RXT - Earnings call transcript Q3 2021 | Rackspace Technology, Inc.

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Joseph Crivelli

Good afternoon, and welcome to Rackspace Technology's Third Quarter 2021 Earnings Conference Call.

As a reminder, today's call is being recorded. Kevin Jones, our CEO; and Amar Maletira, our President and CFO, are joining us today. The slide deck we will refer to today can be found on our IR website. On Slide 2, certain comments we make on this call will be forward-looking. to differ. uncertainties, subject actual could are to results statements risks which and cause These of risks discussion filings. A these our included SEC in and uncertainties is Technology information update except Rackspace is obligation the as law. on call, the by required no assumes presented to

directly These financial non-GAAP both available measures. prepared and website. included of the your respective provide in in our to rules, tables believe over turn GAAP and certain now take information our call reconciliations we've with the of questions. these SEC to to their are earnings After I'll our [Operator comparable remarks, provided will certain release on these includes further presentation, most which reconciliation we are Instructions]. measures, measures which presentation our to and measures Our accordance a we useful adjustments investors. In Kevin.

Kevin Jones

financial I'll Good quarterly detail studies, then joining Amar discuss will customer highlights and the afternoon, for into case and on some and results. thanks go us. touch on

Slide X. Turning to

solutions As in a best-in-class, pure-play is company, Rackspace market that a is booming. positioned well Technology cloud

grew spending our in grew And things XXXX. next That and with and X incremental alone, past Cloud grow AWS, to AWS XXXX, Google new $XX to $XX cloud third that again their billion. billion in Azure year, XX%, cloud hyperscaler billion. In have cloud in grow new grown was partners will spending approximately grew total context, estimate Azure to is $XX partners, the years, revenues expected Cloud analysts quarter put our Google tenfold. Over XX%. Microsoft To the XX%

businesses, with need midsized the are in to local the business especially customers they journey. $XXX Rackspace the and grew to this. partner cloud operating wherever pace at Revenue, commercial is choice, row. and non-GAAP market-leading help financial core Technology solidify to and state all third In change, of quarter several They position. operating poised EPS profit be and third of move grappling their clip. are in governments. delivered cash and they for their their year-over-year As quarter, our We The non-GAAP of the revenue, we a strong steps million over a took healthy results reflect flow cloud,

flow of first million. the three operating quarters excess cash $XXX XXXX, now of in is For

new We that service continue the to introduce get their and our out customers cloud offerings timely of product help most investments.

Rackspace-developed the customers new elastic it solution have and Freedom, to manage storing adoption, a we multiple has gives new Rackspace new robust increase Data And model fast storage areas. about fluidity that seen expanded option and cloud-adjacent Our cloud launch engineering a several technology are very we across platforms. to of on based excited data costs

puts of base finger the on market. customer our broad cloud the Our pulse

driven those in a massive at service especially businesses, a cloud and smaller insights. is customer space Our diverse Rackspace to addresses customers. is hear every a development market by is wide this, Because day about Freedom we a midsized targeted key from ears close base, Data so such advantage. point pain Having and our that Rackspace strategy and of our the see

comprehensive first our report more the later markets. talk presentation. launched we public ESG the I'll month, this this returning earlier front, in ESG since the On to about

Rackers. talent. working by country Work. remotely at culture most valuable were We employer In for the workplace as Latinas delivering in our the Parents engaged are results. retain Rackspace These third and us one Latina in top the quarter the a by XX an by recognized of Mothers, we Top differentiate Place most and are Fathers employees and Work Style, This a Achievers, are to alone, employees workplaces for choice war XX as to of Parents investments prospective our Technology current investing in attract for assets and dedicated helps

X. Slide Turning to

was revenue revenue and non-GAAP deliver to compared XX%. X%, operating Total core revenue up XX% to was up last EPS double into digits. up Non-GAAP third up continue profit year's We quarter. and growth was was XX% well the

We new the expect On quarter, were quarter for partnerships companies is believe bookings with a strong $X X, fourth third Cloudflare year to such and our business forge strategy Datadog, Accordingly, Slide Snowflake, we our to for as bookings strengthened our In quarter, third key cloud billion. of new target in sales Platform cloud partner hit bookings best-in-class QX. $XXX that X growth Rackspace we solutions customers. Technology and will million. a in bring relationships solutions the leading full

quarters. Datadog, working are Partner over closely sales the investing named them go-to-market With develop our motions. recently a were engineers We in Gold to staffing team with of we next Tier we're Snowflake-certified up few mutual and

Engineering tailored optimize our developing Elastic are a platforms. customers for service help Cloudflare security and to manage We their customize,

As our partner most Cloudflare I channel call, earnings priority noted is a on recent XXXX. in development for

across this we invested SaaS-managed and remember, public clusters X, may year, earlier Kubernetes edge, you and private builds As operates in platform that clouds. Platform a

go-to-market bringing make we solutions public X, to Kubernetes private these managed growth Platform these joint partnerships to simple scale. are exciting are and cloud and our for market opportunities and alongside operate solutions Technology own, creative to help like For cloud Strong offerings. Rackspace

its studies Now the delivers share to customers. case I'd value that like Rackspace some demonstrating for Technology

core The application Rackspace focus customers immediate partner solution, the contract their on BFC Essentials, helped physical including money support exchange allowing in a X, and its comprehensive international preparing in medical helping in privately-held At payment has Rackspace around providing expansion. orthopedic Security post-surgery of a uplift for developed a device management Arthrex experience. per field Slide second, by Arthrex the Group wanted and a performance based Fintech is as range selected innovative such money transfers, a On customer transactions it arthroscopic is XX,XXX while a over and measures is pioneer platform, a and a to and create does from Slide support addressing for of we Using Arthrex saw AWS procedures. to the products flexible and and AWS, world. to Bahrain, surgery company and critical a what consultancy of digital processed to ongoing providing Technology X, services. and experience just move long-term to in a improved download and best, give Florida. company modernize patients reimagine metadata creating built as administrative reduced Rackspace communications that the surgeons for AWS its templates and populate Middle this stable months, from major demand. quickly a business satisfaction the it Technology to mobile First, cloud technology. and an both and foreign communications migrating increased BFC patient medical Arthrex's one XX available BFC the alongside model, transformation company the surgeons. portal based for of BFC core accelerating better needed will digital media access recommendation portal that applications could on solutions. customizable currency modernize to In East. app on Group on make solution burden a On Group global imaging

is It is in ESG XXX% Rackspace every how natural the and report an for XX. we Rackspace since a public do comprehensive professionals me, day. something of and because ESG its our an leadership to industry. parcel Slide is ESG team our part in in of extremely always first rooted steward the week, to is XXXX. resources we our in planet's and committed Technology published going the talented report The Technology ESG has high existence company not been being of DNA choice technology Turning Last of priority it it's of is fashionable. company's Directors. say, Board that demonstrates and executive for Suffice part work a thoughtful our and to as employer most investing

it publicly-traded and company. the transparent focus in the first This good and in our into ESG customer-focused our with on Additionally, for highlights force improved report being is our we shareholder step providing communities serve transparency constituents a a simply initiatives.

be this in shareholders improvement visible be our which on you and to continuous forward. area, the move website. fully read will to can and devoted found Report, are to encourage those we I download as ESG efforts We

through will Now the Amar? Amar take financials. you

Amar Maletira

Non-GAAP Slide revenue recaps thank joining profit and $X.XX, our financial $XXX up non-GAAP a XX% mid- you, million, XX% Kevin, range high-teens year-over-year. for was increase. share to operating last from was for per call grew Non-GAAP expected was margin quarter. our results earnings the today. million, XX XX.X%, year-over-year XX% everyone, and was Core to Revenue $XXX year-over-year Thank within million. our up X% you, $XXX operating year.

Let me now quarter touch bookings. on third the

still the while we adding logos. The market for fiscal incentive at our and expense working strategy these bookings noted, equation towards new to profitability the in we In have Kevin to establish won for new profitability. higher massive with selectively smaller run in lower our is fourth a stages which of We pivoting sales higher before towards billion we strategy. deal, fast-growing equation and with and year. XXXX, our the in tilted grow to large infrastructure a XXXX. customer As but early signed years XXXX, this This some sales This the this been our which land-and-expand it third as go-to-market revenue focused the the and drives this target the the deals we competitive weighted the time were hit deepen to changed aligned to contracts bookings were early gross Through of relationships, equation quarter, year-end. side XXXX have start $XXX million, expect had bookings. plans relatively opportunity because have $X with quarter ago, of customers, has land of than in part two we start and we bookings the cloud customers. we have more beachheads on-boarded Since heavily we on XXXX. of XXXX, new followed expect also dollar bookings, At towards we

with XXXX. managed So cloud we details that put XX a point new provides final we customers Slide additional this, business on-boarded our in on the have on to grown how public

all demonstrates, these margins digits the and the ranges to on from As expand strategy quarters for their land our is into this and well Technology XXX sold working. three past business Customers cohorts XXXX have bookings in increase Rackspace basis four XXX double grown over the points. with slide gross

In have strategy. gross new year, bookings customers we sold the on-boarded. on margins onboard our growth This go-to-market seen these Last validates quarter logos. cumulative and every we were addition, increasing accelerator to pressed since

and our services high-value each installed benefiting from us. quarter, Now base customers are from additional buy the we

it's continues our year-over-year. our is total of XX% revenue while mix, the Platform vast represent to business. of Slide revenue XX at growth our the as XX% year-on-year, grow and at continue to majority XX% our Looking the early. components market market declined broaden Data XX% service evolves is services, and business, the This our application rapid ahead, grew to only segment with in wide and legacy deepen a Security a plan in opportunity offerings open driven once-in-a-lifetime the XX% year-over-year. investing Multicloud space. Services take pace. mid-XX% and it We OpenStack, our of the in portfolio a range segment XX%, Multicloud grew well Growth advantage of which total of maximum at in are offerings now of & transition revenue. Apps XX% this shows of as X% still and to strength coupled represents of we growth and to now revenue Multicloud the Cross will be businesses. between cloud as market revenue by

and quarter intensity which quarter. another in $XXX Slide was in $XXX on and million. cash This from million, for cash year-to-date shown was Year-to-date, flow intensity CapEx, CapEx As was was GAAP up CapEx the to was we from in cash million. million, from cash third operations quarter $XXX cash flow flow, operations X% flow. the third had total exceeded CapEx million. as flow cash GAAP splits from cash $XX $XXX second CapEx X%. is $XX which $XX $XX was million, Free million a operating million, minus row strong Total the Cash free defined operations the was cash quarter. total in cash XX,

the We revolving at cash bringing CapEx expect On unused in to credit the X% to the XX, X% we $XXX quarter. end. cash our have facility, million XXXX, for liquidity of we Slide million had towards Total quarter year fiscal range. increased total intensity $XXX guidance fourth $XXX million. For

million, to $XXX revenue million to earnings $XXX per expect range million $XXX in non-GAAP operating of of in the and million non-GAAP to million, revenue range of We profit $XXX $X.XX $XXX the of share $XXX core million to $X.XX.

also shares. to other XXX tax average expenses million non-GAAP of $XX XX% and We million XXX rate and expense non-GAAP expect $XX million to non-GAAP of shares million weighted of

Q&A. the for the Joe, for the queue year. up take full you of computes your this please side what ahead right the audience On see slide, With to go that, questions. and we'll

Joseph Crivelli

Thanks, from McVeigh Huang and at Amar. from Kevin first Suisse; Our [Operator Credit question comes Tien-Tsin Instructions] JPMorgan.

on You're deck.

Kevin Damien

if booking much congratulations on the could into give quarter XXXX Thanks after Great. you deal us well. settles dimensionalize and end, so as congratulations of was I sense you wonder a help on results. results. awarded how the the large And again, that

Kevin Jones

much, you Kevin Thank very Jones It's Kevin. here.

the be cloud selective deals in which our a would So very big and of solutions as strategy. we pursue. product look, new standpoint said a and provider, deal standpoint on we wheelhouse this is our in into from fits we'd deal, a services And terms

some were October So it. business selected we the after competitors, the solutions we hard cloud provide. and our in beat for We differentiated ran awarded we and were of largest that

want deal. when details we will the out the diligently this can we're tell end excited the the of we and can Kevin, now, year. documentation customer we company. deal And of the But hammer all announce believe largest by be the it to we'll and history doing the we're it we're what provide working I very you, formally So sign more formally with it, in

Kevin Damien

Any That you've we ultimately model some with seems about Cloudflare. and it revenue too, sounds made progress, as sense translate think great. of with potentially Snowflake, going these can some then to that obviously, forward? partnerships impact of like the how And Datadog,

Kevin Jones

solutions excited Kevin. customers. we're Yes. to our that Yes, Thanks best-in-class bring really this. for We partnerships want forge that, pretty about cloud to

and X. Cloudflare our So Snowflake, relationships Datadog, did with is we Platform what strengthened we

to hiring these for about actively With partner a a our talk partner. Snowflake, a We're quarters. the next engineers way select and we're minute. becoming Snowflake-certified on premier Let's more over few

we're recently we're channel recent a Partner. priority With that So developing for most motions. their noted a there Cloudflare sales is is we're And named what Tier call that's partner Datadog, go-to-market Gold earnings exciting. them. development on jointly doing

make our really and So for equity Engineering Cloudflare early be the optimize help investment made excited developing And and X. Platform public to Kubernetes we're Platform Elastic a that And edge, solutions platforms. year, this we're security Platform to market X platform. their earlier help X Kubernetes manage to cloud on private in to doing what front. is simple bringing operate then We're is scale. SaaS-managed and customize, customers with we to

exciting growth are for opportunities Technology. really these partnerships, Rackspace So exciting

managed our public private Of and cloud course, alongside solutions. cloud

had we've Kevin, So encouraging progress.

early but from a offerings, we're it's on I little contributions think it. to forecast revenue the

Amar Maletira

stack. then the add Kevin, is, on I to next on This now, line if strategy application The layer. there, the is and of what's of again, in is in at opportunity just data. infrastructure our And may. a with moving Right market the business lot up going cloud-native is the coming

the with at So a is is you can see up and perspective. here an early partnership line in all stage, this us mowing stack this from strategy

Kevin Damien

Congratulations again.

Kevin Jones

Thanks Kevin.

Joseph Crivelli

deck. you're JPMorgan, El-Assal is Tien-Tsin on Huang from up. And Barclays from Ramsey

Tien-Tsin Huang

unmuted. you I'm think I me? Can hear

Joseph Crivelli

Here go. you

Tien-Tsin Huang

you Terrific. to to Thanks, talk Joe, moderating. Good for guys.

more million as focusing in good I'm half second your a bookings, in the that criteria on you XXXX to do, for captures dangerous or to your just we that, fourth large guidance. in implied Can to close prospecting you consider since yes, annualize about? the just expect selective talked so Or is this So baseline the deal client quarter? the that $XXX given

Kevin Jones

Amar little a little and I momentum in you a for jump I'll question don't just the then on well. bit why and bookings So pipeline, the color, Tien-Tsin. give Thanks as about have

right the bookings plenty results level We've third business year is bookings sold gross terms that and in the the see were optimizing $X the profitability. feel margins in we've think for seen healthy. we years. of dollars in accomplish mix after, the this billion And about the momentum. our to So And to quarter highest focused We're good pipeline, of bookings go our bookings we this in good and in of pipeline new seen number business we goal. then it's on

help on customers what state come pace midsize seeing with commercial businesses is change, local we're we're particularly focus. continue refine We journey. our Rackspace right, their And them with really grappling to And sales them governments. they're to of cloud seeing to and the

thing other offerings. of our interest, is Tien-Tsin, The new product lots

So got a in cloud in Data we redefining directly delivered hearing launched we offering managed delivery the pain and how is the launched our which the massive journey. services result model of is the We've that as customers, Elastic Freedom, experiencing is extremely exciting. Engineering are that on September, This feedback we're that cloud. from they're points

momentum about and So pipeline. solid bookings feeling good

Tien-Tsin Huang

Kevin. lot a Thanks

Amar, offset you the Is to unusual in the don't you gross go you do. you said Anything to there third on mind, out? showing help margin some to for the maybe call of would there? there Just pressure, strength SG&A some if quarter more as leverage

Amar Maletira

No, line our in came expectation, I think Tien-Tsin. with it

And as huge making also focused on so on of had as make I earning the well the in see previous revenue we cost opportunity are sure call, that in investments we we as marketplace. indicated OpEx both as

to SG&A with in line our expectations. your came question, So answer the

Tien-Tsin Huang

done. Thank well Great, you.

Kevin Jones

Tien-Tsin Thanks

Joseph Crivelli

you're up. And El-Assal Barclays, deck. Ramsey from you're Amit Daryanani on from Evercore,

Ramsey El-Assal

me, hear you Can gentlemen?

Joseph Crivelli

Yes.

Ramsey El-Assal

similarly I wanted nonstrategic & What quarter? excluding the of the was Apps from that any Platform other Cross business in about pockets you do see impact are And the to nonstrategic? that growth, ask the exit. the

Amar Maletira

So -- million, did nonstrategic very have that rapidly. very, of piece the That life quarter run start the within business, is we rate which think an end Ramsey. we $X.X was was growing to in some on But about -- that, last headwind. points that is I call, we of we earnings X growth. gave since $X portfolio, was as of about quarterly that that data to The details million X

rapidly. very growing also have We services, security that's

we that strategic our to the rationalize of portfolio. play. We piece aligns will cloud think to retained portfolio the look that and making to the look And portfolio, look I continue continuously at sure we that

that So deemphasize. that that there's nothing will far, we July. We else already restructuring the did did exercise in we through portfolio in

Kevin Jones

add, focused is security, our hacks every service with high-profile course, particularly be facing are pretty company hot right areas of with given customers then the and application got the all move to app regard applications shifted mine data vigilant to companies have on And optimizing security. services business of I practice. agree. we've I and insights. cloud companies data, then needs applications. ransomware And within this now, would world, that eager native as cloud And to cloud, without data broadly the more valuable lot for of challenges to a and would we're Ramsey, strong data just to lifted the development. those hyper the A really development

So hot us. area for another this is

Ramsey El-Assal

there me. lower Thanks for for model? quarter any than of terms lot anything follow-up you run came into that. there we read And levels talk in And in one of should CapEx about to lumpiness in a aware of? the the that rate a Can quick be that type or new our

Amar Maletira

Yes.

So is Ramsey, perspective, with it in a our again, CapEx from line expectation.

the said model. exactly more If expect we with now year, the us end our light year X% In were for range. what range, be X% you I it recall, I at came X% the of to we expecting. to be X% low line line in capital with in to in towards for QX, moving -- full should the the full

as plan. So per it's going

Ramsey El-Assal

Okay. Thank very you much.

Kevin Jones

Ramsey. Thanks,

Joseph Crivelli

Daryanani Amit deck. James, Louthan you're on up. Evercore, from from you're Frank Raymond

Amit Daryanani

on use to and logos want you for and first the really I for there. have Cloudflare, solutions and infrastructure out I relationships off these can cloud me. guess, that existing making, that about cetera you've talked well. is helping solutions new are existing et curious, the you into side? these them, the these data eventually helping nice talked questions the go on Perfect. at two infrastructure demand customers, as Snowflake, Or Hopefully, I'm build coming scale your solutions? manage you've cloud you're about you accelerating logos this investments look get actually the will given they from bring to and them hear Rackspace

Kevin Jones

good. Very Yes.

the I'll investments. So maybe talk can and some start of then Amar about

the We absolutely. base on have see of the momentum we installed yes, So it both and new with that logos. do customers

couple deals, you year-to-date, just XX% talked from segments, QX bookings, actually as look markets. bookings new your geos signed a across logos individual high very at we've in growth diversified thousands about, spend point, If good sold And of years. and in margin, a we to international of seen

planning. So we've progress our we're And on our think, retraining, three forward progress. all upskilling planning, more world. installed We've new account made, pleased and of regions as base good executives. got looked account is logo This with we've our account the gone much I at really sophisticated

And develop seeing as we're pipeline from so well. that

a logos base. it's and of new really, installed combination So

Amit Daryanani

can far, so some downside if just follow-up margins Got 'XX, had we've it. then as right, in pressure. And seen I gross we have

consistent. cash a been I But hand, think flow, on free big focus folks. been your the think among it's other I has remarkably

'XX, seen free expansion cash cash improve think flow free mentioned free to wondering a I'm year? to dollars, of you don't much we margins about likely cash we higher EBIT you've you cash and see gross to free sort both as next think gross flow manner? see expand dollars. consistent do You of and more total calendar Or margins you in can think if you margins even flow move are do continue

Amar Maletira

will gross you bit that results. our margins, know, to more I our to third QX guys. with in give XXXX you little you in -- and expectation in line guidance also quarter a announce as color the So 'XX we our you I QX give came on gross But color on provided when just more my the margins, Amit,

this we cloud-centric know, external mixture any to a model. in all on, business And you the market transient the a is phase, model, dynamics. driven are some we going as by that necessary As undergoing is shifts internal business not transition

at will the margins we was about. gross that expect this with inflect the of So transition Kevin stabilize talking cloud mix And higher-value shift upwards to services believe profitability we the to favorable period. end the that a

installed and traction. expand leading confidence margins how us significantly, becomes our is investments making margin higher expand seen this So will were indicator we opportunity In we've margins as to remarks, and and investments, about a good we gives improved in the base where gross development. us. very of that land into our And motion, this native as for expand making already cloud prepared are have ahead talked products sold just we that's us mentioned, application with Kevin

as in data migrate investments making workloads, are more up multicloud cloud the and are more to services. customers opportunities application data both the stack and a These We on-prem the environment. environment, environment from a

So regarding you flow, progress, very that's -- cash as good see.

operations should rightly our And or drove that's flow from operations and roughly operating of cash I free basically do significantly focused flow that the basis. a We profits lot non-GAAP cash believe I'm so has to a said, and improved. on XX% And You cash from big flow earnings about are of improvement. earnings, quality what defines quality. track working to on. capital of the we that And believer a

Amit Daryanani

very Thanks Perfect. much.

Joseph Crivelli

Palmisano Bachman James, up. have we And from Rob Raymond you're from on deck, Keith BMO.

deck. on You're

Rob Palmisano

This is for Frank. on Rob

guys an us initiatives So on give where offshoring you are can you And with at tracking? the cost savings update are process? how your

Amar Maletira

done majority will continue those stuff actions of will of completed. And be and QX rate the if See taken fiscal Rob. you have of of XXXX. that run said the largely savings actions. a be And in will come of recall, those Yes. we we million from to Thanks, it -- million gross -- of $XX have we'll most our rest, savings. through most $XXX drive been end labor will or And there QX, the the by QX non-labor

benefit So full we XXXX. -- realize the annualized will in the see

business. now, and are back seeing reinvesting we even those We savings have into started it the

that's are. where So we

tracking So going we is our offshoring are to quite plan, well.

footprint. are a We very global building good

We in have that we planned what accelerated with too, line for. had

with there. pleased very progress the so And

Rob Palmisano

you. Thank Great.

Joseph Crivelli

Deutsche will from from final And BMO our come up. Keane then at Keith Bachman question you're Bryan Bank.

Keith Bachman

I last you the models X gross can perhaps keep could I to you if bottom just last margins. A, B the to needed the me, specific you would move was want so on question, QX, quarter, come things thing September follow you for that can a part quarter, and for okay. but do X hoping gave gross hear is the indicated could you our thank Hi, on And few, question a up you number I same had gross More margin two call, within all -- quarters. you. and margins and the you we to parameters. certain you of again, upward, then quarter on

you thought we in quarter the be December I I'd of just Slide revisit if the that, to 'XX. XXXX. particular, on on trends thinking could should that your XX, interesting margin because pretty gross in process gotten So about see you've in performance that from cohort like was quarter, September good cumulative

So then if And follow-up. margin trends? I just a revisit gross could those on you have

Amar Maletira

Yes.

trend, say So expectations last line gross color I position call, gross expected would in some earnings I no And margins changes as margins you quarter and were indicated. time. with our for and on have QX, provided that from this at

Keith Bachman

gross to about QX? think us margins for specific you But any want Okay.

Amar Maletira

that, so quarter, go I last quarter. color I that think gave mentioned with I whatever I'll last had think I So

Keith Bachman

cash taking Okay. if charges All some year. to restructuring whatnot and too. I right. this turning flow, you're could, Then Also,

cash? to in metrics really restructuring reported the charges reason 'XX? presumably how flow geared much a 'XX? so towards that is question be question, lower Is is your cash tailwind potential asking the I'm And And that so that the could in free of

Amar Maletira

Yes, Yes, XXXX. I also that's could charges question, will think accrued go those fiscal fiscal in and some in a cash great restructuring that be 'XX those because the out of some Keith. tailwind door were of a

some thereafter. have then it should tailwind a half but as will in XXXX, of the serve We of first it

Keith Bachman

impacting early cash on a on Okay. 'XX that's versus amount Any basis? 'XX the quantifications

Amar Maletira

earnings, you have I'll have so front our don't in but that more attractive. numbers of I QX give the when right me, you announce that we color

Keith Bachman

you. jump queue. I’ll Okay, back in Thank

Joseph Crivelli

Bank. Deutsche from at Go comes Keane question Bryan. Bryan Next ahead

Bryan Keane

to about share. Hi, market guys. ask measuring I how just want you're

private of Is are still those growing at which grows there? is grow? outlined, -- to there that XX% that's non-VMware you you cloud there non-growth fast, thinking and fast, flattish you is business of guess as secondarily, that then the the XX%. area cloud And I an significantly which markets, while high-growth XX%, sometimes share enough relatively fastest? about guys of is area I XX% the XX%, just multicloud. to be still gaining a to side Looking the of it's is Or although are growth grow going the room markets, Because hosting, upwards managed should think

Amar Maletira

on start some we color said give additional I I'll So before. -- have will based what you

to which hyperscalers, at mix roughly this the faster multicloud or competitors a take is growth XX% we're XX% if our growing market, the in to is And growing space actually our look you even about of XX% So within than XX%. them.

share. we again, market, market are It's from indicator in we're So rate, are out a on to the growth broad fragmented. is market taking a you can it's winning based this marketplace. clearly, we share it's not. good or such But whether figure a that hard But that, taking say, so

Now guidance. with of the give product, it will any the side mature specific relates not I as to --

the the because so business. If rightfully the and business fully you some do of math, business that we is side to growth of are moving declining focus the

towards, migration sell, that's and services work step as as build and services the help the to We upsell are opportunity of site, to the work they helping applications. for -- the go native we these therapy the business, transferred as more data the where side I have transition good applications, new will clients, new plan. The And more customers where new portfolio, transition towards future we growth more earlier the is. because the our develop said, can cloud an we them that's modern

that's the within within dynamics those sub-portfolios so And multicloud. two

Bryan Keane

mix. for what and the thinking the high-growth big about business being plus just Multicloud doesn't shrinks I little become thinking those down on percentage about in a X% growth here some mix And alone? a of shrinks market markets it OpenStack mix picture the of accelerate mature to revenue of Because bigger naturally as based percentage, revenue think, of is they a with as Yes. pulled the higher I'm bit

Amar Maletira

say, that would I rationally, you case. think if that's probably through the

you're Now think when you happens color the on more give QX our 'XX announce I way. fiscal results. that -- what thinking we that's we But and will right in

Kevin Jones

of the exactly. the think I company, Yes, that's strategy, of intention our

Bryan. our our to and the hyper I growth think well is, and move it to is you areas that's where summarized market, the investment of focus

Bryan Keane

guys. thanks Okay,

Joseph Crivelli

joining for everybody, today. thanks, us Well,

follow-up please at to great have soon. want you you Have me talk reach of out you time schedule if the and or If day, additional ir@rackspace.com. rest with team, your to a questions we'll to

Rackspace Technology (RXT) 16 Nov 212021 Q3 Earnings call transcript