Rackspace boasts record Q2 revenue, outlook strong

Summary:Wall Street was looking for earnings of 16 cents per share with $436.91 million in revenue.

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Rackspace announced second quarter earnings after the bell on Monday.

The IT hosting company reported a net income of $22 million, or 16 cents per share (statement).

Non-GAAP earnings were 16 cents per share on a revenue of $441 million.

Wall Street was also looking for earnings of 16 cents per share with $436.91 million in revenue.

Total server count for Q2 increased to 107,657, up from 106,229 servers at the end of Q1 2014.

Rackspace's employee count is also up slightly to 5,798 from 5,743 in the previous quarter.

Amid highlighting the launch of OnMetal Cloud Servers and the next steps for ObjectRocket for MongoDB databases, CEO Graham Weston reflected on the "record" quarter in prepared remarks:

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.

For the current quarter, Wall Street expects Rackspace to deliver earnings of at least 17 cents per share with revenue of $454.23 million.

Rackspace followed up with a third quarter revenue guidance range of $454 million to $461 million.

Topics: Cloud, Big Data, Enterprise 2.0, Enterprise Software, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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