Red Hat: Earnings up, customers in, competitors out
Red Hat knocked the ball out of the park again this quarter, especially in light of the competitive pressures from Microsoft/Novell and Oracle. I joined in the earnings call today, and was very impressed.
Revenue, cash flow, billings, bookings were all up. On bookings, Red Hat has the largest pipeline it has ever had, Charlie Peters (CFO) reported. Total revenue for the quarter was $105.8 million, an increase of 45% from the year-ago quarter and 6% from the prior quarter. Subscription revenue was $88.9 million, up 48% year-over-year and 5% sequentially. Overall gross margin was 84%, consistent with last quarter. Peters reported that Red Hat is on track to hit its 2006 annual numbers.