HomeMost PopularGlobant's (GLOB) Q1 Earnings Meet Estimates, Revenues Up Y/Y

Globant's (GLOB) Q1 Earnings Meet Estimates, Revenues Up Y/Y

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Globant GLOB reported first-quarter 2024 non-GAAP earnings per share (EPS) of $1.53 per share, matching the Zacks Consensus Estimate. The bottom line increased 19.5% year over year.

Revenues in the quarter summed $571.1 million, beating the Zacks Consensus Estimate by 0.1%. Total revenues rose 20.9% year over year. The uptick was attributable to solid momentum across most of the business segments. Its top customer, top five customers and top 10 customers contributed 8.3%, 21.8% and 30.1% to net sales, respectively.

For the year ended Mar 31, 2024, GLOB catered to 955 customers. Among its clients, 17 of them generate more than $20 million in annual revenues. For the same period, GLOB had 318 clients that brought in more than $1 million of annual revenues, up 15.2% from the year-ago level.

During the quarter, GLOB partnered with NVIDIA. Uder the terms of collaboration, GLOB will integrate NVDAโ€™sย  AI technology with its enterprise AI platform.

Globant S.A. Price, Consensus and EPS Surprise Globant S.A. Price, Consensus and EPS Surprise

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

Segmental Details

Revenues from Media and Entertainment (21% of net sales) were up 13.9% year over year to $119.73. The expansion was due to higher revenues from its biggest client, the Walt Disney Company, which contributed 8.3% of total revenues, up 6.7% year over year.

Technology & Telecommunications revenues (10.9%) were down 0.9% year over year to $62.2 million.

Travel & Hospitality revenues (11%) soared 66.5% year over year to $62.6 million.

Consumer, Retail & Manufacturing (19.1%) grew 49.6% year over year to $109.1 million.

Professional Services (11.1%) were down 0.4% from prior-year quarter level to $63.2 million.

Banks, Financial Services and Insurance (17.9%) were up 18.5% year over year to $102.5 million.

Healthcare revenues (7.6%) rose 19.5% year over year to $43.1 million.

Revenues from Other Verticals tallied $8.5 million (1.5%), up 7.9% year over year.

GLOB generated 56% of its revenues from North America, primarily the United States, 22.9% from Latin America, the top contributor being Argentina, 17.2% from Europe, majorly Spain and 3.9% from New Markets, the top country being Saudi Arabia.

Other Details

Non-IFRS adjusted gross margin was 38% compared with 38.2% a year ago.

Non-IFRS adjusted profit from operations margin was 15.0%, down from 15.1% prior-year quarter.

Adjusted net income for the period was $67.5 million, up 21.9% year over year.

Balance Sheet

As of Mar 31, 2024, GLOB had cash, cash equivalents and short-term investments of $237.5 million compared with $323.3 million as of Dec 31, 2023. The downtick was due to partial repayment of credit facility and numerous M&A earnout payments.

Outlook

For the second quarter, the company projects revenues in the band of $585-$589 million, or 17.6% to 18.4% year-over-year growth. Adjusted profit from operations margin is anticipated to be in the range of 14.5-15.5%. Adjusted diluted EPS is expected to be in the range of $1.47 to $1.52

For full-year 2024, management projects revenues in the band of $2,405-$2,440 million, suggesting 14.7% to 16.4% year-over-year growth. Adjusted profit from operations margin is estimated to be in the range of 14.5-15.5%. Adjusted diluted EPS is estimated to be in the range of $6.20 to $6.50

Zacks Rank

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

Performance of Other Companies

BlackBerryโ€™s BB fourth-quarter fiscal 2024 adjusted earnings of 3 cents per share beat the Zacks Consensus Estimate by 200%. The bottom line improved from the prior-year quarterโ€™s non-GAAP loss of 2 cents per share.

BB has lost 44% in the past year against the sub-industryโ€™s growth of 30.5%. In the last quarter, it delivered an earnings surprise of 200%.

Blackbaud BLKB reported first-quarter 2024 non-GAAP earnings per share of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.

Shares of BLKB have gained 8.3% compared with the sub-industryโ€™s growth of 30.5% in the past year. In the last quarter, it delivered an earnings surprise of 9.4%.

Cadence Design Systems CDNS reported first-quarter 2024 non-GAAP earnings per share of $1.17, which beat the Zacks Consensus Estimate by 3.5%. However, it decreased 9.3% year over year.

In the past year, CDNS has gained 33.2% compared with the Zacks sub-industryโ€™s growth of 30.5%. It currently has a long-term growth expectation of 17.8%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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