Rackspace Hosting Reports Record Growth in Second Quarter 2014

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Cloud hosting provider Rackspace Hosting has announced record growth in its quarter ended June 30, 2014. Net revenue for the second quarter was $441 million, up 4.8 percent from the previous quarter and 17 percent from the second quarter of 2013. For the third quarter of 2014, the cloud hosting company has announced further revenue growth.

rackspace-hosting“This was a record quarter for Rackspace,” said Graham Weston, Chairman and CEO of Rackspace. “We added thousands of new customers, including one of our largest ever, and we saw solid growth from existing customers like Under Armour, SunPower and Alex and Ani. We generated a company record $20 million in incremental revenue in the quarter and revenue per server was an all time high. Total revenue grew 4.3 percent on a constant currency basis, which was the highest rate of growth that we’ve generated since the fourth quarter of 2012.”

Net income down

For the third quarter of 2014, the company is forecasting quarter-over-quarter sequential net revenue growth of 3 to 4.5 percent, resulting in net revenue in the range of $454 million to $461 million.

Net income was $22 million for the second quarter, down 11.8 percent from the previous quarter. Net income margin for the quarter was 5.1 percent compared to 6.0 percent for the previous quarter. Total server count in the second quarter of 2014 increased to 107,657, up from 106,229 servers at the end of the previous quarter.

Headquartered in San Antonio, cloud hosting provider Rackspace serves more than 200,000 business customers from data centers on four continents.