Rackspace has announced its financial results for the second quarter ended June 30, 2012 with the net revenue for the second quarter of 2012 was $319 million, up 5.9% from the previous quarter and 29% from the second quarter of 2011. Adjusted EBITDA for the quarter was $112 million, an 11.1% increase compared to the first quarter of 2012 and a 37% increase compared to the second quarter of 2011. The adjusted EBITDA margin for the quarter was 35.1% compared to 33.4% in the previous quarter and 33.0% for the second quarter of 2011.
Net income was $25 million for the quarter, up 8.4% from the previous quarter and up 43% from the second quarter of 2011. Net income margin for the quarter was 7.9% compared to 7.7% for the previous quarter and 7.1% in the second quarter of 2011. Cash flow from operating activities was $101 million for the second quarter of 2012. Capital expenditures were $82 million, including $54 million for purchases of customer gear, $3 million for data center build outs, $4 million for office build outs and $21 million for capitalized software and other projects.
Total server count increased to 84,978 up from 82,438 servers at the end of the previous quarter, and total customers increased to 190,958, up from 180,866 at the end of the previous quarter. On a worldwide basis, Rackspace employed 4,528 Rackers as of June 30, 2012, up from 4,335 in the previous quarter.