Cloud-services provider Rackspace Technology Inc. shares fell sharply in extended trading even after Chief Executive Kevin Jones said Thursday that the company’s fourth quarter “capped off a fantastic year,” during which bookings and revenue grew.
Rackspace RXT,
The San Antonio, Texas-based company reported a fourth-quarter loss of $64 million, or 32 cents a share, compared with a loss of $47 million, or 28 cents a share, in the year-ago period. Adjusted earnings were 26 cents a share, adjusted for stock-based compensation, bonuses and more. Revenue rose to $716 million from $627 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 23 cents a share on revenue of $705 million.
For the full fiscal year, Rackspace lost $246 million, or $1.37 a share, compared with a loss of $102 million, or 62 cents a share in 2019. Adjusted earnings were 83 cents a share, adjusted for deferred income taxes, stock-based compensation and more. Revenue rose to $2.7 billion, up 11% from 2019 revenue of $2.44 billion. Analysts had expected earnings of 80 cents a share on revenue of $2.7 billion.
Rackspace said it expects full-year fiscal 2021 non-GAAP earnings of 95 cents to $1.05 a share on revenue of $2.9 billion to $3.1 billion.
The first draft of this story had incorrect fourth-quarter and full-year estimates.
