Kyndryl reports optimistic annual figures for the 2024 financial year. The former IBM company expects to finally be able to generate profits by 2025.

Kyndryl announced its financial results for the previous quarter on May 7th. As Kyndryl closes its fiscal year on March 31, it also announces its full-year results. Kyndryl closed the past quarter with a net loss of $45 million; on an annual basis, the net balance is in the red at $340 million.

That would cause panic in many companies, but CEO Martin Schröder is very satisfied with the quarterly and annual figures. Kyndryl is seeing a drastic decline in its losses. Last year, the company recorded a net loss of 737 million euros over the same period. The only downer for Kyndryl is that annual sales fell six percent.

Profitable by 2025

Schröder is optimistic that it won’t be long before his company can be in the black. This year he expects to be able to turn sales back into positive territory and Schröder sets March 2025 as the deadline for the first positive quarter. This will also be urgently needed: no organization in the world can be in deficit forever.

“Fiscal year 2024 was a year of acceleration and success for Kyndryl. At the start of our new fiscal year, we completed the transition from transformation to growth. “We are now focusing on an earlier return to sales growth, namely in the fourth quarter of this financial year,” said Schröder in his statement on the annual results.

Turbulent start

Kyndryl was sold by IBM in 2021 and represents IBM’s former infrastructure business Big blue. The company got off to a difficult start, having to convince investors with activities that IBM would rather lose than win. The consulting business is the most fruitful area for Kyndryl, recording fifteen percent sales growth there.

Investors appear to be gradually accepting Kyndryl. The CEO’s positive outlook caused the stock to rise by six percent and within a year the price rose by 45 percent. A first positive net result would be an important milestone for Kyndryl and would provide stability that the young company has not yet experienced.