Rackspace Hosting, Inc. (RAX) hits $421 million in Q1 revenue

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Rackspace Hosting, Inc. (NYSE:RAX) has reported its Q1 revenues after the bell on Monday. Rackspace reported a net income of $25 million (19 cents per share) and non-GAAP earnings were 20 cents per share on revenue of $421 million, up 3.2% sequentially and 16% annually. Wall Street analysts were expecting 12 cents per share on $419.3 million.

Rackspace’s shares jumped around 10% in after-hours trading after beating expectations. Rackspace said that the currency exchange rates had a positive impact on quarterly revenue “when compared to the previous quarter by $2.4 million and positively impacted when compared to the first quarter of 2013 by $6.6 million.”

“We are encouraged by qualitative factors, including the thousands of new customers we added in the quarter, including one of the largest we’ve ever landed. We also added significant new workloads for existing customers including Alex and Ani, Appboy, Clarks shoes, Under Armour and SunPower. Each of these customers values our managed cloud approach and chose us over providers of less expensive unmanaged infrastructure,” stated Rackspace CEO and chairman Graham Weston.

Rackspace said that revenue is expected to grow between 3% and 4.5%, or around $434 million to $440 million for the current quarter.

Rackspace now has 106,229 total servers, which is up from 103,886 servers at the end of Q4 2013. Rackspace has 5,743 employees as of March 31, up from 5,651 at the end of Q4 2013.

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