Published on 17 Apr 2022 on Simply Wall St. via Yahoo Finance
Rackspace Technology, Inc. (NASDAQ:RXT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide. On 31 December 2021, the US$2.2b market-cap company posted a loss of US$218m for its most recent financial year. Many investors are wondering about the rate at which Rackspace Technology will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Rackspace Technology
According to the 10 industry analysts covering Rackspace Technology, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$74m in 2024. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 76% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.