Slide 1: Rackspace Technology Q2 2024 Earnings Presentation
Rackspace Technology Q2 2024 Earnings Presentation August 8, 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: Q2 2024 Financial Results
Q2 2024 Financial Results #039;s in millions Q2 2024 Q/Q Y/Y Total Revenue $685 (1%) (8%) • Non-GAAP Net Revenue is a metric that applies net-accounting to public cloud infrastructure Non-GAAP Net Revenue $380 (1%) (15%) resale revenue (only the profit element of infrastructure resale is included) Non-
Slide 4: Q2 2024 Segment Financials
Q2 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 $685 $260 $425 (1%) (3%) 1% (8%) (17%) (2%) Non-GAAP Net Revenue $380 $260 $120 (1%) -- 4% (15%) -- (1
Slide 5: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures #039;s in millions Reported As of June 30, 2024 Q2'24 LTM Cash Provided by Operating Activities $24 $273 Free Cash Flow ($15) $145 LTM Free Cash Flow Yield 21% Total Capital Expenditures $33 $144 Total CAPEX Intensity 5% 5% Cash Capital Expenditures $39 $128 Cash CAPEX
Slide 6: As of June 30th, Debt Maturity Overview
As of June 30th, Debt Maturity Overview 1 #039;s in millions $2,483 M 274 M FLFO New Money Term Loan (2) Facility PF Balance Maturity Rate Hedge 1-mth SOFR + 625 bps + FLFO New Money Term Loan $274 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 Q3 2024 Guidance Total Revenue $668 - $680 million Private Cloud Revenue $255 - $262 million Public Cloud Revenue $414 - $419 million Non-GAAP Operating Profit $29 - $31 million Non-GAAP Loss Per Share ($0.06) - ($0.08) Non-GAAP Other Income (Expense) ($51) - ($55) million Non-GAAP Tax Expen
Slide 8: Appendix
Appendix rackspace technology.
Slide 9: Non-GAAP Net Revenue Reconciliation
Non-GAAP Net Revenue Reconciliation (In millions) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total Revenue $746.3 $732.4 $719.7 $690.8 $684.9 Pass-through infrastructure resale costs (299.7) (302.5) (306.4) (306.7) (305.0) Non-GAAP Net Revenue $446.6 $429.9 $413.3 $384.1 $379.9 9
Slide 10: Non-GAAP Gross Profit Reconciliation
Non-GAAP Gross Profit Reconciliation (In millions) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 GAAP Gross Profit $153.1 $152.0 $154.1 $132.8 $131.4 Share-based compensation expense 2.6 2.0 1.7 1.9 2.0 Special bonuses and other compensation expense 1.4 1.2 0.7 0.9 1.0 Purchase accounting impact on expens
Slide 11: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation (In millions) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net income (loss) $(27.2) $(226.6) $28.0 $(640.6) $25.0 Share-based compensation expense 19.5 17.2 13.5 12.8 19.5 Special bonuses and other compensation expense 4.2 3.3 2.4 3.1 3.3 Transaction-related adjustments,
Slide 12: Non-GAAP Operating Profit Reconciliation
Non-GAAP Operating Profit Reconciliation (In millions) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Loss from operations $(63.8) $(239.4) $(15.2) $(652.8) $(53.8) Share-based compensation expense 19.5 17.2 13.5 12.8 19.5 Special bonuses and other compensation expense 4.2 3.3 2.4 3.1 3.3 Transaction-relat
Slide 13: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In millions) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net income (loss) $(27.2) $(226.6) $28.0 $(640.6) $25.0 Share-based compensation expense 19.5 17.2 13.5 12.8 19.5 Special bonuses and other compensation expense 4.2 3.3 2.4 3.1 3.3 Transaction-related adjustments, n
Slide 14: Non-GAAP Earnings (Loss) Per Share Reconciliation
Non-GAAP Earnings (Loss) Per Share Reconciliation (In millions) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net income (loss) attributable to common stockholders $(27.2) $(226.6) $28.0 $(640.6) $25.0 Non-GAAP Net Loss $(13.5) $(8.1) $(6.4) $(24.3) $(19.4) Weighted average number of shares – Diluted 215.
Slide 15: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In millions) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net cash provided by (used in) operating activities $37.8 $266.8 $72.2 $(90.3) $24.1 Cash purchases of property, equipment and software (23.4) (27.5) (33.9) (28.1) (38.6) Free Cash Flow $14.4 $239.3 $38.3 $(118.4) $(
Slide 16: 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 17: Rackspace Technology
rackspace technology.