Home Open Source Red Hat on track to hit US$2b+ revenue for third year running

Red Hat on track to hit US$2b+ revenue for third year running

Red Hat is on track to record a third year of US$2 billion-plus revenue, with results for the second quarter of fiscal 2018 showing the company had raked in US$723 million, an increase of 21% on the corresponding quarter a year ago.

The company, the biggest provider of open source solutions globally, said that at this stage revenue for the full-year 2018 was projected at between US$2.880 billion and US$2.895 billion.

The company recorded net profit of US$97 million, compared to US$59 million for the second quarter of the previous fiscal year.

“Strong demand for our technologies that enable hybrid cloud computing has contributed to accelerated revenue growth in the first half of the fiscal year," said Jim Whitehurst, president and chief executive of Red Hat.

"In the second quarter, we delivered total revenue growth of 21%, fuelled by over 40% growth in our application development-related and other emerging technology revenue.

"IT organisations continued to turn to Red Hat as a strategic technology partner to help them transform and modernise their applications and infrastructure for the hybrid cloud."

Eric Shander, executive vice-president and chief financial officer, said: "Strong execution and global demand for Red Hat technologies continued to drive financial results which exceeded expectations for the second quarter and the first half of fiscal year 2018.

"For the first half of fiscal 2018, Red Hat delivered a powerful combination of 20% total revenue growth, 41% GAAP operating income growth, 26% non-GAAP operating income growth, and 22% operating cash flow growth. Given our first half results and ongoing momentum, we are increasing our outlook for the full year."

Red Hat first crossed the US$2 billion revenue mark for fiscal 2016 and repeated the achievement in fiscal 2017.

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A professional journalist with decades of experience, Sam for nine years used DOS and then Windows, which led him to start experimenting with GNU/Linux in 1998. Since then he has written widely about the use of both free and open source software, and the people behind the code. His personal blog is titled Irregular Expression.