Rackspace Technology
Q2 2023 Earnings Presentation
August 8, 2023

Disclaimer
Forward-Looking Statements
Rackspace Technology has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties.
All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in relianceon the safe harbor protections provided thereunder. These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome ofregulatory proceedings, market conditions, and other matters. Any forward-looking statement made in this presentation speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,”“confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on
management’s current beliefs and assumptions and on information currently available to management. Rackspace Technology cautions that these statements are subject to risks and uncertainties, many of which are outside ofour control, and could cause future events or results to be materially different from those stated or implied in this document, including among others, risk factors that are described in Rackspace Technology, Inc.’s Registration
Statement on Form S-1, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled “RiskFactors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein.

Non-GAAP Measures
To provide investors with additional information in connection with our results as determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we disclose Non-GAAP Net Revenue,Non-GAAP Operating Profit, Non-GAAP Net Income (Loss), Non-GAAP Earnings (Loss) Per Share, and Adjusted EBITDA as non-GAAP financial measures. These non-GAAP financial measures are not measures of financial
performance in accordance with GAAP and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative or
superior to GAAP measures. You should be aware that our presentation of these measures may not be comparable to similarly-titled measures used by other companies. Reconciliations of each non-GAAP financial measure to
the applicable most comparable GAAP measure can be found in the Appendix.
We present these non-GAAP financial measures to provide investors with meaningful supplemental financial information, in addition to the financial information presented on a GAAP basis. Rackspace Technology management
believes that excluding items such as the impacts from foreign currency rate fluctuations on our international business operations or certain costs, losses and gains that may not be indicative of, or are unrelated to, our core
operating results, and that may vary in frequency or magnitude, enhances the comparability of our results and provides a better baseline for analyzing trends in our business. Rackspace Technology management believes thenon-GAAP measures provided are also considered important measures by financial analysts covering Rackspace Technology as equity research analysts continue to publish estimates and research notes based on our nonGAAP commentary.
Amounts on subsequent pages may not add due to rounding.

2Q2 2023 financial results$'s in millions

Q2 2023

Y/Y

Q/Q

Total Revenue$746(3%)(2%)

Non-GAAP Net Revenue$447(10%)(3%)

Non-GAAP Gross Profit$163(30%)(9%)

Non-GAAP Gross Margin

21.8%(8 pts)(2 pts)Non-GAAP Net Gross Margin

36.5%(10 pts)(2 pts)Non-GAAP Operating Profit$39(60%)(23%)

Non-GAAP Operating Margin

5.2%(8 pts)(1 pt)

Non-GAAP Net Operating Margin

8.7%(11 pts)(2 pts)Non-GAAP EPS($0.06)($0.23)($0.04)

Adjusted EBITDA$94(39%)(9%)

Adj. EBITDA Margin

12.5%(7 pts)(1 pt)• Non-GAAP Net Revenue is a metric that appliesnet-accounting to public cloud infrastructure
resale revenue (only the profit element ofinfrastructure resale is included)• Non-GAAP Net Revenue provides investors withvisibility to the true margin profile of our business

NOTE: Refer to Appendix for reconciliation of Non-GAAP measures to most relevant GAAP measures, as well as how we define Non-GAAP Net Revenue3

Q2 2023 segment financials$'s in millions

Y/Y %
Total
Rackspace

PublicCloud

Private
Cloud

Total
Rackspace

PublicCloud

PrivateCloud

Total Revenue
Non-GAAP Net Revenue

$746
$447

$435
$135

$311$311(3%)

3%

(11%)

(10%)

(7%)

--

Non-GAAP Gross Profit$163$47$116(30%)

(30%)

(30%)

Non-GAAP Gross Margin
Non-GAAP Net Gross Margin

21.8%
36.5%

10.7%
34.5%

37.3%
--

(8 pts)(10 pts)(5 pts)(11 pts)(10 pts)--

Segment Operating Profit$104$17$87

(36%)

(43%)

(35%)

Segment Operating Margin
Segment Net Operating Margin

13.9%
--

3.9%
12.6%

27.9%
--

(7 pts)--(3 pts)(8 pts)(10 pts)--

Corporate Functions

($65)

1%

Non-GAAP Operating Profit$39(60%)Non-GAAP Operating Margin
Non-GAAP Net Operating Margin5.2%
8.7%(8 pts)(11 pts)

NOTE: Refer to Appendix for reconciliation of Non-GAAP measures to most relevant GAAP measures, as well as definitions for Non-GAAP Net Revenue, Segment Operating Profit and Corporate Functions
4Cash flow & capital expenditures$'s in millions

As of June 30, 2023

Q2’23

LTM

Cash Provided by Operating Activities$38$134

Free Cash Flow

$14$65

LTM Free Cash Flow Yield

11%

Total Capital Expenditures$45$190

Total CAPEX Intensity

6%

6%Cash Capital Expenditures$23$69Cash CAPEX Intensity

3%

2%

Cash & Cash Equivalents$160Undrawn Revolving Credit Facility$325

Total Liquidity$485

Note: Refer to Appendix for more information on how we define capital intensity.
Free cash flow is a Non-GAAP metric and is presented as cash flow from operations less cash paid for purchases of property, equipment and software. Refer to Appendix for a reconciliation of Free Cash Flow to the most comparable GAAP measure.
LTM free cash flow yield calculated as LTM Free Cash Flow divided by Market Capitalization as of June 30, 2023

5Debt structure overview$'s in millions

As of June 30, 2023

$3.2B

Debt Highlights• Total debt $3.2B, Net Debt $3.1B

Term Loan B

2023

Revolver
2024

$50
2025

$2,248

Senior Secured Notes$550

Senior Notes

$385

2027

2028

2026

Facility

6/30 Balance

MaturityRate

Hedge

Revolver$50

Aug-2025

3-month SOFR + 0.262%
Spread + 3% Margin

N/A$2,248Feb-2028

1-month SOFR + 0.114%
Spread + 275 bps$1,350M at 2.342%
w/ 75 bps floor
N/A
N/A

Term Loan B
Senior Secured Notes$550

Feb-2028

3.500%
Fixed Rate

Senior Notes$385

Dec-2028

5.375%
Fixed Rate

Note: Quarterly principal payments of approximately $5.75 million on the Term Loan are not reflected in the maturity chart.
1. Includes interest expense• Primarily (~70%) fixed or hedged debtstructure• No funded maturities until 2028 except
the $50M revolver borrowing• No maintenance covenants• During Q2, we deployed $47 million ofcash1 sourced from our revolving credit
facility to opportunistically repurchase$142 million dollars of our seniorunsecured notes in the marketplace• Through July YTD, we have repurchased
a total of $222 million dollars of seniorunsecured notes in the marketplaceusing $77 million dollars of cash1

6Opportunistic debt repurchases have created equity value
Throughout the first 7 months of 2023, Rackspace successfully retired $222 million of its outstanding 5.375% unsecured notes due 2028
via open market repurchases

Strategic rationale

Capture attractive discount, with $222M in notes repurchased at an
average price of 34%, capturing a discount of $146M

Key stats
Amount Retired

Amount Spend1$222
million$77
millionDiscount Captured

Annual Interest
SavingsEnhance cash flow profile by reducing interest expense ~$12M annually

Accelerate de-leveraging by decreasing debt $222M while only spending$77M1 in cash, reducing net leverage by ~0.3x2

Note:
1. Includes interest expense
2. Based on LTM EBITDA as of 6/30/23

66%$146 million$12million

7Outlook
Q3 2023 Guidance
Total Revenue$722 - $732 million

Public Cloud Revenue$428 - $433 million

Private Cloud Revenue$294 - $299 million

Non-GAAP Operating Profit$43 - $47 million

Non-GAAP Loss Per Share($0.06) - ($0.04)

Non-GAAP Other Income (Expense)($58) - ($60) million

Non-GAAP Tax Expense Rate
Non-GAAP Weighted Average Shares26%
215 - 217 million

NOTE: Refer to Appendix for more information on how we define Non-GAAP Tax Expense Rate and Non-GAAP Weighted Average Shares.
In 2023, Non-GAAP Other Income and Expense is only expected to include interest expense.

8Appendix

Rackspace organized around two dynamic markets
LEADERSHIPDK Sinha
President, Public Cloud

PUBLIC
CLOUD

30-year industry leader with broad
experience navigating companies throughbusiness and technology “S” curves.
Strong track-record of scaling businesses
and building high-performing teams

BUSINESS DYNAMICS

Secular growth market
Services-centric with deep
customer engagement
Capital-light

Brian Lillie
President, Private Cloud

P R I VAT E
CLOUD

Product and technology-oriented leader
with 30 years of industry experience.
Strategic approach with immense focus
on execution

Mature/low-growth market
Technology-forward
Capital-intensive

FOCUS AREAS
Cloud/digital transformation
Services across infrastructure,applications, data and security

IP-based service offerings
and automation

Infrastructure-as-a-service
Industry solutions
Next-generation solutions: AI cloud,Sovereign cloud, Edge10

Non-GAAP Net Revenue Reconciliation(In millions)

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Total Revenue$772.2$787.6$787.0$758.7$746.3Pass-through infrastructure resale costs(276.4)(298.0)(306.3)(298.9)(299.7)

Non-GAAP Net Revenue$495.8$489.6$480.7$459.8$446.611

Non-GAAP Gross Profit Reconciliation
Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023$224.0$207.1$199.8$169.6$153.1

Share-based compensation expense

3.4

2.8

2.62.82.6

Other compensation expense

0.4

0.4

0.3

0.7

1.4

Purchase accounting impact on expense

0.8

0.6

0.6

0.6

0.7

Restructuring and transformation expenses

3.1

0.8

1.7

4.7

5.1--

0.2

0.3-

$7.7

$4.6

$5.4

$9.1

$9.8

$231.7$211.7$205.2$178.7$162.9(In millions)
GAAP Gross Profit

Hosted Exchange incident expenses
Total Adjustments
Non-GAAP Gross Profit

12Non-GAAP Net Income (Loss) Reconciliation(In millions)

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Net loss$(40.6)$(511.7)$(214.0)$(612.0)$(27.2)

Share-based compensation expense

23.1

19.4

10.0

15.2

19.5

Special bonuses and other compensation expense

2.4

2.4

1.8

2.2

4.2

Transaction-related adjustments, net

1.9

2.4

1.4

1.3

1.2

Restructuring and transformation expenses

24.9

26.1

24.7

25.6

23.1

Hosted Exchange incident expenses

--

5.9

3.2

1.7

Impairment of goodwill

-

405.2

129.3

543.1

-

UK office closure

-

-

-

-

12.1

Impairment of assets

-

58.7

87.4

-

-

0.2

0.1

(0.2)

(0.1)

(0.1)

Gain on debt extinguishment---(12.8)(94.9)

Other (income) expense, net

5.9

6.0

(5.5)

(2.1)

(0.2)

Amortization of intangible assets

42.2

42.0

40.4

40.9

41.0

Tax effect of non-GAAP adjustments(24.5)(30.6)(67.7)

(9.2)

6.1

$35.5

$20.0

$13.5

$(4.7)$(13.5)

Net (gain) loss on divestiture and investments

Non-GAAP Net Income (Loss)

13Non-GAAP Operating Profit Reconciliation

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Income (loss) from operations$4.0$(476.7)$(227.2)$(581.0)$(63.8)

Share-based compensation expense

23.1

19.4

10.0

15.2

19.5

Special bonuses and other compensation expense

2.4

2.4

1.8

2.2

4.2

Transaction-related adjustments, net

1.9

2.4

1.4

1.3

1.2

Restructuring and transformation expenses

24.9

26.1

24.7

25.6

23.1

Hosted Exchange incident expenses

--

5.9

3.2

1.7

Impairment of goodwill

-

405.2

129.3

543.1

-

UK office closure

-

-

--

12.1

Impairment of assets

-

58.7

87.4

-

-

Amortization of intangible assets

42.2

42.0

40.4

40.9

41.0

Total Adjustments$94.5$556.2$300.9$631.5$102.8

Non-GAAP Operating Profit

$98.5

$79.5

$73.7

$50.5

$39.0

(In millions)14

Adjusted EBITDA Reconciliation
Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023$(40.6)$(511.7)$(214.0)$(612.0)$(27.2)

Share-based compensation expense

23.1

19.4

10.0

15.2

19.5

Special bonuses and other compensation expense

2.4

2.4

1.8

2.2

4.2

Transaction-related adjustments, net

1.9

2.4

1.4

1.3

1.2

Restructuring and transformation expenses

24.9

26.1

24.7

25.6

23.1Hosted Exchange incident expenses

--

5.9

3.2

1.7

Impairment of goodwill

-

405.2

129.3

543.1

-

UK office closure

-

-

-

-

12.1

Impairment of assets

-

58.7

87.4

-

-

0.2

0.1

(0.2)

(0.1)

(0.1)

Gain on debt extinguishment---(12.8)(94.9)

Other (income) expense, net

5.9

6.0

(5.5)

(2.1)

(0.2)

Interest expense

50.5

52.3

55.6

56.9

57.3

Provision (benefit) for income taxes(12.0)(23.4)(63.1)(10.9)

1.3

Depreciation and amortization

98.1

96.6

91.4

93.695.5$154.4$134.1$124.7$103.2$93.5(In millions)
Net loss

Net (gain) loss on divestiture and investments

Adjusted EBITDA

15

Non-GAAP Earnings (Loss) Per Share Reconciliation
Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Net loss attributable to common stockholders$(40.6)$(511.7)$(214.0)$(612.0)$(27.2)

Non-GAAP Net Income (Loss)

$35.5

$20.0

$13.5

$(4.7)$(13.5)Weighted average number of shares – Diluted

209.5

210.8

211.6

213.2

215.1

0.4

0.2

0.3

1.1

1.2

209.9

211.0

211.9214.3

216.3$(0.19)$(2.43)$(1.01)$(2.87)$(0.13)

0.36

2.52

1.08

2.85

0.06

0.00

0.01(0.01)

0.00

0.01

$0.17

$0.10

$0.06

$(0.02)$(0.06)(In millions)

Effect of dilutive securities
Non-GAAP weighted average number of shares – Diluted
Net loss per share – Diluted
Per share impacts of adjustments to net loss
Per share impacts of shares dilutive after adjustments to netloss
Non-GAAP Earnings (Loss) per Share16

Free Cash Flow Reconciliation

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Net cash provided by (used in) operating activities

$84.0

$70.7

$27.5

$(1.9)$37.8

Cash purchases of property, equipment and software(27.2)(19.0)(15.0)(12.1)(23.4)

$56.8

$51.7

$12.5

$(14.0)$14.4(In millions)Free Cash Flow17

Definitions
Non-GAAP Net
Revenue

Non-GAAP Net Revenue applies net-accounting to public cloud infrastructure resale revenue. This means only the profit element of infrastructure resale is included in Non-GAAP Net Revenue inaddition to public cloud services and private cloud revenues.

Segment
Operating Profit

Segment revenue less expenses directly attributable to running the respective segments’ business. These expenses exclude centralized corporate function costs.

CorporateFunctions

Costs that are not allocated to segments. These costs are related to centralized corporate functions that provide services to the segments in areas such as accounting, information technology,marketing, legal and human resources.

Capital Intensity

Capital intensity reflects capital expenditures divided by revenue for the same period.

Non-GAAPTax Expense Rate

We utilize an estimated structural long-term non-GAAP tax rate in order to provide consistency across reporting periods, removing the effect of non-recurring tax adjustments, which include but are
not limited to tax rate changes, U.S. tax reform, share-based compensation, audit conclusions and changes to valuation allowances. We used a structural non-GAAP tax rate of 26% for all periods
which reflects the removal of the tax effect of non-GAAP pre-tax adjustments and non-recurring tax adjustments on a year-over-year basis. The non-GAAP tax rate could be subject to change for avariety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix including due to acquisition activity, or other changes to our strategy orbusiness operations. We will re-evaluate our long-term non-GAAP tax rate as appropriate. We believe that making these adjustments facilitates a better evaluation of our current operating
performance and comparisons to prior periods.

Non-GAAP
Weighted
Average Shares

Reflects impact of awards that would have been anti-dilutive to net loss per share, and therefore not included in the calculation, but would be dilutive to Non-GAAP EPS and are therefore includedin the share count for purposes of this non-GAAP measure. Potential common share equivalents consist of shares issuable upon the exercise of stock options, vesting of restricted stock units(including performance-based restricted stock units) or purchases under the Employee Stock Purchase Plan (the "ESPP"), as well as contingent shares associated with our acquisition of Datapipe
Parent, Inc. Certain of our potential common share equivalents are contingent on Apollo achieving pre-established performance targets based on a multiple of their invested capital ("MOIC"), which
are included in the denominator for the entire period if such shares would be issuable as of the end of the reporting period assuming the end of the reporting period was the end of the contingency
period.

18