Globant Reports 2024 Fourth Quarter and Full Year Financial Results

Ending On A High Note

• Fourth quarter revenues of $642.5 million, up 10.6% year-over-year
• IFRS Diluted EPS of $0.85 for the fourth quarter
• Non-IFRS Adjusted Diluted EPS of $1.75 for the fourth quarter
• Full year 2024 revenues of $2,415.7 million, up 15.3% year-over-year
• IFRS Diluted EPS of $3.72 for the full year
• Non-IFRS Adjusted Diluted EPS of $6.40 for the full year

LUXEMBOURG, Feb. 20, 2025 /PRNewswire/ -- Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced results for the three months and year ended December 31, 2024.

Please see highlights below. Note that reconciliations between IFRS and Non-IFRS financial measures are disclosed at the end of this press release.

Fourth Quarter 2024 Financial Highlights

• Revenues rose to $642.5 million, representing 10.6% year-over-year growth.
• IFRS Gross Profit Margin was 35.7% compared to 35.9% in the fourth quarter of 2023.
• Non-IFRS Adjusted Gross Profit Margin was 38.3% compared to 38.0% in the fourth quarter of 2023.
• IFRS Profit from Operations Margin was 9.1% compared to 9.5% in the fourth quarter of 2023.
• Non-IFRS Adjusted Profit from Operations Margin was 15.7% compared to 15.3% in the fourth quarter of 2023.
• IFRS Diluted EPS was $0.85 compared to $0.96 in the fourth quarter of 2023.
• Non-IFRS Adjusted Diluted EPS was $1.75 compared to $1.62 in the fourth quarter of 2023.

Full Year ended December 31, 2024 Financial Highlights

• Revenues rose to $2,415.7 million, representing 15.3% year-over-year growth.
• IFRS Gross Profit Margin was 35.7% compared to 36.1% for the full year 2023.
• Non-IFRS Adjusted Gross Profit Margin was 38.2% compared to 38.1% for the full year 2023.
• IFRS Profit from Operations Margin was 9.3% compared to 9.5% for the full year 2023.
• Non-IFRS Adjusted Profit from Operations Margin was 15.4% compared to 15.2% for the full year 2023.
• IFRS Diluted EPS was $3.72 compared to $3.64 for the full year 2023.
• Non-IFRS Adjusted Diluted EPS was $6.40 compared to $5.74 for the full year 2023.

Other Metrics as of and for the quarter ended December 31, 2024

• Cash and cash equivalents and Short-term investments were $156.1 million as of December 31, 2024. As of December 31, 2024, we had a total amount of $290.7 million drawn from our credit facility.
• Globant completed the fourth quarter of 2024 with 31,280 Globers, 29,198 of whom were technology, design and innovation professionals.
• The geographic revenue breakdown for the fourth quarter of 2024 was as follows: 55.2% from North America (top country: US), 20.4% from Latin America (top country: Argentina), 17.7% from Europe (top country: Spain) and 6.7% from New Markets^[1] (top country: Saudi Arabia).
• Globant's top customer, top five customers and top ten customers for the fourth quarter of 2024 represented 9.1%, 19.8% and 29.3% of revenues, respectively.
• During the twelve months ended December 31, 2024, Globant served a total of 1,012 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 346 accounts generating more than $1 million of annual revenues, compared to 311 for the same period one year ago.
• In terms of currencies, 64.8% of Globant's revenues for the fourth quarter of 2024 were denominated in US dollars.

"For the past decade, we've strategically invested in AI, providing us with deep expertise that has set us apart from our competitors. We are orchestrating an ecosystem of AI agents through our specialized AI Studios, powered by our Globant Enterprise AI Platform. We combine our technology solutions with top creativity through Globant GUT. This focus on reinvention, coupled with our entrepreneurial culture, fueled our exceptional 2024 performance, where we grew 15% year over year. We remain confident in the future of Globant as we continue to lead in technological trends and advancements," said Martín Migoya, Globant's CEO and co-founder.

"Globant achieved another quarter of record revenue, reaching $642.5 million, which reflects robust sequential growth, alongside an all-time high annual revenue of $2,415.7 million. This strong growth was driven by the expansion of our service offerings and global footprint, with important contributions from our AI Industry Reinvention Studio Network and our GUT Studio Network, which both posted growth above the company average. This is also aligned with our expectations and underscores our commitment to profitable expansion. Our healthy margins demonstrate our operational efficiency, even as we navigate evolving market dynamics. We are confident in our ability to maintain this momentum and build on our success as we head into 2025," explained Juan Urthiague, Globant's CFO.

2025 First Quarter and Full Year Outlook

Based on current market conditions, Globant is providing the following estimates for the first quarter and the full year of 2025:

• First quarter 2025 Revenues are estimated to be in the range of $618.0 million to $628.0 million, or 8.2% to 10.0% year-over-year growth. This expected growth includes a negative FX impact of 2.0 percentage points.
• First quarter 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15.5% to 16.5%.
• First quarter 2025 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $1.55 to $1.63 (assuming an average of 45.3 million diluted shares outstanding during the first quarter).
• Fiscal year 2025 Revenues are estimated to be in the range of $2,635.0 million to $2,705.0 million, implying 9.1% to 12.0% year-over-year revenue growth. This expected growth includes a negative FX impact of 1.5 percentage points.
• Fiscal year 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15.5% to 16.5%.
• Fiscal year 2025 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $6.80 to $7.20 (assuming an average of 45.5 million diluted shares outstanding during 2025).

Conference Call and Webcast
Martin Migoya, Globant's CEO and co-founder, Juan Urthiague, Globant's CFO, Patricia Pomies, Globant's COO, and Diego Tártara, Globant's CTO, will discuss the fourth quarter 2024 results in a video conference call today beginning at 4:30pm ET.

Video conference call access information is:
https://more.globant.com/F4Q24EarningsCall
Webcast http://investors.globant.com/

About Globant (NYSE:GLOB)
At Globant, we create the digitally-native products that people love. We bridge the gap between businesses and consumers through technology and creativity, leveraging our expertise in AI. We dare to digitally transform organizations and strive to delight their customers.

We have more than 31,200 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among others.

We were named a Worldwide Leader in CX Improvement by IDC MarketScape report. We were also featured as a business case study at Harvard, MIT and Stanford. We are a member of the Cybersecurity Tech Accord.

For more information, please visit www.globant.com

Non-IFRS Financial Measures

While the financial figures included in this press release have been computed in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB"), this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, "Interim Financial Reporting" or a financial statement as defined by International Accounting Standards 1 "Presentation of Financial Statements". The financial information in this press release has not been audited.

Globant provides non-IFRS financial measures in addition to reported IFRS results prepared in accordance with IFRS Accounting Standards. Management believes these measures help illustrate underlying trends in the company's business and uses the non-IFRS financial measures to establish budgets and operational goals, communicated internally and externally, for managing the company's business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS measures that exclude share-based compensation expense, depreciation and amortization, acquisition-related charges, and the related effect on income taxes of the pre-tax adjustments. Because the company's non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company's industry. Consequently, Globant's non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its consolidated statements of financial position as of December 31, 2024 and December 31, 2023 and its consolidated statements of comprehensive income for the three months and years ended December 31, 2024 and 2023, prepared in accordance with IFRS Accounting Standards as issued by the IASB.

Globant is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, share-based compensation expense, acquisition-related charges, and the tax effect of non-IFRS adjustments. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.

Forward Looking Statements

In addition to historical information, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America; and other factors discussed under the heading "Risk Factors" in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K.

Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

Globant S.A.
Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts, unaudited)

	Twelve Months Ended				Three Months Ended
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Revenues	2,415,689		2,095,939		642,483		580,705
Cost of revenues	(1,552,322)		(1,340,178)		(413,161)		(372,384)
Gross profit	863,367		755,761		229,322		208,321
Selling, general and administrative expenses	(632,995)		(537,075)		(172,118)		(147,011)
Net impairment losses on financial assets	(6,970)		(18,808)		2,024		(4,829)
Other operating income and expenses, net	2,016		(916)		(722)		(1,530)
Profit from operations	225,418		198,962		58,506		54,951
Finance income	5,303		4,777		1,427		1,277
Finance expense	(32,202)		(23,753)		(11,666)		(8,690)
Other financial results, net	6,064		11,342		(1,277)		(131)
Financial results, net	(20,835)		(7,634)		(11,516)		(7,544)
Share of results of investment in associates	222		89		61		(96)
Other income and expenses, net	5,624		6,602		(518)		2,527
Profit before income tax	210,429		198,019		46,533		49,838
Income tax	(41,426)		(39,511)		(7,025)		(8,444)
Net income for the period	169,003		158,508		39,508		41,394
Other comprehensive income, net of income tax effects
Items that may be reclassified subsequently to profit and loss:
- Exchange differences on translating foreign operations	(86,110)		(16,721)		(65,652)		12,040
- Net change in fair value on financial assets measured at FVOCI	1,959		119		940		2,435
- Gains and losses on cash flow hedges	(14,142)		9,327		(1,374)		9,210
Total comprehensive income for the period	70,710		151,233		(26,578)		65,079
Net income attributable to:
Owners of the Company	165,732		158,538		38,408		42,133
Non-controlling interest	3,271		(30)		1,100		(739)
Net income for the period	169,003		158,508		39,508		41,394
Total comprehensive income for the period attributable to:
Owners of the Company	63,024		148,732		(31,840)		63,454
Non-controlling interest	7,686		2,501		5,262		1,625
Total comprehensive income for the period	70,710		151,233		(26,578)		65,079
Earnings per share
Basic	3.82		3.72		0.88		0.98
Diluted	3.72		3.64		0.85		0.96
Weighted average of outstanding shares (in thousands)
Basic	43,402		42,601		43,859		42,976
Diluted	44,589		43,594		45,046		43,970

Globant S.A.
Consolidated Statements of Financial Position as of December 31, 2024 and December 31, 2023
(In thousands of U.S. dollars, unaudited)

		December 31, 2024		December 31, 2023
ASSETS
Current assets
Cash and cash equivalents		142,093		307,223
Investments		13,992		16,070
Trade receivables		605,002		499,283
Other assets		20,420		31,753
Other receivables		53,939		54,786
Other financial assets		3,100		15,418
Total current assets		838,546		924,533
Non-current assets
Investments		2,212		1,833
Other assets		4,750		4,088
Other receivables		40,784		26,475
Deferred tax assets		80,811		60,777
Investment in associates		1,648		1,426
Other financial assets		41,403		34,864
Property and equipment		154,755		162,736
Intangible assets		288,714		285,661
Right-of-use assets		122,884		119,400
Goodwill		1,590,338		1,105,073
Total non-current assets		2,328,299		1,802,333
TOTAL ASSETS		3,166,845		2,726,866
LIABILITIES
Current liabilities
Trade payables		114,743		124,545
Payroll and social security taxes payable		239,440		221,843
Borrowings		1,601		156,916
Other financial liabilities		113,707		68,750
Lease liabilities		29,736		47,852
Tax liabilities		36,916		33,229
Income tax payable		6,520		11,287
Other liabilities		231		896
Total current liabilities		542,894		665,318
Non-current liabilities
Trade payables		2,006		2,981
Borrowings		290,935		2,191
Other financial liabilities		167,177		135,238
Lease liabilities		87,887		70,884
Deferred tax liabilities		12,616		21,098
Income tax payable		6,625		-
Payroll and social security taxes payable		5,187		5,139
Provisions for contingencies		18,169		28,336
Total non-current liabilities		590,602		265,867
TOTAL LIABILITIES		1,133,496		931,185
Capital and reserves
Issued capital		52,837		51,705
Additional paid-in capital		1,193,029		1,022,918
Other reserves		(144,756)		(42,048)
Retained earnings		862,821		697,089
Total equity attributable to owners of the Company		1,963,931		1,729,664
Non-controlling interests		69,418		66,017
Total equity		2,033,349		1,795,681
TOTAL EQUITY AND LIABILITIES		3,166,845		2,726,866

Globant S.A.
Selected Cash Flow Data
(In thousands of U.S. dollars, unaudited)

		Three Months Ended
		December 31, 2024		December 31, 2023
Net Income for the period		39,508		41,394
Non-cash adjustments, taxes and others		56,881		54,240
Changes in working capital		40,934		63,389
Cash flows from operating activities		137,323		160,902
Capital expenditures		(36,167)		(36,323)
Cash flows from investing activities		(236,732)		(141,829)
Cash flows from financing activities		45,986		90,336
Net increase/decrease in cash & cash equivalents		(53,423)		109,409

Globant S.A.
Supplemental Non-IFRS Financial Information
(In thousands of U.S. dollars, unaudited)

	Twelve Months Ended				Three Months Ended
	December 31, 2024		December 31, 2023		December 31, 2024		December 31, 2023
Reconciliation of adjusted gross profit
Gross profit	863,367		755,761		229,322		208,321
Depreciation and amortization expense	36,034		28,597		10,619		7,985
Share-based compensation expense - Equity settled	23,937		15,155		5,927		4,179
Adjusted gross profit	923,338		799,513		245,868		220,485
Adjusted gross profit margin	38.2 %		38.1 %		38.3 %		38.0 %
Reconciliation of selling, general and administrative expenses
Selling, general and administrative expenses	(632,995)		(537,075)		(172,118)		(147,011)
Depreciation and amortization expense	100,181		85,584		25,430		24,083
Share-based compensation expense - Equity settled	58,833		57,016		16,111		15,574
Acquisition-related charges (a)	28,733		21,092		11,503		6,604
Adjusted selling, general and administrative expenses	(445,248)		(373,383)		(119,074)		(100,750)
Adjusted selling, general and administrative expenses as % of revenues	(18.4) %		(17.8) %		(18.5) %		(17.3) %
Reconciliation of adjusted profit from operations
Profit from operations	225,418		198,962		58,506		54,951
Share-based compensation expense - Equity settled	82,770		72,171		22,038		19,753
Acquisition-related charges (a)	63,231		46,993		20,563		14,416
Adjusted profit from operations	371,419		318,126		101,107		89,120
Adjusted profit from operations margin	15.4 %		15.2 %		15.7 %		15.3 %
Reconciliation of net income for the period
Net income for the period	165,732		158,538		38,408		42,133
Share-based compensation expense - Equity settled	82,618		72,099		22,000		19,722
Acquisition-related charges (a)	71,895		48,205		30,561		17,566
Tax effect of non-IFRS adjustments	(34,819)		(28,724)		(12,303)		(8,344)
Adjusted net income	285,426		250,118		78,666		71,077
Adjusted net income margin	11.8 %		11.9 %		12.2 %		12.2 %
Calculation of adjusted diluted EPS
Adjusted net income	285,426		250,118		78,666		71,077
Diluted shares	44,589		43,594		45,046		43,970
Adjusted diluted EPS	6.40		5.74		1.75		1.62
(a) Acquisition-related charges include, when applicable, amortization of purchased intangible assets included in depreciation and amortization expense line on our consolidated statements of comprehensive income, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, and other acquisition-related costs. We cannot provide acquisition-related charges on a forward-looking basis without unreasonable effort as such charges may fluctuate based on the timing, size, and complexity of future acquisitions as well as other uncertainty inherent in mergers and acquisitions.

Globant S.A.
Schedule of Supplemental Information (unaudited)

Metrics	Q4 2023	Q1 2024	Q2 2024	Q3 2024	Q4 2024
Total Employees	29,150	28,991	29,112	29,998	31,280
IT Professionals	27,116	26,933	27,133	27,927	29,198
North America Revenues %	57.4	56.0	56.3	55.7	55.2
Latin America Revenues %	22.9	22.9	23.0	21.8	20.4
Europe Revenues %	15.8	17.2	16.9	17.6	17.7
New Markets Revenues %	3.9	3.9	3.8	4.9	6.7
USD Revenues %	68.6	68.4	67.1	66.6	64.8
Other Currencies Revenues %	31.4	31.6	32.9	33.4	35.2
Top Customer %	8.2	8.3	8.3	9.1	9.1
Top 5 Customers %	21.4	21.8	21.0	21.0	19.8
Top 10 Customers %	30.8	30.1	30.3	30.1	29.3
Customers Served (Last Twelve Months)*	930	955	958	969	1,012
Customers with>$1M in Revenues (Last Twelve Months)	311	318	329	331	346
(*) Represents customers with more than $100,000 in revenues in the last twelve months.

Investor Relations Contact:
Arturo Langa, Globant
[email protected]
[phone]

Media Contact:
Wanda Weigert, Globant
[email protected]
[phone]

^[1] Represents Asia, Oceania and the Middle East.

SOURCE GLOBANT