Slide 1: Rackspace Technology Q1 2025 Earnings Presentation
Rackspace Technology Q1 2025 Earnings Presentation May 8, 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: Q1 2025 Financial Results
Q1 2025 Financial Results #039;s in millions Q1 2025 Q/Q Y/Y Total Revenue $665 (3%) (4%) Non-GAAP Gross Profit $132 (6%) (6%) Non-GAAP Gross Margin 19.9% (1 pt) (0 pts) Non-GAAP Operating Profit $26 (35%) 83% Non-GAAP Operating Margin 3.8% (2 pts) 2 pts Non-GAAP Loss per Share ($0.06) ($0.04) $ 0.05 N
Slide 4: Q1 2025 Segment Financials
Q1 2025 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 $665 $250 $416 (3%) (7%) (0%) (4%) (7%) (2%) Non-GAAP Gross Profit $132 $93 $40 (6%) (13%) 15% (6%) (1
Slide 5: Cash Flow & Capital Expenditures
Cash Flow & Capital Expenditures #039;s in millions Q1’25 LTM Cash Provided by Operating Activities $13 $143 Free Cash Flow $4 $52 LTM Free Cash Flow Yield 13% Total Capital Expenditures $27 $118 Total CAPEX Intensity 4% 4% Cash Capital Expenditures $8 $91 Cash CAPEX Intensity 1% 3% As of March 31, 202
Slide 6: As of March 31st, Debt Maturity Overview
As of March 31st, Debt Maturity Overview 1 #039;s in millions $2,474 M Facility Balance Maturity Rate Hedge 272 M FLFO New Money Term Loan (2) 1-mth SOFR + 625 bps + FLFO New Money Term Loan $272 May-2028 0.114% Spread N/A May-2028 1-mth SOFR + 275 bps + $1,350M at 2.342% w/ 75 FLSO/Legacy Term Loan $1
Slide 7: Outlook
Outlook Q2 2025 Guidance Total Revenue $653 - $665 million Private Cloud Revenue $247 - $253 million Public Cloud Revenue $406 - $412 million Non-GAAP Operating Profit $25 - $27 million Non-GAAP Loss Per Share ($0.04) - ($0.06) Non-GAAP Other Income (Expense) ($42) - ($46) million Non-GAAP Tax Expen
Slide 8: Appendix
Appendix
Slide 9: Non-GAAP Gross Profit Reconciliation
Non-GAAP Gross Profit Reconciliation (In millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 GAAP Gross Profit $132.8 $131.4 $137.5 $131.7 $126.9 Share-based compensation expense 1.9 2.0 2.0 1.7 1.8 Purchase accounting impact on expense 0.6 0.6 0.3 0.3 0.2 Restructuring and transformation expenses 5.0
Slide 10: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation (In millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net income (loss) $(640.6) $25.0 $(186.6) $(56.0) $(71.5) Share-based compensation expense 12.8 19.5 15.5 15.6 12.0 Transaction-related adjustments, net 1.0 1.6 1.8 0.8 1.5 Restructuring and transformation expense
Slide 11: Non-GAAP Operating Profit Reconciliation
Non-GAAP Operating Profit Reconciliation (In millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Loss from operations $(652.8) $(53.8) $(173.7) $(28.8) $(38.4) Share-based compensation expense 12.8 19.5 15.5 15.6 12.0 Transaction-related adjustments, net 1.0 1.6 1.8 0.8 1.5 Restructuring and transform
Slide 12: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (In millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net income (loss) $(640.6) $25.0 $(186.6) $(56.0) $(71.5) Share-based compensation expense 12.8 19.5 15.5 15.6 12.0 Transaction-related adjustments, net 1.0 1.6 1.8 0.8 1.5 Restructuring and transformation expenses
Slide 13: Non-GAAP Loss Per Share Reconciliation
Non-GAAP Loss Per Share Reconciliation (In millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net income (loss) attributable to common stockholders $(640.6) $25.0 $(186.6) $(56.0) $(71.5) Non-GAAP Net Loss $(25.8) $(21.3) $(12.0) $(4.4) $(14.7) Weighted average number of shares – Diluted 219.8 229.6
Slide 14: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (In millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net cash provided by (used in) operating activities $(90.3) $24.1 $51.8 $54.3 $12.6 Cash purchases of property, equipment and software (28.1) (38.6) (24.5) (19.9) (8.3) Free Cash Flow $(118.4) $(14.5) $27.3 $34.4 $4.
Slide 15: 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 16: Rackspace Technology
rackspace technology-