Globant S.A. Q3 FY2024 Earnings Call

· Earnings call transcript and AI-powered summary

  • Revenue: Globant reported $614.7 million in Q3 2024 revenue, representing 4.6% quarter-over-quarter (QoQ) growth and 12.7% year-over-year (YoY). Excluding FX headwinds, YoY growth stood at 13.7%.
  • Profitability:
    • Adjusted Gross Margin: 38.5% (up 40 bps QoQ and 30 bps YoY)
    • Adjusted Operating Margin: 15.6% (up 50 bps QoQ and 30 bps YoY) — highest margin in two years
    • Adjusted Net Income: $72.4 million; Net margin: 11.8% (up 40 bps QoQ)
    • Adjusted EPS: $1.63, an increase of 10.1% YoY
  • Cash Flow: $69.7 million in free cash flow, up from $60.6 million YoY; FCF-to-adjusted-net-income conversion above 96%
  • Balance Sheet: $213.5 million in cash/short-term investments and $27.2 million in net cash
  • Guidance:
    • Q4 2024 Revenue: $642M–$648M (11.1% YoY growth at midpoint)
    • Adjusted EPS: $1.71–$1.75
    • FY 2024 Revenue: $2,415M–$2,421M (Up from prior guidance)
    • FY 2024 Adjusted EPS: $6.37–$6.43
    • Adjusted Operating Margin: 15%–15.5%

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Arturo Langa: Good day, and welcome to Globant's Third Quarter 2024 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 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 our 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 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 Martin Migoya our CEO. Martin Migoya: Good afternoon, everyone. It is

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