NASDAQ$RXT

Rackspace Technology Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Rackspace Technology's financial performance improved with increased revenue and Non-GAAP EPS, despite a net loss.

Rackspace Technology reported a record revenue of $763 million for Q3 2021, a 12% increase year-over-year. Core revenue grew by 15% to $718 million. The company experienced a net loss of $(35) million, but non-GAAP EPS increased by 32% year-over-year to $0.25.

  • Revenue reached a record $763 million, up 12% year-over-year.
  • Core Revenue increased by 15% to $718 million.
  • Non-GAAP Earnings Per Share grew 32% year-over-year to $0.25.
  • Operating activities generated $102 million in cash flow.

Headline financials

Total Revenue

$763M

Previous: $682M+11.9%
EPS (adj)

$0.25

Previous: $0.19+31.6%
Capital Expenditures

-$87.2M

Previous: -$97.6M+10.7%
Free Cash Flow

-$122M

Previous: -$199M+38.6%
Net Income

-$34.8M

Previous: -$101M+65.6%
Operating Income

-$2.9M

Previous: -$14.7M+80.3%
Gross Profit

$232M

Previous: $246M-5.7%
Cash & Equivalents

$260M

Previous: $253M+2.7%
Total Assets

$6.39B

Previous: $6.42B-0.5%
Stock-Based Comp

$19.1M

Previous: $40.2M-52.5%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$763M

Q3 2021+11.9%vs Q3 2020
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Rackspace Technology provided guidance for Q4 2021 and full year 2021.

Tailwinds

  • Revenue is expected to be between $766 million and $776 million for Q4 2021.
  • Core Revenue is projected to be in the range of $724 million to $732 million for Q4 2021.
  • Non-GAAP Operating Profit is anticipated to be between $118 million and $122 million for Q4 2021.
  • Non-GAAP Earnings Per Share are forecasted to be between $0.23 and $0.25 for Q4 2021.
  • Revenue is expected to be between $2.998 billion and $3.008 billion for the full year 2021.

Headwinds

  • Non-GAAP Other Income (Expense) is expected to be ($51) – ($52) million for Q4 2021.
  • Non-GAAP Tax Expense Rate is projected at 26% for Q4 2021.
  • Non-GAAP Weighted Average Shares are expected to be 212 – 214 million for Q4 2021.
  • Core Revenue is projected to be in the range of $2.815 billion to $2.823 billion for the full year 2021.
  • Non-GAAP Operating Profit is anticipated to be between $480 million and $484 million for the full year 2021.

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 Q3 2021

Historical avgQ3 2021

+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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