Red Hat revenue jumps to $847m in third quarter
Open source provider, Red Hat, saw revenue jump 13% to $847 million during the third quarter ending 30 November 2018.
Subscription revenue for the quarter was $741 million, also up 13%. Subscription revenue from infrastructure-related offerings for the quarter was $534 million, an increase of 8% year-on-year, and subscription revenue from application development-related and other emerging technology offerings for the quarter was $207 million, an increase of 28%.
The open source provider’s Certified Cloud & Service Providers (CCSP) programme reached the $300 million annualised run-rate milestone in the third quarter, with 25% year-on-year growth of Red Hat Enterprise Linux on-demand in public clouds.
In addition, Red Hat CEO and president Jim Whitehurst said the company continued to experience strong customer growth in Red Hat OpenShift, its enterprise Kubernetes platform, and Red Hat Ansible Automation, both of which added more than 100 customers during the third quarter.
Red Hat CFO and executive vice president Eric Shander said: “Our total backlog grew 22% year-on-year to approximately $3.5 billion. Strong renewals of our largest deals also helped drive these results with all of our top 25 deals renewing at an upsell rate above 120%.”
Operating income was down 8% to $109 million, and net income also took a hit from $102 million a year ago, down to $94 million.
A special meeting has been set on 16 January for Red Hat stockholders to consider and vote on IBM’s proposed acquisition of the company.
On 28 October, IBM and Red hat announced an agreement and plan of merger which would see IBM acquire Red Hat for $190 per share in an all-cash transaction – valuing the deal at $34 billion.
“The acquisition of Red Hat is a game-changer,” Ginni Rometty, CEO of IBM, said at the time. “It changes everything about the cloud market.
“IBM will become the world’s no.1 hybrid cloud provider, offering companies the only open cloud solution that will unlock the full value of the cloud for their businesses.
IDG News Service