NASDAQ$RXT

Rackspace Technology Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Rackspace Technology reported a decrease in revenue and net loss for the fourth quarter of 2024, with a notable increase in non-GAAP loss per share.

Rackspace Technology reported a fourth-quarter revenue of $686 million, a 5% decrease year-over-year, and a net loss of $60 million. The company exceeded guidance for fourth-quarter revenue, operating profit, and EPS, driven by strong sales execution across both business units, resulting in record-breaking quarterly sales bookings.

  • Fourth Quarter Revenue decreased by 5% year-over-year to $686 million.
  • Net loss for the fourth quarter was $60 million, compared to a net income of $28 million in the prior year.
  • Non-GAAP Operating Profit decreased by 13% to $39 million.
  • Fourth Quarter Cash Flow From Operating Activities was $54 million.

Headline financials

Total Revenue

$686M

Previous: $720M-4.7%
EPS (adj)

-$0.02

Previous: -$0.03+33.3%
Non-GAAP Operating Profit

$39.1M

No prior period
Capital Expenditures

$27M

No prior period
Net Income

-$60.4M

Previous: $28M-315.7%
Operating Income

-$28.8M

Previous: -$15M-92.0%
Gross Profit

$132M

Previous: $115M+14.8%

Revenue & EPS history

Rackspace · Revenue · Quarterly

$686M

Q4 2024-4.7%vs Q4 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Rackspace Technology provided Q1 2025 guidance with expected revenue between $653 million and $665 million, and non-GAAP EPS between -$0.07 and -$0.09.

Tailwinds

  • Expected Non-GAAP Operating Profit between $19 million and $21 million.
  • Anticipated Non-GAAP Tax Expense Rate of 26%.
  • Projected Non-GAAP Weighted Average Shares of 245 million.

Headwinds

  • Expected revenue decrease compared to Q4 2024.
  • Anticipated Non-GAAP Loss Per Share between ($0.07) and ($0.09).
  • Projected Non-GAAP Other Income (Expense) between ($46) million and ($50) million.
  • Non-GAAP Operating Profit is expected to be lower than Q4 2024.
  • Private Cloud Revenue is expected to decrease to between $247 million and $253 million.

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 Q4 2024

Historical avgQ4 2024

+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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