Rackspace Hosting Inc. (NYSE:RAX) reported net income above Wall Street’s expectations for the third quarter. Net income for Rackspace Hosting Inc. rose to $20 million (14 cents per share) vs. $11.8 million (9 cents per share) in the same quarter a year earlier. This marks a rise of 69.2% from the year earlier quarter. Revenue rose 32.5% to $264.6 million from the year earlier quarter. RAX beat the mean analyst estimate of 13 cents per share. Analysts were expecting revenue of $261.6 million.

“In summary, we are very pleased with this quarter’s results. We are focused on finishing the year on a strong note and will give you a more in depth look into our 2012 plans when we report our full year results in February,” said Karl Pichler, chief financial officer.

Competitors to Watch: Equinix, Inc. (NASDAQ:EQIX), SAVVIS, Inc. (NASDAQ:SVVS), Akamai Technologies, Inc. (NASDAQ:AKAM), Computer Sciences Corp. (NYSE:CSC), InterNAP Network Services (NASDAQ:INAP), Intl. Business Machines Corp. (NYSE:IBM), EarthLink, Inc. (NASDAQ:ELNK), Hewlett-Packard Company (NYSE:HPQ), Microsoft Corporation (NASDAQ:MSFT), and Onstream Media Corp (NASDAQ:ONSM).

Demand Media Inc. (NYSE:DMD) reported its results for the third quarter.  The company reported a loss of $4.1 million (5 cents per share) vs. a loss of $300,000 (64 cents per share) the year earlier. Revenue rose 25% to $81.5 million from the year earlier quarter. DMD reported adjusted earnings per share of 6 cents, beating the mean analyst estimate of 4 cents per share.

“We reported another strong quarter as we continue to build Demand Media’s foundation for long-term growth,” said Richard Rosenblatt, Chairman and CEO of Demand Media. “The Company is uniquely positioned to deliver data-driven professional content through its robust content publishing platform. We are now in the process of optimizing that platform while increasing our investment in video content and enhancing the quality, engagement and user experience of our sites.”

Competitors to Watch: Google Inc. (NASDAQ:GOOG), AOL, Inc. (NYSE:AOL), Yahoo! Inc. (NASDAQ:YHOO), IAC/InterActiveCorp (NASDAQ:IACI), Answers Corporation (NASDAQ:ANSW), WebMD Health Corp. (NASDAQ:WBMD), Baidu.com, Inc. (NASDAQ:BIDU), Microsoft Corporation (NASDAQ:MSFT), Ancestry.com Inc (NASDAQ:ACOM), and WebMediaBrands Inc (NASDAQ:WEBM).

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