May 30, 2024

MediaBizNet

Complete Australian News World

IBM Q1 2024 Earnings Report: IBM Acquires HashiCorp

IBM Q1 2024 Earnings Report: IBM Acquires HashiCorp

The transaction will be accretive to adjusted EBITDA in the first full year after closing, and accretive to free cash flow in the second year after closing. IBM said it expects the deal to close by the end of 2024. A spokesman for Dave McJannet, HashiCorp's chief executive, said he would report to Rob Thomas, IBM's senior vice president in charge of software, if the deal goes through.

HashiCorp will complement Red Hat, which has contributed to IBM's revenue growth since its $34 billion acquisition in 2019. IBM now sells Red Hat's version of the Linux operating system for use on multiple public clouds, making it a neutral entity. HashiCorp pioneered the open source software that developers rely on to control cloud infrastructure. Premium versions of Terraform cloud management software and other products brought revenue to HashiCorp.

In 2021, HashiCorp shares began trading on the Nasdaq Stock Exchange. But revenue growth slowed, and the company continued to report losses. However, it is adding revenue at a faster pace than IBM.

HashiCorp shares rose 4% in extended trading after the acquisition announcement.

Here's how IBM did compared to the consensus among analysts polled by LSEG:

  • Earnings per share: $1.68 was revised from $1.60 expected
  • he won: $14.46 billion versus $14.55 billion expected

IBM's revenue rose about 1.5% year over year during the quarter, according to statement. This marks the company's third revenue loss in the past five quarters.

Revenue from software, at $5.90 billion, rose about 6% and was below the consensus of $5.96 billion among analysts surveyed by StreetAccount.

READ  The Federal Reserve has begun to clamp down on American companies

IBM's consulting revenue was $5.19 billion, down slightly and just below the StreetAccount consensus of $5.20 billion.

Total infrastructure revenues amounted to $3.08 billion. It fell 0.7% but came in above the StreetAccount consensus of $2.94 billion.

During the quarter, IBM said it will staff its 160,000 consultants Artificial intelligence assistants To enhance productivity, the company completed a divestiture process Weather company To Francisco Partners.

Despite the after-hours moves, IBM shares are up about 13% so far this year, outperforming the S&P 500, which is up 6% over the same period.

Executives will discuss the report with analysts in a conference call beginning at 5 p.m. ET.

This is breaking news. . Please check back for updates

He watches: IBM In-Office Alarm: Move near the office or leave the company