Globant Announces Strong Financial Results for Third Quarter 2024
Intellectia.AI
Globant Announces Strong Financial Results for Third Quarter 2024
Globant, a digitally native company renowned for its innovative technology solutions, has reported its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $614.7 million | N/A | 12.7% |
| IFRS Diluted EPS | $0.98 | $0.98 | 0% |
| Non-IFRS Adjusted Diluted EPS | $1.63 | $1.48 | 10.1% |
Globant reported a robust performance for the third quarter of 2024. Total revenue reached $614.7 million, reflecting a 12.7% year-over-year increase. While IFRS diluted EPS remained stable at $0.98 compared to the previous year, the Non-IFRS adjusted diluted EPS grew by 10.1%, reaching $1.63.
Revenue Performance by Segment
| Segment | Revenue Contribution | Comments on Performance |
|---|---|---|
| North America | 55.7% | Strong demand led by the US, reinforcing leadership in the region. |
| Latin America | 21.8% | Notable growth with Argentina as the top-performing country. |
| Europe | 17.6% | Consistent performance with Spain leading momentum. |
| New Markets (e.g., Saudi Arabia) | 4.9% | Expansion in emerging markets supporting overall growth. |
Globant's revenue distribution highlights a balanced performance across its major geographic segments. North America remains the largest contributor, driven by substantial demand in the US, while Latin America and Europe continue to show solid growth trajectories.
Key Developments and Operational Highlights
- Cash and cash equivalents stood at $213.5 million as of September 30, 2024, reflecting strategic investments and M&A activities.
- Globant's workforce reached 29,998 professionals, with a strong emphasis on technology, design, and innovation roles.
- The company served 969 customers with revenues over $100,000 in the last year, with an increase in accounts generating more than $1 million in annual revenues.
Executive Commentary
Martín Migoya, CEO and co-founder, emphasized Globant's trajectory of strong growth and its strategic investments in AI, which have driven a 120% increase in AI-related initiatives year-to-date. CFO Juan Urthiague highlighted the achievement of record revenues and alignment with guidance, pointing to a focus on profitability and early recovery signs in specific verticals.
Forward Guidance
For the fourth quarter of 2024, Globant projects revenues between $642.0 million and $648.0 million, with a Non-IFRS adjusted diluted EPS estimated to range from $1.71 to $1.75. For the full fiscal year 2024, the company expects a revenue range of $2,415.0 million to $2,421.0 million, with a corresponding EPS range of $6.37 to $6.43.
Stock Price Movement
Following the earnings release, Globant's stock experienced a post-event change of -3.57%, indicating a slight market repricing.
Overall, Globant's third-quarter results underscore its strong performance and strategic outlook as it continues to lead in digital innovation and technology solutions.
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