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Mar 31, 2022

Kyndryl Q1 2022 Earnings Report

Kyndryl's first full quarter as an independent company, expanded technology ecosystem, invested in people, and delivered progress on Alliances, Advanced Delivery and Accounts initiatives.

Key Takeaways

Kyndryl reported revenues of $4.4 billion for the quarter ended March 31, 2022, a year-over-year decline of 7%. The company reported a net loss of $229 million, or $1.02 per diluted share. Signings totaled $3.1 billion, an increase of 27% in constant currency.

Revenues for the quarter ended March 31, 2022 total $4.4 billion.

Net loss is $229 million, pretax loss is $189 million, and adjusted pretax loss is $51 million.

Delivers early progress on its Alliances, Advanced Delivery and Accounts initiatives.

Issues outlook for the fiscal year beginning April 2022.

Total Revenue
$4.43B
Previous year: $4.77B
-7.1%
EPS
-$1.02
Previous year: -$2.2
-53.6%
Total Signings
$3.1B
Previous year: $2.5B
+24.0%
Gross Profit
$607M
Previous year: $453M
+34.0%
Cash and Equivalents
$2.13B
Previous year: $50M
+4168.0%
Free Cash Flow
$136M
Previous year: -$508M
-126.8%
Total Assets
$13.4B

Kyndryl

Kyndryl

Kyndryl Revenue by Geographic Location

Forward Guidance

Kyndryl is providing the following outlook for its fiscal year beginning April 1, 2022 and ending March 31, 2023:

Positive Outlook

  • Double-digit constant-currency signings growth compared to pro forma signings in calendar year 2021
  • Revenue of $16.5 to $16.7 billion, which includes an approximately $1.0 billion or six-percentage-point negative currency impact. This represents a decline of (4)% to (3)% in constant currency compared to pro forma revenue for the twelve months ended March 31, 2022
  • Adjusted EBITDA margin of 13% to 14%, reflecting currency headwinds and spin-off-related impacts on amortization, as discussed below
  • Adjusted pretax margin of 0% to 1%, consistent with calendar year 2021 pro forma results

Revenue & Expenses

Visualization of income flow from segment revenue to net income