Kyndryl Holdings, the world’s largest IT infrastructure services provider, has reported 4 percent drop in revenues to $4.3 billion for the fourth quarter ended March 31, 2023.
“This year, we will accelerate our transformation, double down on our three-A’s strategy, grow Kyndryl Consult, provide exceptional service to our customers, expand our margins and create more value for shareholders,” said Martin Schroeter, Chairman and Chief Executive Officer of Kyndryl, in its earnings report.
Kyndryl has reported a pretax loss of $288 million and a net loss of $737 million, or $(3.24) per diluted share, in the quarter, compared to a net loss of $229 million in the prior-year period.
Kyndryl has reported 7 percent decrease in revenues to $17 billion for the fiscal year ended March 31, 2023.
Kyndryl has reported a pretax loss of $851 million in fiscal year 2023, which included transaction-related costs, workforce rebalancing charges and lease-exit costs.
Kyndryl had a net loss of $1.4 billion and net margin of (8.1 percent) for the fiscal year, compared to a net loss of $2 billion.
“Our progress in fiscal year 2023 demonstrated that we’re executing a powerful strategy to move our business forward,” said Kyndryl Chief Financial Officer David Wyshner. “In fiscal 2024, we’re driving margin expansion through our three-A initiatives as we accelerate our transformation.”
Kyndryl has signed contracts tied to cloud hyperscaler alliances with an aggregate value of $1.2 billion in fiscal year 2023, exceeding its $1 billion target for the year. Kyndryl expanded its cloud-related capabilities, with 35,000 hyperscaler certifications among its employees at the end of the fiscal year, a 100 percent increase.
Kyndryl has redeployed more than 5,500 delivery professionals to serve new revenue streams and backfill attrition. This will generate annualized savings of $275 million, exceeding the company’s $200 million fiscal 2023 year-end objective.
Kyndryl is expecting 6-8 percent drop in revenue to of $16 billion to $16.4 billion for its fiscal year 2024, which runs from April 2023 to March 2024, compared to revenue of $17 billion in fiscal 2023, with most of the decline due to accelerated actions by Kyndryl to reduce certain low-margin revenue streams.
Kyndryl expects to return to positive revenue growth in calendar year 2025.