Rackspace Hosting has reported net revenue of $187.3m for the second quarter of 2010, an increase of 23% as compared to $152m for the same period last year.
Managed hosting revenue of the company increased to $164.1m, up from $139m in the second quarter of 2009. Cloud revenue increased to $23.2m in the quarter, up from $13.1m.
For the quarter ended June 30, 2010, the company posted an operating income of $18m, an increase of 34.3% as compared to $13.4m for the same quarter of 2009. Operating expenses increased to $169.5m from $139m of the second quarter of 2009.
The company posted a net income of $11.2m, an increase of 60% compared to $7m for the year-ago quarter. Diluted net income per share for the quarter was $0.08, compared to $0.06 for to Q2 FY09.
Lanham Napier, president and CEO of Rackspace, said: "Looking at our performance in the first two quarters of the year, it is clear that we are delivering on our financial plan. Our subscription revenue model gives us lots of stability, and we are optimistic that we will continue delivering on our goals."
