Rackspace Technology (NASDAQ: RXT) reported Q1 EPS of $0.23, $0.02 better than the analyst estimate of $0.21. Revenue for the quarter came in at $726 million versus the consensus estimate of $724.08 million.

Kevin Jones, Chief Executive Officer, commented, “Our first quarter results represent a strong start to the year. We continued to grow both total and Core revenue by double digits. The earnings leverage inherent in our business model and our cost transformation programs are driving significant improvements in year-over-year profitability. And our working capital discipline resulted in a dramatic increase in both operating and free cash flow.”

Mr. Jones continued, “Most importantly we are continuing to position the company for consistent ongoing growth and earnings leverage. The new customers we landed in 2019 and 2020 provide a strong growth foundation, and the continued tectonic shift of workloads to the cloud will provide secular tailwinds for years to come. Our new market positioning as the un-GSI, as well as the new service offerings we’ve introduced in 2021, position Rackspace Technology as the clear partner of choice for companies that want to migrate their business to the cloud. We are already seeing significant traction in the market for these initiatives.”

GUIDANCE:

Rackspace Technology sees Q2 2021 EPS of $0.21-$0.23, versus the consensus of $0.23. Rackspace Technology sees Q2 2021 revenue of $735-745 million, versus the consensus of $735.04 million.

Rackspace Technology sees FY2021 EPS of $0.95-$1.05, versus the consensus of $1.01. Rackspace Technology sees FY2021 revenue of $2.9-3.1 billion, versus the consensus of $3.02 billion.

For earnings history and earnings-related data on Rackspace Technology (RXT) click here.