Red Hat Reports Mixed Q4 Earnings

Red Hat Inc (NYSE: RHT) reported a mixed fourth-quarter report after the close Monday.

Earnings came in at $1.16 per share, beating estimates by 15 cents. Sales came in at $879 million, missing estimates by $4.85 million.

"Enterprise organizations are continuing to move to hybrid cloud environments, which is contributing to strong growth in Red Hat's cloud enabling technologies," said CEO Jim Whitehurst.

"Across the portfolio, our total number of customers with active subscriptions greater than $5 million increased 33% year-over-year in fiscal year 2019. Also key to that growth is the increasing number of Ansible and OpenShift customers, which now total more than 1,300 and 1,000, respectively, as of the end of fiscal year 2019."

Q4 Highlights:

• Revenues up 14 percent year over year
• Subscription revenue up 13 percent year over year
• Subscription revenue was 88 percent of total revenue

Red Hat's stock closed Monday's session at $181.46 per share. Shares were little changed in after-hours trading.