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Mar 31, 2024
IBM Q1 2024 Earnings Report
Announced first-quarter 2024 earnings with accelerated Software revenue growth, strong gross margin expansion, and cash generation. Also, announced strategic acquisition of HashiCorp, Inc.
Key Takeaways
IBM's first-quarter results showed solid revenue and free cash flow growth, driven by its hybrid cloud and AI strategy. The company's book of business for watsonx and generative AI has surpassed $1 billion since its launch in mid-2023. IBM also announced its intent to acquire HashiCorp to strengthen its position in the hybrid cloud and AI landscape.
Revenue of $14.5 billion, up 1 percent (up 3 percent at constant currency)
Software revenue up 5 percent (up 6 percent at constant currency)
Gross Profit Margin: GAAP: 53.5 percent, up 80 basis points; Operating (Non-GAAP): 54.7 percent, up 100 basis points
Free cash flow of $1.9 billion, up $0.6 billion
IBM
IBM
IBM Revenue by Segment
Revenue by Segment
Software Revenue
CapyFin.comConsulting Revenue
CapyFin.comInfrastructure Revenue
CapyFin.comFinancing Revenue
CapyFin.com Forward Guidance
IBM expects revenue performance in line with its mid-single digit model and about $12 billion in free cash flow for the full year.
Positive Outlook
- Company continues to expect constant currency revenue growth consistent with its mid-single digit model.
- Company continues to expect about $12 billion in free cash flow
Challenges Ahead
- Currency is expected to be about a one-and-a-half to two-point headwind to revenue growth
Revenue & Expenses
Visualization of income flow from segment revenue to net income