Globant S.A. Q4 FY2023 Earnings Call

· Earnings call transcript and AI-powered summary

  • Quarterly Revenue: $580.7 million in Q4, up 18.3% YoY and 6.5% QoQ. FY2023 revenue reached a record $2.1 billion, growing 17.7% YoY.
  • Profitability: Adjusted operating margin of 15.3% in Q4 and 15.2% for FY2023, in line with guidance. Adjusted EPS was $1.62 in Q4 (+15.7% YoY) and $5.74 for the year (+13% YoY), both above guidance.
  • Cash Flow: Free cash flow of $192 million for FY2023, up from $102.1 million in 2022. FCF to adjusted net income conversion was 76.8%.
  • Client Base: 311 clients generating >$1M annually (up 20.1% YoY), and 16 clients generating >$20M annually. Disney remained the largest client with flat QoQ revenue.
  • Geographic Revenue Split: North America 57.4%, Latin America 22.9%, EMEA 17.2%, APAC 2.5%.
  • Employee Metrics: Total headcount reached 29,150 (93% tech roles). Attrition was a record low 8.1%, down 8.6 ppts YoY. Utilization rate at 80.2%.
  • Growth and Expansion: Entered 10 new markets in 2023; expanded footprint in Mexico and Brazil. Acquired Gut (US) and Iteris (Brazil) to reinforce creative and digital transformation competencies.

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Arturo Langa: Good day, and welcome to Globant's Four Quarter 2023 Earnings Conference Call. I am Arturo Langa, Head of Investor Relations at Globant. [Operator Instructions] Please note this event is being recorded and stream 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 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 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 measures at the end of the press release we published on our Investor Relations website announcing this quarter's results. I now like to turn the call over to Martin Migoya, our CEO. Martin Migoya: Good afternoon, everyone. I'm happy to

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