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Kyndryl Holdings Inc. (KD-3.20%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a revenue of $3.7 billion for the quarter, marking a 5% decline compared to the same period in the previous year. The decrease is attributed to currency movements and actions to reduce low-margin components of customer relationships, as well as the divestiture of the SIS platform in Canada.
Net income for the quarter was reported at $215 million, an improvement of $227 million from the prior year, driven by a gain from the SIS business sale and operational efficiencies.
For the nine months ended December 31, 2024, Kyndryl reported $11.3 billion in revenue, an 8% decline from the previous year. The decline is attributed to similar factors affecting the quarterly results.
Adjusted EBITDA for the quarter was $704 million, up 15% from the prior year, reflecting improved margins and operational efficiencies.
The report outlines the company's efforts to manage costs through workforce rebalancing and site-rationalization charges, with expected savings exceeding $200 million in fiscal year 2026.
Kyndryl's cash flow from operating activities was $361 million for the nine months ended December 31, 2024, compared to $309 million in the prior year.
The company completed the acquisition of Skytap, Inc. in April 2024 for approximately $46 million, enhancing its hybrid cloud services portfolio.
The company also announced a share repurchase program of up to $300 million, with $30 million spent on repurchases during the quarter.
Kyndryl reported that its total assets decreased to $9.9 billion, while liabilities decreased to $8.7 billion as of December 31, 2024.
The filing highlights the company's continued focus on improving operational efficiency and reducing costs, with ongoing initiatives expected to yield significant savings in the coming years.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Kyndryl Holdings Inc. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.