Red Hat Reports Fourth Quarter and Fiscal Year 2016 Results

Mar 22, 2016

Red Hat Reports Fourth Quarter and Fiscal Year 2016 Results
  • Fourth quarter revenue of $544 million, up 17% year-over-year or 21% in constant currency; full fiscal year revenue of $2.05 billion, up 15% year-over-year or 21% in constant currency
  • Fourth quarter subscription revenue of $480 million, up 18% year-over-year or 22% in constant currency; full fiscal year subscription revenue of $1.80 billion, up 16% year-over-year or 22% in constant currency
  • Fourth quarter Application Development-related and other emerging technologies subscription revenue of $89 million, up 38% year-over-year or 43% in constant currency; full fiscal year Application Development-related and other emerging technologies subscription revenue of $323 million, up 37% year-over-year or 46% in constant currency
  • Fourth quarter operating cash flow of $247 million, up 14% year-over-year; full fiscal year operating cash flow of $716 million, up 15% year-over-year
  • Year-end deferred revenue balance of $1.72 billion, up 16% year-over-year

RALEIGH, N.C.--(BUSINESS WIRE)-- Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced financial results for its fiscal fourth quarter and fiscal year ended February 29, 2016.

“Enterprises increasingly adopting hybrid cloud infrastructures and open source technologies drove our strong results. The fourth quarter marked our 56th consecutive quarter of revenue growth, contributing to Red Hat’s first fiscal year crossing $2 billion in total revenue,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “Customers are demanding technologies that modernize the development, deployment and life-cycle management of applications across hybrid cloud environments. Many are relying on Red Hat to provide both the infrastructure and the application development platforms to run their enterprise applications consistently and reliably across physical, virtual, private cloud and public cloud environments.”

“The fourth quarter was a strong close to the year as our results exceeded our guidance. We maintained a high level of execution throughout the fiscal year which contributed to greater than 20% constant currency revenue growth in each quarter. This performance also drove a record backlog of $2.13 billion in U.S. dollars, up 15% year-over-year, and provides us meaningful visibility into future revenue,” stated Frank Calderoni, Executive Vice President, Operations and Chief Financial Officer of Red Hat. “Our business momentum also drove record annual cash flow of $716 million, up 15% and representing the 5th straight year of operating cash flow margin of approximately 35%.”

Revenue: Total revenue for the quarter was $544 million, up 17% in U.S. dollars year-over-year, or 21% measured in constant currency. Constant currency references in this release are detailed in the tables below. Subscription revenue for the quarter was $480 million, up 18% in U.S. dollars year-over-year, or 22% measured in constant currency. Subscription revenue in the quarter was 88% of total revenue.

Full fiscal year 2016 total revenue was $2.05 billion, up 15% in U.S. dollars year-over-year, or 21% measured in constant currency. Subscription revenue for the full fiscal year was $1.80 billion, up 16% in U.S. dollars year-over-year, or 22% measured in constant currency. Subscription revenue in the full fiscal year was 88% of total revenue.

Subscription Revenue Breakout: Subscription revenue from Infrastructure-related offerings for the quarter was $391 million, an increase of 15% in U.S. dollars year-over-year and 18% measured in constant currency. Subscription revenue from Application Development-related and other emerging technologies offerings for the quarter was $89 million, an increase of 38% in U.S. dollars year-over-year and 43% measured in constant currency.

Full fiscal year subscription revenue from Infrastructure-related offerings was $1.48 billion, an increase of 12% in U.S. dollars year-over-year and 18% measured in constant currency. Full fiscal year subscription revenue from Application Development-related and other emerging technologies offerings was $323 million, an increase of 37% in U.S. dollars year-over-year and 46% measured in constant currency.

Operating Income: GAAP operating income for the quarter was $72 million, up 6% year-over-year. After adjusting for non-cash share-based compensation expense, amortization of intangible assets and transaction costs related to business combinations, non-GAAP operating income for the fourth quarter was $124 million, up 13% year-over-year. Non-GAAP references in this release are detailed in the tables below. For the fourth quarter, GAAP operating margin was 13.2% and non-GAAP operating margin was 22.9%.

Full fiscal year GAAP operating income was $288 million, up 15% year-over-year. After adjusting for non-cash share-based compensation expense, amortization of intangible assets and transaction costs related to business combinations, non-GAAP operating income for the full fiscal year was $484 million, up 16% year-over-year. Full fiscal year GAAP operating margin was 14.0% and non-GAAP operating margin was 23.6%.

Net Income: GAAP net income for the quarter was $53 million, or $0.29 per diluted share, compared with $48 million, or $0.26 per diluted share, in the year-ago quarter. After adjusting for non-cash share-based compensation expense, amortization of intangible assets, transaction costs related to business combinations, and non-cash interest expense related to the convertible debt discount, non-GAAP net income for the quarter was $97 million, or $0.52 per diluted share, as compared to $81 million, or $0.43 per diluted share, in the year-ago quarter. Non-GAAP diluted weighted average shares outstanding excludes any dilution resulting from the convertible notes because any potential dilution is expected to be offset by our convertible note hedge transactions. Fourth quarter GAAP EPS included an approximately $0.02 benefit while non-GAAP EPS included an approximately $0.04 benefit associated with a discrete tax item recorded in the quarter.

Full fiscal year GAAP net income was $199 million, or $1.07 per diluted share, compared with $180 million, or $0.95 per diluted share, in the prior fiscal year. After adjusting for non-cash share-based compensation expense, amortization of intangible assets, transaction costs related to business combinations, and non-cash interest expense related to the convertible debt discount, non-GAAP net income for the full fiscal year was $355 million, or $1.91 per diluted share, as compared to $303 million, or $1.60 per diluted share, in the prior fiscal year.

Cash: Operating cash flow was $247 million for the fourth quarter, an increase of 14% on a year-over-year basis. Operating cash flow for the full fiscal year was $716, an increase of 15% compared to the prior fiscal year.

Total cash, cash equivalents and investments as of February 29, 2016 was $2.0 billion after repurchasing approximately $114 million, or approximately 1.6 million shares, of common stock in the fourth quarter. After repurchasing approximately $263 million, or approximately 3.5 million shares, of common stock for the full fiscal year, the remaining balance in the current repurchase authorization as of February 29, 2016 was approximately $237 million.

Deferred revenue and backlog: Total backlog for fiscal year 2016 was in excess of $2.13 billion, up 15% year-over-year. We define total backlog as the value of non-cancellable subscription and service agreements, including total deferred revenue, which is billed, plus the value of non-cancellable subscription and service agreements to be billed in the future not reflected in our financial statements. At the end of the fiscal year, the company’s total deferred revenue balance was $1.72 billion, an increase of 16% year-over-year. The full year negative impact to total deferred revenue from changes in foreign exchange rates was $21 million year-over-year. On a constant currency basis, total deferred revenue would have been up 18% year-over-year. The portion of total backlog to be billed in the future not reflected in our financial statements was in excess of $410 million as of February 29, 2016, compared with the ending balance in excess of $380 million reported for fiscal year 2015. The portion of total backlog to be billed during fiscal year 2017 was in excess of $275 million as of February 29, 2016, compared with in excess of $230 million for the fiscal year ending February 28, 2015.

Outlook: Red Hat’s outlook assumes current business conditions and foreign currency exchange rates. For the full year:

  • Revenue guidance is expected to be $2.380 billion to $2.420 billion in U.S. dollars.
  • Full year GAAP operating margin is expected to be approximately 14.4% and non-GAAP operating margin is expected to be approximately 23.2%.
  • Full year fully-diluted GAAP earnings per share (EPS) is expected to be approximately $1.30 to $1.34 per share. Full year fully-diluted non-GAAP EPS is expected to be approximately $2.22 to $2.26 per share. Both GAAP and non-GAAP EPS assume a $1 million to $2 million per quarter forecast for other income, a 27% annual effective tax rate and 184 million fully-diluted shares outstanding.
  • Operating cash flow guidance range is expected to be approximately $800 million to $820 million.

For the first quarter:

  • Revenue guidance is $558 million to $566 million.
  • GAAP operating margin is expected to be approximately 13.2% and non-GAAP operating margin is expected to be approximately 22.0%.
  • Fully-diluted GAAP EPS is expected to be approximately $0.28 per share. Fully-diluted non-GAAP EPS is expected to be approximately $0.50.

GAAP to non-GAAP reconciliation:

Full year non-GAAP operating margin guidance is derived by subtracting the estimated full year impact of non-cash share-based compensation expense of approximately $180 million and amortization of intangible assets of approximately $29 million. Full year fully-diluted non-GAAP EPS guidance is derived by subtracting the expenses listed in the previous sentence and the full year impact of non-cash interest expense related to the convertible debt discount of approximately $19 million.

First quarter non-GAAP operating margin guidance is derived by subtracting the estimated impact of non-cash share-based compensation expense of approximately $41 million and amortization of intangible assets of approximately $8 million. First quarter fully-diluted non-GAAP EPS guidance is derived by subtracting the expenses listed in the previous sentence and non-cash interest expense related to the convertible debt discount of approximately $5 million.

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements below for information on certain factors that could cause our actual results to differ materially.

Webcast and Website Information

A live webcast of Red Hat's results will begin at 5:00 pm ET today. The webcast, in addition to a copy of our prepared remarks and slides containing financial highlights and supplemental metrics, can be accessed by the general public at Red Hat's investor relations website at http://investors.redhat.com. A replay of the webcast will be available shortly after the live event has ended. Additional information on Red Hat's reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial tables below.

About Red Hat, Inc.

Red Hat is the world's leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As a connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.

Forward-Looking Statements

Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to the ability of the Company to compete effectively; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; delays or reductions in information technology spending; the effects of industry consolidation; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company's growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission's website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this press release.

Red Hat, Red Hat Enterprise Linux, the Shadowman logo, and JBoss are trademarks of Red Hat, Inc., registered in the U.S. and other countries.Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.

 
RED HAT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands - except per share amounts)
                       
 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015 (1)
Revenue:
 
Subscriptions $479,642$405,073$1,803,449$1,561,234
Training and services 63,860 58,869 248,781 228,255
 
 
Total subscription, training and services revenue 543,502 463,942 2,052,230 1,789,489
 
Cost of revenue:
 
Subscriptions 33,575 28,731 126,663 112,856
Training and services 47,645 41,487 182,966 160,343
 
 
Total cost of subscription, training and services revenue 81,220 70,218 309,629 273,199
 
 
Total gross profit 462,282 393,724 1,742,601 1,516,290
 
Operating expense:
Sales and marketing 229,193 189,811 848,950 728,387
Research and development 108,498 92,038 413,322 367,856
General and administrative 52,819 44,267 192,281 170,053
 
 
Total operating expense 390,510 326,116 1,454,553 1,266,296
 
Income from operations 71,772 67,608 288,048 249,994
Interest income 3,189 2,288 11,673 8,336
Interest expense 5,856 5,803 23,121 9,394
Other income (expense), net (337) 4,784 (1,735) 6,562
 
 
Income before provision for income taxes 68,768 68,877 274,865 255,498
Provision for income taxes 15,732 21,177 75,500 75,297
 
Net income $53,036$47,700$199,365$180,201
 
Net income per share:
Basic $0.29$0.26$1.09$0.97
Diluted $0.29$0.26$1.07$0.95
 
Weighted average shares outstanding:
Basic 182,099 183,459 182,817 186,529
Diluted 184,888 186,307 186,119 189,246
 
 
(1) Derived from audited financial statements
 

RED HAT, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands)
             
ASSETS
February 29,February 28,
20162015 (1)
 
Current assets:
Cash and cash equivalents $927,778$1,047,473
Investments in debt and equity securities 281,142 215,254
Accounts receivable, net 509,715 468,021
Prepaid expenses 150,877 150,715
Other current assets 2,921 1,980
 
Total current assets 1,872,433 1,883,443
 
Property and equipment, net 166,886 172,151
Goodwill 1,027,277 927,060
Identifiable intangibles, net 146,071 134,276
Investments in debt securities 786,470 546,016
Deferred tax assets, net 111,456 98,892
Other assets, net 44,506 22,731
 
Total assets $4,155,099$3,784,569
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $284,802$237,733
Deferred revenue 1,272,908 1,095,115
Other current obligations 1,467 1,185
 
Total current liabilities 1,559,177 1,334,033
 
Convertible notes 723,942 702,939
Long term deferred revenue 449,636 387,213
Other long term obligations 87,912 72,046
Stockholders' equity:
Common stock 23 23
Additional paid-in capital 2,162,264 1,963,851
Retained earnings 1,099,738 900,373
Treasury stock, at cost (1,853,144) (1,515,288)
Accumulated other comprehensive loss (74,449) (60,621)
 
Total stockholders' equity 1,334,432 1,288,338
 
Total liabilities and stockholders' equity $4,155,099$3,784,569
 
 
(1) Derived from audited financial statements
 

RED HAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

           
 
Three Months EndedTwelve Months Ended
February 29,   February 28,February 29,     February 28,
2016201520162015 (1)
 
Cash flows from operating activities:
Net income $53,036$47,700$199,365$180,201
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 19,144 19,149 76,088 76,263
Share-based compensation expense 45,768 36,290 166,234 135,232
Deferred income taxes (17,585) 20,392 (13,673) 23,517
Net amortization of bond premium on available-for-sale debt securities 3,378 2,349 12,169 9,314
Accretion of debt discount and amortization of debt issuance costs 5,306 5,142 21,003 8,227
Other 1,657 (2,947) 4,418 (3,474)
Changes in operating assets and liabilities net of effects of acquisitions:
Accounts receivable (112,919) (123,850) (48,404) (121,536)
Prepaid expenses (28,104) (27,239) (24,486) (40,741)
Accounts payable and accrued expenses 58,484 14,865 62,438 71,040
Deferred revenue 220,410 224,738 260,495 282,693
Other (1,122) 795 445 2,059
 
Net cash provided by operating activities 247,453 217,384 716,092 622,795
 
Cash flows from investing activities:
Purchase of available-for-sale debt securities (199,367) (107,482) (982,935) (568,551)
Proceeds from sales and maturities of available-for-sale debt securities 66,491 77,048 655,622 580,158
Acquisition of businesses, net of cash acquired 252 - (126,459) (296,121)
Purchase of other intangible assets (5,870) (2,212) (13,964) (6,123)
Purchase of property and equipment (12,095) (10,563) (41,553) (45,648)
Other 430 8,365 (2,819) 11,282
 
Net cash used in investing activities (150,159) (34,844) (512,108) (325,003)
 
Cash flows from financing activities:
Excess tax benefits from share-based payment arrangements 2,244 710 20,231 5,607
Proceeds from exercise of common stock options 284 1,280 3,596 2,434
Purchase of treasury stock (114,392) - (262,643) (535,062)
Payments related to net settlement of employee share-based compensation awards (6,091) (4,148) (66,907) (43,462)
Proceeds from issuance of convertible notes, net of issuance costs - (625) - 789,769
Purchase of convertible note hedges - - - (148,040)
Proceeds from issuance of warrants - - - 79,776
Payments on other borrowings (491) (390) (1,843) (2,782)
 
Net cash provided by (used in) financing activities (118,446) (3,173) (307,566) 148,240
 
Effect of foreign currency exchange rates on cash and cash equivalents 6,893 (15,883) (16,113) (45,301)
Net increase (decrease) in cash and cash equivalents (14,259) 163,484 (119,695) 400,731
Cash and cash equivalents at beginning of the period 942,037 883,989 1,047,473 646,742
 
Cash and cash equivalents at end of period $927,778$1,047,473$927,778$1,047,473
 
 
(1) Derived from audited financial statements
 

RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS
(Unaudited)
(In thousands - except per share amounts)
                     
 
Non cash share-based compensation expense included in Consolidated Statements of Operations:
 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015
 
Cost of revenue $3,946$3,569$15,898$14,027
Sales and marketing 19,703 15,408 69,089 55,203
Research and development 12,511 10,426 48,466 38,517
General and administration 9,608 6,887 32,781 27,485
Total share-based compensation expense $45,768$36,290$166,234$135,232
 
 
Amortization of intangible assets expense included in Consolidated Statements of Operations:
 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015
 
Cost of revenue $3,434$2,576$11,726$10,672
Sales and marketing 1,730 2,305 8,075 7,838
Research and development (13) 250 842 2,417
General and administration 1,711 1,484 5,160 5,958
Total amortization of intangible assets expense $6,862$6,615$25,803$26,885
 
 

Non-cash interest expense related to the debt discount included in Consolidated Statements of Operations:

 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015
 

Total non-cash interest expense related to the debt discount

$4,686$4,556$18,570$7,292
 
Transaction costs related to business combinations included in Consolidated Statements of Operations:
 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015
 
Transaction costs related to business combinations $40 - $3,884 4,001
 
 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015
 
GAAP net income $53,036$47,700$199,365$180,201
 
Provision for income taxes 15,732 21,177 75,500 75,297
 
GAAP income before provision for income taxes $68,768$68,877$274,865$255,498
 
Add: Non-cash share-based compensation expense 45,768 36,290 166,234 135,232
Add: Amortization of intangible assets 6,862 6,615 25,803 26,885

Add: Non-cash interest expense related to the debt discount

4,686 4,556 18,570 7,292
Add: Transaction costs related to business combinations 40 - 3,884 4,001
 
Non-GAAP adjusted income before provision for income taxes $126,124$116,338$489,356$428,908
 
Provision for income taxes (1) 29,094 35,754 134,431 126,399
 
Non-GAAP adjusted net income (basic and diluted) $97,030$80,584$354,925$302,509
 
Non-GAAP adjusted diluted weighted average shares outstanding:
GAAP diluted weighted average shares outstanding 184,888 186,307 186,119 189,246
Dilution offset from convertible note hedge transactions (67) - (282) -
Non-GAAP diluted weighted average shares outstanding 184,821 186,307 185,837 189,246
 
Non-GAAP adjusted net income per share:
Basic $0.53$0.44$1.94$1.62
Diluted $0.52$0.43$1.91$1.60
 
 
(1) Provision for income taxes:
Non-GAAP adjusted net income before income tax provision $126,124$116,338$489,356$428,908
Estimated annual effective tax rate 23.1% 30.7% 27.5% 29.5%
Provision for income taxes on Non-GAAP adjusted net income $29,094$35,754$134,431$126,399
 

RED HAT, INC.

RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS

(Unaudited)

(In thousands - except per share amounts)

                 
 
 
Reconciliation of GAAP results to non-GAAP adjusted results
 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015
 
GAAP gross profit $462,282$393,724$1,742,601$1,516,290
 
Add: Non-cash share-based compensation expense 3,946 3,569 15,898 14,027
Add: Amortization of intangible assets 3,434 2,576 11,726 10,672
 
Non-GAAP gross profit $469,662$399,869$1,770,225$1,540,989
 
Non-GAAP gross margin 86.4% 86.2% 86.3% 86.1%
 
 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015
 
GAAP operating expenses $390,510$326,116$1,454,553$1,266,296
 
Deduct: Non-cash share-based compensation expense (41,822) (32,721) (150,336) (121,205)
Deduct: Amortization of intangible assets (3,428) (4,039) (14,077) (16,213)
Deduct: Transaction costs related to business combinations (40) - (3,884) (4,001)
 
Non-GAAP adjusted operating expenses $345,220$289,356$1,286,256$1,124,877
 
 
Three Months EndedTwelve Months Ended
February 29,February 28,February 29,February 28,
2016201520162015
 
GAAP operating income $71,772$67,608$288,048$249,994
 
Add: Non-cash share-based compensation expense 45,768 36,290 166,234 135,232
Add: Amortization of intangible assets 6,862 6,615 25,803 26,885
Add: Transaction costs related to business combinations 40 - 3,884 4,001
 
Non-GAAP adjusted operating income $124,442$110,513$483,969$416,112
 
Non-GAAP adjusted operating margin 22.9% 23.8% 23.6% 23.3%
 
 
Three Months Ended  
February 29,February 28,Year-Over-Year
20162015Growth Rate
 
GAAP subscription revenue by offering type
Infrastructure-related offerings $390,706$340,778 14.7%
Adjustment for currency impact $10,497 -
Non-GAAP Infrastructure-related subscription revenue on a constant currency basis $401,203$340,778 17.7%
 
Application development-related and other emerging technology offerings $88,936$64,295 38.3%
Adjustment for currency impact 3,032 -
Non-GAAP Application development-related and other emerging technology subscription revenue on a constant currency basis $91,968$64,295 43.0%
 
GAAP subscription revenue 479,642 405,073 18.4%
Adjustment for currency impact 13,529 -
Non-GAAP subscription revenue on a constant currency basis $493,171$405,073 21.7%
 
GAAP training and services revenue $63,860$58,869 8.5%
Adjustment for currency impact 3,017 -
Non-GAAP training and services revenue on a constant currency basis $66,877$58,869 13.6%
 
GAAP total subscription, training and services revenue $543,502$463,942 17.1%
Adjustment for currency impact 16,546 -
Non-GAAP total subscription, training and services revenue on a constant currency basis $560,048$463,942 20.7%
 
 
Twelve Months Ended  
February 29,February 28,Year-Over-Year
20162015Growth Rate
 
GAAP subscription revenue by offering type
Infrastructure-related offerings $1,480,463$1,324,693 11.8%
Adjustment for currency impact $80,616 -
Non-GAAP Infrastructure-related subscription revenue on a constant currency basis $1,561,079$1,324,693 17.8%
 
Application development-related and other emerging technology offerings $322,986$236,541 36.5%
Adjustment for currency impact 21,714 -

Non-GAAP Application development-related and other emerging technology subscription
revenue on a constant currency basis

$344,700$236,541 45.7%
 
GAAP subscription revenue 1,803,449 1,561,234 15.5%
Adjustment for currency impact 102,330 -
Non-GAAP subscription revenue on a constant currency basis $1,905,779$1,561,234 22.1%
 
GAAP training and services revenue $248,781$228,255 9.0%
Adjustment for currency impact 18,460 -
Non-GAAP training and services revenue on a constant currency basis $267,241$228,255 17.1%
 
GAAP total subscription, training and services revenue $2,052,230$1,789,489 14.7%
Adjustment for currency impact 120,790 -
Non-GAAP total subscription, training and services revenue on a constant currency basis $2,173,020$1,789,489 21.4%
 

RED HAT, INC.
Supplemental Information
(Unaudited)
(In thousands - except per share amounts)
                             
 
Change in deferred revenue balances

Current
Deferred
Revenue

Long Term
Deferred
Revenue

Total
Deferred
Revenue

 
Balance at February 28, 2015 $1,095,115$387,213$1,482,328
Constant currency change in deferred revenue (1) 191,232 69,615 260,847
Impact from foreign currency translation (13,439)       (7,192)       (20,631)
Balance at February 29, 2016 $1,272,908$449,636$1,722,544
 
Year-over-year growth rate 16.2% 16.1% 16.2%
Year-over-year growth rate on a constant currency basis 17.5% 18.0% 17.6%
 
(1) Change in deferred revenue includes approximately $0.4 million acquired as part of business combinations.
 
 
Revenue growth by geographical segment
AmericasEMEAAPACConsolidated
 

Total revenue for the three months ended February 29, 2016

$357,940$115,468$70,094$543,502
Adjustment for currency impact 5,074 8,510 2,962 16,546

Total revenue on a constant currency basis for the three months
ended February 29, 2016

$363,014$123,978$73,056$560,048
 
Total revenue for the three months ended February 28, 2015 $305,481$100,274$58,187$463,942
 
Year-over-year growth rate 17.2% 15.2% 20.5% 17.1%
Year-over-year growth rate on a constant currency basis 18.8% 23.6% 25.6% 20.7%
 
 
Total revenue for the twelve months ended February 29, 2016 $1,354,345$436,304$261,581$2,052,230
Adjustment for currency impact 16,743 75,887 28,160 120,790

Total revenue on a constant currency basis for the twelve months
ended February 29, 2016

$1,371,088$512,191$289,741$2,173,020
 
Total revenue for the twelve months ended February 28, 2015 $1,144,237$410,299$234,953$1,789,489
 
Year-over-year growth rate 18.4% 6.3% 11.3% 14.7%
Year-over-year growth rate on a constant currency basis 19.8% 24.8% 23.3% 21.4%

Red Hat, Inc.
Media Contact:
Stephanie Wonderlick, 571-421-8169
swonderl@redhat.com
or
Investor Relations:
Tom McCallum, 919-754-4630
tmccallum@redhat.com

Source: Red Hat, Inc.