Globant S.A. Q2 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Financial Highlights
  • Revenue: $614.2 million, up 4.5% year-over-year (YoY); 0.5% sequential growth.
  • Non-IFRS Operating Margin: 15%, consistent with prior year despite FX headwinds, particularly in Latin America.
  • Non-IFRS Diluted EPS: $1.53, slightly up from $1.51 in Q2 2024.
  • Free Cash Flow: -$2.9 million, significantly improved from -$28 million in Q2 2024.
  • Net Debt: $255 million as of June 30, with increased debt capacity of $1.1 billion.
Guidance
  • Q3 2025: Revenue of at least $615 million (+0.1% YoY), EPS of at least $1.53, operating margin at least 15%.
  • Full-Year 2025: Revenue of at least $2.445 billion (+1.2% YoY), EPS of at least $6.12, operating margin of at least 15%.
Business Developments
  • Strong Pipeline: Record $3.7 billion, up 25% YoY, with growing interest in healthcare, financial services, CPG, and gaming sectors.
  • AI Pods Traction: 18 paying clients adopted Globant’s unique subscription-based AI Pod delivery model within just one quarter of launch.

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Arturo Langa: Good afternoon, and welcome to Globant's Second Quarter 2025 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. We will begin with remarks by our Chief Executive Officer, Martin Migoya; our Chief Financial Officer, Juan Urthiague; and our Chief Technology Officer, Diego Tartara. This will be followed by a Q&A section. 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 will now turn the call over to Martin Migoya. Martin Migoya: Good afternoon, everyone, and thank y

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