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 August 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 August 15, 2024, entitled “Globant Reports 2024 Second 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, 333-266204 and 333-281049), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.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: August 15, 2024

 

 

Exhibit 99.1

 

August 15, 2024

 

Globant Reports 2024 Second Quarter Financial Results

Growth Outlook Remains Strong, Executing on Profitability

 

●

Second quarter revenues of $587.5 million, up 18.1% year-over-year

●

IFRS Diluted EPS of $0.87 for the second quarter

●

Non-IFRS Adjusted Diluted EPS of $1.51 for the second quarter

 

LUXEMBOURG / August 15, 2024 - Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced results for the three and six months ended June 30, 2024.

 

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

 

Second Quarter 2024 Financial Highlights

 

●

Revenues rose to $587.5 million, representing 18.1% year-over-year growth.

●

IFRS Gross Profit Margin was 35.7% compared to 36.3% in the second quarter of 2023.

●

Non-IFRS Adjusted Gross Profit Margin was 38.1% compared to 38.3% in the second quarter of 2023.

●

IFRS Profit from Operations Margin was 9.2% compared to 9.4% in the second quarter of 2023.

●

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

●

IFRS Diluted EPS was $0.87 compared to $0.85 in the second quarter of 2023.

●

Non-IFRS Adjusted Diluted EPS was $1.51 compared to $1.36 in the second quarter of 2023.

 

Six months ended June 30, 2024 Financial Highlights

 

●

Revenues rose to $1,158.5 million, representing 19.4% year-over-year growth.

●

IFRS Gross Profit Margin was 35.5% compared to 36.0% in the first six months of 2023.

●

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

●

IFRS Profit from Operations Margin was 8.8% compared to 9.4% in the first six months of 2023.

●

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

●

IFRS Diluted EPS was $1.89 compared to $1.70 in the first six months of 2023.

●

Non-IFRS Adjusted Diluted EPS was $3.04 compared to $2.64 in the first six months of 2023.

 

 

Other Metrics as of and for the quarter ended June 30, 2024

 

●

Cash and cash equivalents and Short-term investments were $180.4 million as of June 30, 2024, a decrease of $142.9 million from $323.3 million as of December 31, 2023, driven mainly by payments of bonuses, investments in our platform business, partial repayment of our credit facility and a number of M&A earnout payments. As of June 30, 2024, we had a total amount of $125 million drawn from our credit facility.

●

Globant completed the second quarter of 2024 with 29,112 Globers, 27,133 of whom were technology, design and innovation professionals.

●

The geographic revenue breakdown for the second quarter of 2024 was as follows: 56.3% from North America (top country: US), 23.0% from Latin America (top country: Argentina), 16.9% from Europe (top country: Spain) and 3.8% from New Markets1 (top country: Saudi Arabia).

●

Globant’s top customer, top five customers and top ten customers for the second quarter of 2024 represented 8.3%, 21.0% and 30.3% of revenues, respectively.

●

During the twelve months ended June 30, 2024, Globant served a total of 958 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 329 accounts generating more than $1 million of annual revenues, compared to 283 for the same period one year ago.

●

In terms of currencies, 67.1% of Globant’s revenues for the second quarter of 2024 were denominated in US dollars.

 

“As we celebrate our tenth anniversary as a public company, Globant remains steadfast in its commitment to long-term growth and industry leadership. Our recent quarterly results demonstrate robust revenue growth and strong performance across all regions and verticals, particularly in media, sports, and entertainment. Our AI-related revenues have significantly grown by nearly 130% in the first half of 2024, underscoring our pivotal role in the ongoing AI revolution. With the unveiling of our AI agents, which enhance the software development life cycle, and the introduction of the Globant GUT Network at the Cannes Lions International Festival of Creativity, we are poised to meet the growing demands for AI-based solutions across the global economy. Our entrepreneurial and innovative mindset continues to drive us forward, fostering lasting client relationships and delivering exceptional shareholder returns,” said Martín Migoya, Globant’s CEO and co-founder. “As we look ahead, we are optimistic about our record-high pipeline and the transformative potential of generative AI to shape the future of our industry.”

 

“We are very proud of the results today, which reflect our strong execution. This quarter, we achieved revenues of $587.5 million, up 18.1% year-over-year, driven by a broad-based performance. Our ability to maintain high profitability, despite the challenging economic environment, is a reflection of our operational efficiency. As we look ahead, we are maintaining a strong growth outlook for the remainder of the year. This is supported by our continued expansion across different regions and our investments in broadening our service offering. Additionally, the increase in AI-related revenues is translating into tangible revenue growth for Globant. We remain encouraged by the opportunities ahead for the company, and are committed to delivering industry leading growth and profitability,” explained Juan Urthiague, Globant’s CFO.

 

2024 Third Quarter and Full Year Outlook

 

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

 

●

Third quarter 2024 Revenues are estimated to be in the range of $611.0 million to $617.0 million, or 12.1% to 13.2% year-over-year growth.

●

Third quarter 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15.0% to 16.0%.

●

Third quarter 2024 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $1.60 to $1.64 (assuming an average of 44.4 million diluted shares outstanding during the third quarter).

●

Fiscal year 2024 Revenues are estimated to be in the range of $2,407.0 million to $2,421.0 million, implying a 14.8% to 15.5% year-over-year revenue growth.

●

Fiscal year 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15.0% to 15.5%.

●

Fiscal year 2024 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $6.30 to $6.50 (assuming an average of 44.3 million diluted shares outstanding during 2024).

 

¹ Represents Asia, Oceania and the Middle East.

 

 

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 second quarter 2024 results in a video conference call today beginning at 4:30pm ET.

 

Video conference call access information is:

https://more.globant.com/F2Q24EarningsCall

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 29,100 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 International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), applicable to interim periods, 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 June 30, 2024 and December 31, 2023 and its condensed interim consolidated statements of comprehensive income for the three and six months ended June 30, 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)

 

		Six Months Ended								Three Months Ended
		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Revenues			1,158,539				969,952				587,461				497,531
Cost of revenues			(746,769	)			(620,814	)			(377,912	)			(316,690	)
Gross profit			411,770				349,138				209,549				180,841
Selling, general and administrative expenses			(306,699	)			(247,533	)			(154,585	)			(128,176	)
Net impairment losses on financial assets			(5,327	)			(11,358	)			(3,162	)			(6,641	)
Other operating income and expenses, net			1,961				614				1,961				614
Profit from operations			101,705				90,861				53,763				46,638
Finance income			2,527				2,176				1,402				941
Finance expense			(13,502	)			(9,402	)			(6,233	)			(5,230	)
Other financial results, net			5,606				8,429				532				4,667
Financial results, net			(5,369	)			1,203				(4,299	)			378
Share of results of investment in associates			56				15				70				(41	)
Other income and expenses, net			10,606				1,301				595				(186	)
Profit before income tax			106,998				93,380				50,129				46,789
Income tax			(23,044	)			(20,089	)			(10,104	)			(9,883	)
Net income for the period			83,954				73,291				40,025				36,906
Other comprehensive income, net of income tax effects
Items that may be reclassified subsequently to profit and loss:
- Exchange differences on translating foreign operations			(43,013	)			1,252				(24,405	)			(1,489	)
- Net change in fair value on financial assets measured at FVOCI			1,019				(2,331	)			894				(2,356	)
- Gains and losses on cash flow hedges			(13,133	)			3,879				(4,378	)			(327	)
Total comprehensive income for the period			28,827				76,091				12,136				32,734
Net income attributable to:
Owners of the Company			83,718				73,412				38,658				36,993
Non-controlling interest			236				(121	)			1,367				(87	)
Net income for the period			83,954				73,291				40,025				36,906
Total comprehensive income for the period attributable to:
Owners of the Company			30,598				75,027				11,589				32,898
Non-controlling interest			(1,771	)			1,064				547				(164	)
Total comprehensive income for the period			28,827				76,091				12,136				32,734
Earnings per share
Basic			1.94				1.73				0.89				0.87
Diluted			1.89				1.70				0.87				0.85
Weighted average of outstanding shares (in thousands)
Basic			43,172				42,362				43,244				42,426
Diluted			44,220				43,309				44,292				43,373

 

 

Globant S.A.

Condensed Interim Consolidated Statements of Financial Position as of June 30, 2024 and December 31, 2023

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

 

		June 30, 2024				December 31, 2023
ASSETS
Current assets
Cash and cash equivalents			157,629				307,223
Investments			22,736				16,070
Trade receivables			578,819				499,283
Other assets			25,312				31,753
Other receivables			64,745				54,786
Other financial assets			4,338				15,418
Total current assets			853,579				924,533
Non-current assets
Investments			2,115				1,833
Other assets			4,973				4,088
Other receivables			26,243				26,475
Deferred tax assets			59,763				60,777
Investment in associates			1,482				1,426
Other financial assets			37,008				34,864
Property and equipment			151,873				162,736
Intangible assets			284,518				285,661
Right-of-use assets			120,676				119,400
Goodwill			1,076,761				1,105,073
Total non-current assets			1,765,412				1,802,333
TOTAL ASSETS			2,618,991				2,726,866
LIABILITIES
Current liabilities
Trade payables			101,251				124,545
Payroll and social security taxes payable			191,950				221,843
Borrowings			125,605				156,916
Other financial liabilities			67,659				68,750
Lease liabilities			31,809				47,852
Tax liabilities			25,797				33,229
Income tax payable			5,565				11,287
Other liabilities			1,611				896
Total current liabilities			551,247				665,318
Non-current liabilities
Trade payables			3,173				2,981
Borrowings			1,777				2,191
Other financial liabilities			91,070				135,238
Lease liabilities			84,205				70,884
Deferred tax liabilities			19,861				21,098
Income tax payable			4,372				—
Payroll and social security taxes payable			3,470				5,139
Provisions for contingencies			20,718				28,336
Total non-current liabilities			228,646				265,867
TOTAL LIABILITIES			779,893				931,185
Capital and reserves
Issued capital			52,039				51,705
Additional paid-in capital			1,041,459				1,022,918
Other reserves			(95,168	)			(42,048	)
Retained earnings			780,807				697,089
Total equity attributable to owners of the Company			1,779,137				1,729,664
Non-controlling interests			59,961				66,017
Total equity			1,839,098				1,795,681
TOTAL EQUITY AND LIABILITIES			2,618,991				2,726,866

 

 

Globant S.A.

Selected Cash Flow Data

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

 

		Three Months Ended
		June 30, 2024				June 30, 2023
Net Income for the period			40,025				36,906
Non-cash adjustments, taxes and others			41,788				61,928
Changes in working capital			(71,646	)			(62,444	)
Cash flows from operating activities			10,167				36,390
Capital expenditures			(38,155	)			(27,822	)
Cash flows from investing activities			(60,656	)			(35,510	)
Cash flows from financing activities			(17,514	)			(13,256	)
Net decrease in cash & cash equivalents			(68,003	)			(12,376	)

 

 

Globant S.A.

Supplemental Non-IFRS Financial Information

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

		Six Months Ended								Three Months Ended
		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Reconciliation of adjusted gross profit
Gross profit			411,770				349,138				209,549				180,841
Depreciation and amortization expense			15,958				13,033				8,525				6,601
Share-based compensation expense - Equity settled			12,901				8,778				5,759				3,188
Adjusted gross profit			440,629				370,949				223,833				190,630
Adjusted gross profit margin			38.0	%			38.2	%			38.1	%			38.3	%
Reconciliation of selling, general and administrative expenses
Selling, general and administrative expenses			(306,699	)			(247,533	)			(154,585	)			(128,176	)
Depreciation and amortization expense			50,507				40,489				25,442				20,710
Share-based compensation expense - Equity settled			26,714				24,995				14,399				13,865
Acquisition-related charges (a)			15,584				9,118				5,986				4,570
Adjusted selling, general and administrative expenses			(213,894	)			(172,931	)			(108,758	)			(89,031	)
Adjusted selling, general and administrative expenses as % of revenues			(18.5	)%			(17.8	)%			(18.5	)%			(17.9	)%
Reconciliation of adjusted profit from operations
Profit from operations			101,705				90,861				53,763				46,638
Share-based compensation expense - Equity settled			39,615				33,773				20,158				17,053
Acquisition-related charges (a)			32,880				21,142				14,736				10,727
Adjusted profit from operations			174,200				145,776				88,657				74,418
Adjusted profit from operations margin			15.0	%			15.0	%			15.1	%			15.0	%
Reconciliation of net income for the period
Net income for the period			83,718				73,412				38,658				36,993
Share-based compensation expense - Equity settled			39,425				33,749				20,077				17,029
Acquisition-related charges (a)			26,380				20,761				16,440				10,889
Tax effect of non-IFRS adjustments			(15,117	)			(13,660	)			(8,313	)			(6,053	)
Adjusted net income			134,406				114,262				66,862				58,858
Adjusted net income margin			11.6	%			11.8	%			11.4	%			11.8	%
Calculation of adjusted diluted EPS
Adjusted net income			134,406				114,262				66,862				58,858
Diluted shares			44,220				43,309				44,292				43,373
Adjusted diluted EPS			3.04				2.64				1.51				1.36

 

(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		Q2 2023				Q3 2023				Q4 2023				Q1 2024				Q2 2024
Total Employees			25,947				27,505				29,150				28,991				29,112
IT Professionals			24,163				25,575				27,116				26,933				27,133
North America Revenues %			60.6				58.9				57.4				56.0				56.3
Latin America Revenues %			22.0				21.6				22.9				22.9				23.0
Europe Revenues %			13.8				15.9				15.8				17.2				16.9
New Markets Revenues %			3.6				3.6				3.9				3.9				3.8
USD Revenues %			73.9				72.5				68.6				68.4				67.1
Other Currencies Revenues %			26.1				27.5				31.4				31.6				32.9
Top Customer %			8.8				8.7				8.2				8.3				8.3
Top 5 Customers %			23.7				22.5				21.4				21.8				21.0
Top 10 Customers %			33.3				32.2				30.8				30.1				30.3
Customers Served (Last Twelve Months)*			835				889				930				955				958
Customers with >$1M in Revenues (Last Twelve Months)			283				305				311				318				329

 

(*) 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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