Rackspace Technology Inc (RXT) 2025 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Rackspace second-quarter 2025 earnings conference call. (Operator Instructions) Please be advised of today's conference is being recorded.

您好，感謝您的支持。歡迎參加 Rackspace 2025 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄製。

I'd now like to hear the conference over to Sagar Hebbar, Head of Investor Relations. Please go ahead.

現在我想將會議發言交給投資人關係主管 Sagar Hebbar。請繼續。

Thank you and welcome to Rackspace Technologies second-quarter 2025 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.

感謝您並歡迎參加 Rackspace Technologies 2025 年第二季財報電話會議。我是投資人關係主管 Sagar Hebbar。參加今天電話會議的還有我們的執行長 Amar Maletira 和我們的財務長 Mark Marino。

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 certainties is included in our SEC filings. Rackspace Technology assumes no obligation to update the information presented on the call, except as required by law.

提醒一下，我們在這次電話會議上發表的某些評論將是前瞻性的。這些聲明涉及風險和不確定性，可能導致實際結果有所不同。我們向美國證券交易委員會提交的文件中討論了這些風險和確定性。除非法律要求，否則 Rackspace Technology 不承擔更新通話中提供的資訊的義務。

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 compatible GAAP measures in the earnings press release and presentation, both of which are available on our Investor Relations website.

我們的報告包括某些非公認會計準則財務指標和這些指標的調整，我們相信這些指標為我們的投資者提供了有用的資訊。根據美國證券交易委員會 (SEC) 的規定，我們在收益新聞稿和簡報中提供了這些指標與其最直接相容的 GAAP 指標的對帳表，這兩項資料均可在我們的投資者關係網站上查閱。

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，讓他報告業務的最新進展。

Thank you, Sagar, and welcome, everyone, to our second quarter 2025 earnings conference call. Results for the second quarter met our expectations across all key metrics. Revenue and operating profit exceeded the midpoint of our guided range, while EPS was within our guided range, marking our 12th consecutive quarter of meeting or exceeding guidance.

謝謝您，Sagar，歡迎大家參加我們的 2025 年第二季財報電話會議。第二季的業績所有關鍵指標都符合我們的預期。收入和營業利潤超過了我們指導範圍的中點，而每股收益也在我們的指導範圍內，這標誌著我們連續第 12 個季度達到或超過指導水平。

Sales pipeline generation remains strong across both the business units with bookings, as measured by annual contract value, growing 2% sequentially and 16% year over year. The outperformance was primarily driven by Private Cloud, which secured several key wins.

兩個業務部門的銷售通路產生依然強勁，以年度合約價值衡量的訂單量較上季成長 2%，較去年同期成長 16%。這項優異表現主要得益於私有雲，它獲得了幾項關鍵勝利。

Non-GAAP operating profit grew 34% year over year, and we delivered positive cash from operations of $8 million for the quarter, reflecting our operational and financial discipline.

非公認會計準則營業利潤年增 34%，本季我們的營運現金流為 800 萬美元，體現了我們的營運和財務紀律。

Now let me get into our segment performance, starting with Private Cloud. Private Cloud bookings in the second quarter of 2025 grew 24% sequentially and 42% year over year, driven by several large, long-term deals across key industries, including health care, BFSI and telecom.

現在讓我來介紹一下我們的細分市場表現，從私有雲開始。2025 年第二季私有雲預訂量較上季成長 24%，較去年同期成長 42%，這得益於醫療保健、BFSI 和電信等主要產業的幾筆大型長期交易。

We also saw double-digit year-over-year bookings growth across both the Americas and EMEA, underscoring the broad-based strength of our go-to-market efforts. This solid bookings performance was despite a large health care deal that got pushed, and we expect this opportunity to close within the third quarter.

我們也看到美洲和歐洲、中東和非洲地區的預訂量同比增長了兩位數，凸顯了我們進入市場的努力的廣泛實力。儘管有一項大型醫療保健交易被推遲，但預訂量仍然表現穩健，我們預計這一機會將在第三季內完成。

Revenue for the Private Cloud segment came in at $250 million, in line with guidance and down 4% year over year. We are seeing continued revenue stabilization as prior year bookings convert into revenue, reflecting the strength of our underlying business. Our disciplined focus on revenue retention and growing bookings momentum continues to lay a solid foundation for our long-term, sustainable growth.

私有雲部門的營收為 2.5 億美元，符合預期，較去年同期下降 4%。隨著上一年的預訂轉化為收入，我們看到收入持續穩定，這反映了我們基礎業務的實力。我們嚴格關注收入保留和不斷增長的預訂勢頭，這為我們的長期可持續增長奠定了堅實的基礎。

We are also making strong progress in our strategic expansion into the mid-market and enterprise segments, positioning us to capture new opportunities and drive future scale. In April, we signed a long-term agreement with a leading health care provider in the US to host their virtual desktop infrastructure supporting clinical kiosks.

我們在向中端市場和企業領域的策略擴張方面也取得了長足的進步，使我們能夠抓住新的機會並推動未來的規模擴張。今年 4 月，我們與美國一家領先的醫療保健提供者簽署了一項長期協議，為其託管支援臨床資訊亭的虛擬桌面基礎設施。

This was previously hosted on a hyperscale public cloud. The customer is getting enhanced control, consistent performance, predictable and highly competitive cost by transitioning the environment to Rackspace's secure Private Cloud. This win underscores Rackspace's expertise in delivering compliant, high-performance infrastructure for critical health care and other enterprise workloads.

它之前託管在超大規模公有雲上。透過將環境轉換到 Rackspace 的安全私有雲，客戶可以獲得增強的控制、一致的效能、可預測且極具競爭力的成本。此次勝利凸顯了 Rackspace 在為關鍵醫療保健和其他企業工作負載提供合規、高效能基礎架構方面的專業知識。

We also expanded our relationship with a large UK bank through a strategic engagement to modernize its entire edge infrastructure. We have been engaged to deploy a secure network solution across approximately 80 branch locations. Our engagement is a comprehensive end-to-end managed service over five years.

我們也透過策略合作擴大了與一家大型英國銀行的關係，以使其整個邊緣基礎設施現代化。我們致力於在約 80 個分公司部署安全網路解決方案。我們的合作是五年內全面的端到端託管服務。

Our Private Cloud team continues to deliver innovative solutions. In the second quarter, we had 13 product releases and 28 enhancements. More notably, we announced Rackspace OpenStack Business, a new open source dedicated solution for organizations running mission-critical or regulated workloads. This fully managed offering delivers enhanced performance, improved security and comprehensive operational support, all without the overhead and complexity of managing your own infrastructure.

我們的私有雲團隊不斷提供創新的解決方案。第二季度，我們發布了 13 款產品並進行了 28 項增強。更值得注意的是，我們宣布推出 Rackspace OpenStack Business，這是一種針對運行關鍵任務或受監管工作負載的組織的新型開源專用解決方案。這種完全託管的產品可提供增強的性能、改進的安全性和全面的營運支持，而所有這些都無需管理您自己的基礎設施的開銷和複雜性。

Overall go-to-market and solutions momentum in the Private Cloud segment remains strong, reflected in both our results and customer wins. We remain focused on expanding our footprint while continuing to defend and grow our Private Cloud business.

私有雲領域整體的市場進入和解決方案勢頭依然強勁，這反映在我們的業績和客戶勝利上。我們將繼續專注於擴大我們的業務範圍，同時繼續捍衛和發展我們的私有雲業務。

Now turning to Public Cloud. In the second quarter, bookings for Public Cloud grew 1% year over year, primarily driven by strong performance in EMEA. Services bookings increased 6% sequentially, reflecting our disciplined focus on higher-value engagements.

現在轉向公有雲。第二季度，公有雲預訂量年增 1%，主要得益於 EMEA 地區的強勁表現。服務預訂量較上季成長 6%，反映出我們對更高價值業務的專注。

Revenue for the segment totaled $417 million, exceeding our guided range. Revenue declined 2% year over year due to expected declines in lower-margin infrastructure resale. We continue to focus on services revenue, which grew 3% sequentially and remained flat year over year.

該部門總收入為 4.17 億美元，超出了我們的預期範圍。由於預期利潤率較低的基礎設施轉售量下降，營收年減 2%。我們繼續關注服務收入，該收入環比增長 3%，與去年同期持平。

We are also seeing success in increasing our footprint with existing relationships. In the second quarter, we expanded our engagement with a top-tier aircraft leasing company. They are leveraging Rackspace's data modernization and engineering services to accelerate their data transformation strategy and platform implementation.

我們也看到，透過與現有關係的合作，我們擴大了影響力，並取得了成功。第二季度，我們擴大了與一家頂級飛機租賃公司的合作。他們正在利用 Rackspace 的資料現代化和工程服務來加速其資料轉換策略和平台實施。

Additionally, we expanded our offering with a midsized cybersecurity company through a long-term deal that bundles infrastructure and services, demonstrating our continued ability to deliver integrated solutions that align with client needs.

此外，我們透過與中型網路安全公司達成的捆綁基礎設施和服務的長期協議擴展了我們的服務範圍，展示了我們持續提供符合客戶需求的整合解決方案的能力。

On the product side, we introduced Rackspace CloudOps, a managed service that offers 24/7 operational support in the cloud. CloudOps is purpose-built for mid-market organizations at any stage of their cloud journey, helping them drive operational excellence, optimize performance and maximize cloud efficiency. This expands the service offerings that can be attached to infrastructure resale.

在產品方面，我們推出了 Rackspace CloudOps，這是一項在雲端提供全天候營運支援的託管服務。CloudOps 專為處於雲端之旅任何階段的中型市場組織而設計，協助他們推動卓越營運、優化效能並最大限度地提高雲端效率。這擴展了可以附加到基礎設施轉售的服務範圍。

In summary, our focus on higher-value services, strategic bundling and expanding existing customer relationship is yielding positive results. Our services revenue continued to grow sequentially, underscoring continued progress in our Public Cloud business.

總之，我們專注於更高價值的服務、策略性捆綁和擴大現有客戶關係正在取得正面成果。我們的服務收入持續持續成長，突顯了我們公有雲業務的持續進步。

Turning to AI. We continue to make good progress with FAIR, which is Foundry for AI by Rackspace with over 80 wins and over 235 opportunities in our pipeline, of which over 20% are already in advanced stages, along with several active leads we are pursuing.

轉向人工智慧。我們在 FAIR 方面繼續取得良好進展，FAIR 是 Rackspace 的 AI 鑄造廠，我們已獲得超過 80 個勝利，並在我們的渠道中擁有超過 235 個機會，其中超過 20％ 已經處於後期階段，同時我們正在尋求幾個積極的線索。

Last month, we announced a strategic alliance with enterprise AI agent innovator, Sema4.ai, bringing together Rackspace's application and infrastructure management expertise with Sema4.ai's advanced 'SAFE' AI Agent Platform. Through this partnership, organizations will be able to rapidly deploy scalable, production-grade AI agents across key business functions built on a foundation of strong governance, transparency and security.

上個月，我們宣布與企業 AI 代理創新者 Sema4.ai 建立策略聯盟，將 Rackspace 的應用程式和基礎設施管理專業知識與 Sema4.ai 先進的「SAFE」AI 代理平台結合在一起。透過此次合作，各組織將能夠在強大的治理、透明度和安全性的基礎上，在關鍵業務功能中快速部署可擴展的生產級人工智慧代理。

Additionally, we launched the Fair Model Context Protocol Enterprise Accelerator on the AWS Marketplace, empowering organizations to deploy AI agents at scale with robust security and seamless integration. This solution delivers 70%-plus reduction in legacy application integration time, accelerating value realization and enabling real-world impact across health care, finance and manufacturing sectors.

此外，我們在 AWS Marketplace 上推出了公平模型上下文協議企業加速器，使組織能夠大規模部署 AI 代理，並具有強大的安全性和無縫整合。該解決方案可將傳統應用程式整合時間縮短 70% 以上，加速價值實現並對醫療保健、金融和製造業產生實際影響。

We are also driving AI innovation across our service offerings in Public Cloud. AI integration within our services spans three areas: accelerating cloud migration time lines by 20% to 30%, reducing operational overhead for our managed services teams by 10% to 20% and automating security operations at scale.

我們也在公有雲服務產品中推動人工智慧創新。我們服務中的人工智慧整合涵蓋三個領域：將雲端遷移時間線加快 20% 至 30%，將託管服務團隊的營運開銷降低 10% 至 20%，並大規模實現安全營運自動化。

For example, we recently reduced migration time by 40% using SnowConvert AI for a leading health care services company. These AI at scale initiatives are accelerating time to value for customers and strengthening our position in enterprise transformation through intelligent automation.

例如，我們最近使用 SnowConvert AI 為一家領先的醫療服務公司縮短了 40% 的遷移時間。這些大規模人工智慧計畫正在加快客戶的價值實現時間，並透過智慧自動化加強我們在企業轉型中的地位。

Before I wrap up, I want to sincerely thank our customers, partners and all our actors. I'm pleased with what we have achieved this quarter and encouraged to see momentum in acquiring new and expanding with existing customers. We remain laser-focused on our key strategic priorities for 2025, building a sustainable business model that consistently delivers revenue, profit and cash flow growth.

在結束之前，我想真誠地感謝我們的客戶、合作夥伴和所有演員。我對我們本季取得的成績感到滿意，並很高興看到我們在獲取新客戶和擴大現有客戶方面的勢頭。我們將繼續專注於 2025 年的關鍵策略重點，建立可持續的商業模式，持續實現收入、利潤和現金流成長。

With that, I will turn it over to Mark to walk us through the financial results and guidance.

接下來，我將把時間交給馬克，讓他向我們介紹財務結果和指導。

Thanks, Amar. In the second quarter, total company GAAP revenue of $666 million was down 3% year over year and slightly up sequentially, beating our guidance, driven by solid performance across both business units. Non-GAAP gross profit margin was 19.8% of GAAP revenue, slightly down year over year, driven by lower cost absorption in Private Cloud, while it remained flat sequentially.

謝謝，阿瑪爾。第二季度，該公司 GAAP 總營收為 6.66 億美元，年減 3%，較上季略有成長，超出我們的預期，這得益於兩個業務部門的穩健表現。非公認會計準則毛利率為公認會計準則收入的 19.8%，年比略有下降，原因是私有雲成本吸收較低，但與上一季持平。

For the quarter, non-GAAP operating profit was $27 million, exceeding the high end of our guidance and up 34% year over year. The improvement was largely due to OpEx efficiencies in Public Cloud and in corporate overhead, partially offset by lower cost absorption in Private Cloud.

本季度，非公認會計準則營業利潤為 2,700 萬美元，超過了我們預期的上限，年增 34%。這項改善主要歸功於公有雲和企業管理費用的營運支出效率，但私有雲成本吸收的降低部分抵銷了這項改善。

Non-GAAP loss per share was $0.06 at the lower end of our guided range of $0.04 to $0.06 loss per share. This was primarily due to higher expenses within the other income and expense line, driven by accruals related to data center leases as well as lower-than-expected diluted share count. Second-quarter cash flow from operations was $8 million and free cash flow was negative $12 million. We ended the quarter with $104 million in cash on hand and $414 million of total liquidity.

非公認會計準則每股虧損為 0.06 美元，處於我們指引的每股虧損 0.04 美元至 0.06 美元範圍的下限。這主要是由於其他收入和支出項目內的支出增加，受與資料中心租賃相關的應計費用以及低於預期的稀釋股數所致。第二季經營現金流為 800 萬美元，自由現金流為負 1,200 萬美元。本季末，我們手頭上有 1.04 億美元的現金，總流動資金為 4.14 億美元。

Turning to our segment results. For Private Cloud, GAAP revenue for the second quarter was $250 million, which was in line with our guidance. Private Cloud revenue decreased 4% year over year due to customers rolling off older-generation offerings, partially offset by revenue from new bookings. Sequentially, Private Cloud revenue was relatively flat.

談到我們的分部表現。對於私有雲，第二季的 GAAP 營收為 2.5 億美元，符合我們的預期。由於客戶放棄舊一代產品，私有雲收入年減 4%，但新預訂收入部分抵銷了這一下降。私有雲收入則相對持平。

Private Cloud non-GAAP gross margin was 36.8%, down 50 basis points year over year and 30 basis points sequentially, primarily due to lower fixed cost absorption on lower revenue. Non-GAAP segment operating margin was 24.6%, a year-over-year decline of 190 basis points, driven by lower gross margins and higher OpEx. Sequentially, non-GAAP segment operating margin was up 20 basis points, driven by lower OpEx, partially offset by lower non-GAAP gross margin.

私有雲非 GAAP 毛利率為 36.8%，較去年同期下降 50 個基點，較上季下降 30 個基點，主要原因是收入下降導致固定成本吸收減少。非公認會計準則部門營業利潤率為 24.6%，年減 190 個基點，原因是毛利率下降和營運支出增加。與上一季相比，非公認會計準則部門營業利潤率上升了 20 個基點，這得益於營運支出的降低，但被非公認會計準則毛利率的降低部分抵消。

In our Public Cloud segment, GAAP revenue was $417 million, surpassing the high end of our guidance. Public Cloud revenue was down 2% year over year as a result of a decline in infrastructure volumes and flat sequentially, driven by growth in high-margin services business, offset by declines in low-margin infrastructure resale.

在我們的公有雲部門，GAAP 收入為 4.17 億美元，超過了我們預期的最高水準。公有雲收入年減 2%，原因是基礎設施數量下降，環比持平，這得益於高利潤服務業務的成長，但被低利潤基礎設施轉售量的下降所抵消。

Non-GAAP gross margin was 9.6%, down 20 basis points year over year, reflecting onetime benefits realized last year. Sequentially, non-GAAP gross margin was up 10 basis points, driven by favorable rate and mix. Non-GAAP segment operating margin was 3.9%, up 140 basis points year over year due to improved OpEx efficiency and slightly down sequentially as a result of higher OpEx.

非公認會計準則毛利率為 9.6%，年減 20 個基點，反映了去年實現的一次性收益。受有利的利率和產品組合的推動，非 GAAP 毛利率較上季上升 10 個基點。非公認會計準則部門營業利潤率為 3.9%，由於營運支出效率提高，較去年同期成長 140 個基點，但由於營運支出增加，較上季略有下降。

Now on to guidance. We expect third quarter GAAP revenue of $660 million to $674 million, flat sequentially and down 1% year over year at the midpoint. In Private Cloud, we expect revenue of $246 million to $254 million, flat sequentially and down 3% year over year at the midpoint.

現在開始指導。我們預計第三季 GAAP 營收為 6.6 億至 6.74 億美元，季持平，年比中位數下降 1%。在私有雲方面，我們預期營收為 2.46 億美元至 2.54 億美元，環比持平，年比中位數下降 3%。

We expect Public Cloud revenue of $414 million to $420 million, flat sequentially at the midpoint. Total non-GAAP operating profit is expected to be $30 million to $32 million and non-GAAP loss per share is expected to be $0.04 to $0.06. Our non-GAAP tax rate is expected to be 26% and non-GAAP share count is expected to be 239 million to 241 million shares.

我們預計公有雲營收為 4.14 億美元至 4.2 億美元，與上一季持平。非公認會計準則下，預計總營業利潤為3,000萬至3,200萬美元，非公認會計準則下每股虧損預計為0.04至0.06美元。非公認會計準則下，預估稅率為26%，非公認會計準則下，預估股票數為2.39億至2.41億股。

In the second half of 2025, we expect strong free cash flow generation, positioning us to exit the year with $70 million to $80 million in positive free cash flow. This trajectory reflects the strength of our business model and financial discipline.

我們預計 2025 年下半年將產生強勁的自由現金流，使我們在年底實現 7,000 萬至 8,000 萬美元的正自由現金流。這一軌跡反映了我們的商業模式和財務紀律的實力。

I will now turn the call back over to Sagar.

現在我將把電話轉回給薩加爾。

Thank you, Mark. Let us begin the question and answer session. We ask everyone am make 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。我們要求每個人就一個問題進行討論並進行跟進。請繼續

(Operator Instructions) Kevin McVeigh, UBS.

（操作員指示）瑞銀的 Kevin McVeigh。

Great. Thank you so much and congratulations on the results. Congratulations on the results. I don't know whether it's for Amar, but maybe both. Maybe talk about the guidance. It looks like a little bit of uptick sequentially, but definitely more outpaced success on the free cash flow.

偉大的。非常感謝，並祝賀你所取得的成果。恭喜你取得這樣的成績。我不知道這是否適合阿馬爾，但也許兩者皆有。也許談談指導。它看起來比上一季略有上升，但絕對超過了自由現金流的成功。

So maybe talk about -- is there any seasonality you think about in the guidance sequentially just relative to where you came in? And then ultimately, if you could spend a minute on the free cash flow conversion as well.

那麼也許可以談談——您是否考慮過在指導中相對於您所進入的地方的季節性？最後，如果您能花一點時間討論自由現金流轉換。

Go ahead, Mark.

繼續吧，馬克。

Yeah, sure, so yeah, thanks, Kevin, for the question. Yeah, in terms of our Q3 guidance, you're right, overall $660 million to $674 million with the midpoint around $667 million, right? We're seeing things ultimately flat sequentially from a Private Cloud perspective. We are forecasting some uptick on the Public Cloud side, especially on the services, while infra continues to stay flattish to slightly down.

是的，當然，謝謝凱文提出這個問題。是的，就我們的第三季指引而言，您說得對，總體為 6.6 億美元至 6.74 億美元，中間值約為 6.67 億美元，對嗎？從私有雲的角度來看，我們看到事情最終是持平的。我們預測公有雲方面會有所上升，特別是在服務方面，而基礎設施方面將繼續保持穩定或略有下降。

And in terms of free cash flow for the year, you saw we called out positive for the second half, positive for the full year. We did have some seasonality in the first half of the year related to some onetime vendor prepayments, and those will not cycle in the second half. So that's driving a lot of our improvement as well as higher adjusted EBITDA and overall working capital performance. So I feel pretty confident about that free cash flow range.

就今年的自由現金流而言，您會看到我們預測下半年和全年的自由現金流均為正值。今年上半年我們確實有一些與一次性供應商預付款相關的季節性因素，而這些因素在下半年不會再出現。因此，這推動了我們的許多改進以及更高的調整後 EBITDA 和整體營運資本績效。因此，我對自由現金流範圍非常有信心。

Terrific. Thank you.

了不起。謝謝。

And so Kevin, if I may just give some color on Private Cloud. So as Mark mentioned, we are forecasting a flat revenue in Private Cloud sequentially. Now this will be, Kevin, as you know, this is 3 quarters in a row. As we had mentioned before, we expect the Private Cloud business to start stabilizing, and that's exactly what we are seeing. And we feel good about the bookings performance that we had.

那麼凱文，我可以簡單介紹一下私有雲嗎？正如馬克所提到的，我們預測私有雲的收入將保持穩定。凱文，正如你所知，這已經是連續 3 個季度了。正如我們之前提到的，我們預期私有雲業務將開始穩定，而這正是我們所看到的。我們對預訂業績感到滿意。

The mix of the bookings also came in quite favorable. It was a broad-based bookings performance in the Private Cloud business, and so pretty pleased with the performance there. In fact, just to give you some color here, the mix of the bookings in Private Cloud has actually changed significantly from a deal size perspective.

預訂狀況也相當不錯。這是私有雲業務的廣泛預訂表現，因此對此表現非常滿意。事實上，只是為了給你一些說明，從交易規模的角度來看，私有雲的預訂組合實際上已經發生了顯著變化。

Now if you go back to fiscal '22, roughly about 60% of the deals that we had were about small-sized deals, right, with lower ACV value. And now if you -- and about 40% was midsized to large-sized deals. And that has now actually flipped in 2024 and 2025.

現在，如果回顧 22 財年，我們大約 60% 的交易都是小型交易，ACV 值較低。現在如果你——大約 40% 是中型到大型交易。而這一情況實際上在 2024 年和 2025 年已經發生了逆轉。

First half of '25, 40% of the deals were small deals and 60% was large and midsized deals. So that's the very important dynamics that we are starting to see, and this is on top of us growing a double-digit CAGR in the last 2.5 years.

2025 年上半年，40% 的交易為小型交易，60% 為大型和中型交易。這是我們開始看到的非常重要的動態，這是我們在過去 2.5 年內實現兩位數複合年增長率的基礎。

Similarly, the contract length has also gone up. In fact, the contract length, if I have to just go back to '22, we had roughly 25% of our bookings in fiscal '22 where deals were longer than 24 months. Today, in first half of '25 as well as in fiscal '24, that number is now close to 50%. So the deal sizes have gone up. The contract length has gone up, which means we are really building a good book of business here across a lot of -- most of the verticals as well as from a geo perspective.

同樣，合約期限也增加了。事實上，如果我必須回顧 22 年的情況，那麼我們在 22 財年大約有 25% 的訂單期限超過 24 個月。如今，在 2025 年上半年以及 2024 財年，這一數字已接近 50%。因此交易規模有所增加。合約期限已經增加，這意味著我們確實在許多垂直領域以及從地理角度建立了良好的業務記錄。

And on Public Cloud, because since you asked about the guidance, in Public Cloud, we feel good about the services performance. This quarter, we saw services revenue in Q2 was flat sequentially. We expect that to -- was actually up sequentially and flat year on year. We expect that to -- services revenue to start growing in the second half. In fact, in Q4 of 2025, our fourth quarter, we expect our services business in Public Cloud to grow anywhere from 10% to 20% year on year.

關於公有雲，因為您詢問了有關指導的問題，所以在公有雲方面，我們對服務效能感到滿意。本季度，我們看到第二季度的服務收入與上一季持平。我們預計，這一數字實際上是環比上升，與去年同期持平。我們預計服務收入將在下半年開始成長。事實上，在 2025 年第四季度，我們預計我們的公有雲服務業務將年增 10% 至 20%。

So which will be a real good turn in the business in the Public Cloud business. So pretty pleased with the performance in the Public Cloud business, too.

因此，這將是公有雲業務的一個真正好的轉折。因此，我對公有雲業務的表現也非常滿意。

And Amar, just remind me, and I know we talked about this a couple of times, but the services on the private side and I guess, what's driving the strength on the public side? And then just any thoughts on the services, I guess, more on the implementation work on the private? Just anything just around services on the private side as well? I know maybe if you have just any thoughts.

阿馬爾，請提醒我一下，我知道我們已經討論過這個問題幾次了，但是私人方面的服務，我想，是什麼推動了公共方面的力量呢？那麼，我想您對服務有什麼想法嗎？更多的是關於私人實施工作？還有什麼與私人服務有關的事嗎？我知道也許如果你有任何想法。

Yeah, yeah. Thank you very much. So let's start with the Public Cloud side, Kevin. Just as a recap, we have three types of services that we offer to our customers. On one hand is Professional Services.

是啊是啊。非常感謝。那麼讓我們從公共雲端開始吧，凱文。總結一下，我們為客戶提供三種類型的服務。一方面是專業服務。

And then you have managed services on the other end of the spectrum, which is long-term contracts and very sticky. And then right in the middle is Elastic Engineering. And then we offer this across applications, platform as well as data.

然後，你就有了另一端的管理服務，即長期合同，而且非常粘稠。中間是彈性工程。然後我們跨應用程式、平台和數據提供此功能。

We are starting to see broad-based strength across all those 3 services, mainly Professional Services. As we go and drive more cloud migration work, we also drive work in AI as an example, which are mainly Professional Services engagement.

我們開始看到這三項服務（主要是專業服務）的廣泛實力。隨著我們推動更多雲端遷移工作，我們也推動人工智慧的工作，主要是專業服務參與。

We are starting to see our data business, for example, I've mentioned that before, our data business this quarter in Q2, I mean, in the second quarter, grew sequentially -- the bookings grew sequentially significantly. So we are starting to see strength in data, strength in applications, strength in platform support across Professional Services, Elastic Engineering, and Managed Services in that quarter.

例如，我們開始看到我們的數據業務，我之前提到過，我們第二季度的數據業務，也就是第二季度，環比增長——預訂量環比大幅增長。因此，我們開始看到該季度數據、應用程式以及專業服務、彈性工程和託管服務平台支援方面的優勢。

So -- and the attach of our services to infrastructure also went up. About -- when we do an infrastructure sale today, 70% -- we attach 70% of services to it. So for every dollar of infrastructure, we are attaching at least $0.70 of services to this infrastructure resale business. So the services attach motion is working well, good execution on the field. And also, it's -- and the offerings that we have is playing to where the market is heading.

因此—我們的服務與基礎設施的關聯性也上升了。大約——當我們今天進行基礎設施銷售時，70%——我們將 70% 的服務附加到它上面。因此，對於每花費一美元的基礎設施，我們都會為該基礎設施轉售業務附加至少 0.70 美元的服務。因此，服務附加動作運作良好，現場執行良好。而且，我們提供的產品也符合市場的發展方向。

More and more work is on the transformational side. Digital transformation is led by cloud and AI, and that really plays to our strength in Public Cloud. So that's -- those are the factors, macro as well as our execution that gives us confidence that we are now turning the corner on services.

越來越多的工作集中在轉型方面。數位轉型由雲端和人工智慧引領，這真正發揮了我們在公有雲方面的優勢。所以，這些都是宏觀因素以及我們的執行力，讓我們有信心我們現在正在扭轉服務業的局面。

On the Private Cloud side, we offer managed Private Cloud for our customers. Clearly, health care, we really hit the sweet spot with health care, just strong even in Q2. When I look at just the health care vertical in the first half, it grew 60%-plus year on year compared to first half of last year from a revenue perspective, so really, really good performance there. We have good deals in the funnel, and we also are starting to see traction. We had good traction in the telco sector with some very good deals signed.

在私有雲方面，我們為客戶提供託管私有雲。顯然，在醫療保健方面，我們確實達到了最佳狀態，甚至在第二季也表現強勁。當我只看上半年的醫療保健垂直領域時，從收入角度來看，與去年上半年相比，其同比增長了 60% 以上，因此該領域的表現確實非常好。我們在通路中擁有良好的交易，我們也開始看到牽引力。我們在電信領域取得了良好的進展，並簽署了一些非常好的交易。

And if I look at the services component, the main services component in Private Cloud, Kevin, is all managed services, very, very sticky business. Once we get this business, it stays with us for the next three to close to seven years. And that's the -- the average contract length has also gone up significantly in that business. Hopefully, that's helpful.

如果我看一下服務元件，私有雲中的主要服務元件，凱文，都是託管服務，非常非常棘手的業務。一旦我們獲得這項業務，它將在未來三到七年內伴隨我們。而且，該行業的平均合約期限也大幅增加。希望這會有所幫助。

Very helpful. Thank you so much, Amar.

非常有幫助。非常感謝，阿瑪爾。

Thanks, Kevin.

謝謝，凱文。

Frank Louthan, Raymond James.

法蘭克洛森、雷蒙詹姆斯。

Great, thank you. You mentioned getting some more traction in mid-market. what investments do you think you'll need to make there, either on the sales or the support side? And then with regard to the partnership with some of the AI agents, how did that come about? And when can we begin to see some of the benefits of that more broadly across the business? Thanks.

太好了，謝謝。您提到在中端市場獲得更多的吸引力。您認為您需要在銷售或支援方面進行哪些投資？那麼關於與一些人工智慧代理商的合作，這是如何實現的呢？那麼我們什麼時候才能在整個業務範圍內看到它帶來的好處呢？謝謝。

Yeah, absolutely. Thanks, Frank. Thanks, Frank. So in terms of -- so the focus has always been, Frank, in mid-market and enterprise, both -- in both Public Cloud as well as Private Cloud business. And we have made those investments in our fiscal -- end of fiscal '23 and fiscal '24, and now you're starting to see benefit of this. For example, in our Public Cloud business, we have grown in Public Cloud for several quarters in a row from a bookings perspective.

是的，絕對是如此。謝謝，弗蘭克。謝謝，弗蘭克。因此就…而言，弗蘭克，重點始終是中端市場和企業，包括公有雲和私有雲業務。我們在 23 財年末和 24 財年末進行了這些投資，現在您開始看到其中的好處了。例如，在我們的公有雲業務中，從預訂量的角度來看，我們已經連續幾季在公有雲方面成長。

So not much of investment -- incremental investments needed now from a go-to-market perspective, Frank. We will be making investments on the edge. For example, our health care vertical has really kicked off very well. We went from being a small player in 2022 to being a really good -- being a very viable, credible player in the health care provider space with our Private Cloud offerings in '24 and '25. So not much of investment.

因此，從進入市場的角度來看，現在不需要太多的投資——只需要增量投資，弗蘭克。我們將進行邊緣投資。例如，我們的醫療保健垂直領域確實起步很好。我們從 2022 年的一家小公司發展成為一家非常優秀的公司——憑藉 2024 年和 2025 年推出的私有雲產品，成為醫療保健提供者領域中非常可行、可靠的公司。所以投資不多。

Most of the investments will be -- even the CapEx investments will be success-based. So if you win a customer, then only we making investments in CapEx.

大多數投資——甚至資本支出投資也將以成功為基礎。因此，如果您贏得客戶，那麼我們只會對資本支出進行投資。

Now talking about AI, and we have started to see a lot of traction in AI in both the businesses. In fact, let me start with Private Cloud first. As you know, our offering in Private Cloud is we would -- our goal is to become a private AI infrastructure provider for our customers. So we think about workloads, and we will be focusing mainly on inferencing workloads.

現在談論人工智慧，我們已經開始看到人工智慧在這兩個行業中都取得了巨大的進展。事實上，讓我先從私有雲開始。如您所知，我們在私有雲方面提供的服務是－我們的目標是成為客戶的私有人工智慧基礎架構供應商。因此，我們考慮工作負載，並且主要關注推理工作負載。

That inferencing workload, Frank, will either be run on public environment, Public Cloud, Private Cloud or at the edge. And we like our chances of winning in the private AI as well as at the edge, and we'll partner with the hyperscalers on the Public Cloud side.

推理工作負載 Frank 將在公共環境、公有雲、私有雲或邊緣運行。我們希望在私有人工智慧和邊緣領域中獲勝，並且我們將與公共雲端的超大規模企業合作。

As an example, for the first time, we won a private AI infrastructure deal with a health care organization in the US that actually supports adults with development disabilities. Now they were facing some major -- there were some major pain points there in terms of care delivery, manual and time-consuming review of services notes, lack of automation.

例如，我們首次與美國一家醫療保健組織達成私人人工智慧基礎設施協議，該組織實際上為患有發育障礙的成年人提供支援。現在他們面臨著一些重大問題——在護理服務方面存在一些重大痛點，包括手動且耗時的服務記錄審查、缺乏自動化。

And so we basically put -- delivered an AI-powered solution, which was a combination of a private AI anywhere managed infrastructure with NVIDIA GPUs as well as our Elastic Engineering services, and we wrap that around with managed services. So this has resulted in 80% reduction in the manual review time.

因此，我們基本上提供了一個由人工智慧驅動的解決方案，它是私有人工智慧隨處託管基礎設施與 NVIDIA GPU 以及我們的彈性工程服務的組合，我們將其與託管服務結合在一起。因此，這使得人工審查時間減少了 80%。

It has improved the care of delivery. So this is a good example of how we are now basically also catering to the customers' needs on having their private AI inferencing workload close to where the data is.

它改善了分娩護理。這是一個很好的例子，說明我們現在基本上也滿足了客戶的需求，讓他們的私人 AI 推理工作負載靠近資料所在的位置。

Similar -- on the Public Cloud side, we implemented really a very good AI -- agentic AI platform with J.Crew, and we went public with that. J.Crew, as you know, is a leading fashion retailer. They were really struggling with the effectiveness and efficiency of their customer, vendor and employee support organization.

類似地——在公有雲方面，我們與 J.Crew 合作實施了一個非常好的 AI 代理 AI 平台，並將其公開。眾所周知，J.Crew 是一家領先的時尚零售商。他們確實在努力提高客戶、供應商和員工支援組織的效力和效率。

So we actually implemented three distinct AI agents: one for their IT department, one for their vendor management and the third was for customer service. And this was architected powered by Amazon's Bedrock as well as cloud SONic models. So great examples of how we are winning now in the AI space.

因此，我們實際上實施了三個不同的 AI 代理：一個用於他們的 IT 部門，一個用於他們的供應商管理，第三個用於客戶服務。這是由亞馬遜的 Bedrock 和雲端 SONic 模型提供支援的架構。這些都是我們在人工智慧領域取得成功的絕佳例子。

We also announced -- since you asked about agentic AI, I want to also highlight this. We announced a good partnership with a company called Sema4.ai., which is a very innovative company backed by Mayfield venture capital firm. And our Rackspace and Sema4.ai are highly complementary in what we bring to the table for our customers.

我們也宣布—既然您詢問了代理人工智慧，我也想強調這一點。我們宣布與一家名為 Sema4.ai 的公司建立良好的合作夥伴關係，這是一家由 Mayfield 創投公司支持的非常創新的公司。我們的 Rackspace 和 Sema4.ai 在為客戶提供的服務方面具有高度的互補性。

For example, Sema4.ai will provide the agentic AI platform and Rackspace then brings in the delivery muscle, including the infrastructure. And so we are basically bringing a complete turnkey solution for, I would say, cutting-edge AI-based agentic platform at the enterprise grade, both from implementation, operations and governance and bringing technology and service solutions together. So we feel very good.

例如，Sema4.ai 將提供代理 AI 平台，而 Rackspace 則提供交付能力，包括基礎設施。因此，我們基本上為企業級的基於人工智慧的尖端代理平台提供了完整的交鑰匙解決方案，包括實施、營運和治理，以及將技術和服務解決方案結合在一起。所以我們感覺非常好。

And then lastly, we are also internally becoming an AI company, Frank. There's a lot to talk about AI. Our CTO, Srini Koushik and his organization, working with all our functional leaders, have done a fantastic job in implementing agentic AI within the company to drive productivity of our functional personnel. Also, it's now we're bringing it to the CSM as well as the sales community.

最後，弗蘭克，我們在內部也正在成為一家人工智慧公司。關於人工智慧有很多值得討論的地方。我們的技術長 Srini Koushik 和他的組織與我們所有的職能領導合作，在公司內部實施代理 AI 以提高職能人員的工作效率方面做得非常出色。此外，現在我們將它帶給 CSM 以及銷售社群。

Okay, great, that's a very great answer, thorough answer. Appreciate that.

好的，太好了，這是一個非常棒的答案，非常透徹的答案。非常感謝。

Thanks, Frank.

謝謝，弗蘭克。

That concludes today's question-and-answer session. I'd like to turn the call back to Sagar Hebbar for closing remarks. Thank you.

今天的問答環節到此結束。我想請 Sagar Hebbar 做最後發言。謝謝。

Thank you, Liz. Thank you, everyone, for joining us today. 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.

謝謝你，莉茲。感謝大家今天加入我們。如果我們沒有解答您的問題，或者您有後續問題，請發送電子郵件至 ir@rackspace.com。祝大家晚上愉快。

This concludes today's conference call Thank you for participating. You may now disconnect

今天的電話會議到此結束，感謝您的參與。現在您可以斷開連接