Rackspace Q2: Here's the bounce back

Following a disappointing first-quarter, Rackspace bounced back with better than expected Q2 results.

After Rackspace's first quarter earnings exceeded disappointment, the open-source cloud company bounced back in its second quarter results.

RackSpace reported Q2 revenue of $319 million, up nearly 6 percent from the previous quarter, and up by 29 percent year-on-year. 

Analysts were expecting around $318 million, or 18 cents a share. 

The firm also reported a profit of $25.1 million (statement) for the three months ending June 30, up by 43 percent in the same quarter last year.

Margins were up to 7.9 percent, compared to 7.7 percent on the previous quarter, and up by 7.1 percent year-on-year. 

In prepared remarks: 

"At the halfway point in the year, we have made a lot of progress on our plans to broaden our product and services portfolio while simultaneously managing a rapidly growing business. Keep your eyes open for more product announcements in the coming weeks and we look forward to updating you on our progress in November," said Rackspace's chief financial officer, Karl Pichler.

By the numbers, compared to the previous quarter:

  • Rackspace's total server count increased to 84,978, up from 82,438 servers;
  • Total customers increased by 190,958, up from 180,866;
  • Rackspace employs 4,528 staff around the world, up from 193 staff.

Rackspace's shares jumped by 1.7 percent at market close, and rocketed by 11.7 percent in after-hours trading on Tuesday. The firm's market cap current stands at $6.66 billion. 


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