Kyndryl reported revenues of $4.3 billion for the quarter ended December 31, 2022, a year-over-year decline of 6% and a 3% increase in constant currency. The company reported a pretax loss of $138 million and a net loss of $106 million, or $0.47 per diluted share, in the quarter, compared to a net loss of $731 million in the prior-year period. Adjusted EBITDA of $580 million compares to $679 million of pro forma adjusted EBITDA in the prior-year period, primarily driven by unfavorable currency movements of approximately $125 million. In the nine months ended December 31, cash flow from operations was $769 million, and adjusted free cash flow was $407 million.
“We’re encouraged by the stronger sequential margins and significant cash flow we delivered in the quarter. Our three-A initiatives are positively impacting both our current bottom line and the future earnings associated with our signings,” said Kyndryl Chief Financial Officer David Wyshner. “We have the right strategy in place and are executing against it to power future growth and enhanced profitability.”
Kyndryl is raising its revenue outlook for its fiscal year beginning April 1, 2022 and ending March 31, 2023 to reflect higher constant-currency revenue growth and currency effects, and is reaffirming its outlook for adjusted EBITDA and adjusted pretax margins.
