NASDAQ$RXT

Rackspace Technology Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced Q4 and Full Year 2021 results with record quarterly new sales bookings.

Rackspace Technology reported a strong fourth quarter with revenue of $777 million, up 9% year-over-year, and record bookings of $329 million, an increase of 12% year-over-year. The company's Non-GAAP Earnings Per Share was $0.25, down 4% year-over-year. They met or exceeded all of their financial targets while driving strong cash flow from operations.

  • Fourth Quarter Revenue of $777 million, up 9% Year-over-Year.
  • Fourth Quarter Core Revenue of $734 million, up 11% Year-over-Year.
  • Record Fourth Quarter Bookings of $329 million, an increase of 12% Year-over-Year.
  • Fourth Quarter Non-GAAP Earnings Per Share of $0.25, down 4% Year-over-Year.

Headline financials

Total Revenue

$777M

Previous: $716M+8.5%
EPS (adj)

$0.25

Previous: $0.26-3.8%
Capital Expenditures

$21.2M

Previous: $18.9M+12.2%
Free Cash Flow

$38.4M

Previous: -$34.9M+210.0%
Net Income

-$83M

Previous: -$64M-29.7%
Operating Income

-$26.7M

Previous: -$4.8M-456.3%
Gross Profit

$234M

Previous: $247M-5.3%
Cash & Equivalents

$273M

Previous: $105M+160.0%
Total Assets

$6.33B

Previous: $6.38B-0.8%
Stock-Based Comp

$18.7M

Previous: $17.7M+5.6%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$777M

Q4 2021+8.5%vs Q4 2020
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Rackspace Technology is providing guidance for Q1 2022.

Tailwinds

  • Revenue $768 - $778 million
  • Core Revenue $730 - $738 million
  • Non-GAAP Operating Profit $108 - $112 million
  • Non-GAAP Earnings Per Share $0.20 - $0.22
  • Non-GAAP Other Income (Expense) ($51) – ($52) million

Headwinds

  • Non-GAAP Tax Expense Rate 26 %
  • Non-GAAP Weighted Average Shares 214 – 216 million
  • Non-GAAP Other Income (Expense) is only expected to include interest expense.
  • Rackspace Technology has not reconciled Non-GAAP Operating Profit, Non-GAAP Earnings Per Share, Non-GAAP Other Income (Expense) or Non-GAAP Tax Expense Rate guidance to the most directly comparable GAAP measure because it does not provide guidance on GAAP net income (loss) or the reconciling items between these Non-GAAP measures and GAAP net income (loss) as a result of the uncertainty regarding, and the potential variability of, certain of these items, such as share-based compensation expense.
  • Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

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 Q4 2021

Historical avgQ4 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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