Rackspace Staggers on Latest Figures

Rackspace Technology, Inc. (NASDAQ: RXT) saw its share prices drop significantly on releasing results for its fourth quarter and year ended December 31, 2020.

Fourth-Quarter Revenue of $716 million, up 14% Year-over-Year; 2020 Revenue was $2,707 million, up 11% Year-over-Year

Fourth-Quarter Bookings came in at $293 million, an increase of 27% Year-over-Year; 2020 Bookings of $1,126 million, an increase of 61% Year-over-Year

Fourth-Quarter Net loss of $(64) million, or $(0.32) per diluted share; 2020 Net loss of $(246) million, or $(1.37) per diluted share

Fourth-Quarter Adjusted EBITDA was $199 million and 2020 Adjusted EBITDA was $763 million; Adjusted EBITDA margin was 28% for both Fourth Quarter and Full Year 2020

Fourth-Quarter Non-GAAP Earnings Per Share of $0.26, up 24% Year-over-Year; 2020 Non-GAAP Earnings Per Share of $0.83, up 118%

Said CEO Kevin Jones, "The fourth quarter capped off a fantastic year for Rackspace Technology. Our success in energizing sales bookings in 2020 continues to drive-double digit revenue growth. In addition we are seeing very strong earnings leverage as earnings growth outpaced revenue growth for both the fourth quarter and the full year."

Jones continued, "We believe Rackspace Technology is extremely well positioned to capitalize on the tectonic shift to the cloud. We have the people, partners, expertise and automation to help customers of all sizes optimize their multi-cloud journey, all wrapped in the fanatical customer experience for which we are known. "

RXT shares fell $2.96, or 11.8% to $22.00.