NYSE$KD
Kyndryl Holdings Inc · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Kyndryl's financial performance was solid in Q4 2023, with the company leveraging alliances and driving efficiency through advanced delivery, positioning the business for margin expansion.
Kyndryl reported Q4 2023 revenues of $4.3 billion and a net loss of $737 million, while adjusted EBITDA stood at $476 million and adjusted pretax loss was $61 million. The company exceeded first-year targets for Alliances, Advanced Delivery and Accounts initiatives. They also provided outlook for fiscal year 2024, reflecting continuing progress on the ‘three-A initiatives’
- Revenues for the quarter totaled $4.3 billion, reflecting a year-over-year decline of 4% but a 1% increase in constant currency.
- The company reported a net loss of $737 million, or $(3.24) per diluted share, compared to a net loss of $229 million in the prior-year period.
- Adjusted pretax loss was $61 million, compared to adjusted pretax loss of $51 million in the prior-year period.
- Adjusted EBITDA was $476 million, compared to $536 million in the prior-year period, impacted by unfavorable currency movements and software cost increases.
Headline financials
Revenue & EPS history
Kyndryl · Revenue · Quarterly
$4.26B
Forward guidance
Kyndryl is providing the following outlook for its fiscal year 2024, which runs from April 2023 to March 2024:
Tailwinds
- Revenue related to cloud hyperscaler alliances of more than $300 million.
- Revenue growth of (6%) to (8%) in constant currency compared to revenue of $17.0 billion in fiscal 2023, with most of the decline due to accelerated actions by Kyndryl to reduce certain low-margin revenue streams.
- Based on recent exchange rates, the Company’s outlook implies fiscal 2024 revenue of $16.0 to $16.4 billion.
- Adjusted EBITDA margin of 12% to 13%, an increase of 40 to 140 basis points compared to 11.6% in fiscal 2023.
- Adjusted pretax margin of 0% to (1%), an increase of 30 to 130 basis points compared to (1.3%) in fiscal 2023.
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 Q4 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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