Rackspace CEO: Offshoring, real estate closures and other cost cutting measures. Did NASDAQ cheer? Well? Nope

There are two things that typically make Wall Street investment analysts go weak at the knees when it comes to quarterly conference calls with tech execs: expanding cloud services and gory details of cost pruning. Rackspace delivered both in spades this week but its shares nonetheless took a beating on NASDAQ, plunging by …

[hoola]

Bonkers

So analysts were expecting more ($1.10), Rackspace delivered $1 yet shares drop by 30%.

Just what the hell is wrong with these people. Unless I am missing something significant, revenues were up, earnings per share were close to expectations so why dump unless it is to then buy back at the lower price?

[Anonymous Coward]

Re: Bonkers

"Rackspace reported a fall in gross margin due to the cloud mix, the early costs of on-boarding of customers and a few other aspects. This, along with operating costs and interest repayments, led to a net loss of $64m versus a net loss of $48.2m a year earlier."

It was buried further in the article.

[Anonymous Coward]

Pod? Pod??

Yup. That'd make me sell.

[Pascal Monett]

I skimmed over that transcript

It's nothing but growth and percentages of growth throughout.

If you take the transcript at face value, in every single category they mention it's year-on-year growth. Just growing like crazy.

Even their financial department apparently improved the cashflow. I wonder how beancounters can improve cashflow. I though it was sales people and the grunts on the ground that improved cashflow by working more deals, but no. Maybe they invested a lot in BitCoin and made out like bandits ?

In any case, there is absolutely no explanation whatsoever for delivering $1 instead of $1.10. Reading that blurg, they should have delivered $1.50.

It's all malarky anyway.

[Anonymous Coward]

Hosting

Rackspace lost focus about 8yrs ago (?) when it dropped it's 'fanatical support' and started claiming it was a cloud company.

From that point on it was f*****d

[steamnut]

WTF?

What the blazes does ""The pod is capable of delivering a broad spectrum of outcomes without the constraints of a fixed scope of management. " actually mean? I thought that pods were a group of whales; which are large slow moving mammals. Ah, now I understand....