Rackspace Technology Inc (RXT) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Rackspace third-quarter 2024 earnings webcast. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎收看 Rackspace 2024 年第三季財報網路廣播。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Sagar Hebbar, Investor Relations. Please go ahead.

現在我想將會議交給今天的第一位發言人，投資者關係部門的 Sagar Hebbar。請繼續。

Thank you, and welcome to Rackspace Technology's third-quarter 2024 earnings conference call. I'm Sagar Hebbar, Head of Investor Relations. Joining me on today's call are Amar Maletira, our Chief Executive Officer; and Mark Marino, our Chief Financial Officer.

謝謝，歡迎參加 Rackspace Technology 的 2024 年第三季財報電話會議。我是投資人關係主管 Sagar Hebbar。參加今天電話會議的有我們的執行長 Amar Maletira；和我們的財務長馬克·馬裡諾。

As a reminder, certain comments we make on this call will be forward-looking. These statements involve risks and uncertainties, which could cause actual results to differ. A discussion of these risks and uncertainties is included in our SEC filings.

提醒一下，我們在本次電話會議中發表的某些評論將具有前瞻性。這些陳述涉及風險和不確定性，可能導致實際結果有所不同。我們向 SEC 提交的文件中包含對這些風險和不確定性的討論。

Rackspace Technology assumes no obligation to update the information presented on the call, except as required by law. Our presentation includes certain non-GAAP financial measures and adjustments to these measures, which we believe provide useful information to our investors. In accordance with SEC rules, we have provided a reconciliation of these measures to their most directly comparable GAAP measures in the earnings press release and presentation, both of which are available on our Investor Relations website.

除法律要求外，Rackspace Technology 不承擔更新通話中提供的資訊的義務。我們的簡報包括某些非公認會計準則財務指標以及對這些指標的調整，我們相信這些指標為我們的投資者提供了有用的資訊。根據 SEC 規則，我們在收益新聞稿和簡報中提供了這些指標與其最直接可比較的 GAAP 指標的調整表，這兩項指標均可在我們的投資者關係網站上取得。

I will now turn the call over to Amar for an update on the business.

我現在將把電話轉給阿馬爾，以了解業務的最新情況。

Thank you, Sagar, and welcome, everyone, to our earnings call. Results in the third quarter exceeded the midpoint of our guidance for revenue, profit, and EPS. This marks the ninth consecutive quarter, in which we have either met or exceeded our guidance. This achievement is attributed to our consistent execution and a strong focus on advancing our three strategic priorities.

謝謝薩加爾，歡迎大家參加我們的財報電話會議。第三季的業績超過了我們對收入、利潤和每股收益的指導中位數。這標誌著我們連續第九個季度達到或超過了我們的指導。這項成就歸功於我們一貫的執行力和對推動三大戰略重點的高度重視。

First, we are making steady progress on our operational turnaround. In the third quarter, we grew bookings and pipeline while improving efficiency. Second, we continue to position Rackspace as a forward-leaning innovative hybrid cloud and AI solutions company. We're launching new products, solutions and offerings that target the next big secular waves of growth in both hybrid cloud and AI. And third, we remain focused on improving our capital structure to support and sustain profitable growth over the long-term. We have ample liquidity and flexibility to focus on our operational priorities.

首先，我們的營運轉型正在穩步取得進展。第三季度，我們在提高效率的同時增加了預訂量和管道。其次，我們持續將 Rackspace 定位為一家前瞻性的創新混合雲和人工智慧解決方案公司。我們正在推出新產品、解決方案和產品，瞄準混合雲和人工智慧領域的下一波長期成長浪潮。第三，我們仍專注於改善資本結構，以支持和維持長期獲利成長。我們擁有充足的流動性和靈活性，可以專注於我們的營運重點。

As you may recall, when I took on the CEO role, we made several key strategic decisions to pivot the company in response to changing market dynamics. I'm pleased to see the new capabilities we developed through those decisions and investments are now meeting emerging demand in our target markets. As we had anticipated at the outset, the private and public cloud markets are maturing with customers increasingly embracing a hybrid cloud model that leverages both private and public cloud environments.

您可能還記得，當我擔任執行長時，我們做出了幾項關鍵策略決策，以調整公司以應對不斷變化的市場動態。我很高興看到我們透過這些決策和投資開發的新功能現在正在滿足目標市場的新興需求。正如我們一開始所預期的那樣，私有雲和公有雲市場正在日趨成熟，客戶越來越多地接受利用私有雲和公有雲環境的混合雲模型。

We recently highlighted the progress we are making on our strategy and unique capabilities at our Annual Industry Analyst Day event in Boston, which drew nearly twice as many industry analysts as last year. The event team delivering hybrid cloud for an innovation-driven AI-powered future set the stage for panel discussions with CIOs and senior IT leaders from five of our major public and private cloud customers. These sessions were exceptionally well received and we were thrilled by the analysts' positive feedback and enthusiastic social media posts and commentary that capture the achievements and vision we shared.

最近，我們在波士頓舉行的年度行業分析師日活動上強調了我們在策略和獨特能力方面取得的進展，該活動吸引的行業分析師數量幾乎是去年的兩倍。活動團隊為創新驅動的人工智慧驅動的未來提供混合雲，為與來自我們五個主要公共和私有雲客戶的資訊長和高級 IT 領導者進行小組討論奠定了基礎。這些會議非常受歡迎，我們對分析師的正面回饋以及熱情的社交媒體貼文和評論感到興奮，這些貼文和評論體現了我們共同的成就和願景。

Now let me get into our business performance, starting with private cloud. Private cloud GAAP revenue of $258 million was within our guided range this quarter, though slightly down sequentially. I'm particularly pleased with the steady progress we are making towards our strategic priorities in private cloud. The delivery team has done an excellent job, onboarding major customers from deals closed in fiscal fourth quarter of 2023 and first quarter of 2024.

現在讓我從私有雲開始介紹我們的業務績效。本季私有雲 GAAP 收入為 2.58 億美元，儘管環比略有下降，但仍在我們的指導範圍內。我對我們在私有雲策略重點方面取得的穩定進展感到特別滿意。交付團隊做得非常出色，從 2023 財年第四季和 2024 年第一季完成的交易中吸引了主要客戶。

As we have discussed, it often takes six to nine months for signed bookings to translate into revenue. It is rewarding to see last year's efforts in winning and then onboarding these deals now reflected in our current revenue numbers. Bookings in Q3 saw a slight sequential decline, mainly due to deal timing delays. However, some of these deals have since closed this quarter.

正如我們所討論的，簽約預訂通常需要六到九個月的時間才能轉化為收入。看到去年贏得並隨後開展這些交易的努力現在反映在我們當前的收入數字中，這是值得的。第三季的預訂量較上季略有下降，主要是因為交易時間延遲。然而，其中一些交易已於本季完成。

Furthermore, we expect one of the largest healthcare deals in Rackspace's history to close by the end of this month. This will set us up for an expected strong sequential bookings growth in Q4. Most of these new agreements are long-term, ensuring steady recurring revenue base. Looking ahead, our pipeline is promising with a 41% increase year over year.

此外，我們預計 Rackspace 歷史上最大的醫療保健交易之一將於本月底完成。這將為我們預計第四季度的預訂量強勁成長奠定基礎。這些新協議大多數都是長期的，確保穩定的經常性收入基礎。展望未來，我們的產品線前景光明，年增 41%。

Private cloud is making significant strides in the healthcare sector with revenue for fiscal 2024 in our healthcare private cloud business projected to increase by nearly 30% year over year. Our differentiated Healthcare Cloud offerings, including Epic hosting and growing industry reputation, is powering the pipeline growth in our healthcare vertical. I'm excited to share a significant milestone that we achieved recently on October 6.

私有雲在醫療保健領域取得了重大進展，我們的醫療保健私有雲業務 2024 財年的營收預計將年增近 30%。我們差異化的醫療保健雲端產品，包括 Epic 託管和不斷增長的行業聲譽，正在推動我們醫療保健垂直領域的管道成長。我很高興與大家分享我們最近在 10 月 6 日實現的一個重要里程碑。

We successfully migrated one of the nation's largest healthcare providers to our healthcare cloud, representing one of the most significant single deployments of an Epic system to-date. These accomplishments involved a seamless transition of over 38,000 concurrent users across 54 hospitals, in nine states, resulting in continued performance improvements ranging from 15% to 45% since go live. These enhancements enable healthcare providers, patients and families to access essential medical records more quickly and efficiently. The feedback we received post-migration has been outstanding.

我們成功地將全國最大的醫療保健提供者之一遷移到我們的醫療保健雲，這是迄今為止 Epic 系統最重要的單一部署之一。這些成就涉及 9 個州 54 家醫院超過 38,000 名併髮用戶的無縫過渡，導致自上線以來性能持續提高 15% 至 45%。這些增強功能使醫療保健提供者、患者和家庭能夠更快、更有效率地存取重要的醫療記錄。我們在遷移後收到的回饋非常出色。

We are told by the customer that the transition could not have gone more smoothly, enabling this provider to focus on other operational initiatives. This project highlights our commitment to delivering excellence in healthcare technology solutions, further solidifying our position as a trusted partner in this industry.

客戶告訴我們，過渡進行得非常順利，使該提供者能夠專注於其他營運計劃。該專案凸顯了我們致力於提供卓越的醫療保健技術解決方案的承諾，進一步鞏固了我們作為該行業值得信賴的合作夥伴的地位。

We are also seeing momentum in our Sovereign vertical where we project the private cloud revenue for this vertical to grow over 50% in 2024 compared to 2023. The strategic MOUs signed 18 months ago with the Kingdom of Saudi Arabia to design, build and operate a sovereign cloud resulted in a successful launch of the first version of ExaCloud earlier this year. We continue to build on that success in the Kingdom.

我們也看到了主權垂直領域的發展勢頭，預計該垂直領域的私有雲收入到 2024 年將比 2023 年增長 50% 以上。18 個月前與沙烏地阿拉伯王國簽署了設計、建構和營運主權雲端的戰略諒解備忘錄，導致今年稍早成功推出了 ExaCloud 的第一個版本。我們將繼續在王國的成功基礎上再接再厲。

Additionally, we also expanded our offerings for the UK sovereign market with the introduction of our branded data centers and solutions. We're also gaining traction in other regulated industries. For example, Fracspace was down selected to build and operate a custom private cloud for a large European energy company. The proof of capability is currently underway and slated to complete this quarter. We expect to launch in 2025.

此外，我們也透過推出我們的品牌資料中心和解決方案，擴大了針對英國主權市場的產品範圍。我們也在其他受監管的行業中獲得了關注。例如，Fracspace 被選中為一家大型歐洲能源公司建構和營運客製化私有雲。能力證明目前正在進行中，預計將於本季完成。我們預計於 2025 年推出。

In the third quarter, we continued rolling out innovative solutions, launching 15 new products and enhancing 19 others. Our market-leading VMware and OpenStack private cloud solutions give customers a wide range of virtualization choices. Rackspace is one of the largest VMware CSPs in the world, managing approximately 300,000 Bcf cores. We are also seeing renewed customer interest in our OpenStack offerings.

第三季度，我們繼續推出創新解決方案，推出了 15 款新產品，並增強了另外 19 款產品。我們市場領先的 VMware 和 OpenStack 私有雲解決方案為客戶提供了廣泛的虛擬化選擇。Rackspace 是全球最大的 VMware CSP 之一，管理著約 300,000 個 Bcf 核心。我們也發現客戶對我們的 OpenStack 產品重新產生了興趣。

As the pioneers in OpenStack, along with NASA, we have taken a significant step forward in our commitment to open-source innovation. We officially joined the Board of the OpenInfra Foundation. We will work with fellow Board members to influence the strategic direction of the foundation and drive industry standards.

身為 OpenStack 的先驅，我們與 NASA 一起在致力於開源創新的道路上邁出了重要的一步。我們正式加入 OpenInfra 基金會董事會。我們將與董事會成員合作，影響基金會的策略方向並推動產業標準。

In conclusion, I'm confident that private cloud will become a thriving market not only for traditional workloads, but also for AI workloads. I will cover our private AI solutions in the AI section later in my prepared remarks. While we have done well with these large new deals, the results also highlight both the variability of big contracts and the lag between bookings and revenue. However, with pipeline steadily growing, we believe that private cloud will stabilize and will eventually drive significant growth.

總之，我相信私有雲將成為一個蓬勃發展的市場，不僅適用於傳統工作負載，也適用於人工智慧工作負載。稍後我將在準備好的發言中在人工智慧部分介紹我們的私有人工智慧解決方案。雖然我們在這些大型新交易上做得很好，但結果也凸顯了大型合約的可變性以及預訂和收入之間的滯後性。然而，隨著管道的穩定成長，我們相信私有雲將穩定下來並最終推動顯著成長。

Now let's move on to public cloud. Public cloud GAAP revenue of $418 million was down 2% sequentially and came in above our guidance midpoint, driven by services. Public cloud had a record bookings quarter, achieving the highest level of bookings since the beginning of 2023 and the formation of the two business units. Bookings were up high double digits sequentially and year over year, with strong performance across the board. Public cloud has now delivered three consecutive quarters of sequential and year-over-year bookings growth.

現在讓我們轉向公有雲。在服務的推動下，公有雲 GAAP 收入為 4.18 億美元，環比下降 2%，高於我們的指導中點。公有雲季度預訂量創歷史新高，達到 2023 年初以及兩個業務部門成立以來的最高水準。預訂量連續及年增兩位數，全面表現強勁。公有雲現已連續三個季度實現預訂量連續增長和同比增長。

From a regional perspective, our largest region, Americas, continued to show robust sales performance in Q3, marking the third consecutive quarter where it exceeded internal bookings target and outperformed our expectations. Platform and data services bookings grew double digits sequentially and year over year. Data services continue to remain a bright spot with strong bookings performance driven in part by solid demand in AI-related data modernization.

從區域角度來看，我們最大的區域美洲在第三季度繼續呈現強勁的銷售業績，連續第三個季度超過內部預訂目標並超越我們的預期。平台和數據服務預訂量環比和年增長兩位數。數據服務仍然是一個亮點，預訂業績強勁，部分原因是人工智慧相關數據現代化的強勁需求。

We have significantly strengthened our partnership with hyperscalers. In late October, we announced a multiyear strategic collaboration agreement with AWS to accelerate digital transformation for our customers. This agreement enhances our existing partnership, allowing us to deliver comprehensive cloud and AI solutions tailored to driving innovation and achieving business outcomes for customers globally.

我們顯著加強了與超大規模企業的合作關係。10 月下旬，我們宣布與 AWS 達成一項多年戰略合作協議，以加速客戶的數位轉型。該協議增強了我們現有的合作夥伴關係，使我們能夠提供全面的雲端和人工智慧解決方案，旨在推動創新並為全球客戶實現業務成果。

Public cloud had several notable wins this quarter. We are helping a growing UK parcel services delivery firm, transition their data stores to cloud and modernize applications for cost savings and market expansions. We also signed a professional services agreement with a renewable energy company for data transformation, cloud engineering, and migration.

公共雲本季度取得了幾項引人注目的勝利。我們正在幫助一家不斷發展的英國包裹服務交付公司，將其資料儲存轉移到雲端，並對應用程式進行現代化改造，以節省成本並擴大市場。我們也與一家再生能源公司簽署了資料轉換、雲端工程和遷移的專業服務協議。

Our new public cloud offerings support our services-led strategy by continuing to advance capabilities in applications, data, security and platform. In Q3, we launched four new solutions and enhanced for others. For example, in data, we announced Amazon Q Incubate, an AI-powered assistant built using Amazon Q to leverage internal company data. Use cases include empowering IT help desks, support teams and call centers by providing easy access to organizational data.

我們新的公有雲產品透過持續提升應用程式、資料、安全性和平台的能力來支持我們以服務為主導的策略。在第三季度，我們推出了四種新的解決方案，並為其他解決方案進行了增強。例如，在數據方面，我們發布了 Amazon Q Incubate，這是一款使用 Amazon Q 構建的人工智慧助手，可利用公司內部數據。使用案例包括透過提供對組織資料的輕鬆存取來增強 IT 服務台、支援團隊和呼叫中心的能力。

In conclusion, public cloud had another quarter of strong performance across its key performance indicators driven by, first, structural changes made to our go-to-market in late 2023, including pivoting to services-led motion, refreshing our sales force, building a client partner model, changing the incentive structure and reorganizing the market segments.

總之，公有雲的關鍵績效指標又取得了一個季度的強勁表現，首先是 2023 年底我們進入市場時進行的結構性變化，包括轉向以服務為主導的行動、更新我們的銷售隊伍、建立客戶合作夥伴模式，改變激勵結構，重組細分市場。

Second, expanding in mid-market while selectively penetrating the enterprise segment, which resulted in signing over 10 master service agreements and continuing to focus on additional ones that will generate new opportunities for growth with our land-and-expand strategy. And third, a disciplined approach to infrastructure resale, where we continue to focus on deals that meet our return hurdles and improve our overall margins with a focus on higher services attach rates.

其次，在中端市場擴張的同時，選擇性地滲透企業細分市場，簽署了 10 多項主服務協議，並繼續關注其他協議，這些協議將為我們的土地擴張策略帶來新的成長機會。第三，對基礎設施轉售採取嚴格的方法，我們繼續專注於滿足我們的回報障礙並提高我們的整體利潤率的交易，重點關注更高的服務附加費率。

For example, in Q3, we attached services to 22 of the top 28 deals. Our services-led strategy has also helped us to drive immense value for our cloud infrastructure resale customers, thereby driving higher consumption of cloud infrastructure and improving customer profitability.

例如，在第三季度，我們為前 28 筆交易中的 22 筆附加了服務。我們以服務為主導的策略也幫助我們為雲端基礎設施轉售客戶帶來巨大價值，從而推動雲端基礎設施的更高消費並提高客戶獲利能力。

Now moving to AI. As I mentioned, Rackspace is riding the next secular wave of market growth with AI. At our recent Industry Analyst Day, I shared our three-point AI strategy that includes, first, enabling customers in their AI journey with services and solutions; second, designing, building, and operating hybrid AI infrastructure for inferencing and fine-tuning workloads; and third, transforming Rackspace into an AI-driven company.

現在轉向人工智慧。正如我所提到的，Rackspace 正在利用人工智慧推動下一波長期市場成長浪潮。在最近的產業分析師日上，我分享了我們的三點人工智慧策略，其中包括：第一，透過服務和解決方案為客戶的人工智慧之旅提供支援；其次，設計、建構和營運混合人工智慧基礎設施，用於推理和微調工作負載；第三，將 Rackspace 轉型為人工智慧驅動的公司。

We are seeing good progress in AI with our FAIR initiatives with nearly 50 customers and over 250 opportunities at various stages of implementation. We also expanded our AI-related product offerings across both business units. In public cloud, we joined AWS' new Generative AI Partner Innovation Alliance, a program that will help AWS customers successfully build and deploy generative AI solutions.

透過我們的 FAIR 計劃，我們看到人工智慧領域取得了良好進展，有近 50 個客戶和 250 多個處於不同實施階段的機會。我們也擴大了兩個業務部門的人工智慧相關產品範圍。在公有雲方面，我們加入了 AWS 新的生成式 AI 合作夥伴創新聯盟，該計畫將幫助 AWS 客戶成功建置和部署生成式 AI 解決方案。

In private cloud, we have a proof of concept underway with a large international company to run their inferencing workload on our private AI infrastructure. We also launched on-demand GPU-as-a-Service on our Spot platform powered by NVIDIA's H100 Tensor Core GPUs. Customers can harness high-performance GPUs without an upfront investment to achieve both cost efficiency and scalability. The opportunities in AI are promising, but we are taking a practical balanced approach to helping our customers leverage AI for building impactful, economically sustainable and ethical solutions.

在私有雲中，我們正在與一家大型國際公司進行概念驗證，以在我們的私有人工智慧基礎架構上運行他們的推理工作負載。我們也在由 NVIDIA H100 Tensor Core GPU 提供支援的 Spot 平台上推出了按需 GPU 即服務。客戶無需前期投資即可利用高效能 GPU 來實現成本效率和可擴充性。人工智慧領域的機會是充滿希望的，但我們正在採取務實平衡的方法來幫助我們的客戶利用人工智慧建立有影響力、經濟上可持續且符合道德的解決方案。

Before I wrap up, I'd like to thank our customers, partners and all our actors. I'm pleased with our performance this quarter and proud of all we have achieved together during this year of change.

在結束之前，我要感謝我們的客戶、合作夥伴和所有參與者。我對我們本季的表現感到滿意，並對我們在這項變革的一年中共同取得的成就感到自豪。

I will now turn it over to Mark for an overview of our financial results and guidance.

我現在將其交給馬克，以概述我們的財務表現和指導。

Thank you, Amar. In the third quarter, total company GAAP revenue of $676 million was within our guided range, driven by strength in public cloud. Note, we are no longer presenting non-GAAP net revenue as a stand-alone line item. To ensure transparency and full disclosure, the impact of the lower-margin infrastructure resale contracts and those pass-through costs for the quarter are found on slide number 4 in our earnings presentation.

謝謝你，阿瑪爾。在公有雲實力的推動下，第三季公司 GAAP 總收入為 6.76 億美元，介於我們的指導範圍內。請注意，我們不再將非 GAAP 淨收入作為獨立的項目來呈現。為了確保透明度和充分揭露，利潤率較低的基礎設施轉售合約的影響以及本季​​的轉嫁成本可在我們的收益簡報的第 4 號幻燈片中找到。

For the quarter, non-GAAP gross profit margin was 21.2% of GAAP revenue, up 90 basis points sequentially. Non-GAAP operating profit was $34 million, exceeding the high end of our guidance. This was primarily driven by better-than-expected performance in both public cloud and private cloud.

本季度，非 GAAP 毛利率佔 GAAP 營收的 21.2%，較上一季成長 90 個基點。非 GAAP 營業利潤為 3,400 萬美元，超出了我們指導的上限。這主要是由於公有雲和私有雲的效能好於預期。

Non-GAAP operating margin was 5.1% of GAAP revenue, up 180 basis points sequentially. Non-GAAP loss per share was $0.04 better than our guided range of a $0.06 to $0.08 loss per share, driven by better-than-expected operating profit. Cash flow from operations was $52 million, and free cash flow was $27 million in the third quarter. We closed the quarter with $157 million in cash and $532 million of total liquidity, including $375 million of undrawn commitments.

非 GAAP 營業利潤率為 GAAP 收入的 5.1%，比上一季上升 180 個基點。由於營業利潤優於預期，非 GAAP 每股虧損比我們每股虧損 0.06 美元至 0.08 美元的指導範圍好 0.04 美元。第三季營運現金流為 5,200 萬美元，自由現金流為 2,700 萬美元。本季結束時，我們擁有 1.57 億美元的現金和 5.32 億美元的流動資金總額，其中包括 3.75 億美元的未提取承諾。

Turning to our segment results. For private cloud, GAAP revenue for the third quarter was $258 million, within our guided range. This includes legacy OpenStack revenue of $25 million. Total private cloud revenue was down 1% sequentially, due to customers rolling off older generation private cloud offerings. Private cloud non-GAAP gross margin was 38.6%, up 120 basis points sequentially, due to cost efficiencies, partially offset by lower revenue. Non-GAAP segment operating margin at 28.9% was up 210 basis points sequentially, driven by gross margin expansion and better cost management.

轉向我們的部門業績。對於私有雲，第三季 GAAP 收入為 2.58 億美元，在我們的指導範圍內。其中包括 2,500 萬美元的傳統 OpenStack 收入。由於客戶放棄舊一代私有雲產品，私有雲總收入季減 1%。由於成本效率提高，私有雲非 GAAP 毛利率為 38.6%，季增 120 個基點，但部分被收入下降所抵銷。在毛利率擴張和更好的成本管理的推動下，非 GAAP 部門營業利潤率為 28.9%，環比增長 210 個基點。

In public cloud, GAAP revenue was $418 million at the high end of our guided range and down 2% sequentially, primarily due to lower cloud infrastructure volumes. I'm pleased to see services revenue coming in flat sequentially after several quarters of decline, playing a promising foundation for future growth.

在公有雲方面，GAAP 營收為 4.18 億美元，處於我們指引範圍的高端，比上一季下降 2%，這主要是由於雲端基礎設施數量減少。我很高興看到服務收入在經歷了幾個季度的下降之後環比持平，為未來的成長奠定了良好的基礎。

Non-GAAP gross margin for our public cloud segment was 10.4%, up 50 basis points sequentially, driven by an improvement in resale margins. Non-GAAP segment operating margin was 3.9%, up 110 basis points sequentially, due to improved gross margins and operational efficiency.

在轉售利潤率改善的推動下，我們的公有雲部門的非 GAAP 毛利率為 10.4%，較上一季成長 50 個基點。由於毛利率和營運效率的提高，非 GAAP 部門營運利潤率為 3.9%，季增 110 個基點。

Now on to guidance. We expect fourth-quarter GAAP revenue to be $668 million to $680 million, slightly down sequentially at the midpoint. Total non-GAAP operating profit is expected to be $34 million to $36 million, and non-GAAP loss is expected to be from $0.03 to $0.05 per share.

現在開始指導。我們預計第四季度 GAAP 收入為 6.68 億美元至 6.80 億美元，比上一季的中位數略有下降。非 GAAP 營業利潤總額預計為 3,400 萬美元至 3,600 萬美元，非 GAAP 虧損預計為每股 0.03 美元至 0.05 美元。

From a segment perspective, we expect private cloud revenue of $258 million to $264 million, up 1% sequentially at the midpoint, and public cloud revenue of $410 million to $416 million, down 1% sequentially at the midpoint, due to reduced consumption and lower margin infrastructure resale. Our non-GAAP tax rate is expected to be 26% and non-GAAP other expense is expected to be $47 million to $51 million. The non-GAAP share count is expected to be approximately 240 million shares.

從細分市場角度來看，我們預期私有雲收入為2.58 億美元至2.64 億美元，中位數環比增長1%，公有雲收入為4.10 億美元至4.16 億美元，中位數環比下降1%，原因是消費減少和保證金基礎設施轉售。我們的非 GAAP 稅率預計為 26%，非 GAAP 其他費用預計為 4,700 萬至 5,100 萬美元。非 GAAP 股票數量預計約 2.4 億股。

I will now turn the call back over to Sagar.

我現在將把電話轉回給薩加爾。

Thank you, Mark. Let us begin the question-and-answer session. We ask everyone to limit discussion to one question and one follow-up. Please go ahead.

謝謝你，馬克。讓我們開始問答環節。我們要求每個人將討論限制為一個問題和一個後續行動。請繼續。

(Operator Instructions) Kevin, UBS.

（操作員說明）Kevin，UBS。

Great. Thanks so much and congratulations on just another quarter. Really, really good execution. Amar and Mark, can you help us dimensionalize the size of that health care win? If I heard you right, Amar, it sounds like it's the largest one you've ever signed. Is there any way to dimensionalize that as to what, just, I guess -- maybe we could start there.

偉大的。非常感謝並恭喜又一個季度。執行力真的非常非常好。阿瑪爾和馬克，你們能幫助我們衡量醫療保健勝利的規模嗎？如果我沒聽錯的話，阿瑪爾，這聽起來像是你簽署過的最大的一筆。有什麼方法可以將其維度化，只是，我想——也許我們可以從那裡開始。

Yeah. So thanks, Kevin. Thanks for your question. So the health care win that we talked about was health care when in Q4 of last year, it was in hundreds of millions of dollars in TCV. So it was a sizable win. And what we did in the last nine months is basically onboard that customer and transition the customer over to our Rackspace Healthcare Cloud. So that was very significant, Kevin.

是的。所以謝謝，凱文。謝謝你的提問。因此，我們談論的醫療保健勝利是去年第四季的醫療保健，TCV 為數億美元。所以這是一場相當大的勝利。我們在過去九個月所做的基本上是吸引該客戶並將客戶轉移到我們的 Rackspace 醫療雲端。所以這非常重要，凱文。

Think about the magnitude here, 38,000 concurrent users, one of the largest Epic system installation in the world. And I'm very proud of the private cloud delivery team for pulling it off and doing a very smooth and seamless transition. And so that's the real achievement. It's also given us a lot of -- our reputation in the industry has gone up tenfolds based on that transition.

想想這裡的規模，38,000 個並髮用戶，世界上最大的 Epic 系統安裝之一。我對私有雲交付團隊的成功感到非常自豪，他們完成了非常平穩、無縫的過渡。這才是真正的成就。它也為我們帶來了很多——基於這一轉變，我們在行業中的聲譽提高了十倍。

And, Amar, have you seen kind of the network effect? Because it sounds like the other thing was open. Can you dimensionalize kind of on the private cloud, like, how much today's government versus health care versus other? Is there any way just to think about kind of the vertical in that particular business?

阿馬爾，你看過網路效應嗎？因為聽起來好像另一件事是開放的。您能否在私有雲上進行一些維度分析，例如，當今的政府與醫療保健與其他方面相比有多少？有沒有什麼方法可以考慮特定業務中的垂直類型？

Yeah, I think that's a great question, Kevin. So let me just put a context here. If you recall, we were very focused on going by vertical. And we picked specifically three or four verticals: health care; BFSI, which is banking, financial services and insurance; our sovereign and public sector.

是的，我認為這是一個很好的問題，凱文。讓我在這裡先介紹一下背景。如果你還記得的話，我們非常專注於垂直發展。我們特別選擇了三到四個垂直領域：醫療保健； BFSI，即銀行、金融服務和保險；我們的主權和公共部門。

Now jointly, these verticals make up -- it was roughly about 25% of our total revenue in fiscal 2023. And by the time we end fiscal 2024, it will be about one-third of our total revenue base. When it comes to health care and Sovereign, they were roughly between 5% to 10% of our overall revenue, because, remember, we just got started about 18 months ago. And we will be nearly at 15% by the time we exit fiscal 2024, and that will continue growing in fiscal 2025.

現在，這些垂直產業合計約占我們 2023 財年總收入的 25% 左右。到 2024 財年結束時，這將占我們總收入的約三分之一。當談到醫療保健和 Sovereign 時，它們大約占我們總收入的 5% 到 10% 之間，因為，請記住，我們大約 18 個月前才剛開始。到 2024 財年結束時，我們的成長率將接近 15%，並將在 2025 財年繼續成長。

For example, with health care, we believe that given the deals that we have in the funnel and the confidence of us closing these deals, this 30% growth -- nearly 30% growth in fiscal 2024 might translate to another high double-digit growth in fiscal 2025.

例如，在醫療保健方面，我們認為，考慮到我們在漏斗中的交易以及我們完成這些交易的信心，這一30% 的增長——2024 財年近30% 的增長可能會轉化為另一個高兩位數的成長2025 財年。

That makes sense. Congrats again and thank you for the time.

這是有道理的。再次恭喜並感謝您抽空。

Ramsey, Barclays.

拉姆齊，巴克萊銀行。

Hi. This is Ryan on for Ramsey. Thanks for taking my question today. Last quarter, you mentioned 85% attach rate of services on large infrastructure deals. In this quarter, 22 of 28 deals. I just wanted to see what specific solutions are driving that attach rate? And maybe how should we think about it progressing over the next 6 to 12 months? Thank you.

你好。這是瑞恩替補拉姆齊。感謝您今天回答我的問題。上個季度，您提到大型基礎設施交易的服務附加率為 85%。本季 28 筆交易中有 22 筆。我只是想看看哪些具體的解決方案正在推動附加率？也許我們應該如何看待未來 6 到 12 個月的進展？謝謝。

Yeah, so I think -- thank you very much. That's a great question. If you recall, we pivoted the whole go-to-market motion from infrastructure-led to services-led. There was a bold decision we as a company made 18, 19 months ago. We read that the whole go-to-market organization. We enable the sales organization, and today, we have a very good services-led motion where we are penetrating the enterprises selectively, expanding into the mid-market. And our commercial motion for the [SOVSMB] working with the hyperscaler is also hitting in all cylinders.

是的，所以我想——非常感謝。這是一個很好的問題。如果您還記得的話，我們將整個市場進入行動從基礎設施主導轉向服務主導。作為一家公司，我們在 18、19 個月前做出了一個大膽的決定。我們讀到了整個上市組織。我們為銷售組織提供支持，今天，我們有一個非常好的以服務為主導的行動，我們有選擇地滲透到企業，擴展到中端市場。我們針對與超大規模器合作的 [SOVSMB] 的商業動議也正在全力以赴。

So to answer your question specifically, I think you will see us -- the services-led motion has resulted in us talking now to the C-level of the organization. So this is a completely different discussion we are having with our customers today. Unlike an infrastructure-led where we go from a procurement trend motion to the C-level here, we are coming from C-level to the procurement team.

因此，為了具體回答您的問題，我想您會看到我們——以服務為主導的動議導致我們現在與組織的 C 級人員進行對話。因此，這是我們今天與客戶進行的完全不同的討論。與基礎設施主導的情況不同，我們從採購趨勢動議到 C 級，我們是從 C 級到採購團隊。

So it's adding a lot of value and it is resulting in two things. Number one, we are going to go to continue to drive our high-margin services into those accounts. And number two, we are also seeing benefits to our infrastructure resale too, where we are able to protect margins on this infrastructure resale. Because instead of having a discussion with procurement organization, where it's only pricing and discount related, now we are having a discussion at the C-level, and we are bringing a holistic value to our customers. So this has completely transformed the way we look at our public cloud business.

所以它增加了很多價值，並帶來了兩件事。第一，我們將繼續將我們的高利潤服務推向這些帳戶。第二，我們也看到了基礎設施轉售的好處，我們能夠保護基礎設施轉售的利潤。因為現在我們不再與採購組織進行討論，只討論定價和折扣相關的問題，而是在 C 級進行討論，我們正在為客戶帶來整體價值。因此，這徹底改變了我們看待公有雲業務的方式。

Thank you. (Operator Instructions) At this time, I'm showing no further questions. I would now like to turn it back to Sagar Hebbar of Investor Relations for closing remarks.

謝謝。（操作員說明）此時，我不會再提出任何問題。現在我想請投資者關係部的薩加爾·赫巴爾 (Sagar Hebbar) 發表結束語。

Thank you, everyone, for joining us. If we did not get to your question or if you have a follow-up, please e-mail us at ir@rackspace.com. Have a great evening, everyone.

謝謝大家加入我們。如果我們沒有回答您的問題或您有後續行動，請發送電子郵件至 ir@rackspace.com。祝大家有個愉快的夜晚。

Thank you for your participation in today's conference. This does conclude the program and you may now disconnect.

感謝您參加今天的會議。這確實結束了程序，您現在可以斷開連接。