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Rackspace Technology Inc. (RXT-1.46%) has filed its Form 10-K filing for the fiscal year ended December 31, 2024.
The company reported a decrease in revenue to $2.737 billion from $2.957 billion in the previous year, reflecting a 7.4% decline. This was attributed to a decrease in both Private Cloud and Public Cloud revenue.
Cost of revenue decreased by $125 million, primarily due to an increase in the useful life of certain assets, which reduced depreciation expenses. However, as a percentage of revenue, cost of revenue increased to 80.5% from 78.7% due to a decline in revenue.
Rackspace Technology reported a gross profit of $533 million, down from $629 million in the previous year. The gross margin decreased to 19.5% from 21.3%.
Selling, general, and administrative expenses decreased to $708 million from $767 million, influenced by reductions in personnel costs and professional fees.
The company recorded a total of $715 million in non-cash goodwill impairment charges, attributed to its Public Cloud and Private Cloud reporting units.
Interest expense decreased significantly to $98 million from $222 million, due to the accounting treatment of interest payments on new debt instruments.
Rackspace Technology recorded a gain on debt extinguishment of $147 million, related to refinancing transactions completed in March and April 2024.
The company reported a net loss of $858 million, compared to a net loss of $838 million in the previous year. The increase in net loss was primarily due to goodwill impairments.
Rackspace Technology ended the year with $144 million in cash and cash equivalents, with $92 million held by foreign entities.
The company noted its substantial indebtedness, with $2.449 billion in aggregate principal amount outstanding under various debt instruments as of December 31, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Rackspace Technology Inc. annual 10-K report dated March 21, 2025. To report an error, please email earnings@qz.com.