Page 1

rackspace technology . Rackspace Technology Reports Third Quarter 2021 Results November 15 , 2021 • Record Revenue of $ 763 million in the Third Quarter , up 12 % Year - over - Year • Core Revenue Grew 15 % to $ 718 million • Net loss of $ ( 35 ) million , or $ ( 0.17 ) per diluted share • Non - GAAP Earnings Per Share Grew 32 % Year - over - Year to $ 0.25 • Quarterly Cash Flow From Operating Activities of $ 102 million SAN ANTONIO , Nov. 15 , 2021 ( GLOBE NEWSWIRE ) -- Rackspace Technology , Inc. ( Nasdaq : RXT ) , a leading end - to - end multicloud technology solutions company , today announced results for its third quarter ended September 30 , 2021 . Kevin Jones , Chief Executive Officer , commented , " The Cloud market continues to grow and momentum continues to accelerate . Companies of all sizes need help with their move to the cloud . And as a leading pure - play cloud services company , Rackspace Technology is poised to be their partner of choice for all things cloud - wherever they are in their journey . " Mr. Jones continued , " In the third quarter , revenue , Core Revenue , Non - GAAP Operating Profit and Non - GAAP EPS all grew at a healthy year - over - year clip . We delivered strong operating cash flow of over $ 100 million for the third quarter in a row . And we also continued to introduce timely new product and service offerings that help our customers get the most out of their cloud investment . Our new Elastic Engineering model is gaining fast adoption and was expanded to several new areas . And we are very excited about the launch of Rackspace Data Freedom , a new storage service based on robust Rackspace - developed technology that helps customers manage their costs across multiple cloud platforms . " Third Quarter 2021 Results Revenue was $ 763 million in the third quarter of 2021 , an increase of 12 % as compared to revenue of $ 682 million in the third quarter of 2020 . Revenue for the third quarter of 2021 was positively impacted by new customer acquisitions and growing customer spend in our Multicloud Services and Apps & Cross Platform segments . On a constant currency basis , revenue increased by 11 % in the third quarter of 2021 as compared to the third quarter of 2020 . Revenue from our Core Segments ( " Core Revenue " ) , comprised of Multicloud Services and Apps & Cross Platform , increased 15 % on an actual basis and 14 % on a constant currency basis , in the third quarter of 2021 as compared to the third quarter of 2020 . Bookings were $ 200 million in the third quarter of 2021 , a decrease of 36 % as compared to Bookings of $ 315 million in the third quarter of 2020 . Rackspace Technology expects to achieve its $ 1 billion bookings target for fiscal 2021 , as a large , competitive deal was awarded to the company early in the fourth quarter and is expected to be signed before year end . Net loss was $ ( 35 ) million in the third quarter of 2021 , compared to net loss of $ ( 101 ) million in the third quarter of 2020 . Net loss per diluted share was $ ( 0.17 ) in the third quarter of 2021 , compared to net loss per diluted share of $ ( 0.54 ) in the third quarter of 2020 . Non - GAAP Operating Profit was $ 124 million in the third quarter of 2021 , an increase of 6 % compared to $ 117 million in the third quarter of 2020 . Non - GAAP Earnings Per Share was $ 0.25 in the third quarter of 2021 , an increase of 32 % as compared to Non - GAAP Earnings Per Share of $ 0.19 in the third quarter of 2020 . Capital expenditures were $ 35 million in the third quarter of 2021 , compared to $ 48 million in the third quarter of 2020 . As of September 30 , 2021 , we had cash and cash equivalents of $ 260 million with no balance outstanding on our Revolving Credit Facility . Financial Outlook Rackspace Technology is providing guidance as follows : Revenue Core Revenue Non - GAAP Operating Profit Non - GAAP Earnings Per Share Non - GAAP Other Income ( Expense ) ¹ Non - GAAP Tax Expense Rate Non - GAAP Weighted Average Shares Q4 2021 Guidance $ 766 $ 776 million $ 724 $ 732 million $ 118 - $ 122 million $ 0.23 $ 0.25 ( $ 51 ) – ( $ 52 ) million 26 % 212 214 million FY 2021 Guidance $ 2.998 $ 3.008 million $ 2.815 $ 2.823 million $ 480 $ 484 million $ 0.95 $ 0.97 ( $ 205 ) - ( $ 206 ) million 26 % 213-215 million 1 Non - GAAP Other Income ( Expense ) is only expected to include interest expense . Definitions of non - GAAP financial measures and the reconciliations to the most directly comparable measures in accordance with generally accepted accounting principles in the United States ( " GAAP " ) are provided in subsequent sections of this press release narrative and supplemental schedules .