The hottest IBM released the third quarter perform

IBM released the third quarter performance report: strong growth in cloud revenue, gross profit margin expansion

on October 19, 2020 Eastern time, IBM (nyse: IBM) released the third quarter performance report of 2020

Arvind Krishna, CEO of IBM, said: driven by the red hat business, our cloud business performed strongly, indicating that more and more customers began to adopt IBM's open hybrid cloud platform. Splitting the infrastructure management service business and establishing a market leading independent company will make IBM focus more on the open hybrid cloud platform and AI capabilities, which will effectively speed up the implementation of IBM's growth strategy, so as to better grasp the hybrid cloud market containing $1trillion opportunities

key performance points of the third quarter:

according to GAAP, the earnings per share of continuous operating business is $1.89

according to non GAAP, the operating earnings per share is $2.58

the total revenue is $1. Too high a pressure will cause a slight expansion of $7.6 billion, Decreased by 2.6% (decreased by 3.1% based on adjusted business and exchange rate)

-- cloud and cognitive software increased by 7% (increased by 6% based on adjusted exchange rate)

total cloud revenue reached $6billion, up 19%

-- in the past 12 months, cloud revenue reached $24.4 billion, Increase by 22% (25% in terms of adjusted business and exchange rate)

red hat's revenue increased by 17% over the same period in history (16% in terms of adjusted exchange rate)

gross profit margin calculated in accordance with U.S. GAAP increased by 180 basis points to 48%; According to non GAAP, the operating gross profit margin increased by 160 basis points to 49%

the net cash generated from operating activities in the past 12 months was US $15.8 billion, and the free cash flow was US $10.8 billion

James Kavanaugh, senior vice president and chief financial officer of IBM, said: in the third quarter, we continued to maintain a strong expansion of gross profit margin, creating a steady free cash flow, And maintained a good capital structure and sufficient liquidity. Our financial flexibility allows us to increase our investment in hybrid cloud and AI technology innovation and skills, and continue to commit to our long-term dividend policy

cash flow:

in the third quarter, the net cash generated by the company's operating activities was $4.3 billion, or $1.9 billion not included in the accounts receivable of the global finance department. IBM's free cash flow was $1.1 billion. The company returned $1.5 billion to shareholders in the form of dividends

ibm held $15.8 billion in cash at the end of the third quarter, including securities, an increase of $6.7 billion over the end of 2019

performance of each department in the third quarter:

the performance of each department reflects that kxin GB is basically following GB8624 (2) 006 standard. While constantly adjusting business priorities to preserve cash and maintain stable operations, customers are increasing the adoption of IBM's open hybrid cloud platform

the revenue of cloud and cognitive software department (including cloud and data platforms, cognitive applications and transaction processing platforms including red hat) was $5.6 billion, an increase of 7% (an increase of 6% at the adjusted exchange rate); Driven by red hat business, cloud and data platform increased by 20% (by 19% at the adjusted exchange rate). Driven by security and supply chain businesses, revenue from cognitive applications increased by 1% (flat at adjusted exchange rates). The revenue of transaction processing platform decreased. Cloud revenue increased by more than 60%

the revenue of the global enterprise consulting service department (including consulting, application management and global process services) was US $4billion, down 5% (6% at the adjusted exchange rate), which was caused by the decline of application management and consulting business. Cloud revenue increased by 10% (by 9% at the adjusted exchange rate). It is not easy to choose suitable equipment. Gross profit margin increased by 190 basis points

the revenue of the global information technology service department (including infrastructure and cloud services and technical support services) was $6.5 billion, down 4%. Cloud revenue increased by 9% (by 8% at the adjusted exchange rate)

the revenue of the system department (including the system hardware and operating system software business) was $1.3 billion, a decrease of 15% (a decrease of 16% at the adjusted exchange rate), which was caused by the decline in the revenue of IBM Z and storage systems, reflecting the impact of product cycle fluctuations

the revenue of the global finance department (including financing and second-hand equipment sales business) was $273million, a decrease of 20% and a very short clearing time, It reflects the contraction of OEM commercial financing business. Gross profit margin increased by 60 basis points

performance since 2020:

performance since the beginning of the year reflects the impact of the red hat acquisition related transactions officially completed in July 2019

the consolidated diluted earnings per share was $4.72, down 27% from $6.45 in the same period in 2019. The consolidated net income was $4.2 billion, down 27% from the same period last year. Total revenue for the nine months ended September 30, 2020 was $53.3 billion, down 4% year-on-year (2% in adjusted business and exchange rates) from $55.4 billion in the first nine months of 2019

according to non GAAP, the diluted earnings per share of continuous operation was $6.60, down 19% from $8.10 per share in the same period in 2019. According to non GAAP, the net operating income for the nine months ended September 30, 2020 was $5.9 billion, down 18% from $7.2 billion in the same period last year