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IBM RELEASES SECOND-QUARTER RESULTS

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Speeded up earnings expansion led through Device; Raises full-year unfastened money current expectation

ARMONK, N.Y., July 24, 2024 /PRNewswire/ — IBM (NYSE: IBM) lately introduced second-quarter 2024 profits effects.

“We had a strong second quarter, exceeding our expectations, driven by growth in both revenue and free cash flow. We continue to see that clients turn to IBM for our technology and our expertise in enterprise AI, and our book of business for generative AI has grown to more than two billion dollars since the launch of watsonx one year ago,” mentioned Arvind Krishna, IBM chairman and eminent government officer. “Given our first-half results, we are raising our full-year view of free cash flow, which we now expect to be more than $12 billion.” 

2d-Quarter Highlights

  • Earnings
    – Earnings of $15.8 billion, up 2 p.c, up 4 p.c at consistent forex
    – Device earnings up 7 p.c, up 8 p.c at consistent forex
    – Consulting earnings indisposed 1 p.c, up 2 p.c at consistent forex
    – Infrastructure earnings up 1 p.c, up 3 p.c at consistent forex
  • Benefit Margin
    – Improper Benefit Margin: GAAP: 56.8 p.c, up 180 foundation issues; Working (Non-GAAP): 57.8 p.c, up 190 foundation issues
    – Pre-Tax Source of revenue Margin: GAAP: 14.1 p.c, up 110 foundation issues; Working (Non-GAAP): 17.7 p.c, up 220 foundation issues
  • Money Current
    – Age to while, internet money from working actions of $6.2 billion, indisposed $0.2 billion; unfastened money current of $4.5 billion, up $1.1 billion
    – Over the utmost 365 days, internet money from working actions of $13.8 billion; unfastened money current of $12.3 billion

SECOND QUARTER 2024 INCOME STATEMENT SUMMARY

Earnings

Improper

Benefit

Improper
Benefit
Margin

Pre-tax

Source of revenue

Pre-tax

Source of revenue

Margin

Web

Source of revenue

Diluted

Profits

In keeping with Proportion

GAAP from
Proceeding
Operations

$   15.8 B

$   8.9 B

56.8

%

$  2.2 B

14.1

%

$     1.8 B

$     1.96

Age/Age

2

%(1)

5

%

1.8

Pts

11

%

1.1

Pts

16

%

14

%

Working

(Non-GAAP)


$   9.1 B

57.8

%

$  2.8 B

17.7

%

$     2.3 B

$     2.43

Age/Age


5

%

1.9

Pts

17

%

2.2

Pts

14

%

11

%

(1)  4% at consistent forex.

“In the quarter, we accelerated our revenue growth as we continue to execute well on our strategy. Our business fundamentals, operating leverage, product mix and productivity initiatives all contributed to significant margin expansion and increased profit and free cash flow,” mentioned James Kavanaugh, IBM senior vp and eminent monetary officer. “Our strong cash generation enables us to continue investing in innovation and expertise across the portfolio, while returning value to shareholders through dividends.”

Section Effects for 2d Quarter

  • Device — revenues of $6.7 billion, up 7.1 p.c, up 8.4 p.c at consistent forex:
    – Hybrid Platform & Answers up 5 p.c, up 6 p.c at consistent forex:
          — Pink Hat up 7 p.c, up 8 p.c at consistent forex
          — Automation up 15 p.c, up 16 p.c at consistent forex
          — Information & AI indisposed 3 p.c, indisposed 2 p.c at consistent forex
          — Safety up 2 p.c, up 3 p.c at consistent forex
    – Transaction Processing up 11 p.c, up 13 p.c at consistent forex
  • Consulting — revenues of $5.2 billion, indisposed 0.9 p.c, up 1.8 p.c at consistent forex:
    – Trade Transformation up 3 p.c, up 6 p.c at consistent forex
    – Generation Consulting indisposed 3 p.c, up 1 p.c at consistent forex
    – Software Operations indisposed 4 p.c, indisposed 2 p.c at consistent forex
  • Infrastructure — revenues of $3.6 billion, up 0.7 p.c, up 2.7 p.c at consistent forex:
    – Hybrid Infrastructure up 4 p.c, up 6 p.c at consistent forex
          — IBM Z up 6 p.c, up 8 p.c at consistent forex
          — Dispensed Infrastructure up 3 p.c, up 5 p.c at consistent forex
    – Infrastructure Help indisposed 5 p.c, indisposed 3 p.c at consistent forex
  • Financing — revenues of $0.2 billion, indisposed 8.3 p.c, indisposed 6.6 p.c at consistent forex

Money Current and Stability Sheet

In the second one quarter, the corporate generated internet money from working actions of $2.1 billion, indisposed $0.6 billion 12 months to 12 months. IBM’s unfastened money current used to be $2.6 billion, up $0.5 billion 12 months to 12 months. The corporate returned $1.5 billion to shareholders in dividends in the second one quarter.

For the primary six months of the 12 months, the corporate generated internet money from working actions of $6.2 billion, indisposed $0.2 billion 12 months to 12 months. IBM’s unfastened money current used to be $4.5 billion, up $1.1 billion 12 months to 12 months. Over the utmost 365 days, the corporate generated internet money from working actions of $13.8 billion and unfastened money current of $12.3 billion.

IBM ended the second one quarter with $16.0 billion of money, limited money and marketable securities, up $2.5 billion from year-end 2023. Debt, together with IBM Financing debt of $11.1 billion, totaled $56.5 billion, flat 12 months to while.

Complete-Age 2024 Expectancies

  • Earnings: The corporate continues to be expecting consistent forex earnings expansion in keeping with its mid-single digit type. At wave foreign currency charges, forex is anticipated to be a few one to two-point headwind to earnings expansion
  • Distant money current: The corporate now expects greater than $12 billion in unfastened money current

Ahead-Having a look and Cautionary Statements

Except for for the historic data and discussions contained herein, statements contained on this let fall would possibly represent forward-looking statements throughout the which means of the Personal Securities Litigation Reform Occupation of 1995. Ahead-looking statements are in accordance with the corporate’s wave suppositions referring to moment trade and fiscal efficiency. Those statements contain quite a few dangers, uncertainties and alternative components that might motive original effects to range materially, together with, however now not restricted to, refer to: a downturn in financial surrounding and consumer spending budgets; a failure of the corporate’s innovation tasks; harm to the corporate’s recognition; dangers from making an investment in expansion alternatives; failure of the corporate’s highbrow attribute portfolio to forbid aggressive choices and the failure of the corporate to acquire important licenses; the corporate’s skill to effectively supremacy acquisitions, alliances and inclinations, together with integration demanding situations, failure to succeed in targets, the supposition of liabilities and better debt ranges; fluctuations in monetary effects; have an effect on of native prison, financial, political, condition and alternative situations; the corporate’s failure to satisfy expansion and productiveness targets; useless inside controls; the corporate’s virtue of accounting estimates; impairment of the corporate’s approval or amortizable intangible property; the corporate’s skill to draw and reserve key workers and its reliance on crucial abilities; affects of relationships with crucial providers; product property problems; affects of commercial with govt purchasers; reliance on 3rd birthday celebration distribution channels and ecosystems; cybersecurity and information privateness issues; opposed results connected to order trade and environmental issues; tax issues; prison lawsuits and investigatory dangers; the corporate’s pension plans; forex fluctuations and buyer financing dangers; have an effect on of adjustments in marketplace liquidity situations and buyer credit score chance on receivables; possible failure of the judicial separation of Kyndryl Holdings, Inc. to qualify for tax-free remedy; chance components connected to IBM securities; and alternative dangers, uncertainties and components mentioned within the corporate’s Mode 10-Qs, Mode 10-Ok and within the corporate’s alternative filings with the U.S. Securities and Change Fee or in fabrics integrated therein through reference.

Statements on this conversation in regards to the strategic acquisition which might be forward-looking would possibly come with projections as to remaining while for the transaction, the level of, and the occasion important to acquire, the regulatory approvals required for the transaction, the expected advantages of the transaction, the have an effect on of the transaction on IBM’s trade, the synergies from the transaction, and the blended corporate’s moment working effects.

Any forward-looking observation on this let fall speaks best as of the while on which it’s made. Except for as required through regulation, the corporate assumes disagree legal responsibility to replace or revise any forward-looking statements.

Presentation of Knowledge on this Press Drop

In an aim to grant traders with extra data in regards to the corporate’s effects as progressive through usually accredited accounting ideas (GAAP), the corporate has additionally disclosed on this press let fall refer to non-GAAP data, which control believes supplies helpful data to traders:

IBM effects —

  • adjusting for forex (i.e., at consistent forex);
  • presenting working (non-GAAP) profits according to percentage quantities and connected source of revenue observation pieces;
  • unfastened money current;
  • internet money from working actions except IBM Financing receivables;
  • adjusted EBITDA.

The explanation for control’s virtue of those non-GAAP measures is integrated in Show off 99.2 within the Mode 8-Ok that comes with this press let fall and is being submitted lately to the SEC.

For generative AI, accumulation of commercial contains Device transactional earnings, SaaS Annual Word of honour Worth and Consulting signings.

Convention Name and Webcast

IBM’s habitual quarterly profits convention name is scheduled to start at 5:00 p.m. ET, lately. The Webcast could also be accessed by means of a hyperlink at https://www.ibm.com/investor/events/earnings-2q24. Presentation charts shall be to be had in a while earlier than the Webcast.

Monetary Effects Underneath (sure quantities would possibly not upload because of virtue of rounded numbers; percentages offered are calculated from the underlying whole-dollar quantities).

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

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

INTERNATIONAL BUSINESS MACHINES CORPORATION

COMPARATIVE FINANCIAL RESULTS

(Unaudited; Bucks in tens of millions except for according to percentage quantities)


3 Months Ended
June 30,

Six Months Ended
June 30,

2024

2023 (1)

2024

2023 (1)

REVENUE BY SEGMENT










Device

$                   6,739

$                   6,294

$                12,637

$                11,885

Consulting

5,179

5,226

10,365

10,423

Infrastructure

3,645

3,618

6,721

6,716

Financing

169

185

362

380

Alternative

38

152

146

321

TOTAL REVENUE

15,770

15,475

30,231

29,727












GROSS PROFIT

8,950

8,501

16,692

16,010












GROSS PROFIT MARGIN










Device

83.6

%

82.1

%

83.0

%

82.3

%

Consulting

26.3

%

25.9

%

25.8

%

25.7

%

Infrastructure

56.5

%

56.0

%

55.4

%

54.1

%

Financing

48.9

%

49.2

%

48.7

%

46.5

%












TOTAL GROSS PROFIT MARGIN

56.8

%

54.9

%

55.2

%

53.9

%












EXPENSE AND OTHER INCOME










S,G&A

4,938

4,900

9,912

9,754

R,D&E

1,840

1,687

3,637

3,342

Highbrow attribute and customized building source of revenue

(241)

(248)

(458)

(428)

Alternative (source of revenue) and expense

(233)

(261)

(550)

(506)

Pastime expense

427

423

859

790

TOTAL EXPENSE AND OTHER INCOME

6,730

6,501

13,399

12,952












INCOME FROM CONTINUING OPERATIONS

BEFORE INCOME TAXES

2,219

2,000

3,293

3,058

Pre-tax margin

14.1

%

12.9

%

10.9

%

10.3

%

Provision for/(Have the benefit of) source of revenue taxes

389

419

(112)

543

Efficient tax charge

17.5

%

21.0

%

(3.4)

%

17.8

%












INCOME FROM CONTINUING OPERATIONS

$                   1,830

$                   1,581

$                   3,405

$                   2,515












DISCONTINUED OPERATIONS










Source of revenue/(loss) from discontinued operations, internet of taxes

4

2

34

(4)












NET INCOME

$                   1,834

$                   1,583

$                   3,439

$                   2,511












EARNINGS/(LOSS) PER SHARE OF COMMON STOCK










Assuming Dilution










Proceeding Operations

$                      1.96

$                      1.72

$                      3.65

$                      2.74

Discontinued Operations

$                      0.00

$                      0.00

$                      0.04

$                      0.00

TOTAL

$                      1.96

$                      1.72

$                      3.68

$                      2.73












Ordinary










Proceeding Operations

$                      1.99

$                      1.74

$                      3.71

$                      2.77

Discontinued Operations

$                      0.00

$                      0.00

$                      0.04

$                      0.00

TOTAL

$                      1.99

$                      1.74

$                      3.74

$                      2.76












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










Assuming Dilution

934.4

919.5

933.9

918.6

Ordinary

920.3

909.9

918.7

908.7

____________________

(1)  Recast to mirror January 2024 area adjustments.

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

(Bucks in Hundreds of thousands)

At
June 30,
2024

At
December 31,
2023

ASSETS:



Flow Belongings:



Money and money equivalents

$                   12,210

$                   13,068

Limited money

2,268

21

Marketable securities

1,481

373

Notes and accounts receivable – industry, internet

5,769

7,214

Cut-term financing receivables, internet

5,799

6,793

Alternative accounts receivable, internet

757

640

Inventories

1,234

1,161

Deferred prices

997

998

Pay as you go bills and alternative wave property

2,784

2,639

General Flow Belongings

33,299

32,908





Attribute, plant and kit, internet

5,600

5,501

Working right-of-use property, internet

3,130

3,220

Lengthy-term financing receivables, internet

5,483

5,766

Pay as you go pension property

7,630

7,506

Deferred prices

820

842

Deferred taxes

6,378

6,656

Benevolence

59,416

60,178

Intangibles, internet

10,251

11,036

Investments and varied property

1,840

1,626

General Belongings

$                  133,848

$                  135,241





LIABILITIES:



Flow Liabilities:



Taxes

$                      1,691

$                      2,270

Cut-term debt

3,602

6,426

Accounts payable

3,631

4,132

Deferred source of revenue

13,643

13,451

Working hire liabilities

762

820

Alternative liabilities

6,319

7,022

General Flow Liabilities

29,648

34,122





Lengthy-term debt

52,929

50,121

Resignation connected duties

10,200

10,808

Deferred source of revenue

3,489

3,533

Working hire liabilities

2,546

2,568

Alternative liabilities

10,932

11,475

General Liabilities

109,745

112,628





EQUITY:



IBM Stockholders’ Fairness:



Regular secure

60,501

59,643

Retained profits

151,659

151,276

Treasury secure — at price

(169,815)

(169,624)

Amassed alternative complete source of revenue/(loss)

(18,319)

(18,761)

General IBM Stockholders’ Fairness

24,026

22,533





Noncontrolling pursuits

77

80

General Fairness

24,103

22,613





General Liabilities and Fairness

$                 133,848

$                 135,241

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW ANALYSIS

(Unaudited)



3 Months Ended
June 30,

Six Months Ended
June 30,

Trailing Twelve
Months Ended
June 30,

(Bucks in Hundreds of thousands)

2024

2023

2024

2023

2024

Web Money from Operations according to GAAP

$            2,066

$            2,638

$         6,234

$            6,412

$                      13,752











Much less: trade in IBM Financing receivables

(946)

50

951

2,028

156

Capital Expenditures, internet

(399)

(487)

(761)

(944)

(1,305)











Distant Money Current

2,612

2,101

4,522

3,441

12,292











Acquisitions

(153)

(334)

(235)

(356)

(4,961)

Divestitures

—

6

703

6

693

Dividends

(1,537)

(1,510)

(3,058)

(3,007)

(6,092)

Non-Financing Debt

(4,168)

(1,178)

1,076

8,514

(1,892)

Alternative (contains IBM Financing internet receivables and debt)

(73)

(347)

(510)

(1,109)

(410)











Trade in Money, Money Equivalents, Limited Money
and Cut-term Marketable Securities

$          (3,318)

$          (1,263)

$         2,497

$            7,489

$                            (370)

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW

(Unaudited)



3 Months Ended
June 30,

Six Months Ended
June 30,

(Bucks in Hundreds of thousands)

2024

2023

2024

2023

Web Source of revenue from Operations

$                     1,834

$                         1,583

$                     3,439

$                     2,511

Depreciation/Amortization of Intangibles (1)

1,155

1,076

2,287

2,150

Book-based Repayment

316

288

636

556

Working property and liabilities/Alternative, internet (2)

(293)

(359)

(1,079)

(832)

IBM Financing A/R

(946)

50

951

2,028

Web Money Supplied through Working Actions

$                     2,066

$                         2,638

$                     6,234

$                     6,412









Capital Expenditures, internet of bills & proceeds

(399)

(487)

(761)

(944)

Divestitures, internet of money transferred

–

6

703

6

Acquisitions, internet of money obtained

(153)

(334)

(235)

(356)

Marketable Securities / Alternative Investments, internet

2,791

822

(1,679)

(6,659)

Web Money Supplied through/(Impaired in) Making an investment Actions

$                     2,239

$                                7

$                   (1,971)

$                   (7,953)









Debt, internet of bills & proceeds

(2,900)

(1,135)

481

6,169

Dividends

(1,537)

(1,510)

(3,058)

(3,007)

Financing – Alternative

(78)

(86)

(61)

(185)

Web Money Supplied through/(Impaired in) Financing Actions

$                    (4,515)

$                       (2,731)

$                   (2,638)

$                     2,978









Impact of Change Fee adjustments on Money

(76)

(25)

(236)

(1)

Web Trade in Money, Money Equivalents and Limited Money

$                       (287)

$                          (110)

$                     1,389

$                     1,436

____________________

(1)  Contains working hire right-of-use property amortization. 

(2)  Contains the aid of tax reserves. 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)



3 Months Ended

June 30,

Six Months Ended
June 30,

(Bucks in Billions)

2024

2023

12 months/12 months

2024

2023

12 months/12 months

Web Source of revenue as reported (GAAP)

$           1.8

$           1.6

$           0.3

$           3.4

$           2.5

$           0.9

Much less: Source of revenue/(loss) from discontinued operations, internet of tax

0.0

0.0

0.0

0.0

0.0

0.0

Source of revenue from proceeding operations

1.8

1.6

0.2

3.4

2.5

0.9

Provision for/(Have the benefit of) source of revenue taxes from proceeding ops.

0.4

0.4

0.0

(0.1)

0.5

(0.7)

Pre-tax source of revenue from proceeding operations (GAAP)

2.2

2.0

0.2

3.3

3.1

0.2

Non-operating changes (earlier than tax)











Acquisition-related fees (1)

0.5

0.4

0.1

1.0

0.8

0.2

Non-operating retirement-related prices/(source of revenue)

0.1

0.0

0.1

0.2

0.0

0.2













Working (non-GAAP) pre-tax source of revenue from proceeding ops.

2.8

2.4

0.4

4.4

3.8

0.6













Web passion expense

0.2

0.2

0.0

0.4

0.4

0.0

Depreciation/Amortization of non-acquired intangible property

0.7

0.7

0.0

1.4

1.4

0.0

Book-based repayment

0.3

0.3

0.0

0.6

0.6

0.1

Group of workers rebalancing fees

0.0

0.1

(0.1)

0.4

0.4

0.0

Company (positive aspects) and costs (2)

0.0

0.0

0.0

(0.2)

0.0

(0.2)













Adjusted EBITDA

$           4.0

$           3.7

$           0.4

$           7.1

$           6.5

$           0.5

____________________

(1)   Basically is composed of amortization of obtained intangible property. 

(2)   Company (positive aspects) and costs essentially is composed of distinctive company movements reminiscent of positive aspects on divestitures. 

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)



3 Months Ended June 30, 2024













(Bucks in Hundreds of thousands)

Device

Consulting

Infrastructure

Financing


Earnings

$                       6,739

$                        5,179

$                        3,645

$                            169

Section Benefit

$                       2,113

$                           463

$                           654

$                              77

Section Benefit Margin

31.3

%

8.9

%

17.9

%

45.3

%

Trade YTY Earnings

7.1

%

(0.9)

%

0.7

%

(8.3)

%

Trade YTY Earnings – Consistent Foreign money

8.4

%

1.8

%

2.7

%

(6.6)

%






3 Months Ended June 30, 2023 (1)













(Bucks in Hundreds of thousands)

 Device

Consulting

Infrastructure

Financing


Earnings

$                       6,294

$                        5,226

$                        3,618

$                            185

Section Benefit

$                       1,749

$                           483

$                           732

$                              64

Section Benefit Margin

27.8

%

9.2

%

20.2

%

34.8

%

____________________

(1) Recast to mirror January 2024 area adjustments. 



Six Months Ended June 30, 2024













(Bucks in Hundreds of thousands)

Device

Consulting

Infrastructure

Financing


Earnings

$                     12,637

$                      10,365

$                        6,721

$                           362

Section Benefit

$                       3,612

$                           888

$                           965

$                           168

Section Benefit Margin

28.6

%

8.6

%

14.4

%

46.5

%

Trade YTY Earnings

6.3

%

(0.6)

%

0.1

%

(4.9)

%

Trade YTY Earnings – Consistent Foreign money

7.2

%

1.8

%

1.5

%

(4.0)

%






Six Months Ended June 30, 2023 (1)













(Bucks in Hundreds of thousands)

 Device

Consulting

Infrastructure

Financing


Earnings

$                     11,885

$                      10,423

$                       6,716

$                           380

Section Benefit

$                       3,128

$                           910

$                       1,039

$                           164

Section Benefit Margin

26.3

%

8.7

%

15.5

%

43.2

%

__________

(1) Recast to mirror January 2004 area adjustments. 

INTERNATIONAL BUSINESS MACHINES CORPORATION

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

(Unaudited; Bucks in tens of millions except for according to percentage quantities)


3 Months Ended June 30, 2024

Proceeding Operations



GAAP

Acquisition-

Alike

Changes (1)

Resignation-

Alike

Changes (2)

Tax

Reform

Affects

Working

(Non-GAAP)

Improper Benefit

$       8,950

$                           170

$                               —

$                       —

$          9,120

Improper Benefit Margin

56.8

%

1.1

pts

—

pts

—

pts

57.8

%

S,G&A

$       4,938

$                         (286)

$                               —

$                       —

$          4,651

Alternative (Source of revenue) & Expense

(233)

(18)

(98)

—

(349)

General Expense & Alternative (Source of revenue)

6,730

(304)

(98)

—

6,328

Pre-tax Source of revenue from Proceeding Operations

2,219

474

98

—

2,792

Pre-tax Source of revenue Margin from Proceeding
Operations

14.1

%

3.0

pts

0.6

pts

—

pts

17.7

%

Provision for/(Have the benefit of) Source of revenue Taxes (3)

$          389

$                          113

$                              26

$                     (12)

$             516

Efficient Tax Fee

17.5

%

1.1

pts

0.3

pts

(0.4)

pts

18.5

%

Source of revenue from Proceeding Operations

$       1,830

$                          362

$                              72

$                      12

$          2,275

Source of revenue Margin from Proceeding Operations

11.6

%

2.3

pts

0.5

pts

0.1

pts

14.4

%

Diluted Profits In keeping with Proportion: Proceeding
Operations

$         1.96

$                         0.39

$                           0.08

$                   0.01

$            2.43




3 Months Ended June 30, 2023

Proceeding Operations

GAAP

Acquisition-

Alike

Changes (1)

Resignation-

Alike

Changes (2)

Tax

Reform

Affects

Working

(Non-GAAP)

Improper Benefit

$       8,501

$                          150

$                               —

$                      —

$           8,650

Improper Benefit Margin

54.9

%

1.0

pts

—

pts

—

pts

55.9

%

S,G&A

$       4,900

$                         (245)

$                               —

$                      —

$           4,655

Alternative (Source of revenue) & Expense

(261)

0

(1)

—

(262)

General Expense & Alternative (Source of revenue)

6,501

(246)

(1)

—

6,254

Pre-tax Source of revenue from Proceeding Operations

2,000

395

1

—

2,396

Pre-tax Source of revenue Margin from Proceeding
Operations

12.9

%

2.6

pts

0.0

pts

—

pts

15.5

%

Provision for/(Have the benefit of) Source of revenue Taxes (3)

$          419

$                            87

$                               (3)

$                  (110)

$              393

Efficient Tax Fee

21.0

%

0.2

pts

(0.2)

pts

(4.6)

pts

16.4

%

Source of revenue from Proceeding Operations

$       1,581

$                          308

$                                5

$                   110

$           2,003

Source of revenue Margin from Proceeding Operations

10.2

%

2.0

pts

0.0

pts

0.7

pts

12.9

%

Diluted Profits In keeping with Proportion: Proceeding
Operations

$         1.72

$                         0.34

$                           0.00

$                  0.12

$             2.18

____________________

(1)    Contains amortization of bought intangible property, in procedure R&D, transaction prices, acceptable restructuring and connected bills, tax
        fees connected to acquisition integration and pre-closing fees, reminiscent of financing prices. 2024 additionally features a lack of $18 million on international
        alternate by-product pledges entered into through the corporate previous to the purchase of StreamSets and webMethods from Device AG.

(2)    Contains amortization of prior provider prices, passion price, anticipated go back on plan property, amortized actuarial positive aspects/losses, the affects of any plan
        curtailments/settlements and pension insolvency prices and alternative prices.

(3)    Tax have an effect on on working (non-GAAP) pre-tax source of revenue from proceeding operations is calculated underneath the similar accounting ideas carried out to the
         As Reported pre-tax source of revenue underneath ASC 740, which employs an annual efficient tax charge form to the consequences.

INTERNATIONAL BUSINESS MACHINES CORPORATION

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

(Unaudited; Bucks in tens of millions except for according to percentage quantities)


Six Months Ended June 30, 2024

Proceeding Operations

GAAP

Acquisition-

Alike

Changes (1)

Resignation-

Alike

Changes (2)

Tax

Reform

Affects (3)

Working

(Non-GAAP)

Improper Benefit

$    16,692

$                         341

$                               —

$                   —

$         17,033

Improper Benefit Margin

55.2

%

1.1

pts

—

pts

—

pts

56.3

%

S,G&A

$      9,912

$                       (554)

$                               —

$                   —

$           9,358

Alternative (Source of revenue) & Expense

(550)

(68)

(194)

—

(812)

General Expense & Alternative (Source of revenue)

13,399

(622)

(194)

—

12,584

Pre-tax Source of revenue from Proceeding Operations

3,293

963

194

—

4,449

Pre-tax Source of revenue Margin from Proceeding
Operations

10.9

%

3.2

pts

0.6

pts

—

pts

14.7

%

Provision for/(Have the benefit of) Source of revenue Taxes (4)

$        (112)

$                         255

$                              31

$                436

$              610

Efficient Tax Fee

(3.4)

%

6.5

pts

0.9

pts

9.8

pts

13.7

%

Source of revenue from Proceeding Operations

$      3,405

$                         707

$                            163

$               (436)

$           3,839

Source of revenue Margin from Proceeding Operations

11.3

%

2.3

pts

0.5

pts

(1.4)

pts

12.7

%

Diluted Profits In keeping with Proportion: Proceeding
Operations

$        3.65

$                        0.76

$                           0.17

$              (0.47)

$             4.11




Six Months Ended June 30, 2023

Proceeding Operations

GAAP

Acquisition-

Alike

Changes (1)

Resignation-

Alike

Changes (2)

Tax

Reform

Affects

Working

(Non-GAAP)

Improper Benefit

$    16,010

$                         298

$                               —

$                   —

$         16,308

Improper Benefit Margin

53.9

%

1.0

pts

—

pts

—

pts

54.9

%

S,G&A

$      9,754

$                       (491)

$                               —

$                   —

$           9,263

Alternative (Source of revenue) & Expense

(506)

(2)

4

—

(504)

General Expense & Alternative (Source of revenue)

12,952

(493)

4

—

12,463

Pre-tax Source of revenue from Proceeding Operations

3,058

791

(4)

—

3,845

Pre-tax Source of revenue Margin from Proceeding
Operations

10.3

%

2.7

pts

0.0

pts

—

pts

12.9

%

Provision for/(Have the benefit of) Source of revenue Taxes (4)

$         543

$                         178

$                            (14)

$               (115)

$              593

Efficient Tax Fee

17.8

%

1.0

pts

(0.3)

pts

(3.0)

pts

15.4

%

Source of revenue from Proceeding Operations

$      2,515

$                         613

$                             10

$                115

$           3,252

Source of revenue Margin from Proceeding Operations

8.5

%

2.1

pts

0.0

pts

0.4

pts

10.9

%

Diluted Profits In keeping with Proportion: Proceeding
Operations

$        2.74

$                        0.67

$                          0.01

$              0.13

$             3.54

____________________

(1)    Contains amortization of bought intangible property, in procedure R&D, transaction prices, acceptable restructuring and connected bills, tax
        fees connected to acquisition integration and pre-closing fees, reminiscent of financing prices. 2024 additionally features a lack of $68 million on international
        alternate by-product pledges entered into through the corporate previous to the purchase of StreamSets and webMethods from Device AG.

(2)    Contains amortization of prior provider prices, passion price, anticipated go back on plan property, amortized actuarial positive aspects/losses, the affects of any plan
        curtailments/settlements and pension insolvency prices and alternative prices.

(3)    2024 features a internet take pleasure in discrete tax occasions.

(4)   Tax have an effect on on working (non-GAAP) pre-tax source of revenue from proceeding operations is calculated underneath the similar accounting ideas carried out to the
        As Reported pre-tax source of revenue underneath ASC 740, which employs an annual efficient tax charge form to the consequences.

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP OPERATING CASH FLOW TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)



3 Months Ended
June 30,

Six Months Ended
June 30,

(Bucks in Billions)

2024

2023

2024

2023

Web Money Supplied through Working Actions

$           2.1

$           2.6

$           6.2

$           6.4









Upload:







Web passion expense

0.2

0.2

0.4

0.4

Provision for/(Have the benefit of) source of revenue taxes from proceeding operations

0.4

0.4

(0.1)

0.5









Much less trade in:







Financing receivables

(0.9)

0.1

1.0

2.0

Alternative property and liabilities/Alternative, internet (1)

(0.4)

(0.5)

(1.5)

(1.2)









Adjusted EBITDA

$           4.0

$           3.7

$           7.1

$           6.5

____________________

(1)    Alternative property and liabilities/Alternative, internet principally is composed of Working property and liabilities/Alternative, internet within the Money current chart, body of workers
         rebalancing fees, non-operating affects and company (positive aspects) and costs. 

SOURCE IBM

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