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Sep 30, 2021
Rackspace Q3 2021 Earnings Report
Rackspace Technology's financial performance improved with increased revenue and Non-GAAP EPS, despite a net loss.
Key Takeaways
Rackspace Technology reported a record revenue of $763 million for Q3 2021, a 12% increase year-over-year. Core revenue grew by 15% to $718 million. The company experienced a net loss of $(35) million, but non-GAAP EPS increased by 32% year-over-year to $0.25.
Revenue reached a record $763 million, up 12% year-over-year.
Core Revenue increased by 15% to $718 million.
Non-GAAP Earnings Per Share grew 32% year-over-year to $0.25.
Operating activities generated $102 million in cash flow.
Rackspace
Rackspace
Forward Guidance
Rackspace Technology provided guidance for Q4 2021 and full year 2021.
Positive Outlook
- Revenue is expected to be between $766 million and $776 million for Q4 2021.
- Core Revenue is projected to be in the range of $724 million to $732 million for Q4 2021.
- Non-GAAP Operating Profit is anticipated to be between $118 million and $122 million for Q4 2021.
- Non-GAAP Earnings Per Share are forecasted to be between $0.23 and $0.25 for Q4 2021.
- Revenue is expected to be between $2.998 billion and $3.008 billion for the full year 2021.
Challenges Ahead
- Non-GAAP Other Income (Expense) is expected to be ($51) – ($52) million for Q4 2021.
- Non-GAAP Tax Expense Rate is projected at 26% for Q4 2021.
- Non-GAAP Weighted Average Shares are expected to be 212 – 214 million for Q4 2021.
- Core Revenue is projected to be in the range of $2.815 billion to $2.823 billion for the full year 2021.
- Non-GAAP Operating Profit is anticipated to be between $480 million and $484 million for the full year 2021.