Growth Outlook Remains Strong, Executing on Profitability LUXEMBOURG , Aug. 15, 2024 /PRNewswire/ -- Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced results for the three and six months ended June 30, 2024 . Please see highlights below.
Note that reconciliations between IFRS and Non-IFRS financial measures are disclosed at the end of this press release. Second Quarter 2024 Financial Highlights Six months ended June 30, 2024 Financial Highlights Other Metrics as of and for the quarter ended June 30, 2024 "As we celebrate our tenth anniversary as a public company, Globant remains steadfast in its commitment to long-term growth and industry leadership. Our recent quarterly results demonstrate robust revenue growth and strong performance across all regions and verticals, particularly in media, sports, and entertainment.
Our AI-related revenues have significantly grown by nearly 130% in the first half of 2024, underscoring our pivotal role in the ongoing AI revolution. With the unveiling of our AI agents, which enhance the software development life cycle, and the introduction of the Globant GUT Network at the Cannes Lions International Festival of Creativity, we are poised to meet the growing demands for AI-based solutions across the global economy. Our entrepreneurial and innovative mindset continues to drive us forward, fostering lasting client relationships and delivering exceptional shareholder returns," said Martín Migoya, Globant's CEO and co-founder.
"As we look ahead, we are optimistic about our record-high pipeline and the transformative potential of generative AI to shape the future of our industry." "We are very proud of the results today, which reflect our strong execution. This quarter, we achieved revenues of $587.
5 million , up 18.1% year-over-year, driven by a broad-based performance. Our ability to maintain high profitability, despite the challenging economic environment, is a reflection of our operational efficiency.
As we look ahead, we are maintaining a strong growth outlook for the remainder of the year. This is supported by our continued expansion across different regions and our investments in broadening our service offering. Additionally, the increase in AI-related revenues is translating into tangible revenue growth for Globant.
We remain encouraged by the opportunities ahead for the company, and are committed to delivering industry leading growth and profitability," explained Juan Urthiague, Globant's CFO. 2024 Third Quarter and Full Year Outlook Based on current market conditions, Globant is providing the following estimates for the third quarter and the full year of 2024: Conference Call and Webcast Martin Migoya , Globant's CEO and co-founder, Juan Urthiague, Globant's CFO, Patricia Pomies , Globant's COO, and Diego Tártara, Globant's CTO, will discuss the second quarter 2024 results in a video conference call today beginning at 4:30pm ET . Video conference call access information is: https://more.
globant.com/F2Q24EarningsCall Webcast http://investors.globant.
com/ About Globant (NYSE:GLOB) At Globant, we create the digitally-native products that people love. We bridge the gap between businesses and consumers through technology and creativity, leveraging our expertise in AI. We dare to digitally transform organizations and strive to delight their customers.
We have more than 29,100 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among others. We were named a Worldwide Leader in CX Improvement by IDC MarketScape report. We were also featured as a business case study at Harvard , MIT and Stanford .
We are a member of the Cybersecurity Tech Accord. For more information, please visit www.globant.
com Non-IFRS Financial Measures While the financial figures included in this press release have been computed in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" nor a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". The financial information in this press release has not been audited. Globant provides non-IFRS financial measures in addition to reported IFRS results prepared in accordance with IFRS.
Management believes these measures help illustrate underlying trends in the company's business and uses the non-IFRS financial measures to establish budgets and operational goals, communicated internally and externally, for managing the company's business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS measures that exclude share-based compensation expense, depreciation and amortization, acquisition-related charges, and the related effect on income taxes of the pre-tax adjustments. Because the company's non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company's industry.
Consequently, Globant's non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its condensed interim consolidated statements of financial position as of June 30, 2024 and December 31, 2023 and its condensed interim consolidated statements of comprehensive income for the three and six months ended June 30, 2024 and 2023, prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting". Globant is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, share-based compensation expense, acquisition-related charges, and the tax effect of non-IFRS adjustments.
These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period. Forward Looking Statements In addition to historical information, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions.
These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America ; and other factors discussed under the heading "Risk Factors" in our most recent Form 20-F filed with the U.
S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements.
Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise. Globant S.A.
Condensed Interim Consolidated Statements of Comprehensive Income (In thousands of U.S. dollars, except per share amounts, unaudited) Six Months Ended Three Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenues 1,158,539 969,952 587,461 497,531 Cost of revenues (746,769) (620,814) (377,912) (316,690) Gross profit 411,770 349,138 209,549 180,841 Selling, general and administrative expenses (306,699) (247,533) (154,585) (128,176) Net impairment losses on financial assets (5,327) (11,358) (3,162) (6,641) Other operating income and expenses, net 1,961 614 1,961 614 Profit from operations 101,705 90,861 53,763 46,638 46638 Finance income 2,527 2,176 1,402 941 Finance expense (13,502) (9,402) (6,233) (5,230) Other financial results, net 5,606 8,429 532 4,667 Financial results, net (5,369) 1,203 (4,299) 378 Share of results of investment in associates 56 15 70 (41) Other income and expenses, net 10,606 1,301 595 (186) Profit before income tax 106,998 93,380 50,129 46,789 Income tax (23,044) (20,089) (10,104) (9,883) Net income for the period 83,954 73,291 40,025 36,906 Other comprehensive income, net of income tax effects Items that may be reclassified subsequently to profit and loss: - Exchange differences on translating foreign operations (43,013) 1,252 (24,405) (1,489) - Net change in fair value on financial assets measured at FVOCI 1,019 (2,331) 894 (2,356) - Gains and losses on cash flow hedges (13,133) 3,879 (4,378) (327) Total comprehensive income for the period 28,827 76,091 12,136 32,734 Net income attributable to: Owners of the Company 83,718 73,412 38,658 36,993 Non-controlling interest 236 (121) 1,367 (87) Net income for the period 83,954 73,291 40,025 36,906 Total comprehensive income for the period attributable to: Owners of the Company 30,598 75,027 11,589 32,898 Non-controlling interest (1,771) 1,064 547 (164) Total comprehensive income for the period 28,827 76,091 12,136 32,734 Earnings per share Basic 1.
94 1.73 0.89 0.
87 Diluted 1.89 1.70 0.
87 0.85 Weighted average of outstanding shares (in thousands) Basic 43,172 42,362 43,244 42,426 Diluted 44,220 43,309 44,292 43,373 Globant S.A.
Condensed Interim Consolidated Statements of Financial Position as of June 30, 2024 and December 31, 2023 (In thousands of U.S. dollars, unaudited) June 30, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents 157,629 307,223 Investments 22,736 16,070 Trade receivables 578,819 499,283 Other assets 25,312 31,753 Other receivables 64,745 54,786 Other financial assets 4,338 15,418 Total current assets 853,579 924,533 Non-current assets Investments 2,115 1,833 Other assets 4,973 4,088 Other receivables 26,243 26,475 Deferred tax assets 59,763 60,777 Investment in associates 1,482 1,426 Other financial assets 37,008 34,864 Property and equipment 151,873 162,736 Intangible assets 284,518 285,661 Right-of-use assets 120,676 119,400 Goodwill 1,076,761 1,105,073 Total non-current assets 1,765,412 1,802,333 TOTAL ASSETS 2,618,991 2,726,866 LIABILITIES Current liabilities Trade payables 101,251 124,545 Payroll and social security taxes payable 191,950 221,843 Borrowings 125,605 156,916 Other financial liabilities 67,659 68,750 Lease liabilities 31,809 47,852 Tax liabilities 25,797 33,229 Income tax payable 5,565 11,287 Other liabilities 1,611 896 Total current liabilities 551,247 665,318 Non-current liabilities Trade payables 3,173 2,981 Borrowings 1,777 2,191 Other financial liabilities 91,070 135,238 Lease liabilities 84,205 70,884 Deferred tax liabilities 19,861 21,098 Income tax payable 4,372 — Payroll and social security taxes payable 3,470 5,139 Provisions for contingencies 20,718 28,336 Total non-current liabilities 228,646 265,867 TOTAL LIABILITIES 779,893 931,185 Capital and reserves Issued capital 52,039 51,705 Additional paid-in capital 1,041,459 1,022,918 Other reserves (95,168) (42,048) Retained earnings 780,807 697,089 Total equity attributable to owners of the Company 1,779,137 1,729,664 Non-controlling interests 59,961 66,017 Total equity 1,839,098 1,795,681 TOTAL EQUITY AND LIABILITIES 2,618,991 2,726,866 Globant S.
A. Selected Cash Flow Data (In thousands of U.S.
dollars, unaudited) Three Months Ended June 30, 2024 June 30, 2023 Net Income for the period 40,025 36,906 Non-cash adjustments, taxes and others 41,788 61,928 Changes in working capital (71,646) (62,444) Cash flows from operating activities 10,167 36,390 Capital expenditures (38,155) (27,822) Cash flows from investing activities (60,656) (35,510) Cash flows from financing activities (17,514) (13,256) Net decrease in cash & cash equivalents (68,003) (12,376) Globant S.A. Supplemental Non-IFRS Financial Information (In thousands of U.
S. dollars, unaudited) Six Months Ended Three Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Reconciliation of adjusted gross profit Gross profit 411,770 349,138 209,549 180,841 Depreciation and amortization expense 15,958 13,033 8,525 6,601 Share-based compensation expense - Equity settled 12,901 8,778 5,759 3,188 Adjusted gross profit 440,629 370,949 223,833 190,630 Adjusted gross profit margin 38.0 % 38.
2 % 38.1 % 38.3 % Reconciliation of selling, general and administrative expenses Selling, general and administrative expenses (306,699) (247,533) (154,585) (128,176) Depreciation and amortization expense 50,507 40,489 25,442 20,710 Share-based compensation expense - Equity settled 26,714 24,995 14,399 13,865 Acquisition-related charges (a) 15,584 9,118 5,986 4,570 Adjusted selling, general and administrative expenses (213,894) (172,931) (108,758) (89,031) Adjusted selling, general and administrative expenses as % of revenues (18.
5) % (17.8) % (18.5) % (17.
9) % Reconciliation of adjusted profit from operations Profit from operations 101,705 90,861 53,763 46,638 Share-based compensation expense - Equity settled 39,615 33,773 20,158 17,053 Acquisition-related charges (a) 32,880 21,142 14,736 10,727 Adjusted profit from operations 174,200 145,776 88,657 74,418 Adjusted profit from operations margin 15.0 % 15.0 % 15.
1 % 15.0 % Reconciliation of net income for the period Net income for the period 83,718 73,412 38,658 36,993 Share-based compensation expense - Equity settled 39,425 33,749 20,077 17,029 Acquisition-related charges (a) 26,380 20,761 16,440 10,889 Tax effect of non-IFRS adjustments (15,117) (13,660) (8,313) (6,053) Adjusted net income 134,406 114,262 66,862 58,858 Adjusted net income margin 11.6 % 11.
8 % 11.4 % 11.8 % Calculation of adjusted diluted EPS Adjusted net income 134,406 114,262 66,862 58,858 Diluted shares 44,220 43,309 44,292 43,373 Adjusted diluted EPS 3.
04 2.64 1.51 1.
36 (a) Acquisition-related charges include, when applicable, amortization of purchased intangible assets included in depreciation and amortization expense line on our consolidated statements of comprehensive income, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, and other acquisition-related costs. We cannot provide acquisition-related charges on a forward-looking basis without unreasonable effort as such charges may fluctuate based on the timing, size, and complexity of future acquisitions as well as other uncertainty inherent in mergers and acquisitions. Globant S.
A. Schedule of Supplemental Information (unaudited) Metrics Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total Employees 25,947 27,505 29,150 28,991 29,112 IT Professionals 24,163 25,575 27,116 26,933 27,133 North America Revenues % 60.6 58.
9 57.4 56.0 56.
3 Latin America Revenues % 22.0 21.6 22.
9 22.9 23.0 Europe Revenues % 13.
8 15.9 15.8 17.
2 16.9 New Markets Revenues % 3.6 3.
6 3.9 3.9 3.
8 USD Revenues % 73.9 72.5 68.
6 68.4 67.1 Other Currencies Revenues % 26.
1 27.5 31.4 31.
6 32.9 Top Customer % 8.8 8.
7 8.2 8.3 8.
3 Top 5 Customers % 23.7 22.5 21.
4 21.8 21.0 Top 10 Customers % 33.
3 32.2 30.8 30.
1 30.3 Customers Served (Last Twelve Months)* 835 889 930 955 958 Customers with >$1M in Revenues (Last Twelve Months) 283 305 311 318 329 (*) Represents customers with more than $100,000 in revenues in the last twelve months. Investor Relations Contact: Arturo Langa , Globant investors@globant.
com +1 (877) 215-5230 Media Contact: Wanda Weigert , Globant [email protected] +1 (877) 215-5230 1 Represents Asia , Oceania and the Middle East . View original content to download multimedia: https://www.
prnewswire.com/news-releases/globant-reports-2024-second-quarter-financial-results-302223857.html SOURCE Globant.
