Rackspace Earnings: More Cloud Services, OpenStack Surprises?
Rackspace (NYSE: RAX), the cloud services provider, announced strong Q2 2012 earnings results today. But CFO Karl Pichler provided the most interesting tidbit in a prepared statement, telling investors to “Keep your eyes open for more announcements in the coming weeks.”
So what’s on the way? Perhaps some more OpenStack milestones I suspect. Also, Rackspace is rebranding aggressively as the “open cloud company.”
For its Q2 2012, net revenue was $319 million, up 29 percent from Q2 2011. Also, net income rose 43 percent to $25 million. Rackspace now manages roughly 191,000 customers across nearly 85,000 servers. Predictably, CEO Lanham Napier pointed to Rackspace’s growing use of OpenStack, the open source cloud platform. The company recently launched Cloud Servers powered by OpenStack, and the software also powers Rackspace’s Open Cloud platform.
Rackspace’s financial results largely beat analyst expectations, and Rackspace shares rose about $10 in after hours trading. That’s impressive, especially since some pundits have been worried about increased competition from Amazon Web Services. Amazon recently overhaul its cloud support policies, lowering fees and extending free support in some areas.
Talkin’ Cloud will update this blog with perspectives from Rackspace’s earnings call within a few hours.