Globant S.A. Q2 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Total Revenue: $429.3 million, representing 40.6% year-over-year (YoY) growth and 6.9% quarter-over-quarter (QoQ) growth. This reflects higher growth than Q1 2022 (which was 5.7% QoQ).
  • Organic Revenue Growth: 36.6% YoY; in constant currency, revenue grew 42.1% YoY.
  • Adjusted Gross Profit: $168 million (adjusted gross margin of 39.1%), largely flat YoY despite salary increases.
  • Adjusted Operating Income: $69.2 million or 16.1% of revenue – stable versus Q2 2021.
  • Adjusted Net Income: $52.1 million, with an adjusted net income margin of 12.1% (up 10 bps YoY).
  • Adjusted Diluted EPS: $1.22, exceeding guidance of $1.20 and growing 38.6% YoY.
  • Free Cash Flow: $17.2 million in Q2 2022, up from $10.5 million in Q2 2021.
  • Headcount: 25,924 Globers (up 33% YoY in IT professionals); 1,252 new hires this quarter.
  • Attrition Rate: 19.9%, flat QoQ; June showed lowest attrition YTD and an improving trend expected to continue.
  • Net Promoter Score (NPS): 75 for Q2, vs. 68 in Q1 (industry benchmark: 41).

Guidance

  • Q3 Revenue: At least $456 million, representing 33.4% YoY growth (includes 2pp FX headwind).

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Arturo Langa: Good day, and welcome to Globant's Second Quarter 2022 Earnings Conference Call. I am Arturo Langa, Investor Relations Officer at Globant. [Operator Instructions] Please note, this event is being recorded and streamed live on YouTube. 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; Patricia Pomies, Chief Operating Officer; and Diego Tartara, Global Chief Technology 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 industry. You will find a reconciliation of IFRS and non-IFRS measures at the end of the press release we published on our Investor Relations website announcing this quarter's results. I'd now like to turn the call over to Martín Migoya, our CEO. Martín Migoya: Thank you, Arturo, and h

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional