Red Hat fiscal 1st-quarter profit climbs with increased demand for its open-source software

Red Hat 1Q profit rises with revenue growth

RALEIGH, N.C. — Red Hat Inc. said Tuesday that its fiscal first-quarter profit climbed as demand rose for its open-source software. The company’s adjusted earnings met analyst estimates, while revenue was higher than expected.

For the quarter ended May 31, Red Hat’s net income rose 30 percent to $24.1 million, or 12 cents per share, from $18.5 million, or 10 cents per share, in the same quarter a year earlier.

When excluding one-time items, Red Hat earned 18 cents per share, matching estimates of analysts polled by Thomson Reuters.

Revenue rose 20 percent to $209.1 million, beating analysts’ estimate of 202.9 million. Subscription revenue rose 20 percent to $179.1 million, while training and services revenue climbed nearly 18 percent to $30.1 million.

Red Hat shares fell 72 cents, or 2.3 percent, to $30.86 during regular trading.