SAN ANTONIO, Tex. ( TheStreet) -- Almost a year to the day since its IPO, hosting specialist Rackspace ( RAX beat Wall Street's sales estimate in its second-quarter results after Tuesday's closing bell. Boosted by its managed hosting services, Rackspace posted revenue of $152 million, a 16% hike on the same period last year and just above Wall Street's estimate of $148.98 million. Second-quarter revenue from managed hosting came in at $138.9 million, up from $134.2 million in the prior quarter. Revenue from cloud services was $13.1 million, up just over $2 million sequentially. Rackspace earned 6 cents a share on net income of $7 million, up from 4 cents a share and net income of $4.2 million in the prior year's quarter. Analysts surveyed by Thomson Financial had estimated earnings of 6 cents a share. "We have been running the business to scale the profits and returns in our managed hosting offering while investing in the long-term, game changing offerings in our cloud business," said Lanham Napier, the Rackspace CEO, in a statement. "Additionally, we have strengthened our pipeline by competing for larger opportunities and we are gaining traction in the enterprise space." Rackspace, which competes with AT&T ( T - Get Report) and Savvis ( SVVS, grew its customer list from just over 62,000 to almost 71,000 sequentially. Shares of Rackspace were rising 4% to $14.98 in recent extended trading. -- Written by James Rogers in New York.