Red Hat beats estimates; Q4, fiscal 2014 revenue both climb 15 percent
Red Hat reported its fourth quarter and full fiscal year earnings after the bell on Thursday.
The open source giant reported a Q4 net income of $45 million, or 24 cents per share (statement). Those results are down slightly sequentially, but better than estimates not to mention earnings during the year-ago quarter.
Non-GAAP earnings were 39 cents per share on a revenue of $400 million, an increase of 15 percent annually.
Wall Street was looking for earnings of 37 cents per share matched by revenue of $398.92 million.
For the 2014 fiscal year overall, Red Hat posted revenue of $1.53 billion, also up 15 percent year-over-year, with non-GAAP earnings of $1.49 per share.
Subscription figures were also on the upswing by 16 percent annually across the board. Final subscription revenue tallies rang up to $351 million for the fourth quarter and then $1.34 billion for the year.
Red Hat CEO Jim Whitehurst reflected on the positive outcome in prepared remarks:
The fourth quarter was a strong finish to fiscal 2014, and it was highlighted by a record number of deals over $1 million and 24% growth in our billings proxy to $565 million. Continued strong demand for Red Hat’s technology portfolio drove strong growth in our core platform and application development technologies during the fourth quarter. In addition, our cross-selling efforts resulted in early wins for our emerging technologies, which address top CIO priorities that are driving the evolution of enterprise computing.
For the current quarter, Wall Street expects Red Hat to return with earnings of 38 cents per share on a revenue of $415.90 million.