Open-source enterprise Linux provider Red Hat Inc. posted a solid set of second quarter financials after the bell on Monday. The company surpassed analyst expectations for both its fiscal second-quarter revenue and net income, boosting its guidance for the year.

Red Hat reported a net income of $51 million, or $0.28 per share. The company’s non-GAAP earnings were $0.47 a share on revenues of $504 million, a 13 percent year-over-year increase.

That’s in contrast to Wall Street’s expected earnings of $0.44 per share and $494.65 million in revenues.

In prepared remarks, Red Hat CEO and president Jim Whitehurst said the company has become the first open-source purveyor to achieve a $2 billion annual run rate in revenues for this quarter.

Whitehurst told analysts Red Hat continues to benefit from corporate customers that are looking to “modernize the data center and on-ramp to the cloud.”

The company was quick to point to the stunning growth of its “certified cloud and service provider” program, which refers to customers running Red Hat’s software on cloud services from companies such as Amazon Web Services, Google and IBM. That program has achieved an annualized run rate of $100 million, up from an annualized run rate of $36 million just six quarters previously.

In addition to its cloud deployment strategies, Red Hat has also benefited from its ongoing investments in promoting open hybrid cloud solutions, CFO Frank Calderoni added.

“The synergy Red Hat is getting out of their app dev and operating system business through cross deals is impressive,” Al Hilwa, Program Director of Software Development Research at International Data Corp. told SiliconANGLE. “Also impressive is the growth in the app dev subscription business a 48%. This is much higher than what their peers are achieving. That the app dev segment has now reached 16% of Red Hat’s business is a good indication of their shift to a broader portfolio than just operating systems.”

For the next quarter, Wall Street is expecting non-GAAP earnings for $0.46 per share with $513.56 million revenues. Red Hat posted guidance of $519 million to $523 million in revenues for the third quarter.

Red Hat also boosted its annual revenue outlook to the $2.034 billion to $2.044 billion range, with earnings per share of $1.85 to $1.87.

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