Rackspace posts $48.8 million in net income for first quarter of 2016

Office reportsRackspace posted $48.8 million dollars in net income for the three months that ended on March 31, 2016. When compared to the same quarter in 2015, Rackspace almost doubled its net income. For the same quarter that ended on March 31, 2015 Rackspace reported a net income of $27.5 million dollars.

Net revenue for the three quarters that ended on March 31, 2016 was $518.1 million dollars. For the same three quarters in 2015, Rackspace had net revenues of $480.2 million dollars. A modest increase in net revenue in over a year.

Other interesting facts from the unaudited numbers released by Rackspace includes the number of employees Rackspace had on payroll for the three months ended on March 31, 2016 was 6,203. Rackspace added almost 200 employees since reporting 5,964 employees for the quarter that ended on March 31, 2015.

Rackspace has 116,507 servers deployed at the end of March 31, 2016. In March 31, 2015 Rackspace had 114,105 servers. Average monthly revenue per server was $1,472 for the three months ended on March 31, 2016.

Capital expenditures by Rackspace has decreased since last year. Rackspace only spent $78.8 million compared to the different quarters last year where Rackspace was spending from $90.2 million to $151.6 million dollars (refer to their statement for full info).

“During the fourth quarter of 2015, we decommissioned approximately 2,400 servers in order to replace older, less efficient gear and also as part of the migration of customers from existing data centers to our new London data center. The process of replacing older, less efficient gear continued in Q1 2016 as approximately 1,600 additional servers were decommissioned.”

Source: Rackspace.com