NASDAQ$RXT

Rackspace Technology Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported revenue and profit above guidance with solid cash flow.

Rackspace Technology reported Q3 2022 results with revenue of $788 million, a 3% increase year-over-year. The company is realigning to a two business unit model and remains on track to begin operating and reporting in this new structure beginning January 2023.

  • Revenue of $788 million in the Third Quarter, up 3% Year-over-Year.
  • Core Revenue Grew 5% to $751 million.
  • Quarterly Cash Flow From Operating Activities of $71 million.
  • Delivered third quarter revenue and profit above guidance and reported solid cash flow.

Headline financials

Total Revenue

$788M

Previous: $763M+3.3%
EPS (adj)

$0.10

Previous: $0.25-60.0%
Capital Expenditures

-$65.4M

Previous: -$87.2M+25.0%
Free Cash Flow

-$577M

Previous: -$122M-373.0%
Net Income

-$512M

Previous: -$34.8M-1370.4%
Operating Income

-$477M

Previous: -$2.9M-16337.9%
Gross Profit

$207M

Previous: $232M-10.6%
Cash & Equivalents

$249M

Previous: $260M-4.2%
Total Assets

$5.69B

Previous: $6.39B-11.0%
Stock-Based Comp

$19.4M

Previous: $19.1M+1.6%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$788M

Q3 2022+3.3%vs Q3 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Rackspace Technology is providing guidance for Q4 2022.

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 2022

Historical avgQ3 2022

+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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