Globant Reports 2023 Fourth Quarter and Full Year Financial Results

Solid Finish to the Year and Positive Outlook Ahead

• Fourth quarter revenues of $580.7 million, up 18.3% year-over-year
• IFRS Diluted EPS of $0.96 for the fourth quarter
• Non-IFRS Adjusted Diluted EPS of $1.62 for the fourth quarter
• Full year 2023 revenues of $2,095.9 million, up 17.7% year-over-year
• IFRS Diluted EPS of $3.64 for the full year
• Non-IFRS Adjusted Diluted EPS of $5.74 for the full year

LUXEMBOURG, Feb. 15, 2024 /PRNewswire/ -- Globant (NYSE:GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced results for the three months and year ended December 31, 2023.

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

Fourth Quarter 2023 Financial Highlights

• Revenues rose to $580.7 million, representing 18.3% year-over-year growth.
• IFRS Gross Profit Margin was 35.9% compared to 37.4% in the fourth quarter of 2022.
• Non-IFRS Adjusted Gross Profit Margin was 38.0% compared to 39.0% in the fourth quarter of 2022.
• IFRS Profit from Operations Margin was 9.5% compared to 11.2% in the fourth quarter of 2022.
• Non-IFRS Adjusted Profit from Operations Margin was 15.3% compared to 16.1% in the fourth quarter of 2022.
• IFRS Diluted EPS was $0.96 compared to $0.91 in the fourth quarter of 2022.
• Non-IFRS Adjusted Diluted EPS was $1.62 compared to $1.40 in the fourth quarter of 2022.

Full Year ended December 31, 2023 Financial Highlights

• Revenues rose to $2,095.9 million, representing 17.7% year-over-year growth.
• IFRS Gross Profit Margin was 36.1% compared to 37.6% for the full year 2022.
• Non-IFRS Adjusted Gross Profit Margin was 38.1% compared to 39.2% for the full year 2022.
• IFRS Profit from Operations Margin was 9.5% compared to 11.6% for the full year  2022.
• Non-IFRS Adjusted Profit from Operations Margin was 15.2% compared to 16.3% for the full year 2022.
• IFRS Diluted EPS was $3.64 compared to $3.47 for the full year 2022.
• Non-IFRS Adjusted Diluted EPS was $5.74 compared to $5.08 for the full year 2022.

Other Metrics as of and for the quarter ended December 31, 2023

• Cash and cash equivalents and Short-term investments were $323.3 million as of December 31, 2023, a decrease of $17.6 million from $340.9 million as of December 31, 2022, driven mainly by investments in our platform business, expansion to new geographies, the addition of new studios and acquisitions. As of December 31, 2023, we had a total amount of $155 million drawn from our credit facility.
• Globant completed the fourth quarter of 2023 with 29,150 Globers, 27,116 of whom were technology, design and innovation professionals.
• The geographic revenue breakdown for the fourth quarter of 2023 was as follows: 57.4% from North America (top country: US), 22.9% from Latin America (top country: Argentina), 17.2% from EMEA (top country: Spain) and 2.5% from Asia and Oceania (top country: Japan).
• Globant's top customer, top five customers and top ten customers for the fourth quarter of 2023 represented 8.2%, 21.4% and 30.8% of revenues, respectively.
• During the twelve months ended December 31, 2023, Globant served a total of 1,610 customers (with revenues over $10,000 in the last twelve months) and continued to increase its wallet share, with 311 accounts generating more than $1 million of annual revenues, compared to 259 for the same period one year ago.
• In terms of currencies, 68.6% of Globant's revenues for the fourth quarter of 2023 were denominated in US dollars.

"Our journey of two decades has been marked by resilience, innovation and a commitment to delivering exceptional results. As we reflect on our achievements from the fourth quarter and full year of 2023, we are very proud of the progress we have made as a company. Throughout the year, we expanded into new markets, forged valuable relationships with top-notch new clients and diversified our service offering. Our dedication to being a trusted end-to-end partner has enabled us to craft multiple solutions and continuously expand the breadth of our services, platforms and capabilities. With a global footprint in five continents and a focus on AI and generative AI capabilities, we are well-positioned for future growth," said Martín Migoya, Globant's CEO and co-founder. "Our recent acquisitions of GUT and Iteris further strengthen our creative and digital capabilities. As we enter 2024, we remain optimistic about the growth potential of our total addressable market and our ability to deliver industry-leading results."

"Our strong results in 2023 reflect the strength inherent in our culture, the agility of our business model and the transformative impact of our work. We achieved a milestone of $2.1 billion in revenue, representing a remarkable 17.7% year-over-year growth, while capturing a significant market share and validating our value proposition. Our focus on profitability and operational efficiency resulted in solid financial health, as we maintained strong margins and generated meaningful profitability. With a robust financial position and significant free cash flow generation, we are strategically positioned to foster expansion and strengthen our strategic investments. We are grateful for the trust and support of our clients, shareholders and the entire Globant team as we continue our journey of growth and success," explained Juan Urthiague, Globant's CFO.

2024 First Quarter and Full Year Outlook

Based on current market conditions, Globant is providing the following estimates for the first quarter and the full year of 2024:

• First quarter 2024 Revenues are estimated to be at least $570.0 million, or 20.7% year-over-year growth.
• First quarter 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15-16%.
• First quarter 2024 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.53 (assuming an average of 44.1 million diluted shares outstanding during the first quarter).
• Fiscal year 2024 Revenues are estimated to be at least $2,435.0 million, implying at least 16.2% year-over-year revenue growth.
• Fiscal year 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15%-16%.
• Fiscal year 2024 Non-IFRS Adjusted Diluted EPS is estimated to be at least $6.50 (assuming an average of 44.3 million diluted shares outstanding during 2024).

Conference Call and Webcast

Martin Migoya, Globant's CEO and co-founder, Juan Urthiague, Globant's CFO, Patricia Pomies, Globant's COO, and Diego Tártara, Globant's  CTO, will discuss the fourth quarter 2023 results in a video conference call today beginning at 4:30pm ET.

Video conference call access information is:

https://more.globant.com/F4Q23EarningsCall

Webcast http://investors.globant.com/ 

About Globant (NYSE:GLOB)

We are a digitally native company that helps organizations reinvent themselves to create a way forward and unleash their potential. We are the place where innovation, design and engineering meet scale.

We have more than 29,000 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 International Financial Reporting Standards ("IFRS") 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" nor 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. 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 consolidated statements of financial position as of December 31, 2023 and December 31, 2022 and its consolidated statements of comprehensive income for the three months and years ended December 31, 2023 and 2022, prepared in accordance with IFRS as issued by the IASB.

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.

 

 

 

(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, charges for impairment of acquired intangible assets 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.

 

Investor Relations Contact:

Arturo Langa, Globant

[email protected]

+1 (877) 215-5230

Media Contact:

Wanda Weigert, Globant

[email protected]

+1 (877) 215-5230

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SOURCE Globant