SAN ANTONIO, June 04, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), the leading end-to-end, hybrid multicloud, and AI solutions company, today announced it has aligned Sharestates for future growth goals and enhanced infrastructure by migrating to Amazon Web Services (AWS) for its costeffectiveness, industry adoption, and redundancy capabilities. The infrastructure transition improved customer experience, optimized operations, improved scalability, and provided the company with the latest cl ...

SAN ANTONIO, May 28, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), the leading end-to-end, hybrid multicloud, and AI solutions company, today announced working with Young Hollywood on a multi-stage Google Cloud solution to transform video content management. The collaboration successfully created the necessary infrastructure, third-party metadata, video assets, and processed videos using the Google Cloud Video Intelligence Application Programming Interface™ (API). The new cloud infrastructur ...

SAN ANTONIO, May 28, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), the leading end-to-end, hybrid multicloud, and AI solutions company, today announced working with Young Hollywood on a multi-stage Google Cloud solution to transform video content management. The collaboration successfully created the necessary infrastructure, third-party metadata, video assets, and processed videos using the Google Cloud Video Intelligence Application Programming Interface™ (API). The new cloud infrastructur ...

SAN ANTONIO, May 23, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT) – the leading end-to-end, hybrid multicloud, and AI solutions company, today announced being recognized as a Dell Technologies Global Alliances Service Provider of the Year, Americas. The recognition combines Dell's best- in-class products and solutions with Rackspace Technology's leading-edge information technology consulting and services to solve customers' business and IT challenges. It further establishes Rackspace's marke ...

SAN ANTONIO, May 16, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ:RXT), a leading end-to-end hybrid, multicloud, and AI technology services company, today announced Seattle Children's successfully implemented an Epic Electronic Health Records (EHR) system leveraging Rackspace's Healthcare Cloud solution. After an extensive evaluation of private and public cloud service providers, the organization chose Rackspace to manage the migration and provide fully managed private cloud infrastructure service ...

SAN ANTONIO, May 16, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading end-to-end hybrid, multicloud, and AI technology services company, today announced Seattle Children's successfully implemented an Epic Electronic Health Records (EHR) system leveraging Rackspace's Healthcare Cloud solution. After an extensive evaluation of private and public cloud service providers, the organization chose Rackspace to manage the migration and provide fully managed private cloud infrastructure servic ...

Financial Performance - Revenue for Q1 2024 was $690.8 million, a decrease of 8.9% compared to $758.7 million in Q1 2023[14] - Gross profit for Q1 2024 was $132.8 million, down from $169.6 million in Q1 2023, reflecting a gross margin decline[14] - Net loss for Q1 2024 was $640.6 million, compared to a net loss of $612.0 million in Q1 2023[14] - Total consolidated revenue decreased by 8.9% from $758.7 million in Q1 2023 to $690.8 million in Q1 2024[190] - Net loss increased from $612.0 million in Q1 2023 to $640.6 million in Q1 2024, reflecting a rise of 4.7%[190] - Total consolidated segment operating profit fell from $117.4 million in Q1 2023 to $81.0 million in Q1 2024, a decrease of 30.9%[190] Assets and Liabilities - Total assets decreased from $4,096.2 million as of December 31, 2023, to $3,516.0 million as of March 31, 2024[13] - Total liabilities increased from $4,250.7 million to $4,303.2 million during the same period[13] - Total stockholders' equity (deficit) decreased to $(787.2) million as of March 31, 2024, from $(154.5) million as of December 31, 2023[20] - The company had $2,598.2 million in aggregate principal amount outstanding under debt instruments as of March 31, 2024[28] Cash Flow and Financing - Cash and cash equivalents rose from $196.8 million at the end of 2023 to $282.6 million by March 31, 2024[13] - Operating cash flow for Q1 2024 was a net cash used of $90.3 million, compared to a net cash used of $1.9 million in Q1 2023[16] - Cash flows from financing activities provided $188.2 million in Q1 2024, compared to a cash outflow of $41.3 million in Q1 2023[16] - As of March 31, 2024, total cash, cash equivalents, and restricted cash amounted to $285.5 million, up from $177.4 million as of March 31, 2023, representing a 61% increase[18] Goodwill and Impairments - The company reported an impairment of goodwill of $573.2 million in Q1 2024, compared to $543.1 million in Q1 2023[14] - The company recorded a non-cash goodwill impairment charge of $270.8 million in Q1 2023 due to impairment within the Private Cloud reporting unit[33] - The company recorded additional non-cash goodwill impairment charges of $272.3 million in Q1 2023, bringing total impairments for the Private Cloud unit to $543.1 million for the period[38] - The estimated fair value of the Rackspace trade name was determined to be less than its carrying value, resulting in a non-cash impairment charge of $20.0 million in Q1 2024[40] Revenue Segmentation - Public Cloud revenue increased from $422.4 million in Q1 2023 to $443.5 million in Q1 2024, representing a growth of 5.2%[190] - Private Cloud revenue decreased from $315.2 million in Q1 2023 to $268.4 million in Q1 2024, a decline of 14.8%[190] - Public Cloud revenue declined by 5% on both actual and constant currency basis, while Private Cloud revenue decreased by 15% on an actual basis and 16% on a constant currency basis[192][193] Operating Expenses - Cost of revenue decreased by $31 million, or 5%, to $558 million, primarily due to a reduction in personnel costs and lower severance expenses[194] - Selling, general and administrative expenses decreased by $15 million, or 7%, to $192 million, influenced by lower personnel costs and a reduction in severance and commissions expenses[197] - For the three months ended March 31, 2024, total share-based compensation expense was $12.8 million, down from $15.2 million in the same period of 2023[132] Debt and Interest Rates - The company completed a private debt exchange on March 12, 2024, involving $331.4 million of Existing Secured Notes and $1,588.8 million of Existing Term Loans[66] - The FLSO Term Loan Facility issued on March 12, 2024, has an aggregate principal amount of $1,687.2 million and matures on May 15, 2028[76] - The contractual interest rate on the FLSO Term Loan Facility was 8.18% as of March 31, 2024, with quarterly principal payments of $4.2 million starting on the same date[77] - Interest expense decreased from $56.9 million in Q1 2023 to $43.7 million in Q1 2024, a reduction of 23.2%[190] Strategic Focus - The company aims to expand its Public Cloud segment operating margins by driving cost efficiencies and growing higher-margin services revenue[180] - The shift in revenue mix from Private Cloud to Public Cloud is expected to continue, with a focus on defending and expanding revenue in Private Cloud[180] - The company emphasizes the importance of customer retention and the development of new opportunities to drive revenue growth in a competitive market[179]

Rackspace Technology, Inc. (NASDAQ:RXT) Q1 2024 Earnings Conference Call May 9, 2024 5:00 PM ET Company Participants Sagar Hebbar - Vice President, Corporate Finance and Investor Relations Amar Maletira - Chief Executive Officer Mark Marino - Chief Financial Officer Conference Call Participants Kevin McVeigh - UBS Robert Majek - Raymond James Ramsey El-Assal - Barclays Operator Good afternoon and thank you for standing by. Welcome to Rackspace Technology's First Quarter Earnings Conference Call. At this tim ...

Exhibit 99.1 Rackspace Technology Reports First Quarter 2024 Results SAN ANTONIO, May 9, 2024 – Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end, hybrid, multicloud, and AI solutions company, today announced results for its first quarter ended March 31, 2024. Amar Maletira, Chief Executive Officer, stated, "I'm pleased to announce that first quarter 2024 results exceeded the high-end of guidance for revenue, operating profit, and EPS. We continue to make steady progress on our turnaround, and ...

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, 2023. 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 8 ...