Globant(US:GLOB)2021-02-19 01:49Financial Data and Key Metrics Changes - In Q4 2020, the company reported revenues of $232.6 million, reflecting a 26.2% year-over-year growth and a 12.3% sequential increase [8][36] - For the full year 2020, revenues totaled $814.1 million, up 23.5% from the previous year [8][55] - Adjusted net income for Q4 2020 was $28.5 million, representing a 12.3% adjusted net income margin, compared to $24.2 million or 13.1% in Q4 2019 [51][64] - Adjusted diluted EPS for Q4 was $0.70, up from $0.64 in the same quarter of the previous year [52] Business Line Data and Key Metrics Changes - The largest customer, Disney, grew by 14.8% year-over-year and 10.4% quarter-over-quarter [38] - Revenues from the top five and top ten accounts increased by 40.2% and 40.8% respectively year-over-year [39] - The top three industry verticals for Q4 were banks, financial services, and insurance (23.7% of revenues), media and entertainment (21.8%), and consumer retail and manufacturing (13.8%) [40] Market Data and Key Metrics Changes - In Q4 2020, 65.9% of revenues were from North America, 24.3% from Latin America and others, and 9.8% from Europe [42] - European revenues grew by 142.9% year-over-year and 43.6% sequentially [42] - Latin America and others showed a 54% year-over-year growth [42] Company Strategy and Development Direction - The company aims to reinvent the professional services industry by focusing on six pillars: sustainable business strategy, culture and agility, engaging experiences, adaptive organizations, technology and data, and augmented capabilities [10] - The acquisition of Bluecap, a consulting firm in financial services, is expected to strengthen the consulting portfolio [12][13] - The company is committed to sustainability and diversity, launching initiatives like the Women that Build awards and a training program for young people in technology [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment post-COVID-19, noting strong bookings and a healthy pipeline [37][66] - The company remains cautious about potential impacts from new COVID-19 lockdowns but is encouraged by ongoing positive trends in various sectors [37] - The outlook for Q1 2021 anticipates revenues of at least $258 million, representing a 34.7% year-over-year growth [66] Other Important Information - The company reported a low attrition rate of 13% compared to 14.6% in Q4 2019, indicating strong employee retention [44] - Adjusted operating income for Q4 was $37.9 million, or 16.3% of revenues, compared to $30.4 million or 16.5% in Q4 2019 [46] - The company plans to continue investing in technology and training to meet future demand [45][67] Q&A Session Summary Question: Outlook for growth compared to last year - Management noted that demand is coming from various industries, not just key accounts, indicating a broad-based recovery [76][78] Question: Potential for acquisitions - The focus remains on organic growth, but the company is open to strategic acquisitions that enhance business development [78] Question: Workforce expansion and delivery model - The company is hiring significantly in regions like India, Brazil, and Mexico, with a focus on a hybrid work model [86][93] Question: Trends in bookings - There has been a strong increase in bookings across multiple industries, with a notable momentum in healthcare and e-commerce [108][110]