GLOB - Earnings call transcript Q1 2024

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Arturo Langa

Good day, and welcome to Globant's First Quarter 2021 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 should have received a copy of the earnings release.

If you have not, a copy is available on our website, investors.globant.com.

Technology Martin Financial and Operating Officer; Diego Global are Juan Executive Officer; today Tartara, Chief Urthiague, Patricia Chief speakers Migoya, Chief Co-Founder Officer, and Our Officer. Pomies, Chief

the like the Before we our on of answers business statements. to call our and remind other risks forward-looking company's your with that and as may questions. subject Such deemed includes that some some comments the be and to statements described today accounting our This note earnings SEC. Please begin, to release IFRS rules of filings you financial are would I the in follow our financial uncertainties outlook we in statements. and

internally call non-IFRS to will report way today, peers which compare or Globant our to is the we the track and industry. our easiest measures, During performance in adjusted how we

results. I'd and You measures announcing we on will our non-IFRS Investor press our the CEO. Martin at Migoya, the quarter's like of a website release reconciliation of the call over published now find Relations to to turn IFRS end this

Martín Migoya

I'm afternoon, digital AI-created Good twin. Martinez everyone.

quarter's started guidance Revenue February. get last we first above a results. year-over-year our with representing provided reached $XXX.X the XX.X% increase Let's million, and

happy to quarter We are growth. another very industry-leading of deliver

as culturally focused international no security conflicts. a authentic resilience we region year our mention despite our will are from into macroeconomic It's we presence going as later America. from and With with experts become well As in culture, a Juan our solid in our geographic rates Geopolitically growing have leading in support expectations uncertainties. continue and being diverse footprint for open, on, with share. benefit a the to exit XXXX religious market vibrant, we speaking, and capabilities strong XXXX. At confident free entrepreneur democratically threats our Globant, Latin

product performance, industry. It's IT into this sector deliver to going analyze our scenario, all performance. XXXX that's top to to struggling reinvent In in companies ourselves beautiful most or own ample we beyond. the put stuck products position. delight. than rather that take We're line Globant, other and a this dare account and us team the growth, when to quality consider forefront comparing where in All partnerships, expect the average outpacing important benchmarks current achieve of in services industry while creating has we we industry are mid-teen growth runway for to and to firms foresee decent memorable that 'XXs, players

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on one. Let me double-click each

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and in of live gain expansion. XX%. on ourselves companies a mature chat, inquiries the by leading software some most drop digitally this Our service conversations only We've customer in already repeat expertise the conviction believe Gen more are I materialize. AI seen the of agents AI of benefits satisfaction X/X such customer with from major service will to generative AI-powered companies is beginning customer that inroads innovative engineering with par market to with at are from as handled by the that

deliver to groundbreaking never realms before. and digital and drive primed loyalty like experiences, are We physical blend

systems the and understood for the VR are have implemented that development from for building of With and we the the to the hype AR, digital at technology be over cycle. setting growth of decade far of future the software AI economy businesses every stage ours tomorrow, of a AI, the Cloud, pace this like is

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a on have pipeline technology stories their offering. future. With We and transformation hand exciting it over to sharing look our clients, with prospective forward to robust I'll in of to you the we that, expand Diego

Diego Tartara

Martin. It's good back. to Thanks, be

continue develop organize, globin's optionality expanding networks most defines as create. capabilities. range evolution our Our ecosystems the we studio key to our streamline showcase that time of in services What Globant is at this and

Our industry. In reinvention our health expand changing how services now focuses offerings working health. is company global reinvention AI, across are women's their continue the care with on on AI we reflecting single AI studios landscape studio, with to a that focused every

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luxury other the years This healthy globally. of won Latin Google of Annual the studio services its with its most global that America. and International enterprise partner row, recently awarded offering agency the studio Solutions extension joint the Services for to its in Create Awards, Media are specifically, between Also, reach on talent for price Year the Partner complementary their keeps immersive this the Together, for leading a television continues talent global automotive marketing supporting to Year of response and network the leverages journey reach launch transformations. were the Partner to machine this Avianca an campaign the an of we the AR applying the brand Year and reinvent the audiences. ticketing campaign. Gut a journey Partner They and for to of with for CRM beloved technology gold second we a through year latest network niche gut. Coca-Cola in launched with includes tech. creative audiences. Within improve cloud digital on and and made migration over Italian provides automation system the leaders customer Starting Our building Latin website. of investments communications, Cloud for in brands We from the industry list recently Coca-Cola's fully released optimize X supported development Partner quarter, across Year our advertising Entertainment multichannel Marvel working techniques and over America timely XXXX in of network, seen Industry expanding seamless the streaming, marketing which Globant we've to creativity some of learning. In cinema, to is services them to Award developing with a through model, work we a its we

globe. future. for from also workloads digital and We've XXXX customers been seen also Services data, since technologies look into these their in recognized Amazon technical adding premier but gaming, with relationships expertise AI grow continuing architecture, our and and not on Web the design, forward collaborating We metaverse, from partner status, UX have building, the to migration tier the success management We achieved AWS with this AWS. cloud of partnership products, only across into and

bring portfolio line experience XX with brands results AI the a of Lastly, a new ensure in our that our implementation Adobe some bottom solutions marketing swift Adobe launching are offers we new methodology implementations effective unique most successful Studio our fuse can across recognizable world's Adobe and The prowess, and to of countries. for of clients. studio for With than more Experience to Cloud. technology

scale. We have consistently demonstrated our ability to deliver value at

elements connecting all with the and cases, of which vendors prototyping recently intelligence orchestration Rob a companies trend more clients their in artificial huge usually where Globant ensures optimizing central operations complex many robotics growing co-create downtimes robotic that studio related ecosystem. The face with of robotic vision have the key physical launched network, leverage incorporating and our systems telemetry. autonomous their are sector our will powered Within to or customization the our a and robotics of why robotics seek we into robotics teams That's mark can of that and those X of of There's is and integrate reducing all will is fleets pains the and of the by and we speed full make seeing realm, globin in autonomy automation, alleviate. and growing digital each opportunity increased Ops, maximize Internet we're advanced the studio. process sector. promising practices, to robotics provides systems to robotic field our the machines. a to Things, studio other that challenge performance support already sectors digital In many gain larger as seeing from of they yet of autonomous different integration safety that by the optimization. digital robots, different the operations new computer provided world robots, the will with

leveraging let share example are our digital me another Lastly, products. we on signature how

quality In extent meet key sales X from an growing I'll people our and unusual By retail, increase to of Globant are time over X time. With is much. quality rate a required MagnifAI artificial sales the their Patricia their able of a over of better features generated is platform demanded expected to intelligence in of $XX with our some processes It sales annual and AI-powered space. significant saving hours overall results. are X. minutes. MagnifAI, devices assurance by to that, XX retailer you delivery to commercial coverage frequently. work One online the now scenarios at occur it implemented clients, online that the just while the testing Pomies, improving expand previously U.S. MagnifAI very of updates. across testing adding COO, our has to XX% where XXXX. Testing implementing major This testing accuracy was over team more test in our provided to and Thank processes, hand on to in billion more also

Patricia Pomies

you, back. be to Thank Diego. It's a pleasure

reflects Company grew the strategy grow of client, square for our annual from currently we million from a traction rest time. X This clients in have investors reduced our and than we we the $X from risk Oceania. We from our XX.X% top total of more our America, XXX help of and North revenue, gauge year-over-year year America, XXX more will reported granularity XX.X% new revenue bucketed revenue. up-and-coming in more XX.X% our revenue Revenue regional Our it of East and have and X.X% more the $XX our X.X% XX% markets. currently East, encompasses is Walt Star provide quarter-over-quarter. year-over-year, the over remains from in relationships Middle basis. bringing markets. internally, with our XX.X% our X.X% XX North of year-over-year market the and revenue, that represents largest grew have collaboration the year, diversified our reflecting sources Europe our stand-alone offering on this a how annual as accounts a Middle clients region increasing provide Europe services Disney performance, we The ago. by as and diversity now million gainer operate that and efforts of with more strengthening than more exposure. In order clients growing and into came the into than to Latin markets, new being QX In Europe Asia X.X% our XX.X%

our and solid business XX.X% fastest-growing revenue. of year-on-year contributing exhibited financial business Additionally, XX% a increase sector total reflects the XX.X% health well. at virtually double-digit our emerged as Hospitality the performance segments. Travel to care, vertical, consumer, notable as achieved experiencing Also, across manufacturing our strong media execution. We and growth our services and all verticals and and growth year-over-year across our and entertainment, robust retail year-over-year. showed each insurance growth banking, remarkable

provide more The our M&A. complementary each joining opportunity the This cross-selling new up model our cultural accelerating opportunities. ensuring new our a new scales in offering, size Globant integration transition As novel family for we to launching process basis the focused mindful impact on of decentralized our the as direct and and team of region, access integration through solutions. Embracing to we to value and on heroes, year experience seamless model. both business companies is the our is colleagues have the designed started a streamlined of array with we the of of team a are operates well amplify being

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to looking as Sao call playgrounds, as and initiative multi-technology will an experience City. highly applied digital rooms prospective some practices to will AI-driven Globant London, cases Paulo spaces we The top able by capabilities. such will in AI our flagship off them, offices Mexico Angeles, our accelerate best where own real clients with industry-tailored where Madrid, and kicked into immersive current develop journey its of Los we and Second, their as serve enriched features be

Now to our headcount.

a head XX,XXX of growth XX.X% figures are of Globers. we globers, IT X,XXX professionals. As are which year-over-year represent March XX, of count Total

stood year-over-year. for rate QX basis XX utilization XX.X%, Our at up points

announce pleased to footprint. the that is I'm strengthening global Globant quarter, further in our Philippines, now This

months is rate over lower past X.X%, points the XX percentage year-over-year. attrition X.X Our

not are foster only our collaboration evolving constantly As expanding ways our company grows, to reach. our of also working and innovation. but autonomy, we

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launched community, for initiative a our technology and in enter Future our to developing the countries socioeconomic at in remains role pathway talent Code XXXX, minorities particularly women market. creating is people, Regarding aimed strong. more our Your

trained scholarships. already XX,XXX and through now have this initiative, new we are announcing people X,XXX We

from of in projects. more countries, X,XXX the academics we judges. inspiring To the Finally, This of support date, giant more build XXX with take garnering the boats, over organizations of candidates leap objective of in we've XXX more entrepreneurial participation female than or XX initiative role that than XXX,XXX international the the women the over to fifth awards. evaluated tech their and spotlights careers, launched edition

Juan, Q&A. Now CFO, minutes you you. Thank our live introduce all let in the see for some me

Juan Urthiague

results. a In is of year good Globant to environment, industry-leading macro and everyone. deliver this confident with quarter's we I Thank back am you, are on track to glad you industry here to and complex discuss be results. afternoon, another

revenues year-over-year provided and Our XX.X% guidance million, of above a a reached the $XXX.X remarkable first quarter milestone to the growth market.

a place the our solid More position importantly, this to continues for in upon growth year. high-growth us expectations to deliver

our out our driven of about optimistic organic in tangible growth segments annual in year-on-year, On X a in pointing metrics. verticals broad-based all and performance. quarter, remain our QX by And terms financial is technology broader industry We already in mainly sector, constant seen geographic reflected secular guidance. trends terms, of are the technology grew above X it to encouraging, the as revenues being currency AI. This saw year. XX.X% we on

concerns While soft continue spending indicators, short of by we macro-related IT quarterly and growth rest for support term, will business the continue outlook which short-term our to the XXXX. our encouraged into are

reflection by robust region. made expanded in grew XX.X% in our XX.X% proposition exchange to acquired Europe and represents is from strong the at rate and the and segments. Our volatility a robust of we geographic strong recent The performance to quarter-on-quarter geographic year-on-year year-on-year very across of differentiated by our booking at of recent line LATAM, record support execution. of segments. growth saw our a levels, a across our in all sports which performance value region in pipeline reflects of seen Europe growth rate. industry, in ability year-on-year performance solid at is trends outlook. recently. year-on-year industry of our assets and driven revenue our set at the a recently across company the in our capture rate top XX% North and clip. The XX.X% XX.X% the expanded synergies region, initiatives the the investments the regions months Moreover, America, past a our We our despite some see close X.X% a

is still above average. Excluding inorganic the markedly company tracking contributions, Europe

flat flat which a we reflective XX.X% macroeconomic our pressures the organic environment, advances, gross growth, offset new in XX%, and strongly. We of all tough improvements annual pricing is closed East, through to We've basis. a APAC of posted first all managed markets, terms. fluctuations quarter margin profit adjusted an quarter-over-quarter in are cost Middle to will with offering. both and our on and the committed Lastly, currency in This company. headwinds in tractioning and a an the recognize margin around the at terms. virtually of maintain short-term are some year-on-year margins we a we've of long-term away We while remain premium continue revenue from Also, there strive managed we all through mix margins, on maximize to to And walk growth geographic operating and our adjusted profitability XX%, to approach.

income margin, $X.XX, points net EPS with income adjusted representing adjusted reached with XX.X shares. basis million year-over-year. the XX Adjusted diluted million increase in on Our based our diluted up line a average a in net for quarter XX.X% $XX.X XX.X% year-over-year QX guidance, was

sheet the remains strong. quarter managed $XXX.X our million ending net We've position, short-term investments. in Our strategically balance cash with and cash

As investments our of which down to of stemming out provide we ample credit revolving March drawn XXXX, This million ample available. funding $XXX have continue $XXX the should approximately for options XX, company from organic million strategic finance the reinforce The our with has provides facility, our growth, plans growth and cash to strong on term. generation and inorganic our in short funding future the solid focus initiatives. funding

We future Turning outlook. optimistic remain XXXX. for to the

the to track visibility and mid-teen growth guidance on that. deliver on short-term supports We our are

experience bookings optimistic We outlook which in about have our XXXX. for positive deals, and a momentum us large continued to keeps

more at management's be outlook accurate of rather least This current of within Moving a range of ranges and a where our a scenarios. industry dynamics thresholds. forward, than providing we'll approach view offers lies offers reflection

project and be outstanding in $X.XX assuming year-over-year For XX% million XX% is diluted increase shares be the IFRS tax range. to $XXX adjusted XX.X% between expected XX.X XX% quarter. $XXX the XXXX, of at million the range we the EPS to revenue, implying $X.XX, expected to QX income average XX.X%. in an for for the operating in to range. rate effective midpoint million income with of and adjusted margins to our is QX

Now guidance. let's toward move year full the

between previous growth XXXX year ago. industry-leading midpoint range. implying confident the our is delivering much of visibility $X.XXX billion, very line in guidance X XX.X% about based to revenues range very the we now another estimate our on of months growth increase at provided billion continue We This year-over-year $X.XXX be and with to a current be

For the expected to adjusted XX.X% XX% is tax full operating in income XX% IFRS to be the year, we the XXXX range. XX.X% to expect effective rate our margin in range.

is year. XXXX for range assuming of the expected shares adjusted average be diluted to our to XX.X diluted $X.XX for million EPS $X.XX, in the Finally,

want As we to express of my all I investors. and to conclude, gratitude shareholders our

you, we updating As joining and team, throughout coming shareholders. the a Thank continued our you forward committed today to year. value vision We for and and management belief everyone, our for to support in remain on our strategy. look progress creating for the your call

Arturo Langa

It's you, see Instructions]. Thank good again. [Operator you hello, everyone. Juan, and to

the from JPMorgan. first Tien-Tsin the from line comes So question of Huang

Tien-Tsin Huang

of you positive that I'll all you ask on to. the the referred to -- momentum bookings in referred

some win, it I think I airline sounds large IOC, course, FX, like. good heard a of larger you had wins,

do convert in the expect trying wins way? implied just in growth these second you confidence into that's guidance. second in So I'm half? some sequential of these your half your the to gauge outlook the bookings inform of to the Do any

Martín Migoya

you of Huang, those it and quite How much thank will Good moving you. an are our Yes, bookings to interesting, course, again. for the have see you question. Tien-Tsin so revenue, large impact on are forward.

On we that the to those guidance provided, in things. bake all tried we

on the of what's in be market. in are past. the what and we going in with trying we the So guided idea line already to

the short that's So question. answer to your

Juan Urthiague

some these in the the at second on year, then our -- when look sequential typically number strongest is growth And that to you Martin's add like just is bookings half are of especially Tien-Tsin, Also to quarter. coming. have there you for of which the answer, days, QX, incremental

Martín Migoya

seeing I you see the is in we quite some referred happen momentum the mean that we that -- what recovery, bookings and to past, right? didn't interesting on are Yes. And real.

Tien-Tsin Huang

Yes. Right.

billing differences are wins, great large some So plus [indiscernible]. deal of which the

Martín Migoya

thing it's deals. But of large it's chance the the deals whole I right? moving plus mean, not forward, large

Arturo Langa

the Wedbush. of from comes question next line Moshe Katri from Our

Moshe Katri

to spending actually AI help. you Are So decisions pausing or of overall is that could be business? more from some that concerned seeing in kind going else, anything seems some but related is impacting your AI in color accelerator spending maybe that or general. folks perspective, actually I AI maybe an it's deployment mean, than it there of are to our

Martín Migoya

when got the the answer mobiles the the technology you to more was I during users too. first answer technology massive to collective transformation. In know-how happening of will then way. the that be Thank First, enterprises was customers so much way single every thing already and will of digital digital one. the people and in will -- emotional there's transformation the that company. And mean transformation sector the that latest connect happen that Diego technology. release every I people as to to know-how see and XXX AI. let And their the million the companies And mobiles single that Moshe. that triggered, what's the in to will trigger and company adopting I that same new whole closer then appear need adopted multiyear Sure, day that are question. and for in adopt on that above every much same will the that programs using happened a -- answer like pretty for that way, trigger second will ChatGPT I see you the digital today transformations transformation yield for on is portion adopted

that and speed happens, which speed that ago, since may from differ. quarters we repeating -- this the many been at have Now

but more everywhere. I in there's the solutions movements there. is way to to embedded now Still Still mean, the the will those projects the there's there's enterprise becoming the that our the We going AI thing customers. they to using level before, saw much solutions way lot pretty production, the the space. like reality And space. offering marketing into a lot thinking exploratory on digital projects. transforming some those embedded customers. a going and In on it's next digital movement our lot the to on exploratory some Still, their seeing in and be still, are digital enter production. do of to is a are of the It's projects still that the more we into of still important Globant. scale quarters is see enterprise businesses bit into do we're -- AI. a there. the future those our do are We But around projects, little to in we here are go still reinventing

that software will being before much create. together be speed heavily careful we ambitions faster created the tools and also that Global on acceleration exist will way That's accelerate reality of than into created We're So And that before. position very that software at are that. exists software didn't is a having being to today. investing with

will set open So move there's that a brand-new forward. we of opportunities be as

about concerned not I'm So delayed. being those decisions

on side. have more macroeconomic I think the uncertainty people

I think on it call was U.S. very in inflation the on sorry, good news good side it, the to have the interest good let's the the side,

on little little will the it's every space, I desperately as the corporation. slowly recover the needed on IT investment technology think by So I start that think things space, to single by those

into to -- go is like but how deep Diego AI more penetrating everywhere. So would I that,

Diego Tartara

seen for like Martin we a Moshe, haven't said, big So as AI programs. decelerator

to With companies the regards exploratory. There with of most for out cetera. that's putting are et pretty directly. tooling, with why processes, and concerns of public continue projects this connecting that's to the some much to clients do specific and there, internal have this the AI, be trucks And

factor there how is has how this big is We moving. that with will also worries. And get a there, no and to fast do

role AI what as ] with model a that higher a to need to world why changing control a technology of many the and use reluctant you [ see you on et providing that matures into outputs, enterprise of control GeneXus to you the in a And fast plays companies degrees whenever So and decision, time. chosen sort actual have they huge lengthy are make security, is is implementations, project cetera. technology the middle engaging of change how so

Arturo Langa

William comes Blair. from question of from Our the line next Nolan Maggie

Margaret Nolan

a end range? for demand end and the the low Now the have the elaborate that on in at guidance environment of backdrop you and economic place both expectations can range the the revenue, high guidance for you

Juan Urthiague

whether number more around a tech. we more has middle to is for the the I'm at is that, range, to lower recovery deteriorate basically guidance some realistic of conservative in between things midpoint. If feel and new is would the the those some things deterioration see The number. we more more So in the difference going in what then we then or in of probably little same, things some deteriorate more are end If numbers, upper further, stay things is We macroeconomic start end. or showing like some sectors to our industry improve. go reason, less we're there QX the and to land with conditions a line end with is we recover range. the towards the see services performing we recovery the in a bit The If start up that optimistic of the professional faster, can main number. the basically

Arturo Langa

the line Our Cowen. Bryan from next Bergin question TD from of comes

Bryan Bergin

Maybe try margin. I'll

competitive the maybe pressure talk How since through you here FX you go offset the this And But may anything So you have to to help offset incremental understanding has what levers help can of? about the Juan, quarter. been also, the anything you you think much beyond overall it as been what have versus this markets? some And points year, of last revised just as outlook. the in leveraging the aware change you any about are be the profitability, of year, purely to pressures.

Juan Urthiague

question. the for Bryan, you, Thank sure. Yes,

XX% Basically, to moved from operating what XX% So are the we margins, there XX.X% of things. to in XX.X%. terms X are guidance seeing we to

the the below peso, side, seeing are that continue peso improvement We would recovery slightly to are thinking also are maintain to the the the bookings planning some are our industries. the recently. have And announced sequential just to seeing is we against currencies X.X%. Globers the in the to The we utilization it, here very to we but for Colombian that estimating we of -- on the maintain plan not and quarter that -- any third recovery Hopefully, number starting And at some second already strong growth basis very, recovery sequential expected, be the and that and was into we FX we that in like QX are back number. other and improve we Mexican dollar. where quarter on see in where fourth a we based on QX on

to might that's need to And range. little we're why way is working as we our improvement in continue more us I at on protect can. for XX% result being FX to we not we decided in important move working any bit think where want grow, This we and the protect the need cost, that to Again, but right? the we the a long-term it's that assuming towards are game as margins So margins. margins not side. to and much We number, a any

Arturo Langa

Lee comes from Now our next of Guggenheim. Jonathan question from the line

Unknown Analyst

bookings of the year? the delays through of remainder your the for think have should the And given we gives conversion you you the been around customer project we've remainder and industry? some what realization year the seeing the conversations confidence across about the How ramps visibility in project of

Juan Urthiague

back the same that where big actually the And the this numbers, you time When euro February, us. against coming and at at the XX.X%, at feel Yes. point, from look is minor look It's adjustment up is and an a that we playing you are guidance part growing. European GBP XX.X%. look mean, which last extremely business at of our of if end I our from is the quarter the at should range, in which midpoint we

difference the really almost and no the in February guidance So from today. there's guidance

bookings. rely we new stays same. the more less So I or visibility on still mean

We are not the on living backlog.

less stays new call. seeing of FX backlog the plus and of end day, was Martin these bookings. It's deals and news the very the visibility of as most positive the big adjust in helps that part first large number hence, improve are which we some announced news one the was describing, more that combination that here Probably a for if closed, a at same. just are deals or the visibility. to of it's So we the closing, it's good similar we But

So visibility the stays same.

Arturo Langa

from The next the Potter line Citi. Ryan question of from comes

Ryan Potter

restructurings you're discuss verticals? Looking some you we've softness, verticals, it within your that kind looks those peers communications in lines and of like trends the maybe client seeing of at softness some are services your in can seeing it, area. some seeing and those call services demand professional technology And of professional seen

So on can comment in by client area? you that impacted restructurings any being also

Juan Urthiague

be It's few growing. The and in that stabilized, has the It's been mentioned not and is points the quarters last just say, a been technology. business. not has here same quarters. stable it same throughout to quarter, Last it's basically, to few a case. it stable behavior, So we thing in the continues decreasing there, have terms services, with over reason continued significantly, the what of let's that that we it but last a decrease few professional seeing be

On XX%. the of extremely industries well, are you hospitality performing other north seeing other and right? side, growing some Travel

business Consumer a business Retail at consumer Our -- similar pace. and also growing

ideal has will to X it years been tech seeing X over still services, see we the we That's a -- or very down. is situation what either down stable I or and not mean we the down business, significantly last are last professional which are and seeing. for the flat be that to in So years telecommunications a recovery is moving up

Entertainment. expect We continue more Media growth and on to

sport business expanding showing is improvement. is Our an lot. Disney a

account at you slightly numbers first year-over-year. If was the look in mind Keep it in almost for down X% the that quarter, year-over-year. XXXX, grew

good on very coming good this news. some travel entertainment, deals we So that's see good manufacturing, news, large that front. to media good very also momentum, news, Retail news. good are starting BFSI,

to the say professional we still to need some where some it's at technology and So recovery and going we industry come know of telecommunications point, see then, services. only the only and is -- I would course,

Martín Migoya

important [ decreasing our get share. growing most to share, ability some you and over very emphasize the that see that would Yes. them to if our table will in and still are a you And that maintaining consistently see into one of Globant there still or market when market is you intact we're like it. at Globant thing small see pull if numbers, to right? ability that's act to on ] is I competitors, And of

we pushing that. that single any our we that like been are fostering every share. growth have everything of are And of factor getting that's I sports doing of think proud space doing on across solid we so space, to ability on say on the of to because and common would pretty beyond our platform investments customers, that sectors that market sector. result I remains a So we're of AI the and very that's the

Juan Urthiague

flowing also Yes, terms guidance. off heavily into those [ sectors, and ] industry-leading quarter of and, in XXXX growth the course, diversification an for of to pays into going space, MENA right, helps maintain because course, and all heavily of this geographies having that to diversification exposure Europe,

Patricia Pomies

and has I that, last we the has their been for in now. and years changing we That brand not that delighting think have with to XX experience users. adding years, specific or XX been, with customers have to the way are their our and very the software. we And right do Sorry, product doing customers that the is

more In and deeper. getting more fact, it's

where right place of that way is Globant to So special different now the grow in what kind is is on giving strategies us verticals.

the example, in was new with mentioning, as of connecting a new same to way a For with markets, have Juan way citizens. of connecting objectives we consumers, trying of build new

globin expertise do. can what So beyond we is there, of going the

the make building last that [ going one and better values technologies So partnership way to Also been been do industries. now. the we're the we reside that, the has different using engage the in announced we've across with experiences we right how has this the of last and that and of products I earnings years, that couple with and offering transforming and right, different Globant in think experiences different to customers. in way. ] how call are kind we with and

Ryan Potter

rates growth impressive in So reflected that's being here.

Arturo Langa

line the Goyal Our next from question of Scotia. comes Divya from

Divya Goyal

the So color to I just on get geographic some growth. wanted

are Philippines. trying like at up has that I'm there mention over in past quarters. noticed mark few of the it's sequential decline stayed sort did the you some U.S., office been to XX% in just an I drive set You term. in do to and trend And you outsourcing seeing same to for you drive seeing automation outsourcing? shorter that margins automation in the this margin impact an understand, actually to your anticipate you're upside the

Juan Urthiague

of me question. first part the Let take the

decline deliver will remember, delivery question So if center, that are One, things. the we after, our million U.S. in in where sold effect that is a we world, in going to the mentioned was because the that are business, business, February, a back that it's the is it's other our U.S. to that That had have to market QX, happen. If professional when we from services of Philippines not not there the customers million course, a around X technology $X regarding we which sequential we we going effect, licenses. primarily by to talent small around but is place MENA exclude seeing soon. you explained $X that was one-off, our in of is new About including, the a so source office time we

those are the So the are areas. And and kind that, of growth very momentum. was good year. actually, than consolidated in There we expecting a it's of of in for second seeing the question. for that rest the part very, -- quarter second Other we

Diego Tartara

outsourcing. and automation with do to has It

as been meaning hasn't where you probably hasn't model global, right with there's we is the right know, the services our -- the from talent. strategy, it places provide it Our lemons delivery quality And changed.

are years global with how in a But now. to in that we are behaves So where it's regards the has presence. regards the few talent flexibility the for distributed an is, exactly provided. to open our that have the the engagements, cetera, where talent there's see where our is et with been expansion services being We commercial always it That being think we where happening seen how that? case. With and don't offices affected market been improvement has has I potentially -- sourced right the broadly and

Arturo Langa

Sandler. next line Ramnani the of from Our from comes question Arvind Piper

Arvind Ramnani

just I just of the of mean, rest here. math doing of overall simple shape couple of just some of a had kind kind on year, -- I the questions

XQ like do the upside not get be or and some just then going should that to of us But some stronger. And you and if potentially depending give to get the number. about it's You there expect second thing full ramps, XQ X% fully XQ on can is to in good or a XQ kind be for but to obviously, color, sequential of existing new embedded they these the year to same, exactly like, growth be you stronger is guidance? are you

Juan Urthiague

we at I the don't go cadence in the the how We growth, that that terms you almost calculating. sequential year. to for We the or second are slightly has were implied is QX to the gets growth we QX X.X%. of guidance is is the expecting need X% QX and we current is closed -- that and to in growth around you X the more estimating mean, at at the X.X%. the look number current bookings quarter of of we earlier to midpoint in that built. number includes of above days the around the When the at midpoint and don't the growth. And year the That's basically announced what midpoint for the range. are the range, sequential that So for X% need then go terms is sequential implied

And than lower So it's the little a are that. Arvind. bit those numbers

Arturo Langa

the of next Tyler DuPont comes of line Our Bank question from from America.

Tyler DuPont

about since ask last just to trends wanted call. I demand the

gain dynamics we standpoint and the of actually if sort just we're you to the discuss a do it, you now, given sort scope confidence that demand? this sort see their sort changing driven points clients out dollars And to right certain of curious main projects. sort basis more releasing by it's to top Any entering of you of with clients call in bottoming inflection are X-ish midpoint, need other of the, can from guidance where macro considering. Given budget Or spend? sort at drivers a of in just upward the are Would of in say actual tweak line what there. slowdown what just are

Martín Migoya

much so you Thank Tyler.

in the few believe that inflation that few is improved or expected, has The forth. so I as quarters not remains bad like last fast month there while last that was that mark last up created demand was the So the on all only as going situation down question this months. so in going and

move to at we seeing at opposed I the improving this bookings question same relies forward. to is are that what before. But -- the So time, was Globant on will mark are how as tend happening what

inflation, going I we're in But keeps responsible think will as the said we what guide uncertain. environment be macroeconomic it -- the things happened we still And on fine. is yesterday very we and market. if the like with way before, that

know, why want we this enter if add Juan, to that? with want So something that's don't new range. I you to to

Juan Urthiague

little midpoint is we the of add are XX.X% is No, we bit talking growth, over XX% which are range, I'd at in no. What that there growth. case, of the any a about organic

of So are here. the level discussing we growth

X%, the growing minus right? We whether a X% as to minus are basis are go but a quarter not discussing talking XX.X%, down, XX.X% it's or year-over-year plus whether company those going QX. a and business We around XX%, XX%, on is sequential are we starting levels, into

So we in case, about going more, our it's more macro what slower anticipating. to bit of volatility Martin saying in faster again, be we're terms than grow their a less, the a of like course, little bit or whether is, any the impacting was little talking some in of going there decisions. little customers a that is to are But were impact bit where we

Arturo Langa

from from UBS. question line the last Leonardo of comes Our Olmos

Leonardo Olmos

Argentina. So my centered question on basically is

impacted? discuss your developers' of the for could do you little expect If XXXX? you a How are what the view to country. remaining cost the conditions bit And macro be the

Juan Urthiague

Yes.

improving are So more getting things stable. in Argentina. are They

quarter. in those million Of as closed that revenues. in a course, $XX we $XX December, XX The around the that, back last We an our already on QX quarter was around EUR impact was in discussed of impact had depreciation there million. million

$X towards sold, were we good the still back Customers we but in of are our understood numbers very depending with we QX on progress that negotiation in December. will each made situation. million sold fully our end -- have where about very, or compared we the customers get So partially to

to the the of in tend be tend U.S. impact terms tolarized our they In follow in Argentina, on industry so dollar. salaries to costs,

doesn't back really has impact situation change got because it very in salary good So December. a much the

faster going is little bit than a currency inflation devaluation. Now

back So But we December. expecting front it's in changes big of all that not on part Argentina. all, benefit in are offsetting that in

Martín Migoya

I going bit a the on on color a just high, although responsible are on it's like we're government is there. fast. macroeconomic a still complement but very, that for down But is we what's creating little that coming very very Yes. pretty inflation seeing healthy mean, environment, and is spending time, more first being

the Argentinian very start of expectations to bigger again to recover have we fast. So and recover economy

we So hope lucky. this let's see. I are time

Arturo Langa

much, Thank Leonardo. you very

open. line all Martin, Q&A of Thank will that the So closing some to today. will your comments. for session it be now you Martin offer participating. is for ask I And

Martín Migoya

that for the highlight streaming. everyone Thanks the us -- today. following all much you you. we from want is very Thank for participating And on support from shareholders. to the Thank I the everyone that to received

and all meeting our and happened on last amount a record people how that both ideas participating had we last a So our the where of shareholders' company. Friday, positive for managing we're record

that. big So a thanks to say want I that. with we're extremely to happy

of keep us. on every thing single challenging will see We front we in

We on extremely normative with the being keep to [ our our way get ] and will offering we customers.

how So this we are will company extremely positive and about the future Globant industry. of the reinvent

looking on for interacting Thank forward today community us you and the here So us supporting really much. to the for keep covering being you to analyst future. all for thank very in

Patricia Pomies

Bye. See you.

Martín Migoya

Bye.

Unknown Executive

Bye.

Globant (GLOB) 16 May 242024 Q1 Earnings call transcript