KYNDRYL REPORTS THIRD QUARTER FISCAL 2024 RESULTS AND RAISES ITS FULL-YEAR OUTLOOK

"In our fiscal third quarter, we once again delivered adjusted EBITDA and adjusted pretax income growth.  Our three-A initiatives and growth in Kyndryl Consult are fueling our progress, and we continued to sign contracts with attractive margins," said Kyndryl Chief Financial Officer David Wyshner.

Recent Developments

• Alliances initiative – In the first nine months of its fiscal year, Kyndryl recognized more than $300 million in revenue tied to cloud hyperscaler alliances. This surpasses the Company's fiscal year 2024 hyperscaler revenue target of $300 million, and the Company is therefore raising its full-year goal to $400 million.
• Advanced Delivery initiative – To date, Kyndryl has redeployed more than 8,500 delivery professionals to serve new revenue streams and backfill attrition. This has generated annualized savings of approximately $500 million as of quarter-end. Automation and the Kyndryl Bridge platform, powered by AI, are driving this progress, and the Company is well on track to achieve its fiscal 2024 year-end objective for annualized savings of $550 million.
• Accounts initiative – Kyndryl continued to address elements of contracts with substandard margins, bringing the total impact from this initiative to $475 million of annualized benefits. The Company is well on track to achieve its fiscal 2024 year-end goal for annualized savings of $500 million.
• Strong projected margin on recent signings – In the quarter, projected pretax margins associated with total signings were again in the high-single-digit range, which aligns with levels achieved throughout fiscal 2023 and reflects the Company's focus on margin expansion.
• Double-digit growth in Kyndryl Consult – In the quarter, Kyndryl Consult revenues grew 12% year-over-year and 11% in constant currency and were 15% of total revenue.

Raising Fiscal Year 2024 Outlook

Kyndryl is raising its fiscal 2024 outlook for adjusted pretax income to at least $150 million and raising its fiscal 2024 outlook for adjusted EBITDA margin to at least 14.5%. The Company also continues to expect its constant-currency revenue growth to be (6%) to (7%) and for its fiscal 2024 adjusted free cash flow to be positive.

Earnings Webcast

Kyndryl's earnings call for the third fiscal quarter is scheduled to begin at 8:30 a.m. ET on February 7, 2024.  The live webcast can be accessed by visiting investors.kyndryl.com on Kyndryl's investor relations website.  A slide presentation will be made available on Kyndryl's investor relations website before the call on February 7, 2024.  Following the event, a replay will be available via webcast for twelve months at investors.kyndryl.com.

About Kyndryl

Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider, serving thousands of enterprise customers in more than 60 countries.  The Company designs, builds, manages and modernizes the complex, mission-critical information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Forward-Looking and Cautionary Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical fact included in this press release, including statements concerning the Company's plans, objectives, goals, beliefs, business strategies, future events, business condition, results of operations, financial position, business outlook and business trends and other non-historical statements, including without limitation the information presented in the "Outlook" section of this press release, are forward-looking statements.  Such forward-looking statements often contain words such as "will," "anticipate," "predict," "project," "plan," "forecast," "future," "estimate," "expect," "intend," "target," "may," "should," "would," "could," "outlook," "goal," "objective," "seek," "aim," "believe" and other similar words or expressions or the negative thereof or other variations thereon.  Forward-looking statements are based on the Company's current assumptions and beliefs regarding future business and financial performance.

The Company's actual business, financial condition or results of operations may differ materially from those suggested by forward-looking statements as a result of risks and uncertainties which include, among others: risks related to the Company's spin-off from IBM; failure to attract new customers, retain existing customers or sell additional services to customers; technological developments and the Company's response to such developments; failure to meet growth and productivity objectives; competition; impacts of relationships with critical suppliers and partners; inability to attract, retain and/or manage key personnel and other skilled employees; the impact of local legal, economic, political, health and other conditions; a downturn in economic environment and customer spending budgets; damage to the Company's reputation; inability to accurately estimate the cost of services and the timeline for completion of contracts; its implementation of a new enterprise resource planning system and other systems and processes; service delivery issues; the Company's ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities, and higher debt levels; the impact of our business with government customers; failure of the Company's intellectual property rights to prevent competitive offerings and the failure of the Company to obtain necessary licenses; the impairment of our goodwill or long-lived assets; risks relating to cybersecurity and data privacy; risks relating to non-compliance with legal and regulatory requirements; adverse effects from tax matters and environmental matters; legal proceedings and investigatory risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; the Company's pension plans; the impact of currency fluctuations; and risks related to the Company's common stock and the securities market.

Additional risks and uncertainties include, among others, those risks and uncertainties described in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023, and may be further updated from time to time in the Company's subsequent filings with the Securities and Exchange Commission.  Any forward-looking statement in this press release speaks only as of the date on which it is made.  Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

In this release, certain amounts may not add due to the use of rounded numbers; percentages presented are calculated based on the underlying amounts. 

Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding its results, the Company has provided certain metrics that are not calculated based on generally accepted accounting principles (GAAP), such as constant-currency results, adjusted EBITDA, adjusted pretax income, adjusted net income, adjusted EPS, adjusted EBITDA margin, adjusted pretax margin, adjusted net margin and adjusted free cash flow.  Such non-GAAP metrics are intended to supplement GAAP metrics, but not to replace them.  The Company's non-GAAP metrics may not be comparable to similarly titled metrics used by other companies.  Definitions of non-GAAP metrics and reconciliations of non-GAAP metrics for historical periods to GAAP metrics are included in the tables in this release.

A reconciliation of forward-looking non-GAAP financial information is not included in this release because the Company is unable to predict with reasonable certainty some individual components of such reconciliation without unreasonable effort.  These items are uncertain, depend on various factors and could have a material impact on future results computed in accordance with GAAP. 

Investor Contact:
Lori Chaitman
lori.chaitman@kyndryl.com

Media Contact:
Ed Barbini
edward.barbini@kyndryl.com

Table 1 KYNDRYL HOLDINGS, INC. CONSOLIDATED INCOME STATEMENT (in millions, except per share amounts)
		Three Months Ended						Nine Months Ended
		December 31,						December 31,
		2023			2022			2023			2022
Revenues		$	3,936		$	4,303		$	12,202		$	12,771
Cost of services		$	3,184		$	3,596		$	10,055		$	10,886
Selling, general and administrative expenses			705			731			2,059			2,131
Workforce rebalancing charges			19			10			115			16
Transaction-related costs (benefits)			(77)			48			12			218
Interest expense			31			27			92			65
Other expense			21			30			34			16
Total costs and expenses		$	3,883		$	4,441		$	12,367		$	13,333
Income (loss) before income taxes		$	53		$	(138)		$	(165)		$	(563) Werbung Mehr Nachrichten zur Kyndryl Holdings Inc. Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 12:07 - PR Newswire Fidelity China Special Situations Plc - Transaction in Own Shares 11:32 - PR Newswire Invesco Select Trust Plc - Cancellation of Treasury Shares 02:00 - PR Newswire Moonpig Group Plc - Notice of Results Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59