HP Revenue Increases 9% in Q1 2022 Amid “Significant Year-Over-Year Growth” in 3D Printing Revenue

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Multinational printing company HP (HPQ) reported a 9% increase in revenue in its first-quarter 2022 financial statements, driven in part by growing demand for its 3D printing offering.

HP’s first quarter 2022 results show that in the three months to January 31, 2022, it generated $17 billion, 9% more than the $15.6 billion it brought in in the first quarter. quarter of 2021. According to the company’s CEO, Enrique Lores, this additional increase in revenue was thanks to the strong performance of its gaming, industrial graphics and 3D printing portfolio, the latter of which recorded “significant growth in year after year”.

“We once again delivered strong top line and bottom line results with record revenues driven by strong demand and our leadership in hybrid,” Lores said on the earnings call. HP. “Our first quarter performance was particularly strong in our key growth areas which collectively delivered double-digit growth, including Gaming, Peripherals, Workforce Solutions, Consumer Subscriptions, Industrial Graphics and 3D.”

HP’s 3D printing revenue grew significantly in the first quarter of 2022, according to its CEO Enrique Lores. Photo via 3DFactory incubator.

HP’s first quarter 2022 financial results

Broadly speaking, HP presents its financial statements in two key segments: personal systems and printing, the first including all revenues generated by its workstations, laptops and desktops, and the second covering revenues from its supplies business, in addition to those provided by its offers of consumer or commercial equipment.

As usual, Personal Systems was HP’s highest earning and fastest growing division in Q1 2022, bringing in $12.2 billion, 15% more than the $10.6 billion it managed to bring in. generate in the first quarter of 2021. On the company’s earnings call, Lores attributed the success, which saw the segment break its revenue record, to a pricing strategy and disciplined execution that enabled it to manage parts and cost headwinds.

In contrast, HP’s Printing arm, which according to its Q1 2022 slideshow also covers its ‘3D Printing and Digital Manufacturing’ portfolio, actually brought in $200 million less than in Q1 2021. For this decline, Lores pointed to “industry-wide supply chain challenges,” although he added that this hasn’t stopped his 3D printing revenue growth over the same period. , nor derails HP’s “strategy of creating end-to-end, high-value applications” for its Multi Jet Fusion (MJF).

Revenue ($) Q1 2021 Q1 2022 Difference (%) Q1 2020 Q1 2022 Difference (%)
Personal systems 10.6 billion 12.2 billion +15 9.9 billion 12.2 billion +23
Impression 5 billion 4.8 billion -4 4.7 billion 4.8 billion +2
Total 15.6 billion 17 billion +9 14.6 billion 17 billion +21

Identification of new MJF applications

HP doesn’t directly report on its 3D printing finances, but it did reveal that its MJF machines have now produced over 120 million parts, and there’s evidence to suggest where at least some of them are finding new applications. .

At the end of the first quarter of 2022, grocery delivery company Ocado revealed that it had started 3D printing picking and packing robot parts, for deployment in some of its distribution centers. By additively manufacturing half of the components of its new 600-series robots, MJF expects to be able to make them lighter, cheaper to manufacture and more efficient, in a way that could generate operational savings.

During the quarter, HP also unveiled a partnership with L’Oreal, which saw the companies collaborate to explore entirely new cosmetics-related applications. The companies have achieved this in particular by developing personalized adjustable washers which, since their introduction, have allowed L’Oréal to transfer, fill and label products more flexibly while reaping considerable time savings.

Following the success of their initial collaboration, the companies reportedly continued to research other potential MJF applications in L’Oréal’s production flow and came up with new print textures as well as lattice packaging, innovations they have developed alongside the Alternative and the Atomic. Energy Commission.

HP has since chosen to delve even deeper into the world of product packaging, acquiring paper-based bottle specialist Choose Packaging in February 2022. At the time, HP said the purchase and integrating the business into its customization and 3D printing division, which already hosts its molded fiber tooling offering, would allow it to address the broader packaging market, and during its call for the first quarter of 2022 results, Lores highlighted the green potential of the deal going forward.

“To choose [Packaging] invented the world’s only commercially available plastic-free paper bottle, and they work with many global brands to bring their offerings to market, including big companies like Henkel,” Lores added on the earnings call. ‘business. “This acquisition complements our molded fiber solution and positions HP well in the $10 billion fiber-based sustainable packaging industry.”

“There are over 150 million tonnes of single-use plastics produced each year, and we intend to revolutionize this market with 100% plastic-free fiber-based packaging.”

Choose the current line of biodegradable bottles from Packaging.
Choose the current line of biodegradable bottles from Packaging. Photo via HP.

HP “in compliance” with US sanctions

Lores also took the opportunity of HP’s earnings call to announce that the company would “comply” with sanctions recently approved by the US administration. As a result, the company suspended shipments to Russia and called for the “restoration of peace and stability in the region”, citing the current well-being of its people, their families and its customers and partners as being his “main concern.”

Due to the sanctions that have been imposed on Russia, the very fluid nature of how events unfold in Ukraine and broader supply chain issues, Lores added that it is difficult to provide indications on the year to come and that it “models several scenarios”. but the former is now likely to impact its revenue prospects.

“In the second quarter, we expect a negative impact on our revenue and results due to the sanctions that have been imposed,” Lores explained during the call. “In total, net of mitigations, we factored an adverse effect of $0.02 to $0.03 on EPS into our second quarter guidance. For the second half of 2022, the big ramifications of the situation in Europe and beyond are uncertain and we are monitoring this closely.”

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The featured image shows a group of HP Jet Fusion 5210 3D printers. Image via Weerg.

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