Red Hat Fiscal 2015 Revenue $1.79 Billion: OpenStack and OpenShift Leading the Way
Red Hat reported its fourth quarter and full year fiscal 2015 earnings on March 25, once again showing continued growth across its entire software portfolio.
Red Hat's CEO Jim Whitehurst emphasized the importance of cross-selling Linux platform, cloud application development and platform-as-a-service (PaaS) technologies as key reasons for his company's continued success.
For the fourth quarter, Red Hat reported revenue of $464 million, for a 16 percent year-over-year gain. For the full fiscal 2015 year, Red Hat's revenues came in at $1.79 billion, for a 17 percent year-over year again. Red Hat reported fourth quarter net income of $48 million and full year net income of $180 million.
Looking forward, Red Hat has provided first quarter fiscal 2016 guidance for revenue in the range of $469 million to $474 million.
When Red Hat got started as a company, the Linux platform was all the company sold. Red Hat has long since expanded beyond just being an operating system vendor, and now additionally offers application development, cloud and storage products.
"Cross selling was strong with a record 80 percent of the deals including one or more components from our application development in emerging technologies offerings, which include Middleware, OpenStack, OpenShift, CloudForms and Storage," Whitehurst said during his company's earnings call.
OpenStack and OpenShift Showing Strong Growth
Looking specifically at Infrastructure-as-a-Service (IaaS) with OpenStack and Platform-as-a-Service with OpenShift, Red Hat is doing particularly well.
"In fact, the number of top 30 deals that included OpenStack or OpenShift this quarter tripled from Q4 a year ago," Whitehurst said. "Interestingly, one technology customer expanded their existing OpenShift deal this quarter and we now have our first $10 million-plus OpenShift customer."
OpenStack is also growing thanks in part to a pair of acquisitions that Red Hat completed during its fiscal 2015. Red Hat acquired Ceph storage vendor Inktank in April 2014 for $175 million and OpenStack vendor eNovance in June for $95 million.
"We are seeing a lot of cross benefit with the storage in OpenStack; in fact half of our OpenStack wins in the quarter are six-figure OpenStack wins with Ceph as a component," Whitehurst said. "So there is a strong affinity between OpenStack and Ceph, and our ability to be a credible provider of both, I think helps us do well in both."
In terms of eNovance, Whitehurst said the acquisition has provided Red Hat with capabilities that have helped the company win business thanks to new resources around deployment as well as credibility in being able to build and run those clouds.
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