Rackspace Technology, Inc. Stock Price, News & Analysis

Rackspace Technology (RXT) reported a record revenue of $744 million for Q2 2021, marking a 13% increase year-over-year. Core revenue grew 17% to $698 million. However, the company recorded a net loss of $(37) million or $(0.18) per diluted share, compared to $(33) million in Q2 2020. Non-GAAP EPS increased 14% to $0.24. Operating cash flow was strong at $106 million. Guidance for Q3 2021 anticipates revenue between $750 - $760 million.

Rackspace Technology (NASDAQ: RXT) has partnered with Arthrex to enhance the post-surgery experience through a digital communications portal built on Amazon Web Services (AWS). This HIPAA-compliant solution features customizable templates for surgeons and efficient patient data sharing. Significant benefits include a 68% reduction in patient calls, allowing healthcare providers to conserve resources. The platform also ensures secure management of private information, with encryption both in transit and at rest. The collaboration underscores Rackspace's commitment to improving healthcare delivery via cloud technology.

Rackspace Technology (RXT) has partnered with iPromote to migrate their infrastructure to Linux on AWS, achieving a 30% reduction in operational costs. This strategic move aims to modernize iPromote's infrastructure, reducing resource consumption and eliminating licensing fees. The project was partially funded by AWS, with Rackspace overseeing both the discovery and implementation phases. iPromote's COO noted that the collaboration enhanced their team’s knowledge and efficiency, presenting a strong opportunity for future innovation and stability.

Rackspace Technology (NASDAQ: RXT) has been recognized as a Top 15 Sourcing Standout by Information Services Group (ISG) in its 2Q 2021 Global ISG Index™. This distinction highlights Rackspace's performance in the Breakthrough 15 category, which ranks providers based on annual contract value won in the last year across various global regions. Rackspace's VP, Lisa McLin, emphasized the company's commitment to optimizing multicloud journeys and noted progress toward becoming the leading pure-play multicloud services provider.

Rackspace Technology (NASDAQ: RXT) announced $65-$70 million in new investments aimed at enhancing its cloud services and aligning resources with growth initiatives. These investments are expected to be funded by $95-$100 million in gross cost savings through enhanced automation and restructuring. The company revised its second-quarter financial guidance, projecting revenues of $741-$744 million and a non-GAAP EPS of $0.22 to $0.24. Additionally, second-quarter bookings are anticipated to reach around $258 million, marking a 6% increase over Q1 2021.

Rackspace Technology (NASDAQ: RXT) will announce its Q2 2021 financial results on August 11, 2021, after market close. CEO Kevin Jones and CFO Amar Maletira will conduct a conference call at 5:00 PM ET to discuss these results. Investors can access the call via Zoom or telephone. An audio replay will also be available on the company’s website. Rackspace specializes in multicloud technology services, helping customers with their cloud environments across various technology platforms.