First quarter revenues of $611.1 million, up 7.0% year-over-year IFRS Diluted EPS of $0.68 for the first quarter  Non-IFRS Adjusted Diluted EPS of $1.50 for the first quarter

LUXEMBOURG, May 15, 2025 /PRNewswire/ -- Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced results for the three months ended March 31, 2025.Globant new logo (PRNewsfoto/Globant)

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

First Quarter 2025 Financial Highlights

Revenues rose to $611.1 million, representing 7.0% year-over-year growth. IFRS Gross Profit Margin was 34.9% compared to 35.4% in the first quarter of 2024. Non-IFRS Adjusted Gross Profit Margin was 38.0% compared to 38.0% in the first quarter of 2024. IFRS Profit from Operations Margin was 8.2% compared to 8.4% in the first quarter of 2024. Non-IFRS Adjusted Profit from Operations Margin was 14.8% compared to 15.0% in the first quarter of 2024. IFRS Diluted EPS was $0.68 compared to $1.02 in the first quarter of 2024. Non-IFRS Adjusted Diluted EPS was $1.50 compared to $1.53 in the first quarter of 2024.

Other Metrics as of and for the quarter ended March 31, 2025

Cash and cash equivalents and Short-term investments were $120.2 million as of March 31, 2025. As of March 31, 2025, we had a total amount of $285.0 million drawn from our credit facility. Globant completed the first quarter of 2025 with 31,102 Globers, 29,022 of whom were technology, design and innovation professionals. The geographic revenue breakdown for the first quarter of 2025 was as follows: 55.5% from North America (top country: US), 19.6% from Latin America (top country: Argentina), 18.2% 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 first quarter of 2025 represented 8.8%, 20.0% and 29.1% of revenues, respectively. During the twelve months ended March 31, 2025, Globant served a total of 1,004 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 341 accounts generating more than $1 million of annual revenues, compared to 318 for the same period one year ago. In terms of currencies, 67.2% of Globant's revenues for the first quarter of 2025 were denominated in US dollars.

"Globant's spirit of building and reinvention is stronger than ever. We are largely focused on AI-related opportunities, and assisting our clients in transforming their respective businesses and leveraging technology to drive growth and competitive advantages. Our comprehensive growth strategy unites our 100-squared client-centric vision with our industry-specialized AI Studios and subscription model. This strategy is powered by our AI Pods and the Globant Enterprise AI platform, which we believe positions Globant as the only player in the industry with such a comprehensive offering. With a robust pipeline and expected sequential growth for Q2, we are not just navigating the future; as builders, we are actively creating it, reaffirming our commitment to lead the next wave of technological transformation," said Martín Migoya, Globant's CEO and co-founder.

Story Continues

"Globant reported Q1 2025 revenues of $611.1 million, a 7% year-over-year growth. In a complex macroeconomic environment that impacted spending from our customers, we delivered healthy margins and profitability, with adjusted diluted EPS of $1.50. Moving forward, while we must navigate the uncertainties of the current global economic environment, we will continue to be laser focused on margins, cash flow and capital allocation, ensuring Globant delivers shareholder value while capitalizing on future growth opportunities," explained Juan Urthiague, Globant's CFO.

2025 Second Quarter and Full Year Outlook

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

Second quarter 2025 Revenues are estimated to be at least $612.0 million, or 4.2% year-over-year growth. This expected growth includes a neutral FX impact. Second quarter 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%. Second quarter 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.52 (assuming an average of 45.7 million diluted shares outstanding during the second quarter). Fiscal year 2025 Revenues are estimated to be at least $2,464.0 million, implying at least 2.0% year-over-year revenue growth. This expected growth includes a neutral FX impact. Fiscal year 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%. Fiscal year 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $6.10 (assuming an average of 45.8 million diluted shares outstanding during 2025).

Shareholder Letter, Conference Call and Webcast A shareholder letter will be available on the Investor Relations section of Globant's website. Martin Migoya, Globant's Chief Executive Officer & co-founder, and Juan Urthiague, Chief Financial Officer, will discuss the results in a video conference call beginning at 4:30 pm ET. This will be followed by a live Q&A session where they will be joined by Patricia Pomies, Chief Operating Officer; and Diego Tártara, Chief Technology Officer.

Video conference call access information is:
https://more.globant.com/F1Q25EarningsCall
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 31,100 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 condensed interim consolidated statements of financial position as of March 31, 2025 and December 31, 2024 and its condensed interim consolidated statements of comprehensive income for the three months ended March 31, 2025 and 2024, prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting".

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

Three Months Ended March 31, 2025  March 31, 2024  Revenues 611,085  571,078 Cost of revenues  (397,855)  (368,857) Gross profit 213,230  202,221  Selling, general and administrative expenses (161,695)  (152,114) Net impairment losses on financial assets (1,679)  (2,165) Profit from operations 49,856  47,942  Finance income 945  1,125 Finance expense (9,627)  (7,269) Other financial results, net 1,100  5,074 Financial results, net (7,582)  (1,070)  Share of results of investment in associates (17)  (14) Other income and expenses, net (3,271)  10,011 Profit before income tax 38,986  56,869  Income tax (8,491)  (12,940) Net income for the period 30,495  43,929  Other comprehensive income, net of income tax effects  Items that may be reclassified subsequently to profit and loss:  - Exchange differences on translating foreign operations 29,089  (18,608) - Net change in fair value on financial assets measured at FVOCI —  125 - Gains and losses on cash flow hedges 10,158  (8,755) Total comprehensive income for the period 69,742  16,691  Net income attributable to:  Owners of the Company 30,635  45,060 Non-controlling interest (140)  (1,131) Net income for the period 30,495  43,929  Total comprehensive income for the period attributable to:  Owners of the Company 67,724  19,009 Non-controlling interest 2,018  (2,318) Total comprehensive income for the period 69,742  16,691 Earnings per share  Basic  0.70  1.05 Diluted 0.68  1.02 Weighted average of outstanding shares (in thousands)  Basic 44,057  43,103 Diluted 45,182  44,071

Globant S.A. Condensed Interim Consolidated Statements of Financial Position as of March 31, 2025 and December 31, 2024 (In thousands of U.S. dollars, unaudited)

March 31, 2025  December 31, 2024 ASSETS  Current assets  Cash and cash equivalents   114,004  142,093 Investments  6,151  13,992 Trade receivables  633,205  605,002 Other assets  41,729  20,420 Other receivables  73,034  53,939 Other financial assets  7,427  3,100 Total current assets  875,550  838,546  Non-current assets  Investments   2,304  2,212 Other assets   3,510  4,750 Other receivables   35,407  40,784 Deferred tax assets  83,966  80,811 Investment in associates  1,631  1,648 Other financial assets   43,956  41,403 Property and equipment  150,841  154,755 Intangible assets  346,485  356,694 Right-of-use assets  117,497  122,884 Goodwill  1,579,866  1,553,796 Total non-current assets  2,365,463  2,359,737 TOTAL ASSETS  3,241,013  3,198,283  LIABILITIES  Current liabilities  Trade payables  104,854  114,743 Payroll and social security taxes payable  241,609  239,440 Borrowings  1,393  1,601 Other financial liabilities  159,495  163,027 Lease liabilities  27,474  29,736 Tax liabilities  20,631  36,916 Income tax payable  3,873  6,520 Other liabilities  468  231 Total current liabilities  559,797  592,214  Non-current liabilities  Trade payables   2,925  2,006 Borrowings   285,768  290,935 Other financial liabilities   115,077  132,300 Lease liabilities   87,475  87,887 Deferred tax liabilities  28,989  29,611 Income tax payable   12,949  6,625 Payroll and social security taxes payable   3,742  5,187 Provisions for contingencies  22,200  18,169 Total non-current liabilities  559,125  572,720 TOTAL LIABILITIES  1,118,922  1,164,934  Capital and reserves  Issued capital  52,914  52,837 Additional paid-in capital  1,211,952  1,193,029 Other reserves  (107,667)  (144,756) Retained earnings   893,456  862,821 Total equity attributable to owners of the Company  2,050,655  1,963,931 Non-controlling interests  71,436  69,418 Total equity  2,122,091  2,033,349 TOTAL EQUITY AND LIABILITIES  3,241,013  3,198,283

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

Three Months Ended March 31, 2025  March 31, 2024 Net Income for the period  30,495  43,929 Non-cash adjustments, taxes and others  73,625  54,902 Changes in working capital  (88,429)  (88,131) Cash flows from operating activities  15,691  10,700 Capital expenditures  (21,405)  (15,537) Cash flows from investing activities  (26,489)  (16,920) Cash flows from financing activities  (16,980)  (75,326) Net increase/decrease in cash & cash equivalents  (27,778)  (81,546)

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

Three Months Ended March 31, 2025  March 31, 2024  Reconciliation of adjusted gross profit  Gross profit  213,230  202,221 Depreciation and amortization expense  11,156  7,433 Share-based compensation expense - Equity settled  7,690  7,142 Adjusted gross profit  232,076  216,796 Adjusted gross profit margin  38.0 %  38.0 %  Reconciliation of selling, general and administrative expenses  Selling, general and administrative expenses  (161,695)  (152,114) Depreciation and amortization expense  29,655  25,065 Share-based compensation expense - Equity settled  13,385  12,315 Acquisition-related charges (a)  6,567  9,598 Adjusted selling, general and administrative expenses  (112,088)  (105,136) Adjusted selling, general and administrative expenses as % of revenues  (18.3) %  (18.4) %  Reconciliation of adjusted profit from operations  Profit from operations  49,856  47,942 Share-based compensation expense - Equity settled  21,075  19,457 Acquisition-related charges (a)  19,605  18,144 Adjusted profit from operations  90,536  85,543 Adjusted profit from operations margin  14.8 %  15.0 %  Reconciliation of net income for the period  Net income for the period  30,635  45,060 Share-based compensation expense - Equity settled  21,019  19,349 Acquisition-related charges (a)  27,957  9,940 Tax effect of non-IFRS adjustments  (11,776)  (6,804) Adjusted net income  67,835  67,545 Adjusted net income margin  11.1 %  11.8 %  Calculation of adjusted diluted EPS  Adjusted net income  67,835  67,545 Diluted shares  45,182  44,071 Adjusted diluted EPS  1.50  1.53

(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 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025  Total Employees 28,991 29,112 29,998 31,280 31,102 IT Professionals 26,933 27,133 27,927 29,198 29,022  North America Revenues % 56.0 56.3 55.7 55.2 55.5 Latin America Revenues % 22.9 23.0 21.8 20.4 19.6 Europe Revenues % 17.2 16.9 17.6 17.7 18.2 New Markets Revenues % 3.9 3.8 4.9 6.7 6.7  USD Revenues % 68.4 67.1 66.6 64.8 67.2 Other Currencies Revenues % 31.6 32.9 33.4 35.2 32.8  Top Customer % 8.3 8.3 9.1 9.1 8.8 Top 5 Customers % 21.8 21.0 21.0 19.8 20.0 Top 10 Customers % 30.1 30.3 30.1 29.3 29.1  Customers Served (Last Twelve Months)* 955 958 969 1,012 1,004 Customers with >$1M in Revenues (Last Twelve Months) 318 329 331 346 341

(*) Represents customers with more than $100,000 in revenues in the last twelve months. 1 Represents Asia, Oceania and the Middle East.

Investor Relations Contact:
Arturo Langa, Globant
[email protected]
+1 (877) 215-5230

Media Contact:
Gregorio Lascano, Globant
[email protected]
+1 (877) 215-5230Cision

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