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HomeBusinessIBM RELEASES FIRST-QUARTER RESULTS

IBM RELEASES FIRST-QUARTER RESULTS

Accelerated Software revenue growth; Strong gross margin expansion and cash generation
Announces strategic acquisition of HashiCorp, Inc.

ARMONK, N.Y., April 24, 2024 /PRNewswire/ — IBM (NYSE: IBM) today announced first-quarter 2024 earnings results.

“We began the year with solid revenue and free cash flow growth, reflecting the strength of our hybrid cloud and AI strategy. We continue to capitalize on the excitement and demand for enterprise AI from our clients. Our book of business for watsonx and generative AI again showed strong momentum, growing quarter over quarter, and has now eclipsed one billion dollars since we launched watsonx in mid-2023. As a result, for the full year, we continue to expect revenue performance in line with our mid-single digit model and about $12 billion in free cash flow,” said Arvind Krishna, IBM chairman and chief executive officer. “To strengthen our position in today’s hybrid cloud and AI-driven technology landscape, we also announced our intent to acquire HashiCorp. IBM’s and HashiCorp’s combined portfolios will help clients manage growing application and infrastructure complexity and create a comprehensive hybrid cloud platform designed for the AI era.” 

Strategic Acquisition
IBM today announced its intent to acquire HashiCorp, Inc. for $35 per share in cash, representing an enterprise value of $6.4 billion. The acquisition will 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 approval by HashiCorp shareholders, regulatory approvals and other customary closing conditions.

First-Quarter Highlights

  • Revenue
    – Revenue of $14.5 billion, up 1 percent, up 3 percent at constant currency
    – Software revenue up 5 percent, up 6 percent at constant currency
    – Consulting revenue flat, up 2 percent at constant currency
    – Infrastructure revenue down 1 percent, flat at constant currency
  • Profit Margin
    – Gross Profit Margin: GAAP: 53.5 percent, up 80 basis points; Operating (Non-GAAP): 54.7 percent, up 100 basis points
    – Pre-Tax Income Margin: GAAP: 7.4 percent, flat; Operating (Non-GAAP): 11.5 percent, up 130 basis points
  • Cash Flow
    – Net cash from operating activities of $4.2 billion, up $0.4 billion; free cash flow of $1.9 billion, up $0.6 billion
    – Over the last twelve months, net cash from operating activities of $14.3 billion; free cash flow of $11.8 billion

FIRST QUARTER 2024 INCOME STATEMENT SUMMARY

 

Revenue

 

Gross

Profit

   

Gross

Profit

Margin

   

Pre-tax

Income

 

Pre-tax

Income

Margin

 

Net

Income (1)

 

Diluted

Earnings

Per Share

GAAP from
Continuing

Operations

$   14.5 B

   

$   7.7 B

   

53.5

%

 

$  1.1 B

   

7.4

%

 

$     1.6 B

   

$     1.69

 

Year/Year

1

%(2)

 

3

%

 

0.8

Pts

 

1

%

 

0.0

Pts

 

69

%

 

66

%

Operating

(Non-GAAP)

     

$   7.9 B

   

54.7

%

 

$  1.7 B

   

11.5

%

 

$     1.6 B

   

$     1.68

 

Year/Year

     

3

%

 

1.0

Pts

 

14

%

 

1.3

Pts

 

25

%

 

24

%

(1) 2024 includes a net benefit from discrete tax events.

(2) 3% at constant currency.

“In the quarter we continued to focus on the fundamentals of our business, growing revenue, expanding operating margins, improving profit performance and increasing productivity and operating leverage,” said James Kavanaugh, IBM senior vice president and chief financial officer. “These fundamentals, combined with our strong cash generation, position us to invest both organically and through strategic acquisitions like today’s announcement with HashiCorp. At the same time, we continue to return value to shareholders through our dividend.”

Segment Results for First Quarter

  • Software — revenues of $5.9 billion, up 5.5 percent, up 5.9 percent at constant currency:
    – Hybrid Platform & Solutions up 6 percent, up 7 percent at constant currency:
       — Red Hat up 9 percent
       — Automation up 13 percent
       — Data & AI up 1 percent
       — Security down 3 percent
    – Transaction Processing up 3 percent, up 4 percent at constant currency
  • Consulting — revenues of $5.2 billion, down 0.2 percent, up 1.7 percent at constant currency:
    – Business Transformation up 1 percent, up 3 percent at constant currency
    – Technology Consulting up 1 percent, up 3 percent at constant currency
    – Application Operations down 3 percent, down 1 percent at constant currency
  • Infrastructure — revenues of $3.1 billion, down 0.7 percent, up 0.2 percent at constant currency:
    – Hybrid Infrastructure up 5 percent, up 6 percent at constant currency
       — IBM Z up 4 percent, up 5 percent at constant currency
       — Distributed Infrastructure up 6 percent, up 7 percent at constant currency
    – Infrastructure Support down 8 percent, down 7 percent at constant currency
  • Financing — revenues of $0.2 billion, down 1.6 percent, down 1.5 percent at constant currency

Cash Flow and Balance Sheet
In the first quarter, the company generated net cash from operating activities of $4.2 billion, up $0.4 billion year to year. Net cash from operating activities excluding IBM Financing receivables was $2.3 billion. IBM’s free cash flow was $1.9 billion, up $0.6 billion year to year. Over the last twelve months, the company generated net cash from operating activities of $14.3 billion and free cash flow of $11.8 billion. The company returned $1.5 billion to shareholders in dividends in the first quarter.

IBM ended the first quarter with $19.3 billion of cash and marketable securities, up $5.8 billion from year-end 2023. Debt, including IBM Financing debt of $9.9 billion, totaled $59.5 billion, up $3.0 billion since the end of 2023.

Full-Year 2024 Expectations

  • Revenue: The company continues to expect constant currency revenue growth consistent with its mid-single digit model. At current foreign exchange rates, currency is expected to be about a one-and-a-half to two-point headwind to revenue growth
  • Free cash flow: The company continues to expect about $12 billion in free cash flow

Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the company’s current assumptions regarding future business and financial performance. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including, but not limited to, the following: a downturn in economic environment and client spending budgets; a failure of the company’s innovation initiatives; damage to the company’s reputation; risks from investing in growth opportunities; failure of the company’s intellectual property portfolio to prevent competitive offerings and the failure of the company to obtain necessary licenses; the company’s ability to successfully manage acquisitions, alliances and dispositions, including integration challenges, failure to achieve objectives, the assumption of liabilities and higher debt levels; fluctuations in financial results; impact of local legal, economic, political, health and other conditions; the company’s failure to meet growth and productivity objectives; ineffective internal controls; the company’s use of accounting estimates; impairment of the company’s goodwill or amortizable intangible assets; the company’s ability to attract and retain key employees and its reliance on critical skills; impacts of relationships with critical suppliers; product quality issues; impacts of business with government clients; reliance on third party distribution channels and ecosystems; cybersecurity and data privacy considerations; adverse effects related to climate change and environmental matters; tax matters; legal proceedings and investigatory risks; the company’s pension plans; currency fluctuations and customer financing risks; impact of changes in market liquidity conditions and customer credit risk on receivables; potential failure of the separation of Kyndryl Holdings, Inc. to qualify for tax-free treatment; risk factors related to IBM securities; and other risks, uncertainties and factors discussed in the company’s Form 10-Qs, Form 10-K and in the company’s other filings with the U.S. Securities and Exchange Commission or in materials incorporated therein by reference.

Statements in this communication regarding the strategic acquisition that are forward-looking may include projections as to closing date for the transaction, the extent of, and the time necessary to obtain, the regulatory approvals required for the transaction, the anticipated benefits of the transaction, the impact of the transaction on IBM’s business, the synergies from the transaction, and the combined company’s future operating results.

Any forward-looking statement in this release speaks only as of the date on which it is made. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements.

Presentation of Information in this Press Release
In an effort to provide investors with additional information regarding the company’s results as determined by generally accepted accounting principles (GAAP), the company has also disclosed in this press release the following non-GAAP information, which management believes provides useful information to investors:

IBM results —

  • adjusting for currency (i.e., at constant currency);
  • presenting operating (non-GAAP) earnings per share amounts and related income statement items;
  • free cash flow;
  • net cash from operating activities excluding IBM Financing receivables;
  • adjusted EBITDA.

The rationale for management’s use of these non-GAAP measures is included in Exhibit 99.2 in the Form 8-K that includes this press release and is being submitted today to the SEC.

For watsonx and generative AI, book of business includes Software transactional revenue, SaaS Annual Contract Value and Consulting signings.

Conference Call and Webcast
IBM’s regular quarterly earnings conference call is scheduled to begin at 5:00 p.m. ET, today. The Webcast may be accessed via a link at https://www.ibm.com/investor/events/earnings-1q24. Presentation charts will be available shortly before the Webcast.

Financial Results Below (certain amounts may not add due to use of rounded numbers; percentages presented are calculated from the underlying whole-dollar amounts).

Contact:       IBM
                      Sarah Meron, 347-891-1770
                      [email protected]

                      Tim Davidson, 914-844-7847
                      [email protected]

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; Dollars in millions except per share amounts)

 
 

Three Months Ended
March 31,

 
 

2024

   

2023 (1)

 

REVENUE BY SEGMENT

         

Software

$                   5,899

   

$                   5,591

 

Consulting

5,186

   

5,197

 

Infrastructure

3,076

   

3,098

 

Financing

193

   

196

 

Other

108

   

169

 

TOTAL REVENUE

14,462

   

14,252

 
           

GROSS PROFIT

7,742

   

7,509

 
           

GROSS PROFIT MARGIN

         

Software

82.4

%

 

82.6

%

Consulting

25.3

%

 

25.5

%

Infrastructure

54.2

%

 

51.8

%

Financing

48.5

%

 

43.9

%

           

TOTAL GROSS PROFIT MARGIN

53.5

%

 

52.7

%

           

EXPENSE AND OTHER INCOME

         

S,G&A

4,974

   

4,853

 

R,D&E

1,796

   

1,655

 

Intellectual property and custom development income

(216)

   

(180)

 

Other (income) and expense

(317)

   

(245)

 

Interest expense

432

   

367

 

TOTAL EXPENSE AND OTHER INCOME

6,669

   

6,451

 
           

INCOME FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

1,074

   

1,058

 

Pre-tax margin

7.4

%

 

7.4

%

Provision for/(Benefit from) income taxes (2)

(502)

   

124

 

Effective tax rate (2)

(46.7)

%

 

11.7

%

           

INCOME FROM CONTINUING OPERATIONS

$                   1,575

   

$                        934

 
           

DISCONTINUED OPERATIONS

         

Income/(loss) from discontinued operations, net of taxes

30

   

(7)

 
           

NET INCOME

$                   1,605

   

$                        927

 
           

EARNINGS/(LOSS) PER SHARE OF COMMON STOCK

         

Assuming Dilution

         

Continuing Operations

$                      1.69

   

$                      1.02

 

Discontinued Operations

$                      0.03

   

$                     (0.01)

 

TOTAL

$                      1.72

   

$                      1.01

 
           

Basic

         

Continuing Operations

$                      1.72

   

$                      1.03

 

Discontinued Operations

$                      0.03

   

$                     (0.01)

 

TOTAL

$                      1.75

   

$                      1.02

 
           

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (M’s)

         

Assuming Dilution

933.4

   

917.8

 

Basic

917.2

   

907.5

 

____________________

(1)  Recast to reflect segment changes.

(2)  2024 includes a net benefit from discrete tax events.

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

 

(Dollars in Millions)

 

At

March 31,
2024

 

At

December 31,
2023

ASSETS:

       

Current Assets:

       

Cash and cash equivalents

 

$                   14,603

 

$                   13,068

Restricted cash

 

162

 

21

Marketable securities

 

4,512

 

373

Notes and accounts receivable – trade, net

 

6,041

 

7,214

Short-term financing receivables, net

 

5,521

 

6,793

Other accounts receivable, net

 

760

 

640

Inventories

 

1,212

 

1,161

Deferred costs

 

1,047

 

998

Prepaid expenses and other current assets

 

2,804

 

2,639

Total Current Assets

 

36,663

 

32,908

         

Property, plant and equipment, net

 

5,594

 

5,501

Operating right-of-use assets, net

 

3,204

 

3,220

Long-term financing receivables, net

 

4,927

 

5,766

Prepaid pension assets

 

7,545

 

7,506

Deferred costs

 

810

 

842

Deferred taxes

 

6,465

 

6,656

Goodwill

 

59,534

 

60,178

Intangibles, net

 

10,750

 

11,036

Investments and sundry assets

 

1,678

 

1,626

Total Assets

 

$                  137,169

 

$                  135,241

         

LIABILITIES:

       

Current Liabilities:

       

Taxes

 

$                      1,710

 

$                      2,270

Short-term debt

 

5,471

 

6,426

Accounts payable

 

3,588

 

4,132

Deferred income

 

14,051

 

13,451

Operating lease liabilities

 

784

 

820

Other liabilities

 

6,794

 

7,022

Total Current Liabilities

 

32,397

 

34,122

         

Long-term debt

 

54,033

 

50,121

Retirement related obligations

 

10,421

 

10,808

Deferred income

 

3,488

 

3,533

Operating lease liabilities

 

2,583

 

2,568

Other liabilities

 

10,914

 

11,475

Total Liabilities

 

113,836

 

112,628

         

EQUITY:

       

IBM Stockholders’ Equity:

       

Common stock

 

60,145

 

59,643

Retained earnings

 

151,362

 

151,276

Treasury stock — at cost

 

(169,759)

 

(169,624)

Accumulated other comprehensive income/(loss)

 

(18,488)

 

(18,761)

Total IBM Stockholders’ Equity

 

23,261

 

22,533

         

Noncontrolling interests

 

72

 

80

Total Equity

 

23,333

 

22,613

         

Total Liabilities and Equity

 

$                137,169

 

$                135,241

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW ANALYSIS

(Unaudited)

 
   

Three Months Ended
March 31,

 

Trailing Twelve

Months Ended

March 31,

(Dollars in Millions)

 

2024

 

2023

 

2024

Net Cash from Operations per GAAP

 

$            4,168

 

$            3,774

 

$                      14,325

             

Less: change in IBM Financing receivables

 

1,897

 

1,977

 

1,152

Capital Expenditures, net

 

(361)

 

(457)

 

(1,393)

             

Free Cash Flow

 

1,910

 

1,340

 

11,780

             

Acquisitions

 

(82)

 

(22)

 

(5,142)

Divestitures

 

703

 

 

699

Dividends

 

(1,522)

 

(1,497)

 

(6,065)

Non-Financing Debt

 

5,244

 

9,692

 

1,098

Other (includes IBM Financing net receivables and debt)

 

(437)

 

(762)

 

(684)

             

Change in Cash, Cash Equivalents, Restricted Cash and Short-term Marketable

Securities

 

$            5,815

 

$            8,752

 

$                         1,686

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW

(Unaudited)

 
   

Three Months Ended
March 31,

 

(Dollars in Millions)

 

2024

 

2023

 

Net Income from Operations

 

$                     1,605

 

$                          927

 

Depreciation/Amortization of Intangibles (1)

 

1,132

 

1,074

 

Stock-based Compensation

 

320

 

268

 

Operating assets and liabilities/Other, net (2)

 

(785)

 

(473)

 

IBM Financing A/R

 

1,897

 

1,977

 

Net Cash Provided by Operating Activities

 

$                     4,168

 

$                      3,774

 
           

Capital Expenditures, net of payments & proceeds

 

(361)

 

(457)

 

Divestitures, net of cash transferred

 

703

 

 

Acquisitions, net of cash acquired

 

(82)

 

(22)

 

Marketable Securities / Other Investments, net

 

(4,469)

 

(7,481)

 

Net Cash Provided by/(Used in) Investing Activities

 

$                   (4,210)

 

$                    (7,960)

 
           

Debt, net of payments & proceeds

 

3,382

 

7,304

 

Dividends

 

(1,522)

 

(1,497)

 

Financing – Other

 

17

 

(99)

 

Net Cash Provided by/(Used in) Financing Activities

 

$                     1,877

 

$                     5,708

 
           

Effect of Exchange Rate changes on Cash

 

(159)

 

24

 

Net Change in Cash, Cash Equivalents and Restricted Cash

 

$                     1,676

 

$                     1,547

 

____________________

(1)  Includes operating lease right-of-use assets amortization.

(2)  Includes the reduction of tax reserves.

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
   

Three Months Ended

March 31,

 

(Dollars in Billions)

 

2024

 

2023

 

Yr/Yr

 

Net Income as reported (GAAP)

 

$           1.6

 

$           0.9

 

$           0.7

 

Less: Income/(loss) from discontinued operations, net of tax

 

0.0

 

0.0

 

0.0

 

Income from continuing operations

 

1.6

 

0.9

 

0.6

 

Provision for/(Benefit from) income taxes from continuing ops.

 

(0.5)

 

0.1

 

(0.6)

 

Pre-tax income from continuing operations (GAAP)

 

1.1

 

1.1

 

0.0

 

Non-operating adjustments (before tax)

             

Acquisition-related charges (1)

 

0.5

 

0.4

 

0.1

 

Non-operating retirement-related costs/(income)

 

0.1

 

0.0

 

0.1

 
               

Operating (non-GAAP) pre-tax income from continuing ops.

 

1.7

 

1.4

 

0.2

 
               

Net interest expense

 

0.2

 

0.2

 

0.0

 

Depreciation/Amortization of non-acquired intangible assets

 

0.7

 

0.7

 

0.0

 

Stock-based compensation

 

0.3

 

0.3

 

0.1

 

Workforce rebalancing charges

 

0.4

 

0.3

 

0.1

 

Corporate (gains) and charges (2)

 

(0.2)

 

0.0

 

(0.2)

 
               

Adjusted EBITDA

 

$           3.0

 

$           2.8

 

$           0.2

 

____________________

(1)   Primarily consists of amortization of acquired intangible assets. 

(2)   Corporate (gains) and charges primarily consists of unique corporate actions such as gains on divestitures. 

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

 
   

Three Months Ended March 31, 2024

 
                         

(Dollars in Millions)

 

Software

   

Consulting

   

Infrastructure

   

Financing

 

Revenue

 

$                       5,899

   

$                        5,186

   

$                        3,076

   

$                            193

 

Segment Profit

 

$                       1,500

   

$                           424

   

$                           311

   

$                              92

 

Segment Profit Margin

 

25.4

%

 

8.2

%

 

10.1

%

 

47.7

%

Change YTY Revenue

 

5.5

%

 

(0.2)

%

 

(0.7)

%

 

(1.6)

%

Change YTY Revenue – Constant Currency

 

5.9

%

 

1.7

%

 

0.2

%

 

(1.5)

%

 
   

Three Months Ended March 31, 2023 (1)

 
                         

(Dollars in Millions)

 

 Software

   

Consulting

   

Infrastructure

   

Financing

 

Revenue

 

$                       5,591

   

$                        5,197

   

$                        3,098

   

$                           196

 

Segment Profit

 

$                       1,379

   

$                           427

   

$                           307

   

$                           100

 

Segment Profit Margin

 

24.7

%

 

8.2

%

 

9.9

%

 

51.2

%

____________________

(1) Recast to reflect segment changes. 

     

INTERNATIONAL BUSINESS MACHINES CORPORATION

U.S. GAAP TO OPERATING (Non-GAAP) RESULTS RECONCILIATION

(Unaudited; Dollars in millions except per share amounts)

 
 

Three Months Ended March 31, 2024

 
 

Continuing Operations

 
 

GAAP

   

Acquisition-

Related

Adjustments (1)

   

Retirement-

Related

Adjustments (2)

   

Tax

Reform

Impacts (3)

   

Operating

(Non-

GAAP)

 

Gross Profit

$       7,742

   

$                         170

   

$                               —

   

$                       —

   

$           7,913

 

Gross Profit Margin

53.5

%

 

1.2

pts.

 

pts.

 

pts.

 

54.7

%

S,G&A

$       4,974

   

$                        (268)

   

$                               —

   

$                       —

   

$           4,706

 

Other (Income) & Expense

(317)

   

(50)

   

(96)

   

   

(463)

 

Total Expense & Other (Income)

6,669

   

(318)

   

(96)

   

   

6,255

 

Pre-tax Income from Continuing Operations

1,074

   

488

   

96

   

   

1,658

 

Pre-tax Income Margin from Continuing

Operations

7.4

%

 

3.4

pts.

 

0.7

pts.

 

pts.

 

11.5

%

Provision for/(Benefit from) Income Taxes (4)

$         (502)

   

$                         142

   

$                                5

   

$                    448

   

$                 94

 

Effective Tax Rate

(46.7)

%

 

22.3

pts.

 

3.0

pts.

 

27.0

pts.

 

5.6

%

Income from Continuing Operations

$       1,575

   

$                         346

   

$                              91

   

$                  (448)

   

$            1,564

 

Income Margin from Continuing Operations

10.9

%

 

2.4

pts.

 

0.6

pts.

 

(3.1)

pts.

 

10.8

%

Diluted Earnings Per Share: Continuing

Operations

$         1.69

   

$                        0.37

   

$                           0.10

   

$                 (0.48)

   

$              1.68

 
 
 

Three Months Ended March 31, 2023

 
 

Continuing Operations

 
 

GAAP

   

Acquisition-

Related

Adjustments (1)

   

Retirement-

Related

Adjustments (2)

   

Tax

Reform

Impacts

   

Operating

(Non-

GAAP)

 

Gross Profit

$        7,509

   

$                          148

   

$                               —

   

$                —

   

$          7,658

 

Gross Profit Margin

52.7

%

 

1.0

pts.

 

pts.

 

pts.

 

53.7

%

S,G&A

$        4,853

   

$                         (246)

   

$                               —

   

$                —

   

$          4,607

 

Other (Income) & Expense

(245)

   

(2)

   

5

   

   

(242)

 

Total Expense & Other (Income)

6,451

   

(247)

   

5

   

   

6,209

 

Pre-tax Income from Continuing Operations

1,058

   

396

   

(5)

   

   

1,449

 

Pre-tax Income Margin from Continuing

Operations

7.4

%

 

2.8

pts.

 

0.0

pts.

 

pts.

 

10.2

%

Provision for/(Benefit from) Income Taxes (4)

$           124

   

$                            91

   

$                             (10)

   

$                (5)

   

$              200

 

Effective Tax Rate

11.7

%

 

3.1

pts.

 

(0.7)

pts.

 

(0.3)

pts.

 

13.8

%

Income from Continuing Operations

$           934

   

$                          305

   

$                                5

   

$                 5

   

$           1,249

 

Income Margin from Continuing Operations

6.6

%

 

2.1

pts.

 

pts.

 

pts.

 

8.8

%

Diluted Earnings Per Share: Continuing
Operations

$          1.02

   

$                         0.33

   

$                           0.01

   

$            0.01

   

$             1.36

 

____________________

(1)    Includes amortization of purchased intangible assets, in process R&D, transaction costs, applicable restructuring and related expenses, tax

        charges related to acquisition integration and pre-closing charges, such as financing costs. 2024 also includes a loss of $50 million on foreign

        exchange call option contracts related to the company’s planned acquisition of StreamSets and webMethods from Software AG.

(2)    Includes amortization of prior service costs, interest cost, expected return on plan assets, amortized actuarial gains/losses, the impacts of any plan

        curtailments/settlements and pension insolvency costs and other costs.

(3)    2024 includes a net benefit from discrete tax events.

(4)    Tax impact on operating (non-GAAP) pre-tax income from continuing operations is calculated under the same accounting principles applied to the

         As Reported pre-tax income under ASC 740, which employs an annual effective tax rate method to the results.

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
   

Three Months

Ended
March 31,

 

(Dollars in Billions)

 

2024

 

2023

 

Net Cash Provided by Operating Activities

 

$           4.2

 

$           3.8

 
           

Add:

         

Net interest expense

 

0.2

 

0.2

 

Provision for/(Benefit from) income taxes from continuing operations

 

(0.5)

 

0.1

 
           

Less change in:

         

Financing receivables

 

1.9

 

2.0

 

Other assets and liabilities/Other, net (1)

 

(1.0)

 

(0.7)

 
           

Adjusted EBITDA

 

$           3.0

 

$           2.8

 

____________________

(1)    Other assets and liabilities/Other, net mainly consists of Operating assets and liabilities/Other, net in the Cash flow chart, workforce

         rebalancing charges, non-operating impacts and corporate (gains) and charges. 

SOURCE IBM

Originally published at https://www.prnewswire.com/news-releases/ibm-releases-first-quarter-results-302126651.html
Images courtesy of https://pixabay.com

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