Cloud, Managed and Hybrid Hosting Provider Rackspace Sees 16% Increase in Revenue

Cloud, Managed and Hybrid Hosting Provider Rackspace Sees 16% Increase in Revenue
Cloud, managed and hybrid hosting provider Rackspace has seen an increase of around 16% in revenue. The results for the last financial quarter beat expectations and came as a response to increased demand for the company’s services. Analysts forecast revenues of $419.4 million for the quarter, while figures ending June reached the $435-$440 million region. The news prompted a 12% increase in the company’s share value in afterhours trading on the New York Stock Exchange. Its stock closed at $27.53 Monday evening.

Rackspace’s improvement was driven by dedicated cloud revenue activity, which represents around 71% of the company’s revenue. Revenue generated by the company’s public cloud services also increased by around 33%. The news is a boon to a company whose share value decreased around 30% over the previous year, in part because of significant competition from cloud players such as Amazon Inc, Microsoft Corp and IBM.

“Our first quarter revenue growth came in as expected and we expect growth to improve in the second quarter,” explained the company’s Chairman and CEO Graham Weston in a press release on the company’s website. “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.”

Do you know of any other companies that are doing well on the stock market? Let us know the details. Add your comments below.



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