- Second quarter total revenue of $600
million, up 19% year-over-year
- Second quarter total subscription
revenue of $531 million, up 20% year-over-year
- Second quarter GAAP EPS of $0.32 and
non-GAAP EPS of $0.55, up 14% and 17% year-over-year,
respectively
- Total deferred revenue balance of $1.68
billion, up 19% year-over-year
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open
source solutions, today announced financial results for the second
quarter of fiscal year 2017 ended August 31, 2016.
“Red Hat's second quarter revenue results were highlighted by
18% in year-over-year growth for our Infrastructure offerings
combined with 33% in year-over-year growth for our Application
development and other emerging technologies," said Jim Whitehurst,
President and Chief Executive Officer of Red Hat. "Digital
transformation and hybrid cloud computing are changing how
applications are built, deployed, and managed. As organizations
adopt agile application development technologies such as Linux
containers, they are able to rely on Red Hat as their strategic
partner to modernize their infrastructure and application
development platforms.”
“In the second quarter, we continued to benefit from solid
demand and strong overall execution,” stated Frank Calderoni,
Executive Vice President, Operations and Chief Financial Officer of
Red Hat. “We continued to close a record number of deals over $1
million in our second quarter, which are up more than 60% year over
year. This further demonstrates our customers’ commitment to Red
Hat and the broad demand for our expanding technology portfolio as
enterprises embrace digital transformation and the hybrid
cloud."
Revenue: Total revenue for the quarter was $600 million,
up 19% in U.S. dollars year-over-year, or 18% measured in constant
currency. Constant currency references in this release are detailed
in the tables below. Subscription revenue for the quarter was $531
million, up 20% in U.S. dollars year-over-year, or 19% measured in
constant currency. Subscription revenue in the quarter was 89% of
total revenue.
Subscription Revenue Breakout: Subscription revenue from
Infrastructure-related offerings for the quarter was $427 million,
an increase of 18% in U.S. dollars year-over-year and 17% measured
in constant currency. Subscription revenue from Application
development-related and other emerging technologies offerings for
the quarter was $104 million, an increase of 33% in U.S. dollars
year-over-year and 32% measured in constant currency.
Operating Income: GAAP operating income for the quarter
was $82 million, up 7% year-over-year. After adjusting for non-cash
share-based compensation expense, amortization of intangible
assets, and transaction costs related to business combinations,
non-GAAP operating income for the second quarter was $137 million,
up 11% year-over-year. Non-GAAP references in this release are
detailed in the tables below. For the second quarter, GAAP
operating margin was 13.7% and non-GAAP operating margin was
22.8%.
Net Income: GAAP net income for the quarter was $59
million, or $0.32 per diluted share, compared with $51 million, or
$0.28 per diluted share, in the year-ago quarter. After adjusting
for non-cash share-based compensation expense, amortization of
intangible assets, transaction costs related to business
combinations, and non-cash interest expense related to the debt
discount, non-GAAP net income for the quarter was $101 million, or
$0.55 per diluted share, as compared to $88 million, or $0.47 per
diluted share, in the year-ago quarter. Non-GAAP diluted weighted
average shares outstanding excludes any dilution resulting from the
convertible notes because any potential dilution is expected to be
offset by our convertible note hedge transactions.
Cash: Operating cash flow was $97 million for the second
quarter, a decrease of 21% on a year-over-year basis. Total cash,
cash equivalents and investments as of August 31, 2016 was
$2.0 billion after repurchasing approximately $127 million, or
approximately 1.8 million shares, of common stock in the second
quarter. The remaining balance in the current repurchase
authorization as of August 31, 2016 was approximately $901
million.
Deferred revenue: At the end of the second quarter, the
company’s total deferred revenue balance was $1.68 billion, an
increase of 19% year-over-year. The full year positive impact to
total deferred revenue from changes in foreign exchange rates was
$22 million year-over-year. On a constant currency basis, total
deferred revenue would have been up 17% year-over-year.
Outlook: Red Hat’s outlook assumes current business
conditions and current foreign currency exchange rates.
For the full year:
- Revenue guidance is expected to be
$2.415 billion to $2.435 billion in U.S. dollars.
- GAAP operating margin is expected to be
approximately 13.8% and non-GAAP operating margin is expected to be
approximately 23.0%.
- Fully-diluted GAAP earnings per share
(EPS) is expected to be approximately $1.35 to $1.37 per share.
Fully-diluted non-GAAP EPS is expected to be approximately $2.23 to
$2.25 per share. Both GAAP and non-GAAP EPS assume a $1 million to
$2 million per quarter forecast for other income. Both GAAP and
non-GAAP EPS also assume an estimated annual effective tax rate of
27% before discrete tax items and 184 million fully-diluted shares
outstanding.
- Operating cash flow guidance range is
expected to be approximately $800 million to $820 million.
For the third quarter:
- Revenue guidance is $613 million to
$623 million.
- GAAP operating margin is expected to be
approximately 13.4% and non-GAAP operating margin is expected to be
approximately 23.3%.
- Fully-diluted GAAP EPS is expected to
be approximately $0.34 per share. Fully-diluted non-GAAP EPS is
expected to be approximately $0.58 per share. Both GAAP and
non-GAAP EPS assume a $1 million to $2 million forecast for other
income. Both GAAP and non-GAAP EPS also assume an estimated annual
effective tax rate of 27% before discrete tax items and 184 million
fully-diluted shares outstanding.
GAAP to non-GAAP reconciliation:
Full year non-GAAP operating margin guidance is derived by
subtracting the estimated full year impact of non-cash share-based
compensation expense of approximately $190 million, amortization of
intangible assets of approximately $32 million, and transaction
costs related to business combinations of $2 million. Estimated
full year impacts of share-based compensation expense, amortization
of intangible assets, and transaction costs related to business
combinations have increased from the prior quarter primarily due to
business combinations. Full year fully-diluted non-GAAP EPS
guidance is derived by subtracting the expenses listed in the
previous sentence and the full year impact of non-cash interest
expense related to the debt discount of approximately $19 million
and an estimated annual effective tax rate of 27% before discrete
tax items. Additionally, full year fully-diluted non-GAAP EPS
excludes approximately $15 million of discrete tax benefits related
to share-based compensation that are included in full year
fully-diluted GAAP EPS.
Third quarter non-GAAP operating margin guidance is derived by
subtracting the estimated impact of non-cash share-based
compensation expense of approximately $53 million and amortization
of intangible assets of approximately $8 million. Third quarter
fully-diluted non-GAAP EPS guidance is derived by subtracting the
expenses listed in the previous sentence and non-cash interest
expense related to the debt discount of approximately $5 million
and an estimated annual effective tax rate of 27% before discrete
tax items. Additionally, third quarter fully-diluted non-GAAP EPS
excludes approximately $5 million of discrete tax benefits related
to share-based compensation that are included in third quarter
fully-diluted GAAP EPS.
Webcast and Website Information
A live webcast of Red Hat's results will begin at 5:00 pm ET
today. The webcast, in addition to a copy of our prepared remarks
and slides containing financial highlights and supplemental
metrics, can be accessed by the general public at Red Hat's
investor relations website at http://investors.redhat.com. A replay
of the webcast will be available shortly after the live event has
ended. Additional information on Red Hat's reported results,
including a reconciliation of the non-GAAP adjusted results, are
included in the financial tables below.
About Red Hat, Inc.
Red Hat is the world's leading provider of open source software
solutions, using a community-powered approach to provide reliable
and high-performing cloud, Linux, middleware, storage and
virtualization technologies. Red Hat also offers award-winning
support, training, and consulting services. As a connective hub in
a global network of enterprises, partners, and open source
communities, Red Hat helps create relevant, innovative technologies
that liberate resources for growth and prepare customers for the
future of IT. Learn more at http://www.redhat.com.
Forward-Looking Statements
Certain statements contained in this press release may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements provide current expectations of future events based on
certain assumptions and include any statement that does not
directly relate to any historical or current fact. Actual results
may differ materially from those indicated by such forward-looking
statements as a result of various important factors, including:
risks related to the ability of the Company to compete effectively;
the ability to deliver and stimulate demand for new products and
technological innovations on a timely basis; delays or reductions
in information technology spending; the integration of acquisitions
and the ability to market successfully acquired technologies and
products; fluctuations in exchange rates; the effects of industry
consolidation; uncertainty and adverse results in litigation and
related settlements; the inability to adequately protect Company
intellectual property and the potential for infringement or breach
of license claims of or relating to third party intellectual
property; risks related to data and information security
vulnerabilities; the ability to meet financial and operations
changes encountered in our international operations; ineffective
management of, and control over, the Company's growth and
international operations; and changes in and a dependence on key
personnel, as well as other factors contained in our most recent
Quarterly Report on Form 10-Q (copies of which may be accessed
through the Securities and Exchange Commission's website at
http://www.sec.gov), including those found therein under the
captions "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations". In addition to
these factors, actual future performance, outcomes, and results may
differ materially because of more general factors including
(without limitation) general industry and market conditions and
growth rates, economic and political conditions, governmental and
public policy changes and the impact of natural disasters such as
earthquakes and floods. The forward-looking statements included in
this press release represent the Company's views as of the date of
this press release and these views could change. However, while the
Company may elect to update these forward-looking statements at
some point in the future, the Company specifically disclaims any
obligation to do so. These forward-looking statements should not be
relied upon as representing the Company's views as of any date
subsequent to the date of this press release.
Red Hat and the Shadowman logo are trademarks
or registered trademarks of Red Hat, Inc. or its subsidiaries in
the U.S. and other countries. Linux® is the registered trademark of
Linus Torvalds in the U.S. and other countries.
RED HAT, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited) (In thousands - except per share amounts)
Three Months Ended Six Months Ended
August 31, August 31, August 31, August
31, 2016 2015
2016 2015 Revenue:
Subscriptions $ 531,209 $ 441,526 $ 1,032,874 $ 866,319 Training
and services 68,596 62,622 134,829
118,830 Total subscription,
training and services revenue 599,805 504,148
1,167,703 985,149 Cost of
revenue: Subscriptions 39,678 30,996 76,222 60,843 Training
and services 47,993 44,968 95,496
86,519 Total cost of
subscription, training and services revenue 87,671
75,964 171,718 147,362
Total gross profit 512,134 428,184 995,985 837,787
Operating expense: Sales and marketing 253,255 205,101 496,503
403,973 Research and development 121,265 102,488 236,281 199,919
General and administrative 55,730 44,125
105,954 86,496 Total
operating expense 430,250 351,714
838,738 690,388 Income from operations
81,884 76,470 157,247 147,399 Interest income 3,392 2,895 6,821
5,611 Interest expense 5,925 5,733 11,811 11,448 Other income
(expense), net 84 (1,245 ) (468 )
(1,448 ) Income before provision for income taxes
79,435 72,387 151,789 140,114 Provision for income taxes (1)
20,663 20,992 31,832 40,633
Net income $ 58,772 $ 51,395 $ 119,957
$ 99,481 Net income per share: Basic $ 0.33 $ 0.28 $
0.66 $ 0.54 Diluted $ 0.32 $ 0.28 $ 0.65 $ 0.53 Weighted
average shares outstanding: Basic 180,322 183,179 180,745 183,155
Diluted 183,346 186,750 183,750 186,493
(1) Provision for income taxes for the three and six months
ended August 31, 2016 includes the impact of early adoption of ASU
2016-09. ASU 2016-09 requires that the amendment related to
accounting for income taxes be adopted on a prospective basis.
Accordingly, the provision for income taxes for the three and six
months ended August 31, 2015 has not been adjusted. The provision
for income taxes for the three and six months ended August 31, 2016
includes the effect of discrete tax benefits of $1.0 million and
$8.9 million, respectively, related to excess tax benefits from
share-based compensation.
RED HAT, INC. CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands)
ASSETS August 31, February 29,
2016 2016 (1) Current assets: Cash and
cash equivalents $ 970,569 $ 927,778 Investments in debt and equity
securities 365,128 281,142 Accounts receivable, net 359,893 509,715
Prepaid expenses 149,226 150,877 Other current assets 3,404
2,921 Total current assets 1,848,220
1,872,433 Property and equipment, net 172,312 166,886
Goodwill 1,053,872 1,027,277 Identifiable intangibles, net 142,794
146,071 Investments in debt securities 706,948 786,470 Deferred tax
assets, net 122,131 111,456 Other assets, net 54,479
44,506 Total assets $ 4,100,756 $
4,155,099
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities: Accounts payable and accrued expenses $
273,568 $ 284,802 Deferred revenue 1,233,762 1,272,908 Other
current obligations 1,950 1,467
Total current liabilities 1,509,280 1,559,177 Convertible
notes 734,700 723,942 Long term deferred revenue 446,890 449,636
Other long term obligations 91,490 87,912 Stockholders' equity:
Common stock 24 23 Additional paid-in capital 2,215,856 2,162,264
Retained earnings 1,219,246 1,099,738 Treasury stock, at cost
(2,047,008 ) (1,853,144 ) Accumulated other comprehensive loss
(69,722 ) (74,449 ) Total stockholders' equity
1,318,396 1,334,432 Total
liabilities and stockholders' equity $ 4,100,756 $ 4,155,099
(1) Derived from audited financial statements
RED HAT, INC. CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) (In thousands)
Three Months Ended Six Months
Ended August 31, August 31, August 31,
August 31, 2016 2015
2016 2015
Cash flows from operating activities: Net income $ 58,772 $ 51,395
$ 119,957 $ 99,481 Adjustments to reconcile net income to net cash
provided by operating activities: Depreciation and amortization
21,160 18,538 41,862 37,085 Share-based compensation expense 45,357
40,537 86,632 77,059 Deferred income taxes (5,467 ) (3,843 ) (7,619
) (1,929 ) Excess tax benefits from share-based payment
arrangements 1,185 2,812 9,135 9,231 Net amortization of bond
premium on available-for-sale debt securities 3,294 3,139 6,834
5,736 Accretion of debt discount and amortization of debt issuance
costs 5,393 5,222 10,758 10,417 Other 328 1,078 (437 ) 1,908
Changes in operating assets and liabilities net of effects of
acquisitions: Accounts receivable (30,684 ) (17,908 ) 159,645
161,479 Prepaid expenses 8,883 13,077 (490 ) 12,651 Accounts
payable and accrued expenses 18,578 34,415 (19,558 ) (17,932 )
Deferred revenue (26,953 ) (25,017 ) (73,046 ) (56,579 ) Other
(3,044 ) (356 ) (4,574 ) (340 )
Net cash provided by operating activities 96,802
123,089 329,099 338,267
Cash flows from investing activities: Purchase of
available-for-sale debt securities (163,043 ) (196,613 ) (297,644 )
(602,824 ) Proceeds from sales and maturities of available-for-sale
debt securities 177,528 170,617 294,710 353,200 Acquisition of
businesses, net of cash acquired (28,667 ) (1,700 ) (28,667 )
(1,700 ) Purchase of other intangible assets (3,521 ) (2,068 )
(6,389 ) (5,997 ) Purchase of property and equipment (15,539 )
(10,277 ) (33,192 ) (20,973 ) Other - (1,159 )
(111 ) (3,158 ) Net cash used in investing
activities (33,242 ) (41,200 ) (71,293 )
(281,452 ) Cash flows from financing activities:
Proceeds from exercise of common stock options 689 480 2,068 2,589
Purchase of treasury stock (127,386 ) (70,079 ) (193,864 ) (70,079
) Payments related to net settlement of employee share-based
compensation awards (6,398 ) (7,726 ) (37,477 ) (32,937 ) Payments
on other borrowings (463 ) (385 ) (906 ) (737 ) Other 415
- 914 - Net
cash used in financing activities (133,143 ) (77,710
) (229,265 ) (101,164 ) Effect of foreign
currency exchange rates on cash and cash equivalents 8,587
(3,494 ) 14,250 (11,517 ) Net
increase (decrease) in cash and cash equivalents (60,996 ) 685
42,791 (55,866 ) Cash and cash equivalents at beginning of the
period 1,031,565 990,922 927,778
1,047,473 Cash and cash equivalents at
end of period $ 970,569 $ 991,607 $ 970,569 $
991,607
RED HAT, INC. RECONCILIATION OF
CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS (Unaudited)
(In thousands - except per share amounts)
Non cash share-based compensation
expense included in Consolidated Statements of Operations:
Three Months Ended Six Months Ended August 31,
August 31, August 31, August 31,
2016 2015 2016
2015 Cost of revenue $ 4,054 $
4,151 $ 8,359 $ 7,877 Sales and marketing 20,361 16,782 38,802
32,194 Research and development 12,969 12,022 24,971 22,897 General
and administration 7,973 7,582
14,500 14,091 Total share-based compensation
expense $ 45,357 $ 40,537 $ 86,632 $ 77,059
Amortization of intangible assets expense
included in Consolidated Statements of Operations:
Three
Months Ended Six Months Ended August 31,
August 31, August 31, August 31,
2016 2015 2016
2015 Cost of revenue $ 3,846 $
2,618 $ 7,468 $ 5,192 Sales and marketing 1,905 2,010 3,821 4,014
Research and development 34 292 69 542 General and administration
1,848 1,160 3,601
2,212 Total amortization of intangible assets expense $
7,633 $ 6,080 $ 14,959 $ 11,960
Non-cash interest expense related to the debt discount
included in Consolidated Statements of Operations:
Three
Months Ended Six Months Ended August 31,
August 31, August 31, August 31,
2016 2015 2016
2015 Total non-cash interest
expense related to the debt discount $ 4,753 $ 4,620
$ 9,484 $ 9,219 Transaction costs related to
business combinations included in Consolidated Statements of
Operations:
Three Months Ended Six Months
Ended August 31, August 31, August 31,
August 31, 2016 2015
2016 2015
Transaction costs related to business combinations $ 1,789 $
51 $ 1,789 $ 51
Three Months
Ended Six Months Ended August 31, August
31, August 31, August 31, 2016
2015 2016
2015 GAAP net income $ 58,772 $ 51,395 $
119,957 $ 99,481 GAAP provision for income taxes
20,663 20,992 31,832
40,633 GAAP income before provision for income taxes
$ 79,435 $ 72,387 $ 151,789 $ 140,114 Add: Non-cash
share-based compensation expense 45,357 40,537 86,632 77,059 Add:
Amortization of intangible assets 7,633 6,080 14,959 11,960 Add:
Non-cash interest expense related to the debt discount 4,753 4,620
9,484 9,219 Add: Transaction costs related to business combinations
1,789 51 1,789 51
Non-GAAP adjusted income before provision for income
taxes $ 138,967 $ 123,675 $ 264,653 $ 238,403
Non-GAAP provision for income taxes (1) 37,739
35,866 71,245 69,137
Non-GAAP adjusted net income (basic and diluted) $
101,228 $ 87,809 $ 193,408 $ 169,266
Non-GAAP adjusted diluted weighted average shares
outstanding: GAAP diluted weighted average shares outstanding
183,346 186,750 183,750 186,493 Dilution offset from convertible
note hedge transactions (195 ) (585 ) (82 )
(329 ) Non-GAAP diluted weighted average shares outstanding
183,151 186,165 183,668 186,164 Non-GAAP adjusted net income
per share: Basic $ 0.56 $ 0.48 $ 1.07 $ 0.92 Diluted $ 0.55 $ 0.47
$ 1.05 $ 0.91 (1) Non-GAAP provision for income
taxes: Non-GAAP adjusted income before provision for income taxes $
138,967 $ 123,675 $ 264,653 $ 238,403 GAAP estimated annual
effective tax rate 27.0 % 29.0 % 27.0 %
29.0 % Provision for income taxes on Non-GAAP adjusted net income
before discrete tax benefits $ 37,521 $ 35,866 $ 71,456 $ 69,137
Discrete tax expense (benefit), excluding discrete benefits related
to share-based compensation 218 -
(211 ) - Provision for income taxes on
Non-GAAP adjusted net income excluding discrete benefits related to
share-based compensation $ 37,739 $ 35,866 $ 71,245
$ 69,137
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED
RESULTS (Unaudited) (In thousands)
Reconciliation of
GAAP results to non-GAAP adjusted results
Three Months
Ended Six Months Ended August 31, August
31, August 31, August 31, 2016
2015 2016
2015 GAAP gross profit $ 512,134 $ 428,184 $
995,985 $ 837,787 Add: Non-cash share-based compensation
expense 4,054 4,151 8,359 7,877 Add: Amortization of intangible
assets 3,846 2,618 7,468
5,192 Non-GAAP gross profit $ 520,034 $
434,953 $ 1,011,812 $ 850,856 Non-GAAP
gross margin 86.7 % 86.3 % 86.6 % 86.4 %
Three
Months Ended Six Months Ended August 31,
August 31, August 31, August 31,
2016 2015 2016
2015 GAAP operating expenses $
430,250 $ 351,714 $ 838,738 $ 690,388 Deduct: Non-cash
share-based compensation expense (41,303 ) (36,386 ) (78,273 )
(69,182 ) Deduct: Amortization of intangible assets (3,787 ) (3,462
) (7,491 ) (6,768 ) Deduct: Transaction costs related to business
combinations (1,789 ) (51 ) (1,789 )
(51 ) Non-GAAP adjusted operating expenses $ 383,371
$ 311,815 $ 751,185 $ 614,387
Three Months Ended Six Months Ended August 31,
August 31, August 31, August 31,
2016 2015 2016
2015 GAAP operating income $
81,884 $ 76,470 $ 157,247 $ 147,399 Add: Non-cash
share-based compensation expense 45,357 40,537 86,632 77,059 Add:
Amortization of intangible assets 7,633 6,080 14,959 11,960 Add:
Transaction costs related to business combinations 1,789
51 1,789 51
Non-GAAP adjusted operating income $ 136,663 $ 123,138
$ 260,627 $ 236,469 Non-GAAP adjusted
operating margin 22.8 % 24.4 % 22.3 % 24.0 %
Three
Months Ended August 31, August 31,
Year-Over-Year 2016 2015
Growth Rate GAAP subscription revenue by
offering type Infrastructure-related offerings $ 427,035 $ 362,926
17.7 % Adjustment for currency impact (3,824 ) -
Non-GAAP Infrastructure-related subscription revenue on a
constant currency basis $ 423,211 $ 362,926 16.6 %
Application development-related and other emerging technology
offerings $ 104,174 $ 78,600 32.5 % Adjustment for currency impact
(629 ) -
Non-GAAP Application development-related
and other emerging technology subscription revenue on a
constantcurrency basis
$ 103,545 $ 78,600 31.7 % GAAP subscription revenue 531,209
441,526 20.3 % Adjustment for currency impact (4,453 )
- Non-GAAP subscription revenue on a constant
currency basis $ 526,756 $ 441,526 19.3 % GAAP training and
services revenue $ 68,596 $ 62,622 9.5 % Adjustment for currency
impact 974 - Non-GAAP training and
services revenue on a constant currency basis $ 69,570 $ 62,622
11.1 % GAAP total subscription, training and services
revenue $ 599,805 $ 504,148 19.0 % Adjustment for currency impact
(3,479 ) - Non-GAAP total subscription,
training and services revenue on a constant currency basis $
596,326 $ 504,148 18.3 %
Six Months
Ended August 31, August 31,
Year-Over-Year 2016 2015
Growth Rate GAAP subscription revenue by
offering type Infrastructure-related offerings $ 830,216 $ 716,667
15.8 % Adjustment for currency impact (5,572 ) -
Non-GAAP Infrastructure-related subscription revenue on a
constant currency basis $ 824,644 $ 716,667 15.1 %
Application development-related and other emerging technology
offerings $ 202,658 $ 149,652 35.4 % Adjustment for currency impact
(894 ) -
Non-GAAP Application development-related
and other emerging technology subscription revenue on a
constantcurrency basis
$ 201,764 $ 149,652 34.8 % GAAP subscription revenue
1,032,874 866,319 19.2 % Adjustment for currency impact
(6,466 ) - Non-GAAP subscription revenue on a
constant currency basis $ 1,026,408 $ 866,319 18.5 % GAAP
training and services revenue $ 134,829 $ 118,830 13.5 % Adjustment
for currency impact 1,577 - Non-GAAP
training and services revenue on a constant currency basis $
136,406 $ 118,830 14.8 % GAAP total subscription, training
and services revenue $ 1,167,703 $ 985,149 18.5 % Adjustment for
currency impact (4,889 ) - Non-GAAP total
subscription, training and services revenue on a constant currency
basis $ 1,162,814 $ 985,149 18.0 %
RED HAT,
INC. SUPPLEMENTAL INFORMATION (Unaudited) (In thousands)
Change
in deferred revenue balances
CurrentDeferredRevenue
Long
TermDeferredRevenue
Total DeferredRevenue
Balance at August 31, 2015 $ 1,047,732 $ 365,708 $ 1,413,440
Constant currency change in deferred revenue (1) 169,269 75,469
244,738 Impact from foreign currency translation 16,761
5,713 22,474 Balance at August
31, 2016 $ 1,233,762 $ 446,890 $ 1,680,652 Year-over-year
growth rate 17.8 % 22.2 % 18.9 % Year-over-year growth rate on a
constant currency basis 16.2 % 20.6 % 17.3 % (1) Change in
deferred revenue includes approximately $0.7 million acquired as
part of business combinations.
Revenue growth by
geographical segment Americas EMEA APAC
Consolidated Total revenue for the three months ended
August 31, 2016 $ 385,529 $ 127,467 $ 86,809 $ 599,805 Adjustment
for currency impact 2,997 (578 ) (5,898
) (3,479 ) Total revenue on a constant currency basis for
the three months ended August 31, 2016 $ 388,526 $ 126,889 $ 80,911
$ 596,326 Total revenue for the three months ended August
31, 2015 $ 332,204 $ 108,454 $ 63,490 $ 504,148
Year-over-year growth rate 16.1 % 17.5 % 36.7 % 19.0 %
Year-over-year growth rate on a constant currency basis 17.0 % 17.0
% 27.4 % 18.3 % Total revenue for the six months
ended August 31, 2016 $ 751,252 $ 251,766 $ 164,685 $ 1,167,703
Adjustment for currency impact 6,248 (4,256 )
(6,881 ) (4,889 ) Total revenue on a constant
currency basis for the six months ended August 31, 2016 $ 757,500 $
247,510 $ 157,804 $ 1,162,814 Total revenue for the six
months ended August 31, 2015 $ 654,037 $ 205,927 $ 125,185 $
985,149 Year-over-year growth rate 14.9 % 22.3 % 31.6 % 18.5
% Year-over-year growth rate on a constant currency basis 15.8 %
20.2 % 26.1 % 18.0 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160921005388/en/
Media Contact:Stephanie WonderlickRed Hat,
Inc.571-421-8169swonderl@redhat.comorInvestor Relations:Tom
McCallumRed Hat, Inc.919-754-4630tmccallum@redhat.com
Red Hat (NYSE:RHT)
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From Mar 2024 to Apr 2024
Red Hat (NYSE:RHT)
Historical Stock Chart
From Apr 2023 to Apr 2024