Business
Rackspace Technology Reports First Quarter 2022 Results; Company Evaluating Strategic Alternatives
Revenue of $776 million in the First Quarter, up 7% Year-over-YearCore Revenue Grew 9% to $735 millionQuarterly Cash Flow From Operating Activities of $65
About this update from Rackspace Technology, Inc.
[{"type":"text","content":"Revenue of $776 million in the First Quarter, up 7% Year-over-YearCore Revenue Grew 9% to $735 millionQuarterly Cash Flow From Operating Activities of $65 million SAN ANTONIO, May 10, 2022 (GLOBE NEWSWIRE) -- Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end multicloud technology solutions company, today announced results for its first quarter ended March 31, 2022. Kevin Jones, Chief Executive Officer, commented, “Rackspace Technology benefits from secular tailwinds in a cloud market that shows no signs of slowing. In the first quarter alone, our cloud hyperscaler partners added $10 billion of new cloud revenue. All of this new cloud revenue represents customers moving to the cloud, grappling with change, and needing help on their journey. And Rackspace Technology is extremely well-positioned to be their partner of choice as the only pure play cloud services company. Our first quarter financial results reflect this, as we delivered solid revenue growth and profitability as well as another quarter of strong cash flow from operations.” Mr. Jones added, “Rackspace Technology recently completed an in-depth strategic review of our company. As we completed this strategic review, and also based on inbound interest for one of our businesses, we concluded that a sum of the parts valuation of Rackspace Technology could be greater than our current enterprise value. This is in part driven by the attractive growth profile of Public Cloud. Accordingly, we are evaluating strategic alternatives and options. We will provide further information as appropriate in light of developments.” First Quarter 2022 Results Revenue was $776 million in the first quarter of 2022, an increase of 7% as compared to revenue of $726 million in the first quarter of 2021. Revenue for the first quarter of 2022 was positively impacted by new customer acquisitions and growing customer spend in our Multicloud Services segment. On a constant currency basis, revenue also increased 7% in the first quarter of 2022 as compared to the first quarter of 2021. Revenue from our Core Segments (“Core Revenue”), comprised of Multicloud Services and Apps & Cross Platform, increased 9% on an actual and constant currency basis, in the first quarter of 2022 as compared to the first quarter of 2021. Income from operations was $21 million in the first quarter of 2022, compared...