January 31, 2006 — (WEB HOST INDUSTRY REVIEW) — Web hosting provider Rackspace Managed Hosting (rackspace.com) announced on Tuesday that it recorded 60 percent revenue growth and a 129 percent increase in net income in 2005.
According to Rackspace, total revenue for the fourth quarter was $41 million, and a total of $139 million for the year. Net income for the year was $11 million.
The company says it added 600 customers in the fourth quarter and 2,000 for the year. In order to support the pace of growth, Rackspace plans to add 400 employees in 2006 after hiring 250 in the past year. The hires will span sales, support and data center operations.
“Rackspace achieved a significant milestone in 2005, surpassing the $100 million mark in revenue, and begins 2006 with a strong financial position and a loyal customer base that grows with us month over month,” says Lanham Napier, president of Rackspace Managed Hosting. “The secret to our success is our delivery of fanatical support to our customers. As we continue our mission to make hosting an excellent service experience for all enterprises, we’re gaining market share against players like IBM, Savvis and AT&T.”
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