Ovum: Red Hat earnings soar


United States, September 29, 2005

Comment: The revenue growth is particularly impressive, because the subscription model slows the conversion of sales wins into revenues - Red Hat has to spread the value of any contract over its lifetime. The upside of this is that the company was carrying $184m in deferred revenues from subscriptions - close to a full years future revenues at the current run rate. Taken together, this shows just how strong Red Hat is at the moment.