Friday, August 13, 2010

Terremark Revenue Up 20% Y/Y

Terremark (TMRK) reported revenue of $79 million yesterday, with its cloud service up to $6.5 million, which represented 19% sequential growth. Still under 10% of revenue though, and cloud does a lot more to create press intrigue than signing up a government agency to a co-lo contract, and carries an excessive press release/revenue ratio.

As a resident of the DC area, I thought it was kind of funny how they described their Culpeper NAP as being "outside" downtown Washington in the 10-Q. It's more than just outside, it's almost 70 miles away! Still, this distance is one reason why the facility is popular with the Federal government. Federal customers accounted for exactly 20% of revenue for the quarter, down from 22% a year earlier.

Colocation is growing slightly faster than managed, with colo revenue now topping 40% of total. While I'm not a big fan of the all-things-to-all people managed + colo + cloud strategy, Terremark pulls it off better than anyone else due to their focus on the Miami-Latin America and Federal markets.

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