Red Hat earns $723mn in revenue in Q2, raises forecast

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Open Source Solutions leader Red Hat registered $723 million in revenue — up 21 per cent year-over-year — in the second quarter of fiscal year 2018 that ended August 31, the company announced on Tuesday.

The open-source software firm reported a net income of $97 million or 53 cents per share.

The company has raised revenue forecast for the third quarter to reach approximately $730 million to $737 million.

Strong demand for its technologies that enable Hybrid Cloud computing has contributed to accelerated revenue growth in the first half of the fiscal year.

“In the second quarter, we delivered total revenue growth of 21 per cent, fueled by over 40 per cent growth in our Application Development-related and other emerging technology revenue,” said Jim Whitehurst, President and CEO, Red Hat.

IT organisations continued to turn to Red Hat as a strategic technology partner to help them transform and modernize their applications and infrastructure for the Hybrid Cloud.

“Given our first half results and ongoing momentum, we are increasing our outlook for the full year,” added Eric Shander, Executive Vice President and Chief Financial Officer, Red Hat.

Subscription revenue for the quarter was $638 million, up 20 per cent year-over-year. Subscription revenue in the quarter was 88 per cent of the total revenue.

The bulk of subscription revenue came from infrastructure-related products while application-development related products accounted for the rest.

North Carolina-based Red Hat provides open-source software products, including the popular Linux, to the enterprise community.