Rackspace Hosting Q2 Profit Matches Estimates - Quick Facts

(RTTNews) - Rackspace Hosting, Inc. (RAX) reported second-quarter net income of $22.45 million or $0.16 per share, compared to $22.37 million or $0.16 per share, prior year.

On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $0.16 for the quarter. Analysts' estimates typically exclude special items.

Net revenue was $441 million, up 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 second quarter of 2013 by $9.9 million.

For the third quarter of 2014, the company expects net revenue in the range of $454 million to $461 million. Analysts expect the company to report third-quarter revenue of $454.23 million.

"This was a record quarter for 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," said Graham Weston, Chairman and CEO of Rackspace.