Rackspace Technology, Inc. (NASDAQ:RXT) Q2 2022 Earnings Conference Call August 9, 2022 5:00 PM ET
Company Participants
Robert Watson - Vice President. Corporate Finance.
Kevin Jones - Chief Executive Officer
Amar Maletira - President and Chief Financial Officer
Conference Call Participants
Bryan Keane - Deutsche Bank.
Frank Luton - Raymond James
Irvin Liu - Evercore
Ryan Campbell - Barclays
Robert Watson
Good afternoon, and welcome to Rackspace Technologies Second Quarter 2022 Earnings Conference Call. My name is Robert Watson, Vice President of Corporate Finance. As a reminder, today's call is being recorded.
I am joined today by Kevin Jones, our Chief Executive Officer; and Amar Maletira, our President and Chief Financial Officer. The slide deck we will reference during the call can be found on our Investor Relations website.
On Slide two, 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 provided 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. After our prepared remarks, we will take your questions. To queue up for questions, please use the Q&A function in Zoom.
I will now turn the call over to Kevin.
Kevin Jones
Good afternoon, and thanks for joining us. I'll discuss quarterly highlights and the strategic direction of our business, then Amar will go into detail on the financial results.
On Slide five, hyper growth in the cloud market shows no signs of abating. In the second quarter, year-over-year cloud growth for the hyperscalers was impressive. AWS grew 33%, Google Cloud grew 36% and analysts estimate that Microsoft Azure grew 40%. This represents $10 billion of additional public cloud revenue compared to last year's second quarter. So Rackspace Technology benefits from overall secular cloud growth, and this growth is expected to continue for the foreseeable future.
In the second quarter, we executed well with non-GAAP operating profit and non-GAAP earnings per share, both at the high end of our guidance. In the current market, tech investors are extremely focused on cash flow. And in the second quarter, both operating and free cash flow were very strong for Rackspace Technology for the sixth quarter in a row.