Rackspace Technology reported its third-quarter results with revenue of US$675.8m, down 7.7% from the same period in 2023. The net loss narrowed by 18% to US$186.6m, with a loss per share of US$0.82, an improvement from the previous year. While revenue was in line with analyst estimates, earnings per share missed expectations by 142%.
Looking ahead, Rackspace forecasts flat revenue growth in the next 3 years compared to a 9.6% industry growth forecast in the US. The company’s shares have seen a 16% increase from the previous week. However, there are concerns as the company faces 3 warning signs, including one potentially serious risk.
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