Market Opportunity & Growth - The total market for generative AI is projected to reach a five-year CAGR of 73.5% by 2028[5] - Worldwide IT services spending is expected to reach $2.1 trillion by 2027[6] - 85% of CEOs reported increased investments in digital capabilities[6] - The digital business services market is projected to reach $702 billion by 2027[6] - 90% of service providers will use generative AI for software development services by 2027[7] - Global spending on product engineering and operational technology services is forecasted to reach $334 billion by 2027[7] Financial Performance - LTM Q2'25 total revenue reached $2.5 billion[45] - The revenue CAGR from 2014 to 2024 was 28.3%[45] - LTM Q2'25 Revenue per IT Professional was $89.9K[45] - Q2'25 Adjusted Gross Profit Margin was 38.1%[45] - Q2'25 Adjusted Profit from Operations Margin was 15.0%[45] - 93.3% of LTM Q2'25 Revenue came from existing customers in LTM Q2'24[45]

Core Insights - Globant reported a revenue of $614.2 million for Q2 2025, reflecting a 4.5% year-over-year growth [7] - The company’s pipeline reached an all-time high of $3.7 billion, up 25% year-over-year, driven by strong demand for its AI-related offerings [2][3] - The adjusted diluted EPS for Q2 2025 was $1.53, compared to $1.51 in Q2 2024 [7] Financial Performance - Revenues for the first half of 2025 totaled $1.225 billion, compared to $1.159 billion in the same period of 2024 [16] - The adjusted operating margin for Q2 2025 was 15.0%, consistent with the previous year [7] - The company incurred a one-time charge of $47.6 million as part of its Business Optimization Plan [3][21] Market Position and Strategy - Globant is positioning itself as a full-stack AI company, focusing on AI Pods, subscription models, and the Globant Enterprise AI platform [2] - The geographic revenue breakdown for Q2 2025 showed 54.1% from North America, 19.7% from Latin America, 19.6% from Europe, and 6.6% from new markets [7] - The company served 981 customers in the last twelve months, with 339 accounts generating over $1 million in annual revenues [7][22] Future Outlook - For Q3 2025, revenues are estimated to be at least $615.0 million, indicating a slight growth [7] - The fiscal year 2025 revenue is projected to be at least $2.445 billion, implying a year-over-year growth of at least 1.2% [13] - The estimated Non-IFRS Adjusted Profit from Operations Margin for fiscal year 2025 is at least 15.0% [13]

Core Viewpoint - Investors are evaluating Globant (GLOB) and NetEase (NTES) for potential undervalued stock opportunities, with a focus on valuation metrics to determine the better option [1]. Valuation Metrics - Both GLOB and NTES have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [3]. - GLOB has a forward P/E ratio of 12.97, while NTES has a forward P/E of 15.82, suggesting GLOB may be more undervalued [5]. - The PEG ratio for GLOB is 2.49, compared to NTES's PEG ratio of 4.21, indicating GLOB's expected earnings growth is more favorable relative to its valuation [5]. - GLOB's P/B ratio is 1.65, while NTES has a P/B of 4.2, further supporting GLOB's position as a more attractive value option [6]. - GLOB is assigned a Value grade of B, while NTES has a Value grade of C, reinforcing the assessment of GLOB as the superior value stock [6][7].

Industry Overview - The Internet-Software & Services industry is closely tied to the economy, with initial estimates declining due to anticipated negative impacts from tariffs, inflation, and interest rate decisions [1] - The industry is currently experiencing operating leverage, leading to improved margins as revenue has rebounded alongside capital investments [1] Key Companies - Companies like Globant (GLOB) and NetEase (NTES) are notable for their global operations, which spread revenue and risk internationally [2] - Both companies have established client retention systems through subscriptions and platforms, and are leveraging AI in their operations [2] Long-term Outlook - The industry is considered the backbone of the digital economy, with a diverse range of players contributing to its resilience [3] - Valuations have significantly decreased, making the industry attractive at current levels [3] Technology Adoption - The level of technology adoption by businesses is crucial for growth, with many companies enhancing their platforms for AI development [7] - The increasing demand for cloud-based software and services is driving infrastructure buildout, which raises costs and affects profitability [7] Market Performance - The Zacks Internet – Software & Services Industry has outperformed the broader Zacks Computer and Technology Sector and the S&P 500, returning 41.8% over the past year compared to 29% and 20.3% respectively [12] - The industry is currently trading at a median forward 12-month price-to-earnings (P/E) ratio of 22.15X, which is a 2.4% discount to the S&P 500 and a 21.3% discount to the technology sector [15] Company Highlights: Globant (GLOB) - Globant has shown impressive growth with a revenue CAGR of 28.3% from 2014 to 2024, while improving customer concentration [21] - The company is focusing on AI-related opportunities and has a subscription model that provides steady revenue inflows [20] - In the last quarter, Globant's revenue grew 7% year-over-year, but it missed the Zacks Consensus estimate by 5.7% [23] Company Highlights: NetEase (NTES) - NetEase focuses on diverse online services, including gaming and education, and has a strong in-house R&D team [27] - The gaming segment has shown significant momentum, with recent titles performing well [28] - NetEase's shares have gained 43.8% over the past year, with earnings for the March quarter exceeding estimates by 23.5% [29]

Core Insights - Globant S.A. is expected to report second-quarter 2025 results on August 14, with revenue estimates of $613 million, reflecting a 4.35% year-over-year growth [1] - The consensus estimate for earnings is $1.52 per share, indicating a 0.66% increase from the previous year [2] - The company has experienced a 59.7% decline in share price over the past year, compared to a 41.4% growth in the Zacks Internet-Software and Services industry [2] Revenue and Earnings Estimates - Revenue for the second quarter is anticipated to be at least $612 million, marking a 4.2% year-over-year increase with no foreign exchange impact [1] - The earnings consensus estimate is pegged at $1.52 per share, with the company forecasting a non-IFRS adjusted EPS of the same amount [2] Factors Influencing Performance - Secular growth trends in AI-related opportunities and strong business momentum are expected to positively impact Globant's performance [3] - The demand across various segments and geographies is likely to enhance the company's top-line performance [3] - The generative AI market is projected to grow at a 73.5% CAGR by 2028, with total IT spending expected to reach $7.4 trillion, half of which will be allocated to software and services [4] Strategic Developments - Globant's AI Studios are designed to deliver scalable, industry-specific AI solutions, focusing on high-impact workflows and business outcomes [5] - The company has launched AI Pods, a subscription model for AI-powered services, enabling flexible access to intelligent solutions [13] - A partnership with Google Cloud aims to provide tailored AI solutions across multiple industries, addressing challenges like data silos and process inefficiencies [12] Current Challenges - The company is navigating a tough macroeconomic environment, with increased recession risks in the U.S. and declining consumer spending [6] - Management is focusing on strategic investments in AI Industry Studios and optimizing infrastructure to strengthen financial positioning [7][8] Recent Innovations - In July 2025, Globant upgraded its Enterprise AI platform to enhance interoperability and support collaborative AI development [14] - The introduction of AI Pods is expected to disrupt traditional IT service delivery by offering a flexible, token-based subscription system [13]

Industry Overview - Internet stocks are benefiting from the ongoing digitalization wave, which is driving rapid adoption of AI and cloud computing [1] - The deployment of standalone 5G networks and AI-powered services is increasing the usage of social media platforms, digital advertising, online delivery models, streaming, and e-commerce growth [2] - Despite macroeconomic challenges, these factors are expected to positively impact Internet stocks during the earnings season [2] Company Earnings Insights - Four Internet stocks, Globant (GLOB), NICE (NICE), Affirm Holdings (AFRM), and Bill Holdings (BILL), are well-positioned to exceed earnings estimates this season [3] - Meta Platforms reported a 5% increase in ad conversions on Instagram and 3% on Facebook due to its new AI-powered recommendation model [5] - Microsoft’s AI assistants have reached 100 million monthly active users, and Alphabet is enhancing user experience through AI in its Search features [6] - Amazon's advertising business grew 23% year-over-year to $15.69 billion, attributed to successful AI-powered optimization [7] Company-Specific Projections - Globant expects revenues of at least $612 million for Q2 2025, reflecting a 4.2% year-over-year growth, with earnings estimated at $1.52 per share [12][13] - NICE anticipates non-GAAP revenues of $709-$719 million for Q2 2025, indicating 7% year-over-year growth, with earnings projected between $2.93 and $3.03 per share [15][16] - Affirm Holdings forecasts GMV between $9.4 billion and $9.7 billion for Q4 fiscal 2025, with revenues expected to be between $815 million and $845 million [17] - BILL Holdings expects revenues between $370.5 million and $380.5 million for Q4 fiscal 2025, suggesting year-over-year growth of 8-11% [19][20]

LUXEMBOURG, July 31, 2025 /PRNewswire/ -- Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced it will release results for the second quarter ended June 30th, 2025 on Thursday, August 14th, 2025 after the close of regular market hours. For more information, please visit www.globant.com Investor Relations Contact: Arturo Langa, Globant [email protected] +1 (877) 215-5230 Media Contact: Gregorio Lascano, Globant [email prot ...

Core Insights - Globant has announced a significant upgrade to its proprietary AI platform, Globant Enterprise AI (GEAI), which now supports Model Context Protocol (MCP) and Agent2Agent (A2A) Protocol, enhancing interoperability and integration capabilities for global organizations [1][2][3] Group 1: Platform Features - The integration of MCP and A2A transforms GEAI into a fully interoperable ecosystem, allowing enterprises to build, deploy, and manage AI agents across various platforms [2][8] - MCP enables GEAI agents to interact with leading enterprise tools and applications globally, while A2A allows for autonomous interactions with platforms like Salesforce's Agentforce and Google Cloud's Vertex AI [2][3] Group 2: Impact and Efficiency - Organizations utilizing GEAI have reported an 80% reduction in legacy system modernization times, facilitating quicker adaptation to market demands [4] - In software development, companies leveraging GEAI have achieved a 50% reduction in costs, significantly improving operational efficiency [4] Group 3: Strategic Positioning - The update positions Globant at the forefront of next-generation enterprise AI infrastructure, offering enhanced automation and integration capabilities with advanced AI models [3][8] - GEAI serves as a foundational platform for secure, scalable, and collaborative AI development within enterprise environments [8]

Core Insights - Investors are evaluating the value opportunities presented by Globant (GLOB) and NetEase (NTES) in the Internet - Software and Services sector [1] Valuation Metrics - Both GLOB and NTES have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - GLOB has a forward P/E ratio of 15.21, while NTES has a forward P/E of 15.47, suggesting GLOB may be slightly more attractive based on this metric [5] - GLOB's PEG ratio is 2.51, compared to NTES's PEG ratio of 4.11, indicating GLOB is better positioned in terms of expected earnings growth [5] - GLOB's P/B ratio is 1.94, while NTES has a P/B of 4.1, further supporting GLOB's valuation advantage [6] - GLOB has a Value grade of B, while NTES has a Value grade of C, highlighting GLOB as the superior value option based on these metrics [6]

Core Insights - Globant S.A. (NYSE: GLOB) has faced significant pressure over the past year due to concerns regarding AI displacement affecting market sentiment [1] - Growth expectations for Globant have drastically decreased from over 20% to nearly zero, indicating a shift in investor confidence [1] Company Overview - The company operates in the outsourcing and consulting sector, which is currently experiencing heightened fears related to AI advancements [1]