Globant Q2 Earnings & Revenues Beat Estimates, Stock Down

Core Insights - Globant S.A. (GLOB) reported Q2 2025 non-GAAP EPS of $1.53, exceeding the Zacks Consensus Estimate of $1.52, and up from $1.51 in the prior-year quarter [1] - Revenues for the quarter reached $614.2 million, surpassing the Zacks Consensus Estimate of $613 million, marking a 4.5% year-over-year increase [1] Financial Performance - The company had a record pipeline of $3.7 billion, a 25% increase from the previous year, indicating strong growth potential in AI-driven opportunities [3][9] - Adjusted net income for the period was $69.7 million, reflecting a 4.2% year-over-year increase [11] - Non-IFRS adjusted gross margin remained flat at 38.1%, while the adjusted profit from operations margin slightly decreased to 15% from 15.1% [11] Revenue Breakdown - Revenue from Media and Entertainment decreased by 8.3% year over year to $122 million [6] - Technology & Telecommunications revenues fell by 9.8% year over year to $56.2 million [6] - Travel & Hospitality revenues increased by 24.6% year over year to $79.8 million [6] - Banks, Financial Services, and Insurance revenues rose by 21% year over year to $126.6 million [7] - Healthcare revenues increased by 3.5% year over year to $43.8 million [10] Customer Base - As of June 30, 2025, GLOB served 981 customers, with 339 clients generating over $1 million in annual revenues, up from 329 the previous year [5] - The top five customers accounted for 20.3% of total revenues, while the top ten customers contributed 29.3% [5] Guidance and Outlook - For Q3 2025, GLOB expects revenues of at least $615 million, reflecting a 0.1% year-over-year growth [13] - For the full year 2025, the company anticipates revenues of at least $2.445 billion, representing a 1.2% year-over-year growth, revised down from an earlier projection of $2.464 billion [14]