Rackspace Technology (Rackspace Technology) Gross Profit : $592 Mil (TTM As of Mar. 2024)

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What is Rackspace Technology Gross Profit?

Rackspace Technology's gross profit for the three months ended in Mar. 2024 was $133 Mil. Rackspace Technology's gross profit for the trailing twelve months (TTM) ended in Mar. 2024 was $592 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Rackspace Technology's gross profit for the three months ended in Mar. 2024 was $133 Mil. Rackspace Technology's Revenue for the three months ended in Mar. 2024 was $691 Mil. Therefore, Rackspace Technology's Gross Margin % for the quarter that ended in Mar. 2024 was 19.22%.

Rackspace Technology had a gross margin of 19.22% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

During the past 7 years, the highest Gross Margin % of Rackspace Technology was 41.47%. The lowest was 20.49%. And the median was 36.36%.

Warning Sign:

Rackspace Technology Inc gross margin has been in long-term decline. The average rate of decline per year is -12.5%.

Rackspace Technology Gross Profit Historical Data

The historical data trend for Rackspace Technology's Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Rackspace Technology Gross Profit Chart

Rackspace Technology Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Profit

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1,011.20

984.40

936.80

856.90

628.80

Rackspace Technology Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Profit	Get a 7-Day Free Trial															169.60	153.10	152.00	154.10	132.80

Competitive Comparison of Rackspace Technology's Gross Profit

For the Software - Infrastructure subindustry, Rackspace Technology's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Rackspace Technology's Gross Profit Distribution in the Software Industry

For the Software industry and Technology sector, Rackspace Technology's Gross Profit distribution charts can be found below:

* The bar in red indicates where Rackspace Technology's Gross Profit falls into.

Rackspace Technology Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Rackspace Technology's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as

Gross Profit (A: Dec. 2023 )	=	Revenue	-	Cost of Goods Sold
	=	2957.1	-	2328.3
	=	629

Rackspace Technology's Gross Profit for the quarter that ended in Mar. 2024 is calculated as

Gross Profit (Q: Mar. 2024 )	=	Revenue	-	Cost of Goods Sold
	=	690.8	-	558
	=	133

Gross Profit for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $592 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Rackspace Technology's Gross Margin % for the quarter that ended in Mar. 2024 is calculated as

Gross Margin % (Q: Mar. 2024 )	=	Gross Profit (Q: Mar. 2024 )	/	Revenue (Q: Mar. 2024 )
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	133	/	690.8
	=	19.22 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Rackspace Technology (NAS:RXT) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Rackspace Technology had a gross margin of 19.22% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage

Rackspace Technology Gross Profit Related Terms

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Rackspace Technology (Rackspace Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Rackspace Technology Inc (NAS:RXT) » Definitions » Gross Profit

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Fanatical Place, City of Windcrest, San Antonio, TX, USA, 78218

Website

https://www.rackspace.com

Rackspace Technology Inc is an end-to-end multi cloud technology services company. It designs, builds and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services; Data; Colocation; Managed Cloud; Managed Hosting; Professional Services; and Security & Compliance. It operates in three reportable segments Multicloud Services; Apps & Cross-Platform; and OpenStack Public Cloud. It generates revenue through the sale of consumption-based contracts for its services offerings and from the sale of professional services related to designing and building custom solutions.

Executives

Srini Koushik	officer: Chief Technology Officer	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Dharmendra Kumar Sinha	officer: EVP, President, Public Cloud	C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP, 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Amar Maletira	officer: President & CFO	C/O VIAVI SOLUTIONS INC., 430 NORTH MCCARTHY BOULEVARD, MILPITAS CA 95035
Mark A. Marino	other: Vice President & CAO	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Casey L. Shilling	officer: SVP - Chief Marketing Officer	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Rackspace Technology, Inc.	director	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Anthony C. Roberts	director	1 FANATICAL PLACE, SAN ANTONIO TX 78218
Betsy S Atkins	director
Anthony Scott	director	25501 WEST VALLEY PARKWAY, OLATHE KS 66061
Kellie Teal-guess	officer: Chief Human Resources Officer	1 FANATICAL PLACE, C/O RACKSPACE TECHNOLOGY, INC., SAN ANTONIO TX 78218
Brian Lillie	officer: EVP, President Private Cloud	1485 BROOKMILL ROAD, LOS ALTOS CA 94024
Naushaza Molu	officer: EVP, Chief Financial Officer	1 FANATICAL PLACE, SAN ANTONIO TX 78218
Shashank Samant	director	6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Gregory S. Hrncir	officer: SVP - Chief Operations Officer	1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Timothy Campos	director	C/O JDS UNIPHASE CORPORATION, 430 N MCCARTHY BOULEVARD, MILPITAS CA 95035