Business
Rackspace Technology Reports First Quarter 2023 Results
Revenue of $759 million in the First Quarter, down 2% Year-over-YearPublic Cloud Revenue grew 7% Year-over-Year to $445 millionPrivate Cloud Revenue was $314
About this update from Rackspace Technology, Inc.
[{"type":"text","content":"Revenue of $759 million in the First Quarter, down 2% Year-over-YearPublic Cloud Revenue grew 7% Year-over-Year to $445 millionPrivate Cloud Revenue was $314 million, down 12% Year-over-YearFirst Quarter 2023 Cash Flow Used in Operating Activities was $(2) million; Cash Flow From Operating Activities was $180 million on a Trailing-Twelve-Month Basis SAN ANTONIO, May 09, 2023 (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, 2023. Amar Maletira, Chief Executive Officer, stated, “I am pleased that we delivered first quarter revenue and profit above the midpoint of our guidance. Additionally, we have now completed our first full quarter in our new two-business unit operating model, and we are already seeing the benefits in terms of greater focus and opportunities for further cost efficiencies.” Mr. Maletira added, “2023 is a transformation year for the business, and we believe our second quarter will be the trough in profitability for the company. We know the road ahead will be challenging in the short-term given the uncertain macro and industry environment. However, the secular growth trends in multicloud remain, and we are using this market slowdown to better position our company to capitalize when the market growth rebounds. Our goal is to drive long-term profitable growth while continuing to deliver value to our customers.” First Quarter 2023 Results Revenue was $759 million in the first quarter of 2023, a decrease of 2% as compared to revenue of $776 million in the first quarter of 2022. On a constant currency basis, revenue decreased 1% in the first quarter of 2023 as compared to the first quarter of 2022. In the first quarter of 2023, we completed our business unit realignment and are now reporting in our two new operating segments - Public Cloud and Private Cloud. Our prior Multicloud segment has been separated into its public and private cloud components and our prior OpenStack Public Cloud segment has been included in Private Cloud. The offerings previously reported in our Apps & Cross Platform segment have been reassigned to either the Public Cloud or Private Cloud segment based on the nature of the offering. Comparative periods have been recast to reflect results in the new structure. P...