Rackspace Managed Hosting generated revenue of US $59-million for the third quarter of 2006, a 64.5% increase over 2005. 

The company also reported positive net income for the same period and has now experienced 31 consecutive quarters of revenue growth.
In South Africa, Rackspace provides managed hosting services to more than 70 companies. Internationally, the company has grown at a rate of more than 50% a year since it opened for business in 1998.
Its continued penetration of the enterprise hosting market was recognised recently through its inclusion in Gartner's "leaders quadrant" in its annual North American Web Hosting Magic Quadrant.
“More and more customers are coming to us for help in managing the infrastructure for many of their IT needs,” said chief financial officer Major Horton. “Our ability to offload the burden from our customers’ IT staff will enable us to sustain our leadership position in the market.”