Open source company Red Hat has ended its fourth quarter with revenue of US$629 million, a 16% rise year-on-year, according to figures released overnight.
For the fiscal year that ended on 28 February, Red Hat recorded revenue of US$2.4 billion, an 18% year-on-year increase. This is the second year running that the company's full-year revenue has crossed US$2 billion.
Of its revenue, a majority was from subscriptions: US$560 million for the quarter and US$2.1 billion for the full year.
Profit-wise, the quarter ended with US$66 million while for the full year the figure was US$266 million.
{loadposition sam08}Red Hat president and chief executive Jim Whitehurst (below, right) said: "We closed the year with an exceptional performance. The fourth quarter marked our 60th consecutive quarter of revenue growth, and we crossed the US$2 billion milestone in subscription revenue and total deferred revenue for the fiscal year.
“As customers embrace digital transformation, they are turning to Red Hat as a strategic partner to deliver solutions that can help them realise the benefits of these initiatives.
"Enterprises and service providers are increasingly adopting hybrid cloud infrastructures and open source technologies, which is fuelling our growth and positioning Red Hat for the long-term.”
Acting chief financial officer Eric Shander said the company's strategic position with customers was evidenced by the continued growth in large commitments.
"The number of deals greater than US$1 million in fiscal 2017 grew by more than 30% annually, and we closed a record number of deals over US$20 million, including our first-ever deal of approximately US$100 million in the fourth quarter.
“This performance also drove a record backlog of US$2.7 billion, up 28% year-over-year which contributes to our fiscal year 2018 revenue outlook of 13% to 14% growth and should help drive expanded GAAP operating margin of 15.2% and non-GAAP operating margin of 23.6%."