Red Hat Grows Million-Dollar Linux Deals
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For the quarter, Red Hat reported revenue of $290 million, which is a 23 percent year-over-year gain. Net income hit $38.2 million or $0.19 per share, up from $26 million or $0.13 per share last year. Moving forward, Red Hat provided fourth-quarter guidance for revenue to be in the range of approximately $289 million to $292 million.
Growth is coming from multiple areas of the company and thanks in no small part to a large number of big deals.
"For the fourth consecutive quarter, we set a record for deals over $1 million," Red Hat CFO Charlie Peters said during the company's earnings call. "27 of the top 30 deals in the quarter exceeded $1 million, a 69 percent increase over Q3 of last fiscal year, and five deals exceeded $5 million, a new quarterly record."
Those big deal aren't just about Red Hat Enterprise Linux, they're also about JBoss. Peters noted that approximately 40 percent of Red Hat's top deals include a middleware component, and four deals were actually standalone middleware deals over $1 million.
In terms of who is buying those million dollar Red Hat deployments, Peters said that the three largest verticals in the top 30 deals were financial services, technology and governments around the world.
"We continue to see large deals and growth potential across a number of verticals, including those that are facing greater macro challenges," Peters said.