Rackspace Technology Reports Revenue Decrease

By Bobby Samwell • Friday, February 21 06:07 • Permanent Link

Rackspace Technology, Inc. (NASDAQ: RXT) has reported its fourth quarter and full year 2024 results, showcasing both the company's achievements and challenges in the past year. The company's revenue in the fourth quarter of 2024 was $686 million, down 5% year-over-year. For the full year 2024, revenue was $2,737 million, a decrease of 7% year-over-year.

Private cloud revenue in the fourth quarter of 2024 was $269 million, down 6% year-over-year, while public cloud revenue was $417 million, down 4% year-over-year. For the full year 2024, private cloud revenue was $1,055 million, down 13% year-over-year, and public cloud revenue was $1,683 million, down 3% year-over-year.

The company reported a loss from operations of $(29) million in the fourth quarter of 2024, compared to a loss from operations of $(15) million in the fourth quarter of 2023. Net loss for the fourth quarter of 2024 was $(60) million, compared to net income of $28 million in the fourth quarter of 2023. Non-GAAP operating profit was $39 million in the fourth quarter of 2024, a decrease of 13% compared to $45 million in the fourth quarter of 2023.

For the full year 2024, the company reported a loss from operations of $(909) million, compared to a loss from operations of $(899) million in 2023. Net loss for the full year 2024 was $(863) million, compared to a net loss of $(838) million in 2023. Non-GAAP operating profit was $106 million in 2024, a decrease of 33% compared to $157 million in 2023.

In terms of cash flow from operating activities, Rackspace Technology reported $54 million in the fourth quarter of 2024. As of December 31, 2024, the company had cash and cash equivalents of $144 million with no balance outstanding on its new revolving credit facility.

Looking ahead, Rackspace Technology provided guidance for the first quarter of 2025, with revenue expected to be in the range of $653 * $665 million. Private cloud revenue is forecasted to be in the range of $247 * $253 million, and public cloud revenue in the range of $406 * $412 million. The company anticipates non-GAAP operating profit to be in the range of $19 * $21 million.

Rackspace Technology is a leading end-to-end, hybrid cloud and AI solutions company, aiming to design, build, and operate its customers' cloud environments across all major technology platforms. Today the company's shares have moved -0.7% to a price of $2.88. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.