Red Hat (RHT 110.16, +4.40) has climbed 4.2% after beating quarterly expectations and boosting its guidance for the full year.
The software company reported above-consensus second quarter earnings of $0.77 per share on a 20.6% year-over-year increase in revenue to $723.60 million, which also exceeded expectations.
Subscription revenue grew 20.0% year-over-year to $638 million, which represented 88.2% of total revenue. Revenue from infrastructure-related offerings grew 14.0% year-over-year to $487 million while revenue from application development-related offerings and other emerging technology offerings grew 44.0% to $150 million.
Deferred revenue at the end of the quarter totaled $2.05 billion, representing 22.0% year-over-year growth.
Looking ahead, Red Hat expects in-line third quarter earnings of $0.70 per share on above-consensus revenue between $730 million and $737 million. The company raised its full year guidance, expecting earnings between $2.77 and $2.89 per share, up from expectations for earnings between $2.66 to $2.70 per share. The company expects that full year sales will be between $2.880 billion and $2.895 billion, up from previous guidance for sales between $2.785 billion to $2.825 billion.