Rackspace tops Q3 earnings, revenue expectations

Rackspace published third quarter financial results after the bell on Monday.

Non-GAAP earnings were 26 cents per share on a revenue of $509 million, up 10.7 percent year-over-year.

Wall Street was looking for earnings of 20 cents per share with $503.08 million in revenue.

For the current quarter, Wall Street is looking for non-GAAP earnings of 23 cents per share with $517.57 million in revenue.

Rackspace responded by projecting revenue growth between two and three percent sequentially.

In prepared remarks, Rackspace CEO and president Taylor Rhodes underscored partnerships with other prominent cloud providers, such as Amazon Web Services and Microsoft, as long-term growth drivers.

For example, Rackspace recently introduced a new line of service dedicated to AWS, dubbed Fanatical Support, with round-the-clock app management and operational support for AWS cloud customers.

Rackspace also reached out to Adobe cloud users with a Managed Cloud offering optimized for Adobe's Experience Manager content management platform for building websites and mobile apps.