Red Hat, Inc. (NYSE:RHT) Q4 2016 Earnings Conference Call - Final Transcript

Mar 22, 2016 • 05:00 pm ET


Red Hat, Inc. (NYSE:RHT) Q4 2016 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to today's program. At this time, all participants are in listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions]

It is now my pleasure to turn the conference over to Vice President of Investor Relations, Mr. Tom McCallum. Please go ahead.

Tom McCallum

Thank you, Keith. Hello, everyone, and welcome to Red Hat's earnings call for the Fourth Quarter and Full-Year of Fiscal 2016. Let me first say on behalf of all Red Hat associates, our thoughts and prayers are with everyone impacted by the events in Brussels today.

Moving onto the call, speakers for today's call will be Jim Whitehurst, President and CEO; Frank Calderoni, Executive Vice President Operations and CFO. Our earnings press release was issued today after the market closed and may be downloaded from on the Investor Relations page. Also on this page, you'll be able to find a copy of today's prepared remarks, a schedule of currency rates, and a slide deck with financial highlights and supplemental metrics that include a reconciliation of GAAP to non-GAAP financial results.

During this call, we may make forward-looking statements about our future financial performance and other future events or trends, including guidance for our full-year and first quarter of fiscal 2017. These statements are only predictions that are based on what we believe today, and actual results may differ materially. These forward-looking statements are subject to risks, uncertainties, assumptions and other factors that could affect our financial results and the performance of our business and which we discuss in detail in our filings with the SEC, including today's press release and the risk factors and other information contained in our most recently filed Form 10-Q and Form 10-K. Red Hat assumes no obligation to update any forward-looking statements we may make on today's call.

With that, let me turn it over to Jim.

James Whitehurst

Thank you, Tom, and let me add my welcome to everyone joining us on today's call. The fourth quarter was a strong finish to another great year for Red Hat and our momentum and outlook are strong as we begin the new fiscal year. Our results reflect the fact that enterprises are increasingly adopting hybrid cloud infrastructures and open source technologies, and they are turning to Red Hat as their strategic partner as they do so.

We exceeded guidance across all our financial metrics in the fourth quarter in addition to setting new records and milestones for the year. Here are a few highlights. First, the fourth quarter marked our 56th consecutive quarter of revenue growth which contributed to Red Hat's first year of crossing the $2 billion in total revenue milestone.

Second, we drove accelerated full-year revenue growth in both the Infrastructure-related technologies at 18% constant currency growth compared to 13% in the prior year and the Application Development & Emerging Technologies at 46% constant currency, up from 43% last year. Third, strong sales execution led to record total backlog of over $2.1