==Rackspace Technology (RXT) reported earnings on Tue 12 March 24 (a/h)

 

Rackspace Technology beats by $0.01, reports revs in-line; guides Q1 EPS below consensus, revs below consensus; also announces that it closed a private debt exchange with certain creditors representing more than 72% of its first lien term loans

• Reports Q4 (Dec) loss of $0.03 per share, excluding non-recurring items, $0.01 better than the FactSet Consensus of ($0.04); revenues fell 8.5% year/year to $720 mln vs the $714.74 mln FactSet Consensus.
• Private Cloud revenue was $285 million in the fourth quarter of 2023, a decrease of 14% on a reported basis and 15% on a constant currency basis as compared to revenue of $330 million in the fourth quarter of 2022.
• Public Cloud revenue was $435 million in the fourth quarter of 2023, a decrease of 5% on a reported and constant currency basis as compared to revenue of $457 million in the fourth quarter of 2022.
• Co issues downside guidance for Q1, sees EPS of ($0.14)-($0.12), excluding non-recurring items, vs. ($0.04) FactSet Consensus; sees Q1 revs of $680-$690 mln vs. $709.40 mln FactSet Consensus.
• Co also announces that it has closed a private debt exchange with certain of its creditors representing more than 72% of the company's first lien term loans and more than 64% of its first lien notes, as well as 100% of its Revolving Credit Facility commitments.
  • Through the Private Exchange, Rackspace has eliminated more than $375 million of net debt and has received $275 million of new money that will come to the balance sheet as additional liquidity to advance key strategic initiatives. Additionally, the maturities on the RCF and other participating senior debt facilities were extended to May 2028.