Globant S.A. Q3 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: $341.8 million in Q3 2021 — up 65% YoY and 12% sequentially. The company forecasts full-year revenue of at least $1.276 billion, representing a 56.7% YoY increase.
  • Profitability:
    • Adjusted gross profit: $136.1 million; margin of 39.8% (up 80 bps YoY).
    • Adjusted operating income: $56.3 million; margin of 16.5% (vs. 15.3% last year).
    • Adjusted net income: $41.9 million; margin of 12.3% (vs. 11.1% last year).
    • Adjusted diluted EPS: $0.98, up 73.5% YoY (vs. $0.56 in Q3 2020).
  • Cash Flow: Free cash flow of $71.2 million (vs. $21.6 million YoY); free cash flow to adjusted net income ratio ~170%.
  • Guidance:
    • Q4 expected revenue: ≥ $359 million (54.3% YoY growth).
    • Q4 adjusted operating margin: 16–17%; consistent with full year expectations.
    • Full-year adjusted diluted EPS: ≥ $3.70 (vs. prior guidance of $3.58).
  • Talent Growth: Ended Q3 with 21,849 Globers — 2,223 net tech/design/inno hires during the quarter (+53.1% YoY). India became the fastest-growing talent hub with over 3,000 employees — more than doubled YoY.
  • Client & Regional Growth:
    • Disney remains top client, growing 74% YoY and 24% QoQ.

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Company Representatives: Martin Migoya - Co-Founder, Chief Executive Officer Juan Urthiague - Chief Financial Officer Patricia Pomies - Chief Operating Officer Diego Tartara - Global Chief Technology Officer Amit Singh - Head of Finance for the U.S. and Global Head of Investor Relations Amit Singh: Good day, and welcome to Globant’sThird Quarter 2021 Earnings Conference Call. I'm Amit Singh, Head of Finance for the U.S. and Global Head of Investor Relations. All participants on this call will be on listen-only mode. [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 Martin 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

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