NYSE$KD

Kyndryl Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Kyndryl's earnings grew due to strong strategic execution and high demand for IT services.

Kyndryl reported revenues of $3.9 billion for the quarter ended December 31, 2023, a 9% year-over-year decline. The company reported a net loss of $12 million, or ($0.05) per diluted share, compared to a net loss of $106 million, or ($0.47) per diluted share, in the prior-year period. Adjusted EBITDA of $615 million increased 6% compared to $580 million in the prior-year period. The company is raising its fiscal 2024 outlook for adjusted pretax income to at least $150 million and raising its fiscal 2024 outlook for adjusted EBITDA margin to at least 14.5%.

  • Revenues for the quarter totaled $3.9 billion with a net loss of $12 million.
  • Adjusted EBITDA increased to $615 million.
  • Adjusted pretax income was $63 million.
  • The full-year adjusted earnings outlook was raised.

Headline financials

Total Revenue

$3.94B

Previous: $4.3B-8.5%
EPS

-$0.05

Previous: -$0.47+89.4%
Capital Expenditures

-$174M

No prior period
Net Income

-$12M

Previous: -$106M+88.7%
Operating Income

$68M

Previous: -$118M+157.6%
Gross Profit

$752M

Previous: $707M+6.4%
Cash & Equivalents

$1.69B

Previous: $2B-15.7%
Total Assets

$11B

Previous: $11.9B-7.4%
Stock-Based Comp

$24M

No prior period

Revenue & EPS history

Kyndryl · Revenue · Quarterly

$3.94B

Q3 2024-8.5%vs Q3 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Kyndryl is raising its fiscal 2024 outlook for adjusted pretax income to at least $150 million and raising its fiscal 2024 outlook for adjusted EBITDA margin to at least 14.5%. The Company also continues to expect its constant-currency revenue growth to be (6%) to (7%) and for its fiscal 2024 adjusted free cash flow to be positive.

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 Q3 2024

Historical avgQ3 2024

+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

Earnings price reactions
QuarterReport dateReaction (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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