Last updated: August 14, 2014
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Rackspace says it expects Q3 revenue of $454m-$461m, largely above consensus, but in the face of intense cloud infrastructure (IaaS) price competition, adjusted EBITDA margin fell to 32.1% in Q2 from 33.2% and 32.8% a year ago.
Rackspace says it expects Q3 revenue of $454m-$461m, largely above consensus, but in the face of intense cloud infrastructure (IaaS) price competition, adjusted EBITDA margin fell to 32.1% in Q2 from 33.2% and 32.8% a year ago.
Rackspace expects a margin of 31%-33% in Q3; it recently overhauled its IaaS pricing in an attempt to stand out from rivals. Dedicated cloud (Web hosting) revenue rose +12% yr/yr to $310.6m. Public cloud (OpenStack) revenue rose +32% to $130.5m. Net upgrade rate rose to 1.5% from a depressed 0.9% in Q1.
Total server count in the second quarter of 2014 increased to 107,657, up from 106,229 servers at the end of the previous quarter.