Connect with us

Technology

IBM RELEASES SECOND-QUARTER RESULTS

Published

2 years ago

on

Accelerated revenue growth led by Software; Raises full-year free cash flow expectation

ARMONK, N.Y., July 24, 2024 /PRNewswire/ — IBM (NYSE: IBM) today announced second-quarter 2024 earnings results.

“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,” said Arvind Krishna, IBM chairman and chief executive 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.” 

Second-Quarter Highlights

Revenue
– Revenue of $15.8 billion, up 2 percent, up 4 percent at constant currency
– Software revenue up 7 percent, up 8 percent at constant currency
– Consulting revenue down 1 percent, up 2 percent at constant currency
– Infrastructure revenue up 1 percent, up 3 percent at constant currency
Profit Margin
– Gross Profit Margin: GAAP: 56.8 percent, up 180 basis points; Operating (Non-GAAP): 57.8 percent, up 190 basis points
– Pre-Tax Income Margin: GAAP: 14.1 percent, up 110 basis points; Operating (Non-GAAP): 17.7 percent, up 220 basis points
Cash Flow
– Year to date, net cash from operating activities of $6.2 billion, down $0.2 billion; free cash flow of $4.5 billion, up $1.1 billion
– Over the last twelve months, net cash from operating activities of $13.8 billion; free cash flow of $12.3 billion

SECOND QUARTER 2024 INCOME STATEMENT SUMMARY

 

Revenue

 

Gross

Profit

 
 

Gross
Profit
Margin

 
 

Pre-tax

Income

 

Pre-tax

Income

Margin

 

Net

Income

 

Diluted

Earnings

Per Share

GAAP from
Continuing
Operations

$   15.8 B

 
 

$   8.9 B

 
 

56.8

%

 

$  2.2 B

 
 

14.1

%

 

$     1.8 B

 
 

$     1.96

 

Year/Year

2

%(1)

 

5

%

 

1.8

Pts

 

11

%

 

1.1

Pts

 

16

%

 

14

%

Operating

(Non-GAAP)

 
 
 

$   9.1 B

 
 

57.8

%

 

$  2.8 B

 
 

17.7

%

 

$     2.3 B

 
 

$     2.43

 

Year/Year

 
 
 

5

%

 

1.9

Pts

 

17

%

 

2.2

Pts

 

14

%

 

11

%

(1)  4% at constant currency.

“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,” said James Kavanaugh, IBM senior vice president and chief financial officer. “Our strong cash generation enables us to continue investing in innovation and expertise across the portfolio, while returning value to shareholders through dividends.”

Segment Results for Second Quarter

Software — revenues of $6.7 billion, up 7.1 percent, up 8.4 percent at constant currency:
– Hybrid Platform & Solutions up 5 percent, up 6 percent at constant currency:
      — Red Hat up 7 percent, up 8 percent at constant currency
      — Automation up 15 percent, up 16 percent at constant currency
      — Data & AI down 3 percent, down 2 percent at constant currency
      — Security up 2 percent, up 3 percent at constant currency
– Transaction Processing up 11 percent, up 13 percent at constant currency

Consulting — revenues of $5.2 billion, down 0.9 percent, up 1.8 percent at constant currency:
– Business Transformation up 3 percent, up 6 percent at constant currency
– Technology Consulting down 3 percent, up 1 percent at constant currency
– Application Operations down 4 percent, down 2 percent at constant currency

Infrastructure — revenues of $3.6 billion, up 0.7 percent, up 2.7 percent at constant currency:
– Hybrid Infrastructure up 4 percent, up 6 percent at constant currency
      — IBM Z up 6 percent, up 8 percent at constant currency
      — Distributed Infrastructure up 3 percent, up 5 percent at constant currency
– Infrastructure Support down 5 percent, down 3 percent at constant currency

Financing — revenues of $0.2 billion, down 8.3 percent, down 6.6 percent at constant currency

Cash Flow and Balance Sheet

In the second quarter, the company generated net cash from operating activities of $2.1 billion, down $0.6 billion year to year. IBM’s free cash flow was $2.6 billion, up $0.5 billion year to year. The company returned $1.5 billion to shareholders in dividends in the second quarter.

For the first six months of the year, the company generated net cash from operating activities of $6.2 billion, down $0.2 billion year to year. IBM’s free cash flow was $4.5 billion, up $1.1 billion year to year. Over the last twelve months, the company generated net cash from operating activities of $13.8 billion and free cash flow of $12.3 billion.

IBM ended the second quarter with $16.0 billion of cash, restricted cash and marketable securities, up $2.5 billion from year-end 2023. Debt, including IBM Financing debt of $11.1 billion, totaled $56.5 billion, flat year to date.

Full-Year 2024 Expectations

Revenue: The company continues to expect constant currency revenue growth consistent with its mid-single digit model. At current foreign exchange rates, currency is expected to be about a one to two-point headwind to revenue growth
Free cash flow: The company now expects more than $12 billion in free cash flow

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

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;
net cash from operating activities excluding IBM Financing receivables;
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.

For generative AI, book of business includes Software transactional revenue, SaaS Annual Contract Value and Consulting signings.

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-2q24. 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
June 30,

 
 

Six Months Ended
June 30,

 
 

2024

 
 

2023 (1)

 
 

2024

 
 

2023 (1)

 

REVENUE BY SEGMENT

 
 
 
 
 
 
 
 
 
 
 

Software

$                   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

 

Other

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

 
 
 
 
 
 
 
 
 
 
 

Software

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

 

Intellectual property and custom development income

(241)

 
 

(248)

 
 

(458)

 
 

(428)

 

Other (income) and expense

(233)

 
 

(261)

 
 

(550)

 
 

(506)

 

Interest 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/(Benefit from) income taxes

389

 
 

419

 
 

(112)

 
 

543

 

Effective tax rate

17.5

%

 

21.0

%

 

(3.4)

%

 

17.8

%

 
 
 
 
 
 
 
 
 
 
 
 

INCOME FROM CONTINUING OPERATIONS

$                   1,830

 
 

$                   1,581

 
 

$                   3,405

 
 

$                   2,515

 
 
 
 
 
 
 
 
 
 
 
 
 

DISCONTINUED OPERATIONS

 
 
 
 
 
 
 
 
 
 
 

Income/(loss) from discontinued operations, net 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

 
 
 
 
 
 
 
 
 
 
 

Continuing 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

 
 
 
 
 
 
 
 
 
 
 
 
 

Basic

 
 
 
 
 
 
 
 
 
 
 

Continuing 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

 

Basic

920.3

 
 

909.9

 
 

918.7

 
 

908.7

 

____________________

 

(1)  Recast to reflect January 2024 segment changes.

 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

 

(Dollars in Millions)

 

At
June 30,
2024

 

At
December 31,
2023

ASSETS:

 
 
 
 

Current Assets:

 
 
 
 

Cash and cash equivalents

 

$                   12,210

 

$                   13,068

Restricted cash

 

2,268

 

21

Marketable securities

 

1,481

 

373

Notes and accounts receivable – trade, net

 

5,769

 

7,214

Short-term financing receivables, net

 

5,799

 

6,793

Other accounts receivable, net

 

757

 

640

Inventories

 

1,234

 

1,161

Deferred costs

 

997

 

998

Prepaid expenses and other current assets

 

2,784

 

2,639

Total Current Assets

 

33,299

 

32,908

 
 
 
 
 

Property, plant and equipment, net

 

5,600

 

5,501

Operating right-of-use assets, net

 

3,130

 

3,220

Long-term financing receivables, net

 

5,483

 

5,766

Prepaid pension assets

 

7,630

 

7,506

Deferred costs

 

820

 

842

Deferred taxes

 

6,378

 

6,656

Goodwill

 

59,416

 

60,178

Intangibles, net

 

10,251

 

11,036

Investments and sundry assets

 

1,840

 

1,626

Total Assets

 

$                  133,848

 

$                  135,241

 
 
 
 
 

LIABILITIES:

 
 
 
 

Current Liabilities:

 
 
 
 

Taxes

 

$                      1,691

 

$                      2,270

Short-term debt

 

3,602

 

6,426

Accounts payable

 

3,631

 

4,132

Deferred income

 

13,643

 

13,451

Operating lease liabilities

 

762

 

820

Other liabilities

 

6,319

 

7,022

Total Current Liabilities

 

29,648

 

34,122

 
 
 
 
 

Long-term debt

 

52,929

 

50,121

Retirement related obligations

 

10,200

 

10,808

Deferred income

 

3,489

 

3,533

Operating lease liabilities

 

2,546

 

2,568

Other liabilities

 

10,932

 

11,475

Total Liabilities

 

109,745

 

112,628

 
 
 
 
 

EQUITY:

 
 
 
 

IBM Stockholders’ Equity:

 
 
 
 

Common stock

 

60,501

 

59,643

Retained earnings

 

151,659

 

151,276

Treasury stock — at cost

 

(169,815)

 

(169,624)

Accumulated other comprehensive income/(loss)

 

(18,319)

 

(18,761)

Total IBM Stockholders’ Equity

 

24,026

 

22,533

 
 
 
 
 

Noncontrolling interests

 

77

 

80

Total Equity

 

24,103

 

22,613

 
 
 
 
 

Total Liabilities and Equity

 

$                 133,848

 

$                 135,241

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW ANALYSIS

(Unaudited)

 
 
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

Trailing Twelve
Months Ended
June 30,

(Dollars in Millions)

 

2024

 

2023

 

2024

 

2023

 

2024

Net Cash from Operations per GAAP

 

$            2,066

 

$            2,638

 

$         6,234

 

$            6,412

 

$                      13,752

 
 
 
 
 
 
 
 
 
 
 

Less: change in IBM Financing receivables

 

(946)

 

50

 

951

 

2,028

 

156

Capital Expenditures, net

 

(399)

 

(487)

 

(761)

 

(944)

 

(1,305)

 
 
 
 
 
 
 
 
 
 
 

Free Cash Flow

 

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)

Other (includes IBM Financing net receivables and debt)

 

(73)

 

(347)

 

(510)

 

(1,109)

 

(410)

 
 
 
 
 
 
 
 
 
 
 

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

 

$          (3,318)

 

$          (1,263)

 

$         2,497

 

$            7,489

 

$                            (370)

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

CASH FLOW

(Unaudited)

 
 
 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

(Dollars in Millions)

 

2024

 

2023

 

2024

 

2023

Net Income from Operations

 

$                     1,834

 

$                         1,583

 

$                     3,439

 

$                     2,511

Depreciation/Amortization of Intangibles (1)

 

1,155

 

1,076

 

2,287

 

2,150

Stock-based Compensation

 

316

 

288

 

636

 

556

Operating assets and liabilities/Other, net (2)

 

(293)

 

(359)

 

(1,079)

 

(832)

IBM Financing A/R

 

(946)

 

50

 

951

 

2,028

Net Cash Provided by Operating Activities

 

$                     2,066

 

$                         2,638

 

$                     6,234

 

$                     6,412

 
 
 
 
 
 
 
 
 

Capital Expenditures, net of payments & proceeds

 

(399)

 

(487)

 

(761)

 

(944)

Divestitures, net of cash transferred

 

–

 

6

 

703

 

6

Acquisitions, net of cash acquired

 

(153)

 

(334)

 

(235)

 

(356)

Marketable Securities / Other Investments, net

 

2,791

 

822

 

(1,679)

 

(6,659)

Net Cash Provided by/(Used in) Investing Activities

 

$                     2,239

 

$                                7

 

$                   (1,971)

 

$                   (7,953)

 
 
 
 
 
 
 
 
 

Debt, net of payments & proceeds

 

(2,900)

 

(1,135)

 

481

 

6,169

Dividends

 

(1,537)

 

(1,510)

 

(3,058)

 

(3,007)

Financing – Other

 

(78)

 

(86)

 

(61)

 

(185)

Net Cash Provided by/(Used in) Financing Activities

 

$                    (4,515)

 

$                       (2,731)

 

$                   (2,638)

 

$                     2,978

 
 
 
 
 
 
 
 
 

Effect of Exchange Rate changes on Cash

 

(76)

 

(25)

 

(236)

 

(1)

Net Change in Cash, Cash Equivalents and Restricted Cash

 

$                       (287)

 

$                          (110)

 

$                     1,389

 

$                     1,436

____________________

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

(2)  Includes the reduction of tax reserves. 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION

(Unaudited)

 
 
 

Three Months Ended

June 30,

 

Six Months Ended
June 30,

(Dollars in Billions)

 

2024

 

2023

 

Yr/Yr

 

2024

 

2023

 

Yr/Yr

Net Income as reported (GAAP)

 

$           1.8

 

$           1.6

 

$           0.3

 

$           3.4

 

$           2.5

 

$           0.9

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

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

Income from continuing operations

 

1.8

 

1.6

 

0.2

 

3.4

 

2.5

 

0.9

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

 

0.4

 

0.4

 

0.0

 

(0.1)

 

0.5

 

(0.7)

Pre-tax income from continuing operations (GAAP)

 

2.2

 

2.0

 

0.2

 

3.3

 

3.1

 

0.2

Non-operating adjustments (before tax)

 
 
 
 
 
 
 
 
 
 
 
 

Acquisition-related charges (1)

 

0.5

 

0.4

 

0.1

 

1.0

 

0.8

 

0.2

Non-operating retirement-related costs/(income)

 

0.1

 

0.0

 

0.1

 

0.2

 

0.0

 

0.2

 
 
 
 
 
 
 
 
 
 
 
 
 

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

 

2.8

 

2.4

 

0.4

 

4.4

 

3.8

 

0.6

 
 
 
 
 
 
 
 
 
 
 
 
 

Net interest expense

 

0.2

 

0.2

 

0.0

 

0.4

 

0.4

 

0.0

Depreciation/Amortization of non-acquired intangible assets

 

0.7

 

0.7

 

0.0

 

1.4

 

1.4

 

0.0

Stock-based compensation

 

0.3

 

0.3

 

0.0

 

0.6

 

0.6

 

0.1

Workforce rebalancing charges

 

0.0

 

0.1

 

(0.1)

 

0.4

 

0.4

 

0.0

Corporate (gains) and charges (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)   Primarily consists of amortization of acquired intangible assets. 

(2)   Corporate (gains) and charges primarily consists of unique corporate actions such as gains on divestitures. 

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

SEGMENT DATA

(Unaudited)

 
 
 

Three Months Ended June 30, 2024

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                       6,739

 
 

$                        5,179

 
 

$                        3,645

 
 

$                            169

 

Segment Profit

 

$                       2,113

 
 

$                           463

 
 

$                           654

 
 

$                              77

 

Segment Profit Margin

 

31.3

%

 

8.9

%

 

17.9

%

 

45.3

%

Change YTY Revenue

 

7.1

%

 

(0.9)

%

 

0.7

%

 

(8.3)

%

Change YTY Revenue – Constant Currency

 

8.4

%

 

1.8

%

 

2.7

%

 

(6.6)

%

 
 
 
 
 
 

Three Months Ended June 30, 2023 (1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                       6,294

 
 

$                        5,226

 
 

$                        3,618

 
 

$                            185

 

Segment Profit

 

$                       1,749

 
 

$                           483

 
 

$                           732

 
 

$                              64

 

Segment Profit Margin

 

27.8

%

 

9.2

%

 

20.2

%

 

34.8

%

____________________

(1) Recast to reflect January 2024 segment changes. 

 
 
 

Six Months Ended June 30, 2024

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                     12,637

 
 

$                      10,365

 
 

$                        6,721

 
 

$                           362

 

Segment Profit

 

$                       3,612

 
 

$                           888

 
 

$                           965

 
 

$                           168

 

Segment Profit Margin

 

28.6

%

 

8.6

%

 

14.4

%

 

46.5

%

Change YTY Revenue

 

6.3

%

 

(0.6)

%

 

0.1

%

 

(4.9)

%

Change YTY Revenue – Constant Currency

 

7.2

%

 

1.8

%

 

1.5

%

 

(4.0)

%

 
 
 
 
 
 

Six Months Ended June 30, 2023 (1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 

(Dollars in Millions)

 

 Software

 
 

Consulting

 
 

Infrastructure

 
 

Financing

 

Revenue

 

$                     11,885

 
 

$                      10,423

 
 

$                       6,716

 
 

$                           380

 

Segment Profit

 

$                       3,128

 
 

$                           910

 
 

$                       1,039

 
 

$                           164

 

Segment Profit Margin

 

26.3

%

 

8.7

%

 

15.5

%

 

43.2

%

__________

(1) Recast to reflect January 2004 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 June 30, 2024

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$       8,950

 
 

$                           170

 
 

$                               —

 
 

$                       —

 
 

$          9,120

 

Gross Profit Margin

56.8

%

 

1.1

pts

 

—

pts

 

—

pts

 

57.8

%

S,G&A

$       4,938

 
 

$                         (286)

 
 

$                               —

 
 

$                       —

 
 

$          4,651

 

Other (Income) & Expense

(233)

 
 

(18)

 
 

(98)

 
 

—

 
 

(349)

 

Total Expense & Other (Income)

6,730

 
 

(304)

 
 

(98)

 
 

—

 
 

6,328

 

Pre-tax Income from Continuing Operations

2,219

 
 

474

 
 

98

 
 

—

 
 

2,792

 

Pre-tax Income Margin from Continuing
Operations

14.1

%

 

3.0

pts

 

0.6

pts

 

—

pts

 

17.7

%

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

$          389

 
 

$                          113

 
 

$                              26

 
 

$                     (12)

 
 

$             516

 

Effective Tax Rate

17.5

%

 

1.1

pts

 

0.3

pts

 

(0.4)

pts

 

18.5

%

Income from Continuing Operations

$       1,830

 
 

$                          362

 
 

$                              72

 
 

$                      12

 
 

$          2,275

 

Income Margin from Continuing Operations

11.6

%

 

2.3

pts

 

0.5

pts

 

0.1

pts

 

14.4

%

Diluted Earnings Per Share: Continuing
Operations

$         1.96

 
 

$                         0.39

 
 

$                           0.08

 
 

$                   0.01

 
 

$            2.43

 
 
 
 
 

Three Months Ended June 30, 2023

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$       8,501

 
 

$                          150

 
 

$                               —

 
 

$                      —

 
 

$           8,650

 

Gross Profit Margin

54.9

%

 

1.0

pts

 

—

pts

 

—

pts

 

55.9

%

S,G&A

$       4,900

 
 

$                         (245)

 
 

$                               —

 
 

$                      —

 
 

$           4,655

 

Other (Income) & Expense

(261)

 
 

0

 
 

(1)

 
 

—

 
 

(262)

 

Total Expense & Other (Income)

6,501

 
 

(246)

 
 

(1)

 
 

—

 
 

6,254

 

Pre-tax Income from Continuing Operations

2,000

 
 

395

 
 

1

 
 

—

 
 

2,396

 

Pre-tax Income Margin from Continuing
Operations

12.9

%

 

2.6

pts

 

0.0

pts

 

—

pts

 

15.5

%

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

$          419

 
 

$                            87

 
 

$                               (3)

 
 

$                  (110)

 
 

$              393

 

Effective Tax Rate

21.0

%

 

0.2

pts

 

(0.2)

pts

 

(4.6)

pts

 

16.4

%

Income from Continuing Operations

$       1,581

 
 

$                          308

 
 

$                                5

 
 

$                   110

 
 

$           2,003

 

Income Margin from Continuing Operations

10.2

%

 

2.0

pts

 

0.0

pts

 

0.7

pts

 

12.9

%

Diluted Earnings Per Share: Continuing
Operations

$         1.72

 
 

$                         0.34

 
 

$                           0.00

 
 

$                  0.12

 
 

$             2.18

 

____________________

(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 $18 million on foreign
        exchange derivative contracts entered into by the company prior to the acquisition of StreamSets and webMethods from Software AG.

(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.

(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.

 

INTERNATIONAL BUSINESS MACHINES CORPORATION

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

(Unaudited; Dollars in millions except per share amounts)

 
 

Six Months Ended June 30, 2024

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts (3)

 
 

Operating

(Non-GAAP)

 

Gross Profit

$    16,692

 
 

$                         341

 
 

$                               —

 
 

$                   —

 
 

$         17,033

 

Gross Profit Margin

55.2

%

 

1.1

pts

 

—

pts

 

—

pts

 

56.3

%

S,G&A

$      9,912

 
 

$                       (554)

 
 

$                               —

 
 

$                   —

 
 

$           9,358

 

Other (Income) & Expense

(550)

 
 

(68)

 
 

(194)

 
 

—

 
 

(812)

 

Total Expense & Other (Income)

13,399

 
 

(622)

 
 

(194)

 
 

—

 
 

12,584

 

Pre-tax Income from Continuing Operations

3,293

 
 

963

 
 

194

 
 

—

 
 

4,449

 

Pre-tax Income Margin from Continuing
Operations

10.9

%

 

3.2

pts

 

0.6

pts

 

—

pts

 

14.7

%

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

$        (112)

 
 

$                         255

 
 

$                              31

 
 

$                436

 
 

$              610

 

Effective Tax Rate

(3.4)

%

 

6.5

pts

 

0.9

pts

 

9.8

pts

 

13.7

%

Income from Continuing Operations

$      3,405

 
 

$                         707

 
 

$                            163

 
 

$               (436)

 
 

$           3,839

 

Income Margin from Continuing Operations

11.3

%

 

2.3

pts

 

0.5

pts

 

(1.4)

pts

 

12.7

%

Diluted Earnings Per Share: Continuing
Operations

$        3.65

 
 

$                        0.76

 
 

$                           0.17

 
 

$              (0.47)

 
 

$             4.11

 
 
 
 
 

Six Months Ended June 30, 2023

 
 

Continuing Operations

 
 

GAAP

 
 

Acquisition-

Related

Adjustments (1)

 
 

Retirement-

Related

Adjustments (2)

 
 

Tax

Reform

Impacts

 
 

Operating

(Non-GAAP)

 

Gross Profit

$    16,010

 
 

$                         298

 
 

$                               —

 
 

$                   —

 
 

$         16,308

 

Gross Profit Margin

53.9

%

 

1.0

pts

 

—

pts

 

—

pts

 

54.9

%

S,G&A

$      9,754

 
 

$                       (491)

 
 

$                               —

 
 

$                   —

 
 

$           9,263

 

Other (Income) & Expense

(506)

 
 

(2)

 
 

4

 
 

—

 
 

(504)

 

Total Expense & Other (Income)

12,952

 
 

(493)

 
 

4

 
 

—

 
 

12,463

 

Pre-tax Income from Continuing Operations

3,058

 
 

791

 
 

(4)

 
 

—

 
 

3,845

 

Pre-tax Income Margin from Continuing
Operations

10.3

%

 

2.7

pts

 

0.0

pts

 

—

pts

 

12.9

%

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

$         543

 
 

$                         178

 
 

$                            (14)

 
 

$               (115)

 
 

$              593

 

Effective Tax Rate

17.8

%

 

1.0

pts

 

(0.3)

pts

 

(3.0)

pts

 

15.4

%

Income from Continuing Operations

$      2,515

 
 

$                         613

 
 

$                             10

 
 

$                115

 
 

$           3,252

 

Income Margin from Continuing Operations

8.5

%

 

2.1

pts

 

0.0

pts

 

0.4

pts

 

10.9

%

Diluted Earnings Per Share: Continuing
Operations

$        2.74

 
 

$                        0.67

 
 

$                          0.01

 
 

$              0.13

 
 

$             3.54

 

____________________

(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.

(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.

(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
June 30,

 

Six Months Ended
June 30,

(Dollars in Billions)

 

2024

 

2023

 

2024

 

2023

Net Cash Provided by Operating Activities

 

$           2.1

 

$           2.6

 

$           6.2

 

$           6.4

 
 
 
 
 
 
 
 
 

Add:

 
 
 
 
 
 
 
 

Net interest expense

 

0.2

 

0.2

 

0.4

 

0.4

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

 

0.4

 

0.4

 

(0.1)

 

0.5

 
 
 
 
 
 
 
 
 

Less change in:

 
 
 
 
 
 
 
 

Financing receivables

 

(0.9)

 

0.1

 

1.0

 

2.0

Other assets and liabilities/Other, net (1)

 

(0.4)

 

(0.5)

 

(1.5)

 

(1.2)

 
 
 
 
 
 
 
 
 

Adjusted EBITDA

 

$           4.0

 

$           3.7

 

$           7.1

 

$           6.5

____________________

(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-second-quarter-results-302205863.html

SOURCE IBM

Related Topics:
Continue Reading

Technology

Vertical IQ Will Expand Industry Intelligence Platform with Small Business Financial Exchange (SBFE) Small Business Credit Data

Published

29 minutes ago

on

October 27, 2026

By

RALEIGH, N.C., Oct. 27, 2026 /PRNewswire/ — Small Business Financial Exchange (SBFE), the trusted source for small business lending data and Vertical IQ, a nationally recognized provider of Industry Intelligence, today announced their partnership. Through the partnership, Vertical IQ will incorporate SBFE small business credit insights into its platform, providing financial institutions with deeper context to support commercial lending decisions.

The collaboration enables banks, credit unions, and other commercial lenders using Vertical IQ to gain access to SBFE small business credit insights within the Industry Intelligence platform. Default rates, delinquencies, and credit trends by industries are just a few of the SBFE features that will be included. These insights allow financial services professionals to better understand small business borrowers and support key commercial lending activities.

“At SBFE, we’re committed to helping lenders better understand and support small businesses. Extending access to SBFE insights through Vertical IQ is another way we can deliver value to the lending community and support greater access to capital.”

     – Elisabeth MacDonald, President and CEO, SBFE

“At Vertical IQ, we believe financial institutions make their best decisions when they have access to trusted, Verified Industry Intelligence powered by the highest-quality data available,” said Bobby Martin, co-founder and CEO of Vertical IQ. “Our partnership with SBFE represents another important step in that commitment by bringing highly respected small business credit insights into our platform. By combining SBFE’s credit data with Vertical IQ’s industry expertise, we’re helping lenders gain deeper context to strengthen credit analysis, improve risk assessment, and make more confident decisions throughout the commercial lending lifecycle.”

     – Bobby Martin, Co-founder and CEO, Vertical IQ

About SBFE

SBFE is the trusted data exchange where the small business lending industry comes together to strengthen access to capital for America’s small businesses. For more than 25 years, SBFE has united lenders in a member-driven community built on trust, collaboration, and the responsible use of data. Today, SBFE securely manages one of the nation’s largest repositories of small business credit data, contributed by more than 140 member institutions, including many of the country’s largest commercial banks. This data enables highly predictive credit reporting and portfolio management solutions that help lenders make more informed decisions, manage risk, and support the financial health and growth of small businesses. By transforming shared data into trusted lending intelligence, SBFE helps its members strengthen credit decisioning and promote greater access to capital. Learn more at www.SBFE.org

About Vertical IQ

Headquartered in Raleigh, North Carolina, Vertical IQ is a nationally recognized provider of Industry Intelligence. Whether discussing cash management with a local brewery or evaluating risk for a large manufacturing company, successful banks, credit unions, accounting firms, insurance organizations, and advisory firms use Vertical IQ to better understand a prospect’s or client’s business challenges before, during, and after meetings. Covering 100% of the industries that comprise the U.S. and Canadian economies, as well as more than 3,400 local economic reports, Vertical IQ equips professionals with the confidence and credibility to build stronger client relationships and make more informed decisions. Learn more at www.verticaliq.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/vertical-iq-will-expand-industry-intelligence-platform-with-small-business-financial-exchange-sbfe-small-business-credit-data-302920872.html

SOURCE SBFE

Continue Reading

Technology

CME Group Brazilian Real Futures Set New Daily Volume Record Following Election

Published

29 minutes ago

on

October 27, 2026

By

Record $9 billion notional traded, eleven times the year-to-date average daily volume (ADV) as market participants turned to CME Group to manage risk around the clock

CHICAGO, Oct. 27, 2026 /PRNewswire/ — CME Group, the world’s leading derivatives marketplace, today announced that its Brazilian real (BRL) futures reached a new daily volume record of 498,498 contracts (R$49.8 billion, ~$9.2 billion notional value) on October 26, surpassing the previous record of 191,325 contracts (~$3.7 billion notional value) traded on September 28, 2026.

“Following the results of the Brazilian presidential election, clients turned to our BRL futures market to immediately manage their risk outside of Brazilian trading hours, driving all-time record volume,” said Paul Houston, Global Head of FX Products, CME Group. “Even before the onshore market opened, $2.5 billion in notional value had already traded, roughly three times the year-to-date ADV for BRL futures. With liquidity in all timezones and contracts denominated in USD, our markets are fast becoming the main venue for Brazilian real price discovery and trading outside of onshore hours, giving global participants the liquidity they need around the clock.”

In the first half of 2026, Mexican peso and Brazilian real futures and options saw a record combined average daily volume of $2.94 billion.

For more information on CME Group BRL futures, please visit https://www.cmegroup.com/articles/faqs/latam-fx-futures-frequently-asked-questions.html

As the world’s leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“S&P DJI”). “S&P®”, “S&P 500®”, “SPY®”, “SPX®”, US 500 and The 500 are trademarks of Standard & Poor’s Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. 

CME-G 

View original content to download multimedia:https://www.prnewswire.com/news-releases/cme-group-brazilian-real-futures-set-new-daily-volume-record-following-election-302920902.html

SOURCE CME Group

Continue Reading

Technology

Vera Health Quietly Became One of the World’s Most Used Clinical Tools. Now It Has Raised $32 Million to Give Every Clinician in the World the Best Medical Knowledge in Seconds

Published

29 minutes ago

on

October 27, 2026

By

With a team of just 12 employees, the clinical AI company has grown largely through physician referrals, bringing total funding to $32 million

More than 800,000 clinicians across 190 countries use Vera Health, including approximately 1 in 4 physicians in Spain and Italy, with most discovering the platform through recommendations from colleagues.Threshold Ventures led Vera Health’s $28.5 million Series A, with participation from Mantis VC and SV Angel. Existing investors Y Combinator and Gradient tripled down, bringing total funding to $32 million.The investment will accelerate Vera Health’s evidence-focused clinical AI platform, expanding its ability to make global medical knowledge locally relevant and deepening partnerships with medical societies, publishers and health systems.

SAN FRANCISCO, Oct. 27, 2026 /PRNewswire/ — A year ago, a few thousand clinicians were using Vera Health. Today, more than 800,000 are, most having discovered the platform through a colleague. Every month since June, Vera has been the most downloaded clinical app in the world across the App Store and Google Play.¹ In September alone, it was downloaded more times than OpenEvidence and Doximity combined, while monthly downloads had more than tripled since February. With a team of just 12 employees, Vera has reached clinicians in 190 countries, including approximately 1 in 4 physicians in Spain and Italy, largely through word of mouth. Vera Health is a clinical AI search engine that reasons like a clinician, helping physicians find and evaluate medical evidence in seconds.

Today, Vera Health announced a $28.5 million Series A led by Threshold Ventures, with participation from Mantis VC and SV Angel. Existing investors Y Combinator and Gradient, tripled down in the round, bringing the company’s total funding to $32 million. The investment will accelerate Vera Health’s mission to close the gap between what medicine knows and what every patient receives.

Only a few months after raising its Series A, Vera already has more daily active users than it had monthly active users at the time of the raise. Clinicians went from asking Vera a few thousand questions a day to asking hundreds of thousands, every single day.

“Clinicians are the best data scientists I’ve ever met. They make the call in seconds, with more evidence than any human could ever read,” said Taieb Bennani, Co-Founder of Vera Health. “The secret to building for them is to live and breathe the problem like no one else. Everyone on our team is a clinician, or the child or sibling of one, like Maxime and me. That passion translates into every detail of the product, and when you build with that kind of obsession, the product speaks for itself, and clinicians share it with their colleagues. We don’t have the biggest team or the most money. We have the people who care the most about getting it right.”

How does Vera Health differ from general-purpose AI tools?
Clinical AI is increasingly being used to help physicians navigate complex medical questions, but the ability to generate an accurate-sounding answer does not necessarily establish whether the underlying research is reliable. Medicine now publishes a new scientific paper roughly every 20 seconds. Chatbots are built to sound confident. Vera is built to be accurate, and honest when the evidence is thin. Physicians are expected to keep up with an expanding body of research while interpreting guidelines, evaluating treatment options and making decisions for individual patients, sometimes within seconds.

Vera Health finds the evidence first, then writes the answer. Its technology searches more than 60 million peer-reviewed publications, clinical guidelines, consensus statements and drug labels, evaluating sources based on study design, level of evidence, cohort size, recency, journal quality and citation impact. Every claim is linked to its supporting research and color-coded to show the strength of the available evidence. Sometimes that color is red. A rare condition may have no large randomized trial or comprehensive guideline behind it, leaving only a small case series or a report involving a single patient. Vera Health surfaces that research while making its limitations visible, allowing physicians to assess how much weight the findings deserve.

“Medical knowledge moves too quickly for any one clinician to read, and general-purpose AI tools can make uncertain evidence sound settled,” said Maxime Allouch, co-founder, Vera Health. “Unlike other tools, we believe there’s value in making uncertainty visible. The grade shapes what Vera retrieves and writes, while the clinician brings the patient, the context and the judgment.”

Vera Health developed its approach alongside physicians who evaluate medical evidence and help write the guidelines other clinicians follow. Through its partnership with the American College of Emergency Physicians (ACEP), the platform integrates ACEP clinical policies with source attribution, bringing medical society guidance directly into clinical research workflows.

“In medicine, not all evidence is equal,” said Scott M. Silvers, MD, FACEP, Chair of the American College of Emergency Physicians’ Clinical Policies Committee and former Chair of Emergency Medicine at Mayo Clinic. “A large, randomized trial and a case report should never carry the same weight, yet most AI tools blend them into the same confident answer. Level of evidence is the foundation of every guideline we write, and Vera Health is built on it.”

For Dr. Bernard P. Chang, Vera Health’s Chief Scientific Advisor and Vice Chair of Research in the Department of Emergency Medicine at Columbia University, the importance of clinical evidence extends to how physicians evaluate patients.

“On a recent emergency-department shift, I saw a young woman with cough and shortness of breath. The symptoms could easily be attributed to a routine respiratory illness,” said Chang. “Vera Health surfaced evidence that raised my concern for pulmonary embolism, a potentially life-threatening blood clot in the lungs, and led me to broaden my evaluation. What interests me isn’t AI simply providing an answer. It’s whether it can reliably surface evidence that challenges our initial assumptions and improves clinical reasoning. That’s what we’re now evaluating rigorously, inside the academic medical centers where medicine is actually practiced.”

Vera Health’s clinical advisors also include Christopher Baugh, MD, MBA, FACEP, Vice Chair of Clinical Affairs in Emergency Medicine at Brigham and Women’s Hospital and Associate Professor of Emergency Medicine at Harvard Medical School. Its clinical council includes physician leaders affiliated with Mayo Clinic, Yale, Harvard, Columbia and Penn.

Why is Vera Health growing so quickly across international markets?
Bennani and Allouch grew up in families of physicians and initially developed Vera Health for their own fathers. What began with two users has since grown into a platform serving hundreds of thousands of clinicians, with physicians asking hundreds of thousands of questions each day. The company’s international growth reflects an approach built around a central reality of medicine. Medical knowledge is global, but clinical practice is local.

An emergency physician in France may follow different treatment guidelines than a physician in the United States. An oncologist reviewing a complex case may need an exhaustive evaluation of the available research, while an emergency physician needs a concise answer within seconds. Even physicians practicing the same specialty may follow different protocols depending on their institution.

Vera Health accounts for those differences by prioritizing locally relevant guidance while drawing on medical research from around the world. Through Vera Spaces, health systems can also integrate their own clinical protocols and pathways alongside national guidelines and international medical literature.

“Medicine is global, yet most tools in our space were built for a single geography,” said Allouch. “We went international from day one, because only a global view reveals what is truly local.”

The approach has helped Vera Health expand across Europe, where approximately 1 in 4 physicians in Spain and Italy and 1 in 7 in France use the platform, according to company data. Vera Health has achieved that international reach with a small team and a product that clinicians have largely discovered through their peers.

What will Vera Health’s Series A funding support next?
The financing will support further development of Vera Health’s clinical evidence infrastructure, expansion into additional healthcare markets and deeper partnerships with medical societies, publishers and health systems. The company will continue investing in locally relevant clinical guidance and tools that allow healthcare institutions to incorporate their own medical knowledge into the platform.

“In healthcare, trust is earned, not bought. Vera’s adoption among clinicians worldwide speaks to what Taieb and Maxime have built. By combining the most rigorous medical evidence with an understanding of each physician’s specialty, protocols and practice context, Vera makes the world’s medical knowledge relevant to how care is actually delivered. We believe that creates an enormous opportunity to improve global health,” said Andrew Brackin, Partner at Gradient.

“Vera is compelling because it starts with the evidence, not just an answer—helping clinicians find and assess the research behind a decision while making its strengths and limitations visible. By bringing that evidence to the point of care, Vera becomes a trusted clinical intelligence layer, not just another AI tool,” said Emily Melton, co-founder and managing partner of Threshold Ventures.

Vera Health will remain free for licensed clinicians and medical trainees worldwide as it expands access to medical evidence and locally relevant clinical guidance.

New medical knowledge takes an estimated 17 years to reach routine clinical practice, according to research published in the Journal of the Royal Society of Medicine. Vera Health aims to reduce the time physicians spend searching for and evaluating that knowledge, bringing relevant evidence closer to the moment clinical decisions are made.

“Our mission is to close the gap between what medicine knows and what every patient receives,” said Bennani. “Today, that gap is measured in years. We want it measured in seconds.”

About Vera Health
Vera Health is the search engine that reasons like a clinician, finding and grading evidence before showing the source, strength and limits behind every answer. More than 800,000 clinicians in 190 countries use Vera, which is free for licensed clinicians and trainees, never trains on clinicians’ questions, and is HIPAA and GDPR compliant and SOC 2 Type II certified. Founded in 2024 at Y Combinator by MIT graduates and sons of physicians Taieb Bennani and Maxime Allouch, Vera is headquartered in San Francisco and backed by Threshold Ventures, Gradient, Y Combinator, SV Angel and Mantis VC.

Learn more at verahealth.ai.

¹ Download data: Appark, worldwide App Store and Google Play downloads, June through [September] 2026.

Media Contact
Interdependence
(949) 259-6377 x 225
425709@email4pr.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/vera-health-quietly-became-one-of-the-worlds-most-used-clinical-tools-now-it-has-raised-32-million-to-give-every-clinician-in-the-world-the-best-medical-knowledge-in-seconds-302920905.html

SOURCE Vera Health

Continue Reading

Trending