NASDAQ$RXT
Rackspace Technology Inc · Q1 2021 earnings
Q1 2021 earnings · · Investor relations
Briefing
Rackspace Technology reported record revenue and exceeded guidance, demonstrating strong growth and improved profitability.
Rackspace Technology reported a strong start to the year with record revenue of $726 million, up 11% year-over-year. Core revenue grew 15% to $677 million. The company's profitability improved, with Non-GAAP Earnings Per Share growing 44% year-over-year to $0.23. Quarterly cash flow from operating activities also saw a significant increase, reaching $103 million.
- Total revenue increased by 11% year-over-year to $726 million.
- Core revenue grew by 15% year-over-year to $677 million.
- Non-GAAP Earnings Per Share increased by 44% year-over-year to $0.23.
- Cash flow from operating activities improved dramatically to $103 million, a four-fold year-over-year increase.
Headline financials
Revenue & EPS history
Rackspace · Revenue · Quarterly
$726M
Forward guidance
Rackspace Technology is providing the following guidance for Q2 2021 and FY 2021: Revenue is expected to be $735-$745 million for Q2 2021 and $2.9-$3.1 billion for FY 2021. Core Revenue is expected to be $690-$698 million for Q2 2021 and $2.7-$2.9 billion for FY 2021. Non-GAAP Operating Profit is expected to be $113-$117 million for Q2 2021 and $500-$530 million for FY 2021. Non-GAAP Earnings Per Share is expected to be $0.21-$0.23 for Q2 2021 and $0.95-$1.05 for FY 2021.
Tailwinds
- Revenue is expected to be $735-$745 million for Q2 2021 and $2.9-$3.1 billion for FY 2021.
- Core Revenue is expected to be $690-$698 million for Q2 2021 and $2.7-$2.9 billion for FY 2021.
- Non-GAAP Operating Profit is expected to be $113-$117 million for Q2 2021 and $500-$530 million for FY 2021.
- Non-GAAP Earnings Per Share is expected to be $0.21-$0.23 for Q2 2021.
- Non-GAAP Earnings Per Share is expected to be $0.95-$1.05 for FY 2021.
Headwinds
- Non-GAAP Other Income (Expense) is expected to be ($52)-($53) million for Q2 2021 and ($212)-($222) million for FY 2021.
- Non-GAAP Tax Expense Rate is expected to be 26% for Q2 2021 and FY 2021.
- Non-GAAP Weighted Average Shares are expected to be 214-215 million for Q2 2021.
- Non-GAAP Weighted Average Shares are expected to be 215-217 million for FY 2021.
- Rackspace Technology has not reconciled Non-GAAP Operating Profit, Non-GAAP Earnings Per Share, Non-GAAP Other Income (Expense) or Non-GAAP Tax Expense Rate guidance to the most directly comparable GAAP measure.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2021
+2.3%
Avg return
Earnings day
+1.8%
Avg return
5 days after
-6.8%
Avg return
30 days after
48%
12 / 25 earnings
Positive
+67.4%
Q4 2025
Best reaction
-20.6%
Q4 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +55.5% | +63.2% | +33.1% | |
| Q4 2025 | +67.4% | +82.2% | -22.2% | |
| Q3 2025 | -15.3% | -18.5% | -30.1% | |
| Q1 2025 | -13.4% | -11.1% | -18.1% | |
| Q4 2024 | +0.7% | -9.0% | -35.1% | |
| Q3 2024 | +8.6% | -13.3% | -10.4% | |
| Q2 2024 | +6.1% | +13.2% | -0.5% | |
| Q1 2024 | +5.9% | +11.3% | +17.7% | |
| Q4 2023 | -14.8% | +14.9% | +13.0% | |
| Q3 2023 | -1.8% | -10.0% | +7.9% | |
| Q2 2023 | +13.6% | +6.6% | +0.9% | |
| Q1 2023 | -14.0% | -18.7% | +16.2% | |
| Q4 2022 | -2.6% | -14.2% | -35.8% | |
| Q3 2022 | +22.1% | +17.5% | -33.4% | |
| Q2 2022 | -17.6% | -18.2% | -29.7% | |
| Q1 2022 | -10.9% | +4.0% | -13.3% | |
| Q4 2021 | -20.6% | -6.5% | -7.3% | |
| Q3 2021 | +12.5% | +3.4% | -9.4% | |
| Q2 2021 | -14.5% | -17.0% | -12.7% | |
| Q1 2021 | -19.9% | -18.0% | -10.8% | |
| Q4 2020 | -14.8% | -14.0% | -1.8% | |
| Q3 2020 | -1.7% | -7.2% | +13.1% | |
| Q4 2019 | +8.6% | +1.4% | -0.2% | |
| Q2 2019 | +8.6% | +1.4% | -0.2% | |
| Q2 2020 | +8.6% | +1.4% | -0.2% | |
| Q1 2020 | — | — | — | |
| Q3 2019 | — | — | — | |
| Q1 2019 | — | — | — |
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