Latest news with #GLOB
Yahoo
3 days ago
- Business
- Yahoo
Globant (GLOB) Beats Q2 Earnings and Revenue Estimates
Globant (GLOB) came out with quarterly earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.52 per share. This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +0.66%. A quarter ago, it was expected that this information technology services provider would post earnings of $1.58 per share when it actually produced earnings of $1.5, delivering a surprise of -5.06%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Globant, which belongs to the Zacks Internet - Software and Services industry, posted revenues of $614.18 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $587.46 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Globant shares have lost about 62.8% since the beginning of the year versus the S&P 500's gain of 10%. What's Next for Globant? While Globant has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Globant was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.55 on $621.53 million in revenues for the coming quarter and $6.14 on $2.47 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software and Services is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Nebius Group (NBIS), another stock in the same industry, has yet to report results for the quarter ended June 2025. This an AI-centric cloud platform is expected to post quarterly loss of $0.42 per share in its upcoming report, which represents a year-over-year change of -161.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Nebius Group's revenues are expected to be $95.05 million, down 96.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Globant S.A. (GLOB) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Globant Reports 2025 Second Quarter Financial Results
LUXEMBOURG, Aug. 14, 2025 /PRNewswire/ -- Globant (NYSE: GLOB) today announced results for the three months ended June 30, 2025. "This quarter, we continued making the strategic investments and bold moves needed to fully align with our new business model. As GenAI adoption accelerates across industries and the AI ecosystem grows in complexity, our market opportunity expands even further. Our pipeline has reached an all-time high of $3.7 billion—up 25% year-over-year—reflecting strong demand for our differentiated offering. At the center of this growth are our AI Pods, subscription model, AI Studios, and Globant Enterprise AI platform, which together define the "golden path" for enterprise-scale GenAI adoption. With our subscription model and AI Pods, we are reinventing the professional services industry—positioning Globant as a full-stack AI company that designs, builds, and integrates technology, platforms, and industry-specific expertise into scalable, outcome-driven solutions", expressed Martín Migoya, Globant CEO and co-founder. "Our second-quarter results underscore the resilience and operational discipline of our business. We delivered revenues of $614.2 million, an adjusted operating margin of 15.0%, and an adjusted diluted EPS of $1.53, reflecting both consistent execution and our ability to adapt in a dynamic market. During the quarter, we complemented our growth trajectory with the execution of strategic investments and a Business Optimization Plan, which included a one-time charge of $47.6 million. This initiative is a vital step toward enhancing our near-term profitability while strategically allocating resources for our AI Pods, subscription model and Globant Enterprise AI, positioning us as a full stack AI-company," explained Juan Urthiague, Globant's CFO. 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 2025 Financial Highlights Revenues rose to $614.2 million, representing 4.5% year-over-year growth. IFRS Gross Profit Margin was 35.4% compared to 35.7% in the second quarter of 2024. Non-IFRS Adjusted Gross Profit Margin was 38.1% compared to 38.1% in the second quarter of 2024. IFRS Profit from Operations Margin was 1.0% compared to 9.2% in the second quarter of 2024. Non-IFRS Adjusted Profit from Operations Margin was 15.0% compared to 15.1% in the second quarter of 2024. IFRS Diluted EPS was $(0.05) compared to $0.87 in the second quarter of 2024. Non-IFRS Adjusted Diluted EPS was $1.53 compared to $1.51 in the second quarter of 2024. Other Metrics as of and for the quarter ended June 30, 2025 Cash and cash equivalents and Short-term investments were $174.2 million as of June 30, 2025. Globant completed the second quarter of 2025 with 30,084 Globers, 28,097 of whom were technology, design and innovation professionals. The geographic revenue breakdown for the second quarter of 2025 was as follows: 54.1% from North America (top country: US), 19.7% from Latin America (top country: Argentina), 19.6% from Europe (top country: Spain) and 6.6% from New Markets[1] (top country: Saudi Arabia). Globant's top customer, top five customers and top ten customers for the second quarter of 2025 represented 8.6%, 20.3% and 29.3% of revenues, respectively. During the twelve months ended June 30, 2025, Globant served a total of 981 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 339 accounts generating more than $1 million of annual revenues, compared to 329 for the same period one year ago. In terms of currencies, 64.1% of Globant's revenues for the second quarter of 2025 were denominated in US dollars. 2025 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 2025: Third quarter 2025 Revenues are estimated to be at least $615.0 million, or 0.1% year-over-year growth. This expected growth includes a positive FX impact of 50 basis points. Third quarter 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%. Third quarter 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.53 (assuming an average of 45.6 million diluted shares outstanding during the third quarter). Fiscal year 2025 Revenues are estimated to be at least $2,445.0 million, implying at least 1.2% year-over-year revenue growth. This expected growth includes a positive FX impact of 25 basis points. Fiscal year 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%. Fiscal year 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $6.12 (assuming an average of 45.5 million diluted shares outstanding during 2025). Shareholder Letter, Conference Call and WebcastA shareholder letter will be available in the Investor Relations section of Globant's website. Martin Migoya, Globant's Chief Executive Officer & co-founder, Juan Urthiague, Globant's Chief Financial Officer, and Diego Tártara, Globant's Chief Technology Officer, will discuss the second quarter 2025 results in a video conference call today beginning at 4:30 pm ET. This call will be followed by a live Q&A session. Video conference call access information is: Webcast 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 have more than 30,000 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among 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 more information, please visit Non-IFRS Financial Measures While the financial figures included in this press release have been computed in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB"), this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" or 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 Accounting Standards. 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, business optimization costs, 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, 2025 and December 31, 2024 and its condensed interim consolidated statements of comprehensive income for the three and six months ended June 30, 2025 and 2024, 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, our pipeline, 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 Interim Consolidated Statements of Comprehensive Income(In thousands of U.S. dollars, except per share amounts, unaudited)Six months endedThree Months Ended June 30, 2025June 30, 2024June 30, 2025June 30, 2024 Revenues 1,225,2651,158,539614,180587,461 Cost of revenues (794,394)(746,769)(396,539)(377,912) Gross profit 430,871411,770217,641209,549 Selling, general and administrative expenses (321,238)(306,699)(159,543)(154,585) Net impairment losses on financial assets (6,339)(5,327)(4,660)(3,162) Business Optimization Costs (47,580)—(47,580)— Other operating income and expenses, —1,961—1,961 Profit from operations 55,714101,7055,85853,763 Finance income 1,9232,5279781,402 Finance expense (20,599)(13,502)(10,972)(6,233) Other financial results, net 8615,606(239)532 Financial results, net (17,815)(5,369)(10,233)(4,299) Share of results of investment in associates 6562370 Other income and expenses, net (3,385)10,606(114)595 Profit (Loss) before income tax 34,520106,998(4,466)50,129 Income tax (7,749)(23,044)742(10,104) Net income (loss) for the period 26,77183,954(3,724)40,025 Other comprehensive income, net of income tax effectsItems that may be reclassified subsequently to profit and loss:- Exchange differences on translating foreign operations 80,377(43,013)51,288(24,405) - Net change in fair value on financial assets measured at FVOCI (5,798)1,019(5,798)894 - Gains and losses on cash flow hedges 13,158(13,133)3,000(4,378) Total comprehensive income for the period 114,50828,82744,76612,136 Net income attributable to:Owners of the Company 28,25283,718(2,383)38,658 Non-controlling interest (1,481)236(1,341)1,367 Net income (loss) for the period 26,77183,954(3,724)40,025 Total comprehensive income for the period attributable to:Owners of the Company 109,57430,59841,85011,589 Non-controlling interest 4,934(1,771)2,916547 Total comprehensive income for the period 114,50828,82744,76612,136 Earnings per shareBasic 0.641.94(0.05)0.89 Diluted 0.621.89(0.05)0.87 Weighted average of outstanding shares (in thousands)Basic 44,17743,17244,29843,244 Diluted 45,42444,22044,29844,292 Globant Interim Consolidated Statements of Financial Position as of June 30, 2025 and December 31, 2024(In thousands of U.S. dollars, unaudited) June 30, 2025December 31, 2024 ASSETS Current assets Cash and cash equivalents 167,431142,093 Investments6,81213,992 Trade receivables636,387605,002 Other assets32,09920,420 Other receivables97,58653,939 Other financial assets9,8893,100 Total current assets950,204838,546Non-current assets Investments 2,3982,212 Other assets 5,9894,750 Other receivables 48,86240,784 Deferred tax assets84,53480,811 Investment in associates1,6531,648 Other financial assets 41,24141,403 Property and equipment147,939154,755 Intangible assets358,803377,365 Right-of-use assets104,947122,884 Goodwill1,650,6801,517,252 Total non-current assets2,447,0462,343,864 TOTAL ASSETS3,397,2503,182,410LIABILITIES Current liabilities Trade payables113,271114,743 Payroll and social security taxes payable217,029239,440 Borrowings20,1741,601 Other financial liabilities146,679153,803 Lease liabilities25,96829,736 Tax liabilities22,79736,916 Income tax payable8,8676,520 Other liabilities99231 Total current liabilities554,884582,990Non-current liabilities Trade payables 4,9572,006 Borrowings 409,115290,935 Other financial liabilities 102,036125,651 Lease liabilities 81,39787,887 Deferred tax liabilities29,55529,611 Income tax payable 1,2166,625 Payroll and social security taxes payable 1,7125,187 Provisions for contingencies23,09618,169 Total non-current liabilities653,084566,071 TOTAL LIABILITIES1,207,9681,149,061Capital and reserves Issued capital53,40852,837 Additional paid-in capital1,239,0701,193,029 Other reserves(63,434)(144,756) Retained earnings 891,073862,821 Total equity attributable to owners of the Company2,120,1171,963,931 Non-controlling interests69,16569,418 Total equity2,189,2822,033,349 TOTAL EQUITY AND LIABILITIES3,397,2503,182,410 Globant Cash Flow Data(In thousands of U.S. dollars, unaudited) Three Months Ended June 30, 2025June 30, 2024 Net Income for the period(3,724)40,025 Non-cash adjustments, taxes and others57,88341,788 Changes in working capital(32,281)(71,646) Cash flows from operating activities21,87810,167 Capital expenditures(24,735)(38,155) Cash flows from investing activities(68,763)(60,656) Cash flows from financing activities103,757(17,514) Net increase/decrease in cash & cash equivalents56,872(68,003) Globant Non-IFRS Financial Information(In thousands of U.S. dollars, unaudited)Six months ended Three Months EndedJune 30, 2025June 30, 2024 June 30, 2025June 30, 2024Reconciliation of adjusted gross profit Gross profit 430,871411,770 217,641209,549 Depreciation and amortization expense 22,24115,958 11,0858,525 Share-based compensation expense - Equity settled 13,20312,901 5,5135,759 Adjusted gross profit 466,315440,629 234,239223,833 Adjusted gross profit margin 38.1 %38.0 % 38.1 %38.1 %Reconciliation of selling, general and administrative expenses Selling, general and administrative expenses (321,238)(306,699) (159,543)(154,585) Depreciation and amortization expense 59,59450,507 29,93925,442 Share-based compensation expense - Equity settled 27,66026,714 14,27514,399 Acquisition-related charges (a) 12,20615,584 5,6395,986 Adjusted selling, general and administrative expenses (221,778)(213,894) (109,690)(108,758) Adjusted selling, general and administrative expenses as % of revenues (18.1) %(18.5) % (17.9) %(18.5) %Reconciliation of adjusted profit from operations Profit from operations 55,714101,705 5,85853,763 Share-based compensation expense - Equity settled 40,86339,615 19,78820,158 Acquisition-related charges (a) 38,47732,880 18,87214,736 Business optimization costs (b) 47,580— 47,580— Adjusted profit from operations 182,634174,200 92,09888,657 Adjusted profit from operations margin 14.9 %15.0 % 15.0 %15.1 %Reconciliation of net income for the period Net income for the period 28,25283,718 (2,383)38,658 Share-based compensation expense - Equity settled 40,37839,425 19,35920,077 Acquisition-related charges (a) 54,26626,380 26,30916,440 Business optimization costs (b) 46,453— 46,453— Tax effect of non-IFRS adjustments (31,811)(15,117) (20,035)(8,313) Adjusted net income 137,538134,406 69,70366,862 Adjusted net income margin 11.2 %11.6 % 11.3 %11.4 %Calculation of adjusted diluted EPS Adjusted net income 137,538134,406 69,70366,862 Diluted shares 45,42444,220 45,54544,292 Adjusted diluted EPS 3.033.04 1.531.51 (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. (b) One-time charges for the three and six months ended June 30, 2025 related to the Company's Business Optimization Program initiated in April 2025. These charges, primarily related to workforce resizing and office reductions, have been excluded from non-IFRS results as these are one-time and unusual in nature. Globant of Supplemental Information (unaudited) Metrics Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Total Employees 29,112 29,998 31,280 31,102 30,084 IT Professionals 27,133 27,927 29,198 29,022 28,097 North America Revenues % 56.3 55.7 55.2 55.5 54.1 Latin America Revenues % 23.0 21.8 20.4 19.6 19.7 Europe Revenues % 16.9 17.6 17.7 18.2 19.6 New Markets Revenues % 3.8 4.9 6.7 6.7 6.6 USD Revenues % 67.1 66.6 64.8 67.2 64.1 Other Currencies Revenues % 32.9 33.4 35.2 32.8 35.9 Top Customer % 8.3 9.1 9.1 8.8 8.6 Top 5 Customers % 21.0 21.0 19.8 20.0 20.3 Top 10 Customers % 30.3 30.1 29.3 29.1 29.3 Customers Served (Last Twelve Months)* 958 969 1,012 1,004 981 Customers with >$1M in Revenues (Last Twelve Months) 329 331 346 341 339 (*) Represents customers with more than $100,000 in revenues in the last twelve months. [1] Represents Asia, Oceania and the Middle East. Investor Relations Contact:Arturo Langa, Globantinvestors@ (877) 215-5230 Media Contact:Gregorio Lascano, Globantpr@ (877) 215-5230 View original content to download multimedia: SOURCE Globant
Yahoo
11-07-2025
- Business
- Yahoo
Globant, Suntory Global Spirits Partner to Deploy Gen AI Commercial Insights Agent
Globant (NYSE:GLOB) is one of the cheap IT stocks hedge funds are buying. On July 7, Globant announced a partnership with Suntory Global Spirits, which is a leader in premium spirits. The collaboration aims to build and deploy a gen AI-powered Commercial Insights Agent for Suntory Global Spirits. This AI Agent is designed to transform operations by compressing days of work into seconds and facilitating real-time decision-making. The AI-powered Commercial Insights Agent can interpret complex business questions across dashboards, reports, and unstructured documentation. By automating insight retrieval, the agent is expected to reduce operating costs associated with traditional business intelligence workflows and decrease the time-to-action. A close-up of an experienced game engineer's hands typing a complex code on a laptop. Additional benefits of the Commercial Insights Agent for Suntory Global Spirits include self-serve decision support at scale, which allows teams in different departments to independently access data insights, ask questions, or generate reports without dependencies on other teams. The agent is also trained on internal data to provide contextual GenAI recommendations. Globant (NYSE:GLOB) provides technology services worldwide. While we acknowledge the potential of GLOB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
02-07-2025
- Business
- Yahoo
Globant S.A (GLOB) Announces a New Suite of AI Tools for Marketing
Globant S.A. (NYSE:GLOB) is one of the 10 Best 52-Week Low Tech Stocks To Buy According to Analysts. On June 18, Globant S.A. (NYSE:GLOB) announced the launch of Globant Fusion, which is a new suite of AI tools designed for marketing, communications, and advertising. The announcement came in at the Cannes Lions International Festival of Creativity and marks the first set of AI agents designed for full-funnel marketing. Globant S.A. (NYSE:GLOB) combined the company's GUT creative skills with its advanced AI platform allowing marketing teams to turn proven ideas into smart, scalable solutions. A close-up of an experienced game engineer's hands typing a complex code on a laptop. The new suite of tools centralizes key marketing tasks in one system. It adapts to different channels, budgets, and business needs. Globant Fusion includes AI Agents like Scale Ads, Content, Images, Video, and Landing Pages. Management noted that early clients using the tools have seen a 23% increase in click-through rates, four times more assets created, and six times faster adaptations. Globant S.A. (NYSE:GLOB) is a technology services company that designs and builds innovative software products and solutions to help businesses transform digitally. While we acknowledge the potential of GLOB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Globant SA (GLOB) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst Challenges
Revenue: $611.1 million, representing a 7% increase year-over-year and 8.6% in constant currency. Adjusted Gross Margin: 38%, flat year-over-year. Adjusted Operating Margin: 14.8% for the quarter. Adjusted Net Income: $67.8 million. Adjusted Diluted EPS: $1.50 for the quarter. Cash and Cash Equivalents: $120.2 million. Net Debt: $167 million. Free Cash Flow: Consumed $5.7 million in the first quarter. Revenue Guidance for Q2 2025: At least $612 million, 4.2% year-over-year growth. Full Year 2025 Revenue Guidance: At least $2.464 billion, 2% year-over-year growth. Adjusted Operating Margin Guidance: At least 15% for both Q2 and full year 2025. Adjusted Diluted EPS Guidance for Q2 2025: At least $1.52. Adjusted Diluted EPS Guidance for Full Year 2025: At least $6.10. Utilization Rate: 78.2% in Q1 2025. Adjusted SG&A as a Percentage of Sales: 18.3% in Q1 2025. Warning! GuruFocus has detected 5 Warning Signs with GLOB. Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Globant SA (NYSE:GLOB) reported a solid quarter with revenues reaching $611.1 million, representing an 8.6% year-over-year growth in constant currency. The company has a robust pipeline with a 20% increase over the last year, indicating strong future growth potential. Globant SA (NYSE:GLOB) is well-positioned in the AI market, which is expected to reach $4.3 trillion by 2035, due to its 10 years of strategic investment in artificial intelligence. The company has introduced a new AI-powered subscription model, which offers a flexible, transparent way to collaborate with clients and aligns incentives around outcomes. Globant SA (NYSE:GLOB) has seen strong growth in new markets, particularly in the Middle East, APAC, and Europe, with new markets posting an 84.4% year-over-year growth. The company's Q1 performance came in below initial expectations, and the revised annual guidance aligns more closely with broader industry events. Globant SA (NYSE:GLOB) is operating in a challenging macroeconomic environment, with a significant probability of a recession in the US and softened consumer spending. There has been a slower pace of pipeline conversion in the US, and growth in some Latin American countries has been lower than expected. The company experienced a challenging performance in Latin America, with revenues down close to 9% year-over-year, particularly in Mexico and Brazil. Adjusted operating margin for the quarter was 14.8%, falling short of expectations due to lower-than-expected revenues. Q: How quickly do you think you can recover demand or spend specifically in Latin America, and what measures are you taking to reenergize growth there? A: Martin Migoya, CEO, explained that while there are delays in deals, particularly in Mexico and Brazil, the pipeline is 20% higher than last year, indicating potential recovery. Some recovery is already happening in Argentina and Chile. The expectation is for a stable Q2, with a cautious outlook for the full year due to macroeconomic uncertainties. Q: If the business environment deteriorates further, do you have measures to protect margins and profitability? A: Juan Urthiague, CFO, stated that measures are already in place to protect margins and profitability, including optimizing utilization and disciplined pricing strategies. If further deterioration occurs, additional measures will be taken to maintain profitability. Q: Can you provide insights into the backlog of signed contracts and how it compares to last year? A: Juan Urthiague, CFO, mentioned that visibility for Q2 is high, and the guidance reflects current visibility, which is slightly lower than prior years. The second half guidance assumes a stable environment without significant improvement or deterioration. Q: How is the US business performing outside of Latin America, and which sectors are most affected? A: Martin Migoya, CEO, noted that sectors like entertainment, high tech, and healthcare have been impacted, while financial services and professional services have been more stable. The consumer-facing sectors have been hit hardest due to tariffs and macroeconomic uncertainties. Q: How are you managing your employee base and resourcing plans for the rest of the year? A: Juan Urthiague, CFO, explained that Globant continues to maintain a diversified delivery footprint across various countries. The focus remains on prioritizing demand growth areas while maintaining a global delivery strategy to serve a global revenue company. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
