Globant GLOB reported third-quarter 2024 non-GAAP earnings per share (EPS) of $1.63, matching the Zacks Consensus Estimate. It reported earnings of $1.48 per share in the prior-year quarter.

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Revenues in the quarter totaled $614.7 million, almost in line with the Zacks Consensus Estimate. Total revenues rose 12.7% year over year. Globant’s emphasis on artificial intelligence (AI) has been a key growth driver. AI-related initiatives have grown 120% year to date, demonstrating its ability to provide unique, customized experiences to clients and drive positive outcomes. Continued demand for GLOB’s services across major markets and industries is a tailwind.

For the year ended Sept. 30, 2024, GLOB served 969 customers. Of these, 21 generated more than $20 million in annual revenues. For the same period, GLOB had 331 clients that brought in more than $1 million in annual revenues, up 8.5% from the year-ago level.

Its top customer, top five customers and top 10 customers accounted for 9.1%, 21% and 30.1% of revenues, respectively. It exited the third quarter with 29,998 customers, an increase of 9.1% year over year.

Segmental Details

Revenues from Media and Entertainment (23% of net sales) were up 20.1% year over year to $141.5 million. The expansion was due to higher revenues from its biggest client, the Walt Disney Company, with 17.5% year-over-year growth.

Technology & Telecommunications revenues (10.7%) fell 1% year over year to $65.5 million.

Travel & Hospitality revenues (11.6%) soared 48.7% year over year to $71.2 million.

Consumer, Retail & Manufacturing (18.2%) grew 26.3% year over year to $112 million.

Globant S.A. Price, Consensus and EPS Surprise

Globant S.A. price-consensus-eps-surprise-chart | Globant S.A. Quote

Professional Services (10.6%) were down 4.6% from the prior-year quarter to $64.9 million.

Banks, Financial Services and Insurance (17.6%) were up 7% year over year to $108.5 million.

Healthcare revenues (6.7%) declined 7.5% year over year to $41.2 million.

Revenues from Other Verticals tallied $9.95 million (1.6%), down 7.6% year over year.

Region-wise Performance

Regarding region-wise revenue distribution, North America led with 55.7% of revenues, driven by the United States. Latin America, led by Argentina, contributed 21.8%. Europe accounted for 17.6%, with Spain as the top market. New Markets, including Saudi Arabia, represented 4.9%. 

The highest growth was driven by new markets in the Middle East and APAC, achieving an impressive 35.3% sequential increase and a 53.1% rise year over year. Management expects to witness strong growth potential in this region. Revenue rose 24.8% in Europe, 13.9% in Latin America and 6.6% in North America year over year.

Other Details

Non-IFRS adjusted gross margin was 38.5% compared with 38.2% a year ago.

Non-IFRS adjusted profit from operations margin was 15.6%, up from 15.3% in the prior-year quarter.

Adjusted net income for the period was $72.4 million, up 11.7% year over year.

Balance Sheet

As of Sept. 30, 2024, Globant’s cash, cash equivalents and short-term investments were $213.5 million, up from $180.4 million as of June 30, 2024.

During the quarter, it generated $90.5 million in cash from operating activities compared with $87.4 million in the previous year.

Outlook

Driven by its growth trajectory and strong pipeline, GLOB anticipates fourth-quarter revenues between $642 million and $648 million, representing 10.6-11.6% year-over-year growth. 

The company forecasts a non-IFRS adjusted profit from operations margin in the range of 15.0-16.0% and non-IFRS adjusted diluted EPS between $1.71 and $1.75.

For full-year 2024, Globant estimates revenue growth between 15.2% and 15.5%, reaching $2,415 million to $2,421 million. 

The non-IFRS adjusted profit from operations margin is expected to remain strong, between 15.0% and 15.5%, with a non-IFRS adjusted diluted EPS between $6.37 and $6.43.

GLOB’s Zacks Rank

GLOB currently carries a Zacks Rank #3 (Hold). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Intrusion Inc. INTZ incurred a third-quarter 2024 loss of 35 cents per share compared with a loss of $2.78 a year ago. The bottom line was narrower than the Zacks Consensus Estimate of a loss of 42 cents.

Shares of INTZ lost 93% in the past year.

BCE Inc. BCE reported third-quarter 2024 adjusted EPS of C$0.75 (55 cents) compared with C$0.81 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 57 cents.

Shares of BCE lost 26.4% in the past year.

Itron Inc ITRI reported non-GAAP EPS of $1.84 for third-quarter 2024, which beat the Zacks Consensus Estimate by 62.8%. The company reported earnings of 98 cents in the prior-year quarter.

Shares of ITRI surged 94.8% in the past year. 

 

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