Globant SA Q3 FY2024 earnings call

• Globant achieved strong top-line growth with $614.7M revenue, 12.7% YoY growth.
• AI-related work generated over $250 million in revenue in the first nine months of 2024, up 120% from the same period last year. AI Reinvention Studios contribute over 20% of revenue.
• Opened new offices in Madrid, Milan, and Riyadh; partnered with Qiddiya Investment Company for a digital ecosystem in Qiddiya City. Europe is the fastest-growing region in revenue this year.
• Acquired Blankfactor, a specialist in financial services.
• Invited to the Annual CONVERGE event on Nov 21 with theme 'AI Disrupt Delight Connect'.

Globant reported $614.7 million in revenue for the third quarter, representing a 4.6% growth from the previous quarter and 12.7% growth year-over-year. Revenue contribution by region: North America accounts for 55.7% of the top line, followed by Latin America at 21.8%, Europe at 17.6%, and the Middle East and APAC at 4.9%. The AI Reinvention Studios contribute over 20% of the company's revenue. Total headcount stands at 29,998, a 9.1% increase year-over-year with 27,927 IT professionals. Utilization rate is 79.8% and attrition rate is 9%, down from 9.5% in Q3 2023.

• In organic constant currency terms, expects close to 10% growth for full year 2024.
• Q4 2024 revenues projected in range of $642M to $648M, 11.1% YoY midpoint, adjusted operating margins 15%-16%.
• Confident in double-digit revenue growth for 2025 driven by strong pipeline and faster organic growth.
• Full-year 2024 revenue guidance raised to $2,415M-$2,421M, adjusted EPS $6.37-$6.43.

• Forward-looking statements subject to risks and uncertainties as per SEC filings.
• FX headwinds, particularly depreciation of Latin American currencies against the dollar.
• Macro factors like interest rates, inflation, and election outcomes could impact business.

Q: What is the visibility on faster organic growth for next year?

A: Driven by large deals ramping up, strong performance in top account, Middle East deals, and AI-related deals.

Q: How do AI agents in the delivery process impact human labor and economics?

A: AI agents are used with delivery teams to optimize projects, not replacing human labor but enhancing efficiency.

Q: What is the potential of the Middle East region?

A: Starting from a small base, large deals expected, new office opened in Riyadh for transformational projects.