Red Hat Inc (RHT) SEC Filing 10-K Annual report for the fiscal year ending Thursday, February 28, 2019

Exhibit 99.1

Red Hat Reports Fourth Quarter and Fiscal Year 2019 Results

• Fourth quarter total revenue of $879 million, up 14% year-over-year, or 17% in constant currency; full fiscal year total revenue of $3.4 billion, up 15% year-over-year, or 16% in constant currency
• Fourth quarter Application Development-related and other emerging technology subscription revenue of $225 million, up 30% year-over-year, or 34% in constant currency; full fiscal year Application Development-related and other emerging technology subscription revenue of $816 million, up 31% year-over-year, or 32% in constant currency
• Fourth quarter training and services revenue of $105 million, up 18% year-over-year, or 23% in constant currency; full fiscal year total training and services revenue of $413 million, up 19% year-over-year, or 21% in constant currency
• Year-end deferred revenue balance of $3.0 billion, up 15% year-over-year, or 18% in constant currency

RALEIGH, N.C.--(BUSINESS WIRE)--March 25, 2019--Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced financial results for the fourth quarter of fiscal year 2019 ended February 28, 2019.

“Enterprise organizations are continuing to move to hybrid cloud environments, which is contributing to strong growth in Red Hat’s cloud enabling technologies,” stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. “Across the portfolio, our total number of customers with active subscriptions greater than $5 million increased 33% year-over-year in fiscal year 2019. Also key to that growth is the increasing number of Ansible and OpenShift customers, which now total more than 1,300 and 1,000, respectively, as of the end of fiscal year 2019.”

“In FY19, we continued to strengthen our strategic relationships with enterprise organizations, which was evidenced by continued growth in sizeable commitments. We saw a 17% year-over-year increase in the number of deals over $1 million, despite the smaller base of large renewals in fiscal year 2019. These deals included broad adoption across Red Hat’s portfolio of technologies, with cross-selling up 22% from the previous year,” said Eric Shander, Executive Vice President and Chief Financial Officer. “Additionally, our total backlog was $4.1 billion, a 22% increase year-over-year. This is the third consecutive year where backlog increased at a rate of more than 20% year-over-year, which further reflects the forward momentum of our business.”

Revenue: Total revenue for the quarter was $879 million, up 14% year-over-year, or 17% measured in constant currency. Constant currency references in this release are detailed in the tables below. Subscription revenue for the quarter was $774 million, up 13% year-over-year, or 16% measured in constant currency. Subscription revenue in the quarter was 88% of total revenue.