Advanced Computing in the Age of AI | Thursday, March 28, 2024

Rackspace Reports First Quarter Revenue 

Rackspace today announced financial results for the quarter that ended March 31, 2015.

On a GAAP basis, net revenue for the first quarter of 2015 was $480 million, up 14.1 percent from the first quarter of 2014. These results were adversely affected by shifts in currency exchange rates. On a constant currency basis, net revenue grew 16.6 percent from the first quarter of 2014.

Adjusted EBITDA for the quarter was $161 million, up 15.5 percent from the first quarter of 2014. Net income for the first quarter was $28 million, for a margin of 5.9 percent, down from 6.0 percent in the first quarter of 2014.

For the first quarter of 2015, cash flow from operating activities was $145 million, capital expenditures were $90 million, and Adjusted Free Cash Flow was $67 million. At the end of the first quarter of 2015, cash and cash equivalents were $276 million, and interest-bearing debt including capital lease obligations totaled $11 million. Return on Capital was 12.6 percent in the first quarter of 2015 compared to 11.5 percent in the first quarter of 2014.

On a worldwide basis, Rackspace employed 5,964 Rackers as of March 31, 2015.

"We delivered on our promises in the first quarter and are better positioning ourselves to benefit from the rapid growth of the managed cloud market," said Taylor Rhodes, president and CEO of Rackspace. "The execution of our strategy is driving profitable growth for Rackspace, including through a rising number of new, larger enterprise customers."

For the second quarter of 2015, Rackspace expects revenue to grow between 1.5 percent and 2.5 percent on a constant currency basis and adjusted EBITDA margins to be between 32 percent and 34 percent.

Recent Highlights

  • Tinder became a new customer
    Tinder, the widely popular matchmaking mobile app, is leveraging ObjectRocket by Rackspace to power its matching and moment rating capabilities.
  • Rackspace announced support for fully-managed Microsoft SQL Server 2014 solution
    Support for Microsoft SQL Server 2014 In-Memory Online Transaction Processing (OLTP) and AlwaysOn Availability enables rapid migration and deployment; while increasing performance up to 30x. Customers can rapidly scale up performance, drive greater database consolidation density and help reduce total cost of ownership.
  • Rackspace::Solve San Francisco, Atlanta and New York City conferences
    The events featured high-profile tech and business visionaries explaining how Rackspace Managed Cloud works for them, and how it can work for other companies too. The events provided an inside look into IT strategies and real-world solutions that help businesses scale, manage big data, and navigate digital trends.
  • John Harper appointed to Board of Directors
    John is an industry veteran with a strong track record of driving financial success for leading technology companies. His extensive background in finance and technology make him a valued addition to the Board.

 

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