Red Hat delivered better-than-expected fourth quarter financial results on Monday bolstered by continued growth in subscription revenue.
The open-source software company reported a net loss of $12.5 million, or seven cents per share. As with other earnings reports this quarter, Red Hat attributes the unusual net loss to recent US tax reform.
Meantime, Red Hat said non-GAAP earnings for Q4 were 91 cents per share on revenue of $772 million, up 23 percent year over year.
Wall Street was looking for earnings of 81 cents per share with $761.6 million in revenue.
Bolstering Red Hat's solid quarter was subscription revenue growth of 22 percent year over year to $683 million. The bulk of subscription revenue came from infrastructure-related products, while application-development related technologies accounted for the rest. Red Hat said application-development revenue was up 39 percent above last year.
"Red Hat continued to expand its position with customers as a trusted adviser and strategic technology partner, enabling initiatives focused on digital transformation and cloud computing," said Red Hat CEO Jim Whitehurst. "This position helped drive a 50 percent year-over-year increase in the number of deals over $1 million during the fourth quarter, as we benefited from strong cross selling and high renewal rates within our top deals."
For the current quarter, Red Hat expects revenue between $800 million to $810 million with earnings at 68 cents per share. Analysts expect revenue of $795 million with earnings of 72 cents a share.
Shares of Red Hat were up around five percent in after hours trading.