Red Hat, Inc. (NYSE: RHT), which is the leading provider of open source solutions, announced its financial results for the first quarter of fiscal year 2018. Shares of the company jumped over 9% in after-hours trading Tuesday after the earnings report.
According to the company, total revenue for the first quarter was up 19% year-over-year to $677 million, beating estimates of $647.8 million. The increase in revenue was motivated by strong subscription revenues and cross-selling of cloud-enabled technology. Adjusted earnings per share was $0.40 per share, beating estimates of $0.06 per share. Adjusted earnings, excluding share-based compensation was up 12.8% to $0.56 per share, surpassing the expected range of $0.52-$0.53 per share.
For the full year 2018, the company expected revenue to be between $2.785 billion and $2.825 billion, and fully diluted GAAP EPS is expected to be between $1.76 and $1.80 per share. For the second quarter, revenue is expected to be between $695 million and $702 million, and fully diluted GAAP EPS is expected to be around $0.43 per share.
“The first quarter was a strong start to FY18, with double digit growth across a number of our financial metrics, including 19% total revenue growth in U.S. dollars or 20% measured in constant currency and over 40% growth in our Application Development-related and other emerging technology revenue,” Jim Whitehurst, the President and Chief Executive Officer of Red Hat, said in the statement.
“The strength of the first quarter results was driven in part by robust global demand for our technologies and increased commitments from our largest customers,” Eric Shander, Executive Vice President and Chief Financial Officer of Red Hat, said in the statement.