Rackspace Technology announced financial results for the third quarter. The company’s revenue in the quarter was $763 million, an increase of 12% to revenue of the same quarter of the previous year. The company stated that new customer acquisitions impacted the revenue and growing customer spend in the Multicloud Services and Apps & Cross-Platform segments.
12% increase year-over-year
Rackspace’s third-quarter revenue from its Core Segments, which includes Multicloud Services and Apps & Cross-Platform, was increased by 15% on an actual basis and 14% on a constant currency basis. Bookins decreased by 36% year-over-year to $200 million in the quarter. The company stated that they expect to achieve its $1 billion bookings target for the fiscal year.
Rackspace’s net loss was $35 million, compared to a net loss of $101 million in the previous year’s third quarter, and net loss per diluted share was $0.17 compared to $0.54. Kevin Jones, Chief Executive Officer of Rackspace Technology, said,
«The Cloud market continues to grow and momentum continues to accelerate. Companies of all sizes need help with their move to the cloud. And as a leading pure-play cloud services company, Rackspace Technology is poised to be their partner of choice for all things cloud, wherever they are in their journey.
In the third quarter, revenue, Core Revenue, Non-GAAP Operating Profit and Non-GAAP EPS all grew at a healthy year-over-year clip. We delivered strong operating cash flow of over $100 million for the third quarter in a row. And we also continued to introduce timely new product and service offerings that help our customers get the most out of their cloud investment. Our new Elastic Engineering model is gaining fast adoption and was expanded to several new areas. And we are very excited about the launch of Rackspace Data Freedom, a new storage service based on robust Rackspace-developed technology that helps customers manage their costs across multiple cloud platforms.”