Red Hat subscription revenue continues to climb amid positive Q2 earnings

Nevertheless, Red Hat shares started to tumble by nearly two percent in after hours trading.

While Oracle stole most of the show after the closing bell on Thursday, Red Hat quietly posted better-than-expected second quarter earnings.

The open source company reported a net income of $47 million, or 25 per share (statement).

Non-GAAP earnings were 41 cents per share on a revenue of $446 million, up 19 percent year-over-year.

Subscription revenue on its own was also up by 19 percent annually to $389 million for the three-month period.

Wall Street was looking for earnings of 38 cents per share with revenue of $435 million.

Nevertheless, Red Hat shares still started to tumble by nearly two percent in after hours trading.

Keeping a positive spin on things in prepared remarks, Red Hat CEO Jim Whitehurst pinned Q2's successes to Red Hat's own open stack as the enterprise IT space continues to shift toward the hybrid cloud.

"Broad demand for open source technologies, combined with Red Hat's value proposition and market leadership position, has helped to drive organic revenue growth in the mid-to-high teens for the last 10 quarters," Whitehurst boasted.

For the current quarter, Wall Street expects Red Hat to deliver earnings of 41 cents per share and revenue of $457.77 million.

Earlier on Thursday , Red Hat announced plans to acquire FeedHenry, an enterprise mobile application platform provider, for approximately $82 million.

FeedHenry's cloud-based mobile app platform was designed to help enterprises support mobile apps at scale.

The deal broadens Red Hat's foothold in enterprise mobile app development as smartphone usage continues to grow in the workplace.

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