Rackspace Technology, Inc. (NASDAQ: RXT) stock lost over 2% in the pre-market session of November 11th, 2020 (Source: Google finance) after the company posted mixed results in the third quarter of FY 20. The company posted adjusted EBITDA of $191 million in the third quarter, up 2% from $187 million in last year’s third quarter. This increase is due to operating leverage from revenue growth and cost takeout through transformation, which was partially offset by investment in our go-to-market areas as well as the expected mix shift to capital-light offerings, would generally come with a lower initial margin.
The firm reported 13% rise in consolidated revenues over last year on a constant currency basis. Core net revenue retention for the third quarter also increased to 100% versus 99% last quarter. Adjusted EBITDA for the quarter rose to $191 million, which is up $4 million year over year and $3 million sequentially, and adjusted earnings per share is up 36% year over year to $0.19. The capital intensity was 7% and improved 1% versus last quarter due to the continued shift in our capital-light offerings. Sales bookings were $315 million, which represents an increase of 64% compared to $192 million in last year’s third quarter. On a pro forma basis, assuming the Onica acquisition had occurred on January 1, 2019, bookings rose 39% compared to last year’s third quarter.
Moreover, new logo bookings are up more than 400% since 2018. The installed base bookings were up 40% in the 12 months ended September 30, 2020, compared to 2018. The company is expanding breadth of the bookings growth. The company grew across all sizes of customers and across all of the geographies. The company continues to expand globally and had the first customer wins in South Africa, Indonesia and Vietnam. And even with the record sales quarter, the pipeline is up from Q2 2020 and has more than doubled from Q3 of 2019.
For the full-year 2020, the company now expects revenue growth to be in the range of 10% to 11%, up from the previous range of 9% to 10%. the company now expects the core revenue growth to be 14% to 15%, up from the previous range of 12.5% to 13.5%. The company expects adjusted EBITDA to be in the range of $758 million to $762 million, up from $756 million to $760 million previously. And the company expects adjusted EPS to be in the range of $0.79 to $0.81 per share, up from the previous range of $0.75 to $0.81 per share.