Rackspace Technology Inc
For the period ended Jun 30, 2024. Filed Aug 9, 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.
Jun 30, 2024 · Filed Aug 9, 2024
RXT$2.72+7.5%Stored close · as of Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 1. Unaudited Condensed Consolidated Balance Sheets as of December 31, 2023 and June 30, 2024
CONDENSED CONSOLIDATED BALANCE SHEETS
| (In millions, except per share data) | December 31,2023 | June 30,2024 |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $196.8 | $190.2 |
| Accounts receivable, net of allowance for credit losses and accrued customer credits of $20.1 and $25.8, respectively | 339.7 | 322.8 |
| Prepaid expenses | 87.4 | 86.6 |
| Other current assets | 114.2 | 96.7 |
| Total current assets | 738.1 | 696.3 |
| Property, equipment and software, net | 608.8 | 612.2 |
| Goodwill, net | 1,452.4 | 877.7 |
| Intangible assets, net | 1,019.0 | 921.5 |
| Operating right-of-use assets | 126.3 | 144.4 |
| Other non-current assets | 151.6 | 141.6 |
| Total assets | $4,096.2 | $3,393.7 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $432.7 | $401.9 |
| Accrued compensation and benefits | 72.2 | 72.3 |
| Deferred revenue | 78.8 | 72.5 |
| Debt | 23.0 | 54.0 |
| Accrued interest | 20.5 | 8.3 |
| Operating lease liabilities | 66.0 | 58.7 |
| Finance lease liabilities | 55.8 | 50.8 |
| Financing obligations | 14.0 | 16.9 |
| Other current liabilities | 36.5 | 36.0 |
| Total current liabilities | 799.5 | 771.4 |
| Non-current liabilities: | ||
| Debt | 2,839.6 | 2,816.0 |
| Operating lease liabilities | 74.6 | 90.3 |
| Finance lease liabilities | 308.0 | 295.0 |
| Financing obligations | 52.4 | 41.3 |
| Deferred income taxes | 79.2 | 35.6 |
| Other non-current liabilities | 97.4 | 100.3 |
| Total liabilities | 4,250.7 | 4,149.9 |
| 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 228.7 shares issued; 217.4 and 225.6 shares outstanding, respectively | 2.2 | 2.3 |
| Additional paid-in capital | 2,638.2 | 2,661.1 |
| Accumulated other comprehensive income | 60.3 | 51.2 |
| Accumulated deficit | (2,824.2) | (3,439.8) |
| Treasury stock, at cost; 3.1 shares held | (31.0) | (31.0) |
| Total stockholders' deficit | (154.5) | (756.2) |
| Total liabilities and stockholders' deficit | $4,096.2 | $3,393.7 |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (In millions, except per share data) | 2023 | 2024 | 2023 | 2024 |
| Revenue | $746.3 | $684.9 | $1,505.0 | $1,375.7 |
| Cost of revenue | (593.2) | (553.5) | (1,182.3) | (1,111.5) |
| Gross profit | 153.1 | 131.4 | 322.7 | 264.2 |
| Selling, general and administrative expenses | (216.9) | (185.2) | (424.4) | (377.6) |
| Impairment of goodwill | — | — | (543.1) | (573.2) |
| Impairment of assets, net | — | — | — | (20.0) |
| Loss from operations | (63.8) | (53.8) | (644.8) | (706.6) |
| Other income (expense): | ||||
| Interest expense | (57.3) | (18.4) | (114.2) | (62.1) |
| Gain on investments, net | 0.1 | — | 0.2 | 0.1 |
| Debt modification costs and gain on debt extinguishment | 94.9 | 72.5 | 107.7 | 129.2 |
| Other income (expense), net | 0.2 | (5.2) | 2.3 | (10.8) |
| Total other income (expense) | 37.9 | 48.9 | (4.0) | 56.4 |
| Loss before income taxes | (25.9) | (4.9) | (648.8) | (650.2) |
| Benefit (provision) for income taxes | (1.3) | 29.9 | 9.6 | 34.6 |
| Net income (loss) | $(27.2) | $25.0 | $(639.2) | $(615.6) |
| Other comprehensive income (loss), net of tax | ||||
| Foreign currency translation adjustments | $2.8 | $(0.8) | $6.2 | $(4.5) |
| Unrealized gain on derivative contracts | 19.3 | 4.5 | 13.7 | 17.6 |
| Amount reclassified from accumulated other comprehensive income (loss) to earnings | (6.8) | (11.1) | (12.4) | (22.2) |
| Other comprehensive income (loss) | 15.3 | (7.4) | 7.5 | (9.1) |
| Comprehensive income (loss) | $(11.9) | $17.6 | $(631.7) | $(624.7) |
| Net earnings (loss) per share: | ||||
| Basic | $(0.13) | $0.11 | $(2.98) | $(2.77) |
| Diluted | $(0.13) | $0.11 | $(2.98) | $(2.77) |
| Weighted average number of shares outstanding: | ||||
| Basic | 215.1 | 224.5 | 214.2 | 222.2 |
| Diluted | 215.1 | 229.6 | 214.2 | 222.2 |
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