Rackspace Technology Inc

For the period ended Mar 31, 2024. Filed May 15, 2024.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed May 15, 2024

RXT$2.72+7.5%Stored close · as of Nov 9, 2026

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Contents

Item 1. Unaudited Condensed Consolidated Balance Sheets as of December 31, 2023 and March 31, 2024

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except per share data)	December 31,2023	March 31,2024
ASSETS
Current assets:
Cash and cash equivalents	$196.8	$282.6
Accounts receivable, net of allowance for credit losses and accrued customer credits of $20.1 and $20.3, respectively	339.7	303.3
Prepaid expenses	87.4	111.1
Other current assets	114.2	91.3
Total current assets	738.1	788.3
Property, equipment and software, net	608.8	617.0
Goodwill, net	1,452.4	877.7
Intangible assets, net	1,019.0	960.2
Operating right-of-use assets	126.3	119.8
Other non-current assets	151.6	153.0
Total assets	$4,096.2	$3,516.0
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued expenses	$432.7	$410.2
Accrued compensation and benefits	72.2	64.0
Deferred revenue	78.8	78.7
Debt	23.0	20.3
Accrued interest	20.5	13.3
Operating lease liabilities	66.0	59.9
Finance lease liabilities	55.8	49.3
Financing obligations	14.0	17.2
Other current liabilities	36.5	41.0
Total current liabilities	799.5	753.9
Non-current liabilities:
Debt	2,839.6	2,974.4
Operating lease liabilities	74.6	69.5
Finance lease liabilities	308.0	295.6
Financing obligations	52.4	45.7
Deferred income taxes	79.2	59.3
Other non-current liabilities	97.4	104.8
Total liabilities	4,250.7	4,303.2
Commitments and Contingencies (Note 8)
Stockholders' deficit:
Preferred stock, $0.01 par value per share: 5.0 shares authorized; no shares issued or outstanding	—	—
Common stock, $0.01 par value per share: 1,495.0 shares authorized; 220.5 and 226.6 shares issued; 217.4 and 223.5 shares outstanding, respectively	2.2	2.3
Additional paid-in capital	2,638.2	2,647.7
Accumulated other comprehensive income	60.3	58.6
Accumulated deficit	(2,824.2)	(3,464.8)
Treasury stock, at cost; 3.1 shares held	(31.0)	(31.0)
Total stockholders' deficit	(154.5)	(787.2)
Total liabilities and stockholders' deficit	$4,096.2	$3,516.0

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

	Three Months Ended March 31,
(In millions, except per share data)	2023	2024
Revenue	$758.7	$690.8
Cost of revenue	(589.1)	(558.0)
Gross profit	169.6	132.8
Selling, general and administrative expenses	(207.5)	(192.4)
Impairment of goodwill	(543.1)	(573.2)
Impairment of assets, net	—	(20.0)
Loss from operations	(581.0)	(652.8)
Other income (expense):
Interest expense	(56.9)	(43.7)
Gain on investments, net	0.1	0.1
Debt modification costs and gain on debt extinguishment	12.8	56.7
Other income (expense), net	2.1	(5.6)
Total other income (expense)	(41.9)	7.5
Loss before income taxes	(622.9)	(645.3)
Benefit for income taxes	10.9	4.7
Net loss	$(612.0)	$(640.6)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	$3.4	$(3.7)
Unrealized gain (loss) on derivative contracts	(5.6)	13.1
Amount reclassified from accumulated other comprehensive income (loss) to earnings	(5.6)	(11.1)
Other comprehensive loss	(7.8)	(1.7)
Comprehensive loss	$(619.8)	$(642.3)
Net loss per share:
Basic and diluted	$(2.87)	$(2.91)
Weighted average number of shares outstanding:
Basic and diluted	213.2	219.8

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