NASDAQ$RXT

Rackspace Technology Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Rackspace Technology's Q3 2023 results were announced, showing a revenue decrease of 7% year-over-year. The company's two-business unit operating model was fully implemented and leadership teams were executing their plans. New offerings were launched across Public Cloud, Private Cloud, and AI, and the industry vertical strategy was generating traction in Private Cloud.

Rackspace Technology reported a revenue of $732 million for Q3 2023, a 7% decrease compared to Q3 2022. The company's net loss was $(227) million, and non-GAAP loss per share was $(0.04). Despite the revenue decline, the company is launching new offerings and seeing traction in its industry vertical strategy.

  • Revenue was $732 million, down 7% year-over-year.
  • Private Cloud Revenue was $300 million, down 13% year-over-year.
  • Public Cloud Revenue was $433 million, down 3% year-over-year.
  • Net loss was $(227) million, compared to net loss of $(512) million in the third quarter of 2022.

Headline financials

Total Revenue

$732M

Previous: $788M-7.0%
EPS (adj)

-$0.04

Previous: $0.10-140.0%
Capital Expenditures

-$63M

Previous: -$65.4M+3.7%
Free Cash Flow

-$290M

Previous: -$577M+49.8%
Net Income

-$227M

Previous: -$512M+55.7%
Operating Income

-$239M

Previous: -$477M+49.8%
Gross Profit

$152M

Previous: $207M-26.6%
Cash & Equivalents

$278M

Previous: $249M+11.5%
Total Assets

$4.28B

Previous: $5.69B-24.7%
Stock-Based Comp

$17.2M

Previous: $19.4M-11.3%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$732M

Q3 2023-7%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Rackspace Technology provided the following guidance for Q4 2023: Total Revenue between $710 - $720 million, Private Cloud Revenue between $284 - $289 million, Public Cloud Revenue between $426 - $431 million, Non-GAAP Operating Profit between $46 - $48 million, and Non-GAAP Loss Per Share between $(0.05) - $(0.03).

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 2023

Historical avgQ3 2023

+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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