whats known and unknown

Rackspace’s third quarter: Same subpar results, different day

on November 12, 2013


Rackspace(s rax) announced its third-quarter earnings on Monday, and they sent the same message as they did last quarter: Growing a legitimate cloud business in the shadow of Amazon(s amzn) Web Services is hard work.

Here’s a chart I made comparing Amazon and Rackspace cloud earnings for the second quarter, updated to include the third quarter and to include total “other” revenue for Amazon. Rackspace’s cloud revenue rose nearly 37 percent year-over-year to $108.4 million.

Rackspace revenues for both its cloud and dedicated hosting businesses were up during the third quarter, but as a whole they dropped in terms of year-over-year growth and failed to meet analyst expectations. Net income was down nearly 40 percent, although Rackspace CEO Lanham Napier said during the company’s earnings call that’s a product of increased technological investment that should pay off down the road, according to a ZDNet post.

Napier noted…

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