The cloud computing company Rackspace has announced financial results for the quarter ended March 31, 2012. Net revenue for the first quarter of 2012 was $301 million, up 6.4% from the previous quarter and 31% from the first quarter of 2011. Net revenue for the first quarter of 2012 was negatively impacted by currency exchange rates when compared to the first quarter of 2011 by $2.0 million and negatively impacted compared to the fourth quarter of 2011 by $0.6 million.
Adjusted EBITDA for the quarter was $101 million, a 1.4% decrease compared to the fourth quarter of 2011 and a 33% increase compared to the first quarter of 2011. The adjusted EBITDA margin for the quarter was 33.4% compared to 36.1% in the previous quarter and 33.0% for the first quarter of 2011. Net income was $23 million for the quarter, down 7.5% from the previous quarter and up 68% from the first quarter of 2011. Net income margin for the quarter was 7.7% compared to 8.8% for the previous quarter and 6.0% in the first quarter of 2011.
Cash flow from operating activities was $70 million for the first quarter of 2012. Capital expenditures were $82 million, including $53 million for purchases of customer gear, $9 million for data center build outs, $5 million for office build outs and $15 million for capitalized software and other projects. At the end of the first quarter of 2012, cash and cash equivalents were $187 million, and debt including capital lease obligations totaled $144 million.
On a worldwide basis, Rackspace employed 4,335 Rackers as of March 31, 2012, up from 4,040 in the previous quarter. Total server count increased to 82,438 up from 79,805 servers at the end of the previous quarter, and total customers increased to 180,866, up from 172,510 at the end of the previous quarter.
