our long-term target range of 5% to 7% in Q4, as we were offset increased commodity costs through pricing and disciplined cost management, while continuing to invest in strategic priorities.
In Print, we see improving trends in the market, but the pace of recovery is slower than we expected with continued competitive pricing pressure. For Q4, we expect Print revenue to increase low to mid-single digits
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sequentially, driven by typical seasonal strength as well as strong momentum in our industrial business coming out of Drupa.
We expect supplies revenue in FY 2024 to decline low single digits, and we anticipate Q4 Print margins to be near the top of our 16% to 19% range, given seasonal strength and acceleration of Future Ready cost savings.
Taking all of these considerations into account, we are moderating our guide for Q4 and fiscal year 2024, and we are narrowing our non-GAAP EPS outlook range to $0.10, which is reflected in our updated outlook. We expect fourth quarter non-GAAP diluted net earnings per share to be in the range of $0.89 to $0.99. And fourth quarter GAAP diluted net earnings per share to be in the range of $0.74 to $0.84. For the full year, we now expect non- GAAP diluted net earnings per share to be in the range of $3.35 to $3.45. And FY 2024 GAAP diluted net earnings per share to be in the range of $2.62 to $2.72.
Lastly, we continue to expect free cash flow to be in the range of $3.1 billion to $3.6 billion for FY 2024. As a reminder, our free cash flow outlook includes approximately $300 million of restructuring cash outflows.
At this point, we want to open the lines for your questions. But before we do, I want to express my gratitude to my HP colleagues for their help in making my onboarding as smooth as possible. And in particular, I want to thank Tim Brown for his leadership in the interim and his continued help these past few weeks with me. Tim is also on the call with Enrique and me to help answer your questions.
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QUESTION AND ANSWER SECTION
Operator: Thank you. We will now begin the question-and-answer session. [Operator Instructions] And our first questioner today will be David Vogt with UBS. Your line is open.
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Andrew Spinola
Analyst, UBS Securities LLC
Q
Yes. Hi. This is Andrew for David. I wanted to ask about the Print margins in fiscal 2024. Can you disaggregate some of the pressure you saw in this quarter? What were the primary drivers? What were the bigger drivers? And why do you expect that to reverse next quarter? Is it entirely on the cost cuts from the Future Ready plan or are there other drivers that you're expecting to improve margins in Q4? Thanks.
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Karen L. Parkhill
Chief Financial Officer, HP, Inc.
A
Thanks for your question, Andrew. Our Q3 print margin was below our expectations, although I would note that supplies did come in as expected in the quarter. So, our margin was impacted by more aggressive pricing as we talked about as well as the challenging market environment, particularly in China. And that was driving unfavorable geographic mix. And against that environment, we took the opportunity to place hardware units that are profitable long term, but dilutive to the current overall margin rates. And despite the headwinds, we also maintained our investment in the key growth areas that are going to generate long-term value.
And then as we look ahead to Q4, we expect to be seasonally stronger on revenue. We're also as we talked about taking more aggressive actions to drive that margin improvement. We said we're accelerating our Future Ready Plan. We're driving further reduction across the core that includes business consolidation, reduction in
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platforms and supply chain optimization. And with all of this taken together, we're confident in our ability to deliver the print margins near the top end of our 16% to 19% target range.
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Andrew Spinola
Analyst, UBS Securities LLC
Thanks.
Q
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Operator: Our next question comes from the line of Samik Chatterjee with JPMorgan. Your line is open.
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Samik Chatterjee
Analyst, JPMorgan Securities LLC
Q
Hi. Thanks for taking my question. And I have a couple, if I can just start with maybe AI PCs, which you referred to in terms of the momentum you're seeing with customers and the launches that you've done. If you can share how you're seeing that flow through when you look at the segments between consumer PS and commercial, what are you seeing in terms of activity there? Where do you expect it will make a more material impact in the coming quarters? And how do you sort of see that feeding into maybe a bit of the recovery on the consumer PS side as well? Any thoughts on that would be appreciated. And then, I have a follow-up. Thank you.
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Enrique Lores
President, Chief Executive Officer & Director, HP, Inc.
A
Sure. Thank you. Let me take that question. So first of all, when we talk about consumer in AI PCs, if we use the IDC description, we had said that we expected sales to be around 10% during the second half, and we think we're going to be slightly above that number. So they are performing well. Where we really are also focused in what we call next-generation AI PC that we have just started to launch. We announced our first product with Qualcomm and with AMD only a few weeks ago, and shipments are beginning now. So we haven't seen a significant impact from those yet. The reaction has been positive. The experiences that we're able to generate are very compelling. We had an event with many of our software providers a few weeks ago in New York when we were able to display that. So the reaction is positive, but the impact on our result has been very, very small yet.
In terms of adoption, we think that in the very short term, adoption in consumer will be faster because adoption in commercial is always limited by the evaluation process that many of our customers have to go through, and those evaluation processes are only starting. So it's going to take some time until they have an impact in our results.
And in terms of projections that we have for the future, we maintain the projections that we have been sharing over the last quarter. We expect next-generation AI PCs to represent around 50% of shipment in 2027, three years after launch, and they drive an average selling price increase between 5%and 10%. This has been the projections we have been sharing before, and we are confident that we will deliver on those in the future.
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Samik Chatterjee
Analyst, JPMorgan Securities LLC
Q
Got it. Got it. Thanks for that. And if for my follow-up, I can just ask you on the Print business. I understand the sort of headwinds on the competitive landscape that you're calling out. But how should we think about what's the
- sort of what are you seeing in terms of market share play out, particularly as the competitive landscape sounds like it's tougher. Would you sort of look at it from a market share perspective and say the Japanese competitors are more competitive and you're giving up some share in certain segments? Or do you think it's more just the underlying market that's a challenge here relative to market share? Thank you.
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Enrique Lores
President, Chief Executive Officer & Director, HP, Inc.
A
Okay. Let me take this opportunity to share a bit more about what we are seeing on the print market, and then how do we project this going forward. As we said in the prepared remarks, clearly, the print market was challenged and we didn't see the recovery that we were expecting. But within that, we saw some signs of positive change. For example, we saw positive growth on the home space. The decline in the office category was lower than the declines we had seen in previous quarter. And as Karen said before, we have seen supplies performing as expected and especially usage is a good predictor of what is going to be happening in the future. This is why we think that the lower recovery is temporary, and we expect it to see changing going forward. The majority of it was in the office space, and this is really what drove it from a demand perspective.
From a pricing perspective, what we have seen is a continuation of what we have shared before. Many of our competitors are taking advantage of the weekend, and this is allowing them to be more aggressive from a price perspective. We have been working to reduce the cost structure of our products to be able to place profitable units. And this is what we did this quarter. We placed units. We hold our share. We grew share in the home space. And as we continue to drive cost, if we see the opportunity, we will continue to place profitable unit, which continues to be our goal.
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Operator: Next question comes from the line of Erik Woodring with Morgan Stanley. Your line is open.
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Erik W. Woodring
Analyst, Morgan Stanley & Co. LLC
Q
Hey, guys. Thanks so much for taking my questions. I have two as well. Maybe Enrique for you, something that you didn't necessarily allude to in depth in your prepared remarks on the PC side was the kind of commercial/enterprise recovery that we've been talking about for a few quarters. So can you maybe, one, just help us understand, as you look at consumer versus SMB versus large enterprises, kind of how you would characterize PC demand across each of those end markets?
And second to that, how does that influence your view that whether there is or is not a large commercial refresh cycle still in front of us, or is that behind us? Would just love to know where you think we are in that phase. And then, I have a follow-up. Thank you.
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Enrique Lores
President, Chief Executive Officer & Director, HP, Inc.
A
Sure. So let me go there. So I think what the market evolution and our results confirmed is that we have seen a recovery of the PC market. And this recovery is mostly driven by the commercial side of the business. Trying to provide some more specifics about your question, we saw market for enterprise growing close to 5%, government between 6% and 7%, SMB 3%, and education 1%. So we saw significant growth on the commercial space, especially in enterprise. And this is really supported by the trends that we have discussed before.
The installed base has been aging and the companies are seeing the need to refresh that. Windows 11 is starting to have an impact, and especially since Microsoft announced when they will stop supporting Windows 10. And it's not only we have seen in sales, we continue to see that in the funnel of new opportunities that we see that continues to grow and it is much stronger this year than it was last year. So we think that the refresh is still ahead of us. We have only started to see that, and we continue to believe that this opportunity is coming.
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HP Inc. published this content on 03 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 03, 2024 at 19:49:06 UTC.