Technology

IBM RELEASES THIRD-QUARTER RESULTS

Published

3 months ago

October 23, 2024

Accelerated Software revenue growth, expanded gross profit margin, and strong free cash flow

ARMONK, N.Y., Oct. 23, 2024 /PRNewswire/ — IBM (NYSE: IBM) today announced third-quarter 2024 earnings results.

“Our third-quarter performance was led by double-digit growth in Software, including a re-acceleration in Red Hat. We continue to see great momentum in AI as our models are trusted, fit-for-purpose, and lower cost, with performance leadership. Our generative AI book of business now stands at more than $3 billion, up more than $1 billion quarter to quarter,” said Arvind Krishna, IBM chairman, president and chief executive officer. “Heading into the final quarter of 2024, we expect fourth-quarter constant currency revenue growth to be consistent with the third quarter, with continued strength in Software. We are confident in our ability to deliver more than $12 billion in free cash flow for the year, driven by continued expansion of our operating margins.”

Third-Quarter Highlights

Revenue
– Revenue of $15.0 billion, up 1 percent, up 2 percent at constant currency
– Software revenue up 10 percent
– Consulting revenue flat
– Infrastructure revenue down 7 percent
Profit
– Gross Profit Margin: GAAP: 56.3 percent, up 190 basis points; Operating (Non-GAAP):
57.5 percent, up 210 basis points
Cash Flow
– Year to date, net cash from operating activities of $9.1 billion; free cash flow of $6.6 billion

THIRD-QUARTER 2024 INCOME STATEMENT SUMMARY

GAAP results include impact of one-time, non-cash pension settlement charge (1)

Revenue

Gross

Profit

Gross

Profit

Margin

Pre-tax

Income/

(Loss) (1)

Pre-tax

Income

Margin (1)

Net

Income/

(Loss) (1)

Diluted

Earnings/

(Loss) Per

Share (1)

GAAP from

Continuing

Operations

$ 15.0 B

$ 8.4 B

56.3

$ (0.8) B

(5.4)

$ (0.3) B

$ (0.34)

Year/Year

%(2)

1.9

Pts

-18.1

Pts

Operating

(Non-GAAP)

$ 8.6 B

57.5

$ 2.5 B

16.6

$ 2.2 B

$ 2.30

Year/Year

2.1

Pts

1.0

Pts

(1) 2024 GAAP results include the impact of a one-time, non-cash, pension settlement charge of $2.7 billion ($2.0 billion net of tax) related

to the transfer of a portion of the company’s U.S. defined benefit pension obligations and related plan assets to a third-party insurer,

announced in September 2024.

(2) 2% at constant currency.

“Our investments are paying off in Software as we’ve repositioned our portfolio in recent years. In the third quarter, Software delivered broad-based growth and now represents nearly 45 percent of our total revenue. Our ongoing focus on product mix, coupled with our productivity initiatives enables us to continue to drive operating leverage in our underlying profit performance,” said James Kavanaugh, IBM senior vice president and chief financial officer. “With our strong cash generation, we are well-positioned to continue investing for growth while returning value to shareholders through dividends.”

Segment Results for Third Quarter

Software — revenues of $6.5 billion, up 9.7 percent, up 9.6 percent at constant currency:
– Hybrid Platform & Solutions up 10 percent
— Red Hat up 14 percent
— Automation up 13 percent
— Data & AI up 5 percent
— Security down 1 percent
– Transaction Processing up 9 percent

Consulting — revenues of $5.2 billion, down 0.5 percent, down 0.2 percent at constant currency:
– Business Transformation up 2 percent
– Technology Consulting down 4 percent
– Application Operations down 1 percent

Infrastructure — revenues of $3.0 billion, down 7.0 percent, down 6.7 percent at constant currency:
– Hybrid Infrastructure down 9 percent
— IBM Z down 19 percent
— Distributed Infrastructure down 3 percent
– Infrastructure Support down 4 percent, down 3 percent at constant currency

Financing — revenues of $0.2 billion, down 2.5 percent, down 1.3 percent at constant currency

Cash Flow and Balance Sheet

In the third quarter, the company generated net cash from operating activities of $2.9 billion, down $0.2 billion year to year. IBM’s free cash flow was $2.1 billion, up $0.4 billion year to year. The company returned $1.5 billion to shareholders in dividends in the third quarter.

For the first nine months of the year, the company generated net cash from operating activities of $9.1 billion, down $0.4 billion year to year. IBM’s free cash flow was $6.6 billion, up $1.5 billion year to year.

IBM ended the third quarter with $13.7 billion of cash, restricted cash and marketable securities, up $0.3 billion from year-end 2023. Debt, including IBM Financing debt of $10.4 billion, totaled $56.6 billion, flat year to date.

Expectations

Revenue: The company expects fourth-quarter constant currency revenue growth consistent with the third quarter. At current foreign exchange rates, currency is expected to be about a half-point headwind to revenue growth in the quarter
Free cash flow: The company continues to expect more than $12 billion in free cash flow for the full year

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

For generative AI, book of business includes Software transactional revenue, SaaS Annual Contract Value and Consulting signings. The generative AI book of business is further defined within Exhibit 99.2 in the Form 8-K that includes 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;
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.

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-3q24. 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
sarah.meron@ibm.com

Tim Davidson, 914-844-7847
tfdavids@us.ibm.com

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; Dollars in millions except per share amounts)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2024

2023 (1)

2024

2023 (1)

REVENUE BY SEGMENT

Software

$ 6,524

$ 5,947

$ 19,162

$ 17,832

Consulting

5,152

5,178

15,517

15,601

Infrastructure

3,042

3,272

9,764

9,988

Financing

181

186

543

566

Other

170

214

491

TOTAL REVENUE

14,968

14,752

45,199

44,479

GROSS PROFIT

8,420

8,023

25,112

24,033

GROSS PROFIT MARGIN

Software

83.2

82.3

83.1

82.3

Consulting

28.4

27.6

26.7

26.3

Infrastructure

55.0

53.7

55.3

54.0

Financing

47.2

49.7

48.2

47.5

TOTAL GROSS PROFIT MARGIN

56.3

54.4

55.6

54.0

EXPENSE AND OTHER INCOME

S,G&A

4,911

4,458

14,823

14,212

R,D&E

1,876

1,685

5,512

5,027

Intellectual property and custom development income

(238)

(190)

(696)

(618)

Other (income) and expense

2,244

(215)

1,694

(721)

Interest expense

429

412

1,288

1,202

TOTAL EXPENSE AND OTHER INCOME

9,222

6,150

22,621

19,102

INCOME/(LOSS) FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

(802)

1,873

2,491

4,931

Pre-tax margin

(5.4)

12.7

5.5

11.1

Provision for/(Benefit from) income taxes

(485)

159

(597)

702

Effective tax rate

60.4

8.5

(24.0)

14.2

INCOME/(LOSS) FROM CONTINUING OPERATIONS

$ (317)

$ 1,714

$ 3,088

$ 4,229

DISCONTINUED OPERATIONS

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

(13)

(10)

(15)

NET INCOME/(LOSS) (2)

$ (330)

$ 1,704

$ 3,109

$ 4,214

EARNINGS/(LOSS) PER SHARE OF COMMON STOCK (2)

Assuming Dilution

Continuing Operations

$ (0.34)

$ 1.86

$ 3.30

$ 4.59

Discontinued Operations

$ (0.01)

$ 0.02

$ (0.02)

TOTAL

$ (0.36)

$ 1.84

$ 3.32

$ 4.58

Basic

Continuing Operations

$ (0.34)

$ 1.88

$ 3.36

$ 4.65

Discontinued Operations

$ (0.01)

$ 0.02

$ (0.02)

TOTAL

$ (0.36)

$ 1.87

$ 3.38

$ 4.63

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES

OUTSTANDING (M’s)

Assuming Dilution

923.6

923.7

935.4

920.3

Basic

923.6

912.8

920.3

910.1

____________________

(1) Recast to reflect January 2024 segment changes.

(2) 2024 includes the impact of a one-time, non-cash, pension settlement charge of $2.7 billion ($2.0 billion net of tax).

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

(Dollars in Millions)

September 30,
2024

December 31,
2023

ASSETS:

Current Assets:

Cash and cash equivalents

$ 13,197

$ 13,068

Restricted cash

Marketable securities

505

373

Notes and accounts receivable – trade, net

5,390

7,214

Short-term financing receivables, net

5,765

6,793

Other accounts receivable, net

928

640

Inventories

1,367

1,161

Deferred costs

966

998

Prepaid expenses and other current assets

2,408

2,639

Total Current Assets

30,543

32,908

Property, plant and equipment, net

5,614

5,501

Operating right-of-use assets, net

3,355

3,220

Long-term financing receivables, net

4,931

5,766

Prepaid pension assets

7,975

7,506

Deferred costs

788

842

Deferred taxes

6,943

6,656

Goodwill

61,092

60,178

Intangibles, net

11,090

11,036

Investments and sundry assets

2,009

1,626

Total Assets

$ 134,339

$ 135,241

LIABILITIES:

Current Liabilities:

Taxes

$ 1,584

$ 2,270

Short-term debt

3,599

6,426

Accounts payable

3,274

4,132

Deferred income

12,882

13,451

Operating lease liabilities

790

820

Other liabilities

6,725

7,022

Total Current Liabilities

28,853

34,122

Long-term debt

52,980

50,121

Retirement-related obligations

10,366

10,808

Deferred income

3,666

3,533

Operating lease liabilities

2,757

2,568

Other liabilities

11,186

11,475

Total Liabilities

109,809

112,628

EQUITY:

IBM Stockholders’ Equity:

Common stock

61,013

59,643

Retained earnings

149,789

151,276

Treasury stock – at cost

(169,935)

(169,624)

Accumulated other comprehensive income/(loss)

(16,418)

(18,761)

Total IBM Stockholders’ Equity

24,448

22,533

Noncontrolling interests

Total Equity

24,530

22,613

Total Liabilities and Equity

$ 134,339

$ 135,241

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW ANALYSIS

(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

(Dollars in Millions)

2024

2023

2024

2023

Net Cash from Operations per GAAP

$ 2,881

$ 3,055

$ 9,115

$ 9,468

Less: change in IBM Financing receivables

873

1,092

1,824

3,119

Capital Expenditures, net

(282)

(705)

(1,226)

Free Cash Flow

2,064

1,682

6,586

5,123

Acquisitions

(2,513)

(4,589)

(2,748)

(4,945)

Divestitures

(10)

705

(4)

Dividends

(1,542)

(1,515)

(4,601)

(4,522)

Non-Financing Debt

(383)

(942)

693

7,572

Other (includes IBM Financing net receivables and debt)

131

(379)

(1,068)

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

Marketable Securities

$ (2,241)

$ (5,333)

$ 257

$ 2,156

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW

(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

(Dollars in Millions)

2024

2023

2024

2023

Net Income/(loss) from Operations

$ (330)

$ 1,704

$ 3,109

$ 4,214

Pension Settlement Charge

2,725

–

2,725

–

Depreciation/Amortization of Intangibles (1)

1,268

1,093

3,555

3,243

Stock-based Compensation

330

286

966

843

Operating assets and liabilities/Other, net (2)

(1,984)

(1,119)

(3,063)

(1,952)

IBM Financing A/R

873

1,092

1,824

3,119

Net Cash Provided by Operating Activities

$ 2,881

$ 3,055

$ 9,115

$ 9,468

Capital Expenditures, net of payments & proceeds (3)

(282)

(705)

(1,226)

Divestitures, net of cash transferred

(10)

705

(4)

Acquisitions, net of cash acquired

(2,513)

(4,589)

(2,748)

(4,945)

Marketable Securities / Other Investments, net

869

2,927

(810)

(3,732)

Net Cash Provided by/(Used in) Investing Activities

$ (1,587)

$ (1,953)

$ (3,558)

$ (9,906)

Debt, net of payments & proceeds

(1,259)

(1,550)

(777)

4,619

Dividends

(1,542)

(1,515)

(4,601)

(4,522)

Financing – Other

(67)

(26)

(252)

Net Cash Provided by/(Used in) Financing Activities

$ (2,766)

$ (3,132)

$ (5,403)

$ (154)

Effect of Exchange Rate changes on Cash

207

(119)

(29)

(120)

Net Change in Cash, Cash Equivalents and Restricted Cash

$ (1,264)

$ (2,149)

$ 125

$ (713)

____________________

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

(2) Includes a $0.7 billion tax effect associated with the one-time, non-cash pension settlement charge in the third-quarter 2024.

(3) 2024 includes proceeds of $0.4 billion from the sale of certain QRadar SaaS assets.

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

(Dollars in Billions)

2024

2023

Yr/Yr

2024

2023

Yr/Yr

Net Income/(Loss) as reported (GAAP) (1)

$ (0.3)

$ 1.7

$ (2.0)

$ 3.1

$ 4.2

$ (1.1)

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

0.0

Income/(Loss) from continuing operations

(0.3)

1.7

(2.0)

3.1

4.2

(1.1)

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

(0.5)

0.2

(0.6)

0.7

(1.3)

Pre-tax income/(loss) from continuing operations (GAAP)

(0.8)

1.9

(2.7)

2.5

4.9

(2.4)

Non-operating adjustments (before tax)

Acquisition-related charges (2)

0.5

0.4

0.1

1.5

1.2

0.2

Non-operating retirement-related costs/(income) (1)

2.8

0.0

2.8

3.0

0.0

3.0

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

2.5

2.3

0.2

6.9

6.1

0.8

Net interest expense

0.3

0.0

0.7

0.0

Depreciation/Amortization of non-acquired intangible assets

0.7

0.0

2.1

2.0

0.1

Stock-based compensation

0.3

0.0

1.0

0.8

0.1

Workforce rebalancing charges

0.3

0.0

0.3

0.7

0.4

0.3

Corporate (gains) and charges (3)

(0.4)

0.0

(0.3)

(0.6)

0.0

(0.6)

Adjusted EBITDA

$ 3.8

$ 3.5

$ 0.2

$ 10.8

$ 10.1

$ 0.8

____________________

(1) 2024 includes the impact of a one-time, non-cash pension settlement charge of $2.7 billion ($2.0 billion net of tax).

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

(3) Corporate (gains) and charges primarily consists of unique corporate actions such as gains on divestitures and asset sales (e.g., certain QRadar SaaS assets).

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

Three Months Ended September 30, 2024

(Dollars in Millions)

Software

Consulting

Infrastructure

Financing

Revenue

$ 6,524

$ 5,152

$ 3,042

$ 181

Segment Profit

$ 1,969

$ 559

$ 422

$ 86

Segment Profit Margin

30.2

10.9

13.9

47.5

Change YTY Revenue

9.7

(0.5)

(7.0)

(2.5)

Change YTY Revenue – Constant Currency

9.6

(0.2)

(6.7)

(1.3)

Three Months Ended September 30, 2023 (1)

(Dollars in Millions)

Software

Consulting

Infrastructure

Financing

Revenue

$ 5,947

$ 5,178

$ 3,272

$ 186

Segment Profit

$ 1,722

$ 566

$ 490

$ 91

Segment Profit Margin

29.0

10.9

15.0

49.2

__________________

(1) Recast to reflect January 2024 segment changes.

Nine Months Ended September 30, 2024

(Dollars in Millions)

Software

Consulting

Infrastructure

Financing

Revenue

$ 19,162

$ 15,517

$ 9,764

$ 543

Segment Profit

$ 5,582

$ 1,447

$ 1,387

$ 254

Segment Profit Margin

29.1

9.3

14.2

46.9

Change YTY Revenue

7.5

(0.5)

(2.3)

(4.1)

Change YTY Revenue – Constant Currency

8.0

1.1

(1.2)

(3.1)

Nine Months Ended September 30, 2023 (1)

(Dollars in Millions)

Software

Consulting

Infrastructure

Financing

Revenue

$ 17,832

$ 15,601

$ 9,988

$ 566

Segment Profit

$ 4,850

$ 1,476

$ 1,529

$ 256

Segment Profit Margin

27.2

9.5

15.3

45.2

____________________

(1) Recast to reflect January 2024 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 September 30, 2024

Continuing Operations

GAAP

Acquisition-

Adjustments (1)

Retirement-

Adjustments (2)

Tax

Reform

Impacts

Operating

(Non-GAAP)

Gross Profit

$ 8,420

$ 192

$ —

$ 8,612

Gross Profit Margin

56.3

1.3

pts

—

pts

—

pts

57.5

S,G&A

$ 4,911

$ (300)

$ —

$ 4,611

Other (Income) & Expense

2,244

—

(2,797)

—

(553)

Total Expense & Other (Income)

9,222

(300)

(2,797)

—

6,125

Pre-tax Income/(Loss) from Continuing Operations

(802)

492

2,797

—

2,487

Pre-tax Income Margin from Continuing Operations

(5.4)

3.3

pts

18.7

pts

—

pts

16.6

Provision for/(Benefit from) Income Taxes (3)

$ (485)

$ 119

$ 700

$ (2)

$ 332

Effective Tax Rate

60.4

(7.2)

pts

(39.8)

pts

(0.1)

pts

13.4

Income/(Loss) from Continuing Operations

$ (317)

$ 373

$ 2,097

$ 2

$ 2,155

Income Margin from Continuing Operations

(2.1)

2.5

pts

14.0

pts

0.0

pts

14.4

Diluted Earnings/(Loss) Per Share: Continuing

Operations (4)

$ (0.34)

$ 0.40

$ 2.27

$ 0.00

$ 2.30

Three Months Ended September 30, 2023

Continuing Operations

GAAP

Acquisition-

Adjustments (1)

Retirement-

Adjustments (2)

Tax

Reform

Impacts

Operating

(Non-GAAP)

Gross Profit

$ 8,023

$ 162

$ —

$ 8,185

Gross Profit Margin

54.4

1.1

pts

—

pts

—

pts

55.5

S,G&A

$ 4,458

$ (277)

$ —

$ 4,181

Other (Income) & Expense

(215)

—

(203)

Total Expense & Other (Income)

6,150

(277)

—

5,885

Pre-tax Income/(Loss) from Continuing Operations

1,873

438

(12)

—

2,299

Pre-tax Income Margin from Continuing Operations

12.7

3.0

pts

(0.1)

pts

—

pts

15.6

Provision for/(Benefit from) Income Taxes (3)

$ 159

$ 99

$ (14)

$ 24

$ 268

Effective Tax Rate

8.5

2.7

pts

(0.5)

pts

1.0

pts

11.7

Income/(Loss) from Continuing Operations

$ 1,714

$ 340

$ 1

$ (24)

$ 2,031

Income Margin from Continuing Operations

11.6

2.3

pts

0.0

pts

(0.2)

pts

13.8

Diluted Earnings/(Loss) Per Share: Continuing

Operations

$ 1.86

$ 0.37

$ 0.00

$ (0.03)

$ 2.20

____________________

(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. 2024 also includes the impact of a one-time, non-cash, pre-tax pension settlement charge of $2.7 billion ($2.0 billion net of tax).

(3) 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.

(4) Operating (non-GAAP) earnings per share was calculated using 938.4 million shares, which includes 14.9 million dilutive potential shares under our stock-based compensation plans and contingently issuable shares. Due to the GAAP net loss for the three months ended September 30, 2024, these dilutive potential shares were excluded from the GAAP loss per share calculation as the effect would have been antidilutive. The difference in share count resulted in an additional $(0.04) reconciling item.

INTERNATIONAL BUSINESS MACHINES CORPORATION

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

(Unaudited; Dollars in millions except per share amounts)

Nine Months Ended September 30, 2024

Continuing Operations

GAAP

Acquisition-

Adjustments (1)

Retirement-

Adjustments (2)

Tax

Reform

Impacts (3)

Operating

(Non-GAAP)

Gross Profit

$ 25,112

$ 533

$ —

$ 25,645

Gross Profit Margin

55.6

1.2

pts

—

pts

—

pts

56.7

S,G&A

$ 14,823

$ (854)

$ —

$ 13,969

Other (Income) & Expense

1,694

(68)

(2,991)

—

(1,364)

Total Expense & Other (Income)

22,621

(922)

(2,991)

—

18,709

Pre-tax Income/(Loss) from Continuing Operations

2,491

1,454

2,991

—

6,936

Pre-tax Income Margin from Continuing Operations

5.5

3.2

pts

6.6

pts

—

pts

15.3

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

$ (597)

$ 374

$ 731

$ 434

$ 942

Effective Tax Rate

(24.0)

10.4

pts

20.9

pts

6.3

pts

13.6

Income/(Loss) from Continuing Operations

$ 3,088

$ 1,081

$ 2,259

$ (434)

$ 5,994

Income Margin from Continuing Operations

6.8

2.4

pts

5.0

pts

(1.0)

pts

13.3

Diluted Earnings/(Loss) Per Share: Continuing

Operations

$ 3.30

$ 1.16

$ 2.42

$ (0.46)

$ 6.41

Nine Months Ended September 30, 2023

Continuing Operations

GAAP

Acquisition-

Adjustments (1)

Retirement-

Adjustments (2)

Tax

Reform

Impacts

Operating

(Non-GAAP)

Gross Profit

$ 24,033

$ 460

$ —

$ 24,492

Gross Profit Margin

54.0

1.0

pts

—

pts

—

pts

55.1

S,G&A

$ 14,212

$ (768)

$ —

$ 13,444

Other (Income) & Expense

(721)

(2)

—

(707)

Total Expense & Other (Income)

19,102

(770)

—

18,348

Pre-tax Income from Continuing Operations

4,931

1,229

(16)

—

6,144

Pre-tax Income Margin from Continuing

Operations

11.1

2.8

pts

0.0

pts

—

pts

13.8

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

$ 702

$ 277

$ (27)

$ (91)

$ 861

Effective Tax Rate

14.2

1.7

pts

(0.4)

pts

(1.5)

pts

14.0

Income from Continuing Operations

$ 4,229

$ 953

$ 11

$ 91

$ 5,283

Income Margin from Continuing Operations

9.5

2.1

pts

0.0

pts

0.2

pts

11.9

Diluted Earnings Per Share: Continuing

Operations

$ 4.59

$ 1.04

$ 0.01

$ 0.10

$ 5.74

____________________

(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 $68 million on foreign exchange derivative contracts entered into by the company prior to the acquisition of StreamSets and webMethods from Software AG.

(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
September 30,

Nine Months Ended
September 30,

(Dollars in Billions)

2024

2023

2024

2023

Net Cash Provided by Operating Activities

$ 2.9

$ 3.1

$ 9.1

$ 9.5

Add:

Net interest expense

0.3

0.7

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

(0.5)

0.2

(0.6)

0.7

Less change in:

Financing receivables

0.9

1.1

1.8

3.1

Other assets and liabilities/other, net (1)

(2.0)

(1.2)

(3.5)

(2.3)

Adjusted EBITDA

$ 3.8

$ 3.5

$ 10.8

$ 10.1

____________________

(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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/ibm-releases-third-quarter-results-302285120.html

SOURCE IBM

Technology

TVCMALL Leads Wholesale Innovation for Simplified Online Retail Business Success at CES 2025

Published

3 hours ago

January 11, 2025

LAS VEGAS, Jan. 11, 2025 /PRNewswire/ — CES 2025, one of the largest tech events globally, concluded with over 4,000 exhibitors showcasing breakthroughs in AI, digital health, and mobility. TVCMALL, a leading one-stop B2B wholesaler, made its second consecutive appearance at the event, delivering comprehensive solutions and introducing a new brand, LEMONDA. With a focus on eco-friendly products and AI-driven accessories, TVCMALL is redefining the wholesale experience for global entrepreneurs.

Revolutionizing Wholesale with AI and Sustainability
TVCMALL is a one-stop platform offering over 1 million SKUs, including mobile accessories, smart tech, and consumer electronics. At CES 2025, the company presented a range of cutting-edge products, from biodegradable phone cases to AI-driven gadgets like Meta Quest 3 headbands, wireless chargers, power banks, and gaming accessories. As part of its innovative approach, TVCMALL launched LEMONDA, a lifestyle brand focused on sustainability. Featuring lightweight, corrosion-resistant resin smartwatch straps and eco-friendly packaging, LEMONDA aligns with the growing demand for green solutions in tech, further cementing TVCMALL’s commitment to a sustainable future.

Comprehensive Solutions for Retailers
TVCMALL simplifies sourcing with an extensive catalog and AI-powered ordering systems, allowing businesses to streamline purchasing and make data-driven decisions. With no minimum order quantity (MOQ) on most products and a flexible dropshipping service, TVCMALL supports businesses with customized solutions tailored to their needs. Whether through personalized packaging or exclusive designs, TVCMALL helps entrepreneurs enhance their brand visibility and stay competitive. The platform also integrates with Amazon and custom APIs for a seamless experience.

Commitment to Quality and Global Growth
TVCMALL is dedicated to helping entrepreneurs succeed in both established and emerging markets. By offering competitive prices, fast delivery, and in-depth market insights, TVCMALL empowers businesses to expand into regions like Europe, Southeast Asia, and Brazil. The company works with trusted partners like Dux Ducis, CaseMe, and Nillkin, ensuring the reliability and quality of its offerings. Additionally, TVCMALL provides value-added services like product photography, factory inspections, and certifications (CE, RoHS), assisting clients with smooth market entry.

“At TVCMALL, our vision is to build a more generous and thriving world,” said Leo Chen, Founder and Chairman of TVCMALL. “CES 2025 is not just an exhibition for us; it’s an opportunity to collaborate, innovate, and inspire a new era of retail and technology.”

For more information, please visit www.tvcmall.com or contact sales@tvcmall.com.

Photo – https://mma.prnewswire.com/media/2593486/TVCMALL_booth_layout_at_CES_2025.jpg

View original content:https://www.prnewswire.co.uk/news-releases/tvcmall-leads-wholesale-innovation-for-simplified-online-retail-business-success-at-ces-2025-302345615.html

Technology

The green power trading electricity volume in Turfan has surged significantly in 2024

Published

3 hours ago

January 11, 2025

TURFAN, China, Jan. 11, 2025 /PRNewswire/ — On January 9, 2024, data released by Xinjiang Power Trading Centre Co., Ltd. indicated that the green power trading electricity volume in the Turfan region reached 0.97 billion kWh, representing a remarkable year-on-year increase of up to 14 times. This substantial growth underscores the region’s successful transition towards green energy.

State Grid Turfan Power Supply Company has taken proactive measures to expedite the development of the green power market. The company has facilitated the government’s introduction of a renewable energy consumption action plan, specifying new energy consumption ratios for key energy-consuming entities and establishing a market mechanism with a high proportion of new energy. These efforts have effectively promoted the “new energy participation in all trading varieties of the 24-hour curve” trading model and ensured continuous market opening on working days, thereby better accommodating the fluctuating characteristics of new energy output.

Furthermore, State Grid Turfan Power Supply Company established a green power certificate service station in Gaochang District, providing customers with convenient green power trading services and fostering a green consumption atmosphere throughout society. During the Autonomous Region Tourism Development Conference and the Turfan Grape Festival, the company achieved 100% green power supply and assisted three export-oriented enterprises in achieving low-carbon transformation, thereby enhancing the international influence of their brands.

Looking ahead, State Grid Turfan Power Supply Company will continue to implement measures to expand its “Power Supply + Energy Efficiency Bill” service, guiding society towards more efficient, economical, and environmentally friendly electricity usage, and contributing to the clean and low-carbon transformation of local energy resources.

View original content:https://www.prnewswire.com/apac/news-releases/the-green-power-trading-electricity-volume-in-turfan-has-surged-significantly-in-2024-302348525.html

SOURCE State Grid Turfan Power Supply Company

Technology

Equipboard Unveils Sleek Redesign to Enhance Music Gear Discovery for Musicians Worldwide

Published

5 hours ago

January 11, 2025

Redesign Introduces Modern Features, Streamlined Navigation, and Richer Content to Inspire and Support Music Makers Globally

AUSTIN, Texas, Jan. 11, 2025 /PRNewswire-PRWeb/ — Equipboard, the leading online community for musicians and gear enthusiasts, announces the launch of its newly redesigned website. With a modern look, streamlined navigation, and powerful new features, the redesign sets a new standard for connecting artists, producers, and hobbyists with the tools they need to create music.

Since its inception in 2013, Equipboard has grown into the world’s largest database of music gear used by professionals and amateurs alike. The redesign reflects the platform’s commitment to fostering creativity, offering transparent information, and making gear discovery and purchasing easier and more enjoyable for its global user base.

What’s New?

Equipboard’s redesign is more than just a fresh coat of paint. It introduces a host of improvements aimed at elevating the way users explore, share, and connect over their favorite gear:

Modernized Design: A sleek, responsive layout ensures a seamless experience across all devices, with improved readability and accessibility. Enhanced Navigation: Faster, more intuitive browsing helps users discover gear, artists, and inspiration effortlessly. Whether searching for a guitarist’s pedalboard or a producer’s go-to synth, the information is now at their fingertips. Richer Content: Equipboard now features in-depth guides, expert-curated collections, and a revamped artist gear section to inspire and inform users at all levels of their musical journey. Personalized Experience: Registered users can now enjoy a more tailored interface, saving their favorite gear and creating wishlists for their next creative adventure. Price Comparisons Across Leading Retailers: Equipboard helps musicians make informed decisions by comparing prices on music gear from top retailers, ensuring they get the best value for their investment. Community-Focused Features: New tools make it easier for users to contribute to Equipboard’s ever-growing database, ensuring the platform remains the most trusted source for music gear information.

“Equipboard has always been about empowering musicians by connecting them with the tools and insights they need,” said Michael Pierce, Co-Founder. “This redesign reflects our commitment to innovation and community, creating an experience that’s as inspiring as the gear our users discover. From in-depth artist insights to real-time price comparisons, we’re excited to see how these improvements help musicians worldwide make better gear choices and create amazing music.”

About Equipboard

Equipboard is the ultimate online resource for musicians and gear enthusiasts. With a mission to provide transparent, community-driven information about the gear used by artists and professionals, Equipboard has become a trusted destination for millions of music creators. The platform also simplifies the buying process with its innovative price comparison tool, helping users find the best deals from leading retailers. From electric guitars to studio monitors, Equipboard’s extensive database helps users make informed decisions about their music-making journey.

The redesigned Equipboard is now live at https://equipboard.com, offering a fresh look and enhanced tools to support music creators in exploring the gear behind their favorite artists’ sound.

Media Contact

Michael Pierce, Equipboard, 888-888-8888, contact@equipboard.com, https://equipboard.com/

View original content to download multimedia:https://www.prweb.com/releases/equipboard-unveils-sleek-redesign-to-enhance-music-gear-discovery-for-musicians-worldwide-302348502.html

SOURCE Equipboard