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Jun 30, 2024
Rackspace Q2 2024 Earnings Report
Rackspace's financial performance exceeded expectations for revenue, operating profit, and EPS, with a focus on strengthening the pipeline and driving cost efficiencies.
Key Takeaways
Rackspace Technology reported Q2 2024 revenue of $685 million, an 8% decrease year-over-year. Net income was $25 million, compared to a net loss of $(27) million in the same quarter last year. The company is focused on stabilizing and growing revenue and profit while continuing to drive cost efficiencies.
Revenue was $685 million, down 8% year-over-year.
Private Cloud revenue was $260 million, a 17% decrease year-over-year.
Public Cloud revenue was $425 million, a 2% decrease year-over-year.
Net income was $25 million, compared to a net loss of $(27) million year-over-year.
Revenue by Segment
Forward Guidance
Rackspace Technology provided the following guidance for Q3 2024: Total Revenue is expected to be between $668 - $680 million. Private Cloud Revenue is expected to be between $255 - $262 million. Public Cloud Revenue is expected to be between $414 - $419 million. Non-GAAP Operating Profit is expected to be between $29 - $31 million. Non-GAAP Loss Per Share is expected to be between $(0.06) - $(0.08). Non-GAAP Other Income (Expense) is expected to be between $(51) – $(55) million. Non-GAAP Tax Expense Rate is expected to be 26 %. Non-GAAP Weighted Average Shares is expected to be 231-233 million.
Positive Outlook
- Total Revenue is expected to be between $668 - $680 million.
- Private Cloud Revenue is expected to be between $255 - $262 million.
- Public Cloud Revenue is expected to be between $414 - $419 million.
- Non-GAAP Operating Profit is expected to be between $29 - $31 million.
- Non-GAAP Tax Expense Rate is expected to be 26 %.
Challenges Ahead
- Non-GAAP Loss Per Share is expected to be between $(0.06) - $(0.08).
- Non-GAAP Other Income (Expense) is expected to be between $(51) – $(55) million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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