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]

RIYADH, Saudi Arabia, May 12, 2025 /PRNewswire/ -- Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, has partnered with Saudi Pro League (SPL) to implement the cutting-edge Competition Management Solution provided by Sportian, Globant's sports division. Globant and Saudi Pro League Globant and Saudi Pro League With the new platform, future SPL seasons will be managed through a digital ecosystem. With the help of AI and data analysis t ...

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].

Group 1: Artificial Intelligence - Generative AI presents opportunities for businesses, with a focus on enhancing customer experience and the importance of design in AI solutions [1][3][30] - Action-enabled AI products will achieve breakthroughs, allowing companies to leverage unstructured data while addressing regulatory concerns to improve accuracy and inclusivity [1][30] - The regulatory environment surrounding AI is still developing, necessitating organizations to be aware of legal, ethical, and moral implications as they adopt AI solutions [30][31] Group 2: Quantum Computing - Quantum computing is transitioning from theory to practical applications, particularly in finance and pharmaceuticals, with companies expected to explore its business impact and invest accordingly [1][2] Group 3: Robotics - The robotics market is at a critical juncture due to the development of versatile robots, with AI enhancing their capabilities across various industries [1][2] - Companies are likely to adopt Robotics as a Service (RaaS) models, impacting sectors such as entertainment while facing challenges related to legal and employment structures [1][2] Group 4: Blockchain - Blockchain technology retains significance in specific industries, particularly for data security and digital identity management, despite facing challenges in scalability and energy consumption [2] Group 5: Immersive Experiences - Interest in 3D immersive experiences remains strong, with the launch of Apple's Vision Pro expected to drive advancements in spatial computing and provide new methods for data collection and customer engagement [2]

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]