Red Hat Inc. (NYSE: RHT) on Monday announced fourth quarter revenue and earnings that beat analysts’ estimates, sending its stock up over 4 percent.
The company said total revenue increased 23 percent to $772 million in the quarter ended February 28, 2018. Most of the revenue came from subscription. Subscription revenue jumped 22 percent to $683 million during the quarter.
The company also said net loss for the quarter was $13 million, or $0.07 lost per share, compared with net income of $66 million, or $0.36 earnings per share, a year earlier.
Excluding certain items, the company earned 0.91 per share in the fourth quarter.
Analysts expected Red Hat to report earnings of 81 cents a share on sales of $761.6 million in the fourth quarter, according to Investor’s Business Daily.
“We are pleased to deliver 21% revenue growth during fiscal year 2018, up from 18% growth in the prior year. In addition, a strong performance in the fourth quarter enabled the company to exit the year with a total backlog increase of 24% year-over-year. We believe our total backlog, along with continued demand for our technologies, will enable us to deliver strong growth in fiscal year 2019,” stated Eric Shander, Executive Vice President and Chief Financial Officer of Red Hat.
Red Hat shares rose 4.7 percent to $160 in early trading on Tuesday.
The company now expected full-year revenue to be $3.425 billion to $3.460 billion.