HP Inc.

Good day, everyone, and welcome to the fourth quarter 2021 HP, Inc. Earnings Conference Call. My name is Gary, and I'll be your conference moderator for today's call. At this time, all participants will be in a listen-only mode. We will be facilitating a question and answer session toward the end of the conference. Should you need assistance during the call, please signal a conference specialist by pressing the star key followed by zero. As a reminder, This conference is being recorded for replay purposes. I would now like to turn the call over to Orit Keenan-Neon, Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to HP's four-quarter 2021 earnings conference call. With me today are Enrique Lores, HP's President and Chief Executive Officer, and Marie Myers, HP's Chief Financial Officer. Before handing the call over to Enrique, Let me remind you that this call is being webcast. A replay of this webcast will be made available on our website shortly after the call for approximately one year. We posted the earnings release and the accompanying slide presentation on our investor relation webpage 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 risk, uncertainties, and assumptions. For a discussion of some of those risks, uncertainties, and assumptions, please refer to HP's SEC reports, including our 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 Form 10-K for the fiscal year ended October 31st, 2021, and HP's other SEC filings. During this webcast, unless otherwise specifically noted, all comparisons are year-over-year comparisons with the corresponding year-ago period. 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.

Thanks, Orit, and thank you all for joining today's call. At our security analyst meeting last month, we shared our plans to continue building a stronger HP, one that delivers sustained revenue, operating profit, EPS, and free cash flow growth. This quarter's results reflect our continued momentum against these plans, and they give us great confidence in our future. Let me talk through the details. In Q4, revenue grew 9% to $16.7 billion. Non-GAAP EPS grew 52% to 94%. And we generated more than $900 million of free cash flow while returning $2 billion to shareholders through share repurchases and dividends. Our Q4 results are a great finish to an exceptional year. For the full year, We grew revenue 12% to $63.5 billion and generated $1.7 billion of incremental non-GAAP operating profit. Non-GAAP EPS grew 66%. This means that we exceeded our value creation plan target for non-GAAP operating profit and EPS a full year ahead of plan. And we returned a record $7.2 billion to shareholders while continuing to invest in strategic growth opportunities across the business. Our Q4 and full-year performance shows a company on its front foot and hitting its stride. Long-term secular trends such as hybrid play to our competitive strength. Our leadership across our market and the innovation agenda we are driving are enabling us to turn these trends into tailwinds. We are making organic and inorganic investments to drive profitable growth. And we are accelerating our transformation, building new digital capabilities, while also reducing structural costs and driving efficiency. The progress we are making against our priorities is creating a more growth-oriented portfolio. At our analyst day, I shared that we expect our five key growth areas to grow double digits and generate over $10 billion in revenue in fiscal 22. These businesses collectively grew 12% this quarter. This includes more than 30% growth for our instant ink business, as well as more than 20% growth for our industrial graphics portfolio. We see our key growth areas becoming a bigger part of overall revenue and profit mix moving forward. We are driving this growth even as we continue to navigate a complex and dynamic operational environment that includes robust demand, and persistent supply constraints. The actions we have been taking to mitigate industry-wide headwinds are paying off. There is no quick fix, but we are strengthening our operational execution and making continued progress quarter by quarter. And I just want to say how proud I am of the way our teams are stepping up. It has not been easy. But the challenges we have faced have not deterred us from driving our business forward. And the fact that we delivered double digit revenue and profit growth for the year gives us confidence as we enter 2022. Let me now talk about the strengths we see across each of our business units. In personal systems, there continues to be very strong demand. Year's revenue and operating profit each grew double digits in Q4. And our discipline execution and pricing strategy allowed us to effectively manage cost and component headwinds. A big part of our success is the improved mix we are driving, given our leadership in the commercial PC market. As more offices reopened, we led a shift toward Windows-based commercial products, where we saw the strongest demand and highest profitability. We continue to see a significantly elevated order backlog. As I shared last month, we expect component shortages, particularly in IECs, to persist into at least the first half of 2022. The operational actions we outlined in our Q3 call are generating positive results. We continue to increase our direct engagement with Tier 2 and Tier 3 suppliers. We have expanded long-term agreements to secure capacity. And our digital transformation initiatives are enabling greater real-time visibility to optimize our speed, agility, and mix. This work remains a daily priority, and we expect our trajectory to continue to improve. We are also creating important innovation as we design for all things hybrid. This includes a new lineup of Windows 11 devices that enable premium computing experiences for work and home. We are also expanding into valuable adjacencies. Last quarter, we introduced HP Presence, the world's most advanced video conferencing system. This is a large opportunity that will continue to grow as our digital and physical worlds converge. Seven out of ten companies are already investing in technologies that improve hybrid work experience for their employees. HP Presence combines our hardware, software, imaging and peripheral capabilities to create a more immersive experience so that distributed teams can truly feel they are in the same room, even if they are not. You will see us continuing to innovate and expand our presence in the growing hybrid collaboration space. We also delivered another quarter of double digit device as a service revenue growth. This included the launch of new digital services to help commercial customers simplify the complexity of hybrid IT environments. And following the close of our Teradici acquisition, we launched a lineup of new Z by HP Teradici and NVIDIA Omniverse subscription offers to enable high-performance remote collaboration. Turning to print, we grew revenue 1% in the quarter. This was primarily driven by our disciplined pricing strategy, as well as our continued growth in services and subscriptions, which offset expected volume declines driven by limited supply. Like others in the industry, we continue to operate in a supply-constrained environment, driven by COVID-related disruptions and broader logistics issues. Against this backdrop, demand for our print hardware and supplies remains strong. The fact is we had more hardware orders that we could fulfill in the quarter. And as we said last month, We expect this to impact print growth in fiscal year 22. But this is not stopping us from advancing our strategic priorities. We continue to grow our HP Plus portfolio globally, including a rollout to our Envy Inspire 7000 series that is designed for families working, learning, and creating new memories from home. Importantly, it is built with sustainability in mind and made from over 45% recycled plastic content. We are also growing our digital services to enable hybrid office printing. A great example is this quarter's launch of HP Managed Print Flex, a new cloud-first NPS subscription plan for hybrid work environments. In Q4, we drove double-digit growth of NPS revenue and total contract value. And this supports our workforce solutions momentum. We're increasingly integrating our offerings across print and personal systems to meet new customer needs and unlock new growth opportunities. Our recently launched HP Work from Home service is a great example of how we are leveraging our diverse portfolio to win in the hybrid office. As I mentioned earlier, we are also driving industrial graphics and 3D printing growth In industrial graphics, we drove double-digit revenue growth in the quarter and have built a healthy backlog of industrial presses. This continues the positive recovery trend from prior quarters. We also continue to see a mixed shift towards more productive industrial presses with significant growth in labels and packaging. And in 3D, our focus on high-value end-to-end applications is paving the way for entirely new growth businesses. Our molded fiber, footwear, and orthotics initiatives are on track. Our progress against our strategic priorities is also driving strong cash flow, and we continue to be disciplined stewards of capital. We have a robust returns-based approach that we are applying to every aspect of our capital allocations. We will continue to invest in areas where we see growth opportunities while continuing to return capital to our shareholders. We believe our shares remain undervalued, and we are committed to aggressive repurchase levels of at least $4 billion in FY22. We also expect M&A will continue to play an important role. Specifically, We plan to pursue deals that accelerate our strategies and drive profitable growth. And we are making ongoing progress against our sustainable impact agenda. ESG is a driver of long-term value creation for all stakeholders, and we continue to pursue an ambitious agenda. The latest example is our expanded partnership with World Wildlife Fund. We are working to restore, protect and improve the management of nearly 1 million acres of forest landscapes. This supports our focus on making every page printed forest positive. To sum up, our portfolio is innovative and resilient. Our strategy is driving sustained revenue, operating profit, EPS and free cash flow growth. We are returning highly attractive levels of capital to shareholders, and we are confident in the fiscal year 2022 guidance that we shared at our analyst day. We are entering the new year from a position of great strength, and I look forward to continuing to share our progress. Let me now turn the call over to Marie, who will take you through the details of the quarter and our fiscal Q1 outlook. Marie, over to you.