Red Hat increases subscriptions and services revenue
Q2 revenue grows 28% to $281.3 million
Red Hat has announced growth in revenues across the company for its Q2 FY12, with revenue up 28% year-on-year to $281.3 million.
The company, which is the largest open source business in the world, reported subscription and support revenues up 28% to $238.2 million for the quarter ended 31st August, while training and services revenue was up 26% to $43 million. Income for the second quarter was $52.5 million.
Jim Whitehurst, president and chief executive officer of Red Hat said: "The combination of strong sales execution and customer demand led to second quarter revenue that was above our guidance and represented our fourth straight quarter of accelerating revenue growth. We continued to win and strengthen relationships with enterprise customers who partner with Red Hat to reduce costs while modernizing their IT infrastructure to enable applications to run on bare metal, virtualization and in the cloud. Based on the strong first half results, we believe Red Hat remains well positioned to finish fiscal 2012 as the first billion dollar open source software vendor."
In an earnings call to analysts, the company also highlighted it had a strong rate of subscription renewals from enterprise customers, and that customers on average increased the amount of their subscription at renewal.
"Our investments in sales and R&D continued to pay off, producing market share gains, higher revenue and 30% year-over-year billings growth," said Charlie Peters, executive vice president and chief financial officer of Red Hat. "Our productivity continued to improve as evidenced by non-GAAP operating income growth of 41% and cash flow growth of 20% in Q2. Moreover, year-to-date non-GAAP operating income grew 35% and operating cash flow grew 34% compared to the first half of last fiscal year."