Good morning, ladies and gentlemen. Welcome to Kyndryl's first fiscal quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automatic message advising your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Lori Chaitman, Head of Investor Relations. Please go ahead. Good morning, everyone, and welcome to Kyndryl's earnings call for the first fiscal quarter ended June 30, 2023. Before we begin, I'd like to remind you that our remarks today will include forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied, and these statements speak only to our expectations as of today. For more details on these risks, please see the Risk Factors section of our annual report on Form 10-K for the year ended March 31, 2023. Kyndryl does not update forward-looking statements and disclaims any obligation to do so. In today's remarks, we'll also refer to certain non-GAAP financial measures. Corresponding GAAP measures and a reconciliation of non-GAAP measures to non-GAAP measures for historical periods are provided in the presentation materials for today's event, which are available on our website at investors.kyndryl.com. With me here today are Kyndryl's Chairman and Chief Executive Officer, Martin Schroeter, and Kyndryl's Chief Financial Officer, David Wyshner. Following our prepared remarks, we will hold a Q&A session. I'd like to now turn the call over to Martin. Martin? Thank you, Lori, and thanks to each of you for joining us. On today's call, I'll update you on the substantial progress we're making as a company and the meaningful implications of that progress. David will then review our recent financial results, our updated and improved fiscal 2024 outlook, and how we're changing the margin profile of our focus accounts. We are off to a very strong start in fiscal 2024. Our first Q1 results exceeded our expectations and position us well for the year as a whole. Our 3A initiatives, Alliances, Advanced Delivery, and Accounts, were at the core of our success. Kyndryl Consult, Kyndryl Bridge, and our efficiency efforts also helped drive our results. We extended and expanded customer relationships in ways that would be mutually beneficial, and we're raising our earnings outlook for fiscal 2024. In short, we're moving even faster than before to deliver progress, and we'll talk more about our achievements on the 3As and our updated full-year outlook. Before we do that, there are three declarative statements I want to make. First, annual losses are now behind us. We expect to make money this year and each year going forward, as measured by our adjusted pretax income. Second, we remain committed to delivering revenue growth in calendar 2025 and in fiscal 2026. That means that our revenue will bottom out in calendar 2024 or fiscal 2025, and we expect that bottom will be in within a few percentage points of our revenues this fiscal year as we retain the substantial majority of our focus accounts and their revenue. Third, as a result of our execution and accelerated pace of our transformation, we'll deliver the profit goals we've previously shared on the timelines we've previously shared. Our medium-term target is for adjusted pretax margins to be in the high single digits. This year, our fiscal 2024, will be a year of acceleration for Kyndryl. We're already seeing that in our Q1 results and our operating trends. We're accelerating our transformation with new alliance signings and revenue, with benefits from Advanced Delivery, with a massive improvement in our focus accounts, with rapid growth in Kyndryl Consult, with our technology leadership through Kyndryl Bridge, with our cost savings through our internal rationalization and transformation, and of course, the culture change we're driving through The Kyndryl Way. These are powerful but dynamics for our near-term and medium-term value creation. Stepping back a bit, as I think about Kyndryl, I believe our leadership in the markets we serve and the way we're building toward future growth are creating a compelling value proposition that is not yet well appreciated across the investment community. We've previously highlighted a number of the key components of our value proposition, and I want to clearly connect the dots as to how these elements of our business model are building value for us. First, we're the world's largest provider of IT infrastructure services, double the size of the next largest players. Our scale and our industry leadership foster innovative solutioning and service excellence because of our unique position on the industry learning curve and the mission-critical nature of what we do. We've been delivering double-digit revenue growth in Kyndryl Consult, the higher margin, higher value-add advisory portion of our business, despite the macro environment. Over the medium term, we now expect Kyndryl Consult to grow to 20% of our revenue, one-third more than our previous target of 15%. By delivering and accelerating customer business outcomes that are informed by our extensive operational experience, Kyndryl Consult will support our future revenue growth and margin expansion. We are aggressively fixing our focus accounts. With these customers, as we discussed last quarter, we're adding profitable scope, removing unprofitable scope, driving efficiencies largely through automation, which enhances service quality, and we're adjusting pricing when appropriate, and only rarely are we exiting relationships. We're approaching an inflection point in our business mix, with fiscal 2025 being a year when roughly half of our revenue will come from post-spin signings, and fiscal 2026 being the first year when our revenues and earnings will be primarily determined by contracts that Kyndryl signed.... The 3 As, the anticipated upswing in our revenue trajectory, and the tipping point of controlling our own destiny through our revenues coming mostly from post-spin signings, are what will propel us from modestly positive adjusted pretax earnings this year to high single-digit margins in the medium term. Our cash flow is expected to grow in conjunction with our adjusted pretax income, with strong conversion of adjusted net income to cash. Together, these elements of our business model form, I believe, a compelling value proposition, and I want to emphasize how enthusiastic we, as a management team, are about the margin trajectory that we've laid out and are already delivering on. Our 3A initiatives are major proof points. In fact, they're driving momentum throughout our business and fostering additional progress each quarter. As a reminder, we provided fiscal 2024 targets of $300 million in revenue tied to hyperscaler Alliances, $450 million in accumulative annualized cost savings from Advanced Delivery by fiscal year-end, and $400 million of cumulative annualized pretax benefit from our Accounts initiative. We made excellent progress toward our goals in the first Q1, putting us well on track to deliver or exceed our fiscal 2024 milestones for each of these initiatives. Through our alliances, we're building the portion of our customer relationships that include cloud-based content. In the Q1, we recognized more than $80 million in hyperscaler-related revenue, putting our run rate ahead of our $300 million full-year target. We've also continued to increase our hyperscaler certifications to more than 37,000, which is 70% higher than a year ago. Our growth stems from joint enablement activities with our partners, co-marketing to enterprise customers, and incremental training programs, all of which help us deliver higher-value solutions that address customers' most pressing needs. Our Advanced Delivery initiative is transforming the way we deliver our services with automation tools and resources. To date, we've been able to free up more than 6,500 delivery professionals to address new revenue opportunities and to backfill attrition. This is worth roughly $375 million a year to us, representing a $75 million increase in our annual run rate this past quarter. We continue to see significant automation opportunities across our delivery operations as we improve service levels, reduce our costs, and incorporate more technology, including Kyndryl Bridge, into our offerings. Our Accounts initiative has been and will continue to be a global effort focused on fixing elements of contracts with substandard margins. We're a trusted partner for our customers, and that trust is what brings our customers to the table. In the Q1, we've increased the annual profitability of our focus accounts to more than $300 million, which is a $90 million increase from our run rate just three months ago. More generally, we view successful execution of our three As as the clearest and fastest path toward achieving sustainable, profitable growth. Each quarter, there are additional customer examples that demonstrate our team's successful execution of our three As. The underlying theme among them is that the combination of our Alliances and our expanded capabilities, including Kyndryl Consult, Bridge, and Vital, is resonating with our customers and providing Kyndryl with new revenue streams and higher-value opportunities. Here are a few of my favorites from the Q1. With one banking customer, who we've been working with for over a decade, we recently expanded beyond our managed services to include Kyndryl Consult, will help the bank build and deploy AI into its core banking services. Second, in conjunction with a contract renewal with one of our largest customers, we expanded our scope of work to include Kyndryl Consult and AWS cloud migration and management. With one of our largest- larger focus accounts that was undergoing a digital transformation and becoming increasingly unprofitable for us, we're adding Consult, we're adding mainframe modernization and cloud-based work, and we're accelerating our customer's digital transformation while removing third-party purchases that were uneconomic for us and fixing the margins associated with the account. Innovation, innovation that is practical and useful is what's allowing Kyndryl to show up differently for our customers. Kyndryl Bridge is an open integration services platform powered by AI and machine learning that we offer to our customers to accelerate automation, drive efficiencies, enhance Security and Resiliency, and create a more sustainable technology estate. We have more than 500 enterprise customers operating on Kyndryl Bridge, with more than 1,000 expected by the end of the year. We recently announced that we're helping these customers both reduce risk and save more than $1 billion annually through their early adoption of Kyndryl Bridge. Now, we view artificial intelligence as a multifaceted opportunity for us, as we both apply AI in our operations and enable our customers to use AI in their business. AI is already driving enhanced operating performance in applications like Kyndryl Bridge, is beginning to generate revenue growth opportunities as customers need additional help with data architecture and to implement AI at scale, it's going to allow us as an organization to operate more efficiently. We're not going to make AI our fourth A, but we clearly see it as an accelerator of our Advanced Delivery initiative, a component of our Alliances growth, and a source of future cost savings opportunities. In fact, this week, we'll announce that we're working with Microsoft to help our customers accelerate the responsible adoption of generative AI solutions in their enterprises. In another area where innovation is critical, we've recently announced that we significantly expanded the end-to-end cybersecurity services we offer, enabling enterprise customers to detect, respond to, and recover from cyberattacks. We're opening next-generation security operations hubs in key geographies around the world, which will enable Kyndryl's already $2 billion Security and Resiliency practice to expand our presence into this nearly $50 billion market. By offering security operations as a unified modular platform, we enable customers to retain existing security investments while augmenting their infrastructure with new services. To sum up, we are highly enthusiastic about our recent results and the path in front of us, and we're confident we have the right strategy in place to drive progress. We have the right leadership, talent, know-how, and alliances to execute our business transformation, and our fiscal 2023 and Q1 2024 results, including our execution against the 3As, gives us strong, positive momentum. Looking ahead, we'll use our intellectual property, our alliances, and our scale to further expand our capabilities, to differentiate ourselves in the markets we serve, and to strengthen our leadership position. We're engaging with customers and IT decisions further up the technology stack, including discussions about how to enable AI in their businesses. Our unmatched expertise in mainframe modernization and hybrid IT environments allows us to provide thought leadership with Kyndryl Consult, deliver innovation with Kyndryl Bridge, and meet our customers' objectives for robust application of new technologies. We're capitalizing on growth opportunities across our practices, and particularly in Cloud, Security, Network and apps, and Data and AI. In short, we're engaging with customers where they want us to be, at the center of a collaborative relationship in which technology drives business outcomes in a reliable, secure way. This is allowing us to access incremental market opportunities to grow our share of wallet with existing customers, to win new customers, and to transform Kyndryl. Now, with that, I'll hand over to David to take you through our results and our outlook. Thanks, Martin. Hello, everyone. Today, I'd like to discuss our quarterly results, our balance sheet and liquidity, how we're raising our outlook for fiscal year 2024, and the progress we're making on our focus accounts. Our Q1 results reflect strong operational execution and remarkable progress on our key initiatives. In the quarter, revenue totaled $4.2 billion, a 1% decline in constant currency. Demand for our services has remained resilient, we continued to gain momentum in higher-margin advisory services. While our Q1 signings were down 5% year-over-year in constant currency, through July 31, our year-to-date signings are up 9%. Kyndryl Consult revenues grew 20% year-over-year in constant currency and represented 14% of total revenue in the quarter, the highest percentage ever. This performance reflects how our post-spin opportunities for growth in Kyndryl Consult services are outweighing the macro issues pressuring some other firms. Our adjusted EBITDA grew 25% year-over-year to $612 million. Our adjusted EBITDA margin was 14.6%, a year-over-year increase of 310 basis points. adjusted pretax income was $47 million, a $97 million improvement in profit compared to the prior year quarter. Our continued and substantial progress on our three As is what's driving our results, and more than offset the year-over-year software cost increases we faced. We address our customers' needs through our geographic operating segments and also through our six global practices: cloud, applications, data and AI, security and resiliency, network and edge, digital workplace, and core enterprise. Our business mix continues to evolve to reflect demand, with most of our signings, including Kyndryl Consult signings, coming from cloud, apps, Data and AI, security, and other growth areas. More generally, as we look back on the quarter, we're thrilled to have delivered results that position us to exceed the full-year earnings targets we laid out in May, as I'll discuss momentarily. Turning to our cash flow and balance sheet, our adjusted free cash flow was negative $106 million in the quarter, entirely due to timing effects. Our gross capital expenditures were $100 million, and we received $6 million of proceeds from asset dispositions. The negative adjusted free cash flow in Q1 does not change our expectation that full-year adjusted free cash flow will be positive. In fact, our cash flow seasonality in Q1 stems from annual incentive payments that were accrued throughout the prior fiscal year, but paid out in the June quarter, as well as payments for software licenses that were made in Q1, but will be amortized in future periods. As a result, the seasonal items that caused our Q1 adjusted free cash flow to be negative will reverse over the course of the year. We provided a bridge from our adjusted pretax income to our free cash flow, and based on feedback from some investors, we've also provided a bridge from our adjusted EBITDA to our free cash flow in the appendix. Our financial position remains strong. Our cash balance at March 31 was $1.5 billion. Our cash balance, combined with available debt capacity under committed borrowing facilities, gave us nearly $5 billion of liquidity at quarter end. Our debt maturities are well-laddered from late 2024 to 2041. We had no borrowings outstanding under our revolving credit facility, and our net debt at quarter end was $1.8 billion. As a result, our net leverage sits well within our target range. We are rated investment grade by Moody's, Fitch, and S&P. There's no change in our approach to capital allocation. Our top priorities continue to be to maintain strong liquidity, remain investment grade, and reinvest in our business. Our full-year adjusted free cash flow will help fund spin-related cash outlays, including required systems migrations and workforce rebalancing costs. Over time, Kyndryl's leadership position in IT infrastructure services, combined with benefits from our 3A initiatives, should allow us to significantly expand our margins and our free cash flow, and ultimately, be in a position to consider regularly returning capital to shareholders, all while remaining investment grade. In executing our Accounts initiative, we're paying close attention to the margins on signings for both our focus accounts and our blueprint accounts. Immediately following the spin, we were signing business with an expected gross margin of roughly 20% and a pre-tax margin in the mid-single digits. These signings themselves represented higher margins than the roughly break-even pre-spin deals that were generating the bulk of our revenues. Over the last 12 months, we've combined pricing discipline and collaborative engagement with customers to move our projected margins on all new signings up to the mid-20s for gross profit and the high single digits for pre-tax profit. The June quarter was a continuation of that favorable trend. Importantly, what this means is that in the six full quarters we've been independent, we've been signing agreements that fully support the medium-term margins we're aiming for. In fact, if our P&L reflected only our recently signed deals, we'd be operating at mid-to-high single-digit adjusted pretax margins. Because of the prevalence of multi-year contracts in our business, most of our revenue is still coming from lower-margin, pre-spin legacy signings. As a result, you can't currently see in our overall results the full benefit of the higher margins at which we're now pricing contracts. That will change with time as our business mix increasingly shifts toward more post-spin contracts. In fact, next year, our fiscal 2025, about half of our revenue will be coming from contracts signed post-spin. That will move up to two-thirds in fiscal 2026, and in the fiscal year ending in March 2027, more than 85% of our revenue will be from post-spin signings. When most of our revenue reflects our post-spin efforts, we anticipate that our pretax margins will move into the high single digits. We're eager for the higher margins flywheel that we started to turn to gain momentum. As Martin mentioned, we continue to progress on our 3A initiatives. Our momentum supports our continued expectation that our Alliances initiative will drive signings, revenue, and over time, roughly $200 million in annual pretax income. Our Advanced Delivery initiative will drive cost savings, equating over time to roughly $600 million in annual pretax income. Our Accounts initiative will drive annual pretax income of $800 million or more. We're also driving growth in Kyndryl Consult and among our global practices, which is incremental to the benefits coming from our 3A initiatives. We see opportunities to control expenses throughout our business, including through the workforce actions we've taken. We expect that these efforts over time, will contribute roughly $400 million in annual pre-tax income. In total, the magnitude of the earnings growth opportunity we're tackling is tremendous relative to our current margins. Progress on our 3A's is a central source of value creation for Kyndryl. With a strong first fiscal quarter to build on, we're raising our profit outlook for this fiscal year. We expect to expand our margins, largely due to the 3A initiatives and actions we've taken to drive efficiency. We're raising our adjusted EBITDA margin outlook significantly to roughly 14%. This represents an increase of 240 basis points versus fiscal 2023. We now expect our adjusted pretax income to be at least $100 million, which implies a more than 190 basis point increase compared to last year. The actions we're taking and the progress we're making would have an even larger impact, but for the 125 basis points of margin headwinds that are associated with the $200 million IBM software cost increase we face. We expect our focus accounts to contribute at least $200 million more profit this year than last, and we expect our Advanced Delivery initiative to generate at least $200 million of incremental savings this year. Real estate consolidation, workforce rebalancing, growth in Kyndryl Consult, our pricing strategies, and other actions are all contributing to our margin growth. Our outlook for revenue continues to be a year-over-year decline of 6% - 8% in constant currency, which translates to $15.8 billion - $16.2 billion based on recent exchange rates. To be clear, the year-over-year revenue decline we're projecting is primarily due to the soft backlog of fiscal 2024 revenue we were born with, plus intentional near-term actions we're taking to transform our business. These changes typically involve removing selected, low or negative margin scope from ongoing customer relationships. For the September quarter, on a year-over-year basis, we expect revenues to decline in the low to mid-single digits in constant currency, and for adjusted pretax income to be slightly positive. This will represent a year-over-year improvement in adjusted pretax margin of at least 250 basis points. As I mentioned, we expect adjusted free cash flow to be positive this fiscal year. We project roughly $750 million of net capital expenditures and about $850 million of depreciation expense. We also expect about $300 million of cash outlays for separation-related work, primarily systems migrations, and for workforce rebalancing actions. This will be the last year in which we incur spin-related charges. We expect our adjusted earnings to move closer to our reported GAAP earnings over time. In fact, next year, our principal adjustments should be only non-cash stock-based comp and non-cash intangibles amortization. As Martin highlighted, we remain committed to returning to revenue growth by calendar 2025, and over the medium term, delivering significant margin expansion and free cash flow growth. We have a solid game plan to drive our strategic progress, and this game plan starts with the steps we've already taken to expand our technology alliances, manage our costs, and earn a return on all of our revenues. As we've discussed previously, our aggregate results obscure the fact that within Kyndryl, we started with a strong, nearly $10 billion business, which we refer to as a blueprint for how we want to operate. This blueprint consists of accounts that represent about 60% of our revenue, generate average gross margins north of 20%, and reflect our ability to get paid appropriately for the mission-critical services we provide. Our other roughly $8 billion of focus accounts revenue was generating virtually no gross margin, and after SG&A expenses, was losing money. Our Accounts initiative is all about the opportunity to make our focus accounts look more like the majority blueprint accounts of our business by addressing elements of our customer relationships that generate substandard margins. Our $800 million target for the Accounts initiative relies on us closing only about half the gross margin gap between our focus accounts and our blueprint accounts. That's why our Accounts initiative is a major priority and a major opportunity for us. We're making tremendous progress toward this opportunity, and that progress has accelerated over the last six months. In fiscal 2024, we expect to have remedied the margins on roughly 40% of our focus accounts revenue. As we've said, most of the progress we're making comes in the form of significantly increasing our margins as part of our ongoing customer relationships, including situations where our margins were quite negative. Only rarely are we exiting a customer relationship, although that remains something we're willing to do if necessary. When we look out over the next few years, we expect more than 80% of our focus accounts to have been addressed by March 2027, consistent with our expectation that our Accounts initiative will ultimately contribute $800 million or more to our annual pre-tax earnings. In short, as I look at focus accounts, Advanced Delivery, our technology Alliances, and our actions to drive efficiency, I'm incredibly enthusiastic about our progress and our prospects. Martin, back to you. Thank you, David. Let me reiterate, annual losses are behind us. We remain committed to delivering revenue growth in calendar 2025. As a result, we will deliver the profit goals we've previously shared on the timelines we've previously shared. As an independent company, we're solidifying our position as a cost-effective, gold-standard provider of essential IT services that combine multiple technologies. We're executing fervently on the strategies and initiatives that will drive longer-term progress, future growth, and stronger earnings in our business. With that, David and I would be pleased to take your questions. Thank you. Ladies and gentlemen, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question coming from the line of Tien-Tsin with J-, Tien-Tsin Huang with JP Morgan. You want to start then? Great, thank you so much. Obviously, great execution here on the margins. I want to ask on, on Kyndryl Consult, if you don't mind. It seems like it's defying some of the macro pressure that some of your peers have seen on, on short cycle work. I, I'm curious, what, what's driving differentiation in your view? I, I know this is obviously in a different starting point with, with Consult, but it does seem like it's a pretty consistent pressure point for, for, for the peer group. What are you seeing on the ground that's driving the difference? Yeah. Thanks, Tingen, and good morning. Thanks for joining the call. Look, Kyndryl Consult, as we've always said, sits in sort of a unique position in the marketplace, given the our knowledge of our customers' environments, given the role we play, and quite frankly, in any macro environment, things that we do, cybersecurity, resiliency, helping customers use AI, data architecture required, et cetera, et cetera, all of these things are not as subject, if you will, to macro, because our customer base needs to continue to move forward in the macro environment. Kyndryl Consult. which again, in our, in our sort of unique spot in the marketplace, we expect, we continue to expect to have a, a good long, a good long run of double-digit growth, including, you know, another good year of signings growth. As we said in the prepared remarks, you know, when we, when we sort of, when we turned this into a focus for us at Kyndryl, we said it would be, you know, 15% of our business. At the time, it was only 10% of our business. We're now, you know, we're now saying it's, it's going to be 20%, pretty, pretty quickly here. I think it's the answer to your question, I think it's the role we play in our customer environments, the capabilities that we're building around where our customers are still continuing to invest, and the ecosystem in which we're part of, all say that this will see a good long-term tailwind for revenue and for signings growth for us. Yeah. No, glad to hear it. Glad to hear it. Just my follow-up question is just on, on margins, on signings in general. I know, David, it sounds like the margins you're getting on newer stuff is, is actually quite good or better. Similar question, I know a lot of peers, including others that reported this morning, talked about, you know, pricing pressure, bill rate pressure, as clients in the procurement office are trying to, you know, be more mindful on, on cost. Just curious, same, same kind of question. Are you observing towards some pricing? Are you turning away some deals, or is, is the, the workflow you're seeing, you know, up to your standards in terms of pricing? Thank you. Yeah. Thanks, Tien-Tsin. I, I think we're in a similar position to what Martin was talking about with Consult, where we have opportunities that are unique to us, to change the way we're pricing, certain contracts, certain elements of what we do. We really feel a need to be in a different spot, with respect to margins, and that informs how we approach pricing. As a result, I, I think we've been able to repair focus accounts and move the pricing that we have there, in many cases, up to a, a market, a market price, and that's how we're enhancing margins and able to get significant, price increases on renewals because it's a movement up to market levels. The other thing that I, I think is really interesting is that when you look at our, our signings over the last year and the margins on which we've been signing business in the mid-twenties for, for gross margins, that actually means that our gross profit on signings has been, you know, in the range of $3 billion during a period of time when our reported gross profit was about $2.6 billion-$2.7 billion. What our pricing and our signings are doing for us is actually driving a gross profit book-to-bill of 1.15 times. We're putting more gross profit into the hopper than we're reporting. I feel really good about the impact that our, that our, our pricing initiatives and, and our pricing discipline, are having on, you know, on the way we're building our business. Good stuff. Thank you, guys. Thanks, Tianjin. Operator, next question, please. Thank you. Our next question coming from the line of Jamie Friedman with Susquehanna International. Hi. Good morning. Let me echo the congratulations. A lot of hard work here. I was wondering if you could double-click on this slide 19. I think, David, you commented on it in your prepared remarks. It's the one that breaks out the services, and you had some comments on demand, but I was hoping you could elaborate on, on those. It might be a helpful perspective. Sure. This is the services that we have, the practices that we go to market with are a really important axis for the way we operate and look to grow the business. I think one of the things that a few of the things that are worth mentioning, first, Cloud and cloud-related activity is a very significant part of what we do, representing about one-third of our revenue. With the hyperscaler alliances we have, that's a significant growth opportunity for us. Security and Resiliency is a really important area for us as well. We recently put out a release about some of the additional and new things we're doing in that space, and I see that continuing to be a growth opportunity. Applications, data, and AI, particularly with, with everything that's, you know, going on with respect to generative AI, is going to be a significant growth opportunity for us as well. As Martin mentioned on the call, we expect to have an announcement, a further announcement on that topic this week as well. You know, one of my colleagues likes to point out that, that your, you know, that, that, that your AI is only as good as your data. For us, data architecture, data availability, data protection are going to be a really important part of the discussions that we have with customers as we help them facilitate the use of more AI in their own businesses. We see that as an opportunity. Digital Workplace continues to be a hot topic in the post-pandemic environment and the hybrid work environments of today. Then, you know, as we look at our Core Enterprise and zCloud business, you know, we're in a situation where hybrid environments are going to continue to be a really important dynamic for large enterprises. As a result, we see that portion of our business, and particularly mainframe modernization, as being a, you know, an important source of revenues and signings for us, going forward as well. Yeah, one thing to add, Jamie, I think David did a nice job of sort of the pieces. When you step back and think about how we, how we created and built Kyndryl, through discussions, a lot of discussions with our customers, just prior to spin, as we were setting ourselves up, the practices that we're building really reflect the Venn diagram of three questions that we ask them. One is, you know, where, where do we provide value to you today? The second one was, where are you investing and where are you, where are you going to grow? Then third, where do you give us brand permission to play? So, you know, from our heritage, we obviously were adding a lot of value already in the Core Enterprise and zCloud. We were adding a lot of value in Digital Workplace, et cetera. The other four that we've created and that we're building our capabilities in, were really the where are you investing and where do you give us brand permission? There is a very strong customer demand element to the way we built our and are creating our, or have created our practices, that is driving demand for us. If I could just follow up, Martin, maybe to you. How would you characterize the macro? Because I think that most companies in service, at least the ones I'm responsible for, they step back so far, year to date. When I look at your bookings, you're actually up through July, if I'm reading this right. How would you characterize the macro, or is it more like Kyndryl's making its own weather, and it's not that relevant? Look, the, the macro, we, we, we still operate within a macro environment is real to our customers, and therefore, it's real, it's real to us as well. However, having said that, we do sit in a rather unique position, given the role we play in mission-critical. Maybe what you're seeing, or, you know, I guess one of the ways I think about this is, this is the difference between what Kyndryl does, which is mission-critical, and what others may do, which maybe is more discretionary. No matter what the macro is, I will, I will, I would suggest there is not going to be any recession in cybersecurity, for instance. I would suggest that every company has figured out that resiliency is what matters in addition to cybersecurity, as well. You know, every company is trying to figure out how to use AI, and as David said, well, that, for us, is a tailwind in, in our ability to help them with data architecture, data management, et cetera, et cetera, et cetera. I do think that the macro matters. It is certainly, it certainly may reprioritize what some of our customers do, but the role we play in the world and our, our unique perspective in mission-critical, I think, suggests that we are not only insulated from it, but we can actually help them with some of their challenges as they try to get through whatever the macro is. Got it. Thank you. Thanks, Jamie. Operator, do we have another question? Yes, one moment for our next question. Our next question coming from the line of Divya Goyal with Scotiabank. Your line is open. Good morning, everyone. Great quarter. I just wanted to get some more color on Kyndryl Consult. Kyndryl Consult, as you mentioned, it's one of the higher margin streams that you're seeing here. How do you expect to convert these advisory services into execution? How can we ascertain the longevity of these revenues there? Thanks, Divya. with respect to Consult, the normal cadence for some of this work is that it, it gives rise to a discussion of, you know, what an enterprise needs to do to achieve a particular business objective, or to address a particular challenge that, that it has. And as a result, it's almost natural for this to give rise, for a Consult assignment to give rise to, you know, sort of planning and analysis around an issue to implementation of change, and then often a managed services tail associated with it. So one of the things we really like about the Consult is, well, two of the things we like. One is that itself, it tends to be a higher margin. The second, it's a creator of the annuity-type revenue streams that are the core part of our business. It, it ends up being beneficial both for, you know, near term, generating revenues, generating margin, but also creating value from a longer-term perspective as well. That's really one of the key reasons why it's such an area of focus for us. The third element that Martin mentioned earlier is that it also changes the position that we're in, the role that we're playing with respect to our customers. It moves us up the technology stack. It, it has us interacting in some different ways with customers that allows us to add more value and be involved in more strategic conversations. For all- you know, these are all reasons why Kyndryl Consult sits at the heart of some of our strategic work, because it has so many attributes that are so attractive. Yeah, just one thing I'd add, Divya, I think David said it well, remember also that with Kyndryl Bridge what Kyndryl Bridge is providing in terms of insights to our customers, given not only our own IP machine learning AI, but also the data pool we have. Kyndryl Bridge is also acting as a bit of a, a demand generator for us because it's offering customers insights that they didn't have before, obviously, we're, we're helping them think through how might they address, what Bridge is helping them understand, what Bridge is giving them visibility to, and what, what Bridge is, is sort of, helping them to optimize within their own system. Kyndryl Bridge has proven not just to be a, you know, terrific way for us to deliver, and as we said earlier in the month, we have it in 500 accounts, already on its way to 1,000. It's not only helping us with how we deliver and how we automate, it's giving us great insights, it's giving our customers great insights in how to run better as well. That is also a good. That's also a really strong demand pull for our consult business. Thanks, Martin. You took my follow-up already. Oh, sorry. Maybe I'll just add in a quick question here. David, could you help us understand a little bit on the one-time cost, and what's the best way for us to sort of model it on a go-forward basis? Sure. The two most significant costs that, that we have called below the line this year are spin-related costs related to our systems migration and workforce rebalancing costs tied to the program that we implemented beginning in March, and that's been playing out over the last several months to, to drive efficiency in our operations. With respect to the spin-related costs, those are going to be done this year. Our systems migrations will be done. We won't have any spin-related costs going forward, so that element, you know, disappears. Then, with respect to workforce rebalancing, we're really viewing this as a one-time action that we've been implementing here. As I, I mentioned in the prepared remarks, we really see our, our adjusted results converging, more toward our, our GAAP results over time, since we know, spin-related costs are, are going away. You know, we're, we're not, you know, we're, we're not forecasting, additional, workforce rebalancing costs after the, the program we're currently executing. Thanks, everyone. Thanks, Divya. Operator, I believe that's our questions, correct? Correct. I see no further questions in the queue at this time. I will now turn the call back over to Mr. Martin Schroeter for any closing remarks. tor, and thanks, everyone, everyone for joining us today. Look, as I hope you have a sense, you know, we have made significant progress in driving our earnings, which obviously, as we, as we talked a little bit about in our prepared remarks, those earnings will convert into free cash flow over the medium term as we, as we come out of, as we come out of spin-related costs, et cetera, et cetera, et cetera. We feel really good about how we're positioned. Hopefully, you get a sense of the energy here at Kyndryl around turning around the business, and we're excited about the opportunity ahead. Thanks again for joining us, and we'll talk to you 90 days. Ladies and gentlemen, that concludes our conference for today. Thank you for your participation. You may now disconnect.