Q4 2024 Kyndryl Holdings Inc Earnings Call Transcript
Key Points
- Kyndryl Holdings Inc (KD) exceeded full-year targets for fiscal 2024, particularly in their 3A initiatives: alliances, advanced delivery, and accounts.
- The company reported strong growth in Kyndryl Consult, with double-digit revenue growth and triple-digit growth in hyperscaler-related revenue.
- Kyndryl Holdings Inc (KD) is pulling forward the timing of returning to revenue growth, now expecting positive revenue growth in the fourth quarter of this fiscal year.
- The company has successfully expanded its hyperscaler relationships and accelerated the adoption of Kyndryl Bridge, contributing to its growth trajectory.
- Kyndryl Holdings Inc (KD) generated positive adjusted free cash flow, demonstrating a focus on cash generation to support long-term strategies and goals.
- Despite overall growth, revenue in the fourth quarter totaled $3.8 billion, marking a 9% decline in constant currency, primarily due to intentional exits from negative, no, and low-margin revenue streams.
- The company anticipates a revenue decline of 2% to 4% in constant currency for fiscal 2025, with expectations of returning to year-over-year revenue growth only in the fourth quarter.
- Kyndryl Holdings Inc (KD) faces ongoing challenges in transitioning from transformation to growth, with significant efforts required to shift revenue mix towards higher-margin post-spin signings.
- The company expects to incur workforce rebalancing charges of roughly $100 million in fiscal 2025, indicating ongoing cost management and restructuring efforts.
- While Kyndryl Holdings Inc (KD) is expanding its consultative services, the broader consulting industry environment remains under pressure, posing potential challenges in maintaining growth momentum.
Good morning, ladies and gentlemen, and thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Kyndryl Fiscal Fourth Quarter 2024 Earnings Conference Call. (Operator Instructions)
And I would now like to turn the conference over to Lori Chaitman, Global Head of Investor Relations. You may begin.
Good morning, everyone, and welcome to Kyndryl's Earnings Call for the fourth quarter and fiscal year ended March 31, 2024. Before we begin, I'd like to remind you that our remarks today will include forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These forward-looking statements speak only to our expectations as of today, and we are under no obligation to update them. For more details on some of these risks, please see the Risk Factors section of our annual report on Form 10-K for the year ended March
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
