Rackspace Technology, Inc. - RXT STOCK NEWS

Rackspace Technology (Nasdaq: RXT) reported its Q2 2024 results, showing a revenue decline of 8% year-over-year to $685 million. Private Cloud revenue decreased by 17% to $260 million, while Public Cloud revenue fell 2% to $425 million. Despite the revenue drop, the company saw improvements in profitability, with a net income of $25 million compared to a net loss of $27 million in Q2 2023. Earnings per diluted share were $0.11, up from a loss of $0.13 per share last year. However, Non-GAAP Operating Profit decreased by 42% to $23 million. The company provided Q3 2024 guidance, projecting total revenue between $668-$680 million and a Non-GAAP Loss Per Share of $(0.06) - $(0.08).

Rackspace Technology (NASDAQ: RXT), a leading provider of hybrid multicloud and AI solutions, has announced it will release its second quarter 2024 financial results on Thursday, August 8, 2024, after market close. The company will host a conference call on the same day at 5:00 PM EDT to discuss the results.

Key details for the earnings call include:

• CEO Amar Maletira and CFO Mark Marino will lead the discussion
• Toll-free number for USA & Canada: (800) 715-9871
• International toll number: (646) 307-1963
• Conference ID: 4653491

Investors can access the live webcast or replay on Rackspace's IR website.

Rackspace Technology announced that Basware, a leading provider of accounts payable automation solutions, has successfully leveraged AI to enhance its Extract, Transform, Load (ETL) coding process. Basware partnered with Rackspace to experiment with training code-generating language models using Amazon Bedrock and AWS. This collaboration aimed to accelerate customer onboarding and time to value.

Basware's proprietary language, AnyERP, was fine-tuned into an AI model to generate code snippets based on natural language queries. The project improved AI accuracy in generating ETL code from 60% to 90%. This innovation enables Basware to accelerate time to value for customers by 50%, allowing them to focus more on business operations rather than technology implementation.

Rackspace Technology (NASDAQ: RXT) has been named a Major Player in the IDC MarketScape: Worldwide Cloud Professional Services 2024 Vendor Assessment. This recognition highlights Rackspace's holistic approach to cloud strategy and implementation expertise, reflecting its capabilities in managing clients' cloud operations for over 15 years. The IDC MarketScape report praises Rackspace's Elastic Engineering capabilities, which align with clients' needs for cloud migration and modernization, and emphasizes its workload-aware focus on business outcomes. CEO Amar Maletira stated that this distinction underscores Rackspace's flexible operating model and comprehensive cloud service offerings.

Rackspace Technology has announced a strategic partnership with Mendix, a leader in low-code application development, to enhance its Rapid Application Development (RAD) offering. This collaboration integrates Mendix's low-code platform with Rackspace's managed support for both public and private cloud environments. It enables access to major cloud providers and leverages Rackspace's AI capabilities through Foundry for AI (FAIR). The partnership aims to accelerate digital transformation for businesses of all sizes, offering flexibility, scalability, and security. Rackspace will provide Mendix's customers with managed services, while Mendix will gain access to Rackspace's extensive market reach in SMB and enterprise sectors across 120 countries.

Rackspace Technology (NASDAQ: RXT) celebrates the first anniversary of its Foundry for AI by Rackspace (FAIR) initiative. In its inaugural year, FAIR has successfully implemented AI solutions in over 40 companies across various sectors, including finance, real estate, education, and government. The program has secured multiple certifications on Microsoft Azure, AWS, and Google Cloud.

Key milestones include the FAIR Learn program, which saw over 95% of employees achieve AI-ready certification, and the launch of AI tools like Rackspace ICE and RITA to enhance productivity and compliance. FAIR has also developed an AI-optimized private cloud platform powered by NVIDIA. Notable client deployments include solutions for GLP Capital Partners and Straits Interactive.

Rackspace aims to continue driving AI innovation, focusing on responsible AI practices and expanding partnerships with leading cloud providers.

On June 12, 2024, Rackspace Technology (NASDAQ: RXT) announced its recognition as a Leader in the Frost Radar for Healthcare Enterprise Cloud Managed Service Providers, 2024. Frost & Sullivan evaluated over 150 global managed cloud service providers, selecting 13 based on growth potential and innovation. Rackspace was highlighted for its top-tier services in infrastructure, IT performance, application and service management, cybersecurity, data management, and process optimization.

Rackspace's Healthcare private cloud offers secure storage, processing, sharing, and analysis of clinical information. In 2023, Rackspace introduced several key services, including Rackspace Managed Cloud (RMC), Rackspace Intelligent Co-workers for the Enterprise (ICE), and a Hosted Private Cloud Generative AI Solution in collaboration with Dell and NVIDIA. The company also received the IoT Innovators Award from CRN in November 2023.

Rackspace continues to innovate in AI, edge computing, and cybersecurity, supporting mission-critical applications like Epic in the cloud. Its strategic partnerships and diversification into emerging technologies position it for growth in the global market.

Rackspace Technology (NASDAQ: RXT) announced the successful migration of Sharestates' infrastructure to Amazon Web Services (AWS), enhancing user experience and operational performance. This move modernized Sharestates' infrastructure, improving security, efficiency, scalability, and customer experience. The migration, completed over a weekend using AWS's Landing Zone Accelerator, allowed for a seamless transition without downtime. Key benefits include faster user interface experience, improved internal reporting, faster borrower processing speed, enhanced web application performance, and improved banking transfer speeds. Sharestates, an online marketplace for real estate lending solutions, has funded over $3 billion in projects since 2014.

Rackspace Technology (NASDAQ: RXT) collaborates with Young Hollywood to revolutionize its video content management using Google Cloud solutions. This partnership has significantly enhanced video processing speed, data accessibility, and monetization opportunities. By implementing the Google Cloud Video Intelligence API, Young Hollywood can now process videos ten times faster and access rich metadata for improved searchability and analysis. The migration included over 5,000 video files and optimized the infrastructure for better AI utilization. The collaboration aims to explore further enhancements in search functionalities and monetization strategies.