Red Hat sees Q1 revenue growth of 17%
Vendor sees revenue of $424m in first quarter of fiscal year 2015
In its first-quarter earnings report released today, Red Hat posted Q1 2014 revenue of $424m, an increase of 17% on the same period last year. Of this, subscription revenue for the quarter was $372m, up 18% year-over-year, Red Hat said.
"Our strong start to FY15 is a direct result of our ability to consistently deliver meaningful value to enterprise customers," said Jim Whitehurst, president and CEO of Red Hat.
"We now count 94% of the Fortune 500 and 90% of the Fortune Global 500 as customers. These are some of the most sophisticated IT organisations in the world, and many continue to increase their purchases from Red Hat to modernise their IT infrastructure with cloud-enabling technologies. As evidence of this demand and Red Hat's strong market position, we closed a record number of first quarter deals of $1m or more."
GAAP operating income for the first quarter was $51m, down 10% year-over-year, though non-GAAP operating income for the period was up 2% at $88m, Red Hat said. The GAAP operating margin was 12% and non-GAAP operating margin 20.8%.
The vendor's operating cash flow was $165m for the first quarter, as compared to $142 million in the year-ago quarter. At quarter end, the company's total deferred revenue balance was $1.27bn, an increase of 20% year-over-year. Total cash, cash equivalents and investments as of May 31, 2014 was $1.4bn after repurchasing approximately $80m, or approximately 1.6 million shares, of common stock in the first quarter.
"Our global sales organisation continued to execute at a high level during Q1, leading to double-digit growth in every region," said Charlie Peters, the firm's CFO.
"This execution, combined with the cross-selling of our expanded portfolio of innovative technologies, contributed to organic subscription revenue growth of 18% and operating cash flow growth of 16%, all of which were above the high-end of our guidance."