Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number: 001-39420 (210) 312-4000 (Registrant's telephone number, including area code) Securities registered pu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number: 001-39420 RACKSPACE TECHNOLOGY, INC. (Exact name of registrant as specified in its charter) Delaware 81-3369925 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number: 001-39420 RACKSPACE TECHNOLOGY, INC. (Exact name of registrant as specified in its charter) Delaware 81-3369925 (Sta ...

Part I [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Rackspace Technology reported an 11.2% revenue increase to $725.9 million in Q1 2021, alongside a wider net loss of $64.0 million and improved operating cash flow of $103.2 million, with total assets stable at $6.4 billion [Unaudited Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) Total assets slightly increased to **$6.42 billion** as of March 31, 2021, driven by higher cash, while liabilities marginally rose and stockholders' equity slightly decreased Consolidated Balance Sheet Highlights (in millions) | Account | Dec 31, 2020 | Mar 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $104.7 | $198.4 | | Total current assets | $758.5 | $846.9 | | Goodwill, net | $2,761.1 | $2,763.5 | | Total assets | $6,377.8 | $6,417.9 | | **Liabilities & Equity** | | | | Total current liabilities | $742.2 | $757.8 | | Debt (non-current) | $3,319.3 | $3,368.7 | | Total liabilities | $4,994.1 | $5,042.7 | | Total stockholders' equity | $1,383.7 | $1,375.2 | [Unaudited Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Revenue grew to **$725.9 million** in Q1 2021, but gross profit declined to **$235.3 million**, leading to a wider net loss of **$64.0 million** primarily due to debt modification costs Statement of Comprehensive Loss Highlights (in millions, except per share data) | Metric | Q1 2020 | Q1 2021 | | :--- | :--- | :--- | | Revenue | $652.7 | $725.9 | | Gross profit | $249.3 | $235.3 | | Income from operations | $21.5 | $24.2 | | Debt modification and extinguishment costs | $0.0 | $(37.0) | | Net loss | $(48.2) | $(64.0) | | Net loss per share (Basic and diluted) | $(0.29) | $(0.31) | [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$103.2 million** in Q1 2021, while investing activities saw reduced cash usage due to a land sale, and financing activities shifted to a net outflow Consolidated Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2020 | Q1 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $24.8 | $103.2 | | Net cash used in investing activities | $(32.4) | $(4.3) | | Net cash provided by (used in) financing activities | $50.6 | $(4.5) | | Increase in cash, cash equivalents, and restricted cash | $41.4 | $93.7 | [Notes to the Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail a **$6.6 million** depreciation reduction from asset life changes, **$37.0 million** in debt refinancing costs, and varied segment revenue performance with growth in Multicloud and Apps, offset by OpenStack decline - In March 2021, the company revised the estimated useful lives of certain computer and equipment assets, resulting in a **$6.6 million** reduction in depreciation expense for Q1 2021[33](index=33&type=chunk) - In February 2021, the company executed a major refinancing, repaying its Prior Term Loan Facility and entering into a new **$2.3 billion** Term Loan Facility and issuing **$550.0 million** of 3.50% Senior Secured Notes, resulting in a **$37.0 million** charge for debt modification and extinguishment costs[51](index=51&type=chunk)[59](index=59&type=chunk)[68](index=68&type=chunk) Revenue by Segment (in millions) | Segment | Q1 2020 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Multicloud Services | $507.9 | $579.6 | +14.1% | | Apps & Cross Platform | $81.5 | $97.3 | +19.4% | | OpenStack Public Cloud | $63.3 | $49.0 | -22.6% | | **Total** | **$652.7** | **$725.9** | **+11.2%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes **11.2%** revenue growth to strong core segment performance, despite gross margin compression, while debt refinancing lowered interest costs and key operating metrics showed positive trends [Key Operating Metrics](index=30&type=section&id=Key%20Operating%20Metrics) Key operating metrics showed positive momentum, with Bookings increasing by **5.6%** and Annualized Recurring Revenue (ARR) growing by **10.5%** year-over-year Key Operating Metrics (in millions) | Metric | Q1 2020 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Bookings | $230.5 | $243.5 | +5.6% | | Annualized Recurring Revenue (ARR) | $2,482.1 | $2,742.6 | +10.5% | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q1 2021 revenue increased **11.2%** driven by core segments, but gross profit declined due to higher costs, and while interest expense decreased post-refinancing, a **$37.0 million** one-time charge contributed to a higher net loss - Core Revenue (Multicloud Services and Apps & Cross Platform) grew **14.8%** year-over-year, while the legacy OpenStack Public Cloud segment declined by **22.6%**[148](index=148&type=chunk) - Gross margin compressed by **580 basis points** to **32.4%** from **38.2%** in the prior year, driven by a **1,340 basis point** increase in usage charges for third-party infrastructure as a percentage of revenue[153](index=153&type=chunk)[154](index=154&type=chunk) - Interest expense decreased by **$19.4 million** due to debt refinancing, but the company incurred a one-time **$37.0 million** cost for debt modification and extinguishment[164](index=164&type=chunk)[165](index=165&type=chunk) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP performance showed underlying profitability with Adjusted EBITDA at **$180.2 million**, while Non-GAAP Net Income significantly increased to **$49.1 million** and Non-GAAP EPS rose to **$0.23** due to lower interest expenses Reconciliation to Adjusted EBITDA and Non-GAAP Net Income (in millions) | Metric | Q1 2020 | Q1 2021 | | :--- | :--- | :--- | | Net loss | $(48.2) | $(64.0) | | Adjustments | $75.2 | $113.1 | | **Non-GAAP Net Income** | **$27.0** | **$49.1** | | Interest expense & taxes (adjusted) | $81.5 | $70.6 | | Depreciation (adjusted) | $77.1 | $61.3 | | **Adjusted EBITDA** | **$185.6** | **$180.2** | Non-GAAP Earnings Per Share (EPS) | Metric | Q1 2020 | Q1 2021 | | :--- | :--- | :--- | | Non-GAAP Net Income | $27.0M | $49.1M | | Non-GAAP weighted average shares - Diluted | 166.3M | 211.1M | | **Non-GAAP EPS** | **$0.16** | **$0.23** | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2021, the company maintained strong liquidity with **$198 million** in cash and a **$375 million** undrawn credit facility, benefiting from debt refinancing and reduced capital expenditures - The company held **$198 million** in cash and cash equivalents and had access to a **$375 million** undrawn Revolving Credit Facility as of March 31, 2021[186](index=186&type=chunk)[188](index=188&type=chunk) - Total capital expenditures decreased by **21.9%** year-over-year to **$58.9 million**, representing **8%** of revenue in Q1 2021 compared to **12%** in Q1 2020[126](index=126&type=chunk)[209](index=209&type=chunk) - Cash flow from operations increased significantly to **$103.2 million** from **$24.8 million** YoY, driven by higher cash collections and timing of employee-related payments[210](index=210&type=chunk)[212](index=212&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rate fluctuations on its **$2.3 billion** variable-rate debt through swaps, foreign currency exposure with hedging, and power price changes via fixed-price contracts - The company is exposed to interest rate risk on its **$2.3 billion** Term Loan Facility and **$50 million** Receivables Financing Facility, where a **0.125%** change in interest rates would result in a **$3 million** change in annual interest expense[219](index=219&type=chunk) - To manage interest rate risk, the company has entered into interest rate swap agreements with a total notional value of **$1.35 billion**, effectively fixing the rate on a significant portion of its variable-rate debt[220](index=220&type=chunk)[221](index=221&type=chunk) - The company has exposure to foreign currency risk, particularly the British pound sterling, Euro, and Mexican peso, and uses forward contracts to hedge some of this exposure[223](index=223&type=chunk)[227](index=227&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal controls over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[231](index=231&type=chunk) - No changes in internal control over financial reporting occurred during the first quarter of 2021 that have materially affected, or are reasonably likely to materially affect, these controls[232](index=232&type=chunk) Part II [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any litigation expected to materially adversely affect its business, financial position, or results of operations - The company states it is not party to any litigation that would be reasonably expected to have a material and adverse effect on its business[237](index=237&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes have occurred from the risk factors previously disclosed in the Annual Report on Form 10-K[239](index=239&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable as there were no unregistered sales of equity securities or use of proceeds to report for the period - The company reports no unregistered sales of equity securities and no use of proceeds during the period[240](index=240&type=chunk)[241](index=241&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including new debt indentures, credit agreement amendments, and officer certifications - Key exhibits filed include the Indenture for the 3.50% Senior Secured Notes and an agreement related to the new Term Loan Facility, both dated February 9, 2021[249](index=249&type=chunk)

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020. OR Commission File Number: 001-39420 RACKSPACE TECHNOLOGY, INC. (Exact name of registrant as specified in its charter) Delaware 81-3369925 (State o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number: 001-39420 RACKSPACE TECHNOLOGY, INC. (Exact name of registrant as specified in its charter) Delaware 81-3369925 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number: 001-39420 RACKSPACE TECHNOLOGY, INC. (Exact name of registrant as specified in its charter) Delaware 81-3369925 (Sta ...