03:12 PM EDT, 03/13/2024 (MT Newswires) -- Rackspace Technology's ( RXT ) Q4 results reflected continued macro pressures and its strategic shift to multicloud managed services, RBC Capital Markets said in a note emailed Wednesday.

RBC revised its full-year 2024 topline and bottomline estimates for the company, taking into account the latest Rackspace's ( RXT ) guidance, latest results and a conservative macro environment.

The brokerage now projects a 2024 adjusted loss of $0.49 per share and revenue of $2.75 billion, compared with its previous estimates of a per-share loss of $0.10 and $2.85 billion in revenue.

It is initiating 2025 estimates of $0.34 per-share adjusted loss and $2.84 billion in revenue.

RBC maintained its price target at $3 and sector perform rating.

"Although the strategic shift has largely been structurally consummated, we believe the financial model, which has two layers of mix shift, has several years before hitting a crossover point, when both revenues and margins can expand concurrently," it said.

Shares of Rackspace ( RXT ) tumbled nearly 19% in recent trading.

Price: 1.81, Change: -0.41, Percent Change: -18.55