Global IT infrastructure services giant, Kyndryl Holdings, has announced its financial results for the first quarter of the 2024 fiscal year, ending on June 30, 2023. Despite a year-over-year decline of 2 percent, the company reported revenues of $4.2 billion, showcasing its ability to navigate through challenging market conditions.
Breaking down the revenue figures, Kyndryl has generated $1,164 million (nil growth) from the United States, $610 million (down 4 percent) from Japan, $1,484 million (down 2 percent) from Principal Markets, and $935 million (down 4 percent) from Strategic Markets. The company’s performance in the United States remained relatively steady, while some international markets experienced minor setbacks.
Kyndryl’s Chairman and Chief Executive Officer, Martin Schroeter, expressed confidence in the company’s future prospects, stating, “We expect to generate adjusted pretax profit this fiscal year and going forward. This return to profit, driven by our strong execution, positions us well to deliver the significant margin expansion we’ve targeted.”
Despite the revenue dip, Kyndryl’s financial health has shown signs of improvement. The company reported a pretax loss of $109 million and a net loss of $141 million, or ($0.62) per diluted share, for the quarter. These figures are notably better than the prior-year period, which recorded a net loss of $250 million, or ($1.11) per diluted share.
In a bid to strengthen its profitability and operational efficiency, Kyndryl has raised its fiscal 2024 adjusted EBITDA margin outlook to approximately 14 percent, up from its previous projection of 12 percent to 13 percent. Furthermore, the company now expects its fiscal 2024 adjusted pretax income to be at least $100 million, signaling its commitment to achieving positive financial growth.
Kyndryl remains optimistic about its constant-currency revenue outlook and is on track to meet its fiscal 2024 targets for the benefits from its three-A initiatives. The company also anticipates positive adjusted free cash flow for the fiscal year, underscoring its efforts to maintain financial stability and sustainable growth.
With its resilient performance and strategic initiatives, Kyndryl Holdings is poised to navigate the ever-evolving IT landscape and position itself as a leading player in the global IT infrastructure services market. As the company continues to execute its growth strategy, shareholders and stakeholders can look forward to positive developments in the quarters ahead.
