Rackspace has been an especially hot company on Wall Street. In 2009, the stock is up over 200 percent. And when Rackspace revealed its quarterly financial results, it is clear why: while other companies have struggled to grow revenue, Rackspace grew its topline at an enviable 17 percent year-over-year.
The company’s CEO is giving cloud computing a healthy share of the credit. Chief Executive Lanham Napier told Reuters, “we believe that the cloud is a game-changing paradigm shift.” For this past quarter, cloud revenues were 10 pecent of the company’s total sales; they have grown 100 percent from the prior year.
Napier said he is investing heavily in their cloud offerings; the company’s capital expenditures should be around $185 million for 2009, according to a Motley Fool analysis.
He is also focused on becoming a leader in the cloud hosting business. “A year ago, Amazon was incredibly far ahead of us,” Napier said. “This year we’ve closed the gap.”