Stephanie Condon
for Between the Lines
| November 15, 2021
| Topic: Cloud
Rackspace on Monday published its third quarter financial results, slightly beating market estimates. While Q3 bookings were down year-over-year, the cloud solutions company said it landed a large, competitive deal early in the fourth quarter.
Rackspace’s non-GAAP earnings per share in Q3 came to 25 cents on revenue of $763 million, up 12% year-over-year. Revenue growth was once again strong thanks to new customer acquisitions and growing customer spending in the company’s Multicloud Services and Apps & Cross Platform segments.
Analysts were expecting earnings of 24 cents per share on revenue of $756 million.
“The Cloud market continues to grow and momentum continues to accelerate,” CEO Kevin Jones said in a statement. “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.”
Revenue from Rackspace’s Core Segments, comprised of Multicloud Services and Apps & Cross Platform, grew 15% year-over-year in Q3 to $718 million.
Bookings in Q3 were $200 million, a decrease of 36%year-over-year. However, Rackspace said it expects to achieve its $1 billion bookings target for fiscal 2021, given the large deal that was awarded to the company early in Q4. That deal is expected to be signed before year end.
For the fourth quarter, Rackspace expects revenue in the range of $766 million to $776 million.
Analysts are expecting revenue of $771.44 million.
Tech Earnings
Opendoor shares surge 21%: ‘We’re very good at this,’ says CFO
Fiverr beats Wall Street estimates, brings in $74.3 million in Q3
Coinbase posts lower-than-expected Q3 earnings, profits up nearly 400% from last year
Palantir sees Q4, 2021 revenue ahead of expectations
Broadcom beats Wall Street expectations for Q3, touts success with Fortune 500 ties
PayPal adds 13.3 million new accounts in Q3, reports revenue of $6.18 billion
RingCentral beats expectations, brings in $415 million for Q3
Square Q3 results miss expectations, Bitcoin growth plummets
Digital Transformation
|
Data Centers
|
CXO
|
Innovation
|
Storage