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This statistic highlights Rackspace Technology’s Total Bookings, reported on a quarterly basis from Q1 2019 onwards.
Rackspace Technology’s Total Bookings
|Period||Q2 2020||Q1 2021||Q2 2021|
(All figures are in millions)
Rackspace Technology’s Total Bookings increased from $230.50 million in Q2 2020 to $258.20 million in Q2 2021, marking a 12.01% growth on a year-on-year basis. It increased by 6.03% as compared to $243.50 million in Q2 2021. The drop in bookings from 2020 to 2021 is due to the company’s focus in 2021 on increasing revenue and profitability with new clients onboarded in 2019 and 2020. Previously, sales activities were largely geared toward acquiring new customers, particularly infrastructure sales, which result in bigger dollar bookings. While they continue to attract new clients, they also want to strengthen their existing connections by reserving high-margin services. They are also putting money into projects that will boost sales productivity.
The annualized monthly value of Rackspace Technology’s recurring customer contracts entered into during the period from
(i) new customers
(ii) net upgrades by existing customers within the same workload, plus the actual (not annualized) estimated value of professional services consulting advisory, or project-based orders received during the period, is used to calculate bookings for a given period.
Any contracts entered into on a multi-year or month-to-month basis, except professional services contracts for consulting, advisory, or project-based work, are considered “recurring customer contracts.”
Bookings for any period may include orders completed during that time, orders that are still outstanding after the period, and the annualized value of recurring month-to-month contracts entered into during that period, even if the contract’s conditions do not require the contract to be renewed. Net upgrades by current customers within the same workload are included in bookings, while net downgrades by such customers within that workload are not.
Any customer who contracts for a new workload is considered a new customer, and the whole value of the contract or upgrade is recorded in Bookings, regardless of whether the same client canceled or downgraded previous workloads. Except for positive net upgrades by current customers, bookings do not include the impact of any known contract non-renewals or service cancelations by their clients. Bookings only include the annualized contract value when a new or upgrading customer signs a multi-year contract. Usage-based fees over negotiated minimum commitments are not included in bookings until they are incurred.
Bookings are used by Rackspace Technology to track the amount of new business created over a certain period, which they believe is a key indicator of new customer acquisition and the capacity to cross-sell new services to existing customers. Bookings are also used by management to determine the sales force’s performance-based compensation. While they feel that Bookings, when combined with other data, is an indication of their near-term future revenue possibilities, it is not intended to be used as a revenue forecast. Bookings may be calculated differently than other organizations’ metrics with similar names.
Bookings are calculated using internal data that has not been independently confirmed by third parties and may not provide an accurate indicator of future or expected results. The Bookings metric, for example, is calculated by annualizing the monthly value of recurring customer contracts entered into during a period and adding the actual (not annualized) estimated value of professional services consulting advisory, or project-based orders received during that period, but it does not reflect actual or anticipated contract non-renewals or service cancellations (which they do not report), and to the extent that they experience such contract non-renewals.
About the Company
Rackspace became public in 2008, and Apollo Global Management LLC bought it and took it private in 2016. In June 2020, it changed its name to Rackspace Technology. Then, in August 2020, Rackspace Technology was re-listed on the NASDAQ with the symbol RXT.
Rackspace Technology, Inc. is a cloud computing firm headquartered in Windcrest, Texas, a San Antonio suburb. They are a prominent multi-cloud technology services firm that provides end-to-end solutions. Regardless of technology, stack, or deployment type, they design, develop, and operate their customers’ cloud environments across all major technology platforms.
They collaborate with customers at every stage of their cloud journey, allowing them to upgrade apps, create new products, and implement cutting-edge technology. They provide a unique combination of proprietary technology resulting from over $1 billion in investment, as well as services expertise from a team of highly qualified consultants and engineers, to its customers. And they offer unbiased expertise and technology solutions to their customers, delivered through the world’s premier cloud services and wrapped in a Fanatical Experience.
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