Rackspace Technology, Inc. - RXT STOCK NEWS

Rackspace Technology has successfully deployed one of the largest Epic Electronic Health Record (EHR) systems for AdventHealth, covering 53 hospitals across nine states. The implementation scales to over 38,000 concurrent users, making Rackspace the largest third-party Epic hosting provider globally. The deployment includes SLA-backed managed services, a predictable cost model, and cloud adjacency for third-party applications. The migration was completed in under 2 hours, with AdventHealth reporting notable performance improvements since going live. The system serves over 8 million patients annually and includes hosting and management of nine additional strategic applications in AdventHealth's IT portfolio.

Rackspace Technology reported Q3 2024 results with revenue of $676 million, down 8% year-over-year. Private Cloud revenue decreased 14% to $258 million, while Public Cloud revenue fell 3% to $418 million. The company posted a net loss of $187 million, or $(0.82) per diluted share, improving from a net loss of $227 million in Q3 2023. Non-GAAP Operating Profit was $34 million, down 25% year-over-year. The company ended the quarter with $157 million in cash and provided Q4 2024 guidance projecting revenue between $668-$680 million.

Rackspace Technology (NASDAQ: RXT) has joined Amazon Web Services' (AWS) new Generative AI Partner Innovation Alliance. This collaboration aims to expand the AWS Generative AI Innovation Center (GenAIIC), a program launched in June 2023 that helps customers implement generative AI solutions. The GenAIIC has already supported thousands of customers, with over 50% of proof-of-concept solutions now in production. Through this alliance, Rackspace will utilize GenAIIC's methodology to help global customers access resources for proof-of-concept and production implementations, leveraging their Foundry for AI by Rackspace (FAIR™) platform to accelerate responsible AI adoption.

Rackspace Technology (NASDAQ: RXT) has announced the expansion of Rackspace Spot with a new geographic location and an on-demand GPU-as-a-Service powered by NVIDIA accelerated computing. The service includes a new server class featuring the NVIDIA H100 Tensor Core GPU, offering enhanced computational capabilities for AI, machine learning, and data analytics workloads. The platform is hosted in their new SJC3 data center in Silicon Valley, marking their seventh global location. According to IDC, AI datacenter capacity is projected to grow at a 40.5% CAGR through 2027.

Rackspace Technology (NASDAQ: RXT) has signed a Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to deliver comprehensive cloud and AI services globally. The partnership includes significant investment in Rackspace's Migration and Modernization Center of Excellence and introduces the Rackspace Rapid Migration Offer (RRMO) for expedited data center migrations. The collaboration will leverage AWS's foundation models through Amazon Bedrock and Rackspace's FAIR™ platform for generative AI solutions. A notable success case is Convera, which automated its customer support operations using these technologies, reducing processing times from hours to minutes. Starting early 2025, Rackspace will launch AWS-validated generative AI industry accelerators in AWS Marketplace.

Rackspace Technology (NASDAQ: RXT) has achieved the AWS Small and Medium Business (SMB) Competency, demonstrating its expertise in providing tailored AWS solutions for SMB customers. The company offers comprehensive services including cloud migration, application modernization, and managed cloud services through its Rackspace Elastic Engineering team of AWS-certified experts.

The achievement validates Rackspace's ability to address SMBs' unique needs, considering their deployment models, IT capabilities, and financing preferences. A notable success case is Sharestates, a real estate investment marketplace, which experienced improved customer experience and optimized operations after migrating to AWS with zero downtime.

Rackspace Technology (NASDAQ: RXT) announced it will release its third quarter 2024 financial results after market close on Tuesday, November 12, 2024. CEO Amar Maletira and CFO Mark Marino will host a conference call at 5:00 PM ET on the same day to discuss the company's performance. Interested parties can access the webcast through Rackspace's IR website or participate via phone by pre-registering for dial-in information.

Rackspace Technology (NASDAQ: RXT) has been recognized as a leader in four categories of the 2024 ISG Provider Lens™ AWS Ecosystem Partners Report for the US. The company excelled in Professional Services, Managed Services, Data Analytics, AI and ML, and SAP Workloads. Rackspace boasts over 2,700 AWS certifications worldwide and 18 AWS competencies, positioning it among 13 Leaders in the AWS Partner Ecosystem. ISG highlighted Rackspace's mature technology offerings and talent assets through the AWS Cloud Adoption Framework, particularly noting their strong cloud engineering teams capable of implementing compliant and well-governed data solutions.

Rackspace Technology has strengthened its commitment to the global OpenInfra Foundation by joining its Board of Directors and becoming an OpenStack community Platinum Member. This highest level of membership allows Rackspace to influence the strategic direction of the OpenInfra Foundation community and the industry. The company, which partnered with NASA in 2010 to launch OpenStack, cites increasing demand for OpenStack due to organizations seeking multicloud flexibility, hybrid infrastructure solutions, and cost-efficient cloud consumption.

OpenStack's advantages include empowerment, scalability, flexibility, automation, performance, and interoperability. It's experiencing a resurgence due to expanding demands for data sovereignty, privacy, and cost control. Industries leveraging OpenStack include retail, pharmaceuticals, and banking. Rackspace Technology aims to expand its contributions to the OpenInfra community through this renewed commitment.