Globant(US:GLOB) ZACKSยท2025-02-21 14:35Core Insights - Globant (GLOB) reported fourth-quarter 2024 non-GAAP EPS of $1.75, exceeding the Zacks Consensus Estimate of $1.74, and up from $1.62 in the prior-year quarter [1] - Revenues for the quarter were $642.5 million, slightly below the Zacks Consensus Estimate of $644.8 million, but represented a 10.6% year-over-year increase driven by AI-driven services and expanding client engagements [2] Financial Performance - For the year ended December 31, 2024, GLOB served 1,012 customers, with 20 generating over $20 million in annual revenues and 346 clients contributing more than $1 million, marking an 11.2% increase year-over-year [3] - AI-based projects generated $350 million in annual revenues, reflecting a 110% year-over-year growth [3] - Adjusted net income for the period was $78.7 million, up 10.7% year-over-year [9] Segment Performance - Media and Entertainment revenues (20.6% of net sales) increased by 9.7% year-over-year to $132.3 million, largely due to growth from the Walt Disney Company [4] - Travel & Hospitality revenues surged 35.3% year-over-year to $83.3 million, while Professional Services revenues decreased by 8.8% to $60.7 million [5] Regional Performance - North America accounted for 55.2% of revenues, with Latin America contributing 20.4% and Europe 17.7% [6] - New markets in the Middle East and APAC saw a remarkable 89% year-over-year revenue increase [7] Margins and Cash Flow - Non-IFRS adjusted gross margin was 38.3%, slightly up from 38% a year ago, while adjusted profit from operations margin improved to 15.7% from 15.3% [8] - As of December 31, 2024, cash and short-term investments totaled $156.1 million, down from $213.5 million as of September 30, 2024 [10] Outlook - For 2025, GLOB estimates revenues between $2,635 million and $2,705 million, indicating a year-over-year growth of 9.1% to 12.0% [11] - The company anticipates first-quarter revenues between $618 million and $628 million, representing 8.2% to 10% year-over-year growth [12]