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Dec 31, 2024
Rackspace Q4 2024 Earnings Report
Rackspace Technology reported a decrease in revenue and net loss for the fourth quarter of 2024, with a notable increase in non-GAAP loss per share.
Key Takeaways
Rackspace Technology reported a fourth-quarter revenue of $686 million, a 5% decrease year-over-year, and a net loss of $60 million. The company exceeded guidance for fourth-quarter revenue, operating profit, and EPS, driven by strong sales execution across both business units, resulting in record-breaking quarterly sales bookings.
Fourth Quarter Revenue decreased by 5% year-over-year to $686 million.
Net loss for the fourth quarter was $60 million, compared to a net income of $28 million in the prior year.
Non-GAAP Operating Profit decreased by 13% to $39 million.
Fourth Quarter Cash Flow From Operating Activities was $54 million.
Revenue by Segment
Forward Guidance
Rackspace Technology provided Q1 2025 guidance with expected revenue between $653 million and $665 million, and non-GAAP EPS between -$0.07 and -$0.09.
Positive Outlook
- Expected Non-GAAP Operating Profit between $19 million and $21 million.
- Anticipated Non-GAAP Tax Expense Rate of 26%.
- Projected Non-GAAP Weighted Average Shares of 245 million.
Challenges Ahead
- Expected revenue decrease compared to Q4 2024.
- Anticipated Non-GAAP Loss Per Share between ($0.07) and ($0.09).
- Projected Non-GAAP Other Income (Expense) between ($46) million and ($50) million.
- Non-GAAP Operating Profit is expected to be lower than Q4 2024.
- Private Cloud Revenue is expected to decrease to between $247 million and $253 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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