From GlobeNewswire:

Rackspace Technology, Inc. announces fourth quarter revenue of $720 million, down 9% year-over-year, and 2023 revenue of $2,957 million, down 5% year-over-year. Private Cloud revenue in the fourth quarter was $285 million, down 14% year-over-year. Public Cloud revenue was $435 million, down 5% year-over-year. Cash Flow from Operating Activities in the fourth quarter was $72 million.

The company reported a net financial debt reduction of over $900 million since the start of 2023 through debt repurchases and refinancings. This has lowered net annual interest expense by approximately $40 million, assuming full participation in the public exchange offer. Rackspace CEO, Amar Maletira, stated that the company exceeded its revenue, operating profit, and EPS guidance for the fiscal fourth quarter of 2023.

Loss from operations in the fourth quarter of 2023 was $(15) million, compared to a loss of $(227) million in the fourth quarter of 2022. Net income for the fourth quarter of 2023 was $28 million, compared to a net loss of $(214) million in the fourth quarter of 2022. Non-GAAP Operating Profit in the fourth quarter of 2023 was $48 million, a decrease of 34% compared to the same period in 2022.

For the full year of 2023, Rackspace reported revenue of $2,957 million, a decrease of 5% year-over-year. Private Cloud revenue was $1,210 million, down 12% year-over-year, while Public Cloud revenue was $1,747 million, up 0.4% year-over-year. The company’s net loss for 2023 was $(838) million, compared to a net loss of $(805) million in 2022.

On March 12, Rackspace closed a private debt exchange and received $275 million of new money to advance key strategic initiatives. The company plans to launch a public debt exchange offer, aiming to eliminate more than $600 million in net debt. Financial outlook for Q1 2024 includes revenue of $680 – $690 million, with Non-GAAP Operating Profit expected to be $12 – $14 million.



Read more at GlobeNewswire:: Rackspace Technology Reports Fourth Quarter and Full Year