Rackspace Technology, Inc. - RXT STOCK NEWS

Rackspace Technology (RXT) reported Q4 2024 results with revenue of $686 million, down 5% year-over-year. Full-year 2024 revenue was $2,737 million, declining 7% from 2023. The company's Q4 performance exceeded guidance for revenue, operating profit, and EPS.

Q4 Private Cloud revenue decreased 6% to $269 million, while Public Cloud revenue fell 4% to $417 million. The company reported a Q4 net loss of $60 million, or $(0.26) per diluted share, compared to net income of $28 million in Q4 2023. Operating cash flow was $54 million in Q4.

For full-year 2024, the company recorded a net loss of $863 million, with Non-GAAP Operating Profit at $106 million, down 33% year-over-year. Despite revenue declines, bookings grew 14% year-over-year, achieving record-breaking quarterly sales bookings.

Rackspace Technology (NASDAQ: RXT) has announced a transformative 10-year, multi-million-dollar partnership with Seattle Children's Hospital to provide comprehensive managed cloud solutions. The agreement focuses on transforming the hospital's data center operations and modernizing infrastructure for clinical and non-clinical workloads through Rackspace's Healthcare Cloud.

Through Rackspace's Cost and Productivity Optimization (CPO) assessment framework, the partnership aims to streamline IT operations, phase out legacy technologies, and create a standardized managed services model across private and public clouds. Rackspace will manage Seattle Children's workloads on its private cloud and major platforms like Azure and AWS.

The implementation is expected to deliver enhanced agility, reliability, scalability, and security while significantly reducing IT costs. These savings will allow Seattle Children's to maintain focus on their core mission of enhancing patient care and advancing pediatric research initiatives.

Rackspace Technology (NASDAQ: RXT) has successfully partnered with Dealer eProcess (DEP) to enhance their digital capabilities on Google Cloud. DEP, a leading automotive digital agency founded in 2006, needed to scale its infrastructure to support growing customer demands across North America and Europe.

The collaboration resulted in implementing a comprehensive cloud solution leveraging various Google Cloud services, including managed instance groups (MIGs), Filestore, MemoryStore, Cloud SQL, and Cloud Load Balancing. The migration from private cloud to Google Cloud has enabled DEP to efficiently manage millions of monthly visitors through their flagship product, Everest, an AI-powered platform integrating websites, marketing, and retail tools.

The new infrastructure allows DEP to rapidly deploy resources, handle traffic spikes, and quickly onboard new customers, particularly when adding hundreds of websites simultaneously through OEM partnerships. The solution has significantly improved DEP's operational efficiency and scalability, supporting their 99% customer satisfaction rating.

Rackspace Technology (RXT) has partnered with Munster Technological University (MTU) to launch QCloud, Ireland's first quantum cloud computing hub on AWS. The platform connects 13 research institutes and supports 11 major quantum computing projects across Ireland. QCloud was developed to democratize access to quantum computing resources and launched in February 2024 with funding from the EOSC Future project.

The implementation includes a centralized platform providing quantum computing access to eight universities, featuring AWS Control Tower landing zone and custom quantum cost control dashboard for Amazon Braket. Since its launch, QCloud has supported 12 startups and established Ireland as a quantum research hub. MTU expects to double its research projects in the coming year.

Rackspace Technology (RXT) has partnered with American Logistics to develop a cloud-native AWS environment for non-emergency medical transportation (NEMT). The new platform replaces American Logistics' legacy systems with a modern, scalable solution designed to handle complex healthcare transportation requirements.

The implementation features an event-driven microservices model deployed across six domains in Amazon Elastic Kubernetes Service containers, utilizing Amazon DynamoDB for operational data and Amazon SNS for event handling. The solution includes automated workflows and Infrastructure as Code through Terraform, enabling streamlined cloud infrastructure management.

The modernized platform has enhanced American Logistics' operational efficiency by automatically processing business rules and eligibility verifications while improving issue resolution and member experiences. The system leverages comprehensive trip histories and streamlined workflows to better serve Medicare and Medicaid beneficiaries requiring transportation services.

Rackspace Technology (NASDAQ: RXT) has signed a Memorandum of Understanding (MOU) with Dubai Health to explore establishing a Healthcare Digital Hub. The initiative will utilize AI and cloud technologies to optimize operational efficiency and provide tailored solutions for Dubai Health and its partners.

The partnership aims to enhance healthcare delivery and improve patient outcomes through digital innovation. According to Atif Al-Braiki, Chief Digital and AI Officer of Dubai Health, the Digital Hub will enable further optimization of their operations. CEO Amar Maletira highlighted this partnership as a significant step for Rackspace, aligning with a respected healthcare institution and marking a pivotal moment in the company's Middle East and Africa (MEA) growth strategy.

Rackspace Technology (NASDAQ: RXT) has announced it will release its fourth quarter 2024 financial results after market close on Thursday, February 20, 2025. The company will host a conference call on the same day at 5:00 PM ET, featuring CEO Amar Maletira and CFO Mark Marino, who will discuss the company's financial performance.

Interested parties can access the conference call through a live webcast available on Rackspace's IR website. Additionally, participants can pre-register to obtain a dial-in number and PIN for direct call access.

Rackspace Technology (NASDAQ: RXT) announced significant board and executive changes while reaffirming its Q4 2024 financial guidance. Jeffrey Benjamin has been appointed as Independent Chairman, replacing David Sambur, while Vikram Mahidhar, an AI and data expert from Apollo Global Management, joins the board replacing Susan Arthur.

The company also announced that Brian Lillie, President of Private Cloud, will be departing, with CEO Amar Maletira serving as Interim Leader for the Private Cloud business until a successor is found. Lillie will remain in an advisory capacity until April 5, 2025.

The company reported strong performance with record-breaking quarterly sales bookings in Q4 2024, achieving high double-digit growth both year-over-year and sequentially, marking the highest bookings since the creation of their two business units in early 2023.

Rackspace Technology (NASDAQ: RXT) has released its '2025 State of Cloud Report', revealing significant shifts in cloud strategy among IT leaders. The survey of 1,400+ IT decision-makers shows that over 90% plan major cloud strategy changes in the next two years, with 48% prioritizing hybrid cloud deployment.

Key findings include that 69% of organizations have considered repatriating workloads from public to private clouds, citing security, compliance, and cost savings. Only 16% of respondents have fully integrated cloud adoption into their business strategy. The survey also highlights that 84% of respondents are integrating AI with their cloud strategies, primarily to enhance operational efficiency (49%) and improve data analytics (45%).

Major challenges include talent shortages (40%) and insufficient budgets (37%). Future priorities include Cloud Enabled 5G services (50%), Cloud Native AI/ML Services (47%), and Cloud Based Robotics (40%).