Red Hat Q3 Earnings Beat Estimates, Revenues Up Y/Y

Red Hat Inc. (RHT - Free Report) reported non-GAAP earnings of 96 cents per share in third-quarter fiscal 2019, comfortably surpassing the Zacks Consensus Estimate of 87 cents. The figure also increased 31.5% on a year-over-year basis.

Revenues increased 13.2% year over year to $846.8 million, primarily driven by strong demand for hybrid cloud technology solutions as well as aggressive cross-selling. However, the figure lagged the Zacks Consensus Estimate of $854 million.

Revenues, adjusted for currency impact, increased 15.3% year over year to $862.3 million.

Americas; Europe, Middle East & Africa (EMEA); and Asia-Pacific (APAC) revenues increased 11.8%, 14.4% and 17.8%, respectively. After adjusting for currency impact, Americas, EMEA and APAC revenues increased 13.1%, 17.5% and 21.6%, respectively.

Almost 62.3% of the bookings came from Americas, 23.5% from EMEA and 14.3% from APAC. Additionally, total backlog grew 22% from the year-ago quarter to $3.5 billion.

Red Hat, Inc. Price, Consensus and EPS Surprise

 

Red Hat, Inc. Price, Consensus and EPS Surprise | Red Hat, Inc. Quote

Quarter Details

Subscription revenues (87.5% of revenues) increased 12.8% year over year to $740.7 million. When adjusted for currency impact, revenues increased 14.6% to $752.5 million.

Infrastructure-related subscription revenues increased 7.9% from the year-ago quarter to $534.1 million. After adjusting for currency impact, revenues increased 9.4% to $541.5 million. Moreover, Application Development-related and other emerging technology subscription revenues increased 27.6% from the year-ago quarter to $206.6 million. After adjusting for currency impact, revenues increased 30.3% to $210.9 million.

Training & services revenues (12.5% of revenues) increased 16.4% from the year-ago quarter to $106 million. When adjusted for currency impact, revenues increased 20.5% to $109.8 million.

Red Hat inked 100 deals worth more than $1 million in the quarter. Moreover, the company’s Certified Cloud and Service Providers (CCSP) program reached an annualized run-rate of $300 million, recording 25% year-over-year growth of “Red Hat Enterprise Linux on-demand in the public clouds.” Further, Red Hat OpenShift and Red Hat Ansible Automation experienced strong customer growth, adding more than 100 customers in the quarter.

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