NASDAQ$RXT

Rackspace Technology Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported a revenue decrease of 8% year-over-year, with public cloud revenue down 3% and private cloud revenue down 14%.

Rackspace Technology reported a revenue of $676 million for Q3 2024, an 8% decrease compared to Q3 2023. The company's Q3 results exceeded the midpoint of its guidance for revenue, operating profit, and EPS.

  • Revenue was $676 million, down 8% year-over-year.
  • Private Cloud revenue was $258 million, down 14% year-over-year.
  • Public Cloud revenue was $418 million, down 3% year-over-year.
  • Cash flow from operating activities was $52 million.

Headline financials

Total Revenue

$676M

Previous: $732M-7.7%
EPS

-$0.82

Previous: -$0.04-1950.0%
Capital Expenditures

-$91.2M

Previous: -$63M-44.8%
Free Cash Flow

-$278M

Previous: -$290M+4.1%
Net Income

-$187M

Previous: -$227M+17.7%
Operating Income

-$174M

Previous: -$239M+27.4%
Gross Profit

$138M

Previous: $152M-9.5%
Cash & Equivalents

$157M

Previous: $278M-43.4%
Total Assets

$3.15B

Previous: $4.28B-26.5%
Stock-Based Comp

$15.5M

Previous: $17.2M-9.9%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$676M

Q3 2024-7.7%vs Q3 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Rackspace Technology is providing Q4 2024 revenue guidance between $668 - $680 million, Private Cloud revenue between $258 - $264 million, Public Cloud revenue between $410 - $416 million, Non-GAAP Operating Profit between $34 - $36 million, Non-GAAP Loss Per Share between $(0.03) - $(0.05) million, Non-GAAP Other Income (Expense) between $(47) – $(51) million, Non-GAAP Tax Expense Rate of 26 %, Non-GAAP Weighted Average Shares of 240 million.

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 2024

Historical avgQ3 2024

+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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