Rackspace Technology(US:RXT)2024-11-12 21:17Revenue Performance - Revenue for Q3 2024 was $676 million, down 8% year-over-year from $732 million in Q3 2023[2] - Total consolidated revenue for the three months ended September 30, 2024, was $675.8 million, a decrease of 7.7% compared to $732.4 million in the same period of 2023[26] - Total consolidated revenue for the nine months ended September 30, 2024, was $2,051.5 million, reflecting an 8.3% decrease from $2,237.4 million in 2023[26] Cloud Revenue - Private Cloud revenue decreased by 14% year-over-year to $258 million, while Public Cloud revenue decreased by 3% to $418 million[3] - Public Cloud revenue for the nine months ended September 30, 2024, was $1,265.6 million, down 3.3% from $1,308.7 million in 2023[26] - Private Cloud revenue for the three months ended September 30, 2024, decreased by 14.4% to $257.5 million from $300.9 million in the same period of 2023[26] Profitability Metrics - Loss from operations improved to $(174) million in Q3 2024, compared to $(239) million in Q3 2023[4] - Net loss for Q3 2024 was $(187) million, an improvement from $(227) million in Q3 2023, with net loss per diluted share at $(0.82) compared to $(1.05) in the prior year[4] - Non-GAAP Operating Profit was $34 million, down 25% from $46 million in Q3 2023[5] - Non-GAAP Operating Profit for the three months ended September 30, 2024, was $34.3 million, down 24.6% from $45.5 million in 2023[28] Cash Flow and Liquidity - Cash flow from operating activities for Q3 2024 was $52 million[1] - Cash flows from operating activities provided $302.7 million in 2023, contrasting with a cash outflow of $14.4 million in 2024[24] - As of September 30, 2024, cash and cash equivalents stood at $157 million, with no outstanding balance on the New Revolving Credit Facility[6] - Cash and cash equivalents at the end of the period were $280.7 million, up from $160.1 million[24] Guidance and Projections - Guidance for Q4 2024 projects total revenue between $668 million and $680 million, with Private Cloud revenue expected between $258 million and $264 million[7] - Public Cloud revenue guidance for Q4 2024 is set between $410 million and $416 million[7] - Non-GAAP Loss Per Share is projected to be between $(0.03) and $(0.05) for Q4 2024[7] Asset and Liability Overview - Total assets increased to $4,096.2 million in December 2023 from $3,145.8 million in September 2024[23] - Total liabilities rose to $4,250.7 million in December 2023, compared to $4,095.5 million in September 2024[23] - Debt stood at $2,839.6 million in December 2023, an increase from $2,782.4 million in September 2024[23] Impairment and Expenses - The company reported impairment of goodwill at $708.8 million for 2023, slightly down from $714.9 million in 2024[24] - Impairment of goodwill amounted to $165.7 million for the three months ended September 30, 2023, and $141.7 million for 2024[47] - Restructuring and transformation expenses were $14.3 million for the three months ended September 30, 2023, compared to $8.8 million for 2024[45] Shareholder Metrics - Weighted average number of shares - Diluted for the three months ended September 30, 2023, was 216.0 million, while for 2024 it was 226.4 million[50] - Net loss per share - Diluted for the three months ended September 30, 2023, was $(1.05), compared to $(0.82) for 2024[50]