Globant S.A. Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: $458.9 million, up 34.2% YoY and 6.9% QoQ. Constant currency growth was 36.7% YoY.
  • Adjusted Gross Profit: $179.6 million (39.1% margin, flat QoQ).
  • Adjusted Operating Income: $73.7 million (16.1% of revenue, flat QoQ).
  • Adjusted Net Income: $54.7 million (11.9% net income margin).
  • Adjusted EPS: $1.27, exceeding guidance of $1.24 ($0.03 beat), up 29.6% YoY.
  • Free Cash Flow: $45.9 million, representing 84.1% of adjusted net income.
  • DSO: 76 days, unchanged YoY.
  • Annual Attrition: 18.5%, down 140 bps QoQ and lowest in two years.
  • Headcount: 26,541 Globers (24,922 IT professionals), up 21.5% YoY.
  • NPS: 74 (up from 70 in Q2), above the industry benchmark (41).

Segment and Client Highlights

  • Largest Client (Disney): Grew 25% YoY and 8.6% QoQ.
  • Accounts over $20M annual revenue: 13 (up from 11 YoY).
  • Accounts over $1M annual revenue: 255 (up from 162 YoY).

Geographic Revenue Breakdown (Q3 2022)

  • North America: 64.9%
  • Latin America: 21.9%

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Arturo Langa: Good day, and welcome to Globant's Third Quarter 2022 Earnings Conference Call. I'm Arturo Langa, Investor Relations Officer at Globant. [Operator Instructions] Please note, this event is being recorded and streamed live on YouTube. By now, you 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 answer to some of your questions. Such statements are subject to 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 results. I'd now like to turn the call over to Martin Migoya, our CEO. Martín Migoya: Thank you, Arturo, and hello, everyone. I

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