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Mar 31, 2021
Rackspace Q1 2021 Earnings Report
Rackspace Technology reported record revenue and exceeded guidance, demonstrating strong growth and improved profitability.
Key Takeaways
Rackspace Technology reported a strong start to the year with record revenue of $726 million, up 11% year-over-year. Core revenue grew 15% to $677 million. The company's profitability improved, with Non-GAAP Earnings Per Share growing 44% year-over-year to $0.23. Quarterly cash flow from operating activities also saw a significant increase, reaching $103 million.
Total revenue increased by 11% year-over-year to $726 million.
Core revenue grew by 15% year-over-year to $677 million.
Non-GAAP Earnings Per Share increased by 44% year-over-year to $0.23.
Cash flow from operating activities improved dramatically to $103 million, a four-fold year-over-year increase.
Rackspace
Rackspace
Forward Guidance
Rackspace Technology is providing the following guidance for Q2 2021 and FY 2021: Revenue is expected to be $735-$745 million for Q2 2021 and $2.9-$3.1 billion for FY 2021. Core Revenue is expected to be $690-$698 million for Q2 2021 and $2.7-$2.9 billion for FY 2021. Non-GAAP Operating Profit is expected to be $113-$117 million for Q2 2021 and $500-$530 million for FY 2021. Non-GAAP Earnings Per Share is expected to be $0.21-$0.23 for Q2 2021 and $0.95-$1.05 for FY 2021.
Positive Outlook
- Revenue is expected to be $735-$745 million for Q2 2021 and $2.9-$3.1 billion for FY 2021.
- Core Revenue is expected to be $690-$698 million for Q2 2021 and $2.7-$2.9 billion for FY 2021.
- Non-GAAP Operating Profit is expected to be $113-$117 million for Q2 2021 and $500-$530 million for FY 2021.
- Non-GAAP Earnings Per Share is expected to be $0.21-$0.23 for Q2 2021.
- Non-GAAP Earnings Per Share is expected to be $0.95-$1.05 for FY 2021.
Challenges Ahead
- Non-GAAP Other Income (Expense) is expected to be ($52)-($53) million for Q2 2021 and ($212)-($222) million for FY 2021.
- Non-GAAP Tax Expense Rate is expected to be 26% for Q2 2021 and FY 2021.
- Non-GAAP Weighted Average Shares are expected to be 214-215 million for Q2 2021.
- Non-GAAP Weighted Average Shares are expected to be 215-217 million for FY 2021.
- Rackspace Technology has not reconciled Non-GAAP Operating Profit, Non-GAAP Earnings Per Share, Non-GAAP Other Income (Expense) or Non-GAAP Tax Expense Rate guidance to the most directly comparable GAAP measure.