Rackspace Technology Inc (NAS:RXT)

Q4 2024 Rackspace Technology Inc Earnings Call Transcript

Feb 20, 2025 / 10:00 PM GMT

Release Date Price: $2.88 (-0.69%)

Transcript 8-K

Key Points

Positve

Rackspace Technology Inc (RXT) exceeded guidance for revenue, profit, and EPS for the 10th consecutive quarter.
Record-breaking quarterly sales bookings, with high double-digit growth in annual contract value both sequentially and year over year.
Strong performance in the Americas and increasing adoption of hybrid cloud solutions contributed to a 14% growth in sales bookings for fiscal 2024.
Significant acceleration in private cloud bookings, with a 42% growth in the second half of 2024 compared to the first half.
Public cloud bookings grew 22% year over year, driven by robust performance in services and infrastructure resale, with data services bookings more than doubling.

Negative

Non-GAAP gross profit margin for the full year 2024 was down 172 basis points year over year.
Non-GAAP operating margin for the full year 2024 was down 146 basis points versus the prior year.
Free cash flow usage was $71 million for the full year, indicating cash flow challenges.
Private cloud revenues are expected to show modest declines in fiscal 2025, despite recent momentum.
Infrastructure resale volumes are difficult to predict and may face declines depending on contract renewals.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

RXT.OQ - Rackspace Technology Inc
Q4 2024 Rackspace Technology Inc Earnings Call
Feb 20, 2025 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and thank you for standing by. Welcome to the rackspace 4th quarter 2024 earnings webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session.

To ask a question during this session, you'll need to press 11 on your telephone. You will then hear automated message advising your hand is raised. To withdraw your question, please press 11 again. Please be advised that today's conference is being recorded. I'll not attend a conference over to your first speaker today, Sara Bar, head of investor relations. Please go ahead.

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Unidentified_2 [2]

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