Kyndryl (KD) 7 Nov 242025 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Kyndryl's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Lori Chaitman, Head of Investor Relations. Please go ahead.

welcome September earnings XX, and second for everyone, ended quarter XX. morning, to call Kyndryl's the Good

Before we statements expectations to begin, actual or our risk remarks implied. I'd that as results like to will factors statements from forward-looking of remind to include These differ today. statements. those cause forward-looking our These may are materially to today subject our you expressed that only speak

annual on some XXXX. Factors of these on see the please for Risk our XX, details risks, section the year of more report March XX-K Form For ended

today's certain a Corresponding our website In which remarks, to periods financial we'll non-GAAP presentation investor.kyndryl.com. of at in to also GAAP and events, non-GAAP materials metrics provided available for today's historical refer are are GAAP on metrics metrics metrics. reconciliation the for

here me Chief Kyndryl's Officer, With Executive Chief Kyndryl's and Schroeter; are Officer, and Martin David Wyshner. Financial Chairman

Q&A turn Martin? Following hold remarks, now a will Martin. to I'd over to our we call session. like prepared the

have delivered $XX to to Thank execution our On to XX% XXXX to and growth on will which and results you, progress needs and Lori, and financial complex large our continued technology recent review over update our strategy. quarter months earnings each another outlook. of the call, and our XX I'll billion. today's then and for for flow It grown fiscal our quarter you was signings, post-spin for customers' us. We generation. strong last meet cash drive margins signings, a record joining you David thanks

will signings discuss, power will our more encouraging X even more the as largest pretax to will high single revenue of that what's our revenue be strength David digits. margins scope the signing the of the than quarter, signed a $X return on million projected continue next in our And is generate sustained $XXX as billion growth. that company to our independent deals in Clearly, XX We expansion an years. deal more than over including

track the significant In flow substantially year. up on this to deliver earnings we remain pretax adjusted cash quarter, were year-over-year and

Our in and related open as and revenue double-digit growth innovation performance continue drive our Kyndryl efficiency consult through momentum was well once again Bridge, our automation integration platform. and led ability in to strong deliver by to hyperscaler as Control AI-enabled

In new investments have significant mission-critical additional and addition, been alliances, benefits our XAs accounts capabilities we customers delivery the scope. and advanced opportunities and we've advantage to initiatives, select our across and competitive disruptions quarter. made the win differentiated of leveraging continued to to landscape, the There multiple are generate in incremental take

others to have a Having invested position opportunities. continue great when pulled these on in back, we're capitalize to

There's fourth consecutive increase of quarter. progress base. markets second financial grow As estates signage IT It's head fourth half that and expertise to line differentiates on share and to growth why a of us the focus running our transforming in our serve, quarter enabling growth. and wallet we customer in top us delivering of our we're this in reason both into we our the driving on we'll continue the to returning substantial year,

of Kyndryl positioned secular risks cybersecurity heard skill you've the migration address increasingly is nexus of IT As and the management secular before, adoption cloud these technology shortages, trends. IT me positioned uniquely artificial and say environments, is hybrid Kyndryl to intelligence. strategically at trends, Consult

consult in XX%, growing revenue Our the up our XX% digits. and And double respectively. this signings quarter, consult were revenue has been consistently and

but managed associated accompanies many growth. stream central the significant because now a stream This modernization margins assignments. so that with Consult also for the services us for because of of strategy, and continued valuable revenue runway to is our ongoing is plus revenue IT not billion directly $X.X it, with work only

managed and significant [ delivered both consult services. year, the Over we've ] in last signees growth

Kyndryl decades of on teams customers' Our our domain experience have knowledge systems. with deep mission-critical Consult

into and And X paired to data IP with Bridge data more architecture, readiness resiliency enables help value governance. technical examples efficiency, turn experience, with us assignments on and security, and the winning AI we're that. Kyndryl value. data readiness, bigger with that engaging foundations and The modernization, their CIOs business we're in are CTOs customers This more and to AI of

future other confidence Another key success our and top-tier hyperscalers and X technology driver deep relationships is our leaders. of major our in growth the with trajectory

revenue our are hyperscaler With and and expect skills Over the optimizing cloud the we to multiple them last on this related right modernization that hyperscalers is fiscal related reach than helping we've right revenue platform. workload provide and to more customers' $X and year, mainframe IT the migrating, from in we hyperscaler we're the our year. doubled ensure services securing managing, alliances, our platforms environments across that billion

co-marketing Our is solutions and pressing joint higher we're that and which all know-how the training, extensive our partners' providing our Together, to bring growth leverage both fueled customers' customers activities, focused on with by incremental value market address solutions most our that of needs. capabilities. enablement alliance

same and Because across expanding action to can are where service the we the and scope the of to one the core or of services existing logos delivery bear alliances, we company, the involving have migration frequently of more platforms our modernization we more Bridge multiple as mainframe customers we're cloud at include add freedom bring now Kyndryl services. we skills to provide hyperscalers. also time, new to is an our independent of At beginning

global how report. those in month, them business and and prepare we on factors capitalize or enable helps business Readiness progress. for hinder the and This big what IT see Kyndryl last IT risks report Separately, and opportunities analyzes leaders inaugural specific their opportunities the challenges landscape, as what published today's picture

helping technology goal uncover value assesses Bridge with of current future the the readiness excited data, markets. IT for really report the new By leaders about readiness of survey operational the am senior companies I compares in of reality over investments. because data from past, X,XXX data it proprietary the combining Kyndryl our with report survey combines and perception operational versus and data with XX

Among end XX% ready XX% believe their than the CEOs such believe systems that world-class, survey Cybersecurity challenges closely our readiness policy X/X are technologies, get and is risk for concern of than skills coming and their followed life. AI. fewer emerging or more storage, XX% has requirements servers, are outdated are modernization key IT potential the at and way. risks of they is and components for concerned by #X including their and carrying findings, is leaders networks of vulnerabilities, regulatory mission-critical regarding gaps approaching infrastructure their of operating as

business is tech why are priority and factors leaders. These modernization a IT for top

indicated modernization. of in the early still stages XX% than participants they of more are However,

For And approach more enterprises the role overcome and future, is ready on to leaders make place prioritization paralysis. their to Kyndryl journey that progress as to differentiated the trusted precisely modernization. their that modernization a pragmatic partner their a need organizations providing for

mission-critical with providers expertise and building we hyperscalers observability our managing top-tier valuable pace in and unmatched other unprecedented offer designing, and to transformations. customers' Kyndryl accelerate We the technology we from of workloads, insights provide and collaborate Bridge IT

highlighted our for signings our growth. customers spin. backlog we've fueling post-spin where increased our profile. our point our by This we're in profitability margins top P&L higher revenue services on our fiscal higher value half fiscal largely post-spin focusing dramatically will As growth line mix than earnings driving of and is roughly year, will coming determined X/X. This it XXXX, future before, is business from And is be and at our have strengthen that when signings inflection evolving

least Our adjusted at a million. $XXX fiscal pretax least year-over-year reflecting increase $XXX of forecast XXXX million, is for for at income of

actions As David will by the single-digit track we're explain our taking well the grow keep in margins other detail, at which profitability more to we're deliver high and fiscal contracts us to pretax margins XXXX. signing adjusted on

that math adjusted with pretax cash of or $X a is income our ultimately earnings the yes, billion more associated flow. with strong into conversion And of

position of us from Kyndryl's growth. for confidence well set Our unique sustainable stems that attributes

us to a throughout want IT increasingly hybrid tech number of practices mission-critical to have estates including Our reasons, and customers manage debt. we expertise complex knowledge domain for with global X address and our work

providers states our be the compliance accelerate they customers for how expanded our secure, and they and know to data pace customers' Because invested know-how to Consult responsibly we've established mainframe advisory our have and hyperscalers regulatory top-tier Kyndryl migration. optimized, and the can of adopt leverage modernization technology securely make we've to our in with and talent, cloud to teams Because other resilient so and architect AI. IT to relationships

making our customers' critical multi-vendor investments finally, business that in solutions because strategies opportunities. to ongoing observability, Kyndryl delivering we And allow them In and insights optimized to with are unprecedented align we're needs customers short, valuable major goals. that's that address and and actionable sophisticated, business enabling outcomes Bridge,

we've as powerfully IT managed delivering ever. automation differently result, Through than services said, up and a market. more Kyndryl we're in And efficiently we're Bridge, as and and services the showing AI

want drive New growth York to we'll XX. key event and into you and in our be expansion. all of next that on hosting Investor remind webcast in-person will Day our Relations our strategy our be available November that website live This an post-spin will on we where delve I and deeper Lastly, Investor first chapter priorities will margin

second I corporate notable our report. essential recently It services, provider want as role managing progress also to citizenship our describes our that organization, a published a a focus I highlight we team governance. on as I'm progress to our of multinational you encourage and our to review the on environmental website. culture and corporate our way of Kyndryl our and impacts, principled made, approach Central proud the it we've very

our that, David our you will and through outlook. take results Now with

strong on we're for I'd and signing revenue decline that is second Thanks, totaled fiscal quarter, Martin, our and you'll continued billion, powerful constant progress theme at initiatives, XA customer the currency. hello, XXXX. X% margins $X.X everyone. to our our year solid a up quarter the strategy. discuss contracts which on like second our outlook Today, results, our in In pick The execution

by year-over-year margin last than The streams prior by and intentional stronger negative customer ongoing sequentially not trend and decline our reported also within It's primarily we exit anticipated from quarter. no one driven low quarters primarily macro year-over-year factors. the point relationships revenue was in

independent history of signings the grew We strongest also company. XXX% reported quarter as in Total signings year-over-year. our an

delivered of in Our we made reported across of which consecutive XX-month fourth of and reported signings growth our all of growth signings more trailing our brings signings to each growth geographic signings X our which growth quarter growth, signings quarter X in practices, segments, each of the our or We $X.X QX strength the XX% billion of XX%. across quarter. saw and

grew continue space. highlighted, revenues services. advisory faster, how we our share to in value-add XX%. underscores Martin in Kyndryl Consult higher even gain Kyndryl momentum higher-margin signings grew Consult XX% year-over-year, up this which As growing we're

Consult strong XX growth the Over we've with last in months, signings Kyndryl seen XX% year-over-year. up

in also services. we're growth managed delivering importantly, And

increased have in signings the XX last services managed Our XX% months.

grew income Our second was to and our EBITDA million $XX $XXX EBITDA pretax million. margin adjusted was Adjusted XX% adjusted quarter XX.X%.

continues progress to driving our financial execution, calorie operations our Our strategic our and positioning throughout stepping Kyndryl accounts needs. fixing technology away meet the consult alliances, empty portion growing from revenues, leveraging business, to reflect IT future focused customers' our of efficiency

rebalancing of had a increase million Included $XX committed operated million million $XX from in net headwinds. income benefit our impact in IBM from $XX movements and million adjusted as was changes. Mitigating depreciation charges, a $XX this, that million the contractually $XX currency costs all also in pretax workforce software we

adjusted these Excluding reflects of $XXX in on year-over-year initiatives. our delivered our pretax progress XAs execution we and increase income, items, which a million

our revenue million Through costs in operations, related levels. we this already into track delivery revenue incorporate strong by fiscal quarter. throughout powered service more of XXXX drive offerings us the double alliances, Bridge, deliver in our delivery billion $X automation increase our related $XXX on our second we generated year our to puts hyperscaler technology This Through our to and total. Kyndryl our reduce hyperscaler continue initiative advanced

we've attrition. past to backfill win-win this opportunities cumulative delivery annual for million It's a worth This a revenue date, more To our run been than professionals us, a address customers. a to is representing Kyndryl increase rate up $XXX free million new quarter. and XX,XXX $XX able to year our and in

to substandard elements remediate we contracts initiative accounts continues with inherited of Our margins.

revenue, prior focus our Kyndryl important increased source to second expansion and Clearly, remain for cumulative from particularly Consistent about an and future quarter, of what quarters, I've $XXX we the million in the with continue us. for enthusiastic XAs position growth. profit I'm to annualized by how $XX margin In value accounts creation we margin shared the profit million.

now we've significant this towards and digits. past XXXX, Throughout grew attractive our of to increasingly reported margin continued XXXX on signed in margins high shifts with you'll expansion projected results. substantially and margins the in our pretax the we mid-XXs signing margins first contracts, very Therefore, command contracts in mix see post-spin more business quarter, half as signings. As single the our we projected fiscal through gross fiscal

we've and projected chart gross gross capturing over profit XX% added business. accentuates margin backlog. We've last $XX we've again our value been how included of gross of projected in signings an that XX of our profit book-to-bill months, billion a billion our over to average the With creating $X on

the our P&L. Having months we've has our more gross profit the what means gross Over backlog $X contracts. reported in above contracted period how ratio same book producing a we're of from profit is X been the adding committed measure growing of over This XX matters X.X of our a we've significantly book-to-bill been gross than key of profit time, expected business profit at most, to latest future billion.

consistently been over gross having X-plus years. growing been X, And with means last we've consistently the book-to-bill above our ratio that backlog our that profit gross profit

and our to cash Turning flow balance sheet.

cash in the million free quarter. adjusted $XX was flow Our

expenditures from We as million a our the adjusted income from gross cash million bridge and EBITDA bridge from $XX flow a adjusted to of dispositions. free received pretax our cash our in asset $XXX flow appendix. capital we were as Our well to our provided free proceeds

Our strong. financial position remains

was September cash billion. XX at $X.X Our balance

gave Our quarter capacity us at with cash, under billion liquidity facilities, of available combined debt borrowing committed end. $X.X

had laddered debt credit XXXX. are at no debt billion. well We our maturities $X.X end under was from revolving to our XXXX facility quarter late Our and net borrowings

We top liquidity the rated and net our investment by strong target quarter to Xx On Moody's, our Our and allocation, X.XXx. range S&P. continue keep capital business. maintain we below remain grade target been at priorities to and in adjusted has investment within our well leverage ended Fitch grade EBITDA, and reinvest

free increase, they'll meaningful flow our cash growth. As earnings drive

result, grade. capital over investment consider returning to a remaining As a shareholders be we'll to all time, while regularly in position

free back our the are our and As revenues we've earnings said goals continue expand our financial growth to inflect to progresses generate core previously, grow flow. as margins, year to our cash

revenues for fiscal constant to for outlook based in rates. recent be X% XXXX $XX.X to exchange revenue billion of continues implies X% This to Our to billion decline $XX.X on currency.

income expect return reaffirming EBITDA quarter. to adjusted fourth the in and revenue our our reflect continue to in outlook year-over-year to to We're plan for the growth pretax We execution QX. we margin delivered adjusted against

pretax and Our outlook for full for at outlook year income $XXX at is XX.X%, adjusted our EBITDA least margin is million. adjusted least

constant will our QX quarter, currency decline than be third meaningfully in the at Looking smaller particular, our decline. year-over-year revenue

adjusted reported be of million Our quarters income of X the double adjusted pretax total, the quarter. than in third first than year more more our deliver should In expect $XX the we in last year. XX% full to year's PTI we

year, earlier the of towards our timing the these latter in of revenues workforce half. have approximately is charges part of rebalancing guidance weighted million Included quarter tilted for charges. slightly The towards the $XX while been are our third the

similar as million prior taxes. cash amount well as roughly for fiscal with flow consistent outlook. a and translates million net whole, cash in of expenditures year $XXX depreciation This topic in On of in to a free of $XXX cash the $XXX XXXX, million adjusted the we capital project flow as our expense

we Over margin the medium free growth. remain committed and delivering flow expansion to term, generating cash significant

earn a to We starts have all solid taken return our with game revenues. strategic drive the this already plan costs alliances, of we've and a technology steps manage our our to and plan expand game progress, on our

opportunities IT because the position we are strong mission-critical economic infrastructure What These provide from Kyndryl for of and are service market matters. do important levels Kyndryl, Stepping what Power's services. differentiate tech to of that growth our back give do and them. leading profitable from we aggressively the specific distinguish financials, nature And services large seize progress to that us, providers we're mission-critical attributes to world. services us other we moving us the organizations, around in

You in to take talk in revenue planned can Investor With would and during to expansion be return our signings Martin in that, progress questions. pleased our and about our growth quarter. I our we the to been delivering more see growth and in November on we've your fourth XX. plan this QX and Day LTM the margin

[Operator Instructions] Martin, you first your question. ready for are

Sir. Yes,

comes Our Scotia Divya from Goyal first from Bank. question

here. pick in Martin, potentially the color signings to bit more Do little and could significantly as come more the signing. macro quarter terms Great momentum a up impact of macro start improves us on you you see rates the provide to continue to the the down?

you for thank Divya, nice comments. the

a on we the that with how which anybody obviously world's what what what our the are and few faced shared ago I report. about feel data companies been future. what of we've start in infrastructure combination technology I'd and and have And the is weeks in we of along Kyndryl than leaders for state is of the about with form think first a of their the readiness else, more data, they readiness the talking with

the about we when skills capabilities opportunities to innovation our and we that the the think to in about the think they're we term. have driving part our at think of we long-term the we bring and think continue markets when so about challenges And trends over they we the looking long I secular the they do, serve grow are that bring, and

invested way invested coming the the capabilities that the innovation of to new feel extraordinarily about we've either, in to I see that about good is very build to how risks of to manage how opportunity. or So unique really advantage a in take leaders bring again, important we've space companies a

long-term long-term of and alignment So trends therefore, growth us. Kyndryl continue provide to signings for will the with the revenue secular

helpful. That's

do see with broadly you the talked do C-suite an enterprises modernization investment as -- important the from a enterprises considering How the to certain when role pass readiness see it theme things election right investments, that continues core core I'll and the the related quick given is standpoint the and and the in evolve. infrastructure AI follow-up, about line you to big is of Like executives global where generally, role global are the everything, things? modernization, a you comes where side replace Just global position place? after, AI can

And down. Yes, feel of to for think customer way the a it's of beginning they sort base our respondents, the a have survey, to readiness they our and I go instance great they at the look, is I know think way the that journey question.

going part They So consult the is to work do already results. they in, it. and be to ready need get of happening. seeing our the is a in instance, know we need know the invest to that economy they digitization what of They we're for them part of keep to for help AI

to It's very seeing invest they're managed future the of for Cybersecurity resilience trying they're take bay. part to on resiliency. to their we're is that in to to but trying while trying of opportunities, obviously, bad things and high also and of different and comes cybersecurity our regulatory probably the And keep time, advantage whatever when at to to we're be, at regimes, what different adjust list regulatory already invest towards, they or headed also not to it happens results need same they're the in. guys regime the

need have systems. resilient still to You

the be You still guys. need safe to bad from

that of the all the from to invest the that. have And the -- that regime our them same going economy expect time, customers' bay. continue they're to time, in regulatory guys at I respond keep are to at same take the and So they've for bad to that opportunities both that of at advantage to there digitization to each is coming they perspective accept

those the do that's role play all in them And helping we that again, things.

part investment have. or who problem a There they to continued companies either substantial IT few very every that part solutions that IT. very don't of see believe a almost big I So in are is

world So expect that's I continue. today, we live that and the to in

Susquehanna. Our from next question comes from Jamie Friedman

number big of Let a -- is a me plus $XXX I number, big deals -- Martin, echo anyone, congratulations. was you. about for wondering the number for big there that's XX the large any a million

seeing looking more renewing a lot pattern for common in than we of it's now? Is any what think that past. they're what seen you're and those in are there terms why customers the had I

yes, with now. So these, rather a One, I a fairly just I renewal each and I that are things, of acceptance what of in we're them to is necessarily us. It's investing think, and infrastructure the is that as the the space, them consistent. that's invested wouldn't which few think of in think we've company consistent the capabilities in seeing very of a that desire modernize

capabilities they're time, and Kyndryl ever-spiraling their observability for them them to deep same So manage they're at sprawling give infrastructure. the for Bridge and looking obviously ever looking help engineering provides and deep the IT to that innovation their skills

in of So as past. think renewing these for each their the of investment in of what digitization, so these additional as rent of scope continued we've each think reflecting us, just done

And reflecting each these practices. of of think of our each generally as

as think comments, and and in I getting has element, David in that element. consulting the the of think we're of them one a high each noted a consultant as his represented importantly, growth business. prepared And well So every the both as double-digit them see managed practices very of you from growth and managed

So of skills for take broad-based. and with a managed. opportunities. our we advantage each -- scope as their us the has to has pattern challenges pretty them consult of their It's is or these it -- practices. biggest invest the help are we It best as bring has It expansion

firm, pretty will, if see a from you are what customers So taking it's that they approach up whole our Kyndryl. of from

it any there I you're ask, it. or in any is those, are is Got the from vertical? for pattern with region other Page vertical then a particular regional PowerPoint could outs on XX And consistent or call in the they of service -- perspective, perspective a are any example, noticing the a or line of just that

we're or time, would been expect any mix sure. industry quarter, customer is and nice at thanks mixed, Look, where over more that time. will that will signings we've given Thanks, shift the reflect the in for quarter. slowly obviously and where well. I Over as given -- yes, is comments the base Jamie, mix Yes, beginning in less the any

big each our regional each grew of when there's segments each can to delivery perspective, some And platform, numbers of each a regions again, some the there. And quarter, all obviously a grew others. signings that, in global the the a practices. as growth than But obviously, of in with double, deliver From segments of faster of means our each which would say the capabilities of reach our on our global customers well. ability basis, I single across our you

that of to is think I the innovation, that they industries take happen we've been each go-to-market advantage me can experience we in end-to-end so skills customers advantage can the building kind of of to and that in each each wherever our of be. -- of serve our of take

not broad-based think new confidence the I -- that again, of signed trust are this logo coming depth customers, by Kyndryl now, we new and and they that that they're large are obviously of all logo the way, customers existing our skills. the form experience it's see the a So as it's quarter innovation -- our but from the customers their of in of customers well and them deals and reflection some

this things the David. of one Jamie, And is --

single-digit reasonable think of be making really the things while get margins new we margins pretax we're to expected sign really signings on continuing in this achieving continuing I about the successful business effective that and at and is margin. signing disciplined One we're really high sure business and to is growth with important an contracts which the

and highlighted to adding high, gross that's embedded our remarkably a we we're is shared think as profit that book-to-bill we in value deck -- lot backlog. the our I of

Huang next Our from JPMorgan. from comes question Tien-Tsin

about Sorry, can me you phones now, Martin? switch that, just here. Sorry hear your

about always the Just pipeline. I to go always -- that strong asking replenishing I about might also want signings. the to see really ask is we

if from here like? know but it's I kind just you feel this signings broad-based, how does sustainable? look which replenish is the opportunity is momentum So curious of encouraging, very

the it's has think We And it sustainable. been for question. Thanks absolutely sustainable.

period time. to look seeing basis. prefer and over actually XX% of a signings latest LTM we're growth to of north over So that And we look try at an XX-month

offer Our range to ratio opportunity we're customers now see with valuable absolutely a bear I as end-to-end with know-how for as solutions saying, really of have, where that on role capabilities us. and alliances move book-to-bill one, going playing put an growth ability was position and us technology to bring at combined to and for that in is we're our have to And has trajectory the we we're we that well. we the Martin the think able is to the the up be sustainable

And that frankly, plan we've our a talk positioning more story and important about the it's to X at XXst really the on part one it's the long-term business of over think last an the areas developed for years. Day our of we way we because Investor as organization growth. sustainable the

to Bridge provide customers. insights described thing thing a for think is Tien-Tsin, David actionable way it But Kyndryl add, really I to our is I'd us One well. and that one I'd add keep also mind in

So term well. our long that over Consult the growth fuels as Kyndryl

have our them insights appreciate really it else gives nobody also systems, value through advantage Obviously, their customers ability nobody also get appreciate Bridge, we we has have visibility can, they deliver they they of. to to an delivered but which great So that Kyndryl value observability, Consult. through take else that the can the

of No, Yes. sounds a things like it you got good going lot there. on

that's So to great hear.

Just my if now to have it's ask it here, I okay. follow-up and

change good. outlook. a decision little the -- in bit been raise of clearly pattern to Just quite results not A your it's

there? us update So

growth is momentum, positions years, talking with really continued right? signings we the feel have Yes, momentum about sure. how been pleased gives of now the we we well We're coming X momentum had is a year us and signings -- start second going have a and great quarter, lot from finished of which us Look, just over might David that obviously, really, for half. factors first the great really we from about Look, I'll something. the the then the into

just ago. our were couple a days We third of on birthday

which, with remember, has deliver positioned already So with out return -- to revenue really the the substantial feel with we have guidance has also it profit the year alliances like consultant least pretty momentum, growth. at and momentum improvement to year, another we're we the hitting well great really there, and

quarter, So guided. momentum great another with the where good relative first with really half so to really, we

we Tien-Tsin to half. business the our you years, second mind, about half, only second And half big year, feel keep X good year, even improvement know after the we've think around And because a from bit. added quite only been the This backlog. what the I half in in of represents this, profitability. comes revenue this a you've and

represents what still we've The other half inherited.

date, away the spin the as -- And inherited P&L diminish. we of in the get that continues and role further our obviously, from backlog further to

ahead got growth we've a from us lot spin of of acceleration here lot date. the further move as we of a and So

Now couple of and a weeks. [indiscernible] that. all you agree with to of hear see Happy

Our comes Isaac from Oppenheimer. [indiscernible] next question from

Isaac of is customers what and seeing signings on revenue my services you're managed provide other how Maybe for question then consult is compared if the able [indiscernible] consult margins to and you'd commentary and work. signings. some growth be for on existing between to logos maybe those on new some level and This higher those secondly,

a In consult, areas. of strength Sure. in number different we're seeing

quarter in year-over-year, to Our prior revenues compares are XX% that in constant up currency. and XX% north the of

in of only that quarter. revenue So growth acceleration Consults recent XX% of we're the recent most but up growth total most seeing now not our an to in the quarter.

that. and excited part of So more do. about we more what larger a part, We're a really it's becoming important

offerings. the of Consult is range of practices our our the really range and spanning

managed in to using few areas providing consult capabilities number a different where of From tends we that that's consult really the higher be to way our often to a a than we're customers. related helpful services number a bear. points general perspective, of in we're bring services the advisory it. and in price So that's our to We think we margin areas

opportunity -- a as for we'll occasion, consult point assignments with the that On new logo use starting will relationship. building

And typically consult existing to start new so logo also we a it's but big where in relationships consider or value will relationships. be often add we

is that presence And well. space extremely so as our important from this we think perspective in valuable and

we're known And that for. is that more more becoming I this something lastly, would say and

a a technologies together Kyndryl where in the consult in position insights ability Our putting that technologies, is our Bridge, deliver value the range but customers history, from is assignments. consult side, the wide of we and growth obviously, capabilities through us that all have can services the have, we of lot on really bring these we to managed to the a

growth, that's area a repeat and business our think customers this from it's driving what's of in I lot driving our well. And as

Yes. I David. supplement Thank you, that. just would

mean, I guess lead think about all I all our the lead kind that roads this experience and I is of I'd think roads to just it. I and it's supplement well to central. infrastructure said. way

about instance, [ for read you if a the European for requirements sector new, the it. resiliency called ] and financial regulatory newspaper acronym So Dora, across up pick for the

Dora resiliency lot You ready [ consult think be that architecture, for them should Gen features about a ] read used for it's newspaper work and model to getting a language our you need. correct start customer's again, we're that that doing going would data and of AI in base in case, test assuming a assume a security or or you and customer if data going on of with they're it's to new large

innovation to same Kyndryl we go where you to of our protecting data care needing are future. advantage the can Again, I and take And care time and read when and that leads that's back practices. while on, at cloud And the ready customers. health our industry with and health getting on on about for the again, its on

at customers where and the sit heart trend So over are over and again we of and long-term is we over this see what growth reason the facing. because

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Martin I I for back now am closing it over showing to remarks. no further turn questions. will

to joining and Thank you. for us Thank thanks you everybody today. very much,

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more a Day. November that the and leadership there So having looking of David for and be and Investor XX, team to join Lori well. will we're few I forward and one as plug others our you

So for thanks, everybody, joining.

Thank you today's for This the in your conclude does conference. participation program.

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