Red Hat, Inc. (NYSE: RHT)
Red Hat Inc. announced financial results for its fiscal third-quarter after the closing bell on Monday. The Raleigh, NC-based open-source software firm topped Wall Street expectations on both the top and bottom lines.
However, the company said did not make any changes on its fiscal 2019 outlook due to the pending acquisition deal with International Business Machines Corp. (IBM).
In October, IBM agreed to acquire by Red Hat in a deal valued at $34 billion, making it one of the biggest acquisitions in the tech industry in recent years. Red Hat shareholders are expected to vote on the deal at a special meeting scheduled for January, 2019.
Red Hat acquired a tech firm known as NooBaa last week, in a move aimed at boosting the demand of its hybrid cloud architecture and cloud-enabling technologies. RHT stock hit $176 in the final minutes of regular trading on Monday, representing an increase of 37% in the last twelve months. The stock has gained more than 46% this year, while the S&P 500 index has lost nearly 5%.
Red Hat posted third-quarter net income of $94.45 million, or $0.51 per share, compared with $101.61 million, or $0.55 per share, in the same three months last year. Earnings adjusted for non-recurring items came to $175.31 million, or $0.96 per share for the quarter, ahead of analysts’ views.
Revenues for the quarter totaled to $846.79 million, an increase of rose 13.2% from $747.98 million in Q3 of the previous year, but below estimates of Wall Street analysts. Subscription revenue for the quarter grew 13% on a year-over-year basis to $741 million and accounted for 87% of total revenue.
Red Hat CEO Comments
“Adoption of Red Hat’s technologies that enable customers to build and deploy applications more securely and consistently across hybrid and multi-cloud environments continued to drive our growth in Q3,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat.
“For instance, our Certified Cloud and Service Providers (CCSP) program reached the $300 million annualized run-rate milestone in Q3 with 25% year-over-year growth of Red Hat Enterprise Linux on-demand in the public clouds. In addition, we continue to experience strong customer growth in Red Hat OpenShift, our enterprise Kubernetes platform, and Red Hat Ansible Automation, both of which added more than 100 customers in Q3.”
Red Hat, Inc. Company Profile
Red Hat is a provider of open source, enterprise IT solutions. The Company provides cloud, Linux, management, middleware, storage, and virtualization technologies.
It also offers support, training, and consulting services, as well as infrastructure-related solutions, such as Red Hat Enterprise Linux, Red Hat Gluster Storage, Red Hat Satellite, Red Hat OpenShift, and Red Hat OpenStack Platform. – Craft