Kyndryl – Global Tech Services Company

Kyndryl Holdings, Inc. has recently released its 10-K report, revealing its status as a technology services company and IT infrastructure services provider operating worldwide. The company offers a range of services including cloud services, core enterprise and zCloud services, application, data, and artificial intelligence services, digital workplace services, security and resiliency services, and network services and edge services. It serves various industries, including financial, technology, media and telecom, retail and travel, and automotive industries. The company was incorporated in 2020 and is headquartered in New York, New York.

In the 10-K report, the company discussed the management's discussion and analysis of financial condition and results of operations. It noted that in fiscal year 2024, Kyndryl reported $16.1 billion in revenue, a decline of 6 percent compared to the year ended March 31, 2023. The net loss of $340 million improved by $1.0 billion versus the prior-year period driven by progress on key initiatives to drive operating efficiencies, increased margins, and reduced transaction-related costs tied to the company's separation.

For the year ended March 31, 2023, Kyndryl reported $17.0 billion in revenue, a decline of 7 percent when compared to the twelve months ended March 31, 2022, primarily driven by a seven-point negative impact from currency. The net loss of $1.4 billion improved by $665 million versus the prior twelve-month period, primarily driven by lower impairment expense, lower transaction-related costs, and lower cost of services as a percentage of revenue, reflecting progress on key initiatives.

The company's financial results are presented in accordance with U.S. GAAP, and it also presents certain non-GAAP financial measures to provide useful supplemental information to investors. These measures include revenue growth in constant currency and adjusted EBITDA, which are used to evaluate the company's performance.

Kyndryl's report also provides a reconciliation of U.S. GAAP net income (loss) to adjusted EBITDA, showing the various components that contribute to the adjusted EBITDA figure. The report includes detailed financial performance summaries for the United States, Japan, and Principal Markets, providing revenue and adjusted EBITDA figures for each segment.

Following these announcements, the company's shares moved 0.0%, and are now trading at a price of $26.65. For more information, read the company's full 10-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.