Web hosting company Rackspace has reported that it was able to record an 18.3% increase in its third quarter revenue which was achieved because of the higher demand for hosting and cloud management services that it specializes in.
The third quarter revenue of the company went up to $459.8 million with the period that ended on the 30th of September which by the way is way higher than the $388.6 million that it earned in 2013.
As for the net income, Rackspace’s increased to $25.7 million which when computed equals to the value of 18 cents per share. This is also considerably higher than what the company logged a year earlier which was $16.3 million or 11 cents per share. The net income that Rackspace earned is better-than-expected and higher than the $458.4 million or 16 cents per share that the analysts forecasted.
In September, the web hosting company declared that it doesn’t plan to sell itself after a strategic review and said that it was authorized with a $500 million buyback by the board over the next couple of years.
Rackspace has already set its goals for the fourth quarter and said that it expects to report revenue between $469 million and $476 million while the analysts have set their forecast at $476.5 million.
On Monday, the company’s shares traded at $38.45 per share in extended trading on the New York Stock Exchange.