Investors Are Stacking Racks on Racks Following Rackspace’s (RAX) Q4 Results
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Rackspace Hosting, Inc. (NYSE: RAX) shares are trading up 5.3 percent following the release of its fourth-quarter results. Shares closed up 1.48 percent on the day.
Net revenue rose 7.1 percent from the previous quarter to $283 million and 32 percent from the fourth quarter of 2010. Revenue also topped the Street’s consensus of $281.02 million.
Total server count increased to 79,805, up from 78,717 servers at the end of the previous quarter, and total customers increased to 172,510, up from 161,422 at the end of the previous quarter.
Net income grew 25.3 percent from the previous quarter to $25 million and 85 percent from the fourth quarter of 2010. Net income margin for the quarter was 8.8 percent compared to 7.6 percent for the previous quarter and 6.3 percent in the year-ago quarter. On a per share basis, net income was $0.18, topping the previous quarter by $0.04 and the fourth quarter of 2010 by $0.08. Earnings for the quarter also beat the Street’s consensus of $0.15 per share.
Adjusted EBITDA was $102 million, a 16.2 percent increase compared to the third quarter of 2011 and a 42 percent increase compared to the fourth quarter of 2010. The adjusted EBITDA margin for the quarter was 36.1 percent compared to 33.3 percent in the previous quarter and 33.5 percent for the fourth quarter of 2010.
Cash flow from operating activities was $105 million, while capital expenditures were $79 million for the quarter. At the end of the fourth quarter of 2011, cash and cash equivalents were $160 million.
“During the year we accelerated our revenue growth rate for the second year in a row and crossed one billion dollars in annual revenue, while simultaneously improving margins and returns. In short, we made tremendous progress towards our long-term goal of becoming the service leader in Cloud computing,” said Lanham Napier, chief executive officer.
Net revenue rose 7.1 percent from the previous quarter to $283 million and 32 percent from the fourth quarter of 2010. Revenue also topped the Street’s consensus of $281.02 million.
Total server count increased to 79,805, up from 78,717 servers at the end of the previous quarter, and total customers increased to 172,510, up from 161,422 at the end of the previous quarter.
Net income grew 25.3 percent from the previous quarter to $25 million and 85 percent from the fourth quarter of 2010. Net income margin for the quarter was 8.8 percent compared to 7.6 percent for the previous quarter and 6.3 percent in the year-ago quarter. On a per share basis, net income was $0.18, topping the previous quarter by $0.04 and the fourth quarter of 2010 by $0.08. Earnings for the quarter also beat the Street’s consensus of $0.15 per share.
Adjusted EBITDA was $102 million, a 16.2 percent increase compared to the third quarter of 2011 and a 42 percent increase compared to the fourth quarter of 2010. The adjusted EBITDA margin for the quarter was 36.1 percent compared to 33.3 percent in the previous quarter and 33.5 percent for the fourth quarter of 2010.
Cash flow from operating activities was $105 million, while capital expenditures were $79 million for the quarter. At the end of the fourth quarter of 2011, cash and cash equivalents were $160 million.
“During the year we accelerated our revenue growth rate for the second year in a row and crossed one billion dollars in annual revenue, while simultaneously improving margins and returns. In short, we made tremendous progress towards our long-term goal of becoming the service leader in Cloud computing,” said Lanham Napier, chief executive officer.
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