NASDAQ$RXT

Rackspace Technology Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Rackspace Technology reported solid second quarter 2021 results with double-digit revenue growth and strong operating profit margins.

Rackspace Technology reported a record revenue of $744 million, up 13% year-over-year. Core revenue grew 17% to $698 million. Non-GAAP Earnings Per Share grew 14% year-over-year to $0.24. The company's working capital and cash management transformation programs have driven excellent results with more than $100 million of operating cash flow for the second consecutive quarter.

  • Record Revenue of $744 million, up 13% Year-over-Year
  • Core Revenue Grew 17% to $698 million
  • Non-GAAP Earnings Per Share Grew 14% Year-Over-Year to $0.24
  • Quarterly Cash Flow From Operating Activities of $106 million

Headline financials

Total Revenue

$744M

Previous: $657M+13.3%
EPS (adj)

$0.24

Previous: $0.21+14.3%
Capital Expenditures

-$66M

Previous: -$66.4M+0.6%
Free Cash Flow

-$103M

Previous: -$99M-3.6%
Net Income

-$36.6M

Previous: -$32.6M-12.3%
Operating Income

$2.9M

Previous: $22.7M-87.2%
Gross Profit

$236M

Previous: $242M-2.6%
Cash & Equivalents

$215M

Previous: $161M+33.1%
Total Assets

$6.41B

Previous: $6.31B+1.6%
Stock-Based Comp

$20.4M

Previous: $9.1M+124.2%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$744M

Q2 2021+13.3%vs Q2 2020
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Rackspace Technology is providing Q3 2021 guidance with revenue between $750 - $760 million, core revenue between $705 - $715 million, Non-GAAP Operating Profit between $118 - $122 million, and Non-GAAP Earnings Per Share between $0.23 - $0.25.

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 Q2 2021

Historical avgQ2 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

Earnings price reactions
QuarterReport dateReaction (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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