Red Hat Reports Strong Growth in FY 2019, Thanks to its Cloud Enabling Technologies

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During the fourth quarter of FY 2019, Red Hat posted total revenue of $879 million, up 14 per cent from the same period last year.

Red Hat, Inc., the world’s leading provider of open source solutions, on Tuesday announced financial results for the fourth quarter and full fiscal year 2019 ended February 28, 2019.

According to Jim Whitehurst, President and CEO of Red Hat, enterprise organizations are continuing to move to hybrid cloud environments, and this trend is contributing to strong growth in Red Hats cloud enabling technologies.

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The company claims, across the portfolio, its total number of customers with active subscriptions greater than $5 million increased 33 per cent year-over-year in fiscal year 2019. The growth is majorly contributed by the increasing number of Ansible and OpenShift customers, which now total more than 1,300 and 1,000, respectively, as of the end of fiscal year 2019.

In FY19, the company continued to strengthen its strategic relationships with enterprise organizations, witnessing a 17 per cent year-over-year increase in the number of deals over $1 million.

These deals included broad adoption across Red Hats portfolio of technologies, with cross-selling up 22 per cent from the previous year, said Red Hat’s Executive Vice President and Chief Financial Officer Eric Shander.

Additionally, the company recorded a total backlog of $4.1 billion, witnessing a 22 per cent increase year-over-year. This is the third consecutive year where backlog increased at a rate of more than 20 per cent year-over-year, Shander added.

Total Revenue for Fourth Quarter and Fiscal Year 2019

During the fourth quarter of FY 2019, Red Hat posted total revenue of $879 million, up 14 per cent from the same period last year. Subscription revenue for the quarter was $774 million, up 13 per cent year-over-year. Subscription revenue in the quarter was 88 per cent of total revenue.

The company achieved total revenue of $3.4 billion in the full fiscal year 2019, which is 15 per cent more than the previous year. Subscription revenue for the full fiscal year was $2.9 billion, up 15 per cent year-over-year. Subscription revenue in the full fiscal year was 88 per cent of total revenue.

Because of the pending transaction with International Business Machines Corporation, Red Hat said it will not be hosting a conference call for its fourth quarter 2019 business results. Also, it will not be providing an outlook for its fiscal 2020.

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