Kyndryl Holdings, Inc. (NYSE:KD) Q1 2025 Results Conference Call August 1, 2024 8:30 AM ET
Company Participants
Lori Chaitman - Global Head of Investor Relations
Martin Schroeter - Chairman and CEO
David Wyshner - Chief Financial Officer
Conference Call Participants
Tien-Tsin Huang - JPMorgan
Ian Zaffino - Oppenheimer & Co
David Togut - Evercore ISI
Divya Goyal - Scotiabank
Jamie Friedman - Susquehanna International Group
Operator
Good day, and thank you for standing by. Welcome to the Kyndryl Fiscal First Quarter 2025 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. Please go ahead.
Lori Chaitman
Good morning, everyone, and welcome to Kyndryl's earnings call for the first fiscal quarter ended June 30, 2024. 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. These forward-looking statements speak only to our expectations as of today. For more details on some of these risks, please see the Risk Factors section of our annual report on Form 10-K and for the year ended March 31, 2024.
In today's remarks, we'll also refer to certain non-GAAP financial metrics. Corresponding GAAP metrics and a reconciliation of non-GAAP metrics to GAAP metrics for historical periods are provided in the presentation materials for today's event which are available on our website at investors.kyndryl.com.
With me here are Kyndryl's Chairman and Chief Executive Officer, Martin Schroeter; and Kyndryl's Chief Financial Officer, David Wyshner. Following our prepared remarks, we'll hold a Q&A session. I'd now like to turn the call over to Martin. Martin?
Martin Schroeter
Thank you, Lori, and thanks to each of you for joining us. On today's call, I'll update you on our continued progress and execution to drive our growth strategy. David will then review our recent financial results and our increased fiscal 2025 earnings outlook. We delivered another strong quarter and are off to a fast start to fiscal 2025. Signings were up 14% in the quarter in constant currency, and they're up 7% over the last 12 months and the projected pretax margin on these signings is in the high single digits.
In the first quarter, pretax earnings were up significantly year-over-year, and we remain on track to deliver significant cash flow this year. Our performance was once again powered by strong growth in Kyndryl Consult and hyperscaler-related revenue as well as our ability to drive efficiency through automation and deliver innovation through Kyndryl Bridge, our AI-powered open integration platform. As we progress through the fiscal year, we'll continue to execute our growth strategy, drive substantial financial progress and focus on returning to the top line growth in the fourth quarter.