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February 18, 2015updated 19 Aug 2016 4:00pm

Rackspace reveals fourth quarter financial growth

Net revenue for the 2014 fourth quarter up 15.8% from the previous year.

By James Nunns

Rackspace has released its financial results for the quarter ending December 31, 2014.

The results reveal that revenue grew at 16% compared to the fourth quarter 2013 and adjusted EBITDA for the quarter was at $165 million, which represents an increase of 25.3% from the fourth quarter of 2013.

Net revenue for the fourth quarter 2014 was $472 million, up 15.8% from the previous year fourth quarter. On a constant currency basis, net revenue grew 16.4% from the fourth quarter of 2013.

Cash flow from operating activities in the fourth quarter 2014 was $151 million and capital expenditures were at $105 million. At the end of the fourth quarter of 2014, cash and cash equivalents were $214 million.

Taylor Rhodes, president and CEO of Rackspace, said: "The strong growth and improving margins that we’ve posted demonstrate the traction that we’re gaining as the leader of the managed cloud segment.

"We will build on this momentum in 2015 by expanding the specialized expertise that we offer in areas such as ecommerce, big data and security. We’re helping more and more businesses leverage the power of the cloud without the pain of managing complex new technologies by themselves."

Rackspace expects that revenue for the first quarter of 2015 will grow between 2% and 3.5% on a constant currency basis. For the full year, the company expects revenue to grow between 14% and 18% on a constant currency basis.

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