Slide 1: Rackspace Technology Q4 2024 Earnings Presentation
Rackspace Technology Q4 2024 Earnings Presentation February 20, 2025
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: Q4 2024 Financial Results
Q4 2024 Financial Results #039;s in millions Q4 2024 Q/Q Y/Y Total Revenue $686 1% (5%) Non-GAAP Gross Profit $141 (1%) (10%) Non-GAAP Gross Margin 20.6% (0 pts) (1 pt) Non-GAAP Operating Profit $39 21% (13%) Non-GAAP Operating Margin 5.7% 1 pt (1 pt) Non-GAAP Loss per Share ($0.02) $0.03 $ 0.02 Note:
Slide 4: Q4 2024 Segment Financials
Q4 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 $686 $269 $417 1% 4% (0%) (5%) (6%) (4%) Non-GAAP Gross Profit $141 $107 $34 (1)% 8% (21%) (10%) (0%)
Slide 5: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures #039;s in millions Q4'24 2024 Cash Provided by Operating Activities $54 $40 Free Cash Flow $34 ($71) LTM Free Cash Flow Yield (14%) Total Capital Expenditures $27 $136 Total CAPEX Intensity 4% 5% Cash Capital Expenditures $20 $111 Cash CAPEX Intensity 3% 4% As of Decemb
Slide 6: Debt Maturity Overview
As of December 31st, Debt Maturity Overview 1 #039;s in millions $2,449 M 273 M FLFO New Money Term Loan (2) Facility Balance Maturity Rate Hedge 1-mth SOFR + 625 bps + FLFO New Money Term Loan $273 May-2028 0.114% Spread N/A May-2028 (FLSO)/ 1-mth SOFR + 275 bps + $1,350M at 2.342% w/ FLSO/Legacy Term
Slide 7: Outlook
Outlook Q1 2025 Guidance Total Revenue $653 - $665 million Private Cloud Revenue $247 - $253 million Public Cloud Revenue $406 - $412 million Non-GAAP Operating Profit $19 - $21 million Non-GAAP Loss Per Share ($0.07) - ($0.09) Non-GAAP Other Income (Expense) ($46) - ($50) million Non-GAAP Tax Expen
Slide 8: Appendix
Appendix
Slide 9: FY 2024 Financial Results
FY 2024 Financial Results #039;s in millions FY 2024 Y/Y Total Revenue $2,737 (7%) Non-GAAP Gross Profit $563 (15%) Non-GAAP Gross Margin 20.6% (2 pts) Non-GAAP Operating Profit $106 (33%) Non-GAAP Operating Margin 3.9% (1 pt) Non-GAAP Loss per Share ($0.27) ($0.03) Adj. EBITDA $245 (32%) Adj. EBITDA M
Slide 10: FY 2024 Segment Financials
FY 2024 Segment Financials #039;s in millions Y/Y % FY’24 Total Private Public Total Private Public Rackspace Cloud Cloud Rackspace Cloud Cloud Total Revenue $2,737 $1,055 $1,683 (7%) (13%) (3%) Non-GAAP Gross Profit $563 $408 $155 (15%) (12%) (20%) Non-GAAP Gross Margin 20.6% 38.7% 9.2% (2 pts) 0 pts
Slide 11: Non-GAAP Gross Profit Reconciliation
Non-GAAP Gross Profit Reconciliation (In millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 GAAP Gross Profit $154.1 $132.8 $131.4 $137.5 $131.7 $628.8 $533.4 Share-based compensation expense 1.7 1.9 2.0 2.0 1.7 9.1 7.6 Purchase accounting impact on expense 0.7 0.6 0.6 0.3 0.3 2.6 1.8 Restr
Slide 12: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation (In millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Net income (loss) $28.0 $(640.6) $25.0 $(186.6) $(60.4) $(837.8) $(862.6) Share-based compensation expense 13.5 12.8 19.5 15.5 15.6 65.4 63.4 Transaction-related adjustments, net 1.1 1.0 1.6 1.8 0.8 5.2
Slide 13: Non-GAAP Operating Profit Reconciliation
Non-GAAP Operating Profit Reconciliation (In millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Loss from operations $(15.2) $(652.8) $(53.8) $(173.7) $(28.8) $(899.4) $(909.1) Share-based compensation expense 13.5 12.8 19.5 15.5 15.6 65.4 63.4 Transaction-related adjustments, net 1.1 1.0 1
Slide 14: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Net income (loss) $28.0 $(640.6) $25.0 $(186.6) $(60.4) $(837.8) $(862.6) Share-based compensation expense 13.5 12.8 19.5 15.5 15.6 65.4 63.4 Transaction-related adjustments, net 1.1 1.0 1.6 1.8 0.8 5.2 5.
Slide 15: Non-GAAP Loss Per Share Reconciliation
Non-GAAP Loss Per Share Reconciliation (In millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Net income (loss) attributable to common stockholders $28.0 $(640.6) $25.0 $(186.6) $(60.4) $(837.8) $(862.6) Non-GAAP Net Loss $(8.9) $(25.8) $(21.3) $(12.0) $(4.4) $(52.1) $(63.5) Weighted averag
Slide 16: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Net cash provided by (used in) operating activities $72.2 $(90.3) $24.1 $51.8 $54.3 $374.9 $39.9 Cash purchases of property, equipment and software (33.9) (28.1) (38.6) (24.5) (19.9) (96.9) (111.1) Free Cas
Slide 17: Definitions
Definitions Segment Segment revenue less expenses directly attributable to running the respective segments’ business. These expenses exclude centralized corporate function costs. Operating Profit Corporate Costs that are not allocated to segments. These costs are related to centralized corporate fun
Slide 18: Rackspace Technology
rackspace technology-