RHT

[dealmaker]

Red Hat slides on low guidance

As a whole, the enterprise software company said in a statement that revenue rose 20 percent year over year in the quarter. Red Hat saw a 48 percent increase in the number of deals above $1 million that it closed during the quarter, CEO Jim Whitehurst said on a Thursday conference call with analysts. (CNBC)

 

[vikasd]

well the street wants subscription sw. you cannot beat and raise in that model. that model is supposed to smooth out rev and earnings.

 

[vanzandt]

well the street wants subscription sw. you cannot beat and raise in that model. that model is supposed to smooth out rev and earnings.

What if you sign up more new subs than expected? Beat and raise.

 

[vikasd]

Yes in the days of transition from perpetual to subscription you get those beats/raise. But then you get to steady state and stay there. I thought that is what the street wanted and now they are complaining.