Red Hat Earnings 4th Quarter – Doing Ok But Not Great
This afternoon, Red Hat announced its fourth quarter results and fiscal year 2013 results.
Highlights include:
- Fourth quarter revenue of $348 million, up 17% year-over-year; full fiscal year revenue of $1.33 billion, up 17% year-over-year
- Fourth quarter subscription revenue of $303 million, up 19% year-over-year; full fiscal year subscription revenue of $1.15 billion, up 19% year-over-year
- Fourth quarter operating cash flow of $137 million, up 7% year-over-year; full fiscal year operating cash flow of $465 million, up 19% year-over-year
- Year-end deferred revenue balance exceeds a billion dollars, up 15% year-over-year
GAAP operating income for the fourth quarter and the full fiscal year 2013 was $50 million and $201 million, respectively. GAAP operating margin was 14.4% in the fourth quarter and 15.1% for the full year. After adjusting for stock compensation, amortization expenses and certain facility exit costs, as detailed in the tables below, non-GAAP operating income for the quarter was $84 million, or a 24.0% operating margin.
Full year non-GAAP operating income was $326 million and full year non-GAAP operating margin was 24.6%.
Big Data = Big Financial Results
Red Hat is betting on big data and that should materialize in increased revenue according to Jeff Kelly, analyst at Wikibon. Kelly recently put out the 2nd installment of Wikibon.org Big Data Market Sizing.
Bloggers also agree with Kelly. Var Guy has a solid story that highlights this new dynamic for Red Hat. According to the Var Guy, Big Data will generate big profits for channel partners that truly understand analytics, social media monitoring, and unstructured data management.
A message from John Furrier, co-founder of SiliconANGLE:
Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.
- 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
- 11.4k+ theCUBE alumni — Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network.
About SiliconANGLE Media
SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios — with flagship locations in Silicon Valley and the New York Stock Exchange — SiliconANGLE Media operates at the intersection of media, technology and AI.
Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.
