2023-05-16 16:18:40 ET
- Kyndryl Holdings press release ( NYSE: KD ): Q4 GAAP EPS of -$3.24 misses by $2.21 .
- Revenue of $4.26B (-3.8% Y/Y) beats by $110M .
- 2024 Outlook: Revenue growth of (6%) to (8%) in constant currency compared to revenue of $17.0 billion in fiscal 2023, with most of the decline due to accelerated actions by Kyndryl to reduce certain low-margin revenue streams. Based on recent exchange rates, the Company’s outlook implies fiscal 2024 revenue of $16.0 to $16.4 billion. The Company continues to expect to return to positive revenue growth in calendar year 2025.
- Adjusted EBITDA margin of 12% to 13%, an increase of 40 to 140 basis points compared to 11.6% in fiscal 2023.
- Adjusted pretax margin of 0% to (1%), an increase of 30 to 130 basis points compared to (1.3%) in fiscal 2023.
- The Company also expects to deliver continued progress on its three-A initiatives: Revenue related to cloud hyperscaler alliances of more than $300 million.
- Cumulative annualized benefits from Advanced Delivery of approximately $450 million by March 2024.
- Cumulative annualized benefits from its Accounts initiative of approximately $400 million by March 2024.
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Kyndryl Holdings GAAP EPS of -$3.24 misses by $2.21, revenue of $4.26B beats by $110M