Revenue Managed Hosting Firm Rackspace Up 4% in Q2, Losses Mount

Rackspace managed cloud

In the second quarter of 2022, revenue for managed hosting and multi-cloud technology provider Rackspace increased by 4% Year-over-Year (YoY) to $772 million. Rackspace’s second quarter of 2022 saw a net loss of $41 million, compared to the second quarter of 2021’s net loss of $37 million.

The addition of new customers and rising customer spending in Rackspace’s Multicloud Services and Apps & Cross Platform segments helped to boost revenue for the second quarter of 2022.

Kevin Jones, CEO at Rackspace Technology
We continue to benefit from secular tailwinds in the cloud market, which show no signs of abating,” said Kevin Jones, CEO at Rackspace Technology.

“The second quarter financial results demonstrated solid growth and profitability for our business, as well as robust cash flow. We continue to benefit from secular tailwinds in the cloud market, which show no signs of abating,” said Kevin Jones, Chief Executive Officer (CEO) at Rackspace Technology. “Last quarter we previewed changes we are executing in our business, including aligning and repositioning the company to better capitalize on the immense market opportunity we see today. As we’ve met with customers, partners, and other stakeholders to preview these changes we have received very positive feedback. We are nearing the point where we can provide additional details on our go-forward game plan, including any additional decisions regarding the structure of the company, later this fall.”

Selling off Business Units

Earlier this year, Rackspace Technology divided its business into two main areas of focus: Public Cloud, next to Private Cloud and Managed Hosting.

Previously, Rackspace Technology was an infrastructure provider focused on delivering Infrastructure as a Service (IaaS) solutions. In recent years, Rackspace has expanded its offerings to include multi-cloud managed hosting (MSP) services, which includes services delivered by hyperscalers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform.

In spring this year, there were signs that Rackspace Technology as a whole, or perhaps parts of it, would be up for sale. Based on a statement by Rackspace CEO Kevin Jones, it seemed as though Rackspace was considering selling off business units after conducting a strategic evaluation of the business. At this time, there appears to be no such plans to put the business or parts of it up for sale.