NASDAQ$RXT

Rackspace Technology Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong execution and performance, capitalizing on the multicloud market opportunity.

Rackspace Technology reported a revenue of $682 million, a 13% increase year-over-year. The company's adjusted EPS was $0.19, a 36% increase year-over-year. However, the company experienced a net loss of $101 million, or $(0.54) per diluted share.

  • Third Quarter Revenue of $682 million, up 13% Year-over-Year
  • Record Quarterly Bookings of $315 million, an increase of 64% Year-over-Year
  • Net loss of $101 million, or $(0.54) per diluted share
  • Adjusted Earnings Per Share of $0.19, up 36% Year-over-Year

Headline financials

Total Revenue

$682M

Previous: $602M+13.3%
EPS (adj)

$0.19

Previous: -$3.69+105.2%
Capital Expenditures

-$97.6M

No prior period
Free Cash Flow

-$199M

No prior period
Net Income

-$101M

Previous: -$60.5M-67.3%
Operating Income

-$14.7M

Previous: $32.1M-145.8%
Gross Profit

$246M

Previous: $254M-3.2%
Cash & Equivalents

$253M

No prior period
Total Assets

$6.42B

No prior period
Stock-Based Comp

$40.2M

No prior period

Revenue & EPS history

Rackspace · Revenue · Quarterly

$682M

Q3 2020+13.3%vs Q3 2019
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Rackspace Technology is increasing guidance for full year 2020.

Tailwinds

  • Consolidated revenue growth, Year-over-Year in constant currency: 10.0% - 11.0%
  • Core Revenue growth, Year-over-Year in constant currency: 14.0% - 15.0%
  • Adjusted EBITDA: $758 million - $762 million
  • Adjusted Earnings Per Share: $0.79 - $0.81

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 Q3 2020

Historical avgQ3 2020

+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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