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 has launched the Team Content Delivery System at the 2025 Formula 1 Australian Grand Prix, enhancing race teams' capabilities with advanced IT solutions [1] - The system integrates over 30 video channels and audio sources, providing a comprehensive race intelligence platform that allows for near real-time analysis and sharing of critical moments [2] - Key features include on-premises video processing, cloud delivery, advanced data normalization, and a user-friendly interface designed for engineers and strategists [3] Performance Enhancements - The new system significantly reduces response times, with live connections now taking less than 5 seconds compared to the previous 9 seconds, and remote access taking about 6 seconds [4] - This improvement enables teams to react more swiftly to race events, thereby minimizing decision-making delays [4] Financial Performance - Globant's investment in artificial intelligence has led to a 10.6% year-over-year revenue growth, reaching $642.5 million, with AI-based projects generating $350 million in annual revenues, a 110% increase year-over-year [5] - Despite a 1.5% negative impact from foreign exchange on revenue growth, the company projects revenues between $2,635 million and $2,705 million for 2025, indicating a year-over-year increase of 9.1% to 12.0% [6] Market Position - Currently, Globant holds a Zacks Rank of 3 (Hold), with its shares declining by 34.2% over the past year, contrasting with a 10.5% growth in the sub-industry [7]