Globant S.A. Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights (Q2 2020)
  • Revenue: $182.7 million (16% YoY growth; 17.9% YoY growth in constant currency), exceeded guidance.
  • Adjusted Gross Margin: 38.2% (down from 40.2% in Q2 2019).
  • Adjusted Operating Income: $24.6 million (13.5% margin vs. 16.4% in Q2 2019).
  • Adjusted Net Income: $19.9 million (10.9% margin vs. 12.6% in Q2 2019).
  • Adjusted Diluted EPS: $0.51 (vs. $0.53 in Q2 2019).
  • Cash & Investments: $404.1 million; Borrowings: $76.8 million.
  • Free Cash Flow: $20.2 million, typically stronger in H2.
  • Employee Base: 12,333 Globers, 11,573 of which are IT professionals (sequential decrease of 1.5% but 25.6% YoY growth).
YTD 2020 Performance (Six Months Ended June 30)
  • Revenue: $374.3 million (23.2% YoY growth).
  • Adjusted Gross Margin: 38.9% (down from 40.6% YTD 2019).
  • Adjusted Net Income: $44.3 million (11.8% margin vs. 12.6% YTD 2019).
  • Adjusted Diluted EPS: $1.15 (vs. $1.02 YTD 2019).
Q3 2020 Guidance
  • Revenue: At least $203 million (18.5% YoY growth).

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Operator: Good day, and welcome to the Globant Second Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask question. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Amit Singh, Head of Finance and Investor Relations for the U.S. Please go ahead. Amit Singh: Thank you, operator, and thanks, everyone, for joining us today on our call to review our second quarter 2020 financial results. By now, you should have received a copy of the earnings release. If you have not, a copy is available on our website, investors.globant.com. Our speakers today are Martín Migoya, Co-Founder and Chief Executive Officer; Juan Urthiague, Chief Financial Officer; and Patricia Pomies, Chief Delivery and People Officer. Before we begin, I would like to remind you that some of the comments on our call today may be deemed forward-looking statements. This includes our business and financial outlook and the answers to some of your questions. Such statements are subject to the risks and uncertainties as described in the company's earnings release and other filings with the SEC. Please note that we follow IFRS accounting rules in our financial statements. During our call today, we will report non-IFRS or adjusted measures, which is how we track performance internally and the easiest way to compare Globant to our peers in the

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