rackspace hosting inc (RAX) Key Developments
Rackspace Hosting, Inc. Launches Digital Services Practice to Provide Digital Marketing Expertise for Leading Brands
Mar 3 14
Rackspace Hosting, Inc. announced that it is launching a new practice focusing on digital marketing infrastructure and application hosting needs. Rackspace Digital delivers expertise to help companies more effectively engage with customers via a website, portal/extranet, mobile app or online store. By working hand-in-hand with software platforms and system integrators, Rackspace Digital provides the reliable, fully managed service to help ensure the customer's brand is never compromised. Through Fanatical Support(R), customers receive specialized expertise to help architect and deliver a highly performant, scalable and reliable solution, on top of Rackspace's unique hybrid cloud platform. The result is enhanced website performance and reliability for leading brands in the consumer retail market as an ongoing service, that scales to meet the demands of their high-traffic web events. Rackspace Digital provides customers with best practices, architecture guidance and support in the areas: Web content management systems -- Provides application and infrastructure hosting expertise for leading WCMS platforms, empowering users to deliver consistent, responsive, and reliable online experiences to customers. This includes WordPress, Drupal, Sitecore, Adobe Experience Manager (AEM) and Ektron. E-commerce solutions -- Using open, hybrid cloud infrastructure and services for building secure, scalable and highly available e-commerce stores for extending, enhancing and increasing online revenue via Magento, Oracle Commerce, Hybris or Intershop. Mobile services -- Delivers flexible, mobile application hosting infrastructure and application platform hosting expertise to empower users to develop highly scalable, reliable mobile services for customers using Node.js, FeedHenry and MutualMobile. Critical Application Services -- With up to a 100% uptime guarantee and backed by an aggressive service level agreement, Critical Application Services will initially be available for specific mission critical applications on Adobe AEM (CQ) and Oracle ATG, with more to follow.
Cloud Cruiser Delivers the First Integrated Financial Management Solution for Rackspace Private Clouds
Feb 20 14
Cloud Cruiser announced a support, implementation and development partnership with Rackspace to deliver an integrated solution to enterprises and cloud service providers implementing Rackspace Private Clouds powered by OpenStack. The Rackspace Private Cloud combines several of the capabilities of the public cloud with the customization, reliability and control advantages of a dedicated environment. With Cloud Cruiser's integrated financial management solution built for OpenStack, Rackspace Private Cloud customers can experience seamless multi-tenant billing, showback, chargeback, service pricing, and advanced decision analytics, enabling customers to monetize their cloud business and achieve greater profitability.
Rackspace Hosting, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the First Quarter and Full Year of 2014
Feb 10 14
Rackspace Hosting, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. Net revenue for the fourth quarter of 2013 was $408 million, up 5.0% from the previous quarter and up 16% from the fourth quarter of 2012 revenue of $352.909 million. Net revenue for the fourth quarter of 2013 was positively impacted by currency exchange rates when compared to the previous quarter by $4.2 million and positively impacted when compared to the fourth quarter of 2012 by $0.8 million. Adjusted EBITDA for the quarter was $132 million, a 5.2% increase compared to the third quarter of 2013 and a 2% increase compared to the fourth quarter of 2012 of $129.781 million. The Adjusted EBITDA margin for the quarter was 32.4% compared to 32.3% in the previous quarter and 36.8% in the fourth quarter of 2012. Consistent with prior periods, Adjusted EBITDA and Adjusted EBITDA margin were negatively impacted by a non-cash charge relating to data center operating leases. Net income was $21 million for the quarter, up 27.5% from the previous quarter and down 30% from the fourth quarter of 2012 net income of $29.907 million. Net income margin for the quarter was 5.1% compared to 4.2% for the previous quarter and 8.5% in the fourth quarter of 2012. Cash flow from operating activities was $109.518 million for the fourth quarter of 2013 compared to $120.788 million a year ago. Capital expenditures were $116 million, including $65 million for purchases of customer gear, $23 million for data center build outs, $8 million for office build outs and $20 million for capitalized software and other projects, compared to $88.015 million a year ago. Adjusted free cash flow for the quarter was $15 million. Diluted earnings per share for the period were $0.14 compared to $0.21 per share a year ago. Income from operations was $27.157 million against $49.623 million a year ago. Income before income taxes was $26.906 million against $48.877 million a year ago. Return on capital was 9.6% against 16.9% a year ago. Return on assets was 5.7% against 9.4% a year ago.
For the full year, the company reported net revenue of $1,534.786 million against $1,309.239 million a year ago. Income from operations was $133.136 million against $172.741 million a year ago. Income before income taxes was $130.759 million against $168.007 million a year ago. Net income was $86.737 million or $0.61 per diluted share against $105.418 million or $0.75 per diluted share a year ago. Net cash provided by operating activities was $444.060 million against $399.499 million a year ago. Purchases of property and equipment were $452.596 million against $270.374 million a year ago. Adjusted EBITDA was $505.788 million against $464.132 million a year ago. Total capital expenditures were $465.314 million against $337.682 million a year ago. Return on capital was 11.0% against 15.9% a year ago. Adjusted free cash flow was $34.012 million. Return on assets was 6.2% against 9.1% a year ago.
The company expects revenue growth for the full year 2014 to range between 15% and 18% or $1.765 billion to $1.8 billion. Adjusted EBITDA margins are expected to range between 32% and 35% for the full year.
For the first quarter of 2014, the company expects the revenue to grow between 2% and 3.5% or $416 million to $422 million as compared to 2.6% in first quarter of 2013. Due to seasonally higher expenses in the first quarter each year, the company expects adjusted EBITDA margins to range between 31% and 33% in first quarter of 2014. Margins will likely improve in subsequent quarters.
Rackspace Hosting Announces Executive Changes
Feb 10 14
Rackspace Hosting announced that Lanham Napier retired from the company as Chief Executive Officer and as a member of the Board of Directors. Graham Weston, Rackspace's co-founder and Executive Chairman of the Board of Directors, has been appointed Chief Executive Officer. Prior to joining Rackspace, Mr. Weston was a real estate entrepreneur. He remains Chief Executive Officer of Weston Properties.
Rackspace Hosting, Inc. Presents at The Goldman Sachs Technology and Internet Conference 2014, Feb-12-2014 09:40 AM
Feb 8 14
Rackspace Hosting, Inc. Presents at The Goldman Sachs Technology and Internet Conference 2014, Feb-12-2014 09:40 AM. Venue: The Palace Hotel, 2 New Montgomery Street, San Francisco, CA 94105, United States. Speakers: Taylor Rhodes, President.