Roberts & Ryan Investments Inc. Corporate Access Series: Kyndryl Holdings (NYSE: KD)
We recently hosted an investor call with Kyndryl Holdings’ Lori Chaitman, Global Head of Investor Relations, and Josh Gordon, VP of Tax and Acting Treasurer.
If you’re not familiar with Kyndryl, it may be because they just celebrated their 1-year anniversary as an independent company. They were spun out of IBM and despite their (relatively low) market cap, they have 90,000 employees, a global presence, and recorded over $4B in revenue last quarter. Not exactly a startup company.
We heard a lot about “The 3 As” – Alliances, Advanced Delivery, and Accounts – detailed plan for growth. Here’s one piece of it:
They have some pretty good strategic Alliances (an understatement), maybe you’ve heard of some of these companies: Amazon Web Services (AWS), Nokia, VMware, SAP, Lenovo, Pure Storage, Cloudera, Dell Technologies, Cisco, NetApp, Oracle, Veritas Technologies LLC, Microsoft, Red Hat, Google Cloud, EY, Citrix, Teradata, Elastic, Five9. They’re operating on a large scale!
The biggest takeaway for me was the fact that 40% of their revenue, roughly $8B, currently yields 0% margin. That’s due to legacy agreements from when they were still part of IBM – and those contracts are coming up for renewal and being renegotiated. The point being, they’re expecting to see real improvement in those margins. For a company with a $2.415B market cap, that’s a big deal. Keep an eye on them.
“THANK YOU” to Lori and Josh, and to the entire Kyndryl team for supporting our mission as a Service-Disabled Veteran Owned business!!
Leadership: Martin Schroeter – CEO, Elly Keinan – Group President, Michael Bradshaw – CIO, David Wyshner – CFO, Antoine Shagoury – CTO, Harsh Chugh – COO