News: Rackspace Hosting Outdoes Itself – Profitwise
If you’re one of those people that balk at or doubt the rosy forecasts of cloud computing growth and revenue by analysts, perhaps you should pay more attention to the evidence, for example, cloud tech company earnings.
I just read that Rackspace Hosting, a San Antonio, TX-based provider of enterprise-level hosting services, posted better-than-expected profits of $162.4 million for the third quarter, a rise of 17.4% year-over-year. Earnings grew by 45.3% year-over-year to $7.6 million, or six cents a share.
The numbers were higher than during the second quarter, too.
But most telling of all was its growing cloud hosting business. Managed hosting revenue increased to $147.1 million, up 6% from the second quarter. And of that, cloud revenue grew to $15.3 million, up 17% from the previous quarter.
Rackspace Hosting’s cloud business now makes up 10% of its total net revenues, up from 5% this time last year.
Read more about Rackspace Hosting’s good fortune – fed increasingly by cloud computing – in this article.