Kyndryl Holdings Inc., a leading provider of IT-infrastructure services, has announced its ambitious targets for the fiscal year. The company aims to achieve an adjusted pretax profit of at least $100 million, highlighting its commitment to delivering impressive financial results.
Enhanced Outlook for Adjusted EBITDA Margin
In its pursuit of higher-margin accounts, Kyndryl has raised its annual outlook for the adjusted EBITDA margin. The company now targets a margin of 14% for the fiscal year, showcasing its determination to maximize profitability. This new target surpasses the previously projected range of 12% to 13%.
Positive Adjusted Free Cash Flow Forecasted for Fiscal Year 2024
Kyndryl is optimistic about its future financial performance as it expects to achieve positive adjusted free cash flow for the fiscal year 2024. This projection reflects the company’s confidence in its ability to generate substantial cash flow. Fiscal year 2024 commenced in early April.
Strategic Focus on Profitable Accounts
Kyndryl’s Chief Executive, Martin Schroeter, emphasized the company’s strategic focus on profitable accounts. To achieve this objective, Kyndryl aims to disengage from low- or no-profit accounts inherited after its spinoff from IBM. By prioritizing higher-margin accounts, Kyndryl aspires to enhance its overall profitability.
Embracing Artificial Intelligence for Improved Operations
As part of its ongoing efforts to improve efficiency, Kyndryl is incorporating artificial intelligence (AI) into its operations. AI automation plays a significant role within the company, with approximately 65 million individual actions automated each month. This embrace of AI technology positions Kyndryl at the forefront of innovation within the industry.
Positive Revenue Growth Expected in Calendar-Year 2025
Kyndryl remains steadfast in its outlook for a return to positive revenue growth in calendar-year 2025. This anticipation of future growth represents an important milestone in the company’s turnaround. The persistently positive outlook reflects Kyndryl’s confidence in its strategies and ability to capture new business opportunities.
In conclusion, Kyndryl Holdings Inc. is poised to deliver impressive financial performance with its steadfast focus on higher-margin accounts, improved operational efficiencies through AI implementation, and a commitment to achieving positive revenue growth in the coming years.
