Rackspace Technology Beats Expectations with Non-GAAP EPS and Revenue of $759M
May 10, 2023
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Rackspace Technology ($NASDAQ:RXT) is a cloud technology company that provides managed services and data center solutions. The company specializes in managed cloud and security services for corporate clients, as well as multi-cloud applications, private clouds, and edge computing services. Rackspace Technology recently beat expectations with its non-GAAP earnings per share of -$0.02, exceeding estimates by $0.01.
Additionally, the company generated total revenue of $759M, surpassing estimates by $1.73M. This impressive performance can be attributed to the company’s continued efforts to increase its presence in the market by expanding its services and offerings. With the launch of its unified cloud platform and other groundbreaking products, the company has been able to capture an increasing share of the cloud technology industry. The success of Rackspace Technology can also be attributed to its focus on delivering best-in-class customer support and technical expertise, enabling the company to build a loyal customer base. Overall, the company’s strong performance is an indication of its commitment to provide innovative and reliable services to its customers. With a focus on innovation, customer service, and technical expertise, Rackspace Technology is well-positioned to continue outperforming expectations in the future.
Earnings
This exceeds the expectations of analysts and investors, as the total revenue grew by 1.2% compared to the previous year. In addition, the total revenue for RACKSPACE TECHNOLOGY has grown from 716.2M USD to 787.0M USD in the last three years. However, RACKSPACE TECHNOLOGY reported a net income loss of 214.0M USD for the same quarter. Nevertheless, these figures speak volumes of the company’s impressive financial performance.
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 |
| 3.12k | -804.8 | -6.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rackspace Technology. More…
| Operations | Investing | Financing |
| 259.3 | -97.9 | -187 |
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 |
| 5.47k | 4.84k | 2.98 |
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 |
| 8.6% | -74.8% | -22.1% |
| FCF Margin | ROE | ROA |
| 5.7% | -59.6% | -7.9% |
Stock Price
The stock opened at $1.4 and closed at the same price, down by 2.9% from the previous closing price of $1.4. Despite the decreased stock price, Rackspace Technology experienced an impressive quarter, outperforming most expectations. The company attributed its success to the increasing demand for its technology solutions and the growing need for digital transformation. It also highlighted its ability to provide innovative solutions to its customers and its strong focus on customer satisfaction.
Furthermore, Rackspace Technology plans to continue investing in its technology and platforms to ensure a high level of service for its customers. Overall, Rackspace Technology was able to beat expectations due to its strong commitment to excellent customer service and its innovative technology solutions. As the company continues to invest in its technology, it can be expected that the company will continue to experience growth in the future. Live Quote…
Analysis
At GoodWhale, we recently conducted an analysis of RACKSPACE TECHNOLOGY‘s financials and have determined that, in terms of financial and business aspects, this investment is a high risk one. In particular, our analysis has detected two risk warnings in the company’s income sheet and balance sheet. If you’re considering investing in RACKSPACE TECHNOLOGY, we highly recommend you register with us to check out our findings. With our help, you can make an informed decision about whether this is an appropriate financial move for you. We take pride in offering the most comprehensive analysis of RACKSPACE TECHNOLOGY’s financials to help our customers make the best decisions. More…
Peers
It competes with Ucloud Technology Co Ltd, Oculus VisionTech Inc, and Taiwan Auto-Design Co for market share in the cloud services sector. All four companies have established reputations in their respective fields and offer a wide range of services to their customers.
– Ucloud Technology Co Ltd ($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 Inc. reported quarterly results that beat expectations. The company reported adjusted earnings per share (EPS) of -$0.02, which beat estimates by $0.01. Revenue came in at $759 million, beating expectations by $1.73 million. Investors are encouraged by the company’s better-than-expected performance and the potential for future growth.
Analysts also note that the company is focusing on expanding its cloud computing solutions, which could be a major driver of future growth. Rackspace Technology also boasts a favorable valuation when compared to its peers. This, combined with improving margins and increasing sales, makes it an attractive investment opportunity.
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