LUXEMBOURG – Globant (NYSE: GLOB), the digitally native company specializing in reinventing businesses through innovative technology solutions, today reported its first quarter financial results for the period ending March 31, 2024.

The company announced a revenue of $571.1 million, a 20.9% increase from the previous year and slightly above the analyst consensus of $570.73 million. Adjusted EPS for the quarter was $1.53, aligning with analyst predictions.

Despite reporting strong first-quarter results, Globant’s stock fell by 6% as the company’s guidance for the second quarter and full year fell short of analyst expectations.

For Q2 2024, the company forecasts an adjusted EPS range of $1.47 to $1.52, below the consensus of $1.57. Revenue estimates of $585-589 million also did not meet the expected $590.5 million. This guidance suggests a more cautious outlook than anticipated by the market, prompting the negative investor response.

CEO Martín Migoya expressed confidence in the company’s resilience and growth plans, attributing the successful quarter to Globant’s strategic focus and execution across all geographic segments. “Our first-quarter revenues of $571.1 million, a remarkable 20.9% year-over-year growth, exceeded our guidance and positioned us well for the year ahead,” added CFO Juan Urthiague. He highlighted the strength of Globant’s pipeline and the secular technology trends, particularly in AI, as reasons for optimism about the company’s growth prospects.

Looking ahead, Globant anticipates revenues for the full fiscal year 2024 to be in the range of $2,405.0 million to $2,440.0 million, indicating a 14.7% to 16.4% YoY growth. The company also estimates a non-IFRS adjusted profit from operations margin in the range of 14.5% to 15.5% for the same period.

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Globant’s report also noted a decrease in cash and cash equivalents, primarily due to the partial repayment of its credit facility and several M&A earnout payments. However, with a robust balance sheet and ample funding options, the company remains well-positioned to drive growth and make strategic investments.

The company’s global presence and AI expertise continue to drive loyalty through seamless customer experiences, as reflected in the increased number of accounts generating over $1 million of annual revenues. Globant served a total of 955 customers in the last twelve months, up from 276 in the previous year.

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