Globant(US:GLOB)2022-02-18 01:49Financial Data and Key Metrics Changes - Q4 2021 revenue reached $379.8 million, representing 63.3% year-over-year growth and 11.1% growth over Q3 [8][52] - For the full year 2021, revenue was nearly $1.3 billion, indicating a 59.3% year-over-year growth, the strongest since the IPO [9][59] - Adjusted net income for Q4 was $45.8 million, a 65.7% increase year-over-year, with an adjusted net income margin of 12.1% [56] - Adjusted diluted EPS for Q4 was $1.07, reflecting a 58.3% year-over-year growth [57] - Full year 2021 adjusted net income was $158.4 million, a 74.9% increase year-over-year, with an adjusted net income margin of 12.2% [60] Business Line Data and Key Metrics Changes - The Walt Disney Company remains the largest client, growing 69.1% year-over-year in Q4 [37] - The company had 12 accounts generating over $20 million in revenue, up from 7 the previous year [38][81] - 63.9% of revenues came from North America, 23.5% from Latin America, 10.7% from Europe, and 1.9% from Asia [38] Market Data and Key Metrics Changes - The company expanded its geographic footprint by adding Costa Rica and Ecuador to its Latin America operations and entering Germany, Austria, and Switzerland in Europe [12][13] - The company reported a net promoter score of 64, significantly above the industry benchmark of 30-40 [39] Company Strategy and Development Direction - The company aims to be the partner of choice for clients in digital transformation, focusing on geographic expansion, reinvention studios, and growing platforms [11] - The launch of the Metaverse Studio aims to help companies leverage opportunities in the Metaverse [17] - The company is developing a new platform, Project-yard, to reduce carbon emissions and operational costs of digital products [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in robust growth levels for the upcoming years, with no material impact from COVID-19 observed [53] - The demand for end-to-end digital services is stronger than pre-pandemic levels, with expectations for continued growth [53] - The company anticipates Q1 2022 revenues to be at least $395 million, representing a 46.2% year-over-year growth [63] Other Important Information - The company became carbon-neutral in 2021 and aims to save 10 million tons of CO2 emissions through its digital sovereignty strategy [48] - The Be Kind initiative has been integrated into the company's identity, focusing on diversity, equality, and inclusion [46][49] Q&A Session Summary Question: Visibility and backlog replenishment for 2022 - Management indicated good visibility for 2022, with solid demand and healthy backlog fulfillment capabilities [70][71] Question: Factors influencing margin guidance - Management expects to offset cost inflation with pricing and utilization improvements, aiming for margins in the mid to upper part of the guidance range [74] Question: Drivers behind the sharp increase in revenue outlook - The increase is attributed to strong relationships with existing clients and the removal of previous cautiousness in guidance [80][81] Question: Global diversification and onsite market mix - Currently, the company operates at a 95% offshore and 5% onsite model, with plans to increase onsite presence as demand normalizes [89][90] Question: Attrition rate stabilization - Management believes the attrition rate has stabilized and expects it to normalize in the coming quarters [92][93]