- Third quarter total revenue of $615
million, up 18% year-over-year or 17% in constant currency
- Third quarter total subscription
revenue of $543 million, up 19% year-over-year or 18% in constant
currency
- Third quarter Application
development-related and other emerging technology revenue of $112
million, up 33% year-over-year or 32% in constant currency
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open
source solutions, today announced financial results for the third
quarter of fiscal year 2017 ended November 30, 2016.
“Enterprise and service provider customers continue to adopt a
hybrid cloud strategy for developing, deploying and managing the
life-cycle of their critical applications. Red Hat is uniquely
positioned to address this need. In aggregate, customers utilizing
our cloud-enabling technologies either on-premise or in the public
cloud are spending more with Red Hat than customers that have not
yet embraced our cloud-enabling technologies," said Jim Whitehurst,
President and Chief Executive Officer of Red Hat.
CFO Transition: Frank Calderoni notified Red Hat of his
decision to step down as Executive Vice President, Operations and
Chief Financial Officer of Red Hat, effective in late January 2017,
to enable him to accept a chief executive officer position at
another company. Mr. Calderoni has indicated that he would make
himself available to Red Hat after the effective date of the
resignation for transitional support, as needed. Jim Whitehurst,
President and CEO, after consulting with the Board of Directors of
Red Hat, announced that upon Mr. Calderoni’s resignation in
January, Red Hat intends to appoint Eric Shander, Vice President,
Finance and Accounting and our principal accounting officer, to act
as the CFO of Red Hat, pending a decision on a permanent
replacement.
Jim Whitehurst said, “Our warm thanks to Frank for his
contributions to Red Hat and for helping prepare Red Hat for the
rich business opportunity we have before us.”
Frank Calderoni said, “I want to thank the associates around the
globe for the opportunity to be part of the Red Hat team. I am most
proud of the leadership team we were able to build. We also
enhanced the strong operational and financial foundation that has
enabled the company’s continued growth. Red Hat is an exceptional
company and well positioned to continue to leverage the broad
transformation that is occurring in the IT industry.”
Revenue: Total revenue for the quarter was $615 million,
up 18% in U.S. dollars year-over-year, or 17% measured in constant
currency. Constant currency references in this release are detailed
in the tables below. Subscription revenue for the quarter was $543
million, up 19% in U.S. dollars year-over-year, or 18% measured in
constant currency. Subscription revenue in the quarter was 88% of
total revenue.
Subscription Revenue Breakout: Subscription revenue from
Infrastructure-related offerings for the quarter was $431 million,
an increase of 16% in U.S. dollars year-over-year and 14% measured
in constant currency. Subscription revenue from Application
development-related and other emerging technologies offerings for
the quarter was $112 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 $81 million, up 17% 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 third quarter was
$143 million, up 16% year-over-year. Non-GAAP references in this
release are detailed in the tables below. For the third quarter,
GAAP operating margin was 13.1% and non-GAAP operating margin was
23.3%.
Net Income: GAAP net income for the quarter was $68
million, or $0.37 per diluted share, compared with $47 million, or
$0.25 per diluted share, in the year-ago quarter. During the third
quarter of fiscal year 2017, GAAP net income and earnings per
diluted share benefited by $6 million and approximately $0.03,
respectively, from the adoption of Accounting Standards Update
2016-09 ("ASU 2016-09") in the first quarter of fiscal year
2017.
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 $111
million, or $0.61 per diluted share, as compared to $89 million, or
$0.48 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 $136 million for the third
quarter, a decrease of 8% on a year-over-year basis. Total cash,
cash equivalents and investments as of November 30, 2016 was
$2.0 billion after repurchasing approximately $125 million, or
approximately 1.6 million shares, of common stock in the third
quarter. The remaining balance in the current repurchase
authorization as of November 30, 2016 was approximately $775
million.
Deferred revenue: At the end of the third quarter, the
company’s total deferred revenue balance was $1.7 billion, an
increase of 15% year-over-year. The full year positive impact to
total deferred revenue from changes in foreign exchange rates was
$9 million year-over-year. On a constant currency basis, total
deferred revenue would have been up 14% year-over-year.
Outlook: Red Hat’s outlook assumes current foreign
currency exchange rates, which have weakened since the outlook
provided on September 21, 2016, and current business
conditions.
For the full year:
- Revenue guidance is expected to be
$2.397 billion to $2.405 billion in U.S. dollars.
- GAAP operating margin is expected to be
approximately 13.5% and non-GAAP operating margin is expected to be
approximately 23.0%.
- Fully diluted GAAP earnings per share
(EPS) is expected to be approximately $1.33 per share. Fully
diluted non-GAAP EPS is expected to be approximately $2.27 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 183 million fully diluted shares
outstanding.
- Operating cash flow guidance range is
expected to be approximately $770 million to $785 million.
For the fourth quarter:
- Revenue guidance is $614 million to
$622 million.
- GAAP operating margin is expected to be
approximately 14.0% and non-GAAP operating margin is expected to be
approximately 24.0%.
- Fully diluted GAAP EPS is expected to
be approximately $0.33 per share. Fully diluted non-GAAP EPS is
expected to be approximately $0.61. 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 181 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 $195 million, amortization of
intangible assets of approximately $32 million, and transaction
costs related to business combinations of $2 million. 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 $16 million of
discrete tax benefits related to share-based compensation that are
included in full year fully diluted GAAP EPS.
Fourth quarter non-GAAP operating margin guidance is derived by
subtracting the estimated impact of non-cash share-based
compensation expense of approximately $54 million and amortization
of intangible assets of approximately $8 million. Fourth 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, fourth quarter fully diluted non-GAAP EPS
excludes approximately $1 million of discrete tax benefits related
to share-based compensation that are included in fourth 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 operational
challenges 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 Nine Months Ended
November 30, November 30, November 30,
November 30, 2016 2015 2016 2015
Revenue: Subscriptions $ 543,318 $ 457,488 $ 1,576,192 $
1,323,807 Training and services 71,942 66,092
206,771 184,921 Total
subscription, training and services revenue 615,260
523,580 1,782,963 1,508,728
Cost of revenue: Subscriptions 40,660 32,246 116,882
93,088 Training and services 49,793 48,802
145,289 135,321 Total
cost of subscription, training and services revenue 90,453
81,048 262,171 228,409
Total gross profit 524,807 442,532 1,520,792
1,280,319 Operating expense: Sales and marketing 267,080
215,784 763,583 619,757 Research and development 122,469 104,906
358,750 304,824 General and administrative 54,485
52,965 160,439 139,462
Total operating expense 444,034 373,655
1,282,772 1,064,043 Income from
operations 80,773 68,877 238,020 216,276 Interest income 3,346
2,874 10,167 8,484 Interest expense 6,009 5,817 17,820 17,265 Other
income (expense), net (1,392 ) 49 (1,860 )
(1,398 ) Income before provision for income
taxes 76,718 65,983 228,507 206,097 Provision for income taxes (1)
8,775 19,135 40,607
59,768 Net income $ 67,943 $ 46,848 $ 187,900
$ 146,329 Net income per share: Basic $ 0.38 $
0.26 $ 1.04 $ 0.80 Diluted $ 0.37 $ 0.25 $ 1.02 $ 0.78
Weighted average shares outstanding: Basic 179,233 182,850 180,245
183,054 Diluted 182,682 186,094 183,453 186,414
(1) Provision for income taxes for the three and nine months
ended November 30, 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 nine
months ended November 30, 2015 has not been adjusted. The provision
for income taxes for the three and nine months ended November 30,
2016 includes the effect of discrete tax benefits of $6.2 million
and $15.2 million, respectively, related to excess tax benefits
from share-based compensation.
RED HAT, INC. CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands)
ASSETS November 30, February 29, 2016
2016 (1)
Current assets: Cash and cash equivalents $ 916,678 $
927,778 Investments in debt and equity securities 378,189 281,142
Accounts receivable, net 427,436 509,715 Prepaid expenses 156,603
150,877 Other current assets 1,666 2,921
Total current assets 1,880,572 1,872,433
Property and equipment, net 174,450 166,886 Goodwill 1,042,396
1,027,277 Identifiable intangibles, net 142,425 146,071 Investments
in debt securities 676,503 786,470 Deferred tax assets, net 108,955
111,456 Other assets, net 59,792 44,506
Total assets $ 4,085,093 $ 4,155,099
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable and accrued expenses $ 270,763 $ 284,802 Deferred
revenue 1,225,421 1,272,908 Other current obligations 1,754
1,467 Total current liabilities
1,497,938 1,559,177 Convertible notes 740,153 723,942 Long
term deferred revenue 482,557 449,636 Other long term obligations
92,643 87,912 Stockholders' equity: Common stock 24 23 Additional
paid-in capital 2,246,034 2,162,264 Retained earnings 1,287,188
1,099,738 Treasury stock, at cost (2,172,326 ) (1,853,144 )
Accumulated other comprehensive loss (89,118 )
(74,449 ) Total stockholders' equity 1,271,802
1,334,432 Total liabilities and stockholders'
equity $ 4,085,093 $ 4,155,099 (1)
Derived from audited financial statements
RED HAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In
thousands)
Three Months Ended Nine Months
Ended November 30, November 30, November
30, November 30, 2016 2015 2016
2015 Cash flows from operating activities: Net income
$ 67,943 $ 46,848 $ 187,900 $ 146,329
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 21,870 19,858 63,732 56,944
Share-based compensation expense 54,741 43,407 141,373 120,466
Deferred income taxes 13,818 5,841 6,199 3,912 Excess tax benefits
from share-based payment arrangements 6,362 8,756 15,497 17,987 Net
amortization of bond premium on available-for-sale debt securities
3,120 3,055 9,954 8,791 Accretion of debt discount and amortization
of debt issuance costs 5,453 5,279 16,211 15,697 Other 986 853 549
2,761 Changes in operating assets and liabilities net of effects of
acquisitions: Accounts receivable (73,149 ) (96,964 ) 86,496 64,515
Prepaid expenses (18,897 ) (9,032 ) (19,387 ) 3,618 Accounts
payable and accrued expenses (10,775 ) 21,886 (30,333 ) 3,954
Deferred revenue 64,181 96,664 (8,865 ) 40,085 Other 706
1,908 (3,868 ) 1,567
Net cash provided by operating activities 136,359
148,359 465,458 486,626
Cash flows from investing activities: Purchase of
available-for-sale debt securities (118,152 ) (180,744 ) (415,796 )
(783,568 ) Proceeds from sales and maturities of available-for-sale
debt securities 113,759 235,931 408,469 589,131 Acquisition of
businesses, net of cash acquired - (125,011 ) (28,667 ) (126,711 )
Purchase of other intangible assets (2,323 ) (2,097 ) (8,712 )
(8,094 ) Purchase of property and equipment (17,244 ) (8,486 )
(50,436 ) (29,458 ) Other (92 ) (90 ) (203 )
(3,249 ) Net cash used in investing activities
(24,052 ) (80,497 ) (95,345 ) (361,949 )
Cash flows from financing activities: Proceeds from exercise
of common stock options 1,205 723 3,273 3,312 Proceeds from
employee stock purchase program 7,155 - 7,155 - Purchase of
treasury stock (125,318 ) (78,172 ) (319,182 ) (148,251 ) Payments
related to net settlement of employee share-based compensation
awards (25,769 ) (27,879 ) (63,245 ) (60,816 ) Payments on other
borrowings (462 ) (395 ) (1,368 ) (1,132 ) Other (84 )
(220 ) 829 (220 ) Net cash used
in financing activities (143,273 ) (105,943 )
(372,538 ) (207,107 ) Effect of foreign currency
exchange rates on cash and cash equivalents (22,925 )
(11,489 ) (8,675 ) (23,006 ) Net decrease in cash and
cash equivalents (53,891 ) (49,570 ) (11,100 ) (105,436 ) Cash and
cash equivalents at beginning of the period 970,569
991,607 927,778 1,047,473
Cash and cash equivalents at end of period $ 916,678
$ 942,037 $ 916,678 $ 942,037
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 Nine Months
Ended November 30, November 30, November
30, November 30, 2016 2015 2016
2015 Cost of revenue $ 4,037 $ 4,074 $ 12,396 $
11,952 Sales and marketing 26,624 17,192 65,426 49,386 Research and
development 13,814 13,059 38,785 35,955 General and administration
10,266 9,082 24,766
23,173 Total share-based compensation expense $
54,741 $ 43,407 $ 141,373 $ 120,466
Amortization of intangible assets expense included in
Consolidated Statements of Operations:
Three Months
Ended Nine Months Ended November 30, November
30, November 30, November 30, 2016
2015 2016 2015 Cost of revenue $ 4,233
$ 3,100 $ 11,701 $ 8,291 Sales and marketing 1,695 2,330 5,516
6,345 Research and development 34 312 103 854 General and
administration 1,690 1,238 5,291
3,450 Total amortization of intangible assets
expense $ 7,652 $ 6,980 $ 22,611 $ 18,940
Non-cash interest expense related to the debt
discount included in Consolidated Statements of Operations:
Three Months Ended Nine Months Ended November
30, November 30, November 30, November 30,
2016 2015 2016 2015 Total
non-cash interest expense related to the debt discount $ 4,800
$ 4,664 $ 14,284 $ 13,883
Transaction costs related to business combinations included in
Consolidated Statements of Operations:
Three Months
Ended Nine Months Ended November 30, November
30, November 30, November 30, 2016
2015 2016 2015 Transaction costs
related to business combinations - $ 3,792 $
1,789 $ 3,844
Three Months Ended
Nine Months Ended November 30, November 30,
November 30, November 30, 2016 2015
2016 2015 GAAP net income $ 67,943 $ 46,848 $
187,900 $ 146,329 GAAP provision for income taxes
8,775 19,135 40,607
59,768 GAAP income before provision for income taxes
$ 76,718 $ 65,983 $ 228,507 $ 206,097 Add: Non-cash
share-based compensation expense 54,741 43,407 141,373 120,466 Add:
Amortization of intangible assets 7,652 6,980 22,611 18,940 Add:
Non-cash interest expense related to the debt discount 4,800 4,664
14,284 13,883 Add: Transaction costs related to business
combinations - 3,792 1,789
3,844 Non-GAAP adjusted income before
provision for income taxes $ 143,911 $ 124,826 $
408,564 $ 363,230 Non-GAAP provision for
income taxes (1) 33,160 36,200
104,405 105,337 Non-GAAP adjusted net
income (basic and diluted) $ 110,751 $ 88,626 $
304,159 $ 257,893 Non-GAAP adjusted diluted
weighted average shares outstanding: GAAP diluted weighted average
shares outstanding 182,682 186,094 183,453 186,414 Dilution offset
from convertible note hedge transactions (514 ) (390
) (228 ) (349 ) Non-GAAP diluted weighted average
shares outstanding 182,168 185,704 183,225 186,065 Non-GAAP
adjusted net income per share: Basic $ 0.62 $ 0.48 $ 1.69 $ 1.41
Diluted $ 0.61 $ 0.48 $ 1.66 $ 1.39 (1) Non-GAAP
provision for income taxes: Non-GAAP adjusted income before
provision for income taxes $ 143,911 $ 124,826 $ 408,564 $ 363,230
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 $ 38,856
$ 36,200 $ 110,312 $ 105,337 Discrete tax expense (benefit),
excluding discrete benefits related to share-based compensation
(5,696 ) - (5,907 ) -
Provision for income taxes on Non-GAAP adjusted net income
excluding discrete benefits related to share-based compensation $
33,160 $ 36,200 $ 104,405 $ 105,337
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 Nine Months Ended November 30, November
30, November 30, November 30, 2016
2015 2016 2015 GAAP gross profit $
524,807 $ 442,532 $ 1,520,792 $ 1,280,319 Add: Non-cash
share-based compensation expense 4,037 4,074 12,396 11,952 Add:
Amortization of intangible assets 4,233 3,100
11,701 8,291 Non-GAAP
gross profit $ 533,077 $ 449,706 $ 1,544,889 $
1,300,562 Non-GAAP gross margin 86.6 % 85.9 % 86.6 %
86.2 %
Three Months Ended Nine Months
Ended November 30, November 30, November
30, November 30, 2016 2015 2016
2015 GAAP operating expenses $ 444,034 $ 373,655 $
1,282,772 $ 1,064,043 Deduct: Non-cash share-based
compensation expense (50,704 ) (39,333 ) (128,977 ) (108,514 )
Deduct: Amortization of intangible assets (3,419 ) (3,880 ) (10,910
) (10,649 ) Deduct: Transaction costs related to business
combinations - (3,792 ) (1,789 )
(3,844 ) Non-GAAP adjusted operating expenses $ 389,911
$ 326,650 $ 1,141,096 $ 941,036
Three Months Ended Nine Months Ended
November 30, November 30, November 30,
November 30, 2016 2015 2016 2015
GAAP operating income $ 80,773 $ 68,877 $ 238,020 $ 216,276
Add: Non-cash share-based compensation expense 54,741 43,407
141,373 120,466 Add: Amortization of intangible assets 7,652 6,980
22,611 18,940 Add: Transaction costs related to business
combinations - 3,792 1,789
3,844 Non-GAAP adjusted operating
income $ 143,166 $ 123,056 $ 403,793 $ 359,526
Non-GAAP adjusted operating margin 23.3 % 23.5 % 22.6
% 23.8 %
Three Months Ended November
30, November 30, Year-Over-Year 2016
2015 Growth Rate GAAP subscription revenue by
offering type Infrastructure-related offerings $ 431,142 $ 373,091
15.6 % Adjustment for currency impact (4,491 ) -
Non-GAAP Infrastructure-related subscription revenue on a
constant currency basis $ 426,651 $ 373,091 14.4 %
Application development-related and other emerging technology
offerings $ 112,176 $ 84,397 32.9 % Adjustment for currency impact
(969 ) - Non-GAAP Application
development-related and other emerging technology subscription
revenue on a constant currency basis $ 111,207 $ 84,397 31.8 %
GAAP subscription revenue $ 543,318 $ 457,488 18.8 %
Adjustment for currency impact (5,460 ) -
Non-GAAP subscription revenue on a constant currency basis $
537,858 $ 457,488 17.6 % GAAP training and services revenue
$ 71,942 $ 66,092 8.9 % Adjustment for currency impact 479
- Non-GAAP training and services revenue on a
constant currency basis $ 72,421 $ 66,092 9.6 % GAAP total
subscription, training and services revenue $ 615,260 $ 523,580
17.5 % Adjustment for currency impact (4,981 ) -
Non-GAAP total subscription, training and services revenue
on a constant currency basis $ 610,279 $ 523,580 16.6
%
Nine Months Ended November 30,
November 30, Year-Over-Year 2016 2015
Growth Rate GAAP subscription revenue by offering
type Infrastructure-related offerings $ 1,261,359 $ 1,089,758 15.7
% Adjustment for currency impact (10,066 ) -
Non-GAAP Infrastructure-related
subscription revenue on a constant currency basis
$ 1,251,293 $ 1,089,758 14.8 % Application
development-related and other emerging technology offerings $
314,833 $ 234,049 34.5 % Adjustment for currency impact
(1,814 ) - Non-GAAP Application development-related
and other emerging technology subscription revenue on a constant
currency basis $ 313,019 $ 234,049 33.7 % GAAP subscription
revenue $ 1,576,192 $ 1,323,807 19.1 % Adjustment for currency
impact (11,880 ) - Non-GAAP subscription
revenue on a constant currency basis $ 1,564,312 $ 1,323,807 18.2 %
GAAP training and services revenue $ 206,771 $ 184,921 11.8
% Adjustment for currency impact 2,088 -
Non-GAAP training and services revenue on a constant
currency basis $ 208,859 $ 184,921 12.9 % GAAP total
subscription, training and services revenue $ 1,782,963 $ 1,508,728
18.2 % Adjustment for currency impact (9,792 ) -
Non-GAAP total subscription, training and services revenue
on a constant currency basis $ 1,773,171 $ 1,508,728
17.5 %
RED HAT, INC. SUPPLEMENTAL
INFORMATION (Unaudited) (In thousands)
Change in deferred revenue balances
Current Deferred
Revenue
Long-Term
Deferred
Revenue
Total Deferred
Revenue
Balance at November 30, 2015 $ 1,080,572 $ 406,562 $
1,487,134 Constant currency change in deferred revenue (1) 138,563
73,340 211,903 Impact from foreign currency translation
6,286 2,655 8,941 Balance at
November 30, 2016 $ 1,225,421 $ 482,557 $ 1,707,978
Year-over-year growth rate 13.4 % 18.7 % 14.9 % Year-over-year
growth rate on a constant currency basis 12.8 % 18.0 % 14.2 %
(1) Change in deferred revenue includes approximately $0.4
million acquired as part of business combinations.
Revenue growth by geographical
segment
Americas EMEA APAC Consolidated
Total revenue for the three months ended November 30, 2016 $
393,589 $ 132,568 $ 89,103 $ 615,260 Adjustment for currency impact
606 801 (6,388 ) (4,981 )
Total revenue on a constant currency basis for the three months
ended November 30, 2016 $ 394,195 $ 133,369 $ 82,715 $ 610,279
Total revenue for the three months ended November 30, 2015 $
342,368 $ 114,909 $ 66,303 $ 523,580 Year-over-year growth
rate 15.0 % 15.4 % 34.4 % 17.5 % Year-over-year growth rate on a
constant currency basis 15.1 % 16.1 % 24.8 % 16.6 %
Total revenue for the nine months ended November 30, 2016 $
1,144,841 $ 384,334 $ 253,788 $ 1,782,963 Adjustment for currency
impact 6,901 (3,480 ) (13,213 )
(9,792 ) Total revenue on a constant currency basis for the nine
months ended November 30, 2016 $ 1,151,742 $ 380,854 $ 240,575 $
1,773,171 Total revenue for the nine months ended November
30, 2015 $ 996,405 $ 320,836 $ 191,487 $ 1,508,728
Year-over-year growth rate 14.9 % 19.8 % 32.5 % 18.2 %
Year-over-year growth rate on a constant currency basis 15.6 % 18.7
% 25.6 % 17.5 %
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version on businesswire.com: http://www.businesswire.com/news/home/20161221005764/en/
Media Contact:Red Hat, Inc.Stephanie Wonderlick,
571-421-8169swonderl@redhat.comorInvestor Relations:Red Hat,
Inc.Tom McCallum, 919-754-4630tmccallum@redhat.com
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