Kyndryl cuts net losses in Q1 2024

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Kyndryl, the IT infrastructure services company spun off from IBM in 2021, cut its net losses to $141 million in the first quarter of 2024. This represents a significant improvement from the company’s net loss of $250 million in the same quarter last year.

Kyndryl’s revenue declined 2% year over year to $4.2 billion in the first quarter, but its technology consulting practice grew 20% and accounted for 14% of the company’s revenue. While total revenue declined 2% year over year to $4.2 billion, the company’s technology consulting practice boomed, growing 20% and accounting for 14% of the company’s first-quarter revenue, CFO David Wyshner said

“By delivering and accelerating customer business outcomes that are informed by our extensive operational experience, Kyndryl Consult will support our future revenue growth and margin expansion,” said Chairman and CEO Martin Schroeter.

Kyndryl also raised its fiscal year 2024 adjusted EBITDA margin outlook to approximately 14% and its adjusted pretax income outlook to at least $100 million. Schroeter said that Kyndryl is “off to a strong start in our new fiscal year” and that it is “transforming how we operate.” He added that Kyndryl is “signing new business and renewals with meaningfully higher margins than our pre-spin, legacy contracts.”

The sources for this piece include an article in CIODIVE.

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