Slide 1: Rackspace Technology Q1 2024 Earnings Presentation
Rackspace Technology Q1 2024 Earnings Presentation May 9, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Rackspace Technology has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of histor
Slide 3: Q1 2024 Financial Results
Q1 2024 Financial Results #039;s in millions Q1 2024 Q/Q Y/Y Total Revenue $691 (4%) (9%) Non-GAAP Net Revenue $384 (7%) (16%) • Non-GAAP Net Revenue is a metric that applies net-accounting to public cloud infrastructure Non-GAAP Gross Profit $141 (11%) (21%) resale revenue (only the profit element of
Slide 4: Q1 2024 Segment Financials
Q1 2024 Segment Financials #039;s in millions Q/Q % Y/Y % Total Private Public Total Private Public Total Private Public Rackspace Cloud Cloud Rackspace Cloud Cloud Rackspace Cloud Cloud Total Revenue $691 $268 $422 (4%) (6%) (3%) (9%) (15%) (5%) Non-GAAP Net Revenue $384 $268 $116 (7%) -- (9%) (16%) -
Slide 5: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures #039;s in millions Reported As of March 31, 2024 Q1'24 LTM Cash Provided by (used in) Operating Activities ($90) $287 Free Cash Flow ($118) $174 LTM Free Cash Flow Yield 49% Total Capital Expenditures $46 $155 Total CAPEX Intensity 7% 5% Cash Capital Expenditures $28 $1
Slide 6: Pro Forma Debt Maturity Overview
Pro Forma Debt Maturity Overview 1 #039;s in millions Pro Forma for Closing of Public Debt Exchange $2,554 M 275 M FLFO New Money Term Loan (2) Facility PF Balance Maturity Rate Hedge 1-month SOFR + FLFO New Money Term Loan $275 May-2028 0.114% Spread + 625 bps N/A May-2028 (FLSO)/ 1-month SOFR + 0.114
Slide 7: Outlook
Outlook Q2 2024 Guidance Total Revenue $668 - $678 million Private Cloud Revenue $260 - $265 million Public Cloud Revenue $408 - $413 million Non-GAAP Operating Profit $20 - $22 million Non-GAAP Loss Per Share ($0.09) - ($0.11) Non-GAAP Other Income (Expense) ($52) - ($54) million Non-GAAP Tax Expen
Slide 8: Appendix
Appendix
Slide 9: Non-GAAP Net Revenue Reconciliation
Non-GAAP Net Revenue Reconciliation (In millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total Revenue $758.7 $746.3 $732.4 $719.7 $690.8 Pass-through infrastructure resale costs (298.8) (299.7) (302.5) (306.4) (306.7) Non-GAAP Net Revenue $459.9 $446.6 $429.9 $413.3 $384.1 9
Slide 10: Non-GAAP Gross Profit Reconciliation
Non-GAAP Gross Profit Reconciliation (In millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 GAAP Gross Profit $169.6 $153.1 $152.0 $154.1 $132.8 Share-based compensation expense 2.8 2.6 2.0 1.7 1.9 Special bonuses and other compensation expense 0.7 1.4 1.2 0.7 0.9 Purchase accounting impact on expens
Slide 11: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation (In millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 High Low Net income (loss) $(612.0) $(27.2) $(226.6) $28.0 $(545.3) $(645.3) Share-based compensation expense 15.2 19.5 17.2 13.5 12.8 12.8 Special bonuses and other compensation expense 2.2 4.2 3.3 2.4 3.1 3.1 Tr
Slide 12: Non-GAAP Operating Profit Reconciliation
Non-GAAP Operating Profit Reconciliation (In millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Loss from operations $(581.0) $(63.8) $(239.4) $(15.2) $(652.8) Share-based compensation expense 15.2 19.5 17.2 13.5 12.8 Special bonuses and other compensation expense 2.2 4.2 3.3 2.4 3.1 Transaction-rela
Slide 13: Non-GAAP Loss Per Share Reconciliation
Non-GAAP Loss Per Share Reconciliation (In millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 High Low Net income (loss) attributable to common stockholders $(612.0) $(27.2) $(226.6) $28.0 $(545.3) $(645.3) Non-GAAP Net Loss $(4.7) $(13.5) $(8.1) $(6.4) $(24.3) $(24.3) Weighted average number of shar
Slide 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Net cash provided by (used in) operating activities $(1.9) $37.8 $266.8 $72.2 $(90.3) Cash purchases of property, equipment and software (12.1) (23.4) (27.5) (33.9) (28.1) Free Cash Flow $(14.0) $14.4 $239.3 $38.3 $(
Slide 15: Definitions
Definitions Non-GAAP Net Non-GAAP Net Revenue applies net-accounting to public cloud infrastructure resale revenue. This means only the profit element of infrastructure resale is included in Non-GAAP Net Revenue in Revenue addition to public cloud services and private cloud revenues. Segment Segment
Slide 16: Rackspace Technology
rackspace technology-