Kyndryl (US:KD) Prnewswireยท2024-07-31 20:15Core Viewpoint - Kyndryl Holdings, Inc. reported financial results for the first quarter of fiscal year 2025, showing a decline in revenues but significant improvements in adjusted income metrics and continued growth in Kyndryl Consult services. Financial Performance - Revenues for the quarter ended June 30, 2024, totaled $3.74 billion, reflecting an 11% year-over-year decline and an 8% decline in constant currency [3][10] - The company reported pretax income of $64 million and net income of $11 million, compared to a net loss of $141 million in the prior-year period [3][22] - Adjusted EBITDA was $556 million, with adjusted pretax income increasing by 96% to $92 million compared to $47 million in the prior-year period [4][5] Growth Initiatives - Kyndryl Consult experienced double-digit revenue growth of 10% year-over-year and 14% in constant currency, with signings growing 49% year-over-year in constant currency [6][7] - The company recognized $210 million in revenue tied to cloud hyperscaler alliances, progressing towards a target of nearly $1 billion in fiscal year 2025 [7] - The AI-enabled Kyndryl Bridge operating platform is enhancing service delivery and creating additional revenue opportunities, contributing to annualized savings of approximately $650 million [7] Outlook - Kyndryl raised its adjusted earnings outlook for fiscal year 2025, projecting an adjusted EBITDA margin of at least 16.3% and adjusted pretax income of at least $460 million [9][10] - The company reaffirmed its outlook for constant-currency revenue growth of (2%) to (4%), implying fiscal 2025 revenue of $15.2 to $15.5 billion [10][11] Cash Flow and Expenses - Cash flow used in operations was $48 million in the quarter, reflecting a seasonally weak period for cash flow [3][22] - Adjusted free cash flow was reported at ($116) million, influenced by workforce rebalancing actions [5][34]