Rackspace Technology Announces Board and Executive Transitions While Re-Affirming Guidance
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) ha annunciato importanti cambiamenti nel consiglio e nell'esecutivo, confermando le previsioni finanziarie per il quarto trimestre del 2024. Jeffrey Benjamin è stato nominato Presidente Indipendente, sostituendo David Sambur, mentre Vikram Mahidhar, esperto di intelligenza artificiale e dati di Apollo Global Management, entra a far parte del consiglio al posto di Susan Arthur.
L'azienda ha anche annunciato che Brian Lillie, Presidente del Cloud Privato, lascerà l'incarico, con il CEO Amar Maletira che assumerà il ruolo di Leader Interinale per il business del Cloud Privato fino alla nomina di un successore. Lillie rimarrà in un ruolo di consulenza fino al 5 aprile 2025.
L'azienda ha riportato una forte performance con prenotazioni di vendita mensili record nel quarto trimestre del 2024, raggiungendo una crescita a doppia cifra sia rispetto all'anno precedente sia sequenzialmente, segnando i più alti volumi di prenotazione dalla creazione delle due unità commerciali all'inizio del 2023.
Rackspace Technology (NASDAQ: RXT) anunció cambios significativos en la junta y en la dirección, reafirmando sus proyecciones financieras para el cuarto trimestre de 2024. Jeffrey Benjamin ha sido nombrado Presidente Independiente, reemplazando a David Sambur, mientras que Vikram Mahidhar, un experto en inteligencia artificial y datos de Apollo Global Management, se une a la junta en reemplazo de Susan Arthur.
La compañía también anunció que Brian Lillie, Presidente de Nube Privada, dejará su puesto, con el CEO Amar Maletira asumiendo el rol de Líder Interino para el negocio de Nube Privada hasta que se encuentre un sucesor. Lillie permanecerá en un rol consultivo hasta el 5 de abril de 2025.
La empresa reportó un fuerte desempeño con reservas de ventas trimestrales récord en el cuarto trimestre de 2024, logrando un alto crecimiento de dos dígitos tanto interanual como secuencial, marcando las reservas más altas desde la creación de sus dos unidades de negocio a principios de 2023.
랙스페이스 테크놀로지 (NASDAQ: RXT)는 이사회와 경영진의 중요한 변화를 발표하며 2024년 4분기 재무 전망을 재확인했습니다. 제프리 벤자민이 독립 의장으로 임명되었으며, 데이비드 샘버를 대신하게 되었고, 빅람 마히드하르, 아폴로 글로벌 매니지먼트의 AI 및 데이터 전문가가 수잔 아서의 자리를 대신하여 이사회에 합류하게 됩니다.
회사는 또한 브라이언 릴리, 프라이빗 클라우드 사장이 떠나게 되며, CEO 아마르 말레티라가 후임자가 정해질 때까지 프라이빗 클라우드 비즈니스의 임시 리더로 활동할 것이라고 발표했습니다. 릴리는 2025년 4월 5일까지 자문 역할을 유지할 것입니다.
회사는 2024년 4분기에 기록적인 분기 매출 예약 성과를 보고하며, 전년 대비 및 순차적으로 높은 두 자릿수 성장을 달성하여 2023년 초 두 개 사업 부문의 설립 이후 가장 높은 예약 성과를 기록했습니다.
Rackspace Technology (NASDAQ: RXT) a annoncé des changements significatifs au sein du conseil d'administration et de la direction, tout en réaffirmant ses prévisions financières pour le quatrième trimestre 2024. Jeffrey Benjamin a été nommé Président Indépendant, remplaçant David Sambur, tandis que Vikram Mahidhar, expert en intelligence artificielle et données d'Apollo Global Management, rejoint le conseil d'administration en remplacement de Susan Arthur.
L'entreprise a également annoncé que Brian Lillie, Président du Cloud Privé, quittera son poste, le PDG Amar Maletira agissant en tant que Leader Intérimaire pour l'activité Cloud Privé jusqu'à ce qu'un successeur soit trouvé. Lillie restera en tant que consultant jusqu'au 5 avril 2025.
L'entreprise a rapporté de solides performances avec des ventes mensuelles record au quatrième trimestre 2024, atteignant une forte croissance à deux chiffres tant en glissement annuel qu'en séquentiel, marquant les plus fortes réservations depuis la création de leurs deux unités commerciales au début de 2023.
Rackspace Technology (NASDAQ: RXT) gab bedeutende Veränderungen im Vorstand und in der Unternehmensführung bekannt und bestätigte die finanzielle Prognose für das vierte Quartal 2024. Jeffrey Benjamin wurde zum unabhängigen Vorsitzenden ernannt, um David Sambur zu ersetzen, während Vikram Mahidhar, ein KI- und Datenexperte von Apollo Global Management, dem Vorstand beitritt und Susan Arthur ersetzt.
Das Unternehmen gab außerdem bekannt, dass Brian Lillie, Präsident des Private Cloud, die Firma verlassen wird, während CEO Amar Maletira bis zur Ernennung eines Nachfolgers als interimistischer Leiter für das Private Cloud-Geschäft fungiert. Lillie wird bis zum 5. April 2025 in beratender Funktion bleiben.
Das Unternehmen berichtete von einer starken Leistung mit rekordverdächtigen Verkaufsbuchungen im vierten Quartal 2024, wobei sowohl im Vergleich zum Vorjahr als auch quartalsweise ein starkes zweistelliges Wachstum erreicht wurde, was die höchsten Buchungen seit der Gründung ihrer beiden Geschäftseinheiten Anfang 2023 markiert.
- Record-breaking quarterly sales bookings in Q4 2024
- High double-digit growth in bookings both YoY and sequentially
- Addition of AI and data expertise to board with Vikram Mahidhar appointment
- Departure of Private Cloud President Brian Lillie requiring interim leadership
Insights
The board and executive transitions at Rackspace Technology reveal strategic positioning towards AI-driven growth. The appointment of Vikram Mahidhar, with his extensive AI and digital transformation expertise from Apollo Global Management, signals a deliberate pivot towards artificial intelligence capabilities. His experience in building AI businesses and recognition as an influential data leader suggests Rackspace is serious about integrating AI into its core offerings.
The departure of Brian Lillie from the Private Cloud division, while maintaining continuity through CEO Maletira's interim leadership, comes at a important time as the company reports record-breaking quarterly sales bookings. The high double-digit growth in Q4 bookings indicates strong market demand and successful execution of the company's hybrid cloud strategy.
The reaffirmation of Q4 2024 guidance provides stability during these transitions, suggesting the organizational changes are well-planned rather than reactive. The board restructuring, particularly bringing in AI expertise while maintaining financial oversight through Jeffrey Benjamin's leadership, positions Rackspace to capitalize on the AI transformation wave in cloud services.
The strategic significance of appointing an AI expert to Rackspace's board cannot be overstated in today's cloud services landscape. Mahidhar's dual expertise in AI implementation and business transformation addresses a critical market need as enterprises increasingly demand AI-enabled cloud solutions. This move positions Rackspace to better compete with major cloud providers who are aggressively expanding their AI offerings.
The record-breaking bookings in Q4 2024 suggest strong market validation of Rackspace's hybrid, multicloud strategy. The high double-digit growth in bookings, both sequentially and year-over-year, indicates successful market penetration and could signal improved revenue visibility for upcoming quarters. The Private Cloud leadership transition, while potentially disruptive in the short term, opens opportunities for fresh perspectives in a rapidly evolving market segment.
New board appointment brings AI and data expertise to support Rackspace's growth strategy
SAN ANTONIO, Texas, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Rackspace Technology® (NASDAQ: RXT), a leading end-to-end hybrid, multicloud, and AI technology solutions company, today announced Board and executive transitions. The Company also re-affirmed financial guidance for the fourth quarter 2024, as previously provided in a press release issued on November 12, 2024.
Jeffrey Benjamin will succeed David Sambur as Independent Chairman of the Board. Benjamin has been on the Rackspace Board since 2016 and chairs the Audit Committee. Benjamin has over 25 years of experience in investment management and has served on the boards of American Airlines Group and Caesars Entertainment Company, among others. He has also served on the board of Involta for 10 years prior to its sale to Carlyle in 2022. Sambur, Partner and Co-Head of Equity at Apollo Global Management, stepped down from the Rackspace Board after nine years of dedicated service.
In addition, Vikram Mahidhar will be joining the Rackspace Board. Mahidhar has led the digital, data, and artificial intelligence team at Apollo Global Management as an Operating Partner within the Apollo Portfolio Performance Solutions group since 2021. He also co-leads Apollo’s Artificial Intelligence strategy. Prior to joining Apollo, Mahidhar was a Senior Vice President at Genpact leading the global digital transformation business across industry verticals, including building the artificial intelligence business at RAGE frameworks prior to its acquisition by Genpact. Prior to Genpact, he served in various leadership roles with Deloitte in strategy and innovation. Mahidhar has been recognized by Data IQ as 2023 Top 100 Most Influential Leaders in Data and he received the AI100 Award by MachineCon in 2023. He also serves on the board of Cengage Group. Mahidhar replaces Susan Arthur, a director since 2020, who stepped down from the Rackspace Board to focus on other responsibilities.
"The Rackspace Board thanks David and Susan for their indispensable guidance and leadership over the years, and I wish them success going forward," said Benjamin. "I want to welcome Vikram, who brings a wealth of executive leadership and artificial intelligence expertise and look forward to continuing to accelerate Rackspace's AI journey."
The Company also announced that Brian Lillie, President of Private Cloud, will be moving on from his position to focus on personal commitments. Rackspace Chief Executive Officer Amar Maletira will assume the role of Interim Leader for the Private Cloud business. The Company has initiated a search for Lillie's successor. Lillie is expected to remain with the Company in an advisory capacity until April 5, 2025.
"I would like to thank Brian for his leadership over the past two years in laying the product, technology, and organizational foundations for growth and profitability in our Private Cloud business. I am grateful for his partnership and contributions, and wish him the best in his future endeavors," said Maletira. “I’m thrilled with our sales performance as we closed fiscal year 2024 on a high note, achieving record-breaking quarterly sales bookings in the fourth quarter at the company level—the highest since the inception of our two business units at the start of fiscal 2023. The company’s fourth-quarter bookings demonstrated impressive high double-digit growth, both year-over-year and sequentially.”
Outlook
Concurrently with the foregoing announcement, Rackspace Technology reaffirms its financial guidance for the fourth quarter 2024, as provided in a press release issued on November 12, 2024.
About Rackspace Technology
Rackspace Technology is a leading end-to-end multicloud technology solutions company. We can design, build, and operate our customers' cloud environments across all major technology platforms, irrespective of technology stack or deployment model. We partner with our customers at every stage of their cloud journey, enabling them to modernize applications, build new products, and adopt innovative technologies.
Forward-looking Statements
Rackspace Technology has made statements in this press release 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 press release 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 protections provided thereunder. These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, outcome of regulatory proceedings, market conditions, and other matters. Any forward-looking statement made in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as “guidance,” “outlook,” “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. Rackspace Technology cautions that these statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this press release, including among others, risk factors that are described in Rackspace Technology, Inc.’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein.
IR Contact
Sagar Hebbar
Rackspace Technology Investor Relations
ir@rackspace.com
PR Contact
Natalie Silva
Rackspace Technology Corporate Communications
publicrelations@rackspace.com
FAQ
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