Kyndryl Holdings Inc (KD) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to Kyndryl's First Fiscal Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Lori Chaitman, Head of Investor Relations. Please go ahead.

早上好，女士們，先生們。歡迎參加 Kyndryl 2024 年第一財季收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在，我將把會議交給演講主持人、投資者關係主管洛里·柴特曼 (Lori Chaitman)。請繼續。

Good morning, everyone, and welcome to Kyndryl's earnings call for the first fiscal quarter ended June 30, 2023. Before we begin, I'd like to remind you that our remarks today will include forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied, and these statements speak only to our expectations as of today.

大家早上好，歡迎參加 Kyndryl 截至 2023 年 6 月 30 日的第一財季財報電話會議。在開始之前，我想提醒您，我們今天的講話將包括前瞻性陳述。這些陳述受到風險因素的影響，可能導致我們的實際結果與明示或暗示的結果存在重大差異，並且這些陳述僅代表我們截至目前的預期。

For more details on these risks, please see the Risk Factors section of our annual report on Form 10-K for the year ended March 31, 2023. Kyndryl does not update forward-looking statements and disclaims any obligation to do so. In today's remarks, we'll also refer to certain non-GAAP financial measures. Corresponding GAAP measures and a reconciliation of non-GAAP measures to GAAP measures for historical periods are provided in the presentation materials for today's event, which are available on our website at investor.kyndryl.com. With me here today are Kyndryl's Chairman and Chief Executive Officer, Martin Schroeter, and Kyndryl's Chief Financial Officer, David Wyshner. Following our prepared remarks, we will hold a Q&A session. I'd like to now turn the call over to Martin. Martin?

有關這些風險的更多詳細信息，請參閱我們截至2023 年3 月31 日的年度報告10-K 表格中的“風險因素”部分。Kyndryl 不會更新前瞻性陳述，並且不承擔任何這樣做的義務。在今天的講話中，我們還將提及某些非公認會計準則財務指標。今天活動的演示材料中提供了相應的 GAAP 衡量標準以及歷史時期非 GAAP 衡量標準與 GAAP 衡量標準的調節表，這些材料可在我們的網站 Investor.kyndryl.com 上獲取。今天與我在一起的有 Kyndryl 董事長兼首席執行官 Martin Schroeter 和 Kyndryl 首席財務官 David Wyshner。在我們準備好的發言之後，我們將舉行問答環節。我現在想把電話轉給馬丁。馬丁？

Thank you, Lori, and thanks to each of you for joining us. On today's call, I'll update you on the substantial progress we're making as a company and the meaningful implications of that progress. David will then review our recent financial results, our updated and improved fiscal 2024 outlook and how we're changing the margin profile of our focus accounts.

謝謝你，洛瑞，也感謝你們每個人加入我們。在今天的電話會議上，我將向您介紹我們作為一家公司所取得的實質性進展以及這些進展的有意義的影響。然後，David 將回顧我們最近的財務業績、更新和改進的 2024 財年前景，以及我們如何改變重點賬戶的利潤狀況。

We are off to a very strong start in fiscal 2024. Our first quarter results exceeded our expectations and positioned us well for the year as a whole. Our 3A initiatives, Alliances, Advanced Delivery and Accounts were at the core of our success. Kyndryl Consult, Kyndryl Bridge and our efficiency efforts also helped drive our results. We extended and expanded customer relationships in ways that will be mutually beneficial, and we're raising our earnings outlook for fiscal 2024. In short, we're moving even faster than before to deliver progress, and we'll talk more about our achievements on the 3As and our updated full year outlook. But before we do that, there are 3 declarative statements I want to make.

我們在 2024 財年有了一個非常強勁的開局。我們第一季度的業績超出了我們的預期，使我們全年處於有利地位。我們的 3A 計劃、聯盟、高級交付和客戶是我們成功的核心。 Kyndryl Consult、Kyndryl Bridge 和我們的效率努力也有助於推動我們取得成果。我們以互惠互利的方式擴展和擴大了客戶關係，並且我們正在提高 2024 財年的盈利前景。簡而言之，我們比以前更快地取得進展，我們將更多地談論我們的成就關於3As 和我們更新的全年展望。但在此之前，我想先聲明三點。

First, annual losses are now behind us. We expect to make money this year and each year going forward as measured by our adjusted pretax income. Second, we remain committed to delivering revenue growth in calendar 2025 and in fiscal 2026. That means that our revenue will bottom out in calendar 2024 or fiscal 2025. And we expect that bottom will be within a few percentage points of our revenues this fiscal year as we retain the substantial majority of our focus accounts and their revenue.

首先，年度虧損已經成為過去。根據調整後的稅前收入來衡量，我們預計今年和未來每年都會賺錢。其次，我們仍然致力於在 2025 年和 2026 財年實現收入增長。這意味著我們的收入將在 2024 年或 2025 財年觸底。我們預計底部將在本財年收入的幾個百分點內因為我們保留了大部分重點客戶及其收入。

And third, as a result of our execution and accelerated pace of our transformation, we'll deliver the profit goals we've previously shared on the timelines we've previously shared, and our medium-term target is for adjusted pretax margins to be in the high single digits. This year, our fiscal 2024 will be a year of acceleration for Kyndryl. We're already seeing that in our first quarter results and our operating trends. We're accelerating our transformation with new Alliance signings and revenue, with benefits from Advanced Delivery, with a massive improvement in our focus accounts, with rapid growth in Kyndryl Consult, with our technology leadership through Kyndryl Bridge, with our cost savings through our internal rationalization and transformation and, of course, the culture change we're driving through the Kyndryl Way.

第三，由於我們的執行力和轉型步伐的加快，我們將按照之前共享的時間表實現之前共享的利潤目標，我們的中期目標是調整後的稅前利潤率在高個位數。今年，2024 財年將是 Kyndryl 加速發展的一年。我們已經在第一季度的業績和運營趨勢中看到了這一點。我們正在通過新的聯盟簽約和收入、先進交付的好處、我們的重點客戶的巨大改進、Kyndryl Consult 的快速增長、通過 Kyndryl Bridge 實現的技術領先地位、通過我們內部的成本節約來加速轉型。合理化和轉型，當然還有我們通過Kyndryl Way 推動的文化變革。

These are powerful dynamics for our near-term and medium-term value creation. Stepping back a bit, as I think about Kyndryl, I believe our leadership in the markets we serve and the way we're building toward future growth are creating a compelling value proposition that is not yet well appreciated across the investment community. We've previously highlighted a number of the key components of our value proposition, and I want to clearly connect the dots as to how these elements of our business model are building value for us.

這些是我們近期和中期價值創造的強大動力。退後一步，當我想到Kyndryl 時，我相信我們在所服務的市場中的領導地位以及我們為未來增長而構建的方式正在創造一個令人信服的價值主張，而這一價值主張尚未得到整個投資界的充分認可。我們之前已經強調了我們價值主張的一些關鍵組成部分，我想清楚地說明我們商業模式的這些要素如何為我們創造價值。

First, we're the world's largest provider of IT infrastructure services to double the size of the next largest players. Our scale and our industry leadership foster innovative solutioning and service excellence because of our unique position on the industry learning curve and the mission-critical nature of what we do. We've been delivering double-digit revenue growth in Kyndryl Consult, the higher-margin, higher value-add advisory portion of our business despite the macro environment.

首先，我們是全球最大的 IT 基礎設施服務提供商，規模是第二大參與者的兩倍。由於我們在行業學習曲線上的獨特地位以及我們所做工作的關鍵任務性質，我們的規模和行業領導地位促進了創新解決方案和卓越服務。儘管宏觀環境嚴峻，我們的 Kyndryl Consult 業務仍實現了兩位數的收入增長，這是我們業務中利潤率更高、附加值更高的諮詢部分。

And over the medium term, we now expect Kyndryl Consult to grow to 20% of our revenue, 1/3 more than our previous target of 15% and by delivering and accelerating customer business outcomes that are informed by our extensive operational experience, Kyndryl Consult will support our future revenue growth and margin expansion. We are aggressively fixing our focus accounts. With these customers, as we discussed last quarter, we're adding profitable scope, removing unprofitable scope, driving efficiencies largely through automation which enhances service quality, and we're adjusting pricing when appropriate and only rarely are we exiting relationships.

從中期來看，我們現在預計 Kyndryl Consult 將增長到我們收入的 20%，比我們之前 15% 的目標高出 1/3，並通過我們豐富的運營經驗交付和加速客戶業務成果，Kyndryl Consult將支持我們未來的收入增長和利潤率擴張。我們正在積極修復我們的焦點賬戶。正如我們上季度討論的那樣，對於這些客戶，我們正在增加盈利範圍，消除無利可圖的範圍，主要通過提高服務質量的自動化來提高效率，並且我們會在適當的時候調整定價，並且很少會退出關係。

We're approaching an inflection point in our business mix with fiscal 2025 being a year when roughly half of our revenue will come from post-spin signings and fiscal 2026 being the first year when our revenues and earnings will be primarily determined by contracts that Kyndryl signed. The 3As, the anticipated upswing in our revenue trajectory and the tipping point of controlling our own destiny through our revenues coming mostly from post-spin signings are what will propel us from modestly positive adjusted pretax earnings this year to high single-digit margins in the medium term.

我們的業務組合正接近一個拐點，到 2025 財年，我們大約一半的收入將來自分拆後的簽約，而到 2026 財年，我們的收入和收益將主要由 Kyndryl 簽訂的合同決定。簽。 3A，我們收入軌蹟的預期上升，以及通過我們的收入主要來自旋轉後簽約來控制我們自己命運的轉折點，將推動我們從今年適度正調整的稅前利潤上升到高個位數的利潤率。中期。

And our cash flow is expected to grow in conjunction with our adjusted pretax income with strong conversion of adjusted net income to cash. Together, these elements of our business model form, I believe, a compelling value proposition. And I want to emphasize how enthusiastic we as a management team are about the margin trajectory that we've laid out and are already delivering on. Our 3A initiatives are major proof points. In fact, they're driving momentum throughout our business and fostering additional progress each quarter.

我們的現金流預計將隨著調整後的稅前收入的增長而增長，調整後的淨利潤將強勁地轉換為現金。我相信，我們商業模式的這些要素共同構成了令人信服的價值主張。我想強調，作為管理團隊，我們對我們已經制定並已經實現的利潤軌跡充滿熱情。我們的 3A 舉措就是主要證明。事實上，他們正在推動我們整個業務的發展勢頭，並促進每個季度取得更多進展。

As a reminder, we provided fiscal 2024 targets of $300 million in revenue tied to hyperscaler alliances, $450 million in cumulative annualized cost savings from Advanced Delivery by fiscal year-end and $400 million of cumulative annualized pretax benefit from our Accounts initiative. We made excellent progress toward our goals in the first quarter, putting us well on track to deliver or exceed our fiscal 2024 milestones for each of these initiatives. Through our Alliances, we're building the portion of our customer relationships that include cloud-based content.

提醒一下，我們提出的2024 財年目標是與超大規模聯盟相關的收入為3 億美元，到財年末通過高級交付實現累計年化成本節省4.5 億美元，以及通過我們的賬戶計劃實現累計年化稅前收益4 億美元。我們在第一季度朝著我們的目標取得了巨大進展，使我們有望實現或超越每項舉措的 2024 財年里程碑。通過我們的聯盟，我們正在建立包括基於雲的內容的部分客戶關係。

In the first quarter, we recognized more than $80 million in hyperscaler related revenue, putting our run rate ahead of our $300 million full year target. We've also continued to increase our hyperscaler certifications to more than 37,000, which is 70% higher than a year ago. Our growth stems from joint enablement activities with our partners, co-marketing to enterprise customers and incremental training programs, all of which help us deliver higher value solutions that address customers' most pressing needs.

第一季度，我們確認了超過 8000 萬美元的超大規模相關收入，使我們的運行率超過了 3 億美元的全年目標。我們還繼續將超大規模認證增加到 37,000 多個，比一年前增加了 70%。我們的增長源於與合作夥伴的聯合支持活動、對企業客戶的聯合營銷以及增量培訓計劃，所有這些都幫助我們提供更高價值的解決方案，滿足客戶最緊迫的需求。

Our Advanced Delivery initiative is transforming the way we deliver our services with automation tools and resources. To date, we've been able to free up more than 6,500 delivery professionals to address new revenue opportunities and to backfill attrition. This is worth roughly $375 million a year to us, representing a $75 million increase in our annual run rate this past quarter. And we continue to see significant automation opportunities across our delivery operations as we improve service levels, reduce our costs and incorporate more technology, including Kyndryl Bridge into our offerings.

我們的高級交付計劃正在改變我們利用自動化工具和資源提供服務的方式。迄今為止，我們已經騰出了超過 6,500 名送貨專業人員來尋找新的收入機會並彌補人員流失。這對我們來說每年價值約 3.75 億美元，意味著我們上個季度的年運行率增加了 7500 萬美元。隨著我們提高服務水平、降低成本並將更多技術（包括 Kyndryl Bridge）納入我們的產品中，我們將繼續在我們的交付業務中看到重要的自動化機會。

Our Accounts initiative has been and will continue to be a global effort focused on fixing elements of contracts with substandard margins. We're a trusted partner for our customers and that trust is what brings our customers to the table. In the first quarter, we've increased the annual profitability of our focus accounts to more than $300 million, which is a $90 million increase from our run rate just 3 months ago.

我們的賬戶計劃一直並將繼續是一項全球性的努力，重點是修復利潤率不合格的合同要素。我們是客戶值得信賴的合作夥伴，正是這種信任讓我們的客戶參與進來。第一季度，我們將重點客戶的年盈利能力提高到了 3 億美元以上，比 3 個月前的運行率增加了 9000 萬美元。

More generally, we view successful execution of our 3As as the clearest and fastest path towards achieving sustainable, profitable growth. In each quarter, there are additional customer examples that demonstrate our team's successful execution of our 3As. The underlying theme among them is that the combination of our Alliances and our expanded capabilities, including Kyndryl Consult, Bridge and Vital is resonating with our customers and providing Kyndryl with new revenue streams and higher value opportunities.

更廣泛地說，我們認為成功執行 3A 是實現可持續盈利增長的最清晰、最快的途徑。每個季度都會有更多客戶示例來展示我們團隊成功執行 3A 的情況。其中的基本主題是，我們的聯盟和我們擴展的能力（包括 Kyndryl Consult、Bridge 和 Vital）的結合正在與我們的客戶產生共鳴，並為 Kyndryl 提供新的收入來源和更高價值的機會。

Here are a few of my favorites from the first quarter with one banking customer who we've been working with for over a decade, we recently expanded beyond our managed services to include Kyndryl Consult and will help the bank build and deploy AI into its core banking services. Second, in conjunction with the contract renewal with one of our largest customers, we expanded our scope of work to include Kyndryl consult and AWS cloud migration and management. And with one of our larger focus accounts that was undergoing a digital transformation and becoming increasingly unprofitable for us, we're adding consult, we're adding mainframe modernization and cloud-based work and we're accelerating our customers' digital transformation while removing third-party purchases that were uneconomic for us and fixing the margins associated with the account.

以下是我第一季度最喜歡的一些與我們合作了十多年的銀行客戶的一些建議，我們最近擴展到託管服務之外，將Kyndryl Consult 納入其中，並將幫助該銀行構建人工智能並將其部署到其核心中銀行服務。其次，在與我們最大的客戶之一續簽合同的同時，我們擴大了工作範圍，包括 Kyndryl 諮詢以及 AWS 雲遷移和管理。我們的一個較大的重點客戶正在經歷數字化轉型，並且變得越來越無利可圖，我們正在增加諮詢，我們正在增加大型機現代化和基於雲的工作，我們正在加速客戶的數字化轉型，同時消除對我們來說不經濟的第三方購買並固定與賬戶相關的利潤。

Innovation. Innovation that is practical and useful is what's allowing Kyndryl to show up differently for our customers. Kyndryl Bridge is an open integration services platform powered by AI and machine learning that we offer to our customers to accelerate automation, drive efficiencies, enhance security and resiliency and create a more sustainable technology estate. We have more than 500 enterprise customers operating on Kyndryl Bridge with more than 1,000 expected by the end of the year. And we recently announced that we're helping these customers both reduce risk and save more than $1 billion annually through their early adoption of Kyndryl Bridge.

創新。實用且有用的創新讓 Kyndryl 能夠以不同的方式呈現給我們的客戶。 Kyndryl Bridge 是一個由人工智能和機器學習提供支持的開放式集成服務平台，我們為客戶提供加速自動化、提高效率、增強安全性和彈性並創建更可持續的技術產業的服務。我們有超過 500 家企業客戶在 Kyndryl Bridge 上運營，預計到今年年底將超過 1,000 家。我們最近宣布，通過早期採用 Kyndryl Bridge，我們正在幫助這些客戶降低風險並每年節省超過 10 億美元。

Now we view artificial intelligence as a multifaceted opportunity for us as we both apply AI in our operations and enable our customers to use AI in their business. AI is already driving enhanced operating performance in applications like Kyndryl Bridge and it's beginning to generate revenue growth opportunities as customers need additional help with data architecture and to implement AI at scale and it's going to allow us as an organization to operate more efficiently.

現在，我們將人工智能視為一個多方面的機會，因為我們既在運營中應用人工智能，又使我們的客戶能夠在其業務中使用人工智能。人工智能已經在推動Kyndryl Bridge 等應用程序中提高運營性能，並且隨著客戶需要數據架構方面的額外幫助以及大規模實施人工智能，它開始產生收入增長機會，這將使我們作為一個組織能夠更高效地運營。

We're not going to make AI our fourth A, but we clearly see it as an accelerator of our advanced delivery initiative, a component of our Alliances' growth and a source of future cost savings opportunities. In fact, this week, we'll announce that we're working with Microsoft to help our customers accelerate the responsible adoption of generative AI solutions in their enterprises. And in another area where innovation is critical, we've recently announced that we significantly expanded the end-to-end cybersecurity services we offer, enabling enterprise customers to detect, respond to and recover from cyber attacks.

我們不會讓人工智能成為我們的第四個A，但我們清楚地將其視為我們先進交付計劃的加速器、我們聯盟增長的組成部分以及未來成本節約機會的來源。事實上，本週我們將宣布我們正在與 Microsoft 合作，幫助我們的客戶加速在其企業中負責任地採用生成式 AI 解決方案。在另一個創新至關重要的領域，我們最近宣布，我們顯著擴展了我們提供的端到端網絡安全服務，使企業客戶能夠檢測、響應網絡攻擊並從中恢復。

We're opening next-generation security operations hubs in key geographies around the world, which will enable Kyndryl's already $2 billion security and resiliency practice to expand our presence into this nearly $50 billion market. By offering security operations as a unified modular platform, we enable customers to retain existing security investments while augmenting their infrastructure with new services.

我們將在全球主要地區開設下一代安全運營中心，這將使 Kyndryl 已經價值 20 億美元的安全和彈性實踐能夠將我們的業務擴展到這個近 500 億美元的市場。通過將安全運營作為統一的模塊化平台提供，我們使客戶能夠保留現有的安全投資，同時通過新服務增強其基礎設施。

To sum up, we are highly enthusiastic about our recent results and the path in front of us. And we're confident we have the right strategy in place to drive progress. We have the right leadership, talent, know-how and alliances to execute our business transformation. In our fiscal 2023 and first quarter 2024 results, including our execution against the 3As, gives us strong positive momentum.

總而言之，我們對最近的成果和我們面前的道路充滿熱情。我們相信我們擁有正確的戰略來推動進步。我們擁有合適的領導力、人才、專業知識和聯盟來執行我們的業務轉型。在我們 2023 財年和 2024 年第一季度的業績中，包括我們對 3A 的執行情況，給我們帶來了強勁的積極動力。

Looking ahead, we'll use our intellectual property, our alliances and our scale to further expand our capabilities to differentiate ourselves in the markets we serve and to strengthen our leadership position. We're engaging with customers and IT decisions further up the technology stack, including discussions about how to enable AI in their businesses. Our unmatched expertise in mainframe modernization and hybrid IT environments allows us to provide thought leadership with Kyndryl Consult, deliver innovation with Kyndryl Bridge and meet our customers' objectives for robust application of new technologies. We're capitalizing on growth opportunities across our practices and particularly in cloud, security, network and apps and data and AI.

展望未來，我們將利用我們的知識產權、聯盟和規模，進一步擴大我們的能力，在我們所服務的市場中脫穎而出，並鞏固我們的領導地位。我們正在與客戶和 IT 決策進一步深入技術堆棧，包括討論如何在他們的業務中啟用人工智能。我們在大型機現代化和混合 IT 環境方面無與倫比的專業知識使我們能夠通過 Kyndryl Consult 提供思想領導力，通過 Kyndryl Bridge 提供創新，並滿足客戶穩健應用新技術的目標。我們正在利用我們實踐中的增長機會，特別是在雲、安全、網絡和應用程序以及數據和人工智能方面。

In short, we're engaging with customers where they want us to be at the center of a collaborative relationship in which technology drives business outcomes in a reliable, secure way. This is allowing us to access incremental market opportunities to grow our share of wallet with existing customers to win new customers and to transform Kyndryl. Now with that, I'll hand over to David to take you through our results and our outlook.

簡而言之，我們正在與客戶合作，他們希望我們成為合作關係的中心，在這種合作關係中，技術以可靠、安全的方式推動業務成果。這使我們能夠獲得增量市場機會，增加現有客戶的錢包份額，從而贏得新客戶並實現 Kyndryl 轉型。現在，我將請 David 向您介紹我們的成果和前景。

Thanks, Martin, and hello, everyone. Today, I'd like to discuss our quarterly results, our balance sheet and liquidity, how we're raising our outlook for fiscal year 2024 and the progress we're making on our focus accounts. Our first quarter results reflect strong operational execution and remarkable progress on our key initiatives.

謝謝馬丁，大家好。今天，我想討論我們的季度業績、資產負債表和流動性、我們如何提高 2024 財年的前景以及我們在重點賬戶方面取得的進展。我們第一季度的業績反映了強大的運營執行力和我們關鍵舉措的顯著進展。

In the quarter, revenue totaled $4.2 billion, a 1% decline in constant currency. Demand for our services has remained resilient, and we continue to gain momentum in higher-margin advisory services. And while our Q1 signings were down 5% year-over-year in constant currency, through July 31, our year-to-date signings are up 9%. Kyndryl Consult revenues grew 20% year-over-year in constant currency and represented 14% of total revenue in the quarter, the highest percentage ever.

本季度收入總計 42 億美元，按固定匯率計算下降 1%。對我們服務的需求仍然保持彈性，我們在利潤率更高的諮詢服務方面繼續獲得動力。雖然按固定匯率計算，我們第一季度的簽約人數同比下降了 5%，但截至 7 月 31 日，我們年初至今的簽約人數卻增長了 9%。按固定匯率計算，Kyndryl Consult 收入同比增長 20%，佔本季度總收入的 14%，創歷史最高比例。

This performance reflects how our post-spin opportunities for growth in Kyndryl Consult services are outweighing the macro issues pressuring some other firms. Our adjusted EBITDA grew 25% year-over-year to $612 million. Our adjusted EBITDA margin was 14.6%, a year-over-year increase of 310 basis points. Adjusted pretax income was $47 million, a $97 million improvement in profit compared to the prior year quarter. Our continued and substantial progress on our 3As is what's driving our results and more than offset the year-over-year software cost increases we faced.

這一業績反映出我們在 Kyndryl Consult 服務方面的分拆後增長機會如何超過了給其他一些公司帶來壓力的宏觀問題。我們的調整後 EBITDA 同比增長 25%，達到 6.12 億美元。調整後 EBITDA 利潤率為 14.6%，同比增長 310 個基點。調整後的稅前收入為 4700 萬美元，與去年同期相比，利潤增加了 9700 萬美元。我們在 3A 方面持續取得的實質性進展推動了我們的業績增長，並且遠遠抵消了我們面臨的逐年軟件成本增長。

We address our customers' needs through our geographic operating segments and also through our 6 global practices: cloud, applications, data and AI, security and resiliency, network and edge, digital workplace and core enterprise. Our business mix continues to evolve to reflect demand with most of our signings, including Kyndryl Consult signings coming from cloud, apps, data and AI, security and other growth areas.

我們通過地理運營部門以及 6 個全球實踐來滿足客戶的需求：雲、應用程序、數據和人工智能、安全性和彈性、網絡和邊緣、數字工作場所和核心企業。我們的業務組合不斷發展，以反映我們大多數簽約的需求，包括來自云、應用程序、數據和人工智能、安全和其他增長領域的 Kyndryl Consult 簽約。

More generally, as we look back on the quarter, we're thrilled to have delivered results that position us to exceed the full year earnings targets we laid out in May as I'll discuss momentarily.

更廣泛地說，當我們回顧本季度時，我們很高興取得了超出我們 5 月份制定的全年盈利目標的業績，我將立即討論這一點。

Turning to our cash flow and balance sheet. Our adjusted free cash flow was negative $106 million in the quarter, entirely due to timing effects. Our gross capital expenditures were $100 million, and we received $6 million of proceeds from asset dispositions. The negative adjusted free cash flow in Q1 does not change our expectation that full year adjusted free cash flow will be positive.

轉向我們的現金流和資產負債表。本季度調整後的自由現金流為負 1.06 億美元，這完全是由於時間效應造成的。我們的總資本支出為 1 億美元，我們從資產處置中獲得了 600 萬美元的收益。第一季度調整後自由現金流為負並沒有改變我們對全年調整後自由現金流將為正的預期。

In fact, our cash flow seasonality in Q1 stems from annual incentive payments that were accrued throughout the prior fiscal year, but paid out in the June quarter as well as payments for software licenses that were made in Q1 but will be amortized in future periods. As a result, the seasonal items that caused our Q1 adjusted free cash flow to be negative will reverse over the course of the year. We provided a bridge from our adjusted pretax income to our free cash flow.

事實上，我們第一季度現金流的季節性源於上一財年累計但在六月季度支付的年度激勵付款，以及第一季度支付但將在未來期間攤銷的軟件許可證付款。因此，導致第一季度調整後自由現金流為負的季節性因素將在一年中逆轉。我們在調整後的稅前收入和自由現金流之間架起了一座橋樑。

And based on feedback from some investors, we've also provided a bridge from our adjusted EBITDA to our free cash flow in the appendix. Our financial position remains strong. Our cash balance at March 31 was $1.5 billion. Our cash balance combined with available debt capacity under committed borrowing facilities gave us nearly $5 billion of liquidity at quarter end.

根據一些投資者的反饋，我們還在附錄中提供了從調整後的 EBITDA 到自由現金流的橋樑。我們的財務狀況依然強勁。截至 3 月 31 日，我們的現金餘額為 15 億美元。我們的現金餘額加上承諾借款額度下的可用債務能力，在季度末為我們提供了近 50 億美元的流動性。

Our debt maturities are well laddered from late 2024 to 2041. We had no borrowings outstanding under our revolving credit facility. And our net debt at quarter end was $1.8 billion. As a result, our net leverage sits well within our target range. We are rated investment grade by Moody's, Fitch and S&P. There's no change in our approach to capital allocation. Our top priorities continue to be to maintain strong liquidity, remain investment grade and reinvest in our business. Our full year adjusted free cash flow will help fund spin-related cash outlays, including required systems migrations and workforce rebalancing costs.

我們的債務到期日從 2024 年底到 2041 年。我們的循環信貸安排下沒有未償還的借款。季度末我們的淨債務為 18 億美元。因此，我們的淨槓桿率完全在我們的目標範圍內。我們被穆迪、惠譽和標準普爾評為投資級別。我們的資本配置方法沒有變化。我們的首要任務仍然是保持強勁的流動性、保持投資級別並對我們的業務進行再投資。我們全年調整後的自由現金流將有助於為與旋轉相關的現金支出提供資金，包括所需的系統遷移和勞動力重新平衡成本。

Over time, Kyndryl's leadership position in IT infrastructure services, combined with benefits from our 3A initiatives should allow us to significantly expand our margins and our free cash flow and ultimately be in a position to consider regularly returning capital to shareholders, all while remaining investment grade.

隨著時間的推移，Kyndryl 在IT 基礎設施服務領域的領導地位，加上我們3A 計劃的優勢，將使我們能夠顯著擴大利潤和自由現金流，並最終能夠考慮定期向股東返還資本，同時保持投資級別。

In executing our accounts initiative, we're paying close attention to the margins on signings for both our focus accounts and our blueprint accounts. Immediately following the spin, we were signing business with an expected gross margin of roughly 20% and a pretax margin in the mid-single digits. These signings themselves represented higher margins than the roughly breakeven pre-spin deals that were generating the bulk of our revenues.

在執行我們的賬戶計劃時，我們密切關注我們的焦點賬戶和藍圖賬戶的簽約利潤。分拆後，我們立即簽訂了預計毛利率約為 20%、稅前利潤率為中個位數的業務。這些簽約本身所代表的利潤率高於為我們帶來大部分收入的大致收支平衡的預分拆交易。

And over the last 12 months, we've combined pricing discipline and collaborative engagement with customers to move our projected margins on all new signings up to the mid-20s for gross profit in the high-single digits for pretax profit. The June quarter was a continuation of that favorable trend. Importantly, what this means is that in the 6 full quarters we've been independent, we've been signing agreements that fully support the medium-term margins we're aiming for.

在過去 12 個月裡，我們將定價規則和與客戶的協作結合起來，將所有新簽約的預計利潤率提高到 20 多歲，毛利潤達到高個位數的稅前利潤。六月季度是這一有利趨勢的延續。重要的是，這意味著在我們獨立的 6 個完整季度中，我們一直在簽署完全支持我們目標中期利潤率的協議。

In fact, if our P&L reflected only our recently signed deals, we'd be operating at mid- to high single-digit adjusted pretax margins. But because of the prevalence in multiyear contracts in our business, most of our revenue is still coming from lower-margin, pre-spin legacy signings. As a result, you can't currently see in our overall results the full benefit of the higher margins at which we're now pricing contracts. But that will change with time as our business mix increasingly shifts towards more post-spin contracts. In fact, next year, our fiscal 2025, about half of our revenue will be coming from contracts signed post spin.

事實上，如果我們的損益表僅反映我們最近簽署的交易，那麼我們的調整後稅前利潤率將達到中高個位數。但由於我們業務中普遍存在多年期合同，我們的大部分收入仍然來自利潤率較低的、旋轉前的遺留簽約。因此，您目前無法在我們的總體業績中看到我們現在定價合同的較高利潤率的全部好處。但隨著我們的業務組合越來越多地轉向更多的分拆後合同，這種情況將會隨著時間而改變。事實上，明年，即我們的 2025 財年，我們大約一半的收入將來自分拆後簽署的合同。

Now we'll move up to 2/3 in fiscal 2026. And in the fiscal year ending in March 2027, more than 85% of our revenue will be from post-spin signings. And when most of our revenue reflects our post-spin efforts, we anticipate that our pretax margins will move into the high single digits. We're eager for the higher-margin flywheel that we started to turn to gain momentum.

現在，我們將在 2026 財年提高到 2/3。在 2027 年 3 月結束的財年中，我們超過 85% 的收入將來自分拆後的簽約。當我們的大部分收入反映了我們的分拆後的努力時，我們預計我們的稅前利潤率將進入高個位數。我們渴望更高利潤的飛輪，我們開始轉向它來獲得動力。

As Martin mentioned, we continue to progress on our 3As initiatives. Our momentum supports our continued expectation that our Alliances initiative will drive signings, revenue and over time, roughly $200 million in annual pretax income. Our Advanced Delivery initiative will drive cost savings equating over time to roughly $600 million in annual pretax income. And our Accounts initiative will drive annual pretax income of $800 million or more. We're also driving growth in Kyndryl Consult among our global practices, which is incremental to the benefits coming from our 3A initiatives, and we see opportunities to control expenses throughout our business, including through the workforce actions we've taken.

正如 Martin 提到的，我們繼續在 3A 計劃上取得進展。我們的動力支持我們持續的期望，即我們的聯盟計劃將推動簽約、收入，並隨著時間的推移，每年稅前收入約為 2 億美元。我們的高級交付計劃將隨著時間的推移節省成本，相當於每年稅前收入約 6 億美元。我們的賬戶計劃將帶來 8 億美元或更多的年稅前收入。我們還在全球實踐中推動 Kyndryl Consult 的增長，這是我們 3A 計劃帶來的收益的增量，並且我們看到了控制整個業務費用的機會，包括通過我們採取的勞動力行動。

We expect that these efforts over time will contribute roughly $400 million in annual pretax income. In total then, the magnitude of the earnings growth opportunity we're tackling is tremendous relative to our current margins. Progress on our 3As is a central source of value creation for Kyndryl.

我們預計這些努力隨著時間的推移將貢獻大約 4 億美元的年度稅前收入。總的來說，相對於我們當前的利潤率，我們正在應對的盈利增長機會的規模是巨大的。 3A 方面的進展是 Kyndryl 價值創造的核心來源。

With a strong first fiscal quarter to build on, we're raising our profit outlook for this fiscal year. We expect to expand our margins largely due to the 3A initiatives and actions we've taken to drive efficiency. We're raising our adjusted EBITDA margin outlook significantly to roughly 14%. This represents an increase of 240 basis points versus fiscal 2023. We now expect our adjusted pretax income to be at least $100 million, which implies a more than 190 basis point increase compared to last year. The actions we're taking and the progress we're making would have an even larger impact, but for the 125 basis points of margin headwinds that are associated with the $200 million IBM software cost increase we face.

憑藉強勁的第一財季業績，我們上調了本財年的利潤預期。我們預計利潤率的擴大主要歸功於我們為提高效率而採取的 3A 舉措和行動。我們將調整後的 EBITDA 利潤率預期大幅上調至 14% 左右。這意味著與 2023 財年相比增加了 240 個基點。我們現在預計調整後的稅前收入至少為 1 億美元，這意味著與去年相比增加了 190 個基點以上。我們正在採取的行動和正在取得的進展將會產生更大的影響，但我們面臨著與 IBM 軟件成本增加 2 億美元相關的 125 個基點的利潤逆風。

We expect our focus accounts to contribute at least $200 million more profit this year than last, and we expect our Advanced Delivery initiative to generate at least $200 million of incremental savings this year. Real estate consolidation, workforce rebalancing, growth in Kyndryl Consult, our pricing strategies and other actions are all contributing to our margin growth. Our outlook for revenue continues to be a year-over-year decline of 6% to 8% in constant currency, which translates to $15.8 billion to $16.2 billion based on recent exchange rates.

我們預計我們的重點客戶今年將比去年多貢獻至少 2 億美元的利潤，並且我們預計我們的提前交付計劃今年將帶來至少 2 億美元的增量節省。房地產整合、勞動力重新平衡、Kyndryl Consult 的增長、我們的定價策略和其他行動都有助於我們的利潤增長。我們的收入展望繼續是按固定匯率計算同比下降 6% 至 8%，根據最近的匯率換算為 158 億至 162 億美元。

To be clear, the year-over-year revenue decline we're projecting is primarily due to the soft backlog of fiscal 2024 revenue we were born with plus intentional near-term actions we are taking to transform our business. These changes typically involve removing selected low or negative margin scope from ongoing customer relationships. For the September quarter, on a year-over-year basis, we expect revenues to decline in the low to mid-single digits in constant currency and for adjusted pretax income to be slightly positive. This will represent a year-over-year improvement in adjusted pretax margin of at least 250 basis points.

需要明確的是，我們預計的同比收入下降主要是由於我們天生就有的 2024 財年收入積壓不足，加上我們為業務轉型而採取的有意的近期行動。這些變化通常涉及從持續的客戶關係中刪除選定的低利潤或負利潤範圍。對於九月季度，與去年同期相比，我們預計按固定匯率計算，收入將下降至中個位數，調整後的稅前收入將略有增長。這意味著調整後的稅前利潤率將同比提高至少 250 個基點。

As I mentioned, we expect adjusted free cash flow to be positive this fiscal year. We project roughly $750 million of net capital expenditures and about $850 million of depreciation expense. We also expect about $300 million of cash outlays for separation-related work, primarily systems migrations and for workforce rebalancing actions. This will be the last year in which we incur spin-related charges, so we expect our adjusted earnings to move closer to our reported GAAP earnings over time.

正如我所提到的，我們預計本財年調整後的自由現金流將為正值。我們預計淨資本支出約為 7.5 億美元，折舊費用約為 8.5 億美元。我們還預計約 3 億美元的現金支出用於與離職相關的工作，主要是系統遷移和勞動力重新平衡行動。這將是我們最後一年產生與旋轉相關的費用，因此我們預計調整後的收益將隨著時間的推移接近我們報告的 GAAP 收益。

In fact, next year, our principal adjustments should be only noncash stock-based comp and noncash intangibles amortization. As Martin highlighted, we remain committed to returning to revenue growth by calendar 2025 and over the medium term, delivering significant margin expansion and free cash flow growth. We have a solid game plan to drive our strategic progress, and this game plan starts with the steps we've already taken to expand our technology alliances, manage our costs and earn a return on all of our revenues.

事實上，明年我們的主要調整應該只是非現金股票補償和非現金無形資產攤銷。正如 Martin 所強調的，我們仍然致力於在 2025 年和中期內恢復收入增長，實現利潤率大幅擴張和自由現金流增長。我們有一個堅實的遊戲計劃來推動我們的戰略進展，這個遊戲計劃從我們已經採取的步驟開始，以擴大我們的技術聯盟，管理我們的成本並獲得我們所有收入的回報。

As we've discussed previously, our aggregate results obscure the fact that within Kyndryl, we started with a strong nearly $10 billion business, which we refer to as a blueprint for how we want to operate. This blueprint consists of accounts that represent about 60% of our revenue, generate average gross margins north of 20% and reflect our ability to get paid appropriately for the mission-critical services we provide.

正如我們之前所討論的，我們的總體結果掩蓋了這樣一個事實：在 Kyndryl 內部，我們以近 100 億美元的強勁業務開始，我們將其稱為我們希望如何運營的藍圖。該藍圖由約占我們收入 60% 的賬戶組成，平均毛利率超過 20%，並反映了我們為所提供的關鍵任務服務獲得適當報酬的能力。

Our other roughly $8 billion of focused accounts revenue was generating virtually no gross margin and after SG&A expenses was losing money. Our accounts initiative is all about the opportunity to make our focus accounts look more like the majority blueprint of our business by addressing elements of our customer relationships that generate substandard margins. Our $800 million target for the Accounts initiative relies on us closing only about half of the gross margin gap between our focus accounts and our blueprint accounts. That's why our Accounts initiative is a major priority and a major opportunity for us.

我們另外大約 80 億美元的重點客戶收入幾乎沒有產生任何毛利率，而且在 SG&A 支出之後還出現了虧損。我們的客戶計劃就是通過解決客戶關係中產生不合格利潤的因素，讓我們的重點客戶看起來更像我們業務的主要藍圖。我們的賬戶計劃 8 億美元的目標依賴於我們僅縮小重點賬戶和藍圖賬戶之間大約一半的毛利率差距。這就是為什麼我們的客戶計劃對我們來說是一個主要優先事項和一個重大機會。

We're making tremendous progress toward this opportunity, and that progress has accelerated over the last 6 months. In fiscal 2024, we expect to have remedied the margins on roughly 40% of our focused accounts revenue. And as we've said, most of the progress we're making comes in the form of significantly increasing our margins as part of our ongoing customer relationships, including situations where our margins were quite negative.

我們正在為這一機遇取得巨大進展，並且在過去 6 個月中進展速度加快。到 2024 財年，我們預計將彌補大約 40% 的重點客戶收入的利潤率。正如我們所說，我們取得的大部分進展都是通過大幅提高利潤率來實現的，作為我們持續的客戶關係的一部分，包括我們的利潤率相當負的情況。

Only rarely are we exiting a customer relationship, although that remains something we're willing to do if necessary. When we look out over the next few years, we expect more than 80% of our focus accounts to have been addressed by March 2027 consistent with our expectation that our Accounts initiative will ultimately contribute $800 million or more to our annual pretax earnings.

我們很少會退出客戶關係，儘管必要時我們仍然願意這樣做。展望未來幾年，我們預計到2027 年3 月，超過80% 的重點客戶將得到解決，這與我們的預期一致，即我們的客戶計劃最終將為我們的年度稅前收益貢獻8 億美元或更多。

In short, as I look at focused accounts, Advanced Delivery, our technology alliances and our actions to drive efficiency, I'm incredibly enthusiastic about our progress and our prospects. Martin, back to you.

簡而言之，當我關注重點客戶、高級交付、我們的技術聯盟以及我們提高效率的行動時，我對我們的進步和前景充滿熱情。馬丁，回到你身邊。

Thank you, David. Let me reiterate. Annual losses are behind us. We remain committed to delivering revenue growth in calendar 2025. And as a result, we will deliver the profit goals we've previously shared on the timelines we've previously shared. As an independent company, we're solidifying our position as a cost-effective, gold standard provider of essential IT services that combine multiple technologies, and we're executing fervently on the strategies and initiatives that will drive longer-term progress, future growth and stronger earnings in our business.

謝謝你，大衛。讓我重申一下。每年的損失已經成為過去。我們仍然致力於在 2025 年實現收入增長。因此，我們將按照之前共享的時間表實現之前共享的利潤目標。作為一家獨立公司，我們正在鞏固我們作為結合多種技術的基本 IT 服務的經濟高效、黃金標準提供商的地位，並且我們正在積極執行將推動長期進步和未來增長的戰略和計劃以及我們業務的強勁盈利。

With that, David and I would be pleased to take your questions.

大衛和我很樂意回答你的問題。

(Operator Instructions) And our first question coming from the line of Tien-Tsin Huang with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通黃天欽的電話。

Great. Obviously, great execution here on the margins. I want to ask on Kyndryl Consult, if you don't mind. It seems like it's still battling some of the macro pressure that some of your peers have seen on short-cycle work. So I'm curious what's driving differentiation in your view? And I know there's obviously a different starting point with Consult, but it does seem like it's a pretty consistent pressure point for the peer group. What are you seeing on the ground that's driving the difference?

偉大的。顯然，這裡的邊緣執行力很好。如果您不介意的話，我想通過 Kyndryl Consult 詢問。它似乎仍在與一些同行在短週期工作中看到的宏觀壓力作鬥爭。所以我很好奇您認為是什麼推動了差異化？我知道 Consult 顯然有一個不同的起點，但對於同行群體來說，這似乎是一個相當一致的壓力點。您認為造成這種差異的因素是什麼？

Yes. Thanks, Tien-Tsin. Look, Kyndryl Consult, as we've always said, sits in sort of a unique position in the marketplace given our knowledge of our customers' environments, given the role we play. And quite frankly, in any macro environment things that we do, cyber security, resiliency, helping customers use AI, data architecture required, et cetera, et cetera. All of these things are not as subject, if you will, to macro because our customer base needs to continue to move forward in the macro environment.

是的。謝謝田津。看，Kyndryl Consult，正如我們一直所說的，鑑於我們對客戶環境的了解以及我們所扮演的角色，Kyndryl Consult 在市場上處於獨特的地位。坦率地說，在任何宏觀環境中，我們所做的事情包括網絡安全、彈性、幫助客戶使用人工智能、所需的數據架構等等。如果你願意的話，所有這些事情都不是宏觀的主題，因為我們的客戶群需要在宏觀環境中繼續前進。

So Kyndryl Consult, which again, in our sort of unique spot in the marketplace, we expect -- we continue to expect to have a good long run of double-digit growth, including another good quarter of -- another good year of signings growth. And as we said in the prepared remarks, when we sort of -- when we turn this into a focus for us at Kyndryl, we said it would be 15% of our business. At that time, it was only 10% of our business. And we're now saying it's going to be 20% pretty quickly here. So I think it's -- to answer your question, I think it's the role we play in our customer environments, the capabilities that we're building around where our customers are still continuing to invest and the ecosystem in which we're part of, I'll say that this will see a good long-term tailwind for revenue and for signings growth for us.

因此，Kyndryl Consult 再次以我們在市場上的獨特地位，我們預計 - 我們繼續預計將有一個良好的長期兩位數增長，包括另一個良好的季度 - 又一個簽約增長的良好年份。正如我們在準備好的發言中所說，當我們將其轉變為 Kyndryl 的重點時，我們表示這將占我們業務的 15%。當時，這僅占我們業務的10%。我們現在說很快就會達到 20%。所以我認為，回答你的問題，我認為這是我們在客戶環境中扮演的角色，我們圍繞客戶仍在繼續投資的地方構建的能力以及我們所屬的生態系統，我想說，這將為我們的收入和簽約增長帶來長期良好的推動力。

Glad to hear it. Glad to hear it. Just my follow-up question is just on margins, on signings in general. I know Dave, it sounds like the margins you're getting on newer stuff is actually quite good or better. So similar question, I know a lot of peers, including others that have reported this morning, talked about pricing pressure, bill rate pressure, clients in the procurement office are trying to be more mindful on costs. So I was curious, same kind of question, what are you observing in terms of on pricing? Are you turning away some deals? Or is the workflow you're seeing up to your standards in terms of pricing?

聽到那個消息很開心。聽到那個消息很開心。我的後續問題只是關於邊緣，關於總體簽約。我知道戴夫，聽起來你在新產品上獲得的利潤實際上相當不錯或更好。所以類似的問題，我知道很多同行，包括今天早上報導的其他人，都談到了定價壓力、賬單利率壓力，採購辦公室的客戶正在努力更加關注成本。所以我很好奇，同樣的問題，你在定價方面觀察到了什麼？你會拒絕一些交易嗎？或者您看到的工作流程在定價方面是否符合您的標準？

Yes. Thanks, Tien-Tsin. I think we're in a similar position to what Martin was talking about with Consult, where we have opportunities that are unique to us to change the way we're pricing certain contracts, certain elements of what we do. And we really feel a need to be in a different spot with respect to margins and that informs how we approach pricing.

是的。謝謝田津。我認為我們的處境與 Martin 與 Consult 談論的情況類似，我們有獨特的機會來改變我們對某些合同、我們所做工作的某些要素的定價方式。我們確實覺得有必要在利潤方面處於不同的位置，這告訴我們如何定價。

And as a result, I think we've been able to repair focus accounts and move the pricing that we have there, in many cases, up to a market price, and that's how we're enhancing margins and able to get significant price increases on renewals because it's a movement up to market levels. The other thing that I think is really interesting is that when you look at our signings over the last year and the margins on which we've been signing business in the mid-20s for gross margins. That actually means that our gross profit on signings has been in the range of $3 billion during a period of time when our reported gross profit was about $2.6 billion, $2.7 billion.

因此，我認為我們已經能夠修復焦點客戶，並將我們在那裡的定價（在許多情況下）提高到市場價格，這就是我們提高利潤率並能夠大幅提價的方式續訂，因為這是向市場水平邁進的一步。我認為真正有趣的另一件事是，當你看看我們去年的簽約情況以及我們在 20 年代中期簽約業務的毛利率時。這實際上意味著，在我們報告的毛利潤約為 26 億美元、27 億美元的一段時間內，我們的簽約毛利潤一直在 30 億美元左右。

So what our pricing and our signings are doing for us is actually driving a gross profit book-to-bill of 1.15x. We're putting more gross profit into the hopper than we're reporting. And so I feel really good about the impact that our pricing initiatives and our pricing discipline are having on the way we're building our business.

因此，我們的定價和簽約實際上為我們帶來了 1.15 倍的毛利潤。我們投入料斗的毛利潤比我們報告的要多。因此，我對我們的定價舉措和定價紀律對我們業務建設方式產生的影響感到非常滿意。

And our next question coming from the line of James Friedman with Susquehanna.

我們的下一個問題來自詹姆斯·弗里德曼與薩斯奎哈納的對話。

Let me echo the congratulations. A lot of hard work here. I was wondering if you could double click on the Slide 19. I think, David, you commented on it in your prepared remarks, it's the one that breaks out the services and you had some comments on demand. But I was hoping you could elaborate on those. It might be a helpful perspective.

讓我也表達祝賀吧。這裡有很多艱苦的工作。我想知道您是否可以雙擊幻燈片 19。大衛，您在準備好的評論中對此進行了評論，這是對服務進行了細分的內容，並且您按需提出了一些評論。但我希望你能詳細說明這些。這可能是一個有用的觀點。

Sure. This is -- the services that we have, the practices that we go to market with are really important access for the way we operate and look to grow the business. And I think one of the -- a few of the things that are worth mentioning, first, cloud and cloud-related activity is a very significant part of what we do, representing about 1/3 of our revenue.

當然。這就是——我們擁有的服務、我們進入市場的實踐對於我們運營和尋求業務增長的方式來說非常重要。我認為其中一些值得一提的事情，首先，雲和雲相關活動是我們所做工作的非常重要的一部分，約占我們收入的 1/3。

And with the hyperscaler alliances we have, that's a significant growth opportunity for us. Security and resiliency is a really important area for us as well. We recently put out a release about some of the additional and new things we're doing in that space, and I see that continuing to be a growth opportunity. Applications, data and AI, particularly with everything that's going on with respect to generative AI is going to be a significant growth opportunity for us as well.

憑藉我們擁有的超大規模聯盟，這對我們來說是一個重要的增長機會。安全性和彈性對我們來說也是一個非常重要的領域。我們最近發布了一個關於我們在該領域所做的一些額外和新事情的版本，我認為這仍然是一個增長機會。應用程序、數據和人工智能，特別是與生成人工智能相關的一切，也將成為我們的重大增長機會。

And as Martin mentioned on the call, we expect to have an announcement -- a further announcement on that topic this week as well. One of my colleagues likes to point out that, that your AI is only as good as your data. And for us, data architecture, data availability, data protection are going to be a really important part of the discussions that we have with customers as we help them facilitate the use of more AI in their own businesses. So we see that as an opportunity.

正如馬丁在電話中提到的那樣，我們預計將在本週發布有關該主題的進一步公告。我的一位同事喜歡指出，人工智能的好壞取決於數據的好壞。對於我們來說，數據架構、數據可用性、數據保護將成為我們與客戶討論的一個非常重要的部分，因為我們幫助他們促進在自己的業務中使用更多的人工智能。所以我們認為這是一個機會。

Digital workplace continues to be a hot topic in the post-pandemic environment and the hybrid work environment of today. And then as we look at our core enterprise and zCloud business, it's a -- we're in a situation where hybrid environments are going to continue to be a really important dynamic for large enterprises. And as a result, we see that portion of our business and particularly mainframe modernization, as being an important source of revenues and signings for us going forward as well.

在大流行後的環境和當今的混合工作環境中，數字化工作場所仍然是一個熱門話題。然後，當我們審視我們的核心企業和 zCloud 業務時，我們發現混合環境將繼續成為大型企業的一個非常重要的動力。因此，我們認為我們的這部分業務，特別是大型機現代化，也成為我們未來收入和簽約的重要來源。

And one thing to add, Jamie, I think David did a nice job of sort of the pieces. When you step back and think about how we created and built Kyndryl, through discussions, a lot of discussions with our customers, just prior to spin as we were setting ourselves up, the practices that we're building really reflect the Venn diagram of 3 questions that we ask them. One is, where do we provide value to you today? The second one was where are you investing and where are you going to grow?

還有一件事要補充，傑米，我認為大衛在某些方面做得很好。當你退一步思考我們如何創建和構建 Kyndryl 時，通過討論，與我們的客戶進行大量討論，就在我們設置自己的旋轉之前，我們正在構建的實踐確實反映了 3 的維恩圖我們問他們的問題。一是，我們今天在哪里為您提供價值？第二個問題是你在哪裡投資以及你要在哪裡發展？

And then third, where do you give us brand permission to play? And so from our heritage, we obviously we're adding a lot of value already in the core enterprise and zCloud, we were adding a lot of value in digital workplace, et cetera. But the other 4 that we've created and that we're building our capabilities in, we're really the -- where are you investing and where do you give us brand permission. So there is a very strong customer demand element to the way we built and are creating -- or have created our practices that is driving demand for us.

第三，您給予我們品牌在哪些方面發揮作用的許可？因此，從我們的傳統來看，我們顯然已經在核心企業和 zCloud 中增加了很多價值，我們在數字工作場所等方面增加了很多價值。但我們已經創建的其他 4 個項目以及我們正在構建的能力，我們實際上是——您在哪裡投資以及您在哪裡給予我們品牌許可。因此，我們構建和正在創建的方式（或已經創建的實踐）中有一個非常強大的客戶需求元素，這推動了我們的需求。

And if I could just follow up, Martin, maybe to you. How would you characterize the macro? Because I would -- I think that most companies in service, at least the ones I'm responsible for, they step back so far year-to-date. When I look at your bookings, you're actually up through July, if I'm reading this right. So how would you characterize the macro? Or is it more like Kyndryl is making its own weather and it's not that relevant.

如果我可以跟進，馬丁，也許可以跟進你。您如何描述宏觀的特徵？因為我認為，大多數在職公司，至少是我負責的公司，今年迄今為止都在退步。當我查看你的預訂時，如果我沒看錯的話，你實際上已經到了七月了。那麼您如何描述宏觀的特徵呢？或者更像是 Kyndryl 正在創造自己的天氣，但它並不那麼相關。

Look, the macro -- we still operate within a macro environment is real to our customers, and therefore, it's real to us as well. However, having said that, we do sit in a rather unique position given the role we play in mission-critical. And maybe what you're seeing or I guess one of the ways I think about this is this is the difference between what Kyndryl does, which is mission-critical and what others may do, which maybe is more discretionary.

看，宏觀——我們仍然在宏觀環境中運營，對我們的客戶來說是真實的，因此，對我們來說也是真實的。然而，話雖如此，鑑於我們在關鍵任務中扮演的角色，我們確實處於一個相當獨特的位置。也許你所看到的或者我猜我對此的思考方式之一是 Kyndryl 所做的事情（任務關鍵型）和其他人可能做的事情（可能更具自由裁量權）之間的區別。

So no matter what the macro is, I would suggest there's not going to be any recession in cyber security, for instance. I would suggest that every company has figured out that resiliency is what matters in addition to cyber security as well. So every company is trying to figure out how to use AI.

因此，無論宏觀形勢如何，我都建議網絡安全等方面不會出現任何衰退。我建議每家公司都已經意識到，除了網絡安全之外，彈性也很重要。所以每個公司都在想辦法如何使用人工智能。

And as David said, well, that for us is a tailwind in our ability to help them with data architecture, data management, et cetera, et cetera, et cetera. So I do think that the macro matters. It certainly may reprioritize what some of our customers do. But the role we play in the world and our unique perspective in mission-critical, I think, suggests that we are not only insulated from it, but we can actually help them with some of their challenges as they try to get through whatever the macro is.

正如大衛所說，對我們來說，這是我們幫助他們進行數據架構、數據管理等方面的能力的順風車。所以我確實認為宏觀很重要。它當然可能會重新調整我們一些客戶所做的事情的優先順序。但我認為，我們在世界上扮演的角色以及我們在關鍵任務方面的獨特視角表明，我們不僅可以免受影響，而且實際上可以幫助他們應對一些挑戰，因為他們試圖克服任何宏觀挑戰。是。

Jamie. Operator, do we have another question?

傑米。接線員，我們還有其他問題嗎？

(Operator Instructions) And our next question coming from the line of Divya Goyal with Scotiabank.

（操作員說明）我們的下一個問題來自豐業銀行的 Divya Goyal。

I just wanted to get some more color on Kyndryl Consult. So Kyndryl Consult, as you mentioned, it's one of the higher-margin streams that you're seeing here. How do you expect to convert the advisory services into execution and how can we ascertain the longevity of these revenues there?

我只是想在 Kyndryl Consult 上獲得更多的信息。正如您所提到的，Kyndryl Consult 是您在這裡看到的利潤率較高的流媒體之一。您期望如何將諮詢服務轉化為執行？我們如何確定這些收入的壽命？

Thanks, Divya. With respect to Consult, the normal cadence for some of this work is that it gives rise to a discussion of what an enterprise needs to do to achieve a particular business objective or to address a particular challenge that it has. And as a result, it's almost natural for this to give rise -- for Consult assignment to give rise to sort of planning and analysis around an issue to implementation of change and then often a managed services tail associated with it.

謝謝，迪維亞。就諮詢而言，某些工作的正常節奏是引發對企業需要做什麼才能實現特定業務目標或解決其所面臨的特定挑戰的討論。因此，這幾乎是自然而然的——諮詢任務會圍繞一個問題進行某種規劃和分析，以實施變革，然後通常會產生與之相關的託管服務尾部。

So one of the things we really like about the Consult business, well, 2 other things we like, one is that itself, it tends to be a higher margin. The second, it's a creator of the annuity-type revenue streams that are the core part of our business. So it ends up being beneficial both for near term, generating revenues, generating margin but also creating value from a longer-term perspective as well. And that's really one of the key reasons why it's such an area of focus for us.

因此，我們真正喜歡諮詢業務的一件事是我們喜歡的另外兩件事，一是它本身，它往往具有更高的利潤。第二，它是年金型收入流的創造者，這是我們業務的核心部分。因此，它最終不僅有利於短期、創造收入、產生利潤，而且從長遠角度也創造了價值。這確實是我們如此關注這一領域的關鍵原因之一。

The third element that Martin mentioned earlier. He said it also changes the position that we're in, the role that we're playing with respect to our customers. It moves us up the technology stack. It has us interacting in some different ways with customers that allows us to add more value and be involved in more strategic conversations. So for all -- these are all reasons why Kyndryl Consult sits at the heart of some of our strategic work because it has so many attributes that are so attractive.

馬丁之前提到的第三個要素。他說，這也改變了我們所處的位置，以及我們在客戶面前所扮演的角色。它使我們在技術堆棧上不斷提升。它讓我們以不同的方式與客戶互動，使我們能夠增加更多價值並參與更具戰略性的對話。因此，對於所有人來說，這些都是 Kyndryl Consult 成為我們一些戰略工作核心的原因，因為它具有如此多的吸引力。

Yes. Just one thing I'd add, Divya, I think David said it well. But remember also that with Kyndryl Bridge, what Kyndryl Bridge is providing in terms of insights to our customers, given not only our own IP machine learning AI, but also the data pool we have. Kyndryl Bridge is also acting as a bit of a demand generator for us because it's offering customers insights that they didn't have before.

是的。我只想補充一件事，Divya，我認為 David 說得很好。但還要記住，通過 Kyndryl Bridge，Kyndryl Bridge 為我們的客戶提供了洞察，不僅考慮到我們自己的 IP 機器學習人工智能，還考慮到我們擁有的數據池。 Kyndryl Bridge 還充當了我們的需求生成器，因為它為客戶提供了他們以前沒有的見解。

And then obviously, we're helping them think through how might they address what Bridge is helping them understand, what Bridge is giving them visibility to and what Bridge is sort of helping them to optimize within their own system. So Kyndryl Bridge has proven not just to be a terrific way for us to deliver. And as we said earlier in the month, we have it in 500 accounts, already on its way to 1,000. And it's not only helping us with how we deliver and how we automate, it's giving us great insights, giving our customers great insights in how to run better as well. And that is also a good -- that's also a really strong demand pull for our Consult business.

顯然，我們正在幫助他們思考如何解決 Bridge 正在幫助他們理解的內容、Bridge 正在為他們提供可見性的內容以及 Bridge 正在幫助他們在自己的系統內進行優化的內容。因此事實證明，Kyndryl Bridge 不僅是我們交付的絕佳方式。正如我們在本月早些時候所說的，我們有 500 個帳戶，並且已經在向 1,000 個帳戶邁進。它不僅幫助我們如何交付和如何實現自動化，還為我們提供了深刻的見解，也為我們的客戶提供瞭如何更好地運行的深刻見解。這也是一件好事——這對我們的諮詢業務來說也是一個非常強勁的需求拉動。

You took my follow-up already. Maybe I'll just add in a quick question here. David, could you help us understand a little bit on the onetime cost and what's the best way for us to sort of model it on a go-forward basis?

你已經接受了我的後續行動。也許我會在這裡添加一個簡單的問題。大衛，您能否幫助我們了解一下一次性成本以及我們在未來的基礎上對其進行建模的最佳方法是什麼？

Sure. The 2 most significant costs that we have, call it, below the line this year are spin-related costs related to our systems migration and workforce rebalancing costs tied to the program that we implemented beginning in March and that's been playing out over the last several months to drive efficiency in our operations.

當然。我們今年的兩項最重要的成本是與我們的系統遷移相關的旋轉相關成本，以及與我們從3 月份開始實施的計劃相關的勞動力重新平衡成本，該計劃在過去的幾年中一直在發揮作用。幾個月來提高我們的運營效率。

With respect to the spin-related costs, those are going to be done this year. Our systems migrations will be done. We won't have any spin-related costs going forward. So that element disappears. And then with respect to workforce rebalancing, we're really viewing this as a onetime action that we've been implementing here. And so as I mentioned in the prepared remarks, we really see our adjusted results converging more toward our GAAP results over time since we know spin-related costs are going away. And we're not forecasting additional workforce rebalancing costs after the program we're currently executing.

至於與旋轉相關的成本，這些將在今年完成。我們的系統遷移將會完成。未來我們不會有任何與旋轉相關的成本。所以那個元素就消失了。然後，關於勞動力重新平衡，我們確實將其視為我們一直在這裡實施的一次性行動。正如我在準備好的發言中提到的，隨著時間的推移，我們確實看到調整後的結果更加接近我們的 GAAP 結果，因為我們知道與旋轉相關的成本正在消失。在我們目前正在執行的計劃之後，我們預計不會產生額外的勞動力重新平衡成本。

Operator, I believe that's our questions, correct?

接線員，我相信這就是我們的問題，對嗎？

Correct. I see no further questions in the queue at this time. I will now turn the call back over to Mr. Martin Schroeter for any closing remarks.

正確的。目前我在隊列中沒有看到其他問題。現在，我將把電話轉回給馬丁·施羅特先生，讓他發表結束語。

Thank you, operator, and thanks, everyone, for joining us today. Look, I hope you have a sense we have made significant progress in driving our earnings, which, obviously, as we talked a little bit about in our prepared remarks, those earnings will convert into free cash flow over the medium term as we come out of spin-related costs, et cetera, et cetera, et cetera.

謝謝運營商，也謝謝大家今天加入我們。聽著，我希望您能感覺到我們在推動盈利方面取得了重大進展，顯然，正如我們在準備好的發言中談到的那樣，這些盈利將在我們推出時在中期內轉化為自由現金流與旋轉相關的成本，等等，等等，等等。

So we feel really good about how we're positioned. Hopefully, you get a sense of the energy here at Kyndryl around turning around the business, and we're excited about the opportunity ahead. So thanks again for joining us, and we'll talk to you in 90 days.

所以我們對自己的定位感覺非常好。希望您能感受到 Kyndryl 扭轉業務的活力，我們對未來的機會感到興奮。再次感謝您加入我們，我們將在 90 天后與您聯繫。

Ladies and gentlemen, that does conclude our conference call for today. Thank you for your participation. You may now disconnect.

女士們先生們，我們今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。