Kyndryl Sees $3.74B in Revenues, 5% YoY Decline

By Bobby Samwell • Tuesday, February 04 06:08 • Permanent Link

Kyndryl Holdings, Inc. has released its financial results for the quarter ended December 31, 2024, reporting total revenues of $3.74 billion. This represents a year-over-year decline of 5% and 3% in constant currency. The company reported pretax income of $258 million and net income of $215 million, a significant improvement compared to the prior-year period, which saw a net loss of $12 million.

Adjusted EBITDA for the quarter was $704 million, reflecting a 14% year-over-year increase. Adjusted pretax income saw a substantial 154% increase to $160 million from $63 million in the prior-year period. Adjusted net income was reported at $124 million, a notable improvement from a net loss in the prior-year period.

Kyndryl also reported a 10% year-over-year increase in total signings for the quarter, amounting to $4.1 billion. For the twelve months ended December 31, 2024, total signings reached $16.3 billion, marking a significant year-over-year increase of 31%.

Furthermore, the company delivered a strong performance in its consult division, with revenues growing by 26% year-over-year. Consult signings also exhibited robust growth, increasing by 35% year-over-year in the third quarter and by 45% over the last twelve months.

In terms of the company's initiatives, Kyndryl recognized $300 million in revenue tied to cloud hyperscaler alliances in the third quarter, positioning itself to exceed its hyperscaler revenue target of nearly $1 billion in fiscal year 2025. The AI-enabled Kyndryl Bridge operating platform has also contributed to enhancing the company's technology services, resulting in annualized savings of approximately $725 million as of quarter-end.

Kyndryl has raised its earnings and cash flow outlook for fiscal year 2025, expecting adjusted pretax income of at least $475 million, an adjusted EBITDA margin of at least 16.7%, and adjusted free cash flow of approximately $350 million.

The company's earnings call for the third fiscal quarter is scheduled to begin at 8:30 a.m. ET on February 4, 2025, and a webcast of the event will be available on Kyndryl’s investor relations website.

Kyndryl Holdings, Inc. is the world's largest IT infrastructure services provider, operating in more than 60 countries and serving thousands of enterprise customers. Following these announcements, the company's shares moved 0.0%, and are now trading at a price of $37.96. For more information, read the company's full 8-K submission here.

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