Rackspace Technology, Inc. (NASDAQ:RXT) Q3 2022 Earnings Conference Call November 9, 2022 5:00 PM ET

Company Participants

Robert Watson - Vice President, Corporate Finance

Amar Maletira - Chief Executive Officer

Conference Call Participants

Kevin McVeigh - Credit Suisse

Amit Daryanani - Evercore

Tien-Tsin Huang - JPMorgan

Operator

Good afternoon and thank you for standing by. Welcome to Rackspace Technologies Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please be advised that today’s call is being recorded. I would now like to hand the call over to Robert Watson, Vice President of Corporate Finance. Please go ahead.

Robert Watson

Thank you and good afternoon. I am joined today by Amar Maletira, our Chief Executive Officer. Please note that we have made some changes to the supplemental earnings materials we provide, including a revised presentation and an Excel fact sheet. These materials as well as a replay of today’s call can be found on our Investor Relations website.

Certain comments we make on this call will be forward-looking. These statements are subject to risks and uncertainties, which could cause actual results to differ. A discussion of these risks and uncertainties is included in our SEC filings. Rackspace Technology assumes no obligation to update the information presented on the call, except as required by law. Our presentation includes certain non-GAAP financial measures and certain further adjustments to these measures, which we believe provide useful information to our investors. In accordance with SEC rules, we have provided a reconciliation of these measures to their most directly comparable GAAP measures in the earnings release and presentation, both of which are available on our website.

I will now share our third quarter financial results and then turn the call over to Amar for an update on the business. In the third quarter, both revenue and core revenue exceeded the high end of the guidance we provided on our Q2 call in August and reiterated on September 26, with the CEO announcement.

Total revenue was $788 million, which represents 3% year-over-year growth on a reported basis and 5% growth in constant currency. We continue to experience material currency headwinds from our Europe business. Core revenue was $751 million, which grew 5% year-over-year on a reported basis and 7% in constant currency. Revenues in EMEA grew 8% in constant currency driven in part by the continued ramp of the BT contract, but declined 1% on an as-reported basis. Americas grew 3% and APJ grew 24% on an as-reported basis and experienced minimal FX impacts.