Rackspace Reports Second Quarter Financial Results

August 12, 2014

SAN ANTONIO, Tex., Aug. 12 — Rackspace Hosting, Inc., the #1 managed cloud company, announced financial results for the quarter ended June 30, 2014.

Net revenue for the second quarter of 2014 was $441 million, up 4.8 percent from the previous quarter and 17 percent from the second quarter of 2013. Net revenue for the second quarter of 2014 was positively impacted by currency exchange rates when compared to the previous quarter by $1.9 million and positively impacted when compared to the second quarter of 2013 by $9.9 million.

For the third quarter of 2014, the company is forecasting quarter-over-quarter sequential net revenue growth of 3 to 4.5 percent, resulting in net revenue in the range of $454 million to $461 million.

“This was a record quarter for Rackspace,” said Graham Weston, Chairman and CEO of Rackspace. “We added thousands of new customers, including one of our largest ever, and we saw solid growth from existing customers like Under Armour, SunPower and Alex and Ani. We generated a company record $20 million in incremental revenue in the quarter and revenue per server was an all time high. Total revenue grew 4.3 percent on a constant currency basis, which was the highest rate of growth that we’ve generated since the fourth quarter of 2012.”

Total server count in the second quarter of 2014 increased to 107,657, up from 106,229 servers at the end of the previous quarter.

Adjusted EBITDA for the quarter was $142 million, a 1.5 percent increase compared to the first quarter of 2014. Adjusted EBITDA margin for the quarter was 32.1 percent compared to 33.2 percent in the previous quarter.

The company expects Adjusted EBITDA margin to be in the range of 31 to 33 percent in the third quarter of 2014.

Net income was $22 million for the quarter, down 11.8 percent from the previous quarter. Net income margin for the quarter was 5.1 percent compared to 6.0 percent for the previous quarter.

Cash flow from operating activities was $125 million for the second quarter of 2014. Capital expenditures were $112 million, including $65 million for purchases of customer gear, $14 million for data center build outs, $7 million for office build outs and $27 million for capitalized software and other projects.

Adjusted Free Cash Flow for the quarter was $26 million. Return on Capital was 10.0 percent in the second quarter, compared to 11.4 percent in the previous quarter. Average monthly revenue per server was $1,375, compared to $1,336 in the previous quarter.

At the end of the second quarter of 2014, cash and cash equivalents were $340 million, and interest-bearing debt including capital lease obligations totaled $42 million.

On a worldwide basis, Rackspace employed 5,798 Rackers as of June 30, 2014, up from 5,743 in the previous quarter.

Rackspace Business Highlights

  • Rackspace announced its managed cloud strategy for delivering public cloud services to market, including enhanced service levels and a more transparent service-based pricing model. Rackspace also created developer+, a new program for developers that offers essential services needed to build scalable applications. This strategy focuses on Rackspace’s historical strength working with businesses and developers who want a strong partner to help design, manage and scale their cloud operations.
  • Gartner, Inc. placed Rackspace in the Leaders quadrant of the “Magic Quadrant for Cloud-Enabled Managed Hosting” in both North America and Europe. The Gartner assessment evaluates providers based on the completeness of their vision and their ability to execute. Rackspace was among the 17 providers assessed byGartner, and one of only two in the Leaders quadrant in North America. In Europe, the firm analyzed 17 providers and Rackspace was one of seven in the Leaders quadrant.
  • Rackspace launched OnMetal Cloud Servers to reduce cloud complexity and help cloud applications scale. These API-driven bare metal servers can be spun up as quickly as virtual machines. OnMetal Cloud Servers are designed for customers with rapidly growing infrastructure footprints who value the agility and elasticity of cloud along with the simplicity and cost-efficiency of colocation.
  • ObjectRocket demonstrated Automated Online Compaction and its rapid-deployment API at MongoDB World and extended its free backup service to MongoDB databases hosted with any provider. ObjectRocket offers MongoDB users a one-click, automated compaction solution, effectively eliminating the need for what can be a difficult and time consuming manual database maintenance process. Automated Online Compaction allows MongoDB instances to be compacted online and in the background on the ObjectRocket platform.
  • Rackspace was named the sixth “best place to work” in the U.K. in the large company category of the U.K.’s 2014 Great Place to Work Awards. This is the 10th consecutive year that Rackspace has been recognized by theGreat Place to Work Awards. The awards seek to identify companies with highly committed individuals who help their organization achieve its business objectives and consistently go the extra mile. In addition, the award looks for companies whose leadership team ensures that each employee feels trusted and supported. The award’s objective is to recognize a sense of camaraderie and a desire to work for growth, attributes that Rackspace openly demonstrates.

About Rackspace Hosting

Rackspace is the #1 managed cloud company. Its technical expertise and Fanatical Support allow companies to tap the power of the cloud without the pain of hiring experts in dozens of complex technologies. Rackspace is also the leader in hybrid cloud, giving each customer the best fit for its unique needs — whether on single- or multi-tenant servers, or a combination of those platforms. Rackspace is the founder of OpenStack, the open-source operating system for the cloud. Headquartered in San Antonio, Rackspace serves more than 200,000 business customers from data centers on four continents. It ranks 29th on Fortune’s list of 100 Best Companies to Work For. For more information, visit www.rackspace.com.

Source: Rackspace Hosting

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Geospatial Data Research Leverages GPUs

August 17, 2017

MapD Technologies, the GPU-accelerated database specialist, said it is working with university researchers on leveraging graphics processors to advance geospatial analytics. The San Francisco-based company is collabor Read more…

By George Leopold

Intel, NERSC and University Partners Launch New Big Data Center

August 17, 2017

A collaboration between the Department of Energy’s National Energy Research Scientific Computing Center (NERSC), Intel and five Intel Parallel Computing Centers (IPCCs) has resulted in a new Big Data Center (BDC) that Read more…

By Linda Barney

Google Releases Deeplearn.js to Further Democratize Machine Learning

August 17, 2017

Spreading the use of machine learning tools is one of the goals of Google’s PAIR (People + AI Research) initiative, which was introduced in early July. Last week the cloud giant released deeplearn.js as part of that in Read more…

By John Russell

HPE Extreme Performance Solutions

Leveraging Deep Learning for Fraud Detection

Advancements in computing technologies and the expanding use of e-commerce platforms have dramatically increased the risk of fraud for financial services companies and their customers. Read more…

Spoiler Alert: Glimpse Next Week’s Solar Eclipse Via Simulation from TACC, SDSC, and NASA

August 17, 2017

Can’t wait to see next week’s solar eclipse? You can at least catch glimpses of what scientists expect it will look like. A team from Predictive Science Inc. (PSI), based in San Diego, working with Stampede2 at the Read more…

By John Russell

Microsoft Bolsters Azure With Cloud HPC Deal

August 15, 2017

Microsoft has acquired cloud computing software vendor Cycle Computing in a move designed to bring orchestration tools along with high-end computing access capabilities to the cloud. Terms of the acquisition were not disclosed. Read more…

By George Leopold

HPE Ships Supercomputer to Space Station, Final Destination Mars

August 14, 2017

With a manned mission to Mars on the horizon, the demand for space-based supercomputing is at hand. Today HPE and NASA sent the first off-the-shelf HPC system i Read more…

By Tiffany Trader

AMD EPYC Video Takes Aim at Intel’s Broadwell

August 14, 2017

Let the benchmarking begin. Last week, AMD posted a YouTube video in which one of its EPYC-based systems outperformed a ‘comparable’ Intel Broadwell-based s Read more…

By John Russell

Deep Learning Thrives in Cancer Moonshot

August 8, 2017

The U.S. War on Cancer, certainly a worthy cause, is a collection of programs stretching back more than 40 years and abiding under many banners. The latest is t Read more…

By John Russell

IBM Raises the Bar for Distributed Deep Learning

August 8, 2017

IBM is announcing today an enhancement to its PowerAI software platform aimed at facilitating the practical scaling of AI models on today’s fastest GPUs. Scal Read more…

By Tiffany Trader

IBM Storage Breakthrough Paves Way for 330TB Tape Cartridges

August 3, 2017

IBM announced yesterday a new record for magnetic tape storage that it says will keep tape storage density on a Moore's law-like path far into the next decade. Read more…

By Tiffany Trader

AMD Stuffs a Petaflops of Machine Intelligence into 20-Node Rack

August 1, 2017

With its Radeon “Vega” Instinct datacenter GPUs and EPYC “Naples” server chips entering the market this summer, AMD has positioned itself for a two-head Read more…

By Tiffany Trader

Cray Moves to Acquire the Seagate ClusterStor Line

July 28, 2017

This week Cray announced that it is picking up Seagate's ClusterStor HPC storage array business for an undisclosed sum. "In short we're effectively transitioning the bulk of the ClusterStor product line to Cray," said CEO Peter Ungaro. Read more…

By Tiffany Trader

How ‘Knights Mill’ Gets Its Deep Learning Flops

June 22, 2017

Intel, the subject of much speculation regarding the delayed, rewritten or potentially canceled “Aurora” contract (the Argonne Lab part of the CORAL “ Read more…

By Tiffany Trader

Nvidia’s Mammoth Volta GPU Aims High for AI, HPC

May 10, 2017

At Nvidia's GPU Technology Conference (GTC17) in San Jose, Calif., this morning, CEO Jensen Huang announced the company's much-anticipated Volta architecture a Read more…

By Tiffany Trader

Reinders: “AVX-512 May Be a Hidden Gem” in Intel Xeon Scalable Processors

June 29, 2017

Imagine if we could use vector processing on something other than just floating point problems.  Today, GPUs and CPUs work tirelessly to accelerate algorithms Read more…

By James Reinders

Quantum Bits: D-Wave and VW; Google Quantum Lab; IBM Expands Access

March 21, 2017

For a technology that’s usually characterized as far off and in a distant galaxy, quantum computing has been steadily picking up steam. Just how close real-wo Read more…

By John Russell

Russian Researchers Claim First Quantum-Safe Blockchain

May 25, 2017

The Russian Quantum Center today announced it has overcome the threat of quantum cryptography by creating the first quantum-safe blockchain, securing cryptocurrencies like Bitcoin, along with classified government communications and other sensitive digital transfers. Read more…

By Doug Black

Nvidia Responds to Google TPU Benchmarking

April 10, 2017

Nvidia highlights strengths of its newest GPU silicon in response to Google's report on the performance and energy advantages of its custom tensor processor. Read more…

By Tiffany Trader

HPC Compiler Company PathScale Seeks Life Raft

March 23, 2017

HPCwire has learned that HPC compiler company PathScale has fallen on difficult times and is asking the community for help or actively seeking a buyer for its a Read more…

By Tiffany Trader

Trump Budget Targets NIH, DOE, and EPA; No Mention of NSF

March 16, 2017

President Trump’s proposed U.S. fiscal 2018 budget issued today sharply cuts science spending while bolstering military spending as he promised during the cam Read more…

By John Russell

Leading Solution Providers

Groq This: New AI Chips to Give GPUs a Run for Deep Learning Money

April 24, 2017

CPUs and GPUs, move over. Thanks to recent revelations surrounding Google’s new Tensor Processing Unit (TPU), the computing world appears to be on the cusp of Read more…

By Alex Woodie

CPU-based Visualization Positions for Exascale Supercomputing

March 16, 2017

In this contributed perspective piece, Intel’s Jim Jeffers makes the case that CPU-based visualization is now widely adopted and as such is no longer a contrarian view, but is rather an exascale requirement. Read more…

By Jim Jeffers, Principal Engineer and Engineering Leader, Intel

Google Debuts TPU v2 and will Add to Google Cloud

May 25, 2017

Not long after stirring attention in the deep learning/AI community by revealing the details of its Tensor Processing Unit (TPU), Google last week announced the Read more…

By John Russell

Six Exascale PathForward Vendors Selected; DoE Providing $258M

June 15, 2017

The much-anticipated PathForward awards for hardware R&D in support of the Exascale Computing Project were announced today with six vendors selected – AMD Read more…

By John Russell

Top500 Results: Latest List Trends and What’s in Store

June 19, 2017

Greetings from Frankfurt and the 2017 International Supercomputing Conference where the latest Top500 list has just been revealed. Although there were no major Read more…

By Tiffany Trader

IBM Clears Path to 5nm with Silicon Nanosheets

June 5, 2017

Two years since announcing the industry’s first 7nm node test chip, IBM and its research alliance partners GlobalFoundries and Samsung have developed a proces Read more…

By Tiffany Trader

MIT Mathematician Spins Up 220,000-Core Google Compute Cluster

April 21, 2017

On Thursday, Google announced that MIT math professor and computational number theorist Andrew V. Sutherland had set a record for the largest Google Compute Engine (GCE) job. Sutherland ran the massive mathematics workload on 220,000 GCE cores using preemptible virtual machine instances. Read more…

By Tiffany Trader

Messina Update: The US Path to Exascale in 16 Slides

April 26, 2017

Paul Messina, director of the U.S. Exascale Computing Project, provided a wide-ranging review of ECP’s evolving plans last week at the HPC User Forum. Read more…

By John Russell

  • arrow
  • Click Here for More Headlines
  • arrow
Share This