Rackspace Technology, Inc. · NASDAQ:RXT
Rackspace Technology — FY2020 Earnings Presentation
26 slides from Rackspace Technology's earnings presentation, Feb 24, 2021
Slide 1: Rackspace Technology Investor Presentation February 23, 2021
TM Rackspace Technology Investor Presentation February 23, 2021
Slide 2: Disclaimer
Disclaimer 2 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 hist
Slide 3: Presenters: Kevin Jones and Amar Maletira
TM Kevin Jones Chief Executive Officer Amar Maletira President and Chief Financial Officer
Slide 4: Agenda: Summary results and RXT overview
Summary results and RXT overview Kevin Jones 4 Financial results Amar Maletira Agenda Concluding Remarks Kevin Jones
Slide 5: Rackspace Technology: A leading end-to-end multicloud technology services company
5 Well positioned in the large, attractive and growing multicloud services market Winning differentiators, including proprietary automation technology, deep multicloud expertise, comprehensive partnership ecosystem and fanatical customer experience Demonstrated track record of execution to drive gro
Slide 6: Rackspace Technology transformed
Rackspace Technology transformed Partner to cloud ecosystem A leader in end-to-end multicloud solutions Market positioning Core offerings and services expertise Revenue from segments with attractive growth dynamics Core segments revenue growth Competitor to public cloud TodayAt LBO Managed hosting,
Slide 7: The multicloud ecosystem is a large and growing market
81% multicloud S I N G L E C L O U D 19% The multicloud ecosystem is a large and growing market Gartner, Forecast Analysis: Infrastructure Services, Worldwide”, September 2019 7 30%2 0 1 8 A % of enterprise customers seeking multicloud managed IaaS and PaaS will require multicloud capabilities from
Slide 8: Our robust portfolio powers the future of innovation
Our robust portfolio powers the future of innovation 8 Multicloud Applications Data Security Cloud strategy Cloud adoption and migration Managed services Cloud optimization Cloud-optimized COTS apps SaaS products Cloud native applications End-to-end IoT solutions Data engineering and strategy Relati
Slide 9: Deep technical expertise and partner ecosystem
2,800+ Cloud certified professionals 400+ Cloud-native application development and migration experts Best Multicloud approach – right workload on right cloud Global 120 countries Leader Gartner Magic Quadrant for Public Cloud Infrastructure Professional and Managed Services, Worldwide 600+ • Partner
Slide 10: Our proprietary technology is at the center of our multicloud capabilities
Our proprietary technology is at the center of our multicloud capabilities 10 $1B+ invested in Rackspace Technology IP 9 years of development AI automation 1B+ actions per month automated 12M+ hours of development to date Intelligent automation 75% of workloads automated Solution automation Reduced
Slide 11: Rackspace Technology recognized as a leader
11 Rackspace Technology recognized as a leader The Forrester Wave™ Multicloud Managed Service Providers, Q4 2020 Hosted Private Cloud Services in North America, Q2 2020
Slide 12: Agenda: Financial overview
Financial overview Amar Maletira 12 Agenda Summary results and RXT overview Kevin Jones Concluding Remarks Kevin Jones
Slide 13: 2020 Key Financial Metrics
$0.38 $0.83 $414 $473 12 Months 2020 Key Financial Metrics 13 $701 $1,126 $286 $229 $2,152 2019 2020 Bookings ($M) Revenue ($M) Non-GAAP Operating Profit ($M) 2019 $2,438 $2,707 $2,478 2020 OpenStack Core 2019 2020 Non-GAAP EPS 2019 2020 Note: Refer to Appendix for more information on how we define
Slide 14: 2020 Revenue Mix
2020 Revenue Mix Multicloud Revenue by Segment Revenue by Geography YoY Growth Rates Multicloud +17% Apps & Cross Platform +5% OpenStack Public Cloud -20% YoY Growth Rates Americas +13% EMEA +4% APJ +9% Apps and Cross Platform OpenStack Public Cloud Americas EMEA APJ Early stages of expansion outsid
Slide 15: Non-GAAP operating margin and net income margin
15.6% 16.6% 18.8% 17.0% 16.6% 17.6% 17.2% 18.4% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Note: Refer to Appendix for a reconciliation of Non-GAAP Operating Profit and Non-GAAP Net Income to the most comparable GAAP measure. 15 Non-GAAP Operating margin demonstrates the financi
Slide 16: Capital Structure Built for Financial Flexibility
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 2021 2022 2023 2024 2025 2026 2027 2028 Senior Notes Senior Secured Notes Term Loan B Capital Structure Built for Financial Flexibility 16 Recent debt repayments and refinance expected to drive annualized cash interest expense savings of ~$80M
Slide 17: FY 2021 outlook
Rackspace Technology FY 2021 outlook 17 FY 2021 Guidance 2 0 2 0 A c t u a l G r o w t h R a t e a t M i d p o i n t R E V E N U E $2.9 - $3.1 billion $2.7 billion 11% C O R E R E V E N U E $2.7 - $2.9 billion $2.5 billion 13% N O N - G A A P O P E R A T I N G P R O F I T $500 - $530 million $473 mi
Slide 18: Agenda: Concluding Remarks
Financial results Amar Maletira 18 Agenda Summary results and RXT overview Kevin Jones Concluding Remarks Kevin Jones
Slide 19: Our competitive advantage positions us to win
19 Fanatical ExperienceTM Best-in-class customer experience Rackspace FabricTM Investment in technology innovation End-to-end multicloud Across entire customer lifecycle Partnerships Strength of relationships with technology partners Continuous improvement Investments in delivery and experience Scal
Slide 20: Question and Answer Session
Question and Answer Session 20
Slide 21: Appendix
Appendix
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations 22 (In millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2019 2020 Net loss $(57.5) $62.5 $(60.5) $(46.8) $(48.2) $(32.6) (101.2) $(63.8) (102.3) (245.8) Share-based compensation expense 5.9 6.4 10.5 7.4 7.5 9.1 40.2 17.7 30.2 74.5 Cash settled equity
Slide 23: Non-GAAP Earnings Per Share Reconciliation
Non-GAAP Earnings Per Share Reconciliation 23 (In millions, except per share amounts) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2019 2020 Net loss attributable to common stockholders $ (46.8) $ (48.2) $ (32.6) $ (101.2) $ (63.8) $ (102.3) $ (245.8) Non-GAAP Net Income $ 35.3 $ 27.0 $ 34.3 $ 36.4 $ 53.
Slide 24: Definitions
Definitions 24 Bookings We calculate Bookings for a given period as the annualized monthly value of our recurring customer contracts entered into during the period from (i) new customers and (ii) net upgrades by existing customers within the same workload, plus the actual (not annualized) estimated
Slide 25: Definitions: Non-GAAP Tax Expense Rate
Definitions 25 Non-GAAP Tax Expense Rate We utilize an estimated structural long-term non-GAAP tax rate in order to provide consistency across reporting periods, removing the effect of non-recurring tax adjustments, which include but are not limited to tax rate changes, U.S. tax reform, share-based
Slide 26: rackspace technology
rackspace technology.