Red Hat (RHT) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Zacks Investment Research | Mar 25, 2019 10:47PM ET
Red Hat Inc. (NYSE:RHT) reported fourth-quarter fiscal 2019 non-GAAP earnings of $1.16 per share, which surpassed the Zacks Consensus Estimate by 15 cents. The figure increased 26.1% on a year-over-year basis.
Revenues increased 14% year over year to $879 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 $886 million.
Revenues, adjusted for currency impact, increased 16.9% year over year to $902.6 million.
Americas, Europe, Middle East & Africa (EMEA), and Asia-Pacific (APAC) revenues increased 13.6%, 12.9% and 16.3%, respectively. After adjusting for currency impact, Americas, EMEA and APAC revenues increased 14.9%, 20.3% and 20.2%, respectively.
Almost 62.6% of the bookings came from Americas, 23.1% from EMEA and 14.3% from APAC. Additionally, total backlog grew 22% from the year-ago quarter to $4.1 billion.
Quarter Details
Subscription revenues (88% of revenues) increased 13% year over year to $774 million. When adjusted for currency impact, revenues increased 16% to $793.5 million.
Infrastructure related subscription revenues increased 8% from the year-ago quarter to $549 million. After adjusting for currency impact, revenues increased 10.2% to $561.8 million.
Application development & emerging technologies (Ansible, OpenShift, OpenStack, Storage and cloud management) subscription revenues surged 30% year over year to $225 million. After adjusting for currency impact, revenues increased 34% to $231.7 million.
Training & services revenues (12% of revenues) increased 18% from the year-ago quarter to $105 million. When adjusted for currency impact, revenues increased 23% to $109.1 million.
Non-GAAP gross profit increased 13.5% year over year to $758.2 million. Non-GAAP gross margin contracted 20 bps to 86.3%.
Non-GAAP operating expenses increased 11.2% from the year-ago quarter to $531.1 million.
Non-GAAP operating margin increased 110 bps to 25.8%, due to lower operating expenses.
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