Kyndryl Holdings Inc (NYSE:KD) Q2 2025 Results Conference Call November 7, 2024 8:30 AM ET

Company Participants

Lori Chaitman - Global Head of Investor Relations
Martin Schroeter - Chairman & CEO
David Wyshner - Chief Financial Officer

Conference Call Participants

Divya Goyal - Scotia Bank
Jamie Friedman - Susquehanna
Tien-Tsin Huang - JPMorgan
Isaac Sellhausen - Oppenheimer

Operator

Good day, and thank you for standing by. Welcome to the Kyndryl's Second Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question and answer session. [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.

Lori Chaitman

Good morning, everyone, and welcome to Kyndryl's earnings call for the second quarter ended September 30, 24. 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 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 events, which are available on our website at investor.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 will 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 meet our customers' large and complex technology needs and to drive our growth strategy. David will then review our recent financial results and our fiscal 2025 earnings outlook. We delivered another strong quarter for signings, margins and cash flow generation. It was a record post-spin quarter for signings, which have grown 33% over the last 12 months to $16 billion.

We signed 10 deals of more than $100 million in the quarter, including our largest deal as an independent company a scope expansion that will generate more than $2 billion of revenue over the next 5 years. Clearly, our signing strength will power our return to sustained revenue growth. And as David will discuss, what's even more encouraging is that the projected pretax margins on our signings continue to be in the high single digits.