Managed Cloud Company Rackspace Beats Financial Forecasts

February 28, 2021
Managed Cloud Company Rackspace Beats Financial Forecasts
Managed cloud company Rackspace has beaten financial forecasts by posting an 11% increase in revenues during 2020. Santa Monica, California-based Rackspace was founded in 1998. The company leverages partners that include OpenStack, Oracle, SAP, VMware, Alibaba, AWS, Google, and Microsoft. It specializes in managed services that are tailor-made to the precise needs of its customers. Its 2020 revenue was $2,707 million, an increase of 11% on the $2,438 million posted in the previous year.

The upbeat nature of its announcement masked the fact that Rackspace posted a $246 million loss for the last financial year, and this despite its multicloud services and apps and cross-platform options fuelling revenue growth in the final quarter of the period. Final quarter non-GAAP earnings per share rose 14% on the same period in the previous financial year. Its Multicloud Services increased 19% to $572.5 million and its Apps and Cross-Platform income went up 12% to $91.3 million during the same period. Income from its OpenStack Public Cloud went down 21 percent to $52.4 million. 2020 figures were “positively impacted” Rackspace’s Onica acquisition in November 2019.

“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,” explained the company’s CEO Mr. Kevin Jones.

"We believe Rackspace Technology is extremely well positioned to capitalize on the tectonic shift to the cloud," he added. "We have the people, partners, expertise and automation to help customers of all sizes optimize their multicloud journey, all wrapped in the fanatical customer experience for which we are known. In 2020 we made great progress towards becoming the leading pure play multicloud services and solutions company and set the stage for years of incremental revenue growth, earnings growth, and enhancement of shareholder value."

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