Shares of the leading end-to-end multicloud technology solutions company, Rackspace Technology Inc. (RXT) are down -9.42% at $15.10 in pre-hours trading last checked. RXT stock closed at $16.67 in the last session, down 0.42% or $0.07. Throughout the day, the price of the RXT stock fluctuated between $16.419 and $16.91. The number of shares of RXT stock traded on the day was 1.75 million, more than the company’s 50-day daily volume of 0.91 million and more than its Year to Date volume of 1.62 million. The RXT stock has declined 5.44% over the past year, and has reduced -2.17% in the past week. Over the past six months, RXT stock has decreased by -27.52%, and over the last three months, it has decreased by -8.81%. This year, RXT stock has returned -12.54%. The price of RXT stock dropped after its financial report was released.
Are RXT’s quarterly results affecting the stock price?
Rackspace is one of the leaders in cloud-based technology services. Based on its broad range of platforms, RXT builds, operates, and manages cloud environments for its customers across a range of technologies. RXT partners with customers to help them develop new products and technologies, as well as modernize applications, throughout the entire cloud journey.
In its announcement today, Rackspace reported results for its second quarter that ended on June 30, 2021.
The results of the second quarter of 2021:
- In the second quarter of 2021, RXT’s revenue was $744 million, up 13% from $657 million in the second quarter of 2020.
- Customer acquisitions and growth in spending in the Multicloud Services and Apps & Cross Platform segments contributed to RXT’s second quarter revenue.
- In constant currency terms, RXT’s revenue increased by 11% in the second quarter of 2021 over the second quarter of 2020.
- As compared with the second quarter of 2020, the revenue from RXT’s Core Segments (Core Revenue) increased by 17% in the second quarter of 2021.
- RXT’s Core Revenue for the second quarter of 2021 increased by 15% compared to the same period in the prior year.
- A 10% decline in Bookings from the second quarter of 2020 to the second quarter of 2021 reduced RXT’s Bookings to $258 million, a 10% decrease from Bookings of $289 million.
- One large deal valued at approximately $38 million was booked in the second quarter of 2020.
- Bookings growth for RXT was 3% year-over-year without the impact of this deal.
- RXT reported a net loss of $(37) million in the second quarter of 2021, compared to a net loss of $(33) million in the second quarter of 2020.
- In the second quarter of 2021, RXT stock lost ($0.18) per diluted share, compared to $(0.20) in the second quarter of 2020.
- A non-GAAP Operating Profit of $119 million was generated in RXT’s second quarter of 2021, a 4% increase over the $115 million earned in the second quarter of 2020.
- RXT’s non-GAAP earnings per share grew by 14% from $0.21 in the second quarter of 2020 to $0.24 in the second quarter of 2021.
- At June 30, 2021, RXT stock had cash, cash equivalents, and no balance outstanding on its refinancing facility of $215 million.
RXT’s continued growth:
As a result of double-digit revenue growth and strong operating profit margins, Rackspace Technology (RXT) stock reported solid second quarter financial results. Moreover, RXT’s working capital and cash management transformation programs delivered outstanding results in the second consecutive quarter through operating cash flow exceeding $100 million.
