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Mar 31, 2023
Rackspace Q1 2023 Earnings Report
Reported revenue above guidance, completed business unit realignment, and saw benefits in focus and cost efficiencies.
Key Takeaways
Rackspace Technology reported Q1 2023 revenue of $759 million, a 2% decrease year-over-year, but above the midpoint of guidance. The company completed its business unit realignment and is seeing benefits in focus and cost efficiencies. 2023 is expected to be a transformation year, with Q2 2023 being the trough in profitability.
First quarter revenue was $759 million, down 2% year-over-year.
Public Cloud revenue grew 7% year-over-year to $445 million.
Private Cloud revenue was $314 million, down 12% year-over-year.
Net loss was $(612) million, compared to net loss of $(39) million in the first quarter of 2022.
Rackspace
Rackspace
Forward Guidance
Rackspace Technology provided guidance for Q2 2023, including total revenue between $725 and $735 million, public cloud revenue between $430 and $435 million, private cloud revenue between $295 and $300 million, Non-GAAP operating profit between $33 and $37 million, and Non-GAAP loss per share between ($0.09) and ($0.07).