Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end,
hybrid, multicloud, and AI solutions company, today announced
results for its third quarter ended September 30, 2024.
Amar Maletira, Chief Executive Officer, stated, “Our
third-quarter results exceeded the midpoint of our guidance for
revenue, operating profit, and EPS. Bookings grew double digits
with Public Cloud posting a record bookings quarter since the
formation of the two business units. I’m pleased with the steady
progress we are making in both the businesses on multiple
fronts.”
Third Quarter 2024 Results
Revenue was $676 million in the third quarter of 2024, a
decrease of 8% on a reported and constant currency basis as
compared to revenue of $732 million in the third quarter of
2023.
Private Cloud revenue was $258 million in the third quarter of
2024, a decrease of 14% on a reported basis and 15% on a constant
currency basis as compared to revenue of $301 million in the third
quarter of 2023.
Public Cloud revenue was $418 million in the third quarter of
2024, a decrease of 3% on a reported and constant currency basis
compared to revenue of $432 million in the third quarter of
2023.
Loss from operations was $(174) million in the third quarter of
2024, compared to loss from operations of $(239) million in the
third quarter of 2023.
Net loss was $(187) million in the third quarter of 2024,
compared to net loss of $(227) million in the third quarter of
2023.
Net loss per diluted share was $(0.82) in the third quarter of
2024, compared to net loss per diluted share of $(1.05) in the
third quarter of 2023.
Non-GAAP Operating Profit was $34 million in the third quarter
of 2024, a decrease of 25% compared to $46 million in the third
quarter of 2023.
Non-GAAP Loss Per Share was $(0.04) in the both the third
quarter of 2024 and 2023.
Capital expenditures were $31 million in the third quarter of
2024, compared to $28 million in the third quarter of 2023.
As of September 30, 2024, we had cash and cash equivalents
of $157 million with no balance outstanding on our New Revolving
Credit Facility ($375 million of undrawn commitments).
Financial Outlook
Rackspace Technology is providing guidance as follows:
|
|
Q4 2024 Guidance |
|
Total Revenue |
$668 - $680 million |
|
|
Private Cloud Revenue |
$258 - $264 million |
|
|
Public Cloud Revenue |
$410 - $416 million |
|
|
Non-GAAP Operating Profit |
$34 - $36 million |
|
|
Non-GAAP Loss Per Share |
$(0.03) - $(0.05) |
|
|
Non-GAAP Other Income (Expense) |
$(47) – $(51) million |
|
|
Non-GAAP Tax Expense Rate |
26 |
% |
|
Non-GAAP Weighted Average Shares |
240 million |
|
| |
|
Information about Rackspace Technology’s use of non-GAAP
financial measures is provided below under “Non-GAAP Financial
Measures”.
Definitions of non-GAAP financial measures and the
reconciliations to the most directly comparable measures in
accordance with generally accepted accounting principles in the
United States (“GAAP”) are provided in subsequent sections of this
press release narrative and supplemental schedules. Rackspace
Technology has not reconciled Non-GAAP Operating Profit, Non-GAAP
Loss Per Share, Non-GAAP Other Income (Expense) or Non-GAAP Tax
Expense Rate guidance to the most directly comparable GAAP measure
because it does not provide guidance on GAAP net income (loss) or
the reconciling items between these Non-GAAP measures and GAAP net
income (loss) as a result of the uncertainty regarding, and the
potential variability of, certain of these items, such as
share-based compensation expense. Accordingly, a reconciliation of
the non-GAAP financial measure guidance to the corresponding GAAP
measure is not available without unreasonable effort. With respect
to Non-GAAP Operating Profit, Non-GAAP Loss Per Share, Non-GAAP
Other Income (Expense) and Non-GAAP Tax Expense Rate guidance,
adjustments in future periods are generally expected to be similar
to the kinds of charges and costs excluded from these Non-GAAP
measures in prior periods, but the impact of such adjustments could
be significant.
Conference Call and Webcast
Rackspace Technology will hold a conference call today, November
12, 2024, at 4:00pm CT / 5:00pm ET to discuss its third quarter
2024 results. Interested parties may access the conference call as
follows:
To listen to the live webcast or access the replay following the
webcast, please visit our IR website at the following link:
https://ir.rackspace.com/news-and-events/events-and-presentations.
To obtain a dial-in number, please pre-register at the following
link:
https://register.vevent.com/register/BI6a615cf19559421fb574530f157e778cRegistrants
will receive dial-in information and a PIN allowing them to access
the live call.
About Rackspace Technology
Rackspace Technology is a leading end-to-end, hybrid,
multicloud, and AI solutions company. We can design, build, and
operate our customers’ cloud environments across all major
technology platforms, irrespective of technology stack or
deployment model. We partner with our customers at every stage of
their cloud journey, enabling them to modernize applications, build
new products, and adopt innovative technologies.
Forward-looking Statements
Rackspace Technology has made statements in this press release
and other reports, filings, and other public written and verbal
announcements that are forward-looking and therefore subject to
risks and uncertainties. All statements, other than statements of
historical fact, included in this press release are, or could be,
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and are made in reliance
on the safe harbor protections provided thereunder. These
forward-looking statements relate to anticipated financial
performance, management’s plans and objectives for future
operations, business prospects, outcome of regulatory proceedings,
market conditions, and other matters. Any forward-looking statement
made in this press release speaks only as of the date on which it
is made. We undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future developments or otherwise. Forward-looking
statements can be identified by various words such as “expects,”
“intends,” “will,” “anticipates,” “believes,” “confident,”
“continue,” “propose,” “seeks,” “could,” “may,” “should,”
“estimates,” “forecasts,” “might,” “goals,” “objectives,”
“targets,” “planned,” “projects,” and similar expressions. These
forward-looking statements are based on management’s current
beliefs and assumptions and on information currently available to
management. Rackspace Technology cautions that these statements are
subject to risks and uncertainties, many of which are outside of
our control, and could cause future events or results to be
materially different from those stated or implied in this press
release, including among others, risk factors that are described in
Rackspace Technology, Inc.’s Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K, and other
filings with the Securities and Exchange Commission, including the
sections entitled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations”
contained therein.
Non-GAAP Financial Measures
This press release includes several non-GAAP financial measures
such as constant currency revenue, Non-GAAP Gross Profit, Non-GAAP
Net Income (Loss), Non-GAAP Operating Profit, Adjusted EBITDA and
Non-GAAP Earnings (Loss) Per Share. These non-GAAP financial
measures exclude the impact of certain costs, losses and gains that
are required to be included in our profit and loss measures under
GAAP. Although we believe these measures are useful to investors
and analysts for the same reasons they are useful to management, as
described in the accompanying pages, these measures are not a
substitute for, or superior to, GAAP financial measures or
disclosures. Other companies may calculate similarly-titled
non-GAAP measures differently, limiting their usefulness as
comparative measures. We have reconciled each of these non-GAAP
measures to the applicable most comparable GAAP measure in the
accompanying pages.
IR ContactSagar HebbarRackspace Technology
Investor Relationsir@rackspace.com
PR ContactNatalie SilvaRackspace Technology
Corporate Communicationspublicrelations@rackspace.com
|
RACKSPACE TECHNOLOGY, INC.CONSOLIDATED
RESULTS OF OPERATIONS(Unaudited) |
| |
| |
Three Months Ended September 30, |
|
Year-Over-YearComparison |
| |
|
2023 |
|
|
|
2024 |
|
|
| (In millions, except % and per
share data) |
Amount |
|
% Revenue |
|
Amount |
|
% Revenue |
|
Amount |
|
% Change |
|
Revenue |
$ |
732.4 |
|
|
100.0 |
% |
|
$ |
675.8 |
|
|
100.0 |
% |
|
$ |
(56.6 |
) |
|
(7.7 |
)% |
| Cost of revenue |
|
(580.4 |
) |
|
(79.2 |
)% |
|
|
(538.3 |
) |
|
(79.6 |
)% |
|
|
42.1 |
|
|
(7.3 |
)% |
|
Gross profit |
|
152.0 |
|
|
20.8 |
% |
|
|
137.5 |
|
|
20.4 |
% |
|
|
(14.5 |
) |
|
(9.5 |
)% |
| Selling,
general and administrative expenses |
|
(177.3 |
) |
|
(24.2 |
)% |
|
|
(169.5 |
) |
|
(25.1 |
)% |
|
|
7.8 |
|
|
(4.4 |
)% |
| Impairment of goodwill |
|
(165.7 |
) |
|
(22.6 |
)% |
|
|
(141.7 |
) |
|
(21.0 |
)% |
|
|
24.0 |
|
|
(14.5 |
)% |
| Impairment of assets, net |
|
(48.4 |
) |
|
(6.6 |
)% |
|
|
— |
|
|
— |
% |
|
|
48.4 |
|
|
(100.0 |
)% |
|
Loss from operations |
|
(239.4 |
) |
|
(32.7 |
)% |
|
|
(173.7 |
) |
|
(25.7 |
)% |
|
|
65.7 |
|
|
(27.4 |
)% |
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(56.5 |
) |
|
(7.7 |
)% |
|
|
(18.0 |
) |
|
(2.7 |
)% |
|
|
38.5 |
|
|
(68.1 |
)% |
|
Gain on investments, net |
|
— |
|
|
— |
% |
|
|
0.1 |
|
|
0.0 |
% |
|
|
0.1 |
|
|
100.0 |
% |
|
Debt modification costs and gain on debt extinguishment |
|
55.4 |
|
|
7.6 |
% |
|
|
18.0 |
|
|
2.7 |
% |
|
|
(37.4 |
) |
|
(67.5 |
)% |
|
Other expense, net |
|
(2.6 |
) |
|
(0.4 |
)% |
|
|
(1.0 |
) |
|
(0.2 |
)% |
|
|
1.6 |
|
|
(61.5 |
)% |
|
Total other income (expense) |
|
(3.7 |
) |
|
(0.5 |
)% |
|
|
(0.9 |
) |
|
(0.1 |
)% |
|
|
2.8 |
|
|
(75.7 |
)% |
|
Loss before income taxes |
|
(243.1 |
) |
|
(33.2 |
)% |
|
|
(174.6 |
) |
|
(25.8 |
)% |
|
|
68.5 |
|
|
(28.2 |
)% |
| Benefit (provision) for income
taxes |
|
16.5 |
|
|
2.3 |
% |
|
|
(12.0 |
) |
|
(1.8 |
)% |
|
|
(28.5 |
) |
|
NM |
|
|
Net loss |
$ |
(226.6 |
) |
|
(30.9 |
)% |
|
$ |
(186.6 |
) |
|
(27.6 |
)% |
|
$ |
40.0 |
|
|
(17.7 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(1.05 |
) |
|
|
|
$ |
(0.82 |
) |
|
|
|
|
|
|
| Weighted average number of
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
216.0 |
|
|
|
|
|
226.4 |
|
|
|
|
|
|
|
NM = not meaningful.
|
RACKSPACE TECHNOLOGY, INC.CONSOLIDATED
RESULTS OF OPERATIONS(Unaudited) |
| |
| |
Nine Months Ended September 30, |
|
Year-Over-YearComparison |
| |
|
2023 |
|
|
|
2024 |
|
|
| (In millions, except % and per
share data) |
Amount |
|
% Revenue |
|
Amount |
|
% Revenue |
|
Amount |
|
% Change |
|
Revenue |
$ |
2,237.4 |
|
|
100.0 |
% |
|
$ |
2,051.5 |
|
|
100.0 |
% |
|
$ |
(185.9 |
) |
|
(8.3 |
)% |
| Cost of revenue |
|
(1,762.7 |
) |
|
(78.8 |
)% |
|
|
(1,649.8 |
) |
|
(80.4 |
)% |
|
|
112.9 |
|
|
(6.4 |
)% |
|
Gross profit |
|
474.7 |
|
|
21.2 |
% |
|
|
401.7 |
|
|
19.6 |
% |
|
|
(73.0 |
) |
|
(15.4 |
)% |
| Selling,
general and administrative expenses |
|
(601.7 |
) |
|
(26.9 |
)% |
|
|
(547.1 |
) |
|
(26.7 |
)% |
|
|
54.6 |
|
|
(9.1 |
)% |
| Impairment of goodwill |
|
(708.8 |
) |
|
(31.7 |
)% |
|
|
(714.9 |
) |
|
(34.8 |
)% |
|
|
(6.1 |
) |
|
0.9 |
% |
| Impairment of assets, net |
|
(48.4 |
) |
|
(2.2 |
)% |
|
|
(20.0 |
) |
|
(1.0 |
)% |
|
|
28.4 |
|
|
(58.7 |
)% |
|
Loss from operations |
|
(884.2 |
) |
|
(39.5 |
)% |
|
|
(880.3 |
) |
|
(42.9 |
)% |
|
|
3.9 |
|
|
(0.4 |
)% |
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(170.7 |
) |
|
(7.6 |
)% |
|
|
(80.1 |
) |
|
(3.9 |
)% |
|
|
90.6 |
|
|
(53.1 |
)% |
|
Gain on investments, net |
|
0.2 |
|
|
0.0 |
% |
|
|
0.2 |
|
|
0.0 |
% |
|
|
— |
|
|
— |
% |
|
Debt modification costs and gain on debt extinguishment |
|
163.1 |
|
|
7.3 |
% |
|
|
147.2 |
|
|
7.2 |
% |
|
|
(15.9 |
) |
|
(9.7 |
)% |
|
Other expense, net |
|
(0.3 |
) |
|
(0.0 |
)% |
|
|
(11.8 |
) |
|
(0.6 |
)% |
|
|
(11.5 |
) |
|
NM |
|
|
Total other income (expense) |
|
(7.7 |
) |
|
(0.3 |
)% |
|
|
55.5 |
|
|
2.7 |
% |
|
|
63.2 |
|
|
NM |
|
|
Loss before income taxes |
|
(891.9 |
) |
|
(39.9 |
)% |
|
|
(824.8 |
) |
|
(40.2 |
)% |
|
|
67.1 |
|
|
(7.5 |
)% |
| Benefit for income taxes |
|
26.1 |
|
|
1.2 |
% |
|
|
22.6 |
|
|
1.1 |
% |
|
|
(3.5 |
) |
|
(13.4 |
)% |
|
Net loss |
$ |
(865.8 |
) |
|
(38.7 |
)% |
|
$ |
(802.2 |
) |
|
(39.1 |
)% |
|
$ |
63.6 |
|
|
(7.3 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(4.03 |
) |
|
|
|
$ |
(3.59 |
) |
|
|
|
|
|
|
| Weighted average number of
shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
214.8 |
|
|
|
|
|
223.6 |
|
|
|
|
|
|
|
NM = not meaningful.
|
RACKSPACE TECHNOLOGY, INC.CONSOLIDATED
BALANCE SHEETS(Unaudited) |
| |
| (In millions, except per share
data) |
December 31, 2023 |
|
September 30, 2024 |
| ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
196.8 |
|
|
$ |
157.1 |
|
|
Accounts receivable, net allowance for credit losses and accrued
customer credits of $20.1 and $23.3, respectively |
|
339.7 |
|
|
|
311.8 |
|
|
Prepaid expenses |
|
87.4 |
|
|
|
95.4 |
|
|
Other current assets |
|
114.2 |
|
|
|
84.4 |
|
|
Total current assets |
|
738.1 |
|
|
|
648.7 |
|
| |
|
|
|
|
Property, equipment and software, net |
|
608.8 |
|
|
|
616.3 |
|
|
Goodwill, net |
|
1,452.4 |
|
|
|
739.7 |
|
|
Intangible assets, net |
|
1,019.0 |
|
|
|
883.4 |
|
|
Operating right-of-use assets |
|
126.3 |
|
|
|
139.4 |
|
|
Other non-current assets |
|
151.6 |
|
|
|
118.3 |
|
|
Total assets |
$ |
4,096.2 |
|
|
$ |
3,145.8 |
|
| |
|
|
|
| LIABILITIES AND
STOCKHOLDERS' DEFICIT |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ |
432.7 |
|
|
$ |
407.9 |
|
|
Accrued compensation and benefits |
|
72.2 |
|
|
|
94.2 |
|
|
Deferred revenue |
|
78.8 |
|
|
|
68.8 |
|
|
Debt |
|
23.0 |
|
|
|
27.1 |
|
|
Accrued interest |
|
20.5 |
|
|
|
8.1 |
|
|
Operating lease liabilities |
|
66.0 |
|
|
|
55.8 |
|
|
Finance lease liabilities |
|
55.8 |
|
|
|
50.5 |
|
|
Financing obligations |
|
14.0 |
|
|
|
16.3 |
|
|
Other current liabilities |
|
36.5 |
|
|
|
40.2 |
|
|
Total current liabilities |
|
799.5 |
|
|
|
768.9 |
|
| |
|
|
|
|
Non-current liabilities: |
|
|
|
|
Debt |
|
2,839.6 |
|
|
|
2,782.4 |
|
|
Operating lease liabilities |
|
74.6 |
|
|
|
86.3 |
|
|
Finance lease liabilities |
|
308.0 |
|
|
|
294.3 |
|
|
Financing obligations |
|
52.4 |
|
|
|
39.5 |
|
|
Deferred income taxes |
|
79.2 |
|
|
|
26.0 |
|
|
Other non-current liabilities |
|
97.4 |
|
|
|
98.1 |
|
|
Total liabilities |
|
4,250.7 |
|
|
|
4,095.5 |
|
| |
|
|
|
|
Commitments and Contingencies |
|
|
|
| |
|
|
|
|
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 230.7 shares issued; 217.4 and 227.6 shares outstanding,
respectively |
|
2.2 |
|
|
|
2.3 |
|
|
Additional paid-in capital |
|
2,638.2 |
|
|
|
2,672.0 |
|
|
Accumulated other comprehensive income |
|
60.3 |
|
|
|
33.4 |
|
|
Accumulated deficit |
|
(2,824.2 |
) |
|
|
(3,626.4 |
) |
|
Treasury stock, at cost; 3.1 shares held |
|
(31.0 |
) |
|
|
(31.0 |
) |
|
Total stockholders' deficit |
|
(154.5 |
) |
|
|
(949.7 |
) |
|
Total liabilities and stockholders' deficit |
$ |
4,096.2 |
|
|
$ |
3,145.8 |
|
|
|
|
|
|
|
|
|
|
|
RACKSPACE TECHNOLOGY, INC.CONSOLIDATED
STATEMENTS OF CASH FLOWS(Unaudited) |
| |
| |
Nine Months Ended September 30, |
|
(In millions) |
|
2023 |
|
|
|
2024 |
|
| Cash Flows From
Operating Activities |
|
|
|
|
Net loss |
$ |
(865.8 |
) |
|
$ |
(802.2 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
282.5 |
|
|
|
222.0 |
|
|
Amortization of operating right-of-use assets |
|
57.9 |
|
|
|
51.4 |
|
|
Deferred income taxes |
|
(38.9 |
) |
|
|
(46.4 |
) |
|
Share-based compensation expense |
|
51.9 |
|
|
|
47.8 |
|
|
Impairment of goodwill |
|
708.8 |
|
|
|
714.9 |
|
|
Impairment of assets, net |
|
48.4 |
|
|
|
20.0 |
|
|
Debt modification costs and gain on debt extinguishment |
|
(163.1 |
) |
|
|
(147.2 |
) |
|
Unrealized loss on derivative contracts |
|
13.7 |
|
|
|
— |
|
|
Gain on investments, net |
|
(0.2 |
) |
|
|
(0.2 |
) |
|
Provision for bad debts and accrued customer credits |
|
5.1 |
|
|
|
11.3 |
|
|
Amortization of debt issuance costs and debt discount and
premium |
|
6.0 |
|
|
|
3.5 |
|
|
Third party fees paid in connection with the Refinancing
Transactions |
|
— |
|
|
|
(31.7 |
) |
|
Non-cash fair value adjustments |
|
(1.0 |
) |
|
|
(2.2 |
) |
|
Other operating activities |
|
0.3 |
|
|
|
(3.7 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
268.8 |
|
|
|
16.9 |
|
|
Prepaid expenses and other current assets |
|
23.1 |
|
|
|
(2.1 |
) |
|
Accounts payable, accrued expenses, and other current
liabilities |
|
(65.6 |
) |
|
|
(12.8 |
) |
|
Deferred revenue |
|
(1.5 |
) |
|
|
(13.1 |
) |
|
Operating lease liabilities |
|
(48.6 |
) |
|
|
(63.0 |
) |
|
Other non-current assets and liabilities |
|
20.9 |
|
|
|
22.4 |
|
|
Net cash provided by (used in) operating activities |
|
302.7 |
|
|
|
(14.4 |
) |
| Cash Flows From
Investing Activities |
|
|
|
|
Purchases of property, equipment and software |
|
(63.0 |
) |
|
|
(91.2 |
) |
|
Proceeds from sale of headquarters |
|
— |
|
|
|
16.9 |
|
|
Other investing activities |
|
0.7 |
|
|
|
5.4 |
|
|
Net cash used in investing activities |
|
(62.3 |
) |
|
|
(68.9 |
) |
| Cash Flows From
Financing Activities |
|
|
|
|
Proceeds from employee stock plans |
|
0.8 |
|
|
|
0.4 |
|
|
Shares of common stock withheld for employee taxes |
|
(1.0 |
) |
|
|
(4.3 |
) |
|
Proceeds from borrowings under long-term debt arrangements |
|
50.0 |
|
|
|
275.0 |
|
|
Payments on long-term debt |
|
(151.8 |
) |
|
|
(138.5 |
) |
|
Debt extinguishment costs |
|
— |
|
|
|
(22.1 |
) |
|
Payments on financing component of interest rate swap |
|
(14.3 |
) |
|
|
(13.0 |
) |
|
Principal payments of finance lease liabilities |
|
(60.3 |
) |
|
|
(44.0 |
) |
|
Principal payments of financing obligations |
|
(14.8 |
) |
|
|
(10.5 |
) |
|
Net cash provided by (used in) financing activities |
|
(191.4 |
) |
|
|
43.0 |
|
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
0.3 |
|
|
|
0.7 |
|
|
Increase (decrease) in cash, cash equivalents, and restricted
cash |
|
49.3 |
|
|
|
(39.6 |
) |
|
Cash, cash equivalents, and restricted cash at beginning of
period |
|
231.4 |
|
|
|
199.7 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
280.7 |
|
|
$ |
160.1 |
|
| Supplemental Cash Flow
Information |
|
|
|
|
Cash payments for interest, net of amount capitalized |
$ |
166.2 |
|
|
$ |
83.9 |
|
|
Cash payments for income taxes, net of refunds |
$ |
9.9 |
|
|
$ |
9.7 |
|
| |
|
|
|
| Non-cash Investing and
Financing Activities |
|
|
|
|
Acquisition of property, equipment and software by finance
leases |
$ |
67.4 |
|
|
$ |
22.0 |
|
|
Acquisition of property, equipment and software by financing
obligations |
|
8.5 |
|
|
|
— |
|
|
Increase (decrease) in property, equipment and software accrued in
liabilities |
|
4.9 |
|
|
|
(1.7 |
) |
|
Other non-cash activity |
|
— |
|
|
|
(2.1 |
) |
|
Non-cash purchases of property, equipment and software |
$ |
80.8 |
|
|
$ |
18.2 |
|
|
|
|
|
|
|
|
|
|
|
SEGMENT DATA |
| |
| (In millions, except %) |
Three Months Ended September 30, |
|
% Change |
|
Revenue by segment: |
|
2023 |
|
|
|
2024 |
|
|
|
Actual |
|
|
|
Constant Currency (a) |
|
| Public Cloud |
$ |
431.5 |
|
|
$ |
418.3 |
|
|
|
(3.1 |
)% |
|
|
(3.1 |
)% |
| Private Cloud |
|
300.9 |
|
|
|
257.5 |
|
|
|
(14.4 |
)% |
|
|
(14.7 |
)% |
|
Total consolidated revenue |
$ |
732.4 |
|
|
$ |
675.8 |
|
|
|
(7.7 |
)% |
|
|
(7.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In millions, except %) |
Nine Months Ended September 30, |
|
% Change |
|
Revenue by segment: |
|
2023 |
|
|
|
2024 |
|
|
|
Actual |
|
|
|
Constant Currency (a) |
|
| Public Cloud |
$ |
1,308.7 |
|
|
$ |
1,265.6 |
|
|
|
(3.3 |
)% |
|
|
(3.4 |
)% |
| Private Cloud |
|
928.7 |
|
|
|
785.9 |
|
|
|
(15.4 |
)% |
|
|
(15.8 |
)% |
|
Total consolidated revenue |
$ |
2,237.4 |
|
|
$ |
2,051.5 |
|
|
|
(8.3 |
)% |
|
|
(8.5 |
)% |
|
(a) |
|
Refer to "Non-GAAP Financial Measures" in this section for further
explanation and reconciliation. |
|
|
|
|
| |
Three Months Ended September 30, |
|
Year-Over-YearComparison |
| (In millions, except %) |
|
2023 |
|
|
|
2024 |
|
|
| Segment operating
profit (a): |
Amount |
|
% of Segment Revenue |
|
Amount |
|
% of Segment Revenue |
|
Amount |
|
% Change |
|
|
Public Cloud |
$ |
20.3 |
|
|
4.7 |
% |
|
$ |
16.4 |
|
|
3.9 |
% |
|
$ |
(3.9 |
) |
|
(19.2 |
)% |
| Private Cloud |
|
86.2 |
|
|
28.6 |
% |
|
|
74.5 |
|
|
28.9 |
% |
|
|
(11.7 |
) |
|
(13.6 |
)% |
| Corporate functions (b) |
|
(61.0 |
) |
|
|
|
|
(56.6 |
) |
|
|
|
|
4.4 |
|
|
(7.2 |
)% |
|
Non-GAAP Operating Profit (c) |
$ |
45.5 |
|
|
|
|
$ |
34.3 |
|
|
|
|
$ |
(11.2 |
) |
|
(24.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Nine Months Ended September 30, |
|
Year-Over-YearComparison |
| (In millions, except %) |
|
2023 |
|
|
|
2024 |
|
|
| Segment operating
profit (a): |
Amount |
|
% of Segment Revenue |
|
Amount |
|
% of Segment Revenue |
|
Amount |
|
% Change |
|
|
Public Cloud |
$ |
59.5 |
|
|
4.5 |
% |
|
$ |
37.5 |
|
|
3.0 |
% |
|
$ |
(22.0 |
) |
|
(37.0 |
)% |
| Private Cloud |
|
268.2 |
|
|
28.9 |
% |
|
|
215.9 |
|
|
27.5 |
% |
|
|
(52.3 |
) |
|
(19.5 |
)% |
| Corporate functions (b) |
|
(192.7 |
) |
|
|
|
|
(180.1 |
) |
|
|
|
|
12.6 |
|
|
(6.5 |
)% |
|
Non-GAAP Operating Profit (c) |
$ |
135.0 |
|
|
|
|
$ |
73.3 |
|
|
|
|
$ |
(61.7 |
) |
|
(45.7 |
)% |
| (a) |
|
Segment revenue less expenses
directly attributable to running the respective segments’ business.
These expenses exclude centralized corporate function costs. |
| (b) |
|
Costs that are not allocated to
segments. These costs are related to centralized corporate
functions that provide services to the segments in areas such as
accounting, information technology, marketing, legal and human
resources. |
| (c) |
|
Refer to "Non-GAAP Financial
Measures" in this section for further explanation and
reconciliation. |
| |
|
|
|
NON-GAAP FINANCIAL MEASURES |
|
|
Constant Currency Revenue
We use constant currency revenue as an additional metric for
understanding and assessing our growth excluding the effect of
foreign currency rate fluctuations on our international business
operations. Constant currency information compares results between
periods as if exchange rates had remained constant period over
period and is calculated by translating the non-U.S. dollar income
statement balances for the most current period to U.S. dollars
using the average exchange rate from the comparative period rather
than the actual exchange rates in effect during the respective
period. We also believe this is an important metric to help
investors evaluate our performance in comparison to prior
periods.
| |
Three Months EndedSeptember 30, 2023 |
|
Three Months EndedSeptember 30, 2024 |
|
% Change |
| (In millions, except %) |
Revenue |
|
Revenue |
|
Foreign Currency Translation (a) |
|
Revenue in Constant Currency |
|
Actual |
|
Constant Currency |
|
Public Cloud |
$ |
431.5 |
|
|
$ |
418.3 |
|
|
$ |
(0.3 |
) |
|
$ |
418.0 |
|
|
(3.1 |
)% |
|
(3.1 |
)% |
| Private Cloud |
|
300.9 |
|
|
|
257.5 |
|
|
|
(0.8 |
) |
|
|
256.7 |
|
|
(14.4 |
)% |
|
(14.7 |
)% |
|
Total |
$ |
732.4 |
|
|
$ |
675.8 |
|
|
$ |
(1.1 |
) |
|
$ |
674.7 |
|
|
(7.7 |
)% |
|
(7.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Nine Months EndedSeptember 30, 2023 |
|
Nine Months Ended September 30, 2024 |
|
% Change |
| (In millions, except %) |
Revenue |
|
Revenue |
|
Foreign Currency Translation (a) |
|
Revenue in Constant Currency |
|
Actual |
|
Constant Currency |
|
Public Cloud |
$ |
1,308.7 |
|
|
$ |
1,265.6 |
|
|
$ |
(1.0 |
) |
|
$ |
1,264.6 |
|
|
(3.3 |
)% |
|
(3.4 |
)% |
| Private Cloud |
|
928.7 |
|
|
|
785.9 |
|
|
|
(3.4 |
) |
|
|
782.5 |
|
|
(15.4 |
)% |
|
(15.8 |
)% |
|
Total |
$ |
2,237.4 |
|
|
$ |
2,051.5 |
|
|
$ |
(4.4 |
) |
|
$ |
2,047.1 |
|
|
(8.3 |
)% |
|
(8.5 |
)% |
| (a) |
|
The effect of foreign currency is calculated by translating
current period results using the average exchange rate from the
prior comparative period. |
| |
|
|
Non-GAAP Gross Profit
We present Non-GAAP Gross Profit because we believe the measure
is useful in analyzing trends in our underlying, recurring gross
margins. We define Non-GAAP Gross Profit as gross profit, adjusted
to exclude the impact of share-based compensation expense and other
non-recurring or unusual compensation items, purchase
accounting-related effects, certain business transformation-related
costs, and costs related to the Hosted Exchange incident.
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
(In millions) |
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
| Gross profit |
$ |
152.0 |
|
|
$ |
137.5 |
|
|
$ |
474.7 |
|
|
$ |
401.7 |
|
| Share-based compensation
expense |
|
2.0 |
|
|
|
2.0 |
|
|
|
7.4 |
|
|
|
5.9 |
|
| Special bonuses and other
compensation expense (a) |
|
1.2 |
|
|
|
0.7 |
|
|
|
3.3 |
|
|
|
2.6 |
|
| Purchase accounting impact on
expense (b) |
|
0.6 |
|
|
|
0.3 |
|
|
|
1.9 |
|
|
|
1.5 |
|
| Restructuring and
transformation expenses (c) |
|
6.2 |
|
|
|
2.6 |
|
|
|
16.0 |
|
|
|
11.8 |
|
| Hosted Exchange incident
expenses, net of proceeds received or expected to be received under
our insurance coverage |
|
— |
|
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
|
Non-GAAP Gross Profit |
$ |
162.0 |
|
|
$ |
143.1 |
|
|
$ |
503.6 |
|
|
$ |
423.5 |
|
| (a) |
|
Adjustments for retention
bonuses, mainly in connection with restructuring and transformation
projects, and the related payroll tax, and payroll taxes associated
with the exercise of stock options and vesting of restricted stock.
Beginning in the second quarter of 2023, includes expense related
to the one-time grant of long-term incentive bonuses as a component
of our annual compensation award process. |
| (b) |
|
Adjustment for the impact of
purchase accounting from the November 2016 merger on expenses. |
| (c) |
|
Adjustment for the impact of
business transformation and optimization activities, as well as
associated severance, certain facility closure costs and lease
termination expenses. |
Non-GAAP Net Income (Loss), Non-GAAP Operating Profit
and Adjusted EBITDA
We present Non-GAAP Net Income (Loss), Non-GAAP Operating Profit
and Adjusted EBITDA because they are a basis upon which management
assesses our performance and we believe they are useful to
evaluating our financial performance. We believe that excluding
items from net income that may not be indicative of, or are
unrelated to, our core operating results, and that may vary in
frequency or magnitude, enhances the comparability of our results
and provides a better baseline for analyzing trends in our
business.
We define Non-GAAP Net Income (Loss) as net income (loss)
adjusted to exclude the impact of non-cash charges for share-based
compensation, special bonuses and other compensation expense,
transaction-related costs and adjustments, restructuring and
transformation charges, costs related to the Hosted Exchange
incident, the amortization of acquired intangible assets, goodwill
and asset impairment charges, costs related to the closure of a UK
office, the interest expense impact from the debt Refinancing
Transactions, and certain other non-operating, non-recurring or
non-core gains and losses, as well as the tax effects of these
non-GAAP adjustments.
We define Non-GAAP Operating Profit as income (loss) from
operations adjusted to exclude the impact of non-cash charges for
share-based compensation, special bonuses and other compensation
expense, transaction-related costs and adjustments, restructuring
and transformation charges, costs related to the Hosted Exchange
incident, the amortization of acquired intangible assets, goodwill
and asset impairment charges, costs related to the closure of a UK
office, and certain other non-operating, non-recurring or non-core
gains and losses.
We define Adjusted EBITDA as net income (loss) adjusted to
exclude the impact of non-cash charges for share-based
compensation, special bonuses and other compensation expense,
transaction-related costs and adjustments, restructuring and
transformation charges, costs related to the Hosted Exchange
incident, costs related to the closure of a UK office, certain
other non-operating, non-recurring or non-core gains and losses,
interest expense, expenses for our accounts receivable purchase
agreement, income taxes, depreciation and amortization, and
goodwill and asset impairment charges.
Non-GAAP Operating Profit and Adjusted EBITDA are management's
principal metrics for measuring our underlying financial
performance. Non-GAAP Operating Profit and Adjusted EBITDA, along
with other quantitative and qualitative information, are also the
principal financial measures used by management and our board of
directors in determining performance-based compensation for our
management and key employees.
These non-GAAP measures are not intended to imply that we would
have generated higher income or avoided net losses if the November
2016 merger and the subsequent transactions and initiatives had not
occurred. In the future we may incur expenses or charges such as
those added back to calculate Non-GAAP Net Income (Loss), Non-GAAP
Operating Profit or Adjusted EBITDA. Our presentation of Non-GAAP
Net Income (Loss), Non-GAAP Operating Profit and Adjusted EBITDA
should not be construed as an inference that our future results
will be unaffected by these items. Other companies, including our
peer companies, may calculate similarly-titled measures in a
different manner from us, and therefore, our non-GAAP measures may
not be comparable to similarly-titled measures of other companies.
Investors are cautioned against using these measures to the
exclusion of our results in accordance with GAAP.
Net loss reconciliation to Non-GAAP Net
Loss
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
(In millions) |
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
| Net loss |
$ |
(226.6 |
) |
|
$ |
(186.6 |
) |
|
$ |
(865.8 |
) |
|
$ |
(802.2 |
) |
| Share-based compensation
expense |
|
17.2 |
|
|
|
15.5 |
|
|
|
51.9 |
|
|
|
47.8 |
|
| Special bonuses and other
compensation expense (a) |
|
3.3 |
|
|
|
2.7 |
|
|
|
9.7 |
|
|
|
9.1 |
|
| Transaction-related
adjustments, net (b) |
|
1.6 |
|
|
|
1.8 |
|
|
|
4.1 |
|
|
|
4.4 |
|
| Restructuring and
transformation expenses (c) |
|
14.3 |
|
|
|
8.8 |
|
|
|
63.0 |
|
|
|
42.5 |
|
| Hosted Exchange incident
expenses, net of proceeds received or expected to be received under
our insurance coverage |
|
(5.3 |
) |
|
|
(1.2 |
) |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
| Impairment of goodwill |
|
165.7 |
|
|
|
141.7 |
|
|
|
708.8 |
|
|
|
714.9 |
|
| UK office closure (d) |
|
— |
|
|
|
— |
|
|
|
12.1 |
|
|
|
— |
|
| Impairment of assets, net |
|
48.4 |
|
|
|
— |
|
|
|
48.4 |
|
|
|
20.0 |
|
| Net gain on divestiture and
investments (e) |
|
— |
|
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
| Debt modification costs and
gain on debt extinguishment |
|
(55.4 |
) |
|
|
(18.0 |
) |
|
|
(163.1 |
) |
|
|
(147.2 |
) |
| Interest expense impact from
the Refinancing Transactions (f) |
|
— |
|
|
|
(25.0 |
) |
|
|
— |
|
|
|
(50.6 |
) |
| Other adjustments (g) |
|
2.6 |
|
|
|
(4.3 |
) |
|
|
0.3 |
|
|
|
(3.8 |
) |
| Amortization of intangible
assets (h) |
|
39.7 |
|
|
|
38.7 |
|
|
|
121.6 |
|
|
|
116.0 |
|
| Tax effect of non-GAAP
adjustments (i) |
|
(13.6 |
) |
|
|
15.7 |
|
|
|
(16.7 |
) |
|
|
(3.6 |
) |
|
Non-GAAP Net Loss |
$ |
(8.1 |
) |
|
$ |
(10.3 |
) |
|
$ |
(26.3 |
) |
|
$ |
(54.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations reconciliation to Non-GAAP
Operating Profit
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
(In millions) |
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
| Loss from operations |
$ |
(239.4 |
) |
|
$ |
(173.7 |
) |
|
$ |
(884.2 |
) |
|
$ |
(880.3 |
) |
| Share-based compensation
expense |
|
17.2 |
|
|
|
15.5 |
|
|
|
51.9 |
|
|
|
47.8 |
|
| Special bonuses and other
compensation expense (a) |
|
3.3 |
|
|
|
2.7 |
|
|
|
9.7 |
|
|
|
9.1 |
|
| Transaction-related
adjustments, net (b) |
|
1.6 |
|
|
|
1.8 |
|
|
|
4.1 |
|
|
|
4.4 |
|
| Restructuring and
transformation expenses (c) |
|
14.3 |
|
|
|
8.8 |
|
|
|
63.0 |
|
|
|
42.5 |
|
| Hosted Exchange incident
expenses, net of proceeds received or expected to be received under
our insurance coverage |
|
(5.3 |
) |
|
|
(1.2 |
) |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
| Impairment of goodwill |
|
165.7 |
|
|
|
141.7 |
|
|
|
708.8 |
|
|
|
714.9 |
|
| Impairment of assets, net |
|
48.4 |
|
|
|
— |
|
|
|
48.4 |
|
|
|
20.0 |
|
| Amortization of intangible
assets (h) |
|
39.7 |
|
|
|
38.7 |
|
|
|
121.6 |
|
|
|
116.0 |
|
| UK office closure (d) |
|
— |
|
|
|
— |
|
|
|
12.1 |
|
|
|
— |
|
|
Non-GAAP Operating Profit |
$ |
45.5 |
|
|
$ |
34.3 |
|
|
$ |
135.0 |
|
|
$ |
73.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss reconciliation to Adjusted EBITDA
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
(In millions) |
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
| Net loss |
$ |
(226.6 |
) |
|
$ |
(186.6 |
) |
|
$ |
(865.8 |
) |
|
$ |
(802.2 |
) |
| Share-based compensation
expense |
|
17.2 |
|
|
|
15.5 |
|
|
|
51.9 |
|
|
|
47.8 |
|
| Special bonuses and other
compensation expense (a) |
|
3.3 |
|
|
|
2.7 |
|
|
|
9.7 |
|
|
|
9.1 |
|
| Transaction-related
adjustments, net (b) |
|
1.6 |
|
|
|
1.8 |
|
|
|
4.1 |
|
|
|
4.4 |
|
| Restructuring and
transformation expenses (c) |
|
14.3 |
|
|
|
8.8 |
|
|
|
63.0 |
|
|
|
42.5 |
|
| Hosted Exchange incident
expenses, net of proceeds received or expected to be received under
our insurance coverage |
|
(5.3 |
) |
|
|
(1.2 |
) |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
| Impairment of goodwill |
|
165.7 |
|
|
|
141.7 |
|
|
|
708.8 |
|
|
|
714.9 |
|
| UK office closure (d) |
|
— |
|
|
|
— |
|
|
|
12.1 |
|
|
|
— |
|
| Impairment of assets, net |
|
48.4 |
|
|
|
— |
|
|
|
48.4 |
|
|
|
20.0 |
|
| Net gain on divestiture and
investments (e) |
|
— |
|
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
| Debt modification costs and
gain on debt extinguishment |
|
(55.4 |
) |
|
|
(18.0 |
) |
|
|
(163.1 |
) |
|
|
(147.2 |
) |
| Other expense, net (j) |
|
2.6 |
|
|
|
1.0 |
|
|
|
0.3 |
|
|
|
11.8 |
|
| Interest expense |
|
56.5 |
|
|
|
18.0 |
|
|
|
170.7 |
|
|
|
80.1 |
|
| Provision (benefit) for income
taxes |
|
(16.5 |
) |
|
|
12.0 |
|
|
|
(26.1 |
) |
|
|
(22.6 |
) |
| Depreciation and amortization
(k) |
|
90.1 |
|
|
|
72.3 |
|
|
|
279.2 |
|
|
|
220.6 |
|
|
Adjusted EBITDA |
$ |
95.9 |
|
|
$ |
67.9 |
|
|
$ |
292.6 |
|
|
$ |
177.9 |
|
| (a) |
|
Includes expense related to
retention bonuses, mainly relating to restructuring and integration
projects, and the related payroll tax, senior executive signing
bonuses and relocation costs, and payroll taxes associated with the
exercise of stock options and vesting of restricted stock.
Beginning in the second quarter of 2023, includes expense related
to the one-time grant of long-term incentive bonuses as a component
of our annual compensation award process. |
| (b) |
|
Includes legal, professional,
accounting and other advisory fees related to acquisitions, certain
one-time compliance costs related to being a public company,
integration costs of acquired businesses, purchase accounting
adjustments, payroll costs for employees that dedicate significant
time to supporting these projects and exploratory acquisition and
divestiture costs and expenses related to financing
activities. |
| (c) |
|
Includes consulting and advisory
fees related to business transformation and optimization
activities, payroll costs for employees that dedicate significant
time to these projects, as well as associated severance, certain
facility closure costs, and lease termination expenses. The nine
months ended September 30, 2024 also includes a $9.0 million MEIA
early termination fee associated with the sale of our corporate
headquarters in March 2024. |
| (d) |
|
Expense recognized related to the
closure of a UK office that we exited in the second quarter of 2023
prior to the lease end date. |
| (e) |
|
Includes gains and losses on
investment and from dispositions. |
| (f) |
|
Interest expense impact due to
the accounting for contractual interest payments on debt
instruments entered into as part of the March 2024 Refinancing
Transactions, which reduced interest expense relative to
contractual interest cost. |
| (g) |
|
Primarily consists of foreign
currency gains and losses. |
| (h) |
|
All of our intangible assets are
attributable to acquisitions, including the November 2016
merger. |
| (i) |
|
We utilize an estimated
structural long-term non-GAAP tax rate in order to provide
consistency across reporting periods, removing the effect of
non-recurring tax adjustments, which include but are not limited to
tax rate changes, U.S. tax reform, share-based compensation, audit
conclusions and changes to valuation allowances. When computing
this long-term rate for the 2023 and 2024 interim periods, we based
it on an average of the 2022 and estimated 2023 tax rates and 2023
and estimated 2024 tax rates, respectively, recomputed to remove
the tax effect of non-GAAP pre-tax adjustments and non-recurring
tax adjustments, resulting in a structural non-GAAP tax rate of 26%
for all periods. The non-GAAP tax rate could be subject to change
for a variety of reasons, including the rapidly evolving global tax
environment, significant changes in our geographic earnings mix
including due to acquisition activity, or other changes to our
strategy or business operations. We will re-evaluate our long-term
non-GAAP tax rate as appropriate. We believe that making these
adjustments facilitates a better evaluation of our current
operating performance and comparisons to prior periods. |
| (j) |
|
Primarily consists of foreign
currency gains and losses and expense related to our accounts
receivable purchase agreement. |
| (k) |
|
Excludes accelerated depreciation
expense related to facility closures. |
| |
|
|
Non-GAAP Earnings (Loss) Per Share
We define Non-GAAP Earnings (Loss) Per Share as Non-GAAP Net
Income (Loss) divided by our GAAP weighted average number of shares
outstanding for the period on a diluted basis and further adjusted
for the weighted average number of shares associated with
securities which are anti-dilutive to GAAP loss per share but
dilutive to Non-GAAP Earnings (Loss) Per Share. Management uses
Non-GAAP Earnings (Loss) Per Share to evaluate the performance of
our business on a comparable basis from period to period, including
by adjusting for the impact of the issuance of shares that would be
dilutive to Non-GAAP Earnings (Loss) Per Share.
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
(In millions, except per share amounts) |
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
| Net loss attributable to
common stockholders |
$ |
(226.6 |
) |
|
$ |
(186.6 |
) |
|
$ |
(865.8 |
) |
|
$ |
(802.2 |
) |
| Non-GAAP Net Loss |
$ |
(8.1 |
) |
|
$ |
(10.3 |
) |
|
$ |
(26.3 |
) |
|
$ |
(54.0 |
) |
| |
|
|
|
|
|
|
|
| Weighted average number of
shares - Diluted |
|
216.0 |
|
|
|
226.4 |
|
|
|
214.8 |
|
|
|
223.6 |
|
| Effect of dilutive securities
(a) |
|
6.4 |
|
|
|
9.4 |
|
|
|
2.9 |
|
|
|
9.3 |
|
|
Non-GAAP weighted average number of shares - Diluted |
|
222.4 |
|
|
|
235.8 |
|
|
|
217.7 |
|
|
|
232.9 |
|
| |
|
|
|
|
|
|
|
| Net loss per share -
Diluted |
$ |
(1.05 |
) |
|
$ |
(0.82 |
) |
|
$ |
(4.03 |
) |
|
$ |
(3.59 |
) |
| Per share impacts of
adjustments to net loss (b) |
|
1.01 |
|
|
|
0.78 |
|
|
|
3.91 |
|
|
|
3.35 |
|
| Per share impacts of shares
dilutive after adjustments to net loss (a) |
|
0.00 |
|
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
0.01 |
|
|
Non-GAAP Loss Per Share |
$ |
(0.04 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.23 |
) |
| (a) |
|
Reflects impact of awards that
would have been anti-dilutive to net loss per share, and therefore
not included in the calculation, but would be dilutive to Non-GAAP
Loss Per Share and are therefore included in the share count for
purposes of this non-GAAP measure. Potential common share
equivalents consist of shares issuable upon the exercise of stock
options, vesting of restricted stock units (including
performance-based restricted stock units) or purchases under the
Employee Stock Purchase Plan (the "ESPP"), as well as contingent
shares associated with our acquisition of Datapipe Parent, Inc.
Certain of our potential common share equivalents are contingent on
Apollo achieving pre-established performance targets based on a
multiple of their invested capital ("MOIC"), which are included in
the denominator for the entire period if such shares would be
issuable as of the end of the reporting period assuming the end of
the reporting period was the end of the contingency period. |
| (b) |
|
Reflects the aggregate
adjustments made to reconcile Non-GAAP Net Loss to our net loss, as
noted in the above table, divided by the GAAP diluted number of
shares outstanding for the relevant period. |
| |
|
|
Rackspace Technology (NASDAQ:RXT)
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