While the economy is showing only slight signs of recovery, Red Hat continues to turn in stellar financial performance. Yesterday, the company announced its second quarter results, which were quite strong, and this morning Red Hat's stock is up 13 percent. Red Hat's revenues for the quarter were $184 million, a 12 percent increase over last year's comparable quarter. Earnings came in at $28.9 million for the quarter, up from $21.1 million a year earlier.
One of the really notable things about Red Hat's report is that, as has been true for many quarters in a row, all 25 of its biggest accounts renewed, at subscription prices that were 20 percent higher. Red Hat continues to demonstrate that providing support and services for open source software is a winning business model, and that has to give confidence to small startups focused on the same model, including Cloudera and Acquia.