Rackspace Hosting Announces Revenue Growth in Q1 2014, Up 16% From Q1 2013

Rackspace Hosting (NYSE: RAX), a global cloud hosting provider, has announced financial results for the quarter ended March 31, 2014. Net revenue for the first quarter of 2014 was $421 million, up 3.2% from the previous quarter and 16% from the first quarter of 2013.

Rackspace Hosting‘s net revenue for the first quarter of 2014 was positively impacted by currency exchange rates. Net income was $25 million for the quarter, up 22.3% from the previous quarter. The net income margin for the quarter was 6.0% compared to 5.1% for the previous quarter. Total server count increased to 106,229, up from 103,886 servers at the end of the previous quarter.

Revenue forecast

rackspace-hostingFor the second quarter of 2014, Rackspace Hosting is forecasting quarter-over-quarter sequential net revenue growth of 3% to 4.5%, resulting in net revenue in the range of $434 million to $440 million.

“Our first quarter revenue growth came in as expected and we expect growth to improve in the second quarter,” said Graham Weston, Chairman and CEO. “We are encouraged by qualitative factors, including the thousands of new customers we added in the quarter, including one of the largest we’ve ever landed. We also added significant new workloads for existing customers including Alex and Ani, Appboy, Clarks shoes, Under Armour and SunPower. Each of these customers values our managed cloud approach and chose us over providers of less expensive unmanaged infrastructure.”