Red Hat announces earnings for Q2 2015

Red Hat announced its financial results for the second quarter of fiscal year 2016.

Total revenue for the second quarter ended Augus 31, 2015 was $504 million, with an increase of 13% from the same quarter last year. Looking at the financial details we can see that total subscription revenue earned for the quarter was $363 million, with an increase of 9% year-over-year. Operating cash flow for second quarter was of $120 million, up 12% year-over-year, total cash and cash equivalents and investment was $2.0 billion after repurchising about $70 million.

GAAP operating income for the second quarter was $76 million, with an increase of 19% year-over-year. For the second quarter, GAAP operating margin was 15.2%. Non-GAAP operating income was $123 million, up 13% and non-GAAP operating margin was 24.4%.

GAAP net income for the quarter was $51 million, or $0.28 per diluted share, in comparison with $47 million, or $0.25 per diluted share, in the year ago quarter. Operating cash flow was $120 million for the second quarter with an increase of 12% year-over-year. Total deferred revenue balance was $1.41 billion, up 13% on a year-over-year basis.

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

Strong execution in Q2 contributed to total revenue results that exceeded 21% year-over-year growth on a constant currency basis. We were pleased with the progress of our technologies that address cloud deployments across multiple footprints. Specifically in this quarter, we achieved a public cloud milestone in our Certified Cloud and Service Provider program of an annualized run-rate of $100 million. We are also thrilled to be the first open source company to achieve an annualized run-rate of $2 billion in revenue this quarter. In addition, we believe Red Hat is well-positioned for the second half of the fiscal year as we continue to benefit from delivering innovation to our customers.