Rackspace Managed Hosting has announced solid growth in its fourth quarter and year-end results for 2005.
In the fourth quarter of 2005, the company's revenue was £23.5m and £79.5m for the year, representing a 58% increase over the fourth quarter of 2004 and a 60% increase over 2004 annual revenues. Additionally, Rackspace grew its net income by 129% to £6.3m in 2005.
Rackspace adopted Economic Value Added (EVA) in 2005 to focus on creating sustainable shareholder value. The company's EVA for the fourth quarter 2005 was £1.2m and £3.4m for the year.
Rackspace added more than 600 new customers in the fourth quarter of 2005 and more than 2,000 new customers for the year. To support the company's rapid growth, Rackspace added 250 employees in 2005 and plans to hire up to 400 more in 2006 across all areas of the company including sales, support and datacentre operations.