BEIJING, April 25, 2024 /PRNewswire/ -- IBM (NYSE: IBM) today announced its first-quarter 2024 results.
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IBM 董事长兼首席执行官 Arvind Krishna"In 2023, we delivered solid revenue and free cash flow growth, reflecting the strength of our hybrid cloud and artificial intelligence (AI) strategy," he said. Today, we continue to translate our customers' interest and demand for enterprise-grade AI into business growth. The enterprise-grade data and AI platform Watsonx and other generative AI businesses are once again showing strong momentum, growing from the previous quarter to more than $1 billion since the launch of Watsonx in mid-2023. As a result, we continue to expect full-year results to be in line with our previous forecast of a mid-single-digit model of free cash flow of approximately $12 billion. To strengthen our leadership in hybrid cloud and AI technologies, we also announced our intent to acquire HashiCorp. Together, IBM and HashiCorp's portfolio will help customers manage the growing complexity of applications and infrastructure to create a comprehensive hybrid cloud platform for the AI era. "
Strategic acquisitionsIBM today announced its cash intent to acquire HashiCorp, Inc., a multi-cloud and infrastructure automation company, at $35 per share, reflected in the latter's $6.4 billion valuation. The acquisition aims to create a comprehensive, end-to-end hybrid cloud platform for the AI era. The transaction is expected to close by the end of 2024, subject to HashiCorp shareholder and regulatory approvals, as well as other customary closing conditions.
Highlights of the first quarter 2024 results- First-quarter revenue totaled $14.5 billion, up 1% and up 3% in constant currency
- Software revenue up 5% and 6% in constant currency
- Advisory revenue was flat year-over-year and up 2% in constant currency
- Infrastructure revenue decreased 1% and was flat year-over-year in constant currency terms
- Margin: GAAP gross margin increased 80 basis points to 53.5% and non-GAAP operating margin increased 100 basis points to 54.7%.
- Pretax revenue margin: GAAP gross margin was flat at 7.4% and non-GAAP operating margin was 11.5%, up 130 basis points.
- Cash flow: On a consolidated basis, IBM generated cash flow of $4.2 billion from operating activities in the first quarter of 2024, an increase of $400 million year-over-year. Free cash flow was $1.9 billion, an increase of $0.6 billion year-over-year. IBM generated cash flow of $14.3 billion and free cash flow of $11.8 billion from operating activities for the trailing 12 months.
"In the first quarter, we continued to focus on business fundamentals, deliver revenue and margin growth, continuously improve our margin profile, and optimize productivity and operating leverage," he said. These fundamentals, combined with strong cash flow, allow us to continue to invest organically and complete strategic acquisitions, such as the intent to acquire HashiCorp announced today. At the same time, we continue to reward our investors through dividends. "
First Quarter Segment Results- Software revenue, which includes hybrid cloud platforms and solutions, transaction processing platforms, increased 5.5% to $5.9 billion, or 5.9% in constant currency terms:
- Hybrid Cloud Platforms & Solutions revenue grew 6% and 7% in constant currency:
- Red Hat's revenue grows 9%
- Automation revenue up 13%
- Data & AI revenue up 1%
- Security revenue down 3%
- Transaction Processing revenue up 3% and 4% in constant currency
- Hybrid Cloud Platforms & Solutions revenue grew 6% and 7% in constant currency:
- Consulting revenue, which includes business transformation, technology consulting and application management, decreased 0.2% and increased 1.7% in constant currency to $5.2 billion:
- Business Transformation revenue up 1% and 3% in constant currency
- Technical consulting revenue up 1% and 3% in constant currency
- Application Management revenue decreased 3% and decreased 1% in constant currency
- Infrastructure (including hybrid cloud infrastructure, infrastructure support) revenue was $3.1 billion, down 0.7% and up 0.2% at constant currency
- Hybrid Cloud Infrastructure revenue grew 5% and 6% in constant currency:
- IBM Z revenue up 4%, up 5% in constant currency
- Distributed infrastructure revenue up 6% and 7% in constant currency
- Infrastructure support revenue decreased 8% and decreased 7% in constant currency terms
- Hybrid Cloud Infrastructure revenue grew 5% and 6% in constant currency:
- Global Financing (including Customer & Commercial Finance) revenue was $200 million, down 1.6% or 1.5% in constant currency.
On a combined basis, IBM generated cash flow from operating activities of $4.2 billion in the first quarter of 2024, an increase of $400 million year-over-year, and cash flow from operating activities excluding IBM accounts receivable financing was $2.3 billion. Free cash flow was $1.9 billion, an increase of $0.6 billion year-over-year. IBM generated cash flow of $14.3 billion and free cash flow of $11.8 billion from operating activities for the trailing 12 months. In the first quarter, the company returned $1.5 billion to shareholders in the form of dividends.
At the end of the first quarter, IBM had $19.3 billion in cash, including convertible bonds, an increase of $5.8 billion from the end of 2023.
Outlook for the full year 2024- Revenue growth: IBM expects mid-single-digit revenue growth in 2024 at constant exchange rates. Based on current exchange rates, the exchange rate is expected to have a 1.5 to 2 point impact on the company's revenue growth.
- Cash Flow: On a combined basis, the Company still expects full-year 2024 free cash flow of $12 billion.
IBM is the world's leading provider of hybrid cloud, artificial intelligence and enterprise services, helping customers in more than 175 countries and territories gain business insights, streamline business processes, reduce costs and gain a competitive advantage in their industries from the data they own. More than 4,000 government and enterprise entities in critical infrastructure sectors, including financial services, telecommunications, and healthcare, rely on IBM Hybrid Cloud Platform and Red Hat OpenShift for fast, efficient, and secure digital transformation. IBM's breakthrough innovations in artificial intelligence, quantum computing, industry cloud solutions and enterprise services provide our clients with open and flexible options. A long-standing commitment to corporate integrity, transparent governance, social responsibility, a culture of inclusion, and a spirit of service is the cornerstone of IBM's business. For more information, please visit:
IBM Media Contact:
Cui Shoufeng, Public Relations Department of IBM China
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