Globant Reports 2025 First Quarter Financial Results
-- 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.
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.
"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
investors@globant.com
+1 (877) 215-5230
Media Contact:
Gregorio Lascano, Globant
pr@globant.com
+1 (877) 215-5230
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SOURCE Globant
