Rackspace Technology (NASDAQ: RXT) has announced a series of board and executive transitions, including the appointment of Jeffrey Benjamin as the new independent chairman of the board, succeeding David Sambur. Vikram Mahidhar will also join the board, bringing extensive expertise in digital, data, and artificial intelligence.
Brian Lillie, the president of private cloud, will be stepping down from his position, with Rackspace CEO Amar Maletira assuming the interim leadership role for the private cloud business. The company will be searching for Lillie's successor, and he is expected to remain with the company in an advisory capacity until April 5, 2025.
In the financial realm, Rackspace Technology reaffirmed its financial guidance for the fourth quarter of 2024, indicating confidence in its projected performance. The company highlighted its strong sales performance, achieving record-breaking quarterly sales bookings in the fourth quarter – the highest since the inception of its two business units at the start of fiscal 2023. The fourth-quarter bookings demonstrated impressive high double-digit growth, both year-over-year and sequentially.
This reaffirmation of financial guidance suggests the company's continued commitment to its projected performance, despite the executive and board transitions. As a result of these announcements, the company's shares have moved 0.2% on the market, and are now trading at a price of $2.4. For the full picture, make sure to review Rackspace Technology's 8-K report.
