Rackspace Technology Reports Decreased Q3 2024 Revenue

Rackspace Technology, Inc. ( (RXT) ) has released its Q3 earnings. Here is a breakdown of the information Rackspace Technology, Inc. presented to its investors.

Rackspace Technology, Inc. is a prominent provider of end-to-end, hybrid, multicloud, and AI solutions, aiding clients in designing, building, and managing their cloud environments across all major platforms. In its third quarter of 2024, Rackspace Technology reported a revenue of $676 million, reflecting an 8% decrease compared to the same period in 2023. Private Cloud revenue fell by 14% to $258 million, while Public Cloud revenue decreased by 3% to $418 million. Despite the revenue decline, the company recorded a significant improvement in its operating loss, which reduced from $239 million in Q3 2023 to $174 million in Q3 2024, and a decrease in net loss per share from $1.05 to $0.82.

Rackspace Technology highlighted notable achievements in the quarter, including a double-digit growth in bookings, particularly in the Public Cloud segment, which achieved a record for bookings since the formation of its business units. The cash flow from operating activities was $52 million, and the company maintained a cash balance of $157 million with no outstanding balance on its revolving credit facility.

The company’s non-GAAP operating profit for the quarter was $34 million, down from $46 million in the same period the previous year. Capital expenditures increased slightly to $31 million. Looking ahead, Rackspace Technology has provided guidance for the fourth quarter of 2024, anticipating revenue to be in the range of $668 to $680 million, with non-GAAP operating profit projected between $34 to $36 million.

Overall, Rackspace Technology’s management remains optimistic about the company’s progress and strategic direction, particularly with ongoing growth in Public Cloud bookings, as they continue to navigate challenges in the market.