• Revenue: $614.7 million, up 12.7% year-over-year and 4.6% sequentially.

• Adjusted Gross Profit Margin: 38.5%, up 40 basis points sequentially and 30 basis points year-over-year.

• Adjusted Operating Margin: 15.6%, up 50 basis points sequentially and 30 basis points year-over-year.

• Adjusted Net Income: $72.4 million, with an 11.8% adjusted net profit margin, up 40 basis points sequentially.

• Adjusted Diluted EPS: $1.63, up 10.1% year-over-year.

• Free Cash Flow: $69.7 million, compared to $60.6 million in the same period last year.

• Cash and Short-term Investments: $213.5 million, with $27.2 million in net cash.

• Client Revenue: 21 clients generating over $20 million annually; 331 clients contributing more than $1 million annually.

• Top Client Revenue Growth: Revenue from Walt Disney Company increased by 17.5% year-over-year and 14% quarter-over-quarter.

• Regional Revenue Growth: Middle East and APAC up 35.3% sequentially and 53.1% year-over-year; Europe up 24.8% year-over-year.

• Headcount: 29,998 Globers, a 9.1% increase year-over-year.

• Utilization Rate: 79.8%, with a slight increase.

• Attrition Rate: 9%, down from 9.5% in Q3 2023.

• Warning! GuruFocus has detected 4 Warning Signs with GLOB.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Globant SA (NYSE:GLOB) reported a strong quarter with $614.7 million in revenue, marking a 12.7% year-over-year increase.

• AI-related work generated over $250 million in revenue in the first nine months of 2024, up 120% from the same period last year.

• The company secured two of the largest bookings in its history within the last six months, indicating strong demand and future growth potential.

• Globant SA (NYSE:GLOB) is expanding its presence in new markets, with significant growth in the Middle East and APAC regions, showing a 35.3% sequential growth.

• The company has a strong balance sheet with $213.5 million in cash and short-term investments, providing ample liquidity for growth initiatives.

Negative Points

• Globant SA (NYSE:GLOB) faces foreign exchange headwinds, with a 9% year-on-year revenue growth in organic constant currency terms for Q3.

• The utilization rate is below target at 79.8%, with the company aiming for 81% to 82%, indicating potential inefficiencies.

• Despite strong growth, the company is experiencing some pressure on operating margins due to currency fluctuations in Latin America.

• There is a noted under-penetration of AI in some newer technologies, suggesting potential challenges in fully integrating AI solutions.

• Globant SA (NYSE:GLOB) is still in the early stages of establishing its presence in the Middle East, which may require significant investment and time to realize full potential.