Loading...
•
Dec 31, 2023
Rackspace Q4 2023 Earnings Report
Announced results exceeding guidance with revenue of $720 million and strategic debt refinancing.
Key Takeaways
Rackspace Technology reported a Q4 2023 revenue of $720 million, a 9% decrease year-over-year. The company's performance exceeded revenue, operating profit, and EPS guidance. Rackspace successfully refinanced its debt, reducing net financial debt by over $900 million and securing $575 million in new capital.
Q4 revenue was $720 million, down 9% year-over-year.
Private Cloud revenue was $285 million, down 14% year-over-year.
Public Cloud revenue was $435 million, down 5% year-over-year.
Net income was $28 million, compared to a net loss of $(214) million in Q4 2022.
Rackspace
Rackspace
Rackspace Revenue by Segment
Revenue by Segment
Public Cloud Revenue
CapyFin.comPrivate Cloud Revenue
CapyFin.com Forward Guidance
Rackspace Technology is providing the following guidance for Q1 2024: revenue between $680 - $690 million, private cloud revenue between $268 - $273 million, public cloud revenue between $412 - $417 million, non-GAAP operating profit between $12 - $14 million and non-GAAP loss per share between ($0.12) - ($0.14).
Positive Outlook
- Revenue between $680 - $690 million.
- Private Cloud Revenue between $268 - $273 million.
- Public Cloud Revenue between $412 - $417 million.
- Non-GAAP Operating Profit between $12 - $14 million.
- Non-GAAP Loss Per Share between ($0.12) - ($0.14).
Challenges Ahead
- Non-GAAP Other Income (Expense) ($50) – ($52) million
- Non-GAAP Tax Expense Rate 26 %
- Non-GAAP Weighted Average Shares 221 – 223 million
- Uncertainty regarding share-based compensation expense.
- Potential variability of certain items impacting GAAP net income (loss).
Revenue & Expenses
Visualization of income flow from segment revenue to net income