Rackspace Reports 11% Increase in Revenues in 2020, Posts $246M Loss

Revenue was $2,707 million in 2020 for Rackspace Technology, an increase of 11% as compared to revenue of $2,438 million in 2019. Revenue for full year 2020 was positively impacted by the acquisition of Onica in November 2019 as well as new customer acquisitions and growing customer spend in their Multicloud Services and Apps & Cross Platform segments.

Net loss was $246 million in 2020, compared to net loss of $102 million in 2019.

Adjusted EBITDA was $763 million in 2020, an increase of 3% as compared to Adjusted EBITDA of $743 million in 2019.

Bookings for Rackspace Technology were $1,126 million in 2020, an increase of 61% as compared to Bookings of $701 million in 2019.

Rackspace reported fourth quarter revenue of $716 million, up 14% Year-over-Year. Fourth Quarter Bookings came down to $293 million, an increase of 27% Year-over-Year. Net loss in the fourth quarter was $64 million.

Multicloud Services

Photo Kevin Jones, CEO of Rackspace
“Our success in energizing sales bookings in 2020 continues to drive-double digit revenue growth,” said Kevin Jones, CEO of Rackspace.

“The fourth quarter capped off a fantastic year for Rackspace Technology,” said Kevin Jones, Chief Executive Officer (CEO) of 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.”

“We believe Rackspace Technology is extremely well positioned to capitalize on the tectonic shift to the cloud,” added Mr. Jones. “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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