Red Hat (NYSE: RHT) is nearing the end of its time as a publicly traded company, with International Business Machines (NYSE: IBM) slated to close its acquisition of the open source software company sometime in the second half of this year. As IBM pays more for Red Hat, it gets a company that is well positioned for the development of hybrid cloud computing, and is increasing revenue and revenue at a double-digit rate.

Red Hat’s fourth-quarter results reported on March 25 were mixed in line with analyst expectations. But in absolute terms, the numbers are solid. Here’s what investors need to know. You can also check Nasdaq tsla news at .

Double digit growth

Red Hat’s revenues exceeded 4 3.4 billion for the full year, of which 9 2.9 billion came from subscriptions. Both total revenues and subscription revenues increased by 15% over the previous year.

During the fourth quarter, the company maintained similar growth rates:

Currency negatively impacted Red Hat’s results in the fourth quarter. Total revenues would grow at 17% year-on-year in fixed currency, and subscription revenues would rise by 16%.

A large portion of Red Hat’s subscription revenue comes from infrastructure-related offerings. These products generated $ 549 million in revenue during the fourth quarter, which is an increase of 8% on the basis of reporting and 10% on fixed currency. Subscription revenues for app development were $ 225 million, a 30% increase on reported basis and a 34% increase in fixed currency.

Red Hat CEO Jim Whitehurst emphasized the company’s success by winning big deals. Total number of active subscribers worth over $ 5 million increased 33% in FY 2019, and the company signed 17% additional contracts worth more than $ 1 million. Whitehurst pointed out that this growth is in spite of a small base of major updates compared to the 2018 fiscal year.

Red Hat’s backlog was more than 1 4.1 billion at the end of fiscal 2019, an increase of 22% year over year. Deferred revenue was $ 3 billion, an increase of 15% year over year.

Higher earnings compensate for a slightly lower adjusted gross margin for larger increases in adjusted earnings per share. Other factors include adjusted operating expenses growing just 11.1% per year, a few percentage points slower than revenue growth, and a significantly lower tax rate. Red Hat’s GAAP effective tax rate was 13.8% in the fourth quarter, up from 17.8% the previous year.

Due to the impending acquisition of IBM, (NYSE: RHT) does not provide guidance or provide a revenue call. You can also check Nyse kgc news at .