Web hosting company RackSpace just released its year-end financial analysis for 2011, revealing the company had an excellent fourth quarter and a great year overall. Revenue for the final three months of 2011 was reported at USD $283 million. That’s an impressive increase over the third quarter of more than 7%. For the year, RackSpace added more than 172,000 customers and increased its total number of servers to just under 80,000.
The great results sent the company’s stock over the $50 mark earlier this week. During the peak trading hours on the day the financial report was released, the price hovered around $55 per share. The only question is whether or not the company will be able to maintain its current success and leverage it into future growth. Analysts are not sure one way or the other.
At the heart of the company’s growth has been their cloud portfolio. RackSpace has leveraged their resources to focus on cloud services for small and mid-size companies, which many analysts believe has been the main catalyst in their impressive 2011 performance. Chief financial officer Karl Pichler remarked on the company’s financial success in an official statement.
“We are very pleased with the financial results we have generated for the fourth quarter and the full year,” he said. “We accomplished our financial objectives for 2011 and ended the year really strong.”
In order to maintain its position, analysts suggest RackSpace will have to continue its strong customer support currently provided by more than 4000 employees. The fact that their staff was 778 strong at the end of 2010 demonstrates how many new workers they are adding. If RackSpace can maintain high enough staffing levels they should be in a good position for the short term at least.