NASDAQ$RXT
Rackspace Technology Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Rackspace Technology's financial performance declined slightly in Q2 2023, with revenue decreasing year-over-year but exceeding guidance. The company focused on generative AI solutions and saw growth in public cloud revenue, offset by a decline in private cloud revenue. Operating loss was reported, but non-GAAP measures showed some profitability challenges.
Rackspace Technology reported a 3% year-over-year decrease in revenue to $746 million for Q2 2023. Public Cloud revenue increased by 3% to $435 million, while Private Cloud revenue decreased by 11% to $311 million. The company experienced a loss from operations of $(64) million and a net loss of $(27) million. Non-GAAP operating profit was $39 million, and non-GAAP loss per share was $(0.06).
- Total revenue decreased by 3% year-over-year to $746 million.
- Public Cloud revenue increased by 3% year-over-year to $435 million.
- Private Cloud revenue decreased by 11% year-over-year to $311 million.
- The company launched Foundry for AI by Rackspace (FAIR™) to focus on generative AI solutions.
Headline financials
Revenue & EPS history
Rackspace · Revenue · Quarterly
$746M
Forward guidance
Rackspace Technology provided guidance for Q3 2023, including revenue, public and private cloud revenue, non-GAAP operating profit, and non-GAAP loss per share.
Tailwinds
- Total Revenue: $722 - $732 million
- Public Cloud Revenue: $428 - $433 million
- Private Cloud Revenue: $294 - $299 million
- Non-GAAP Operating Profit: $43 - $47 million
- Non-GAAP Tax Expense Rate: 26%
Headwinds
- Non-GAAP Loss Per Share: $(0.06) - $(0.04)
- Non-GAAP Other Income (Expense): $(58) – $(60) million
- Non-GAAP Weighted Average Shares: 215 – 217 million
- Uncertainty regarding GAAP net income (loss)
- Potential variability of share-based compensation expense
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 2023
+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
| Quarter | Report date | Reaction (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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