Red Hat announces Q1 2015 earnings

On June 18 Red Hat announced its financial results for its fiscal year 2016 and for the first quarter of 2015.

Total revenue for the first quarter ended May 31, 2015 was $481 million, with an increase of 14% from the same quarter last year. Total revenue for the first quarter of fiscal 2016 also included an additional $5 million of subscription revenue earned from Red Hat’s Certified Cloud Providers (CCP). Looking at the financials details we can see that subscription revenue was of $425 million, up 14% year-over-year. Operating cash flow for first quarter was of $209 million, up 27% year-over-year, full fiscal year operating cash flow of $623 million, up 15% year-over-year.

GAAP operating income for the first quarter was $71 million, with an increase of 39% year-over-year. For the first quarter, GAAP operating margin was 14.7%. Non-GAAP operating income was $113 million, up 28% and non-GAAP operating margin was 23.6%.

GAAP net income for the quarter was $48 million, or $0.26 per diluted share, in comparison with $38 million, or $0.20 per diluted share, in the year ago quarter. Operating cash flow was $209 million for the first quarter with an increase of 27% year-over-year. Total deferred revenue balance was $1.44 billion, up 13% on a year-over-year basis. Total cash, cash equivalents and investments as of May 31, 2015 was $1.97 billion.

Jim Whitehurst, President and Chief Executive Officer of Red Hat, declared:

Our solid start to fiscal year 2016 was evidenced by strong constant currency revenue growth of over 20%, this strong growth reflects in part the demand for our open, hybrid cloud technologies across four footprints: bare metal, virtualization, private cloud and public cloud deployments. Red Hat’s portfolio of technologies becomes increasingly strategic to customers who are looking to expand their capabilities and agility to build and deploy applications across these data center footprints.

Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat, stated:

We delivered Q1 results which exceeded the high-end of our guidance for total revenue, non-GAAP operating margin and non-GAAP EPS before the adjustment which added the incremental $5 million of earned revenue from our CCP program