Core Insights - Rackspace Technology has formed a strategic alliance with Sema4.ai to enhance enterprise AI solutions, integrating Rackspace's Foundry for AI (FAIR™) services with Sema4.ai's SAFE AI Agent Platform [1][5] - The collaboration aims to bridge the gap between AI experimentation and full-scale enterprise adoption, addressing the current statistic that only 24% of enterprises have AI agents in production [2][3] Company Overview - Rackspace Technology is a leading provider of hybrid cloud and AI solutions, focusing on the secure and responsible use of AI technologies to drive business transformation and improve customer experience [6][7] - Sema4.ai positions itself as an innovator in enterprise AI agents, emphasizing the importance of these agents in revolutionizing knowledge work and operational efficiency [9][10] Partnership Benefits - The partnership allows businesses to design and deploy custom AI agents tailored to specific use cases, with seamless integration across various functions such as HR, finance, and customer support [3][4] - The SAFE platform from Sema4 enables the integration of advanced AI capabilities into existing enterprise environments, promoting resilience and interconnectivity among AI agents [5][9] Market Context - Rackspace's AI research report highlights a critical gap in AI adoption, indicating a strong market opportunity for solutions that facilitate the transition from experimentation to enterprise-wide deployment [2] - The collaboration is expected to empower businesses to operationalize AI at scale, moving beyond testing to effective deployment of AI agents [4][5]

Core Insights - The report highlights a significant gap between organizations that have adopted AI strategies and those that have not, with "AI Leaders" achieving better productivity and innovation outcomes [1][2][10] - AI investments are surging, with an average increase of nearly 250% from 2024 to 2025, indicating a strong commitment to AI across various sectors [4][5] AI Leadership and Adoption - Only 13% of surveyed organizations are classified as "AI Leaders," who have integrated AI into their business strategies, leading to substantial benefits [1][2] - AI Leaders report a 64% realization of benefits from AI, compared to 32% of other organizations, and are three times more likely to scale AI deployments [1][2] Investment Trends - The average business investment in AI rose from $2.5 million to $8.7 million, with 83% of respondents expecting further increases in AI investments over the next five years [4] - Organizations anticipate a 33% increase in the average number of AI projects in production by the end of 2025 [4] Strategic Value of AI - AI is increasingly viewed as a strategic asset rather than just a tool for optimization, with 90% of respondents identifying customer experience and productivity as primary use cases [6] - Customer experience is the most commonly tracked KPI for AI initiatives, surpassing revenue and profitability [6] Cybersecurity and AI - Cybersecurity is recognized as a top risk factor for AI adoption, but organizations are beginning to see AI as a means to enhance cybersecurity measures [7] - AI Leaders are more likely to embed security protocols into their AI applications to address cybersecurity challenges [7] Challenges in Scaling AI - Despite increased AI deployments, 68% of respondents find it challenging to scale AI technology effectively [8] - 71% agree that investing in infrastructure is essential for enabling the scalability and flexibility needed for AI initiatives [9] Competitive Advantage through AI - AI Leaders view AI as a fundamental competitive driver, with 87% recognizing its importance beyond automation [10] - Two-thirds of AI Leaders reported substantial benefits from AI in the past year, compared to one-third of other companies, indicating a widening competitive gap [10]

Core Insights - Rackspace Technology has been awarded two Global Alliances Partner of the Year Awards by Dell Technologies, recognizing its innovation leadership in EMEA and marketing excellence in the Americas [1][2] - The awards highlight the strong collaboration between Rackspace and Dell Technologies, focusing on solutions for private cloud, data modernization, and AI adoption [2][3] Company Overview - Rackspace Technology is a leading provider of end-to-end hybrid and AI solutions, capable of designing, building, and operating cloud environments across various technology platforms [4] - The company emphasizes a customer-first approach, partnering with clients throughout their cloud journey to modernize applications and adopt innovative technologies [4]

Core Insights - Rubrik and Rackspace Technology have launched the Rackspace Cyber Recovery Service, a managed service aimed at enhancing cyber resilience for enterprises operating in public cloud environments [1][2][3] - The service combines Rubrik's data protection and cyber recovery solutions with Rackspace's DevOps principles, enabling faster recovery from ransomware attacks through automated workflows and secure data restoration [1][4] Company Overview - Rubrik is a leading cyber resilience company focused on securing data across enterprise, cloud, and SaaS applications, utilizing Zero Trust Data Security to help organizations maintain business resilience against cyber threats [7] - Rackspace Technology specializes in end-to-end hybrid cloud and AI solutions, assisting customers in modernizing applications and managing cloud environments effectively [6] Service Features - The Rackspace Cyber Recovery Service employs Infrastructure as Code and platform engineering principles to facilitate the restoration of critical workloads across multi-cloud environments [4] - Key features include proactive protection through continuous anomaly detection, expert management of backup configurations, cloud management services, improved compliance with data retention policies, and advisory services for strategic implementation [5] Industry Context - The increasing complexity of cloud environments and the rise in cyber attacks necessitate a shift from traditional recovery methods to modern approaches that leverage cloud-native tools and automation [2][3] - A report from Rubrik Zero Labs indicates that 90% of global IT and security executives experienced cyber attacks in the past year, highlighting the urgent need for effective cyber resilience strategies [2]

Core Insights - The analyst emphasizes a tech-focused approach to investment research, leveraging 25 years of experience in IT and investment to provide unique insights [1] - The research methodology includes analytics and charts to support investment positions, with a focus on capital preservation strategies [1] - The analyst has a diverse background, including roles in virtualization, cloud, and telecommunications, which informs their investment themes [1] Industry Focus - Key themes of interest include automated supply chains, Generative AI, telecommunications capital expenditures (Capex), the deflationary nature of software, and semiconductors [1] - The analyst also covers biotech with a "techbio" perspective, indicating a blend of technology and biotechnology insights [1] Investment Philosophy - The investment journey began with mutual and indexed funds, transitioning to individual stocks, highlighting a learning curve from past investment losses during the 2008/2009 financial crisis [1] - The analyst values unique perspectives from platforms like Seeking Alpha, which provide access to top analysts and diverse investment opinions [1]

Core Insights - Rackspace Technology successfully migrated the Housing Authority of the City of Austin's (HACA) technology infrastructure to Microsoft Azure and Microsoft 365, enhancing operational resilience and security [1][4] - HACA, a public-sector entity, provides essential housing services to low-income families and prioritizes operational continuity and security [2][3] - The transition to a cloud-based environment was prompted by critical downtime during a severe winter storm, which exposed vulnerabilities in HACA's on-premises infrastructure [3][4] HACA's Operational Needs - HACA requires technology to be available 99.9% of the time to support its mission of providing housing to vulnerable citizens [4] - The organization has approximately 240 staff members and manages various housing assistance programs through digital platforms [2] Migration and Improvements - The migration involved the seamless transition of 373 users and over 3.7 TB of data to Microsoft 365, significantly improving HACA's operational agility [4] - The new cloud infrastructure has enhanced business continuity, disaster recovery capabilities, and cybersecurity posture [4][5] Future Readiness - HACA's modernized technology stack provides a flexible and secure foundation for adopting emerging technologies and complying with evolving government standards [5] - The new environment allows HACA to respond proactively to future technological demands and community needs [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______. Commission File Number: 001-39420 RACKSPACE TECHNOLOGY, INC. 19122 US Highway 281N, Suite 128 San Antonio, Texas 78258 (Address of principa ...

Core Viewpoint - Rackspace Technology, Inc. reported strong performance in Q1 2025, exceeding expectations across all key metrics [5]. Financial Performance - Revenue for Q1 2025 was reported, indicating positive growth compared to previous periods [5]. - The company provided non-GAAP financial measures and adjustments, which are believed to offer useful insights for investors [4]. Management Commentary - Amar Maletira, the CEO, expressed optimism about the company's performance and highlighted the exceeded expectations [5]. - Sagar Hebbar, Head of Investor Relations, introduced the call and emphasized the presence of key executives [2].

Core Insights - Rackspace (RXT) reported a quarterly loss of $0.06 per share, better than the Zacks Consensus Estimate of a loss of $0.08, and an improvement from a loss of $0.11 per share a year ago, indicating a 25% earnings surprise [1] - The company achieved revenues of $665.4 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.93%, although this represents a decline from $690.8 million in the same quarter last year [2] - Rackspace has consistently exceeded consensus EPS estimates over the last four quarters, indicating a positive trend in earnings performance [2] Financial Performance - The company has shown a significant earnings surprise of 50% in the previous quarter, where it reported a loss of $0.02 per share against an expected loss of $0.04 [1] - Rackspace shares have declined approximately 35.3% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] Future Outlook - The future performance of Rackspace's stock will largely depend on management's commentary during the earnings call and the subsequent revisions of earnings estimates [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $672.9 million, and for the current fiscal year, it is also $0.01 on revenues of $2.72 billion [7] - The Zacks Industry Rank places Technology Services in the top 27% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] Industry Context - The performance of Rackspace's stock may be influenced by the overall outlook of the Technology Services industry, which has shown strong performance relative to lower-ranked industries [8] - Another company in the same industry, Blade Air Mobility, Inc. (BLDE), is expected to report a quarterly loss of $0.11 per share, reflecting a year-over-year change of -83.3% [9]

Rackspace (RXT) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Sagar Hebbar - VP - IR & Corporate FinanceAmar Maletira - CEO & DirectorMark Marino - Chief Financial OfficerIrvin Liu - Vice PresidentRyan Campbell - VP - Equity ResearchRobert Palmisano - Senior Equity Research Associate Operator Good day, and welcome to the Rackspace First Quarter twenty twenty five Earnings Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be ...