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Jun 30, 2022
Kyndryl Q1 2023 Earnings Report
Kyndryl's first quarter of fiscal year 2023 resulted in revenue of $4.3 billion and a net loss of $250 million.
Key Takeaways
Kyndryl reported revenues of $4.3 billion for the quarter ended June 30, 2022, a year-over-year decline of 10%. The company's net loss was $250 million, or $1.11 per diluted share. The company is focused on delivering its fiscal year 2023 financial objectives.
Kyndryl reported revenues of $4.3 billion, a year-over-year decline of 10%, or 3% in constant currency.
The Company reported a net loss of $250 million, or $1.11 per diluted share, in the quarter.
Kyndryl signed contracts tied to cloud hyperscaler alliances with an aggregate value of $235 million.
Kyndryl continued to address accounts with substandard margins, bringing the total impact from this initiative to $52 million of annualized benefits.
Revenue by Geographic Location
Forward Guidance
Kyndryl is reaffirming its fiscal year 2023 outlook, updating revenue forecast for currency effects. Revenue of $16.3 to $16.5 billion, which includes an approximately $1.2 billion or seven-percentage-point negative currency impact. Adjusted EBITDA margin of 13% to 14%. Adjusted pretax margin of 0% to 1%.
Positive Outlook
- Double-digit constant-currency signings growth compared to pro forma signings in calendar year 2021, consistent with the outlook the Company published in May
- Revenue of $16.3 to $16.5 billion, which includes an approximately $1.2 billion or seven-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, which is consistent with the outlook the Company published in May
- Adjusted EBITDA margin of 13% to 14%, consistent with the outlook the Company published in May
- Adjusted pretax margin of 0% to 1%, consistent with calendar year 2021 pro forma results and with the outlook the Company published in May
Challenges Ahead
- Currency movements are negatively impacting fiscal 2023 revenue by approximately $1.2 billion
- Currency movements are negatively impacting adjusted EBITDA by approximately $300 million or 80 basis points
Historical Earnings Impact
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Avg. Return Before/After Earnings
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