RACKSPACE TECHNOLOGY Reports Q2 FY2023 Earnings of USD 746.3 Million, Down 3.4% Year-Over-Year
August 29, 2023
🌥️Earnings Overview
RACKSPACE TECHNOLOGY ($NASDAQ:RXT) reported their financial results for the second quarter of FY2023 ending June 30 2023 on August 8 2023. Their total revenue for the quarter was USD 746.3 million, a decrease of 3.4% compared to the same period the previous year. Net income for the quarter was -27.2 million, an improvement from the -40.6 million reported in the same quarter of FY 2022.
Analysis
GoodWhale recently conducted an analysis of RACKSPACE TECHNOLOGY‘s financials and gave it a Risk Rating of high risk. This means that the company carries an above average amount of risk in terms of its financial and business aspects. GoodWhale has detected two risk warnings in RACKSPACE TECHNOLOGY’s income and balance sheet which could indicate potential issues in terms of solvency and profitability. For those interested in furthering their knowledge on the company’s finances, GoodWhale strongly recommends registering with us to gain access to our detailed breakdown and assessment of the company. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rackspace Technology. More…
| Total Revenues | Net Income | Net Margin |
| 3.08k | -1.36k | -10.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rackspace Technology. More…
| Operations | Investing | Financing |
| 134.1 | -82.2 | -153.4 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rackspace Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.66k | 4.63k | 0.15 |
Key Ratios Snapshot
Some of the financial key ratios for Rackspace Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | -74.8% | -40.2% |
| FCF Margin | ROE | ROA |
| 2.1% | -2750.7% | -16.6% |
Peers
It competes with Ucloud Technology Co Ltd, Oculus VisionTech Inc, and Taiwan Auto-Design Co for market share in the cloud services sector. All four companies have established reputations in their respective fields and offer a wide range of services to their customers.
– Ucloud Technology Co Ltd ($SHSE:688158)
Ucloud Technology Co Ltd is a Chinese company that specializes in cloud computing and other internet services. The company has a market cap of 6.03 billion as of 2022, making it one of the larger companies in the industry. The company has a negative return on equity of -9.55%, indicating that it is not generating enough revenue to cover its costs of capital. Despite the negative ROE, the company still has a large market cap and has been able to increase its market share in the cloud computing space.
– Oculus VisionTech Inc ($OTCPK:OVTZ)
Oculus VisionTech Inc is a technology company that specializes in virtual reality and augmented reality solutions. It has a market capitalization of 10.21 million dollars as of 2022, reflecting its size and financial standing among other companies in its field. Furthermore, its Return on Equity (ROE) of -136.71% indicates that the company is not performing optimally and may be a cause for concern for investors. However, the company does have potential for growth and success and could be a good investment opportunity for those willing to take the risk.
– Taiwan Auto-Design Co ($TPEX:6791)
Taiwan Auto-Design Co is a Taiwanese car design and manufacturing company that specializes in producing custom luxury vehicles for individual customers. The company has a market capitalization of 979.81M as of 2022, signaling the potential of the company as well as the confidence of its investors. Taiwan Auto-Design Co’s Return on Equity (ROE) of 19.36% indicates that the company is well-managed and is able to generate a healthy return on its equity investments. Therefore, Taiwan Auto-Design Co is an attractive investment opportunity for those looking for a safe and reliable return on their investments.
Summary
Rackspace Technology reported their second quarter earnings of FY2023 with total revenue of USD 746.3 million, a slight decrease from the previous year but an improvement in net income to -27.2 million. The stock price responded positively to the news and investors have been encouraged by the improvements demonstrated by Rackspace Technology. Despite the overall decline in revenue, the increased net income suggests that the company is making progress with their restructuring efforts. Moving forward, investors will continue to monitor the progress made by Rackspace Technology and look for further improvements in their financials.
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