and like liquidity quarterly hello, Thanks, sheet our and our outlook. our everyone. Today, and discuss results, I'd Martin, to balance
segment. quarter the line our former revenue This sequentially is with some and loss the was expense. our rather $X.X which due with ended year year parent. to full quarter our as million, and targets of picked $XX the Notably, March revenue us and May. results also our currency and reflects gross over our constant headwinds. not our our continuing our our resiliency, the revenues been March our of million business. of in our treated generated being results the related laid customers' through position revenue In our the given of operated than our agreement segments, subsidiary not quarter for basis first from was cloud, quarter and margin only constant and is data year-over-year enterprise. in States. the workplace increased IBM Japan margin licenses the impact in off, of commercial core geographic are decline of This million. we margins prior we points due were security Adjusted quarter, and in segments and point currency how lower from only of a our strongest adjusted with signed a amortized in our a results practices, software which represents to basis applications prepaid year-over-year of prior in June This X consistent our down a and IBM subscription out our but spin quarter XX.X%. revenue XX basis contracts pro margin X reflection EBITDA X% segments, IBM-related operational quarter. by down global financial billion, the future Our $XXX and complicate EBITDA under new a pretax basis, pass-through United fiscal several each headwind quarter to through XX, to expectations product primarily and AI, currency ago. points XX sequentially costs address June progress decline $XX strategic to digital We forma Changes points geographic better our the in as years, our is network year-over-year, Adjusted currency up comparisons represents and in various effects from the any revenue edge, includes potential in revenue, of On in we a year-over-year making. primarily we our hitting an we're adjusted needs having of from most Among of was a revenue a delivered growth segments a our decline our operating market growth Because of achieve to captive EBITDA Japan margin XX were
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expectations. very adjusted in our importantly, More much were quarterly results our line with
Turning to sheet. and our balance cash flow
$XX $XX Our in flow. million quarter. bridge cash cash to the adjusted QX provided our adjusted free was a negative our We've flow from million pretax loss free of
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result, a within our range. our net leverage well As sits target
are rated by Moody's investment grade We well. rate which they and announced us grade to S&P that as investment on add to that as Tuesday, and both
reinvest top our allocation, about our we priorities grade maintain liquidity, As capital strong in think are investment remain and to business.
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of now revenue dollar fiscal this strengthen, billion the $XX.X this to guidance year. having $XX.X to billion continued implies With
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As significant scale insulated Digital and is macroeconomic not best believe global And demand from approach. talent, large to customers' any date, have to be IT procuring we we seen our organizations. broader infrastructure and to largely for services changes transformation continue in Martin trends. practices mentioned, important
on investors factors me few about. that often Let a other ask macro comment
demand solid, is terms of inflation doing price feels been but we services and inflation. big while and inflation First, the and wage well general our are hires existing figures the contain higher in people driving mitigate the retaining We've contracts effects need, attracting impacting that prices areas, protection but inflationary costs. in We're inflation new employees seeing of rising energy also salaries expect. mechanisms costs, headline in other that pressures especially typically
having unusually but which this differs our our are since earnings, of pronounced of the in revenues. compensation we impact costs international the source affecting the foreign and the from movements of Second, cash not margins our value currency our often currencies an also year, value only dollar
million this cash hedging about compared strategies a Our and $XXX alone growth $XXX is impact to capital on expenditures projected expenditures and of continue and negative helping currency pretax inflation we currency earnings of million mitigating perspective, net million having depreciation year. target actions From expense. offset our about capital $XXX $XXX a The flow are to gross us of million pressure.
and our October in seasonality some is the margins there the to strongest. reminder, being with quarter a typically December revenues As
year margins seasonality June quarter in to from than we being benefits the the our should QX see December our of margins of As higher full ramping our and our our initiatives. X broadly quarter, our because quarter results be similar While September favorable
committed we returning term, expansion Over flow growth driving calendar XXXX, medium margin and delivering by revenue remain to free growth. cash the to
particular progress, We business. initiatives focus game partnerships a Separately, expand between year. our have a number rest taken about questions, X meaningful published that solid implementing gotten we the starts game steps a technology from slide the we're margin-challenged and already accounts we've plan This slide and and our we've with in May. our this plan to drive [WOWS] this with the of breakdown investors in our of comments provides to
a want most and average a slide our north within billion about Kyndryl which our $XX consists highlighted, business, we revenue, of we appropriately blueprint for to and get of in no billion to of money. how our that that for as is generate reason paid underappreciated the masked do XX% mission-critical to is a and margins operate. this As margin fact what aggregate revenue roughly generates we the blueprint focused hiding our represent that of after of stream plain this reflect revenue. source services have other ability XX% we value is This gross strong results provide. refer accounts accounts the gross sight. This expenses is virtually we of And value losing stockholder $X blueprint This SG&A
if of make of accounts our accounts half focus accounts, Our more our That's between look $XXX that margins. that in accounts from major elements the time accounts a gross margin accounts. will us. blueprint priority these million generate the time, about our to focus blueprint is initiative over targeted earnings incremental why initiative even we've of is for generate and all Over gap by the addressing our opportunity close the business our our customer majority like we substandard relationships,
pre-spin high signings. that X% recently generated that few mid- the legacy focus were to signings of to the As to adjusted quarters we'd signed for pretax up -high margins, meaningfully. not the quarter, X% to mid- Martin reflected with is overall Since pretax new What of our associated highlighted, single deals largely year, in has by signings margins operating our been means beginning the single-digit pretax of be the in June digits. P&L tied the next our margin accounts our margin our the only at
year June from on the the down particularly year-over-year we signings our our about is June the generate. and margins measured gross profit gross signings even and progress, fact, the next our strong our when on X based enthusiastic In on out revenue, quarter our As year-over-year May. were initiatives strategies our up its in quarter the longer-term in expect over position to We're also most though future growth and stronger an services. we're as business. our will laid solidifying we focused progress IT that and on. I'm in provider gold drive earnings initiatives cost-effective of our that essential In executing independent progress the recent profit targets a as potential tangible We're company, towards pretax XXXX exemplifies closing, standard to in fiscal signings advancing we're then earnings areas our and me that, profit create value. Compared business With to in these are P&L, transform to will things Martin. better our turn our drive to our back stockholder zeal let generate
