SAN ANTONIO - Rackspace Technology (NASDAQ: NASDAQ:RXT), a prominent provider of hybrid multicloud technology solutions, announced on Thursday the appointment of Mark Gross as a new member of its Board of Directors. Gross brings a wealth of experience with over 25 years in business and executive leadership, particularly in financial management and business transformation.
The appointment follows the unexpected passing of Thomas Cole during the recent holiday season. Cole had been a member of the Board for a brief period before his death. Rackspace CEO Amar Maletira expressed the company's deep loss and extended condolences to Cole's family, while also acknowledging the potential impact Gross's experience could have on the company's future.
Gross has a notable track record in corporate governance, currently serving as a board member and governance committee chair at Diebold-Nixdorf, and holding positions such as executive chairman of Southeastern Grocers and co-chairman of Northeast Grocery Inc. His previous roles include president, CEO, and director of Supervalu, and leadership roles at C&S Wholesale Grocers. In addition to his corporate roles, Gross spent seven years as an attorney with Skadden, Arps, Slate, Meagher & Flom LLP.
His educational background includes a law degree from the University of Pennsylvania and a Bachelor of Arts from Dartmouth College.
Rackspace Technology, headquartered in San Antonio, specializes in designing, building, and operating cloud environments for customers across various platforms and technology stacks. The company aims to partner with customers throughout their cloud journey, from modernizing applications to adopting new technologies.
This board appointment is based on a press release statement of Rackspace Technology's leadership.
InvestingPro Insights
As Rackspace Technology (NASDAQ: RXT) welcomes Mark Gross to its Board of Directors, the company's financial future remains a topic of interest for investors. According to InvestingPro data, Rackspace has a market capitalization of $344.09 million, reflecting its standing in the industry. However, the company's financial performance has shown some challenges, with a negative P/E Ratio (Adjusted) for the last twelve months as of Q3 2023 at -1.18, and a Revenue Growth for the same period at -2.83%. These figures suggest that while the company is a significant player in the cloud services market, it has faced some headwinds in terms of profitability and revenue expansion.
InvestingPro Tips highlight that Rackspace's stock price movements have been quite volatile, and analysts do not anticipate the company will be profitable this year. Moreover, the stock has experienced a significant downturn over the last six months, with a 6 Month Price Total Return as of Y2024.D40 at -34.3%. On the brighter side, the company has shown a strong return over the last three months, boasting a 20.91% increase in the same period, indicating some recovery in investor confidence.
For those considering an investment in Rackspace Technology, it's worth noting that the company does not pay a dividend to shareholders. This could influence the decision-making process for income-focused investors.
For a more comprehensive analysis, including additional InvestingPro Tips that could further inform investment decisions, visit https://www.investing.com/pro/RXT. There are currently 5 additional tips available on InvestingPro. To access these insights and more, use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year InvestingPro+ subscription.
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