Just a day after I post Rackspace: The Avis of Cloud Computing?, the company (NYSE:RAX) announced its 2009 results, and boy did they kill it. Net revenues grew 18.4% year-over-year and EBITDA rose 33.4% from 2008.
Especially interesting was the success in the cloud computing side of the house (the rest is traditional managed hosting). Here's an excerpt from MySanAntonio.com (Rackspace is based San Antonio, TX):
Cloud computing now accounts for roughly 9 percent of the company's total revenue, but that's expected to grow to about 14 percent this year, according to Tier 1 Research. By 2012, Tier 1 Research estimates Rackspace's cloud computing business will generate $272 million in revenue.
Also interesting was the following statement from CEO Lanham Napier:
“In 2009, given the extreme uncertainty in the economy, we were focused on cash and margins, and we proved we could flex our model, which helped us separate ourselves from the pack and emerge as a stronger competitor,” Napier said. “In 2010, we will shift our primary focus to growth.”
So as I said in my previous post, I continue to expect them to do well.
