And where we see opportunity, Matt, going forward for a lot of the kind of what you would consider traditional, more traditional private cloud business is in the public sector, business which is growing for us, healthcare, of course, financial services and also technology companies. Earnings Rackspace Technology (NASDAQ:RXT) Earnings Information Rackspace Technology last posted its quarterly earnings data on November 10th, 2020. Great question, Ramsey. As you can see, the 2016 customer cohort has grown at a compounded annual rate of 13%. We deploy separate resources to not only land new logos but also expand relationships within our existing client base. Rackspace Technology reported third quarter earnings that beat expectations. And it's also really revolutionized our service offerings. We see movement from public cloud to private cloud. So basically, the dynamic is they're growing faster and faster, right? As we announced previously, Dustin will be leaving Rackspace Technology and transitioning the CFO role to Amar Maletira. Thanks so much. I know that you're investing. SAN ANTONIO, Aug. 31, 2020 (GLOBE NEWSWIRE) -- Rackspace Technology, Inc. (Nasdaq: RXT), ... and requesting the Rackspace Technology Second Quarter 2020 Earnings … Rackspace Technology: 3Q Earnings Snapshot Associated Press | The San Antonio-based company said it had a loss of 54 cents per share. The following slide deck was published by Rackspace Technology, Inc. in conjunction with their 2020 Q3 earnings call. As we continue to stack Service Blocks with our customers, we recognize both improving customer retention and scale. If we turn to Slide 8, let me spend a minute speaking to our go-to-market strategy in more detail. The other thing just to say, just to finish off on this, just remember, Keith, our revenue model is 95% recurring. So when we â if you look back to my prepared remarks around gross margins in general and about some of the growth that we're experiencing, what we mentioned is that some of these deals, particularly as we're doing so many and so quickly, coming at initially a little bit lower margin, and some of that's associated with implementing them as well. With the strong revenue, profit and cash flow momentum we have in our business, we're off to a great start as a public company. Really, how we think about our installed base of customers is through the net revenue retention metric. And then second part of that really is when we think about the size, the absolute dollar size of new bookings relative to maybe what's embedded in the churn, like when should we start to hit this kind of inflection point where we start to get a little bit of a better connection between bookings and revenue growth? And if you do see it, how does it impact you guys, is it a threat, an opportunity? Using the Rackspace Technology solution, Zeotap is able to accelerate time to market, enhance their customers' experience, save money with streamlined processes and ultimately free their internal IT resources to focus on core business activities. So that's kind of our current and future focus. As Kevin just mentioned, we are very pleased with our third-quarter results as we delivered another record sales bookings quarter and strong core revenue growth. Slide 10 demonstrates how our strategic shift to multi-cloud solutions is working and has driven double-digit growth across all customer cohorts since 2016. And really, the way that we approach our customers now is we approach them on a workload-by-workload basis. However, this margin also generally increases as customers grow with us and add Service Blocks. All right. Thank you. Market data powered by FactSet and Web Financial Group. The complexity is mind-boggling for customers. That increased in Q2 to 99%, and we're delighted that we've gotten to the 100% net revenue retention mark in the third quarter. We're pretty excited about kind of how we're executing the strategy there, Bryan. We moved our Rackers to work-from-home environment, and we seamlessly transition our 120,000 customers to this environment that we've been working in since then. Rackspace Technology to Announce Second Quarter 2020 Earnings on Monday, August 31, 2020 Email Print Friendly Share August 13, 2020 16:15 ET | Source: Rackspace Technology, Inc. We are also seizing the massive multi-cloud opportunity available to us and investing in growth. Sign up for free newsletters and get more CNBC delivered to ⦠Rackspace Technology won the business by providing a means to stabilize and optimize a large, complex Google Cloud-supported application through Platform Essentials and Service Blocks, along with advisory guidance for critical areas of security and compliance best practices. And so I'm just curious if you could just reiterate how much was â of that government of Texas win, how much was in this quarter? Rackspace Technology Inc. (NASDAQ:RXT) went up by 0.56% from its latest closing price compared to the recent 1-year high of $22.75. This makes our achievement in Q3 even more special, with broad-based growth across geographies, industries and market segments. We expect our core revenue growth to be 14% to 15%, up from the previous range of 12.5% to 13.5%. Gross margins, I think, are down on a year-over-year basis a fair bit. Customers want to be able to scale up and scale down. We are proud that we hit double-digit pro forma core revenue growth well ahead of our previously discussed time frame. And on the upper right, we again showed strong double-digit total and core revenue growth, reflecting the strong bookings performance we've had over the past several quarters. We continue to see momentum in our sales bookings ramp driven by the strategy and initiatives we are implementing. That's a great question. We now provide cloud-native app development, Internet of Things, serverless, containers and more to help Teva's business. Lastly, on the bottom right, you can see that capital intensity, which is defined as capital expenditures as a percentage of our revenues, improved to 7% in the third quarter from 9% last year. This is a key part of our strategy and should continue to improve free cash flow going forward. It's a $400 billion market opportunity. The Earnings Whisper Score gives the statistical odds for the stock ahead of earnings. Second point is we are, as Dustin mentioned in his opening remarks, we are intentionally investing to grow, right? Rackspace Technology, Inc. 2020 Q3 – Results – Earnings Call Presentation (NASDAQ:RXT) The following slide deck was published by Rackspace Technology, Inc. in conjunction with their 2020 Q3 earnings call. Yes. So let's begin on Slide 5. I know it's improving, but I suspect there's going to be a point in time in the not-too-distant future where that becomes a lot more meaningful. So we just focus on the cloud. Absolutely. SAN ANTONIO, Nov. 03, 2020 (GLOBE NEWSWIRE) -- Rackspace Technology, Inc. (NASDAQ: RXT) (the “Company”) today announced that it will release its third quarter 2020 financial results after the market closes on November 10, 2020. We are excited by the momentum with these new customers and are optimistic as 29% of our bookings were from new logos in the 12 months ended September 30, 2020. Lastly, on Slide 20, you can see our legacy OpenStack revenues now represent 8% of the total. Rackspace Technology, Inc. is expected* to report earnings on 11/10/2020 after market close. I'll provide more color on our third quarter sales bookings success in a minute, but I'll state at the top that the breadth of growth further validates our view that Rackspace Technology is uniquely well positioned to capitalize on the secular growth in the cloud market. And thirdly is scale. Rackspace Technology CEO Kevin Jones joins Yahoo Finance Live to discuss. So turning to Slide 13. And by the way, we're going to market with our hyperscalers not just in public cloud, but in private cloud, too, with the release of some of the private cloud products by the hyperscalers. I wanted to actually just make sure I understood a prior comment from the question before mine regarding the Government of Texas win and when that sort of starts to feather in. Thanks for the question. And then Dustin, you can jump in as well. Yes, yes. ET. So look, this is an important topic because if you kind of look at how Rackspace Technology is now, really a completely transformed company versus where we were before the take private. By no means is this an exhaustive list. The consensus earnings estimate was $0.18 per share on revenue of $681.9 million. I am incredibly excited to be back together with Amar and looking forward to working with him to lead Rackspace Technology to the next phase of growth. There's nothing different about the duration. That's why we've invested in growth, right? In the third quarter, pro forma core revenue growth was 10%, and overall GAAP revenue growth was 18%, up from 7% and 13%, respectively, in the second quarter. What I will say is you've seen that acceleration already step up as you think about Q3, excuse me, Q2 to Q3. Rackspace Technology has confirmed that its next quarterly earnings report will be published on Tuesday, November 10th, 2020. Our pipeline is up year on year and quarter on quarter. As we may have mentioned, we are no longer actively marketing these services within this segment. And yes, I do believe our revenue momentum is sustainable. The reported $0.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.01. The San Antonio-based company said it had a loss of 54 cents per share. So multi-cloud is kind of how customers are buying today with over 80% of enterprises considering some sort of multi-cloud strategies today, and that's really how we're seeing the market play out. We're excited about the momentum. Rackspace … Very good. And then also just say, Keith, this applications and cross platform point, we are very focused on staying in the hyper growth areas. Look, we do see it as an opportunity. Even with this record sales quarter, pipeline is up, right, more than doubled since Q3 last year. Our bookings are up. In the third quarter, we recorded the largest sales bookings in the history of the company, the highest revenue in the history of the company. This speaks to the core strengths of Rackspace Technology's go-to-market strategy, which I will detail in a minute. Interested parties may access the conference call live over the phone by dialing 1-877-308-2053 (domestic) or 1-212-231-2930 (international) and requesting the Rackspace Technology Third Quarter 2020 Earnings Conference Call. The company posted revenue of $681.7 million in the period. The Earnings Whisper number was $0.20 per share. All of those things together are really what has helped contribute to kind of about the consistency of our sales execution. So yes, we're very excited about our sales and revenue momentum. SAN ANTONIO (AP) _ Rackspace Technology, Inc. (RXT) on Tuesday reported a loss of $101.2 million in its third quarter. This is a great visual of both the significant growth dynamic in multi-cloud as well as the success we have had implementing a number of initiatives to enable this growth. We focused on the enterprise market, and we expanded globally. Shares are up 12.4% since reporting last quarter. Just to say that, again, when we talk about broad-based strength across offerings beyond just the State of Texas deal that we did in Q3, we had an incredibly strong quarter in application sales as well in Q3. Earnings Rackspace Technology (NASDAQ:RXT) Earnings Information. And by the way, a little more on this color for you here, Matt. And finally, we have a robust cash flow profile with annual adjusted EBITDA of over $750 million and adjusted EBITDA margin of 29% in the 12 months ended September 30. And while we don't publish the exact sales targets that we have each month, we do track them monthly, right? Download PDF130Click to enlargeNotes:Source link Download PDF130Click to enlargeNotes:Source link Not only that, in addition to all of the sales success we've had, if you just look at our pipeline, our pipeline is double what it was at this time last year, and it's also up from last quarter. So yes, we're really quite excited about the sales bookings momentum that we've had. This strategy has worked incredibly well for us and has enabled a strong new logo motion and our land and expand model that has driven the record bookings growth we just detailed. Very good. The San Antonio-based company said it had a loss of 54 cents per share. And our next question is from the line of Dan Perlin with RBC Capital Markets. Rackspace Technology will hold a conference call today, November 10, 2020, at 4:00pm CT / 5:00pm ET to discuss its third quarter 2020 results. As I mentioned earlier, we have never been more confident that the strategic shift we implemented two years ago is driving results. On the right side, Zeotap is a venture-funded identity and data platform based in Germany. Earnings, adjusted for non-recurring costs, came to 19 cents per share. Bookings, up over 60% year over year; 9% since last quarter, even though the last quarter included the large State of Texas deal. Rackspace Technology does a good job of balancing the need for technology, internal expertise backed with customer references, and most importantly, a commitment to customer satisfaction. So on that, we're absolutely in growth mode. Each of our specialty areas map directly back to our core solution segments, allowing customers to access focused and specialized experts in a way that they cannot do with our peers. Well, maybe I'll kick off with that one. OpenStack now generates only 8% of our overall revenue, and we expect this segment to continue to decline in coming quarters. Our offerings are truly modular and cover the life cycle of a customer's cloud journey. We also continue to evaluate acquisition opportunities to bolster growth. I wanted to start out with Apps & Cross Platform. The company posted revenue of $681.7 million in the period. A discussion of these risks and uncertainties is included in our S-1 registration statement, our quarterly reports on Form 10-Q and other SEC filings. Thanks, Keith. The 2017 cohort has grown at a rate of 25%, and the 2018 cohort has grown at a rate of 27%. For the full-year 2020, we now expect revenue growth of 10% to 11%, up from our previous range of 9% to 10%. We're also seeing an increased pipeline. And it's virtually impossible for customers to do that at scale in a world-class way. The slide deck we will refer to during today's prepared remarks can be found on the investor relations section of our website. SAN ANTONIO, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Rackspace Technology Global, Inc. (NASDAQ: RXT) (the âCompanyâ) today announced that it will release its second quarter 2020 ⦠We also had a little more growth acceleration in Apps & Cross Platform this quarter than I think was printed. This drives our double-digit revenue growth profile, improves profitability and results in strong and sustainable free cash flow growth. OK. I heard the strong sales bookings. Yes. As Kevin noted, the growth was driven by strong performance and the broad-based impact of our bookings growth as well as the expansion with existing clients through our land and expand strategy. Thanks and good evening, guys. But I'm curious, just the impact of the sales bookings and the implementations, if that's also having an impact on gross margin here. His resignation is effective Nov. 23., so Semach will stay for the company's third-quarter earnings report, according to a news release. We're â thank you for that. Very good. Natalie SilvaRackspace Technology Corporate Communicationspublicrelations@rackspace.com, Joe CrivelliRackspace Technology Investor Relationsir@rackspace.com, Rackspace Technology to Announce Third Quarter 2020 Earnings on Tuesday, November 10, 2020, Rackspace Technology: Multicloud Solution Experts, https://ir.rackspace.com/news-and-events/events-and-presentations. These statements are subject to known and unknown risks and uncertainties, which would cause actual results to differ materially from those expressed on the call. And in particular, if there's any way to sort of dimensionalize or think about the contribution between growth in the public cloud versus private cloud or more traditional on-prem underneath there. Dustin will provide more details in a moment. SAN ANTONIO, Nov. 03, 2020 (GLOBE NEWSWIRE) -- Rackspace Technology, Inc. (RXT) (the “Company”) today announced that it will release its third quarter 2020 financial results after the market closes on November 10, 2020. Tech 11 mins Paris enjoys Brexit bonus with estimated 4,735 extra finance jobs Investing.com We also reported 36% year-over-year growth in adjusted earnings per share in the third quarter. We're doing both. We are at the early stages of a significant secular trend, and we are well positioned to capture and capitalize on this market momentum. Before I turn the call over to Kevin, on Slide 2, you'll see that certain comments we make on this call will be forward-looking. We see movement from private cloud to public cloud. Thanks, Matt. Price to Earnings ratio is typically used for current valuation of Rackspace Hosting and is one of the most popular ratios that investors monitor daily. Good afternoon, everyone. Please go ahead. Our core segments continue to increase as an overall percentage of our revenue and reached 92% of the total in the third quarter, 80% from Multicloud Services and 12% from Apps & Cross Platform. Pro forma core revenue growth accelerated to 10% in the third quarter, which, as Kevin mentioned, is a milestone that we hit well ahead of schedule. We repaid $515 million of our senior notes in September, and we will repay an additional $86 million next week on November 16. And just to follow on to that point, Bryan, to answer the other question, just keep in mind on the margin point, particularly as it relates to Q3, we talked about making a number of investments for growth. Firstly is breadth. To close, I want to recap why we believe Rackspace Technology is such a compelling investment. We do a lot of business with technology companies particularly because they require low latency and fast response times. We will address 2021 guidance during our fourth quarter earnings call. Joe Crivelli -- Vice President, Investor Relations. The company also provided guidance above the consensus estimates. I'm just wondering if you could dig a little bit deeper into that portfolio and talk about what's driving that acceleration. Additionally, we continue to expand globally and had our first customer wins in South Africa, Indonesia and Vietnam. We've got a long runway of not just revenue improvement but profitability improvement ahead of us. Rackspace Technology, Inc. (RXT) Q3 2020 Earnings Call Transcript RXT earnings call for the period ending September 30, 2020. You're able to improve upon that. But for Q3, this segment grew 3% on a constant currency basis compared to last year's third quarter due to the State of Texas deal coming online. After raising $658 million in net proceeds from our IPO, our leverage now stands at 4.3 times trailing 12-month adjusted EBITDA. So we're really quite enthusiastic about that. Additionally, as you may remember, our revenue is over 95% recurring and gives us great visibility into our revenue trajectory. Absolutely. Rackspace Technology reported third quarter earnings that beat expectations. Earnings, adjusted for non-recurring costs, came to 19 cents per share. Rackspace Technology, Inc. (NASDAQ:RXT)Q3 2020 Earnings CallNov 10, 2020, 5:00 p.m. The report will be for the fiscal Quarter ending Sep 2020. Thank you. Rackspace CEO Kevin Jones joins "Squawk Alley" to discuss the company's third-quarter results. We showcased during the earnings call, in the presentation a little bit about the new logos as well as the mix between that and installed base. Our philosophy when integrating companies like we did with Onica is to make sure we do it with extreme quality. So that momentum did accelerate a bit, but we certainly do not see it as something that was temporary by any means. The consensus earnings estimate was $0.18 per share on revenue of $681.9 million. To that end, we are implementing our efficiency transformation programs to reduce costs through bestshoring and automation. Rackspace Technology reported third quarter earnings that beat expectations. So we really see the trends in the IT market as very, very favorable to Rackspace Technology. Firstly, you can see how much progress we have made in aggregate sales bookings growth over a short period of time. Those two coupled together did drive an impact to overall gross margin and adjusted EBITDA together. Yes. If you could just â you had 3% growth in the quarter and 3% growth year-to-date. This is something that is here to stay. And our next question is from the line of Ramsey El-Assal with Barclays. After our prepared remarks this afternoon, we'll be happy to take your questions. Dan Perlin -- RBC Capital Markets -- Analyst. Rackspace Technology CEO Kevin Jones joins Yahoo Finance Live to discuss. Welcome to the Rackspace Technology, third quarter 2020 earnings call. So definitely an area of current investment, an area of significant sales momentum with the State of Texas deal that we talked about before and more to come here. Rackspace Technology expects full-year earnings … Sure. And I think this quarter at 39% organic without any large deals is really notable. The San Antonio-based company said it had a loss of 54 cents per share. Rackspace Price to Earning is currently at 30.47 X. As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation. We've done four acquisitions since the LBO, Tricore, Datapipe, RelationEdge and, most recently, Onica which is a fantastic acquisition. I want to ask the popular question about the impact from COVID. The Ascent is The Motley Fool's new personal finance brand devoted to helping you live a richer life. Multi-cloud again was already accelerating before COVID, and it was accelerating all around the world before COVID. The result is that we have satisfied customers who see a clear return on investment while working with us and ultimately partner with us longer. And as we indicated on the call, we're really quite excited about the momentum there, right? As Kevin previously announced, full-year 2020 guidance is being raised to the following. The reported $0.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.01. And how long of a period does that take before you see a client at maturity and really expanding the margin? And as you look at guidance for Q4, you'll see an even more material step-up. OK. OK. Then my follow-up, go back to bookings for a second. On average, our contract length is about three years. So we're very optimistic. Dustin, do you want to start with that one? In Q3, we grew these revenues by 20% on a constant currency basis compared to last year's third quarter. The targets that Dustin and I set for the team certainly are increasing. And all of that happening in such short period of time is pretty exciting. The company posted revenue of $681.7 million in the period. This demonstrates that our land and expand strategy is working. Rackspace Technology 3Q20 Earnings Call November 10, 2020 at 5:00 PM EST btn Events View All IR Nav Overview Investor Overview Why Rackspace Technology ? Our Service Blocks allow customers to buy offerings that fit their particular needs at a given point in time. Tech 13 mins Zoom stock downgraded by JPMorgan after 505% rally on concerns a COVID-19 vaccine could dent further upside Business Insider Video Transcript ZACK GUZMAN: Welcome back to Yahoo Finance Live. Nov. 10, 2020Updated: Nov. 10, 2020 2:36 p.m. SAN ANTONIO (AP) _ Rackspace Technology, Inc. (RXT) on Tuesday reported a loss of $101.2 million in its third quarter. Looking forward, I'm excited about the future for Rackspace Technology. As we mentioned, fifth record sales quarter in a row. It requires new skills, new methodologies, new technologies. So we anticipate very, very strong momentum picking up in Apps & Cross Platform services going forward. Can you just touch on the dynamics over there? So that's the first point. Press Release Rackspace Technology to Announce Second Quarter 2020 Earnings on Monday, August 31, 2020 Published: Aug. 13, 2020 at 4:15 p.m. And the last point I'll put to put a finer point on it, when you look at it from a cash flow perspective, if you knock out capital intensity, you look at overall free cash flow margin, it's still very, very strong at that level. Slide 7 provides additional perspective on our bookings growth. Got it. Our execution on the sales front has been very consistent, right? So what's really been occurring is because of hyper competition within the public cloud providers and extreme specialization now occurring within the customers' environment, they're very particular in which types of cloud environments that they want. 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