Rackspace Technology posted revenue of $657 million (+9 percent) and quarterly bookings of $288 million (+107 percent) and net loss of $33 million in second quarter ended June 30, 2020.
Rackspace Technology works with leading technology partners such as Amazon Web Services (AWS), Google, Microsoft, VMware and others to offer cloud platform to its enterprise customers.
Rackspace admitted that its Q2 revenue was positively impacted by the acquisition of Onica Holdings in November 2019 as well as new customer acquisitions and growing customer spend in Multicloud Services and Apps & Cross Platform segments.
Rackspace Technology CEO Kevin Jones said: “This quarter’s 107 percent growth in sales bookings validates our conviction in the massive opportunity presented by the tectonic shift to multicloud.”
Revenue from Core Segments, comprised of Multicloud Services and Apps & Cross Platform, increased 13 percent in the second quarter of 2020.
Capital expenditures were $51 million in the second quarter of 2020, compared to $41 million in the second quarter of 2019.
Rackspace client wins
Rackspace has won a contract to support the Texas department of Information Resources’ IT modernization effort. Rackspace will provide operational, technical and security solutions across the customers’ multi-cloud environment.
Rackspace also won a large deal from ResMed, a digital health company to be their preferred multi-cloud partner. Rackspace will provide migration assistance to automated private cloud technology stack and operational support of a broader multi-cloud footprint, including Microsoft Azure and other technology stacks.
Rackspace had over 7,000 new signings across all three regions and all service offerings. The Texas Department of Information Resources deal was 13 percent of Q2 signings and no other single deal represented more than 4 percent.