GLOB Globant SA

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of May 2024

Commission File Number 001-36535

 

GLOBANT S.A.

(Translation of registrant's name into English)

 

37A, Avenue J.F. Kennedy
L-1855, Luxembourg
Tel: + 352 20 30 15 96

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

x Form 20-F                 ¨ Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 

 

GLOBANT S.A.

FORM 6-K

 

Globant S.A. (the “Company”) is furnishing under the cover of Form 6-K the following:

 

Earnings Release

 

Exhibit 99.1

Press release, dated May 16, 2024, entitled “Globant Reports 2024 First Quarter Financial Results.”

 

Incorporation by Reference

 

The unaudited condensed interim consolidated statements of comprehensive income, unaudited condensed interim consolidated statements of financial position, unaudited selected cash flow data, unaudited supplemental non-IFRS financial information and unaudited schedule of supplemental information contained in the press release attached as Exhibit 99.1 to this report on Form 6-K are hereby incorporated by reference into the Company’s registration statements on Form S-8 (File Nos. 333-201602, 333-211835, 333-232022, 333-255113 and 333-266204), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

 

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	GLOBANT S.A.
	By:	/s/ JUAN URTHIAGUE
		Name:	Juan Urthiague
		Title:	Chief Financial Officer

 

Date: May 16, 2024

 

 

 

Exhibit 99.1

 

May 16, 2024

 

Globant Reports 2024 First Quarter Financial Results

Executing on Growth Initiatives

 

•

First quarter revenues of $571.1 million, up 20.9% year-over-year

•

IFRS Diluted EPS of $1.02 for the first quarter

•

Non-IFRS Adjusted Diluted EPS of $1.53 for the first quarter

 

LUXEMBOURG / May 16, 2024 - 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, 2024.

 

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.

 

First Quarter 2024 Financial Highlights

 

•

Revenues rose to $571.1 million, representing 20.9% year-over-year growth.

•

IFRS Gross Profit Margin was 35.4% compared to 35.6% in the first quarter of 2023.

•

Non-IFRS Adjusted Gross Profit Margin was 38.0% compared to 38.2% in the first quarter of 2023.

•

IFRS Profit from Operations Margin was 8.4% compared to 9.4% in the first quarter of 2023.

•

Non-IFRS Adjusted Profit from Operations Margin was 15.0% compared to 15.1% in the first quarter of 2023.

•

IFRS Diluted EPS was $1.02 compared to $0.84 in the first quarter of 2023.

•

Non-IFRS Adjusted Diluted EPS was $1.53 compared to $1.28 in the first quarter of 2023.

 

Other Metrics as of and for the quarter ended March 31, 2024

 

•

Cash and cash equivalents and Short-term investments were $237.5 million as of March 31, 2024, a decrease of $85.8 million from $323.3 million as of December 31, 2023, driven mainly by the partial repayment of our credit facility and a number of M&A earnout payments. As of March 31, 2024, we had a total amount of $105 million drawn from our credit facility.

•

Globant completed the first quarter of 2024 with 28,991 Globers, 26,933 of whom were technology, design and innovation professionals.

•

The geographic revenue breakdown for the first quarter of 2024 was as follows: 56.0% from North America (top country: US), 22.9% from Latin America (top country: Argentina), 17.2% from Europe (top country: Spain) and 3.9% from New Markets1 (top country: Saudi Arabia).

•

Globant’s top customer, top five customers and top ten customers for the first quarter of 2024 represented 8.3%, 21.8% and 30.1% of revenues, respectively.

•

During the twelve months ended March 31, 2024, Globant served a total of 955 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 318 accounts generating more than $1 million of annual revenues, compared to 276 for the same period one year ago.

•

In terms of currencies, 68.4% of Globant’s revenues for the first quarter of 2024 were denominated in US dollars.

 

¹ Represents Asia, Oceania and the Middle East.

 

 

“As an industry leader, Globant is confident in its resilience and growth plans as we provide guidance for a strong 2024. Our clear strategy, unique value proposition and authentic partnerships are the foundation of our differentiated offering. With a focus on innovative technology, our studio networks are poised to deliver mid-teen top-line growth in 2024. We continue to reinvent the industry, creating attractive products that touch the lives of millions and drive the digital economy of tomorrow,” said Martín Migoya, Globant’s CEO and co-founder. “Our global presence, AI expertise, industry specialization and geographic scale enable us for success as we drive loyalty through seamless and satisfying customer experiences.”

 

“Our first-quarter revenues of $571.1 million, a remarkable 20.9% year-over-year growth, exceeded our guidance and positioned us well for the year ahead. We continue to see secular technology trends, driven by AI, and remain highly optimistic about our growth prospects. The strength of our pipeline and the positive momentum in recent bookings reinforce our confidence in the future. Across all geographic segments, we experienced robust growth, a testament to our solid execution and strategic focus. With a robust balance sheet and ample funding options, we are well-positioned to drive growth and make strategic investments. Looking ahead, we are fully confident in our ability to deliver another year of industry-leading growth, and we are excited about the opportunities that lie ahead,” explained Juan Urthiague, Globant’s CFO.

 

2024 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 2024:

 

•

Second quarter 2024 Revenues are estimated to be in the range of $585.0 million to $589.0 million, or 17.6% to 18.4% year-over-year growth.

•

Second quarter 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 14.5% - 15.5%.

•

Second quarter 2024 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $1.47 to $1.52 (assuming an average of 44.2 million diluted shares outstanding during the second quarter).

•

Fiscal year 2024 Revenues are estimated to be in the range of $2,405.0 million to $2,440.0 million, implying a 14.7% to 16.4% year-over-year revenue growth.

•

Fiscal year 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 14.5% - 15.5%.

•

Fiscal year 2024 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $6.20 to $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 first quarter 2024 results in a video conference call today beginning at 4:30pm ET.

 

Video conference call access information is:

https://more.globant.com/F1Q24EarningsCall

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 28,900 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 condensed interim consolidated statements of financial position as of March 31, 2024 and December 31, 2023 and its condensed interim consolidated statements of comprehensive income for the three months ended March 31, 2024 and 2023, 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, 2024				March 31, 2023
Revenues			571,078				472,421
Cost of revenues			(368,857	)			(304,124	)
Gross profit			202,221				168,297
Selling, general and administrative expenses			(152,114	)			(119,357	)
Net impairment losses on financial assets			(2,165	)			(4,717	)
Profit from operations			47,942				44,223
Finance income			1,125				1,235
Finance expense			(7,269	)			(4,172	)
Other financial results, net			5,074				3,762
Financial results, net			(1,070	)			825
Share of results of investment in associates			(14	)			56
Other income and expenses, net			10,011				1,487
Profit before income tax			56,869				46,591
Income tax			(12,940	)			(10,206	)
Net income for the period			43,929				36,385
Other comprehensive income, net of income tax effects
Items that may be reclassified subsequently to profit and loss:
- Exchange differences on translating foreign operations			(18,608	)			2,741
- Net change in fair value on financial assets measured at FVOCI			125				25
- Gains and losses on cash flow hedges			(8,755	)			4,206
Total comprehensive income for the period			16,691				43,357
Net income attributable to:
Owners of the Company			45,060				36,419
Non-controlling interest			(1,131	)			(34	)
Net income for the period			43,929				36,385
Total comprehensive income for the period attributable to:
Owners of the Company			19,009				42,129
Non-controlling interest			(2,318	)			1,228
Total comprehensive income for the period			16,691				43,357
Earnings per share
Basic			1.05				0.86
Diluted			1.02				0.84
Weighted average of outstanding shares (in thousands)
Basic			43,103				42,297
Diluted			44,071				43,237

 

 

Globant S.A.

Condensed Interim Consolidated Statements of Financial Position as of March 31, 2024 and December 31, 2023

(In thousands of U.S. dollars, unaudited)

 

		March 31, 2024				December 31, 2023
ASSETS
Current assets
Cash and cash equivalents			225,622				307,223
Investments			11,879				16,070
Trade receivables			561,363				499,283
Other assets			28,617				31,753
Other receivables			64,193				54,786
Other financial assets			6,067				15,418
Total current assets			897,741				924,533
Non-current assets
Investments			1,981				1,833
Other assets			3,614				4,088
Other receivables			23,525				26,475
Deferred tax assets			63,703				60,777
Investment in associates			1,412				1,426
Other financial assets			35,213				34,864
Property and equipment			154,684				162,736
Intangible assets			266,000				274,382
Right-of-use assets			120,640				119,400
Goodwill			1,105,279				1,120,724
Total non-current assets			1,776,051				1,806,705
TOTAL ASSETS			2,673,792				2,731,238
LIABILITIES
Current liabilities
Trade payables			106,169				124,545
Payroll and social security taxes payable			235,810				221,843
Borrowings			106,159				156,916
Other financial liabilities			102,860				80,370
Lease liabilities			38,123				47,852
Tax liabilities			22,231				33,229
Income tax payable			20,488				11,287
Other liabilities			312				896
Total current liabilities			632,152				676,938
Non-current liabilities
Trade payables			2,797				2,981
Borrowings			1,795				2,191
Other financial liabilities			100,369				137,382
Lease liabilities			79,009				70,884
Deferred tax liabilities			18,932				21,098
Income tax payable			4,725				—
Payroll and social security taxes payable			6,542				5,139
Provisions for contingencies			16,656				16,448
Total non-current liabilities			230,825				256,123
TOTAL LIABILITIES			862,977				933,061
Capital and reserves
Issued capital			51,778				51,705
Additional paid-in capital			1,018,792				1,022,918
Other reserves			(68,099	)			(42,048	)
Retained earnings			742,149				697,089
Total equity attributable to owners of the Company			1,744,620				1,729,664
Non-controlling interests			66,195				68,513
Total equity			1,810,815				1,798,177
TOTAL EQUITY AND LIABILITIES			2,673,792				2,731,238

 

 

Globant S.A.

Selected Cash Flow Data

(In thousands of U.S. dollars, unaudited)

 

		Three Months Ended
		March 31, 2024				March 31, 2023
Net Income for the period			43,929				36,385
Non-cash adjustments, taxes and others			54,902				46,218
Changes in working capital			(88,131	)			(48,776	)
Cash flows from operating activities			10,700				33,827
Capital expenditures			(15,537	)			(35,610	)
Cash flows from investing activities			(16,920	)			(46,880	)
Cash flows from financing activities			(75,326	)			(25,960	)
Net decrease in cash & cash equivalents			(81,546	)			(39,013	)

 

 

Globant S.A.

Supplemental Non-IFRS Financial Information

(In thousands of U.S. dollars, unaudited)

 

		Three Months Ended
		March 31, 2024				March 31, 2023
Reconciliation of adjusted gross profit
Gross Profit			202,221				168,297
Depreciation and amortization expense			7,433				6,432
Share-based compensation expense - Equity settled			7,142				5,590
Adjusted gross profit			216,796				180,319
Adjusted gross profit margin			38.0	%			38.2	%
Reconciliation of selling, general and administrative expenses
Selling, general and administrative expenses			(152,114	)			(119,357	)
Depreciation and amortization expense			25,065				19,779
Share-based compensation expense - Equity settled			12,315				11,130
Acquisition-related charges (a)			9,598				4,548
Adjusted selling, general and administrative expenses			(105,136	)			(83,900	)
Adjusted selling, general and administrative expenses as % of revenues			(18.4	)%			(17.8	)%
Reconciliation of Adjusted Profit from Operations
Profit from Operations			47,942				44,223
Share-based compensation expense - Equity settled			19,457				16,720
Acquisition-related charges (a)			18,144				10,415
Adjusted Profit from Operations			85,543				71,358
Adjusted Profit from Operations margin			15.0	%			15.1	%
Reconciliation of Net income for the period
Net income for the period			45,060				36,419
Share-based compensation expense - Equity settled			19,349				16,720
Acquisition-related charges (a)			9,940				9,872
Tax effect of non-IFRS adjustments			(6,804	)			(7,607	)
Adjusted Net income			67,545				55,404
Adjusted Net income margin			11.8	%			11.7	%
Calculation of Adjusted Diluted EPS
Adjusted Net income			67,545				55,404
Diluted shares			44,071				43,237
Adjusted Diluted EPS			1.53				1.28

 

(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 2023				Q2 2023				Q3 2023				Q4 2023				Q1 2024
Total Employees			26,288				25,947				27,505				29,150				28,991
IT Professionals			24,496				24,163				25,575				27,116				26,933
North America Revenues %			61.4				60.6				58.9				57.4				56.0
Latin America Revenues %			21.8				22.0				21.6				22.9				22.9
Europe Revenues %			13.3				13.8				15.9				15.8				17.2
New Markets Revenues %			3.5				3.6				3.6				3.9				3.9
USD Revenues %			74.8				73.9				72.5				68.6				68.4
Other Currencies Revenues %			25.2				26.1				27.5				31.4				31.6
Top Customer %			9.4				8.8				8.7				8.2				8.3
Top 5 Customers %			24.5				23.7				22.5				21.4				21.8
Top 10 Customers %			34.8				33.3				32.2				30.8				30.1
Customers Served (Last Twelve Months)*			817				835				889				930				955
Customers with >$1M in Revenues (Last Twelve Months)			276				283				305				311				318

 

(*) Represents customers with more than $100,000 in revenues in the last twelve months.

 

Investor Relations Contact:

Arturo Langa, Globant

investors@globant.com

+1 (877) 215-5230

 

Media Contact:

Wanda Weigert, Globant

pr@globant.com

+1 (877) 215-5230

Source: Globant

 

 

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