Rackspace Technology Inc (RXT)

Rackspace Technology Inc (RXT) stock declined by 19.23% due to the release of its fourth-quarter results. The company reported revenue of $720 million in the fourth quarter of 2023, a 9% decrease compared to the same period in 2022.

• Revenue Breakdown: Private Cloud revenue for the fourth quarter of 2023 was $285 million, down 14% from the fourth quarter of 2022. Public Cloud revenue was $435 million, a 5% decrease from the previous year.
• Impact of Impairment Charges: The fourth quarter of 2023 included $4 million in non-cash impairment charges, significantly lower than the $217 million recorded in the fourth quarter of 2022. The impairments in 2022 were primarily due to a decline in market capitalization following a ransomware attack on the Hosted Exchange email business and impairment of the headquarters office.
• Full Year 2023 Results: For the full year 2023, Rackspace reported revenue of $2,957 million, a 5% decrease from 2022. Private Cloud revenue was $1,210 million, down 12% from 2022, while Public Cloud revenue was $1,747 million, a slight increase from the previous year.
• Financial Outlook: Rackspace reported a non-GAAP operating profit of $183 million for 2023, a 50% decrease from 2022. Non-GAAP loss per share was $(0.15) for 2023, compared to non-GAAP earnings per share of $0.54 in 2022. The company also reported capital expenditures of $181 million in 2023, compared to $142 million in 2022.
• Financial Position: As of December 31, 2023, Rackspace had cash and cash equivalents of $197 million with no balance outstanding on its Revolving Credit Facility ($375 million of undrawn commitments).