Red Hat’s latest earnings report topped Wall Street analysts expectations in both revenue – by nearly $10 million – and earnings per share – 34 cents rather than 33 cents as projected.
Shares immediately jumped nearly 4 percent in after-hours trading.
Financial news website Seeking Alpha provided a quick summary of the Red Hat (NYSE: RHT) financial update.
Earlier today, Red Hat announced the $95 million acquisition of eNovance, a Paris-based “cloud” computing technology firm.
- WRAL TechWire Insider exclusive: Red Hat executives discuss why latest acquisition was made/
“Our global sales organization continued to execute at a high level during Q1, leading to double digit growth in every region,” said Chief Financial Officer Charlie Peters in a statement.
“This execution, combined with the cross-selling of our expanded portfolio of innovative technologies, contributed to organic subscription revenue growth of 18% and operating cash flow growth of 16%, all of which were above the high-end of our guidance.”
The figures were through May 31, the end of the first quarter in Red Hat’s fiscal 2015 year.
Revenue surged to $424 million, up 17 percent from a year ago.
Red Hat also noted:
- First quarter subscription revenue of $372 million, up 18% year-over-year
- First quarter operating cash flow of $165 million, up 16% year-over-year
“Our strong start to FY15 is a direct result of our ability to consistently deliver meaningful value to enterprise customers,” said Chief Executive Officer Jim Whitehurst.
“We now count 94% of the Fortune 500 and 90% of the Fortune Global 500 as customers. These are some of the most sophisticated IT organizations in the world, and many continue to increase their purchases from Red Hat to modernize their IT infrastructure with cloud enabling technologies. As evidence of this demand and Red Hats strong market position, we closed a record number of first quarter deals of a million dollars or more.”
