Rackspace reports solid Q1 results with double-digit revenue growth

Rackspace's top- and bottom-line results were slightly ahead of estimates

Rackspace on Monday reported first quarter financial results slightly ahead of estimates. The company attributed its solid revenue growth to new customer acquisitions and growing sales in its Multicloud Services and Apps & Cross Platform segments. 

Rackspace's non-GAAP earnings per share came to 23 cents on revenue of $726 million, up 11 percent year-over-year.

Analysts were expecting earnings of 21 cents per share on revenue of $724.08 million. 

First quarter revenue from Rackspace's Core Segments, comprised of Multicloud Services and Apps & Cross Platform, increased 15 percent year-over-year.

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Bookings in Q1 were $244 million, an increase of 6 percent.  

In a statement, CEO Kevin Jones said the company is positioned for "consistent ongoing growth and earnings leverage." 

"The new customers we landed in 2019 and 2020 provide a strong growth foundation, and the continued tectonic shift of workloads to the cloud will provide secular tailwinds for years to come," he said. "Our new market positioning as the un-GSI, as well as the new service offerings we've introduced in 2021, position Rackspace Technology as the clear partner of choice for companies that want to migrate their business to the cloud. We are already seeing significant traction in the market for these initiatives."

For the second quarter of 2021, Rackspace is expecting revenue between $735 million and $745 million.