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Open source company sees revenue rise 18 per cent year-on-year

Open source giant Red Hat reported a strong end to the year yesterday with revenue jumping 18 per cent year-on-year, boosted by strong bookings and subscriptions growth.

The firm's reported fiscal third quarter revenue came in at $194.3 million (£121.8m), an increase of 18 per cent from the year ago quarter, while subscription revenue for the quarter was $164.4 million (£103.1m), up 21 per cent year-on-year, according to the firm.

Jim Whitehurst, president and chief executive of the firm, argued that continued innovation and customer focus have helped the company achieve such impressive results. "Our double digit growth in the current economic environment was driven by our compelling value proposition and outstanding service," he added.

"We also continued to introduce new products, including the November release of RHEV that advances our position in server virtualisation and cloud computing."

The firm also announced record billings, boosting accounts receivable by $24 million from the same period last year.

"Strong bookings, particularly in North America, led to strong billings and greater than 20 per cent growth in subscription revenue and deferred revenue, as well as further improvement of non-GAAP operating margins," said Charlie Peters, executive vice president and chief financial officer of Red Hat.

"This type of consistent performance, combined with our strong balance sheet, led to our third debt rating upgrade in 20 months by Standard and Poors rating agency."

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