NASDAQ$RXT

Rackspace Technology Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Rackspace Technology reported solid growth and profitability with robust cash flow.

Rackspace Technology reported Q2 2022 results with revenue of $772 million, a 4% increase year-over-year. Core revenue grew 5% to $733 million. The company reported a net loss of $(41) million, or $(0.19) per diluted share, and non-GAAP EPS of $0.17.

  • Revenue of $772 million in the Second Quarter, up 4% Year-over-Year.
  • Core Revenue Grew 5% to $733 million.
  • Quarterly Cash Flow From Operating Activities of $84 million.
  • Non-GAAP Earnings Per Share was $0.17 in the second quarter of 2022, a decrease of 29% as compared to Non-GAAP Earnings Per Share of $0.24 in the second quarter of 2021.

Headline financials

Total Revenue

$772M

Previous: $744M+3.8%
EPS (adj)

$0.17

Previous: $0.24-29.2%
Capital Expenditures

-$46.4M

Previous: -$66M+29.7%
Free Cash Flow

-$87M

Previous: -$103M+15.2%
Net Income

-$40.6M

Previous: -$36.6M-10.9%
Operating Income

$4M

Previous: $2.9M+37.9%
Gross Profit

$224M

Previous: $236M-4.9%
Cash & Equivalents

$261M

Previous: $215M+21.6%
Total Assets

$6.21B

Previous: $6.41B-3.2%
Stock-Based Comp

$23.1M

Previous: $20.4M+13.2%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$772M

Q2 2022+3.8%vs Q2 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Rackspace Technology is providing the following guidance for Q3 2022: Revenue between $769 - $779 million, Core Revenue between $733 - $741 million, Non-GAAP Operating Profit between $73 - $77 million, and Non-GAAP Earnings Per Share between $0.08 - $0.10.

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 Q2 2022

Historical avgQ2 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

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