Shares of Red Hat (NYSE:RHT) took a beating when the company's second-quarter report hit the newswires. But CEO Jim Whitehurst isn't worried.

Red Hat beat analyst estimates both on earnings and revenues by growing sales 16% year over year and adjusted earnings by 25%. Analysts and investors ignored all this good news to focus on the billings proxy, a forward-looking measure of upcoming revenues. On that measure -- on which Red Hat doesn't offer any guidance -- the 8% higher number fell short of Wall Street's 12% projections. Red Hat has seen this market reaction before, but the business growth hasn't slowed down like the panic sellers expected.

In a phone call with Fool analyst Anders Bylund, Whitehurst explained two big reasons investors shouldn't focus on the billings proxy. Spoiler alert: Big deals with long-term contracts are changing Red Hat's accounting, and the company is stealing market share from Microsoft (NASDAQ:MSFT) and others in several key markets. Oh, and Red Hat shares are starting to look cheap.

Fool contributor Anders Bylund has no position in any stocks mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+.

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