Financial Data and Key Metrics Changes - Total company GAAP revenue for Q2 2025 was $666 million, down 3% year over year but slightly up sequentially, exceeding guidance due to solid performance across both business units [18] - Non-GAAP operating profit was $27 million, up 34% year over year, driven by operational efficiencies [18] - Non-GAAP loss per share was $0.06, at the lower end of the guided range, primarily due to higher expenses related to data center leases [19] Business Line Data and Key Metrics Changes - Private Cloud bookings grew 24% sequentially and 42% year over year, with revenue at $250 million, down 4% year over year [6][20] - Public Cloud bookings grew 1% year over year, with revenue totaling $417 million, down 2% year over year [11][21] - Non-GAAP gross margin for Private Cloud was 36.8%, down 50 basis points year over year, while Public Cloud's was 9.6%, down 20 basis points year over year [20][21] Market Data and Key Metrics Changes - Private Cloud saw double-digit year-over-year bookings growth in The Americas and EMEA, indicating broad-based strength [6] - Public Cloud services revenue grew 3% sequentially, remaining flat year over year, with a focus on higher-margin services [12][21] Company Strategy and Development Direction - The company is focused on building a sustainable business model that consistently delivers revenue, profit, and cash flow growth [17] - Strategic expansion into mid-market and enterprise segments is underway, with a strong emphasis on private cloud solutions [7][10] - The company is also investing in AI capabilities, with initiatives aimed at becoming a private AI infrastructure provider [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the private cloud business and the positive trajectory of bookings performance [31] - The company anticipates a flat revenue outlook for private cloud in Q3, while expecting growth in public cloud services [28][34] - Management highlighted the importance of operational discipline and working capital performance in driving free cash flow improvements [29] Other Important Information - The company launched several new products and enhancements, including Rackspace OpenStack and Rackspace CloudOps, aimed at improving service offerings [10][12] - A strategic alliance with Semaphore.ai was announced to enhance AI capabilities across business functions [15][54] Q&A Session Summary Question: Discussion on guidance and free cash flow - Management indicated that Q3 guidance is expected to be flat sequentially for private cloud, with an uptick anticipated in public cloud services [28][29] Question: Insights on private cloud services and public cloud performance - Management noted a favorable mix in private cloud bookings, with a shift towards larger deals and longer contract lengths [32][33] - Public cloud services are expected to grow in the second half of 2025, with a projected year-over-year growth of 10% to 20% in Q4 [34][35] Question: Investments in market traction and AI partnerships - Management stated that investments in mid-market and enterprise segments have already been made, with a focus on success-based CapEx [49] - The company is seeing traction in AI across both private and public cloud, with successful implementations in healthcare and retail sectors [51][54]

Disclaimer Forward-Looking Statements Rackspace Technology has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this presentation are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor prote ...

Revenue of $666 million in the Second Quarter, down 3% Year-over-YearPrivate Cloud Revenue was $250 million, down 4% Year-over-YearPublic Cloud Revenue was $417 million, down 2% Year-over-YearSecond Quarter 2025 Cash Flow From Operating Activities was $8 million; Cash Flow From Operating Activities was $127 million on a Trailing-Twelve-Month Basis SAN ANTONIO, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology, Inc. (Nasdaq: RXT), a leading end-to-end, hybrid cloud and AI solutions company, today announ ...

Core Insights - NetApp Inc. operates in the hardware and data infrastructure market, focusing on two key segments: Hybrid Cloud and Public Cloud [1] - Approximately 51% of the company's revenues come from the U.S., with the remainder generated from international markets [1] Segment Analysis - The Hybrid Cloud segment provides data storage solutions, which are essential for businesses transitioning to cloud-based infrastructures [1] - The Public Cloud segment complements the Hybrid offerings, allowing for scalable and flexible data management solutions [1]

Core Insights - BofA Securities analyst Brad Sills reported a decline in software spending growth intentions for the second half of 2025 and 2026, with expected growth rates of +9.9% for 2025 and +10.8% for 2026, down from previous estimates [2] Software Spending Trends - The survey indicates a healthy pipeline for new software projects in 2026, with Data Analytics regaining the top spending priority, followed by Cloud Communications and Videoconferencing, and Security in third place [3] - Categories with higher spending expectations include observability and financials/ERP, while front-office applications like CRM Sales, Marketing, and Support scored lower due to firms reassessing AI priorities [4] AI Investment Insights - Infrastructure and Back Office are identified as the top software categories for AI investment, with Back Office seeing the largest increase since the last survey [5] - After LLMs, Workday Inc was the most selected for Back Office investments, while Salesforce Inc led in front-office AI offerings [5][6] Vendor Preferences - Amazon, Microsoft, and Alphabet's Google were the most frequently selected vendors for AI in infrastructure, while Adobe Inc remains the market leader in AI investments for desktop applications [6][7] - Hiring expectations for 2025 are down, with recession fears impacting spending plans more than tariffs [7]

Financial Performance - Total revenue for Q1 2025 was $665 million, a decrease of 3% quarter-over-quarter and 4% year-over-year[7] - Non-GAAP gross profit was $132 million, down 6% both quarter-over-quarter and year-over-year[7] - Non-GAAP operating profit was $26 million, a decrease of 35% quarter-over-quarter but an increase of 83% year-over-year[7] - Non-GAAP loss per share was $(006), compared to $(002) in Q4 2024 and $005 in Q1 2024[7, 25] - Cash provided by operating activities was $13 million in Q1 2025[9] - Free cash flow was $4 million in Q1 2025[9] Segment Performance - Total Rackspace revenue was $665 million, with Private Cloud contributing $250 million and Public Cloud $416 million[8] - Private Cloud revenue decreased by 7% year-over-year, while Public Cloud revenue decreased by 2% year-over-year[8] - Private Cloud Non-GAAP gross margin was 371%, while Public Cloud Non-GAAP gross margin was 95%[8] Debt and Liquidity - Total principal balance of debt as of March 31, 2025, was $2474 billion[10] - Total debt, including unamortized debt issuance costs, debt premium, and debt discount, was $2787 billion[10] - Total liquidity, including cash and cash equivalents and the revolving credit facility, was $473 million[9] Outlook - Q2 2025 revenue is expected to be between $653 million and $665 million[16] - Q2 2025 Non-GAAP operating profit is expected to be between $25 million and $27 million[16] - Q2 2025 Non-GAAP loss per share is expected to be between $(004) and $(006)[16]

Financial Performance - For the quarter ended March 2025, Teradata reported revenue of $418 million, down 10.1% year-over-year, and EPS of $0.66, compared to $0.57 in the same quarter last year [1] - The reported revenue was below the Zacks Consensus Estimate of $425.28 million, resulting in a surprise of -1.71%, while the EPS exceeded the consensus estimate of $0.57 by +15.79% [1] Key Metrics - Annual recurring revenue (ARR) totaled $1.44 billion, matching the average estimate from two analysts [4] - Public Cloud ARR was reported at $606 million, surpassing the average estimate of $590.05 million [4] - Revenue from perpetual software licenses and hardware was $10 million, significantly above the estimated $4.85 million, reflecting a +25% change year-over-year [4] - Recurring revenue was $358 million, below the average estimate of $368.40 million, indicating a -7.7% change year-over-year [4] - Consulting services revenue was $50 million, slightly below the average estimate of $52.03 million, with a gross profit of -$3 million compared to an estimated $4.64 million [4] - Gross profit from recurring revenue was $250 million, slightly below the estimated $256.11 million [4] Stock Performance - Teradata shares have returned +15.1% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Investment Rating - The report maintains a cautious view on the technology sector, particularly on software and IT services, while highlighting structural growth opportunities in AI and semiconductors [26][31][44]. Core Insights - CIOs' IT budget growth expectations for 2025 have decreased to 5.8%, down 140 basis points from 2H24, with significant downward revisions anticipated in software and hardware spending [8][44]. - AI/ML/PA remains the top priority for CIOs, with 71% expecting AI/LLM projects to enhance IT investments in 2025, reflecting a 19 percentage point increase from 2H24 [53][70]. - The share of AI/LLM in total IT spending is projected to rise to 11.2% in 2025, up from 10% in 2H24, indicating a growing focus on AI-related investments [65][70]. Summary by Sections IT Budget Expectations - CIOs' average IT budget growth expectations fell to 5.8% for 2025, with a notable decline post-US tariff announcements, where expectations dropped from 6% to 2% [8][11][44]. - The survey indicates that 43% of CIOs foresee further downward revisions to their budgets following the tariffs, compared to 31% prior to the announcement [15][44]. AI and Technology Trends - AI/ML/PA has overtaken digital transformation as the most defensive area of IT spending, with significant increases in spending expectations [64][69]. - The report highlights that 34% of companies have initiated AI/LLM projects, with 39% expecting to have projects in production by 2025 [54][61]. Sector-Specific Insights - Software and IT services are expected to see the largest budget cuts, while semiconductors are anticipated to experience structural growth driven by AI, despite a delayed cyclical recovery [26][31][44]. - The hardware sector is expected to face reduced spending, particularly in PCs, while AI server hardware is projected to benefit from increased demand [33][37][70]. Preferred Companies - The report identifies several preferred companies within the AI and semiconductor sectors, including TSMC, MediaTek, and Beisen, which are expected to benefit from the ongoing AI trend [31][70][72]. - Caution is advised for companies with significant exposure to traditional tech and enterprise software, as macroeconomic uncertainties may hinder recovery [26][31][44].