Company: KD
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001558370-25-000688
Chunk: 12

Company: Kyndryl Holdings, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2024

Overview

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​​​​​​​​​​​​​​​​​​​Three Months Ended December 31, ​Nine Months Ended December 31, (Dollars in millions)  ​2024​2023  ​2024​2023Revenue​$3,744​​$3,936​​$11,257​​$12,202​Revenue growth (GAAP)​​(5)%​​(9)%​​(8)%​​(4)%Revenue growth in constant currency(1)​​(3)% ​​(10)%​​(6)% ​​(5)%Net income (loss)​$ 215​​$ (12)​​$ 183​​$ (295)​Adjusted EBITDA(1)​$ 704​​$615​​$ 1,818​​$1,801​

(1)   Revenue growth in constant currency and adjusted EBITDA are non-GAAP financial metrics. For definitions of these metrics and a reconciliation of adjusted EBITDA to the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, see “Segment Results.”

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​​​​​​​​​​​​​​​    December 31,​March 31,(Dollars in millions)    2024    2024Assets​$ 9,925​$ 10,590Liabilities​​ 8,721​​ 9,468Equity​​ 1,204​​ 1,122

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Organization of Information

Kyndryl Holdings, Inc. was formed as a wholly-owned subsidiary of IBM in September 2021 to hold the operations of the infrastructure services unit of IBM’s Global Technology Services segment. On November 3, 2021, Kyndryl separated from IBM through a spin-off that was tax-free for U.S. federal tax purposes. Following the Separation, Kyndryl became an independent, publicly-traded company and the world’s leading IT infrastructure services provider. 

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Financial Performance Summary

Macro Dynamics 

In fiscal year 2025, we have seen continuing demand for information technology services, despite concerns about economic growth and geopolitical tensions. Most economists, including the International Monetary Fund, expect positive macroeconomic growth to continue in calendar year 2025. 

Financial Performance