Rackspace Technology executive Amar Maurya recently sold a portion of his company shares as part of a strategy to cover tax obligations related to the vesting of restricted stock units. Despite this transaction, Maurya still retains ownership of over 2.3 million shares in the company.
Additionally, Rackspace Technology has surpassed its revenue, profit, and earnings per share guidance for the ninth consecutive quarter. The company reported a GAAP revenue of $676 million and a non-GAAP operating profit of $34 million. The Private Cloud services have shown growth for the first time in several years, and bookings, especially in the Public Cloud division, have displayed positive trends for three consecutive quarters.
BMO Capital Markets has upgraded its Market Perform rating on Rackspace shares, increasing the price target to $3.50 from $2.50 following the company’s recent strong performance. Rackspace’s Private Cloud GAAP revenue reached $258 million, and Public Cloud revenue was $418 million. The company predicts a 30% year-over-year revenue increase in its healthcare Private Cloud business by fiscal 2024.
Looking ahead, Rackspace anticipates GAAP revenue for the fourth quarter to be between $668 million and $680 million, with a non-GAAP operating profit between $34 million and $36 million. BMO Capital’s analysis indicates that Rackspace’s recent bookings performance signals a positive trajectory for future revenue, but sustained performance over multiple quarters will be needed for significant top-line growth. These developments highlight Rackspace’s current success and future potential in the market.
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