NASDAQ$RXT

Rackspace Technology Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported solid revenue growth and profitability with strong cash flow from operations.

Rackspace Technology reported a 7% year-over-year increase in revenue, reaching $776 million. Core revenue grew by 9% to $735 million. The company is evaluating strategic alternatives to enhance shareholder value.

  • Revenue increased by 7% year-over-year to $776 million.
  • Core Revenue grew 9% to $735 million.
  • First quarter saw cash flow from operating activities of $65 million.
  • Company is evaluating strategic alternatives.

Headline financials

Total Revenue

$776M

Previous: $726M+6.8%
EPS (adj)

$0.22

Previous: $0.23-4.3%
Capital Expenditures

-$19.2M

Previous: -$36.9M+48.0%
Free Cash Flow

-$57.7M

Previous: -$101M+42.8%
Net Income

-$38.5M

Previous: -$64M+39.8%
Operating Income

$20.9M

Previous: $24.2M-13.6%
Gross Profit

$226M

Previous: $235M-4.0%
Cash & Equivalents

$269M

Previous: $198M+35.6%
Total Assets

$6.31B

Previous: $6.42B-1.7%
Stock-Based Comp

$17M

Previous: $17.2M-1.2%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$776M

Q1 2022+6.8%vs Q1 2021
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Rackspace Technology provided guidance for Q2 2022, including revenue between $780 - $790 million, core revenue between $744 - $752 million, Non-GAAP operating profit between $93 - $97 million, and Non-GAAP earnings per share between $0.15 - $0.17.

Tailwinds

  • Revenue $780 - $790 million
  • Core Revenue $744 - $752 million
  • Non-GAAP Operating Profit $93 - $97 million
  • Non-GAAP Earnings Per Share $0.15 - $0.17
  • Non-GAAP Weighted Average Shares 213 – 215 million

Headwinds

  • Non-GAAP Other Income (Expense) ($49) – ($51) million
  • Non-GAAP Tax Expense Rate 26 %

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+2.3%

Avg return

Earnings day

+1.8%

Avg return

5 days after

-8.4%

Avg return

30 days after

48%

12 / 25 earnings

Positive

+67.4%

Q4 2025

Best reaction

-20.6%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+56.0%+63.6%
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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro