- First quarter total revenue of $814
million, up 20% year-over-year, or 17% in constant currency
- First quarter Application
Development-related and other emerging technology subscription
revenue of $189 million, up 37% year-over-year, or 32% in constant
currency
- First quarter operating cash flow of
$346 million, up 34% year-over-year
- Quarter-end deferred revenue balance of
$2.4 billion, up 19% year-over-year
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open
source solutions, today announced financial results for the first
quarter of fiscal year 2019 ended May 31, 2018.
“The move to hybrid cloud architecture continues to be a
strategic priority for our customers. We again delivered strong
revenue growth in Q1 as customers continued to adopt our cloud
enabling technologies for their applications,” stated Jim
Whitehurst, President and Chief Executive Officer of Red Hat. “For
instance, we are driving strong growth in both subscription and
services revenues for our OpenShift technologies as more customers
modernize their applications in Linux containers for their hybrid
cloud and digital transformation initiatives.”
“The first quarter of FY19 started as expected with double digit
year-over-year growth across a number of our financial metrics,
including 20% total revenue growth in U.S. dollars or 17% measured
in constant currency, 25% growth in GAAP operating income, 19%
growth in non-GAAP operating income, and 34% growth in operating
cash flow. In addition, we also drove 48% year-over-year growth in
the number of deals over one million dollars in the quarter which
is evidence of our ability to expand our technology footprint with
customers,” stated Eric Shander, Executive Vice President and Chief
Financial Officer of Red Hat. “As in March when we gave our annual
guidance, we continue to expect strong demand for our hybrid cloud
enabling technologies. Given the headwinds that have developed in
foreign exchange rates since that time, we are adjusting our full
year total revenue guidance by approximately $50 million, solely to
account for the change in FX rates.”
On March 1, 2018, we adopted Financial Accounting Standards
Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, Revenue
from Contracts with Customers, now commonly referred to as
Accounting Standards Codification Topic 606 (“ASC 606”), using the
full retrospective method of transition, which requires that the
standard be applied to all periods presented. The adoption of ASC
606 did not materially impact our total revenues as previously
reported for fiscal years 2018 and 2017 and it had no impact on net
cash provided by or used in operating, investing or financing
activities. The primary impact of adopting ASC 606 relates to the
deferral of incremental commission and other costs of obtaining
contracts with customers. Previously, we deferred only direct and
incremental commission costs to obtain a contract and amortized
those costs over the contract term as the revenue was recognized
and, under the new standard, we now also defer related fringe
benefit costs. The results in this Press Release apply these
changes to the current period and adjust prior periods, which are
detailed in the Supplemental Information section of the Press
Release.
Revenue: Total revenue for the quarter was $814 million,
up 20% in USD year-over-year, or 17% measured in constant currency.
Constant currency references in this release are detailed in the
tables below. Subscription revenue for the quarter was $712
million, up 19% in USD year-over-year, or 16% measured in constant
currency. Subscription revenue in the quarter was 87% of total
revenue.
Subscription Revenue Breakout: Subscription revenue from
Infrastructure-related offerings for the quarter was $522 million,
an increase of 14% in USD year-over-year, or 11% measured in
constant currency. Subscription revenue from Application
Development-related and other emerging technology offerings for the
quarter was $189 million, an increase of 37% in USD year-over-year,
or 32% measured in constant currency.
Operating Income: GAAP operating income for the quarter
was $112 million, up 25% year-over-year. After adjusting for
non-cash share-based compensation expense, amortization of
intangible assets, and transaction costs related to business
combinations, non-GAAP operating income for the first quarter was
$168 million, up 19% year-over-year. For the first quarter, GAAP
operating margin was 13.8% and non-GAAP operating margin was 20.7%.
Non-GAAP references in this release are detailed in the tables
below.
Net Income: GAAP net income for the quarter was $113
million, or $0.59 diluted earnings per share (“EPS”), compared with
GAAP net income of $75 million, or $0.41 diluted EPS, in the
year-ago quarter.
After adjusting for non-cash share-based compensation expense,
amortization of intangible assets, transaction costs related to
business combinations and non-cash interest expense related to the
debt discount, non-GAAP net income for the quarter was $133
million, or $0.72 diluted EPS, as compared to $104 million, or
$0.58 diluted EPS, in the year-ago quarter. Non-GAAP diluted
weighted average shares outstanding excludes dilution that is
expected to be offset by our convertible note hedge
transactions.
Cash: Operating cash flow was $346 million for the first
quarter, an increase of 34% on a year-over-year basis. Total cash,
cash equivalents and investments as of May 31, 2018 was $2.5
billion after repurchasing approximately $150 million, or 949,000
shares, of common stock in the first quarter. The remaining balance
in the current repurchase authorization as of May 31, 2018 was
approximately $249 million.
Deferred revenue: At the end of the first quarter, the
company’s total deferred revenue balance was $2.4 billion, an
increase of 19% year-over-year. The positive impact to total
deferred revenue from changes in foreign exchange rates was $16
million year-over-year. On a constant currency basis, total
deferred revenue would have been up 18% year-over-year.
Outlook: Red Hat’s outlook assumes current business
conditions and current foreign currency exchange rates.
For the full year:
- Revenue is expected to be approximately
$3.375 billion to $3.410 billion in USD.
- GAAP operating margin is expected to be
approximately 16.4% and non-GAAP operating margin is expected to be
approximately 23.9%.
- Diluted GAAP EPS is expected to be
approximately $2.36 to $2.40, assuming 191 million diluted shares
outstanding. Diluted non-GAAP EPS is expected to be approximately
$3.44 to $3.48, assuming 185 million diluted shares outstanding.
Both GAAP and non-GAAP EPS assume a $4 million per quarter forecast
for other income and an estimated annual effective tax rate of
approximately 22.5% before discrete tax items.
- Operating cash flow is expected to be
approximately $1.035 billion to $1.045 billion.
For the second quarter:
- Revenue is expected to be approximately
$822 to $830 million in USD.
- GAAP operating margin is expected to be
approximately 15.1% and non-GAAP operating margin is expected to be
approximately 23.0%.
- Diluted GAAP EPS is expected to be
approximately $0.50, assuming 191 million diluted shares
outstanding. Diluted non-GAAP EPS is expected to be approximately
$0.81, assuming 185 million diluted shares outstanding. Both GAAP
and non-GAAP EPS assume a $4 million forecast for other income and
an estimated annual effective tax rate of 22.5% before discrete tax
items.
GAAP to non-GAAP reconciliation:
Full year non-GAAP operating margin guidance is derived by
subtracting the estimated full year impact of non-cash share-based
compensation expense of approximately $215 million and amortization
of intangible assets of approximately $39 million. Full year
diluted non-GAAP EPS guidance is derived by subtracting the
expenses listed in the previous sentence and the full year impact
of non-cash interest expense related to the debt discount of
approximately $20 million and an estimated annual effective tax
rate of approximately 22.5% before discrete tax items.
Additionally, full year diluted non-GAAP EPS excludes approximately
$46 million of discrete tax benefits related to share-based
compensation that are included in full year diluted GAAP EPS. Full
year diluted non-GAAP EPS excludes approximately 6 million diluted
shares related to the convertible notes, which are expected to be
offset by our convertible note hedge transactions.
Second quarter non-GAAP operating margin guidance is derived by
subtracting the estimated impact of non-cash share-based
compensation expense of approximately $55 million and amortization
of intangible assets of approximately $10 million. Second quarter
diluted non-GAAP EPS guidance is derived by subtracting the
expenses listed in the previous sentence and non-cash interest
expense related to the debt discount of approximately $5 million
and an estimated annual effective tax rate of 22.5% before discrete
tax items. Additionally, second quarter diluted non-GAAP EPS
excludes approximately $7 million of discrete tax benefits related
to share-based compensation that are included in second quarter
diluted GAAP EPS. Second quarter diluted non-GAAP EPS excludes
approximately 6 million diluted shares related to the convertible
notes, which are expected to be offset by our convertible note
hedge transactions.
Webcast and Website Information
A live webcast of Red Hat's results will begin at 5:00 pm ET
today. The webcast, in addition to a copy of our prepared remarks
and slides containing financial highlights and supplemental
metrics, can be accessed by the general public at Red Hat's
investor relations website at http://investors.redhat.com. A replay
of the webcast will be available shortly after the live event has
ended. Additional information on Red Hat's reported results,
including a reconciliation of the non-GAAP adjusted results, are
included in the financial tables below.
About Red Hat, Inc.
Red Hat is the world's leading provider of open source software
solutions, using a community-powered approach to provide reliable
and high-performing cloud, Linux, middleware, storage and
virtualization technologies. Red Hat also offers award-winning
support, training, and consulting services. As a connective hub in
a global network of enterprises, partners, and open source
communities, Red Hat helps create relevant, innovative technologies
that liberate resources for growth and prepare customers for the
future of IT. Learn more at http://www.redhat.com.
Forward-Looking Statements
Certain statements contained in this press release may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements provide current expectations of future events based on
certain assumptions and include any statement that does not
directly relate to any historical or current fact. Actual results
may differ materially from those indicated by such forward-looking
statements as a result of various important factors, including:
risks related to the ability of the Company to compete effectively;
the ability to deliver and stimulate demand for new products and
technological innovations on a timely basis; delays or reductions
in information technology spending; the integration of acquisitions
and the ability to market successfully acquired technologies and
products; risks related to errors or defects in our offerings and
third-party products upon which our offerings depend; risks related
to the security of our offerings and other data security
vulnerabilities; fluctuations in exchange rates; the effects of
industry consolidation; uncertainty and adverse results in
litigation and related settlements; the inability to adequately
protect Company intellectual property and the potential for
infringement or breach of license claims of or relating to third
party intellectual property; changes in and a dependence on key
personnel; the ability to meet financial and operational challenges
encountered in our international operations; and ineffective
management of, and control over, the Company's growth and
international operations, as well as other factors contained in our
most recent Annual Report on Form 10-K (copies of which may be
accessed through the Securities and Exchange Commission's website
at http://www.sec.gov), including those found therein under the
captions "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations." In addition to
these factors, actual future performance, outcomes, and results may
differ materially because of more general factors including
(without limitation) general industry and market conditions and
growth rates, economic and political conditions, governmental and
public policy changes and the impact of natural disasters such as
earthquakes and floods. The forward-looking statements included in
this press release represent the Company's views as of the date of
this press release and these views could change. However, while the
Company may elect to update these forward-looking statements at
some point in the future, the Company specifically disclaims any
obligation to do so. These forward-looking statements should not be
relied upon as representing the Company's views as of any date
subsequent to the date of this press release.
Red Hat and the Shadowman logo are trademarks or registered
trademarks of Red Hat, Inc. or its subsidiaries in the U.S. and
other countries. Linux® is the registered trademark of Linus
Torvalds in the U.S. and other countries.
RED HAT, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(In thousands - except per share
amounts)
Three Months Ended May 31,
May 31,
2018
2017 (1)
Revenue: Subscriptions $ 711,521 $ 596,508 Training and services
102,009 80,288 Total revenue 813,530 676,796
Cost of revenue: Subscriptions 52,173 43,633 Training
and services 70,526 57,063 Total cost of revenue
122,699 100,696 Gross profit 690,831 576,100
Operating expense: Sales and marketing 348,815 294,323
Research and development 166,506 137,163 General and administrative
63,354 54,870 Total operating expense 578,675
486,356 Income from operations 112,156 89,744
Interest income 7,834 3,993 Interest expense 6,319 6,085 Other
expense, net (2,194 ) (586 ) Income before provision
for income taxes 111,477 87,066 (Benefit) provision for income
taxes (1,713 ) 11,752 Net income $ 113,190 $ 75,314
Net income per share: Basic $ 0.64 $ 0.42 Diluted $
0.59 $ 0.41 Weighted average shares outstanding: Basic 177,302
177,243 Diluted 190,739 181,810
(1) As adjusted to reflect the impact of the retrospective
application of ASC 606.
RED HAT, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
May 31,2018
February 28,2018 (1)
ASSETS Current assets: Cash, cash equivalents and restricted
cash $ 1,768,480 $ 1,724,132 Investments in debt and equity
securities, short-term 329,872 318,358 Accounts receivable, net
498,964 806,744 Prepaid expenses 247,175 267,197 Other current
assets 61,123 25,666 Total current assets 2,905,614
3,142,097 Property and equipment, net 196,653 206,105
Goodwill 1,278,708 1,288,830 Identifiable intangibles, net 220,176
224,953 Investments in debt securities, long-term 428,777 430,442
Deferred tax assets, net 82,826 92,606 Other assets, net 78,807
89,460 Total assets $ 5,191,561 $ 5,474,493
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities: Accounts payable and accrued expenses $
359,706 $ 427,139 Deferred revenue, short-term 1,721,300 1,853,719
Other current obligations 685 843 Convertible notes 194,544
23,806 Total current liabilities 2,276,235 2,305,507
Deferred revenue, long-term 723,207 741,453 Convertible notes
554,503 744,194 Other long-term obligations 205,672 205,215
Stockholders’ equity: Common stock 24 24 Additional paid-in capital
2,399,925 2,416,080 Retained earnings 1,733,270 1,619,688 Treasury
stock, at cost (2,657,774 ) (2,525,072 ) Accumulated other
comprehensive loss (43,501 ) (32,596 ) Total stockholders’ equity
1,431,944 1,478,124 Total liabilities and
stockholders’ equity $ 5,191,561 $ 5,474,493
(1) Derived from audited financial statements except for line
items adjusted by the retrospective application of ASC 606.
RED HAT, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
(In thousands)
Three Months Ended May 31,
May 31, 2018 2017 (1) Cash flows from
operating activities: Net income $ 113,190 $ 75,314 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 27,054 21,817 Amortization of debt
discount and transaction costs 5,838 5,540 Deferred income taxes
(3,395 ) 7,917 Share-based compensation expense 46,005 43,718 Net
amortization of bond premium on debt securities available for sale
743 2,436 Other 1,097 961 Changes in operating assets and
liabilities: Accounts receivable 299,439 208,761 Other receivables
(35,160 ) (19,397 ) Prepaid expenses 25,382 12,024 Accounts payable
and accrued expenses (28,642 ) (55,326 ) Deferred revenue (104,592
) (45,717 ) Other (800 ) (176 ) Net cash provided by
operating activities 346,159 257,872 Cash
flows from investing activities: Purchase of investment in debt
securities available for sale (108,336 ) (149,524 ) Proceeds from
maturities of investment in debt securities available for sale
87,004 112,041 Proceeds from sales of investment in debt securities
available for sale 525 14,324 Proceeds from sales of strategic
equity investments 1,300 — Purchase of developed software and other
intangible assets (2,866 ) (1,774 ) Purchase of property and
equipment (12,963 ) (25,900 ) Other (986 ) — Net cash used
in investing activities (36,322 ) (50,833 ) Cash
flows from financing activities: Proceeds from exercise of common
stock options 875 2,968 Proceeds from employee stock purchase
program 15,262 11,761 Payments related to net settlement of
share-based compensation awards (77,094 ) (41,010 ) Purchase of
treasury stock (150,019 ) (61,987 ) Payments on other borrowings
(299 ) (443 ) Repayments of convertible notes (25,953 ) —
Net cash used in financing activities (237,228 ) (88,711 )
Effect of foreign currency exchange rates on cash, cash
equivalents and restricted cash (28,261 ) 21,321 Net
increase in cash, cash equivalents and restricted cash 44,348
139,649 Cash, cash equivalents and restricted cash at beginning of
the period 1,724,132 1,090,808 Cash, cash equivalents
and restricted cash at end of the period $ 1,768,480 $
1,230,457
(1) As adjusted to reflect the impact of the retrospective
application of ASC 606.
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS
TO NON-GAAP ADJUSTED RESULTS
(Unaudited)
(In thousands - except per share
amounts)
Three Months Ended May 31,
May 31, 2018 2017 (1)
Reconciliation items included in Consolidated Statements of
Operations: Non-cash share-based compensation expense:
Cost of revenue $ 5,128 $ 3,948 Sales and marketing 19,520 20,612
Research and development 14,782 13,447 General and administrative
6,575 5,711 Total share-based compensation expense $
46,005 $ 43,718 Amortization of intangible
assets expense: Cost of revenue $ 6,141 $ 3,836 Sales and marketing
1,362 1,459 Research and development 34 34 General and
administrative 2,373 1,826 Total amortization of
intangible assets expense $ 9,910 $ 7,155
Total non-cash interest expense related to the debt discount $
5,007 $ 4,867 Transaction costs related to
business combinations $ 11 $ 142
Reconciliation of GAAP results to non-GAAP adjusted results:
GAAP net income $ 113,190 $ 75,314 GAAP provision for income
taxes (1,713 ) 11,752 GAAP income before provision for
income taxes $ 111,477 $ 87,066 Add: Non-cash share-based
compensation expense 46,005 43,718 Add: Amortization of intangible
assets expense 9,910 7,155 Add: Non-cash interest expense related
to the debt discount 5,007 4,867 Add: Transaction costs related to
business combinations 11 142 Non-GAAP adjusted income
before provision for income taxes $ 172,410 $ 142,948 Non-GAAP
provision for income taxes (2) 39,302 38,702 Non-GAAP
adjusted net income (basic and diluted) $ 133,108 $ 104,246
Non-GAAP adjusted diluted weighted average shares
outstanding: GAAP diluted weighted average shares outstanding
190,739 181,810 Dilution offset from convertible note hedge
transactions (5,686 ) (1,593 ) Non-GAAP diluted weighted
average shares outstanding 185,053 180,217
Non-GAAP adjusted net income per share: Basic $ 0.75 $ 0.59 Diluted
$ 0.72 $ 0.58
(1) As adjusted to reflect the impact of the retrospective
application of ASC 606.
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS
TO NON-GAAP ADJUSTED RESULTS
(Unaudited)
(In thousands)
Three Months Ended May 31,
May 31, 2018 2017 (1)
(2) Non-GAAP provision for income
taxes:
Non-GAAP adjusted income before provision for income taxes $
172,410 $ 142,948 GAAP estimated annual effective tax rate 22.5 %
26.8 % Provision for income taxes on non-GAAP adjusted income
before discrete tax benefits $ 38,792 $ 38,310 Discrete tax expense
(benefit), excluding discrete benefits related to share-based
compensation 510 392 Provision for income taxes on
non-GAAP adjusted income, excluding impact from discrete tax
benefits related to share-based compensation $ 39,302 $
38,702 GAAP gross profit $ 690,831 $ 576,100 Add:
Non-cash share-based compensation expense 5,128 3,948 Add:
Amortization of intangible assets expense 6,141 3,836
Non-GAAP gross profit $ 702,100 $ 583,884
Non-GAAP gross margin 86.3 % 86.3 % GAAP operating expenses
$ 578,675 $ 486,356 Deduct: Non-cash share-based compensation
expense (40,877 ) (39,770 ) Deduct: Amortization of intangible
assets expense (3,769 ) (3,319 ) Deduct: Transaction costs related
to business combinations (11 ) (142 ) Non-GAAP adjusted operating
expenses $ 534,018 $ 443,125 GAAP operating
income $ 112,156 $ 89,744 Add: Non-cash share-based compensation
expense 46,005 43,718 Add: Amortization of intangible assets
expense 9,910 7,155 Add: Transaction costs related to business
combinations 11 142 Non-GAAP adjusted operating
income $ 168,082 $ 140,759 Non-GAAP adjusted
operating margin 20.7 % 20.8 %
(1) As adjusted to reflect the impact of the retrospective
application of ASC 606.
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS
TO NON-GAAP ADJUSTED RESULTS
(Unaudited)
(In thousands)
Three Months Ended May 31,
May 31, Year-Over-Year 2018
2017 Growth Rate Subscription and services
revenue: GAAP subscription revenue by offering type:
Infrastructure-related offerings $ 522,402 $ 457,961 14.1 %
Adjustment for currency impact (13,938 ) — Non-GAAP
Infrastructure-related subscription revenue on a constant currency
basis $ 508,464 $ 457,961 11.0 % Application
Development-related and other emerging technology offerings $
189,119 $ 138,547 36.5 % Adjustment for currency impact (6,130 ) —
Non-GAAP Application Development-related and other emerging
technology subscription revenue on a constant currency basis $
182,989 $ 138,547 32.1 % GAAP subscription revenue $ 711,521
$ 596,508 19.3 % Adjustment for currency impact (20,068 ) —
Non-GAAP subscription revenue on a constant currency basis $
691,453 $ 596,508 15.9 % GAAP training and services revenue
$ 102,009 $ 80,288 27.1 % Adjustment for currency impact (2,450 ) —
Non-GAAP training and services revenue on a constant
currency basis $ 99,559 $ 80,288 24.0 % GAAP total revenue $
813,530 $ 676,796 20.2 % Adjustment for currency impact (22,518 ) —
Non-GAAP total revenue on a constant currency basis $
791,012 $ 676,796 16.9 %
RED HAT, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)
(In thousands)
Change in deferred revenue balances:
Deferred Revenue Current Long-Term
Total Balance at May 31, 2017 $ 1,486,409 $ 567,755 $
2,054,164 Constant currency change in deferred revenue 221,272
152,893 374,165 Impact from foreign currency translation 13,619
2,559 16,178 Balance at May 31, 2018 $
1,721,300 $ 723,207 $ 2,444,507
Year-over-year growth rate 15.8 % 27.4 % 19.0 % Year-over-year
growth rate on a constant currency basis 14.9 % 26.9 % 18.2 %
Revenue growth by geographical
segment:
Americas EMEA APAC
Consolidated Total revenue for the three months ended May
31, 2018 $ 500,306 $ 195,148 $ 118,076 $ 813,530 Adjustment for
currency impact 1,970 (21,041 ) (3,447 ) (22,518 ) Total
revenue on a constant currency basis for the three months ended May
31, 2018 $ 502,276 $ 174,107 $ 114,629 $
791,012 Total revenue for the three months ended May
31, 2017 $ 438,380 $ 143,671 $ 94,745 $
676,796 Year-over-year growth rate 14.1 % 35.8 % 24.6
% 20.2 % Year-over-year growth rate on a constant currency basis
14.6 % 21.2 % 21.0 % 16.9 %
RED HAT, INC.SUPPLEMENTAL
INFORMATION(Unaudited)(In thousands - except per share
amounts)
The primary impact of adopting ASC 606 related to the deferral
of incremental commission and other costs of obtaining contracts
with customers. Certain unaudited financial statement information
as adjusted to reflect the Company’s adoption of ASC 606 is set
forth below. The adjustments resulting from ASC 606 are reflected
in presentations of both GAAP and non-GAAP financial
information.
Consolidated balance sheets:
February 28, 2018 As Reported (1)
Adjustments As Adjusted Prepaid
expenses $ 260,092 $ 7,105 $ 267,197 Deferred tax assets, net $
93,300 $ (694 ) $ 92,606 Other assets, net $ 87,924 $ 1,536 $
89,460 Accounts payable and accrued expenses $ 427,086 $ 53 $
427,139 Retained earnings $ 1,611,794 $ 7,894 $ 1,619,688
(1) Derived from audited financial statements.
Consolidated statements of operations:
Three Months Ended May 31, 2017
As Reported Adjustments As
Adjusted Operating expense: Sales and marketing $ 296,459 $
(2,136 ) $ 294,323 Net income $ 73,190 $ 2,124 $ 75,314 Net income
per share: Basic $ 0.41 $ 0.01 $ 0.42 Diluted $ 0.40 $ 0.01 $ 0.41
Three Months Ended August 31,
2017 As Reported Adjustments As
Adjusted Operating expense: Sales and marketing $ 278,548 $
(231 ) $ 278,317 Net income $ 96,859 $ 229 $ 97,088 Net income per
share: Basic $ 0.55 $ — $ 0.55 Diluted $ 0.53 $ — $ 0.53
Three Months Ended November 30,
2017 As Reported Adjustments As
Adjusted Operating expense: Sales and marketing $ 308,388 $
(305 ) $ 308,083 Net income $ 101,306 $ 303 $ 101,609 Net income
per share: Basic $ 0.57 $ — $ 0.57 Diluted $ 0.54 $ 0.01 $ 0.55
RED HAT, INC.
SUPPLEMENTAL INFORMATION
(Unaudited)
(In thousands - except per share
amounts)
Three Months
Ended February 28, 2018 As Reported Adjustments
As Adjusted Operating expense: Sales and marketing $ 315,181
$ (618 ) $ 314,563 Net income $ (12,552 ) $ 392 $ (12,160 ) Net
income per share: Basic $ (0.07 ) $ — $ (0.07 ) Diluted $ (0.07 ) $
— $ (0.07 )
Twelve Months Ended
February 28, 2018
As Reported (1) Adjustments
As Adjusted Operating expense: Sales and marketing $
1,198,576 $ (3,290 ) $ 1,195,286 Net income $ 258,803 $ 3,048 $
261,851 Net income per share: Basic $ 1.46 $ 0.02 $ 1.48 Diluted $
1.40 $ 0.02 $ 1.42
(1) Derived from audited financial statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180621005947/en/
Media Contact:Red Hat, Inc.Stephanie Wonderlick,
571-421-8169swonderl@redhat.comorInvestor Relations:Red Hat,
Inc.Tom McCallum, 919-754-4630tmccallum@redhat.com
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