Business
Rackspace Technology Reports Fourth Quarter and Full Year 2022 Results
Fourth Quarter Revenue of $787 million, up 1% Year-over-Year; 2022 Revenue of $3,122 million, up 4% Year-over-YearFourth Quarter Core Revenue of $752 million,
About this update from Rackspace Technology, Inc.
[{"type":"text","content":"Fourth Quarter Revenue of $787 million, up 1% Year-over-Year; 2022 Revenue of $3,122 million, up 4% Year-over-YearFourth Quarter Core Revenue of $752 million, up 2% Year-over-Year; 2022 Core Revenue of $2,972 million, up 5% Year-over-YearFourth Quarter Cash Flow From Operating Activities of $40 million; 2022 Cash Flow From Operating Activities of $259 million SAN ANTONIO, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end multicloud technology solutions company, today announced results for its fourth quarter and year ended December 31, 2022. Amar Maletira, Chief Executive Officer, stated, “We delivered fourth quarter revenue and profit above our guidance and reported solid cash flow. Additionally, I am pleased to share that we have completed our operating model realignment and are now executing as two business units, Public Cloud and Private Cloud.” Mr. Maletira added, “My focus is on changing the trajectory of the business and positioning Rackspace for sustained, long-term growth. I am confident in our strategy, and we now have the right operating model and leadership team to go execute.” Fourth Quarter 2022 Results Revenue was $787 million in the fourth quarter of 2022, an increase of 1% as compared to revenue of $777 million in the fourth quarter of 2021. Revenue for the fourth quarter of 2022 was positively impacted by new customer acquisitions and growing customer spend in our Multicloud Services and Apps & Cross Platform segments. On a constant currency basis, revenue increased 3% in the fourth quarter of 2022 as compared to the fourth quarter of 2021. Revenue from our Core Segments (“Core Revenue”), comprised of Multicloud Services and Apps & Cross Platform, increased 2% on an actual basis and 4% on a constant currency basis, in the fourth quarter of 2022 as compared to the fourth quarter of 2021. In the fourth quarter of 2022 we recorded $217 million of non-cash impairment charges driven primarily by $129 million of goodwill and a $75 million asset impairment. The goodwill impairment was in our Apps & Cross Platform segment and was driven primarily by the decline in market capitalization following the ransomware attack on our Hosted Exchange email business. The asset impairment was for our San Antonio headquarters office as we prepare for our relocation to North San Antonio l...