Red Hat published its first quarter financial results Tuesday, beating market expectations and raising its fiscal 2018 full-year outlook.
The open-source software distributor posted a non-GAAP net income of $102 million, or 56 cents per share, compared to 50 cents per share a year prior. Revenue for the quarter came to $677 million, up 20 percent year-over-year in constant currency.
Wall Street was looking for earnings of 53 cents per share on revenue of $648 million.
Subscription revenue for the quarter was $597 million, up 20 percent year-over-year measured in constant currency. Subscription revenue in Q1 accounted for 88 percent of total revenue.
More specifically, subscription revenue from infrastructure-related offerings for the quarter was $458 million, an increase of 14 percent in constant currency year-over-year. Subscription revenue from Application Development-related and other emerging technologies offerings for the quarter was $139 million, an increase of 42 percent in constant currency year-over-year.
“We continued to benefit from our ability to deliver important foundational and cloud enabling technologies, which help our customers to modernize and manage their infrastructure and application development platforms for the hybrid cloud,” Red Hat CEO Jim Whitehurst said in a statement.
CFO Eric Shander credited the strong quarter to robust global demand and increased commitments from the company’s largest customers. “The combination of our strong first quarter results, business momentum and solid execution by Red Hat associates has enabled us to increase our full year revenue outlook,” he said.
For Q2, Red Hat said it expects to post non-GAAP EPS of 67 cents, assuming 181 million fully diluted shares outstanding, on revenue between $695 million and $702 million, roughly.
For the full year, non-GAAP EPS is expected to be approximately $2.66 to $2.70, assuming 180 million fully diluted shares outstanding. Revenue is expected to fall roughly between $2.785 billion and $2.825 billion.
More Tech Earnings
Dell Technologies Q1 highlights solid PC, server demand, but higher component costs
Okta beats expectations for Q1 2018
Workday Q1 tops estimates
VMware beats Q1 expectations
Palo Alto Networks delivers strong Q3 results
HPE posts Q2 net loss of $612 million
Box beats expectations for Q1
Splunk satisfies Q1 targets, raises outlook for fiscal year