NYSE$KD
Kyndryl Holdings Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Kyndryl's first quarter of fiscal year 2023 resulted in revenue of $4.3 billion and a net loss of $250 million.
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.
Headline financials
Revenue & EPS history
Kyndryl · Revenue · Quarterly
$4.29B
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%.
Tailwinds
- 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
Headwinds
- 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
- Currency movements are negatively impacting adjusted pretax income by approximately $200 million or 120 basis points compared to calendar year 2021
- Forecasted adjusted EBITDA also reflects a 60-basis-point negative impact from certain software being expensed rather than capitalized and amortized.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2023
+0.8%
Avg return
Earnings day
+1.5%
Avg return
5 days after
+4.7%
Avg return
30 days after
55%
12 / 22 earnings
Positive
+27.1%
Q4 2024
Best reaction
-54.9%
Q3 2026
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | -3.8% | -12.5% | -11.5% | |
| Q3 2026 | -54.9% | -47.9% | -46.1% | |
| Q2 2026 | -4.7% | -5.0% | -4.5% | |
| Q4 2025 | +10.5% | +24.2% | +21.8% | |
| Q3 2025 | +5.2% | +10.1% | -6.6% | |
| Q2 2025 | +19.8% | +22.1% | +50.1% | |
| Q1 2025 | -12.2% | -14.4% | -11.4% | |
| Q4 2024 | +27.1% | +30.5% | +26.9% | |
| Q3 2024 | +1.6% | +7.8% | +5.9% | |
| Q2 2024 | +15.1% | +15.1% | +19.3% | |
| Q1 2024 | +16.0% | +27.0% | +32.1% | |
| Q4 2023 | -13.6% | -19.6% | -8.4% | |
| Q3 2023 | +24.8% | +23.5% | +14.9% | |
| Q1 2021 | +7.0% | +6.2% | +38.8% | |
| Q2 2023 | -15.1% | -9.1% | +17.9% | |
| Q2 2021 | -0.6% | -1.4% | -8.7% | |
| Q1 2023 | +4.5% | +12.4% | +4.6% | |
| Q4 2019 | +1.4% | -0.9% | -18.6% | |
| Q1 2022 | +15.2% | +12.1% | +0.5% | |
| Q4 2021 | -14.7% | -24.9% | -16.9% | |
| Q4 2020 | -5.5% | -10.9% | +1.7% | |
| Q3 2021 | -5.5% | -10.9% | +1.7% |
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