Globant S.A. Q2 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

Globant Q2 2023 Earnings Summary

  • Record Revenue: Q2 revenue reached $497.5M, marking an all-time high with 15.9% year-over-year (YoY) growth and 5.3% quarter-over-quarter (QoQ) growth.
  • Strong Pipeline and Guidance: Bookings for the first half of 2023 were 40% higher than second half of 2022. Q3 guidance targets $545M in revenue (18.8% YoY growth, 9.5% QoQ growth), with full-year revenue expected at $2.094B (17.6% YoY thanks to both organic growth of ~11.4% and ~2% from acquisitions).
  • Profitability: Adjusted gross margin was 38.3%; adjusted operating margin was 15%, in line with guidance. Adjusted EPS was $1.36 (up 11.5% YoY). Adjusted net income was $58.9M.
  • Regional Performance: Revenue by region—North America: 60.6% (3.9% QoQ growth), LatAm: 22% (6.7%), EMEA: 14.1% (10.2%), APAC: 3.3% (1.8%). Europe saw significant growth driven by expansion and M&A (notably Pentalog).
  • Vertical Highlights: Healthcare led with 18.8% QoQ growth, BFSI: +8.4%, Consumer/Retail/Manufacturing: +7.8%, Travel & Hospitality: +7.1%, Media & Entertainment: +5.5%. Tech & Telco declined 5% QoQ, but stabilized into H2.

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Operator: Good day, and welcome to Globant's Second Quarter 2023 Earnings Conference Call. I am Arturo Langa, Head of Investor Relations at Globant. You've just seen our latest spot, showcasing our experience in artificial intelligence for today's market. In our call today, all participants on this call will be on listen-only mode. After today's presentation, there will be an opportunity to ask questions. 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 Martin Migoya, Co-Founder and Chief Executive Officer; Juan Urthiague, Chief Financial Officer; Patricia Pomies, Chief Operating Officer; and Diego Tartara, Chief Technology Officer. Before we begin, I would like to remind you that some of our comments on our call today may be deemed forward-looking statements. This includes our business and financial outlook and the answer to some of your questions. Such statements are subject to the risk 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 m

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