Board and Executive Transitions - Jeffrey Benjamin succeeds David Sambur as Independent Chairman of the Board, bringing over 25 years of investment management experience and prior board roles at American Airlines Group and Caesars Entertainment Company [2] - Vikram Mahidhar joins the Rackspace Board, bringing expertise in digital, data, and artificial intelligence from his roles at Apollo Global Management and Genpact, and replaces Susan Arthur who stepped down [3] - Brian Lillie, President of Private Cloud, will leave his position to focus on personal commitments, with CEO Amar Maletira assuming the Interim Leader role for the Private Cloud business [4] Financial Performance and Outlook - The company achieved record-breaking quarterly sales bookings in Q4 2024, with high double-digit growth year-over-year and sequentially [5] - Rackspace Technology reaffirms its financial guidance for Q4 2024, as previously provided in a press release on November 12, 2024 [6] Company Overview - Rackspace Technology is a leading end-to-end multicloud technology solutions company, capable of designing, building, and operating cloud environments across all major technology platforms [7]

SAN ANTONIO, Jan. 14, 2025 (GLOBE NEWSWIRE) -- A new global survey, 2025 State of Cloud Report, conducted by Rackspace Technology® (NASDAQ:RXT), a leading end-to-end, hybrid, multicloud, and AI solutions company, finds that organizations continue to shift away from a single cloud approach toward more flexible hybrid cloud environments. The survey of more than 1,400 IT decision-makers found that over 90% plan to make significant changes in their cloud strategy over the next two years. Of those respondents, 4 ...

Core Points - Rackspace Technology has signed the Armed Forces Covenant, demonstrating its commitment to support military personnel and their families [1][2] - The company aims to ensure fair treatment for veterans and their families, pledging to support their employment and provide flexible leave for service duties [2] - Rackspace's employee resource group, RackVet, is instrumental in fostering a supportive community for veterans, focusing on professional development and mutual support [3][5] Initiatives and Services - Rackspace Technology is actively engaged in dedicated recruitment efforts for veterans and reservists, and has established partnerships with military charities [3][5] - The launch of Rackspace UK Sovereign Services aligns with the company's commitment to the UK public sector, providing secure and scalable solutions tailored to the needs of regulated industries [4] - The company emphasizes the unique skills that service members bring to the civilian workforce, enhancing its technological excellence through this commitment [4]

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...

SAN ANTONIO, Nov. 20, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading hybrid, multicloud, and AI technology services company, today announced the launch of Rackspace Technology Adaptive Cloud Manager, a proprietary solution built by leveraging Microsoft Azure Arc technology with Rackspace services automation to onboard customers to hybrid cloud architectures with Microsoft Azure.    By integrating hybrid cloud information into a centralized dashboard, Rackspace Adaptive Cloud Manager ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves a ...

Robust design and migration demonstrate Rackspace’s Epic subject matter expertise, private cloud leadership, and innovation SAN ANTONIO, Tx., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading hybrid, multicloud, and AI technology services company, today announced the deployment of an Epic Electronic Health Record (EHR) system for AdventHealth on Rackspace’s Healthcare Cloud platform. This implementation is one of the largest Epic deployments for a US health system, scaling to ...

LONDON, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading hybrid, multicloud, and AI technology services company, today announced it is partnering with JBi Digital, a top-tier digital transformation agency to deepen the agency’s commitment to the UK government services sector. Leveraging Rackspace Sovereign Government Cloud, JBi Digital is poised to address the unique security and compliance demands of UK government clients while expanding its footprint in the sector. Founded ...

Rackspace (RXT) came out with a quarterly loss of $0.04 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post a loss of $0.11 per share when it actually produced a loss of $0.08, delivering a surprise of 27.27%.Over the last four quarters, the company has surpassed consensu ...

Financial Data and Key Metrics - Total company GAAP revenue for Q3 2024 was $676 million, within the guided range, driven by strength in public cloud [35] - Non-GAAP gross profit margin was 21.2% of GAAP revenue, up 90 basis points sequentially [35] - Non-GAAP operating profit was $34 million, exceeding the high end of guidance, with a non-GAAP operating margin of 5.1% of GAAP revenue, up 180 basis points sequentially [35] - Non-GAAP loss per share was $0.04, better than the guided range of $0.06 to $0.08 loss per share [35] - Cash flow from operations was $52 million, and free cash flow was $27 million in Q3 2024 [36] - The company closed the quarter with $157 million in cash and $532 million of total liquidity, including $375 million of undrawn commitments [36] Business Line Performance Private Cloud - Private Cloud GAAP revenue was $258 million, within the guided range, but down 1% sequentially due to customers rolling off older generation private cloud offerings [37] - Non-GAAP gross margin for private cloud was 38.6%, up 120 basis points sequentially, driven by cost efficiencies [38] - Non-GAAP segment operating margin was 28.9%, up 210 basis points sequentially, due to gross margin expansion and better cost management [38] - Bookings saw a slight sequential decline in Q3, but the pipeline increased by 41% year-over-year, with expectations of strong sequential bookings growth in Q4 [11] - Healthcare Private Cloud revenue is projected to grow nearly 30% year-over-year in fiscal 2024, driven by differentiated offerings like Epic Hosting [12] - Sovereign vertical revenue is expected to grow over 50% in 2024 compared to 2023 [16] Public Cloud - Public Cloud GAAP revenue was $418 million, down 2% sequentially but above the guidance midpoint, driven by services [21] - Public Cloud achieved record bookings in Q3, with high double-digit growth sequentially and year-over-year [22] - Non-GAAP gross margin for public cloud was 10.4%, up 50 basis points sequentially, driven by improved resale margins [40] - Non-GAAP segment operating margin was 3.9%, up 110 basis points sequentially, due to improved gross margins and operational efficiency [40] - The company launched four new solutions and enhanced four others in Q3, including Amazon Q Incubate, an AI-powered assistant [27] AI - The company is making progress in AI with nearly 50 customers and over 250 opportunities at various stages of implementation [32] - In public cloud, the company joined AWS' Generative AI Partner Innovation Alliance to help customers build and deploy generative AI solutions [32] - In private cloud, a proof of concept is underway with a large international company to run inferencing workloads on private AI infrastructure [33] - The company launched on-demand GPU as a Service on its spot platform, powered by NVIDIA's H100 Tensor Core GPUs [33] Market Performance - The Americas region showed robust sales performance in Q3, marking the third consecutive quarter of exceeding internal bookings targets [23] - Platform and data services bookings grew double digits sequentially and year-over-year, driven by strong demand in AI-related data modernization [24] - The company signed a multiyear strategic collaboration agreement with AWS to accelerate digital transformation for customers [25] Strategic Direction and Industry Competition - The company is focused on three strategic priorities: operational turnaround, positioning as a hybrid cloud and AI solutions company, and improving capital structure [6] - The company is launching new products and solutions targeting hybrid cloud and AI growth, with a focus on long-term profitable growth [6] - The company is expanding its offerings in regulated industries, such as healthcare and sovereign markets, with significant wins in both verticals [12][16] - The company is strengthening partnerships with hyperscalers and focusing on a services-led strategy to drive higher consumption of cloud infrastructure [25][30] Management Commentary on Operating Environment and Future Outlook - The company expects Q4 2024 GAAP revenue to be $668 million to $680 million, slightly down sequentially at the midpoint [41] - Non-GAAP operating profit is expected to be $34 million to $36 million, with a non-GAAP loss of $0.03 to $0.05 per share [41] - Private Cloud revenue is expected to be $258 million to $264 million, up 1% sequentially at the midpoint, while Public Cloud revenue is expected to be $410 million to $416 million, down 1% sequentially at the midpoint [42] - The company is optimistic about the growth potential in AI and hybrid cloud markets, with a balanced approach to helping customers leverage AI for impactful and sustainable solutions [34] Other Important Information - The company successfully migrated one of the nation's largest healthcare providers to its healthcare cloud, involving 38,000 concurrent users across 54 hospitals in nine states [13] - The company joined the Board of the OpenInfra Foundation to influence the strategic direction of open-source innovation [19] - The company is seeing renewed customer interest in its OpenStack offerings, with approximately 300,000 Bcf cores managed [18] Q&A Session Question 1: Size of the healthcare win - The healthcare win in Q4 2023 was in the hundreds of millions of dollars in TCV, with a successful onboarding and transition to Rackspace Healthcare Cloud [45] - The deal involved 38,000 concurrent users and was one of the largest Epic system installations globally [46] Question 2: Vertical breakdown of private cloud revenue - Healthcare and sovereign verticals are expected to grow from 5%-10% of total revenue in fiscal 2023 to nearly 15% by the end of fiscal 2024, with further growth expected in fiscal 2025 [48] - Healthcare revenue is projected to grow by nearly 30% year-over-year in fiscal 2024, with high double-digit growth expected in fiscal 2025 [49] Question 3: Services attach rate on infrastructure deals - The company has shifted to a services-led go-to-market strategy, resulting in a 22 out of 28 attach rate for services on top deals in Q3 [52] - This strategy has transformed discussions with customers, focusing on C-level engagement and delivering holistic value, which has improved margins and customer profitability [54]