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Rackspace Technology (RXT)
NASDAQ:RXT
Earnings Data
Report Date
Feb 20, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
-0.04Last Year’s EPS
-0.03Same Quarter Last Year
Moderate Sell
Based on 2 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 20, 2025
|% Change Since: 0.00%
|Next Earnings Date:May 13, 2025
Earnings Call Sentiment|Positive
The earnings call demonstrated strong performance in terms of revenue, profit, and bookings, with notable achievements in the private and public cloud segments and significant growth in healthcare and AI engagements. However, there were challenges in profit margins and cash flow management, with expectations of a modest decline in private cloud revenues for 2025.Company Guidance
In the Rackspace Fourth Quarter 2024 earnings call, the company reported robust performance metrics, surpassing guidance for revenue, profit, and EPS. Notably, bookings, measured by annual contract value, grew by high double digits both sequentially and year-over-year, driven by strong sales execution and a favorable demand environment. Full-year sales bookings increased by 14%, with a significant 32% growth in the second half compared to the first half. The private cloud segment achieved record sales bookings, with revenue up by 4% sequentially, while healthcare and sovereign revenue surged by 34% and 59%, respectively. Public cloud GAAP revenue reached $417 million, with full-year bookings up by 22%, fueled by AI-related projects. Looking ahead to fiscal 2025, Rackspace anticipates a modest year-over-year decline in private cloud revenues but expects strong momentum in bookings to support a shift towards a more resilient growth-focused business model. The company also highlighted plans for positive operating and free cash flow for the year.Exceeding Revenue, Profit, and EPS Guidance
Rackspace's fourth quarter results exceeded guidance for revenue, profit, and EPS, marking the tenth consecutive quarter of meeting or beating expectations.
Record-Breaking Sales Bookings
Record-breaking quarterly sales bookings, reaching the highest level since early 2023, with high double-digit growth both sequentially and year-over-year.
Strong Performance in Private Cloud
Fourth quarter private cloud bookings more than doubled sequentially and grew high double digits year-over-year. Full-year private cloud sales bookings were up 4% year-over-year, with a significant 42% growth in the second half compared to the first half.
Significant Growth in Healthcare and Sovereign Segments
Healthcare revenue grew 34% year-over-year, while sovereign revenue surged by 59%.
Public Cloud Growth and Innovation
Public cloud GAAP revenue was $417 million, surpassing guidance. Full-year public cloud bookings grew 22% year-over-year, with notable growth in data services driven by AI-related projects.
Positive AI Engagement
More than 50 customers and close to 200 AI opportunities in the pipeline, with successful deployments enhancing operational efficiency and decision-making.
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RXT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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RXT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Feb 20, 2025 | $2.88 | ― | ― |
| Nov 12, 2024 | $2.86 | $3.03 | +5.94% |
| Aug 08, 2024 | $2.24 | $2.25 | +0.45% |
| May 09, 2024 | $1.96 | $1.97 | +0.51% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Rackspace Technology (RXT) report earnings?
Rackspace Technology (RXT) is schdueled to report earning on Feb 20, 2025, TBA Not Confirmed.
What is Rackspace Technology (RXT) earnings time?
Rackspace Technology (RXT) earnings time is at Feb 20, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is RXT EPS forecast?
RXT EPS forecast for the fiscal quarter 2024 (Q4) is -0.04.
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