Mission Statement, Vision, & Core Values (2024) of Kyndryl Holdings, Inc. (KD).

An Overview of Kyndryl Holdings, Inc. (KD)

General Summary of Kyndryl Holdings, Inc.

Kyndryl Holdings, Inc. (KD) was established as a wholly-owned subsidiary of IBM in September 2021, specifically to manage the infrastructure services unit of IBM’s Global Technology Services segment. The company officially separated from IBM on November 3, 2021, through a tax-free spin-off, marking its transition to an independent, publicly-traded entity. Kyndryl is recognized as one of the leading IT infrastructure services providers globally, offering a wide range of services including cloud services, data center management, network management, and security services.

As of 2024, Kyndryl's sales primarily stem from its core services, with total revenue recorded at $3.739 billion for the three months ending June 30, 2024, representing an 11% decline compared to $4.193 billion during the same period in 2023. The decrease in revenue is attributed to the company's strategic decision to reduce low-margin components of its customer relationships and unfavorable currency effects.

Company's Financial Performance in the Latest Financial Reports

In the latest financial report for the three months ended June 30, 2024, Kyndryl reported a net income of $11 million, a significant improvement from a net loss of $141 million in the same quarter of the previous year. This recovery was driven by lower depreciation expenses due to a change in the useful life of IT equipment, reduced workforce rebalancing charges, and improved operating efficiencies.

The company's financial performance is summarized in the table below:

For the three months ended June 30, 2024, revenue from the United States segment was $986 million, down 15% year-over-year, while revenue from Japan was $569 million, reflecting a 7% decline. The Principal Markets segment generated $1.315 billion, down 5%, and Strategic Markets brought in $869 million, down 15%.

Introduction to Kyndryl as a Leader in the Industry

Kyndryl Holdings, Inc. stands out as a leader in the IT infrastructure services industry, leveraging its extensive experience from its origins within IBM. The company serves a diverse array of clients across various sectors, underpinned by a robust portfolio of services that include cloud transformation, data management, and cybersecurity. Kyndryl's commitment to driving operational efficiencies and enhancing client outcomes has positioned it favorably in a competitive market. As of June 30, 2024, Kyndryl's remaining performance obligations (RPO) totaled $31.6 billion, indicating a solid pipeline of future revenue. To further understand Kyndryl's success and role in the industry, more in-depth insights are provided below.

Mission Statement of Kyndryl Holdings, Inc. (KD)

Mission Statement of Kyndryl Holdings, Inc. (KD)

Kyndryl Holdings, Inc. operates with a clear mission statement that emphasizes its commitment to delivering high-quality IT infrastructure services. The mission statement serves as a guiding principle for the company's long-term goals and strategic decisions. It reflects Kyndryl's dedication to innovation, customer success, and operational excellence.

Core Components of Kyndryl's Mission Statement

1. Commitment to Innovation

Kyndryl's mission underscores the importance of innovation in its service offerings. The company aims to leverage advanced technologies and solutions to meet the evolving needs of its clients. In the fiscal year 2024, Kyndryl reported a revenue of $3.7 billion, which reflects its ongoing efforts to innovate and enhance service delivery, despite an 11% decrease compared to the previous year due to strategic changes in customer relationships .

2. Customer-Centric Approach

The mission statement highlights Kyndryl's focus on customer success. The company strives to build strong relationships with its clients by understanding their unique challenges and providing tailored solutions. For instance, during the three months ended June 30, 2024, Kyndryl recorded total signings of $3.1 billion, representing an 11% increase year-over-year, which indicates its effectiveness in attracting new customers .

3. Operational Excellence

Kyndryl emphasizes operational excellence as a core component of its mission. The company aims to optimize its operations to deliver high-quality services efficiently. In the latest financial report, Kyndryl achieved an adjusted EBITDA of $556 million for the three-month period ending June 30, 2024, reflecting a focus on improving operational efficiencies and cost management .

Kyndryl's mission statement not only defines its purpose but also aligns with its strategic goals to foster innovation, prioritize customer success, and achieve operational excellence. The latest financial data supports the company's commitment to these core components as it navigates the competitive landscape of IT infrastructure services.

Vision Statement of Kyndryl Holdings, Inc. (KD)

Vision Statement Overview

Kyndryl Holdings, Inc. (KD) aims to be the world’s leading IT infrastructure services provider, empowering organizations to achieve their business goals through innovative technology solutions and services. As of 2024, Kyndryl's vision emphasizes adaptability, client-centric solutions, and operational excellence.

Commitment to Innovation

Kyndryl's vision includes a strong commitment to innovation. The company focuses on leveraging advanced technologies such as cloud computing, artificial intelligence, and automation to enhance service delivery. In fiscal year 2024, Kyndryl reported an increase in investment in innovation initiatives, totaling approximately $200 million, aimed at developing next-generation IT solutions.

Client-Centric Approach

The vision statement reflects Kyndryl's dedication to a client-centric approach, aiming to build long-lasting partnerships. In the three months ended June 30, 2024, Kyndryl's total signings reached $3.1 billion, an 11% increase from the prior year, highlighting their success in attracting new clients and expanding existing relationships.

Operational Efficiency and Sustainability

Kyndryl is committed to operational efficiency and sustainability, aligning with global trends toward eco-friendly practices. The company anticipates that its workforce rebalancing and site-rationalization initiatives will result in cost savings exceeding $200 million in fiscal year 2026. This focus on efficiency is evident as Kyndryl aims to reduce its carbon footprint and enhance resource utilization.

Global Reach and Market Leadership

Kyndryl's vision includes maintaining its position as a global leader in IT infrastructure services. As of June 30, 2024, Kyndryl reported total assets of $10.2 billion and total liabilities of $9.1 billion, reflecting a solid financial foundation to support its global operations. The company operates across various markets, with significant revenue contributions from the United States ($986 million) and Japan ($569 million).

Commitment to Workforce Development

As part of its vision, Kyndryl emphasizes the importance of workforce development. During the three months ended June 30, 2024, the company recorded workforce rebalancing charges of $36 million, reflecting its strategy to enhance workforce skills and capabilities. This commitment is crucial for fostering a culture of continuous improvement and adaptability.

Conclusion

Kyndryl's vision statement for 2024 encapsulates its strategic focus on innovation, client relationships, operational efficiency, global market leadership, and workforce development. The company's financial performance metrics further illustrate its robust position in the IT infrastructure services sector.

Core Values of Kyndryl Holdings, Inc. (KD)

Core Value: Customer Commitment

Kyndryl Holdings, Inc. places a strong emphasis on customer commitment, ensuring that client needs are prioritized in all aspects of service delivery. This commitment is critical as it drives customer satisfaction and retention.

For the three months ended June 30, 2024, Kyndryl reported a total revenue of $3.739 billion, which represents an 11% decline compared to the previous year. However, the company is actively working to enhance customer relationships by reducing low-margin revenues, which reflects a strategic focus on quality rather than quantity in service offerings.

In line with this value, Kyndryl has initiated various programs aimed at improving service delivery and client engagement, including the development of tailored solutions for its diverse client base across different sectors.

Core Value: Integrity

Integrity is a cornerstone of Kyndryl’s operations, guiding the company’s interactions with clients, partners, and employees. This value is essential in maintaining trust and credibility in the marketplace.

Kyndryl's commitment to integrity is reflected in its financial practices. The company reported a net income of $11 million for the quarter, a significant recovery from a loss of $141 million in the same quarter of the previous year, demonstrating transparency and accountability in its financial reporting.

Furthermore, Kyndryl has implemented rigorous compliance and governance frameworks to ensure that all business practices adhere to ethical standards. This commitment is vital for sustaining long-term relationships with stakeholders.

Core Value: Innovation

Innovation is pivotal to Kyndryl’s strategy, enabling the company to stay ahead in the rapidly evolving technology landscape. Embracing new technologies and methodologies allows Kyndryl to offer cutting-edge solutions to its clients.

Kyndryl's investment in innovation is exemplified by the acquisition of Skytap, a specialized workload services provider, for approximately $46 million. This acquisition enhances Kyndryl's hybrid cloud services portfolio, positioning the company to better meet the demands of modern enterprises.

Additionally, Kyndryl has reported total signings of $3.1 billion in the quarter, indicating a robust pipeline driven by innovative service offerings.

Core Value: Collaboration

Collaboration is fundamental to Kyndryl's approach, fostering teamwork both internally and externally. This value is essential for leveraging diverse perspectives and expertise to achieve common goals.

In the latest quarter, Kyndryl saw a 60% increase in adjusted EBITDA from its Principal Markets segment, highlighting the effectiveness of collaborative efforts in enhancing operational efficiencies.

The company actively promotes collaboration through cross-functional teams that work together to deliver comprehensive solutions tailored to client needs, reinforcing the importance of this core value in driving success.

Core Value: Accountability

Kyndryl emphasizes accountability as a key value, ensuring that all employees take responsibility for their actions and contributions towards the company's objectives.

The company’s efforts to improve operational efficiency have led to a reduction in workforce rebalancing charges from 1.4% to 1.0% of revenue, indicating a proactive approach to managing costs while maintaining accountability for financial performance.

Kyndryl's leadership fosters a culture of accountability, where employees are empowered to make decisions and are held responsible for the outcomes, which is critical for achieving strategic goals.

Core Value: Sustainability

Sustainability is increasingly becoming a vital value for Kyndryl, aligning with global efforts to promote environmental responsibility within the IT services sector.

Kyndryl has committed to reducing its overall cost structure while enhancing operational efficiency, projecting potential savings exceeding $200 million in fiscal year 2026 through sustainable practices.

These initiatives not only support Kyndryl's financial health but also contribute to broader sustainability goals, as the company seeks to minimize its environmental footprint while delivering value to clients.