Company Performance - Globant reported quarterly earnings of $1.50 per share, missing the Zacks Consensus Estimate of $1.58 per share, and showing a decrease from $1.53 per share a year ago, resulting in an earnings surprise of -5.06% [1] - The company posted revenues of $611.09 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.83%, compared to $571.08 million in the same quarter last year [2] - Over the last four quarters, Globant has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - Globant shares have declined approximately 37.7% since the beginning of the year, contrasting with the S&P 500's gain of 0.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.66 on revenues of $639.83 million, and for the current fiscal year, it is $6.80 on revenues of $2.61 billion [7] - The estimate revisions trend for Globant is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Internet - Software and Services industry, to which Globant belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Data and Key Metrics Changes - Revenues reached $611.1 million, representing a 7% year-over-year increase and 8.6% in constant currency, slightly below initial guidance [6][22] - Adjusted gross margin for the quarter stood at 38%, flat year-over-year, while adjusted operating margin was 14.8%, falling short of expectations due to lower revenues [24][25] - Adjusted net income for Q1 was $67.8 million, translating into an adjusted diluted EPS of $1.50, almost flat year-over-year [25][26] - Cash and cash equivalents and short-term investments were $120.2 million, with net debt at $167 million, indicating a low net debt ratio and substantial financial flexibility [25][26] Business Line Data and Key Metrics Changes - North America saw a 6% year-over-year revenue increase, Europe grew by 13.4%, and new markets experienced an 84.4% year-over-year growth, while Latin America declined by nearly 9% [22][23] - Revenue per IT head increased by 2.8% year-over-year, reflecting the value and efficiency delivered [24] Market Data and Key Metrics Changes - The macroeconomic environment has been challenging, with a significant rise in the probability of a recession in the U.S. and softening consumer spending impacting customer decisions [8][22] - Pipeline conversion has slowed, particularly in the U.S., while growth in some Latin American countries has been lower than expected [8][9] Company Strategy and Development Direction - The company is focusing on three core pillars: deepening relationships with strategic clients, expanding AI studios for comprehensive AI transformation, and implementing a subscription model for service delivery [10][12][14] - The subscription model aims to provide a flexible, consumption-based framework for clients, aligning incentives around outcomes rather than hours worked [12][14] - The company is committed to long-term value creation and transformative impact, despite current macroeconomic challenges [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength and resilience of the business, noting a robust pipeline with a 20% increase year-over-year [9][34] - The company anticipates a recovery in Latin America, with improvements noted in Argentina and Chile, although Mexico and Brazil remain challenging [36][116] - Revised revenue guidance for Q2 is at least $612 million, reflecting a cautious outlook amid macroeconomic uncertainties [26][39] Other Important Information - The company introduced Globant Coda, an AI-driven suite aimed at simplifying and accelerating the software development lifecycle [15] - Recent partnerships include a reinvention partnership with the Saudi Pro League and a collaboration with Formula One to enhance competitive experiences [17][18] Q&A Session Summary Question: Recovery of demand in Latin America - Management noted that many deals are being delayed rather than canceled, with a robust pipeline indicating potential recovery [34][36] Question: Backlog of signed contracts - The company indicated a high level of visibility and comfort regarding the backlog relative to revenue guidance, though uncertainty remains for the second half of the year [50][51] Question: Performance of top clients - Most top clients performed similarly, with stabilization expected in Q2, although those with consumer-facing exposure faced more challenges [62][64] Question: Competitive position in application development - The company maintains a balanced approach across application development, cloud, and creative services, positioning itself well in a complex market [75][76] Question: Margins in Latin America - Margins are not significantly different across regions, with a focus on maintaining healthy relationships and pricing strategies [88][90] Question: Traction of new commercial models - AI revenue is growing significantly, with the new subscription model generating early interest, although it is not yet a substantial percentage of total revenue [94][96]

Financial Data and Key Metrics Changes - Revenues reached $611.1 million, representing a 7% year-over-year increase and 8.6% in constant currency, slightly below February guidance [21][5][24] - Adjusted gross margin for the quarter stood at 38%, flat year-over-year, while adjusted operating margin was 14.8% [23][24] - Adjusted net income for Q1 2025 was $67.8 million, translating into an adjusted diluted EPS of $1.50, almost flat year-over-year [24] - Cash and cash equivalents and short-term investments were $120.2 million, with net debt at $167 million, indicating a low net debt ratio [24][25] Business Line Data and Key Metrics Changes - North America saw a 6% year-over-year revenue increase, Europe grew by 13.4%, and new markets experienced an 84.4% year-over-year growth [22] - Latin America faced a decline of nearly 9% year-over-year, with notable contractions in Mexico and Brazil, partially offset by strong growth in Argentina [22][21] Market Data and Key Metrics Changes - The macroeconomic environment has been challenging, with a significant rise in the probability of a U.S. recession and softening consumer spending [7][6] - The pipeline remains robust with a 20% increase over last year, despite near-term challenges [8][21] Company Strategy and Development Direction - The company is focusing on three core pillars: expanding its 100 square accounts, enhancing AI studios for comprehensive AI transformation, and implementing a subscription model for service delivery [9][10][12] - The subscription model aims to provide a consumption-based framework for clients, aligning incentives around outcomes rather than hours worked [12][14] - The company is committed to long-term value creation and transformative impact, particularly in AI and digital transformation [6][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current challenging macroeconomic environment but remains confident in the strength and resilience of the business [5][6] - The company has revised its full-year revenue guidance to at least $2.004 billion, representing 2% year-over-year growth [25] - Management expects a solid second quarter with guidance of at least $612 million in revenues, reflecting a cautious but optimistic outlook [25][26] Other Important Information - The company has introduced Globant Coda, an AI-driven suite aimed at simplifying the software development lifecycle [15] - Recent partnerships include a reinvention partnership with the Saudi Pro League and a major milestone with Formula One [16][17] Q&A Session Summary Question: Recovery of demand in Latin America - Management indicated that many deals are being delayed rather than canceled, with a 20% increase in the pipeline providing optimism for recovery [33][34][36] Question: Protecting margins amid potential deterioration - Management confirmed that measures are in place to protect margins and profitability, with a focus on disciplined pricing and cash flow management [42][43] Question: Backlog and revenue guidance - Management stated that visibility is high for the second quarter, with a focus on maintaining a derisked revenue forecast [50][51] Question: Performance of top clients - Management noted stabilization in performance among top clients, with new markets continuing to outperform [62] Question: Capital positioning and cash flow generation - Management emphasized a focus on protecting cash flow and reducing capital expenditures while prioritizing AI investments [118][119]

Core Insights - Globant reported Q1 2025 revenues of $611.1 million, reflecting a 7% year-over-year growth despite a challenging macroeconomic environment [5][8][7] - The company emphasizes its focus on AI-related opportunities and a comprehensive growth strategy that integrates client-centric vision with industry-specialized AI Studios [4][5] - Adjusted diluted EPS for Q1 2025 was $1.50, slightly down from $1.53 in Q1 2024, while IFRS diluted EPS was $0.68 compared to $1.02 in the same period last year [7][8] Financial Performance - Revenues for Q1 2025 were $611.1 million, a 7.0% increase from $571.1 million in Q1 2024 [5][8] - IFRS Gross Profit Margin was 34.9%, down from 35.4% in Q1 2024, while Non-IFRS Adjusted Gross Profit Margin remained stable at 38.0% [8] - Profit from Operations Margin under IFRS was 8.2%, compared to 8.4% in Q1 2024, and Non-IFRS Adjusted Profit from Operations Margin was 14.8%, down from 15.0% [8] Customer and Market Insights - The geographic revenue breakdown for Q1 2025 showed 55.5% from North America, 19.6% from Latin America, 18.2% from Europe, and 6.7% from New Markets [8][25] - Globant served a total of 1,004 customers in the last twelve months, with 341 accounts generating over $1 million in annual revenues, an increase from 318 in the previous year [8][25] - 67.2% of revenues for Q1 2025 were denominated in US dollars, indicating a strong reliance on the US market [8][25] Future Outlook - For Q2 2025, revenues are estimated to be at least $612.0 million, representing a 4.2% year-over-year growth [13] - The fiscal year 2025 revenue forecast is at least $2,464.0 million, implying a minimum of 2.0% year-over-year growth [13] - Non-IFRS Adjusted Diluted EPS for Q2 2025 is estimated to be at least $1.52, with a projected average of 45.7 million diluted shares outstanding [13]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Globant, with a focus on how actual results compare to estimates, which could significantly impact the stock price [1][2]. Earnings Expectations - Globant is expected to report quarterly earnings of $1.58 per share, reflecting a year-over-year increase of 3.3% [3]. - Revenue is projected to be $622.45 million, representing a 9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 2.87% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The current Earnings ESP for Globant is -1.71%, suggesting a likelihood of missing the consensus EPS estimate [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from consensus estimates, with positive readings being more reliable [6][7]. - Stocks with a positive Earnings ESP and a strong Zacks Rank (1-3) have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Globant exceeded the expected earnings of $1.74 per share by posting $1.75, resulting in a surprise of 0.57% [12]. - Over the past four quarters, Globant has beaten consensus EPS estimates twice [13]. Conclusion - Globant does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Core Viewpoint - Globant is set to release its first quarter results for 2025 on May 15, 2025, after market hours, highlighting its ongoing commitment to transparency and communication with investors [1]. Group 1: Earnings Release Information - The earnings release will be followed by a video conference call led by CEO Martin Migoya at 4:30 pm ET, which will include a Q&A session with key executives [2]. - A shareholder letter will be made available on Globant's investor relations website, providing additional insights into the company's performance [2]. Group 2: Company Overview - Globant is a digitally native company focused on creating innovative technology solutions, emphasizing its expertise in AI to bridge the gap between businesses and consumers [3]. - The company employs over 31,200 individuals across 35 countries and serves notable clients such as Google, Electronic Arts, and Santander [4]. - Globant has received recognition as a Worldwide Leader in AI Services (2023) and in Media Consultation, Integration, and Business Operations Cloud Service Providers (2024) according to IDC MarketScape [4]. - The company is noted as the fastest-growing IT brand and the 5th strongest IT brand globally in 2024, as per Brand Finance [4].

He also leads the investing group IPO Edge , which offers actionable information on growth stocks through first-look IPO filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to init ...

BUENOS AIRES, Argentina, April 30, 2025 /PRNewswire/ -- Horacio Marín, President and CEO of YPF -leading energy company of Argentina and largest shale oil operator in the world outside the United States- and Martín Migoya, Co-founder and CEO of Globant -a digitally native company focused on reinventing businesses through innovative technology solutions- have signed a Memorandum of Understanding (MoU) that marks a significant milestone in the transformation of YPF's Supply Chain operations. Globant to su ...

Group 1: Partnership and Strategic Initiatives - Globant (GLOB) has signed a strategic partnership agreement with Alphabet Inc.'s Google Cloud to combine GLOB's AI expertise with Google Cloud's infrastructure and tools, addressing challenges like data silos and scalability barriers [1][3] - The collaboration aims to deliver tailored solutions for sectors including Media & Entertainment, Retail, Healthcare, and Finance & Banking, featuring offerings such as identity management, GenAI-enabled modernization, and AI-driven workflows [2][3] Group 2: Financial Performance and Projections - In the last reported quarter, Globant's revenues grew by 10.6% year over year, reaching $642.5 million, with AI-based projects generating $350 million in annual revenues, marking a 110% increase year over year [6] - For 2025, GLOB projects revenues between $2.635 billion and $2.705 billion, indicating a year-over-year growth of 9.1% to 12.0%, driven by strong momentum in AI initiatives [7] Group 3: Commitment to AI and Innovation - Globant is focused on enhancing its AI capabilities and customer experience services, leveraging over 20 years of experience in advanced technologies to support businesses in their digital transformation [4][5] - The company is strengthening its position in AI-driven sectors by integrating advanced AI solutions with creative technology through its Globant GUT initiative [5][6]

Core Insights - Globant has entered a Strategic Partner Agreement with Google Cloud to provide industry-specific solutions for sectors such as Media & Entertainment, Retail, Healthcare, and Finance & Banking [1][3][4] - The collaboration focuses on leveraging Google Cloud's AI tools to address challenges like scalability, siloed data, and process inefficiencies faced by enterprises [2][4] Company Overview - Globant is a digitally native company with over two decades of experience in leveraging advanced technologies to assist businesses in achieving digital transformation goals [5][8] - The company employs more than 31,200 individuals across 35 countries and has worked with notable clients including Google, Electronic Arts, and Santander [8] Strategic Goals - The partnership aims to enhance the deployment and management of generative AI projects, enabling businesses to utilize Google Cloud's infrastructure effectively [4] - Globant is committed to investing in its core competencies in AI and customer experience improvement services while expanding its collaboration with Google Cloud [4] Industry Impact - The strategic cooperation is expected to unlock innovative business value through solutions such as frictionless identity management, GenAI-enabled mainframe modernization, and intelligent agentic workflows [3][4] - The collaboration is positioned to drive digital transformation in key industries by providing new tools that enhance customer experiences [4]