Red Hat Reports Third Quarter Results For Fiscal Year 2018

Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced financial results for the third quarter of fiscal year 2018 ended November 30, 2017.

"We again delivered over 20% year-over-year growth in both subscription revenue and total revenue due to strong customer demand for hybrid cloud technologies, including our core technologies, container platforms and solutions that enable and manage multiple cloud and private cloud environments," stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. "Our growing strategic position within enterprise IT organizations is evidenced by the strong cross selling of our broad portfolio of technologies, which led to 30% year-over-year growth in deals over $1 million and over 40% growth in Application Development-related and other emerging technology subscription revenue."

"In the third quarter, strong execution contributed to a powerful combination of 22% total revenue growth, 47% GAAP operating income growth, 25% non-GAAP operating income growth, and 18% operating cash flow growth," stated Eric Shander, Executive Vice President and Chief Financial Officer of Red Hat. "Based on our third quarter results, we anticipate exiting the fiscal year with an annualized run-rate of approximately $3 billion for total revenue."

Revenue: Total revenue for the quarter was $748 million, up 22% in USD year-over-year, or 20% measured in constant currency. Constant currency references in this release are detailed in the tables below. Subscription revenue for the quarter was $657 million, up 21% in USD year-over-year, or 19% measured in constant currency. Subscription revenue in the quarter was 88% of total revenue.

Subscription Revenue Breakout: Subscription revenue from Infrastructure-related offerings for the quarter was $495 million, an increase of 15% in USD year-over-year, or 14% measured in constant currency. Subscription revenue from Application Development-related and other emerging technology offerings for the quarter was $162 million, an increase of 44% in USD year-over-year, or 42% measured in constant currency.

Operating Income: GAAP operating income for the quarter was $118 million, up 47% 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 third quarter was $179 million, up 25% year-over-year. For the third quarter, GAAP operating margin was 15.8% and non-GAAP operating margin was 23.9%. Non-GAAP references in this release are detailed in the tables below.

Net Income: GAAP net income for the quarter was $101 million, or $0.54 per diluted share, compared with $68 million, or $0.37 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 debt discount, non-GAAP net income for the quarter was $133 million, or $0.73 per diluted share, as compared to $111 million, or $0.61 per diluted share, in the year-ago quarter. Non-GAAP diluted weighted average shares outstanding excludes dilution that is expected to be offset by our convertible note hedge transactions.

Cash: Operating cash flow was $160 million for the third quarter, an increase of 18% on a year-over-year basis. Total cash, cash equivalents and investments as of November 30, 2017 was $2.32 billion after repurchasing approximately $100 million, or 838 thousand shares, of common stock in the third quarter. The remaining balance in the current repurchase authorization as of November 30, 2017 was approximately $399 million.

Deferred revenue: At the end of the third quarter, the company's total deferred revenue balance was $2.11 billion, an increase of 23% year-over-year. The full year impact to total deferred revenue from changes in foreign exchange rates was $69 million year-over-year. On a constant currency basis, total deferred revenue would have been up 19% year-over-year.

Outlook: Red Hat's outlook assumes current business conditions and current foreign currency exchange rates.

For the full year:
  • Revenue is expected to be approximately $2.906 billion to $2.911 billion in USD.
  • GAAP operating margin is expected to be approximately 16.1% and non-GAAP operating margin is expected to be approximately 23.9%.
  • Fully diluted GAAP earnings per share (EPS) is expected to be approximately $2.02 per share, assuming 184 million fully diluted shares outstanding. Fully diluted non-GAAP EPS is expected to be approximately $2.88 per share, assuming 181 million fully diluted shares outstanding. Both GAAP and non-GAAP EPS assume a $2 million per quarter forecast for other income and an estimated annual effective tax rate of approximately 27% before discrete tax items. This outlook includes a one-time gain on a strategic investment which benefits GAAP and non-GAAP EPS by $0.05.
  • Operating cash flow is expected to be approximately $900 million to $910 million.

For the fourth quarter:
  • Revenue is expected to be approximately $758 million to $763 million.
  • GAAP operating margin is expected to be approximately 16.7% and non-GAAP operating margin is expected to be approximately 24.6%.
  • Fully diluted GAAP EPS is expected to be approximately $0.54 per share, assuming 186 million fully diluted shares outstanding. Fully diluted non-GAAP EPS is expected to be approximately $0.81 per share, assuming 182 million fully diluted shares outstanding. Both GAAP and non-GAAP EPS assume a $2 million forecast for other income and an estimated annual effective tax rate of 27% before discrete tax items. This outlook includes a one-time gain on a strategic investment which benefits GAAP and non-GAAP EPS by $0.05.

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 $195 million, amortization of intangible assets of approximately $30 million and transaction costs related to business combinations of approximately $1.3 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 debt discount of approximately $20 million and an estimated annual effective tax rate of approximately 27% before discrete tax items. Additionally, full year fully diluted non-GAAP EPS excludes approximately $30 million of discrete tax benefits related to share-based compensation that are included in full year fully diluted GAAP EPS. Full year fully diluted non-GAAP EPS excludes approximately 3 million diluted shares related to the convertible notes which are expected to be offset by our convertible note hedge transactions.

Fourth quarter non-GAAP operating margin guidance is derived by subtracting the estimated impact of non-cash share-based compensation expense of approximately $52 million and amortization of intangible assets of approximately $8 million. Fourth 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 debt discount of approximately $5 million and an estimated annual effective tax rate of 27% before discrete tax items. Additionally, fourth quarter fully diluted non-GAAP EPS excludes approximately $1 million of discrete tax benefits related to share-based compensation that are included in fourth quarter fully diluted GAAP EPS. Fourth quarter fully diluted non-GAAP EPS excludes approximately 4 million diluted shares related to the convertible notes which are expected to be offset by our convertible note hedge transactions.

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 provide 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 integration of acquisitions and the ability to market successfully acquired technologies and products; fluctuations in exchange rates; the effects of industry consolidation; 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 the security of our offerings and other data security vulnerabilities; changes in and a dependence on key personnel; the ability to meet financial and operational challenges encountered in our international operations; and ineffective management of, and control over, the Company's growth and international operations, 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 and the Shadowman logo are trademarks or registered trademarks of Red Hat, Inc. or its subsidiaries 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 Ended Nine Months Ended
November 30,   November 30, November 30,   November 30,
2017 2016 2017 2016
Revenue:
Subscriptions $ 656,832 $ 543,318 $ 1,890,902 $ 1,576,192
Training and services 91,146   71,942   257,227   206,771  
Total subscription and training and services revenue 747,978   615,260   2,148,129   1,782,963  
 
Cost of revenue:
Subscriptions 47,277 40,660 137,234 116,882
Training and services 64,482   49,793   181,938   145,289  
Total cost of subscription and training and services revenue 111,759   90,453   319,172   262,171  
 
Gross profit 636,219 524,807 1,828,957 1,520,792
 
Operating expense:
Sales and marketing 308,388 267,080 883,395 763,583
Research and development 145,580 122,469 424,552 358,750
General and administrative 63,838   54,485   180,430   160,439  
Total operating expense 517,806   444,034   1,488,377   1,282,772  
 
Income from operations 118,413 80,773 340,580 238,020
Interest income 4,864 3,346 13,469 10,167
Interest expense 6,180 6,009 18,346 17,820
Other income (expense), net (1,187 ) (1,392 ) (3,033 ) (1,860 )
 
Income before provision for income taxes 115,910 76,718 332,670 228,507
Provision for income taxes 14,604   8,775   61,315   40,607  
Net income $ 101,306   $ 67,943   $ 271,355   $ 187,900  
 
Net income per share:
Basic $ 0.57 $ 0.38 $ 1.53 $ 1.04
Diluted $ 0.54 $ 0.37 $ 1.48 $ 1.02
Weighted average shares outstanding:
Basic 177,063 179,233 177,188 180,245
Diluted 186,160 182,682 183,397 183,453

   
RED HAT, INC.
CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)
 
November 30, 2017 February 28, 2017 (1)
ASSETS
Current assets:
Cash and cash equivalents $ 1,331,172 $ 1,090,808
Investments in debt securities, short-term 384,717 369,983
Accounts receivable, net 531,509 634,821
Prepaid expenses 216,036 200,609
Other current assets 41,276   19,481  
Total current assets 2,504,710 2,315,702
 
Property and equipment, net 201,807 189,629
Goodwill 1,120,957 1,040,709
Identifiable intangibles, net 151,450 137,767
Investments in debt securities, long-term 605,284 672,440
Deferred tax assets, net 108,235 104,833
Other assets, net 67,041   74,105  
Total assets $ 4,759,484   $ 4,535,185  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 341,596 $ 376,957
Deferred revenue, short-term 1,482,428 1,512,762
Other current obligations 1,022   1,354  
Total current liabilities 1,825,046 1,891,073
 
Deferred revenue, long-term 623,150 557,194
Convertible notes 762,367 745,633
Other long-term obligations 115,781 93,965
Stockholders' equity:
Common stock 24 24
Additional paid-in capital 2,350,740 2,294,462
Retained earnings 1,624,346 1,352,991
Treasury stock, at cost (2,506,075 ) (2,311,805 )
Accumulated other comprehensive loss (35,895 ) (88,352 )
Total stockholders' equity 1,433,140   1,247,320  
Total liabilities and stockholders' equity $ 4,759,484   $ 4,535,185  
 
(1) Derived from audited financial statements

   
RED HAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)
 
Three Months Ended Nine Months Ended
November 30,   November 30, November 30,   November 30,
2017 2016 2017 2016
Cash flows from operating activities:
Net income $ 101,306 $ 67,943 $ 271,355 $ 187,900
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 25,588 21,870 71,541 63,732
Amortization of debt discount and transaction costs 5,630 5,453 16,740 16,211
Share-based compensation expense 52,318 54,741 142,983 141,373
Deferred income taxes 273 13,818 7,831 6,199
Net amortization of bond premium on debt securities available for sale 2,113 3,120 6,988 9,954
Other (214 ) 986 1,318 549
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable (113,898 ) (73,149 ) 111,899 86,496
Prepaid expenses (6,756 ) (18,897 ) (26,026 ) (19,387 )
Accounts payable and accrued expenses 35,559 (4,413 ) (17,771 ) (14,836 )
Deferred revenue 57,275 64,181 (29,017 ) (8,865 )
Other 1,113   706   3,234   (3,868 )
Net cash provided by operating activities 160,307   136,359   561,075   465,458  
 
Cash flows from investing activities:
Purchase of investment in debt securities available for sale (26,580 ) (118,152 ) (285,773 ) (415,796 )
Proceeds from maturities of investment in debt securities available for sale 130,941 108,722 348,285 378,264
Proceeds from sales of investment in debt securities available for sale 5,293 5,037 19,617 30,205
Acquisition of businesses, net of cash acquired (83,965 ) (28,667 )
Purchase of developed software and other intangible assets (3,426 ) (2,323 ) (12,871 ) (8,712 )
Purchase of property and equipment (16,587 ) (17,244 ) (68,268 ) (50,436 )
Other 84   (92 ) (105 ) (203 )
Net cash provided by (used in) investing activities 89,725   (24,052 ) (83,080 ) (95,345 )
 
Cash flows from financing activities:
Proceeds from exercise of common stock options 711 1,205 4,541 3,273
Proceeds from employee stock purchase program 10,575 7,155 33,288 7,155
Payments related to net settlement of share-based compensation awards (37,807 ) (25,769 ) (86,230 ) (63,245 )
Purchase of treasury stock (100,000 ) (125,318 ) (237,002 ) (319,182 )
Payments on other borrowings (346 ) (462 ) (1,207 ) (1,368 )
Other (6 ) (84 ) (6 ) 829  
Net cash used in financing activities (126,873 ) (143,273 ) (286,616 ) (372,538 )
 
Effect of foreign currency exchange rates on cash and cash equivalents (2,295 ) (22,925 ) 48,985   (8,675 )
Net increase (decrease) in cash and cash equivalents 120,864 (53,891 ) 240,364 (11,100 )
Cash and cash equivalents at beginning of the period 1,210,308   970,569   1,090,808   927,778  
Cash and cash equivalents at end of the period $ 1,331,172   $ 916,678   $ 1,331,172   $ 916,678  

   
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS

(Unaudited)

(In thousands - except per share amounts)
 
Three Months Ended Nine Months Ended
November 30,   November 30, November 30,   November 30,
2017 2016 2017 2016
 
Reconciliation items included in Consolidated Statements of Operations:
 
Non-cash share-based compensation expense:
Cost of revenue $ 4,199 $ 4,037 $ 12,408 $ 12,396
Sales and marketing 23,278 26,624 64,708 65,426
Research and development 14,937 13,814 42,603 38,785
General and administrative 9,904   10,266   23,264   24,766  
Total share-based compensation expense $ 52,318   $ 54,741   $ 142,983   $ 141,373  
 
Amortization of intangible assets expense:
Cost of revenue $ 4,329 $ 4,234 $ 12,491 $ 11,702
Sales and marketing 1,592 1,695 4,634 5,515
Research and development 34 34 103 103
General and administrative 2,084   1,690   6,137   5,291  
Total amortization of intangible assets expense $ 8,039   $ 7,653   $ 23,365   $ 22,611  
 
Total non-cash interest expense related to the debt discount $ 4,936   $ 4,800   $ 14,693   $ 14,284  
 
Transaction costs related to business combinations $ (52 ) $   $ 1,310   $ 1,789  
 
Reconciliation of GAAP results to non-GAAP adjusted results:
 
GAAP net income $ 101,306 $ 67,943 $ 271,355 $ 187,900
GAAP provision for income taxes 14,604   8,775   61,315   40,607  
GAAP income before provision for income taxes $ 115,910 $ 76,718 $ 332,670 $ 228,507
 
Add: Non-cash share-based compensation expense 52,318 54,741 142,983 141,373
Add: Amortization of intangible assets expense 8,039 7,653 23,365 22,611
Add: Non-cash interest expense related to the debt discount 4,936 4,800 14,693 14,284
Add: Transaction costs related to business combinations (52 )   1,310   1,789  
Non-GAAP adjusted income before provision for income taxes $ 181,151 $ 143,912 $ 515,021 $ 408,564
Non-GAAP provision for income taxes (1) 48,075   33,160   141,980   104,405  
Non-GAAP adjusted net income (basic and diluted) $ 133,076   $ 110,752   $ 373,041   $ 304,159  
 
Non-GAAP adjusted diluted weighted average shares outstanding:
GAAP diluted weighted average shares outstanding 186,160 182,682 183,397 183,453
Dilution offset from convertible note hedge transactions (4,109 ) (514 ) (2,928 ) (228 )
Non-GAAP diluted weighted average shares outstanding 182,051   182,168   180,469   183,225  
 
Non-GAAP adjusted net income per share:
Basic $ 0.75 $ 0.62 $ 2.11 $ 1.69
Diluted $ 0.73 $ 0.61 $ 2.07 $ 1.66

       
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS

(Unaudited)

(In thousands - except per share amounts)
 
Three Months Ended Nine Months Ended
November 30, November 30, November 30, November 30,
2017 2016 2017 2016
(1) Non-GAAP provision for income taxes:
Non-GAAP adjusted income before provision for income taxes $ 181,151 $ 143,912 $ 515,021 $ 408,564
GAAP estimated annual effective tax rate 26.0 % 27.0 % 27.0 % 27.0 %
Provision for income taxes on non-GAAP adjusted income before discrete tax benefits $ 46,908 $ 38,856 $ 139,056 $ 110,312
Discrete tax expense (benefit), excluding discrete benefits related to share-based compensation 1,167   (5,696 ) 2,924   (5,907 )
Provision for income taxes on non-GAAP adjusted income, excluding discrete tax benefits related to share-based compensation $ 48,075   $ 33,160   $ 141,980   $ 104,405  
 
GAAP gross profit $ 636,219 $ 524,807 $ 1,828,957 $ 1,520,792
Add: Non-cash share-based compensation expense 4,199 4,037 12,408 12,396
Add: Amortization of intangible assets expense 4,329   4,234   12,491   11,702  
Non-GAAP gross profit $ 644,747   $ 533,078   $ 1,853,856   $ 1,544,890  
 
Non-GAAP gross margin 86.2 % 86.6 % 86.3 % 86.6 %
 
GAAP operating expenses $ 517,806 $ 444,034 $ 1,488,377 $ 1,282,772
Deduct: Non-cash share-based compensation expense (48,119 ) (50,704 ) (130,575 ) (128,977 )
Deduct: Amortization of intangible assets expense (3,710 ) (3,419 ) (10,874 ) (10,909 )
Deduct: Transaction costs related to business combinations 52     (1,310 ) (1,789 )
Non-GAAP adjusted operating expenses $ 466,029   $ 389,911   $ 1,345,618   $ 1,141,097  
 
GAAP operating income $ 118,413 $ 80,773 $ 340,580 $ 238,020
Add: Non-cash share-based compensation expense 52,318 54,741 142,983 141,373
Add: Amortization of intangible assets expense 8,039 7,653 23,365 22,611
Add: Transaction costs related to business combinations (52 )   1,310   1,789  
Non-GAAP adjusted operating income $ 178,718   $ 143,167   $ 508,238   $ 403,793  
 
Non-GAAP adjusted operating margin 23.9 % 23.3 % 23.7 % 22.6 %

 
RED HAT, INC.
RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS

(Unaudited)

(In thousands - except per share amounts)
 
Three Months Ended
November 30,   November 30,   Year-Over-Year
2017 2016 Growth Rate
Subscription and services revenue:
GAAP subscription revenue by offering type:
Infrastructure-related offerings $ 494,974 $ 431,142 14.8 %
Adjustment for currency impact (5,477 )  
Non-GAAP Infrastructure-related subscription revenue on a constant currency basis $ 489,497 $ 431,142 13.5 %
 
Application Development-related and other emerging technology offerings $ 161,858 $ 112,176 44.3 %
Adjustment for currency impact (2,652 )  
Non-GAAP Application Development-related and other emerging technology subscription revenue on a constant currency basis $ 159,206 $ 112,176 41.9 %
 
GAAP subscription revenue $ 656,832 $ 543,318 20.9 %
Adjustment for currency impact (8,129 )  
Non-GAAP subscription revenue on a constant currency basis $ 648,703 $ 543,318 19.4 %
 
GAAP training and services revenue $ 91,146 $ 71,942 26.7 %
Adjustment for currency impact (1,433 )  
Non-GAAP training and services revenue on a constant currency basis $ 89,713 $ 71,942 24.7 %
 
GAAP total subscription and training and services revenue $ 747,978 $ 615,260 21.6 %
Adjustment for currency impact (9,562 )

 
 
Non-GAAP total subscription and training and services revenue on a constant currency basis $ 738,416   $ 615,260   20.0 %
 
 
Nine Months Ended
November 30, November 30, Year-Over-Year
2017 2016 Growth Rate
GAAP subscription revenue by offering type:
Infrastructure-related offerings $ 1,440,383 $ 1,261,359 14.2 %
Adjustment for currency impact (3,599 )  
Non-GAAP Infrastructure-related subscription revenue on a constant currency basis $ 1,436,784 $ 1,261,359 13.9 %
 
Application Development-related and other emerging technology offerings $ 450,519 $ 314,833 43.1 %
Adjustment for currency impact (2,491 )  
Non-GAAP Application Development-related and other emerging technology subscription revenue on a constant currency basis $ 448,028 $ 314,833 42.3 %
 
GAAP subscription revenue $ 1,890,902 $ 1,576,192 20.0 %
Adjustment for currency impact (6,090 )  
Non-GAAP subscription revenue on a constant currency basis $ 1,884,812 $ 1,576,192 19.6 %
 
GAAP training and services revenue $ 257,227 $ 206,771 24.4 %
Adjustment for currency impact (996 )  
Non-GAAP training and services revenue on a constant currency basis $ 256,231 $ 206,771 23.9 %
 
GAAP total subscription and training and services revenue $ 2,148,129 $ 1,782,963 20.5 %
Adjustment for currency impact (7,086 )  
Non-GAAP total subscription and training and services revenue on a constant currency basis $ 2,141,043   $ 1,782,963   20.1 %

     
RED HAT, INC.
SUPPLEMENTAL INFORMATION

(Unaudited)

(In thousands)
 
Change in deferred revenue balances:
Deferred Revenue
Current Long-Term Total
Balance at November 30, 2016 $ 1,225,421 $ 482,557 $ 1,707,978
Constant currency change in deferred revenue 210,575 117,832 328,407
Impact from foreign currency translation 46,432   22,761   69,193  
Balance at November 30, 2017 $ 1,482,428   $ 623,150   $ 2,105,578  
 
Year-over-year growth rate 21.0 % 29.1 % 23.3 %
Year-over-year growth rate on a constant currency basis 17.2 % 24.4 % 19.2 %

   
RED HAT, INC.
SUPPLEMENTAL INFORMATION

(Unaudited)

(In thousands)
 
Revenue growth by geographical segment:
  Americas   EMEA APAC Consolidated
Total revenue for the three months ended November 30, 2017 $ 471,773 $ 173,718 $ 102,487 $ 747,978
Adjustment for currency impact (85 ) (11,478 ) 2,001   (9,562 )
Total revenue on a constant currency basis for the three months ended November 30, 2017 $ 471,688   $ 162,240   $ 104,488   $ 738,416  
 
Total revenue for the three months ended November 30, 2016 $ 393,589   $ 132,568   $ 89,103   $ 615,260  
 
Year-over-year growth rate 19.9 % 31.0 % 15.0 % 21.6 %
Year-over-year growth rate on a constant currency basis 19.8 % 22.4 % 17.3 % 20.0 %
 
Total revenue for the nine months ended November 30, 2017 $ 1,373,512 $ 477,110 $ 297,507 $ 2,148,129
Adjustment for currency impact (953 ) (10,758 ) 4,625   (7,086 )
Total revenue on a constant currency basis for the nine months ended November 30, 2017 $ 1,372,559   $ 466,352   $ 302,132   $ 2,141,043  
 
Total revenue for the nine months ended November 30, 2016 $ 1,144,841   $ 384,334   $ 253,788   $ 1,782,963  
 
Year-over-year growth rate 20.0 % 24.1 % 17.2 % 20.5 %
Year-over-year growth rate on a constant currency basis 19.9 % 21.3 % 19.0 % 20.1 %

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