Globant's Impressive Growth in Q3 2024 Financial Results

Strong, Broad Based Results

Third quarter revenues of $614.7 million, up 12.7% year-over-year

IFRS Diluted EPS of $0.98 for the third quarter

Non-IFRS Adjusted Diluted EPS of $1.63 for the third quarter

Globant (NYSE: GLOB), a company committed to transforming businesses through innovative technology solutions, recently announced its financial results for the quarter and nine months ending September 30, 2024. The reported revenue and EPS figures highlight the company's robustness in a competitive market.

Third Quarter 2024 Financial Highlights

• Revenues rose to $614.7 million, demonstrating a 12.7% increase compared to the same quarter last year.
• IFRS Gross Profit Margin slightly decreased to 36.2% from 36.4% last year.
• Non-IFRS Adjusted Gross Profit Margin improved to 38.5% from 38.2% year-over-year.
• Profit from Operations Margin increased to 10.6% from 9.7% in Q3 2023.
• Non-IFRS Adjusted Profit from Operations Margin saw a rise to 15.6% from 15.3%.
• IFRS Diluted EPS remained stable at $0.98, consistent with the previous year.
• Non-IFRS Adjusted Diluted EPS increased to $1.63 from $1.48.

Nine Months Financial Highlights

• Revenue surged to $1,773.2 million, reflecting a 17.0% growth from the prior year.
• Gross Profit Margin under IFRS was 35.8%, down from 36.1% in the previous year.
• The Non-IFRS Adjusted Gross Profit Margin held steady at 38.2%.
• Profit from Operations Margin was 9.4%, slightly less than the prior year’s 9.5%.
• For diluted EPS, IFRS reported $2.88, up from $2.68 last year.
• Non-IFRS Adjusted Diluted EPS was $4.67 compared to $4.12.

Other Notable Metrics as of September 30, 2024

• Cash and cash equivalents stood at $213.5 million, marking a decrease largely due to geographic expansion and related M&A activities.
• The workforce at Globant has grown to 29,998 employees, with 27,927 being professionals in technology, design, and innovation.
• Revenue distribution in the third quarter showed 55.7% from North America, 21.8% from Latin America, 17.6% from Europe, and 4.9% from new markets.
• Top customers contributed 9.1% to total revenue, with the top five and ten customers contributing 21.0% and 30.1% respectively.
• Notably, 66.6% of Globant's revenues were generated in US dollars during this quarter.

CEO Martín Migoya reflected on the impressive growth, noting the significant demand across various verticals during the quarter. He expressed optimism for continued expansion into 2024, bolstered by a notable increase of 120% in AI-related initiatives year-to-date. He emphasized a strong client pipeline and an eagerness to redefine industry standards through innovative digital transformations.

CFO Juan Urthiague commented on the record revenue achievement, citing it as a result of successful engagement with key accounts and a commitment to profitability. He noted early recovery signs within specific sectors that were previously under pressure.

Q4 and Full-Year 2024 Outlook

In view of current market conditions, Globant has estimated the following for the remaining fiscal year:

• Fourth quarter revenues are projected between $642.0 million and $648.0 million, indicating a year-over-year growth of 10.6% to 11.6%.
• The estimated Non-IFRS Adjusted Profit from Operations Margin for Q4 ranges from 15.0% to 16.0%.
• Fourth quarter Non-IFRS Adjusted Diluted EPS is expected between $1.71 and $1.75.
• Full-year revenues are estimated to be between $2,415.0 million and $2,421.0 million, suggesting a growth of 15.2% to 15.5% year-over-year.
• Non-IFRS Adjusted Profit from Operations Margin for the fiscal year is projected between 15.0% and 15.5%.
• Adjusted Diluted EPS is anticipated to range between $6.37 to $6.43.

Conference Call

CEO Martín Migoya along with other executive team members, including CFO Juan Urthiague, will discuss the financial results in a video conference call scheduled for 4:30 PM ET.

About Globant (NYSE: GLOB)

Globant specializes in creating digital solutions that resonate with people, seamlessly bridging businesses and consumers using cutting-edge technology and creativity. The company aims to transform organizations digitall through its innovative AI expertise.

With a global presence of over 29,900 employees in more than 30 countries, Globant’s client portfolio includes industry leaders like Google, Electronic Arts, and Santander.

The company has been recognized as a Worldwide Leader in Customer Experience Improvement by IDC MarketScape and has also appeared in business case studies at renowned institutions such as Harvard, MIT, and Stanford. Globant is a proud member of the Cybersecurity Tech Accord.

Frequently Asked Questions

What are Globant's revenue figures for Q3 2024?

Globant achieved third-quarter revenues of $614.7 million, an increase of 12.7% from the previous year.

How did the profit margins perform in the latest results?

The IFRS Gross Profit Margin was 36.2%, while the Non-IFRS Adjusted Gross Profit Margin was 38.5% for Q3 2024.

What is the outlook for Globant for the remaining fiscal year?

Globant estimates fourth-quarter revenues between $642.0 million and $648.0 million, representing year-over-year growth of 10.6% to 11.6%.

Who is the CEO of Globant?

The CEO of Globant is Martín Migoya, who is also one of the co-founders of the company.

How many employees does Globant currently have?

Globant has a total of 29,998 employees, comprising various technology, design, and innovation professionals.

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