Core Insights - Rackspace (RXT) reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.04, marking a 50% earnings surprise [1] - The company achieved revenues of $685.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.54%, although this represents a decline from $719.7 million year-over-year [2] - Rackspace has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The company has shown a significant improvement in stock performance, with shares up approximately 31.2% year-to-date compared to the S&P 500's gain of 4.5% [3] - Current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $637.6 million, with a breakeven point on revenues of $2.69 billion for the current fiscal year [7] Industry Outlook - The Technology Services industry, to which Rackspace belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [8] - The performance of Rackspace's stock may be influenced by the overall industry outlook, as top-ranked industries tend to outperform lower-ranked ones significantly [8]

Revenue Performance - Fourth quarter 2024 revenue was $686 million, a decrease of 5% year-over-year from $720 million in Q4 2023[4]. - Full year 2024 revenue totaled $2,737 million, a decrease of 7% from $2,957 million in 2023[8]. - Total revenue for the year ended December 31, 2024, was $2,737.1 million, a decrease of 7.4% compared to $2,957.1 million in 2023[39]. - Public Cloud revenue for Q4 2024 was $417 million, down 4% year-over-year[4][5]. - Private Cloud revenue for Q4 2024 was $269 million, down 6% year-over-year[4][5]. - Public Cloud revenue for the year ended December 31, 2024, was $1,682.6 million, down 3.4% from $1,742.7 million in 2023[39]. - Private Cloud revenue for the year ended December 31, 2024, was $1,054.5 million, a decrease of 13.2% from $1,214.4 million in 2023[39]. Profit and Loss - The net loss for Q4 2024 was $(60) million, compared to a net income of $28 million in Q4 2023, resulting in a net loss per diluted share of $(0.26)[5][6]. - Full year 2024 net loss was $(863) million, compared to a net loss of $(838) million in 2023, with a net loss per diluted share of $(3.84)[9]. - Non-GAAP Operating Profit for Q4 2024 was $39 million, a decrease of 13% compared to $45 million in Q4 2023[6]. - Non-GAAP Operating Profit for the year ended December 31, 2024, was $105.6 million, down 32.8% from $157.2 million in 2023[51]. - Non-GAAP Net Loss for Q4 2024 was $(4.4) million, an improvement from $(8.9) million in Q4 2023[50]. - Non-GAAP Net Loss for the year ended December 31, 2023 was $(52.1) million, with a projected increase in loss to $(63.5) million for 2024[57]. - The company reported a net income of $(60.4) million for Q4 2024, compared to a net income of $28.0 million in Q4 2023[50]. - Net income for Q4 2023 was $28.0 million, while the projected net loss for Q4 2024 is $(60.4) million, indicating a significant decline[52]. Cash Flow and Assets - Cash provided by operating activities for 2023 was $374.9 million, significantly higher than $39.9 million in 2024[30]. - Total assets as of December 31, 2023, were $4,096.2 million, compared to $3,051.0 million in 2024[28]. - Cash and cash equivalents at the end of 2023 were $199.7 million, down from $147.0 million in 2024[30]. Expenses and Liabilities - Capital expenditures in Q4 2024 were $27 million, down from $38 million in Q4 2023[7]. - Total liabilities for 2023 were $4,250.7 million, slightly up from $4,059.6 million in 2024[28]. - The company recognized $56.7 million in restructuring and transformation expenses for 2023, with an increase to $58.5 million expected in 2024[52]. - Interest expense for the year ended December 31, 2023 was $221.6 million, with a significant reduction to $98.0 million projected for 2024 due to refinancing transactions[52]. Future Guidance - The company expects Q1 2025 revenue guidance of $653 - $665 million, with Private Cloud revenue projected at $247 - $253 million and Public Cloud revenue at $406 - $412 million[13]. - Non-GAAP Loss Per Share for Q1 2025 is expected to be between $(0.07) and $(0.09)[13]. Bookings and Sales Performance - Fiscal 2024 bookings grew 14% year-over-year, indicating strong sales execution across both business units[3]. Impairment and Shareholder Impact - Impairment of goodwill for 2023 was $708.8 million, compared to $714.9 million in 2024, indicating a stable impairment level[25]. - The weighted average number of diluted shares increased from 215.3 million in 2023 to 224.8 million in 2024, indicating a dilution effect on earnings per share[57]. - Non-GAAP Loss Per Share for 2023 was $(0.24), with a projected loss of $(0.27) for 2024, reflecting a worsening performance[57]. - The company incurred $708.8 million in goodwill impairment for the year ended December 31, 2023, with an increase to $714.9 million expected in 2024[52]. Segment Performance - Public Cloud segment operating profit decreased by 60.9% year-over-year to $9.9 million in Q4 2024[35]. - Private Cloud segment operating profit increased by 5.1% year-over-year to $80.6 million in Q4 2024[35]. - Non-GAAP Gross Profit for Q4 2024 was $141.2 million, compared to $157.5 million in Q4 2023[41]. - Adjusted EBITDA for the year ended December 31, 2023 was $362.6 million, down from $244.8 million projected for 2024, reflecting a decrease of approximately 32.5%[52].

Core Insights - Rackspace Technology, Inc. reported its fourth quarter and full year results for 2024, highlighting a decline in revenue and increased net losses compared to the previous year [1][2][7]. Financial Performance - Fourth quarter revenue was $686 million, a decrease of 5% from $720 million in Q4 2023 [3][9]. - Full year revenue totaled $2,737 million, down 7% from $2,957 million in 2023 [7][22]. - Private Cloud revenue for Q4 2024 was $269 million, a decrease of 6% year-over-year, while full year revenue was $1,055 million, down 13% [3][7]. - Public Cloud revenue for Q4 2024 was $417 million, a decrease of 4% year-over-year, with full year revenue at $1,683 million, down 3% [4][8]. Profitability Metrics - The company reported a loss from operations of $(29) million in Q4 2024, compared to a loss of $(15) million in Q4 2023 [4][9]. - Net loss for Q4 2024 was $(60) million, compared to net income of $28 million in Q4 2023 [4][5]. - Non-GAAP Operating Profit for Q4 2024 was $39 million, a decrease of 13% from $45 million in Q4 2023 [5][10]. Capital Expenditures - Capital expenditures in Q4 2024 were $27 million, down from $38 million in Q4 2023 [6][11]. Guidance for Future Performance - For Q1 2025, the company provided revenue guidance of $653 - $665 million, with Private Cloud revenue expected between $247 - $253 million and Public Cloud revenue between $406 - $412 million [12].

Core Insights - Rackspace Technology has entered a significant 10-year partnership with Seattle Children's Hospital to provide a managed cloud solution aimed at transforming their data center operations and modernizing infrastructure for both clinical and non-clinical workloads [1][2] - The collaboration is expected to enhance agility, reliability, scalability, and security while significantly reducing IT costs for Seattle Children's, allowing them to focus on improving patient care and advancing pediatric research initiatives [1][3] Company Overview - Rackspace Technology is recognized as a leading end-to-end hybrid cloud and AI solutions provider, capable of designing, building, and operating cloud environments across major technology platforms [4] - The company employs a Cost and Productivity Optimization (CPO) assessment framework to evaluate IT infrastructure spending, which helps in simplifying operations and phasing out legacy technologies [2] Partnership Details - The agreement will enable Seattle Children's to leverage Rackspace's Healthcare Cloud, combining managed services with hybrid cloud solutions to enhance security, efficiency, and operational resilience [3] - Rackspace will manage Seattle Children's workloads on its private cloud and major platforms like Azure and AWS, ensuring availability, performance, and automation [2][3]

Core Insights - Rackspace Technology has entered a significant 10-year partnership with Seattle Children's Hospital to provide a managed cloud solution aimed at transforming their data center operations and modernizing infrastructure for both clinical and non-clinical workloads [1][2] - The agreement is expected to enhance agility, reliability, scalability, and security while significantly reducing IT costs for Seattle Children's, allowing them to focus on improving patient care and advancing pediatric research initiatives [1][2] Company Overview - Rackspace Technology is recognized as a leading end-to-end hybrid cloud and AI solutions provider, capable of designing, building, and operating cloud environments across major technology platforms [4] Partnership Details - The partnership involves deploying Rackspace's Cost and Productivity Optimization (CPO) assessment framework to evaluate Seattle Children's IT infrastructure spending, leading to a transformation that simplifies operations and phases out legacy technologies [2] - Rackspace will manage Seattle Children's workloads on its private cloud and major platforms like Azure and AWS, ensuring a standardized managed services model across both private and public clouds [2][3] Strategic Goals - The collaboration aims to create a modern IT infrastructure on Rackspace's Healthcare Cloud, enhancing security, efficiency, and operational resilience for Seattle Children's [3] - The focus is on reducing costs and aligning with Seattle Children's mission and future growth, maximizing technological capabilities while driving innovation for patient care [3]

Group 1 - Rackspace Technology (RXT) is set to report its fourth-quarter 2024 results on February 20, after market close [1][9] - The Zacks Consensus Estimate for RXT's revenues in the upcoming quarter is $675.2 million, reflecting a 6.2% year-over-year decrease [3] - The expected revenue from Public Cloud is $413.3 million, indicating a 5% year-over-year decline due to reduced cloud infrastructure volumes [3][4] - Private Cloud revenues are estimated at $261.8 million, showing an 8% year-over-year decline, attributed to customers transitioning away from older-generation offerings [4] - The consensus estimate for earnings per share in the upcoming quarter is 4 cents, suggesting a 33.3% decrease from the previous year's actual [4] Group 2 - Rackspace Technology has a history of earnings surprises, having beaten the Zacks Consensus Estimate in the last four quarters with an average surprise of 29.4% [2] - The current Earnings ESP for RXT is 0.00%, and it holds a Zacks Rank of 3 (Hold), indicating uncertainty regarding an earnings beat this time [5][6]

Leading automotive digital agency now supports dealership websites by managing millions of visitors monthly with a modernized cloud infrastructureSAN ANTONIO, Feb. 11, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading hybrid, multicloud, and AI technology solutions company, today announced working with Dealer eProcess (DEP) to scale digital capabilities and enhance customer experiences on Google Cloud. DEP was founded in 2006 in Lisle, Illinois, and is the leading automotive digital ag ...

Core Insights - Rackspace Technology and Munster Technological University (MTU) have launched QCloud, Ireland's first quantum cloud computing hub on AWS, aimed at enhancing collaborative research and access to quantum computing technologies [1][2][3] - QCloud is designed to democratize access to quantum resources, providing secure and scalable connectivity for researchers across Ireland [2][3] - The initiative has already connected multiple institutions, supporting 12 startups and 11 major research projects, marking a significant shift in Ireland's quantum research landscape [5] Company Collaboration - Rackspace Technology collaborated with MTU to secure funding for QCloud, enhancing research opportunities in the region [3] - The partnership leverages Rackspace's expertise in the European Open Science Cloud (EOSC) Future project, promoting collaboration between commercial service providers and researchers [2][3] - The collaboration with AWS has resulted in a comprehensive quantum research environment, facilitating advanced applications while managing costs effectively [4][7] QCloud Implementation - QCloud was launched in February 2024 with funding from the EOSC Future project, providing centralized access to quantum computing resources for researchers [3] - The platform allows researchers to utilize actual quantum computers, moving beyond traditional simulators, and includes features for real-time monitoring and budget management [4][7] Future Vision - MTU expects to double its research projects in the coming year, indicating a growing interest and innovation in quantum computing [6] - The initiative is seen as a pivotal moment for the evolution of ideas into commercially viable and socially beneficial products in the quantum computing space [6]

Core Insights - QCloud, Ireland's first quantum cloud computing hub, was launched by Rackspace Technology in collaboration with Munster Technological University (MTU) to enhance collaborative research and access to quantum computing technologies [1][2][3] Group 1: QCloud Overview - QCloud aims to democratize access to quantum resources, providing secure and scalable connectivity to quantum computing power for researchers across Ireland [2][3] - The platform was developed with funding from the EOSC Future project, facilitating centralized access to quantum computing resources for various research fields, including autonomous systems security [3][4] Group 2: Collaboration and Infrastructure - The collaboration between MTU, Rackspace Technology, and AWS resulted in a comprehensive quantum research environment, enabling researchers to explore advanced applications while managing costs effectively [4][7] - QCloud provides a centralized platform for eight universities and 13 research institutes, featuring tools for streamlined project management and real-time cost tracking [7] Group 3: Impact and Future Vision - Since its launch, QCloud has connected multiple institutions, supporting 12 startups and 11 major research projects, marking a significant shift in Ireland's quantum research landscape [5][8] - MTU expects to double its research projects in the coming year, indicating a growing interest and innovation in quantum computing [8]

Solution revolutions non-emergency medical transportation with scalable cloud platformSAN ANTONIO, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading provider of hybrid, multicloud, and AI technology services, today announced working with American Logistics to launch a state-of-the-art NEMT (Non-Emergency Medical Transportation) platform, cloud-native AWS environment that reimagines healthcare transportation capabilities to transform a company's enterprise operations to realize ...