Red Hat smashes expectations with solid Q1 earnings

Red Hat smashes expectations with solid Q1 earnings

Summary: Red Hat turns a revenue of $314.7 million, an increase of 19 percent from the same time last year.

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TOPICS: Linux, Open Source
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Wall Street analysts predicted Red Hat would continue to turn out another positive quarter, and the open source giant did just that on Wednesday afternoon.

Red Hat reported a net income of $37.5 million, or 19 cents a share (statement). Non-GAAP earnings were 30 cents a share on a revenue of $314.7 million, an increase of 19 percent from the same time last year.

Wall Street was expecting Red Hat to report first quarter earnings of 19 cents a share on revenue of $310.9 million.

CEO Jim Whitehurst commented in prepared remarks:

Our first quarter results represented a strong start to our fiscal 2013. Red Hat’s compelling value proposition and innovative, open source technologies continued to drive our financial success and market share gains.

CFO Charlie Peters added in the report that Red Hat is "continuing to invest in important growth initiatives in markets such as virtualization, cloud computing and storage.”

Earlier on Wednesday, Red Hat introduced JBoss Data Grid 6, an in-memory data grid solution, and JBoss Enterprise Application Platform 6 with a new cloud-ready architecture.

The Enterprise Application Platform is designed as a solution for simpifying and streamlining building enterprise applications and moving them to the cloud, while JBoss Data Grid 6 focuses on scaling application development for better big data management. Both solutions are available now.

By the numbers:

  • Subscription revenue for the quarter was $272.6 million, up 21 percent year-over-year.
  • Non-GAAP net income for the quarter was $58.0 million.
  • Operating cash flow was $124.4 million compared to $90.2 million in Q1 2011.
  • Red Hat repurchased approximately $30 million, or approximately 550,000 shares, of common stock during the first quarter.

Related:

Topics: Linux, Open Source

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12 comments
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  • Red Hat smashes expectations with solid Q1 earnings

    Kudos Red Hat.
    daikon
  • You got it wrong, again...

    Red hat stock plummeted 11% after hours because wall street estimates were not met.
    Get your news up to date to be credible.
    e_ecruz
    • Stock plummetted because

      Wall street expectations on growth WERE exceeded:
      "Excluding stock compensation, amortization costs and other one-time items, Red Hat earned 30 cents per share, compared with 24 cents per share in last year's first quarter. That beat analysts' average forecast for adjusted earnings of 27 cents per share, according to FactSet.
      Its reported revenue ??? $314.7 million ??? also topped analysts' average estimate of $310.8 million. " AP
      The reason it plummeted is lower growth on billings (16% vs 18%).
      I hope for your own sake you are not an investor.
      Rachel is providing good data. You are not.
      kirovs@...
  • There is your last news update...

    Red Hat Inc. (NYSE:RHT) shares plummeted more than 11 percent in the after-hours. The company reported a fiscal first-quarter profit of $37.5 million (19 cents per share), compared to $32.5 million (17 cents per share) a year earlier. However, Red Hat reported billings of $310 million for the quarter, below estimates of $319 million.
    e_ecruz
  • Too shallow

    You tech writers and the geeks in here, think that you all live in a cocoon, but you don't.
    You need to read up on the financial press a little more in the future, they have the consumer pulse more accurate than any tech writer will.

    Tech writers, unlike real journalists, fall in love with companies and devices, which is the cause that they are so wrong in their predictions so often. Just get a broader news and opinion circle. You might end up being more accurate, but I doubt if accurate is what the geeks look for on these blogs.
    e_ecruz
    • Don't let reality get in the way of the message we are trying to spread

      I mean why didnt they write a story about how Oracle's shares jumped up and stayed up?

      But seriously, I think Wall Street is a sham and their estimates are just an opinion. Red Hat is obviously doing a lot of things right and who knows, the stock may jump up again tomorrow.
      otaddy
    • All the best to Red Hat (even with that UEFI-decision)

      "You tech writers and the geeks in here, think that you all live in a cocoon, but you don't."


      There's lots of truth in your ironic comment. Geeks and hippies should learn that business is not so ugly and evil action of mankind as some believes. And Red Hat is fine example how Linux/Open Source can and must be business also. It's good business when in good hands. Hope they are doing fine also in future there in NC.

      Hope their UEFI-decision will not harm Linux (99$ is quite a lot of money, isn't it?)
      Matsi66
  • Nice

    Red hat is very good and wishes to it.

    http://www.drupal-web-designers.com
    drupal web development
  • Good news for its investors.

    This is a very promising scenario for the investors, those who are buying Red Hat stock are buying for the long term. Red Hat has come a long way and now are the most trusted brand that makes the cloud work.

    - Sara
    http://www.hiredotnetprogrammers.com/
    Sara_Parker23
  • bizar

    It's very bizar how small a company Redhat really is and yet it is one of the most important players in the Enterprise IT industry.
    It's not Redhat that's making money on redhat, it's the rest of the industry, particularly IBM that's having the last laugh.
    kleykenb
    • I am sure

      You have a company that has well over 1B in revenue per year so you can bash small, unimportant companies that are practically not making money at all. Because after all what is a billion to people like you?
      kirovs@...
  • This is what should be done with Linux

    Another positive report from a company who really knows where Linux could be successful. Unlike Ubuntu and others who never really focused on where Linux could be made popular. Red Hat is a great example of seeing where it could be used and building support around it. Plus they make money doing it.
    jscott418-22447200638980614791982928182376