Exhibit 99.1

 

 

May 15, 2025

 

Globant Reports 2025 First Quarter Financial Results

 

•First quarter revenues of $611.1 million, up 7.0% year-over-year
•IFRS Diluted EPS of $0.68 for the first quarter
•Non-IFRS Adjusted Diluted EPS of $1.50 for the first quarter

 

LUXEMBOURG / May 15, 2025 - 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, 2025.

 

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

 

First Quarter 2025 Financial Highlights

 

•Revenues rose to $611.1 million, representing 7.0% year-over-year growth.
•IFRS Gross Profit Margin was 34.9% compared to 35.4% in the first quarter of 2024.
•Non-IFRS Adjusted Gross Profit Margin was 38.0% compared to 38.0% in the first quarter of 2024.
•IFRS Profit from Operations Margin was 8.2% compared to 8.4% in the first quarter of 2024.
•Non-IFRS Adjusted Profit from Operations Margin was 14.8% compared to 15.0% in the first quarter of 2024.
•IFRS Diluted EPS was $0.68 compared to $1.02 in the first quarter of 2024.
•Non-IFRS Adjusted Diluted EPS was $1.50 compared to $1.53 in the first quarter of 2024.

 

Other Metrics as of and for the quarter ended March 31, 2025

•Cash and cash equivalents and Short-term investments were $120.2 million as of March 31, 2025. As of March 31, 2025, we had a total amount of $285.0 million drawn from our credit facility.
•Globant completed the first quarter of 2025 with 31,102 Globers, 29,022 of whom were technology, design and innovation professionals.
•The geographic revenue breakdown for the first quarter of 2025 was as follows: 55.5% from North America (top country: US), 19.6% from Latin America (top country: Argentina), 18.2% from Europe (top country: Spain) and 6.7% from New Markets1 (top country: Saudi Arabia).
•Globant’s top customer, top five customers and top ten customers for the first quarter of 2025 represented 8.8%, 20.0% and 29.1% of revenues, respectively.
•During the twelve months ended March 31, 2025, Globant served a total of 1,004 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 341 accounts generating more than $1 million of annual revenues, compared to 318 for the same period one year ago.

 

 

 

 

1 Represents Asia, Oceania and the Middle East.

 

 

 

 

•In terms of currencies, 67.2% of Globant’s revenues for the first quarter of 2025 were denominated in US dollars.

 

“Globant’s spirit of building and reinvention is stronger than ever. We are largely focused on AI-related opportunities, and assisting our clients in transforming their respective businesses and leveraging technology to drive growth and competitive advantages. Our comprehensive growth strategy unites our 100-squared client-centric vision with our industry-specialized AI Studios and subscription model. This strategy is powered by our AI Pods and the Globant Enterprise AI platform, which we believe positions Globant as the only player in the industry with such a comprehensive offering. With a robust pipeline and expected sequential growth for Q2, we are not just navigating the future; as builders, we are actively creating it, reaffirming our commitment to lead the next wave of technological transformation,” said Martín Migoya, Globant’s CEO and co-founder.

 

“Globant reported Q1 2025 revenues of $611.1 million, a 7% year-over-year growth. In a complex macroeconomic environment that impacted spending from our customers, we delivered healthy margins and profitability, with adjusted diluted EPS of $1.50. Moving forward, while we must navigate the uncertainties of the current global economic environment, we will continue to be laser focused on margins, cash flow and capital allocation, ensuring Globant delivers shareholder value while capitalizing on future growth opportunities,” explained Juan Urthiague, Globant’s CFO.

 

2025 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 2025:

 

•Second quarter 2025 Revenues are estimated to be at least $612.0 million, or 4.2% year-over-year growth. This expected growth includes a neutral FX impact.
•Second quarter 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%.
•Second quarter 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.52 (assuming an average of 45.7 million diluted shares outstanding during the second quarter).
•Fiscal year 2025 Revenues are estimated to be at least $2,464.0 million, implying at least 2.0% year-over-year revenue growth. This expected growth includes a neutral FX impact.
•Fiscal year 2025 Non-IFRS Adjusted Profit from Operations Margin is estimated to be at least 15.0%.
•Fiscal year 2025 Non-IFRS Adjusted Diluted EPS is estimated to be at least $6.10 (assuming an average of 45.8 million diluted shares outstanding during 2025).

 

 

 

 

Shareholder Letter, Conference Call and Webcast

 

A shareholder letter will be available on the Investor Relations section of Globant’s website. Martin Migoya, Globant’s Chief Executive Officer & co-founder, and Juan Urthiague, Chief Financial Officer, will discuss the results in a video conference call beginning at 4:30 pm ET. This will be followed by a live Q&A session where they will be joined by Patricia Pomies, Chief Operating Officer; and Diego Tártara, Chief Technology Officer.

 

Video conference call access information is:

https://more.globant.com/F1Q25EarningsCall

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 31,100 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 IFRS Accounting Standards 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” or 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 Accounting Standards. 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, 2025 and December 31, 2024 and its condensed interim consolidated statements of comprehensive income for the three months ended March 31, 2025 and 2024, 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, 2025   March 31, 2024 
         
Revenues   611,085    571,078 
Cost of revenues   (397,855)   (368,857)
Gross profit   213,230    202,221 
           
Selling, general and administrative expenses   (161,695)   (152,114)
Net impairment losses on financial assets   (1,679)   (2,165)
Profit from operations   49,856    47,942 
           
Finance income   945    1,125 
Finance expense   (9,627)   (7,269)
Other financial results, net   1,100    5,074 
Financial results, net   (7,582)   (1,070)
           
Share of results of investment in associates   (17)   (14)
Other income and expenses, net   (3,271)   10,011 
Profit before income tax   38,986    56,869 
           
Income tax   (8,491)   (12,940)
Net income for the period   30,495    43,929 
           
Other comprehensive income, net of income tax effects          
Items that may be reclassified subsequently to profit and loss:          
- Exchange differences on translating foreign operations   29,089    (18,608)
- Net change in fair value on financial assets measured at FVOCI   —    125 
- Gains and losses on cash flow hedges   10,158    (8,755)
Total comprehensive income for the period   69,742    16,691 
           
Net income attributable to:          
Owners of the Company   30,635    45,060 
Non-controlling interest   (140)   (1,131)
Net income for the period   30,495    43,929 
           
Total comprehensive income for the period attributable to:          
Owners of the Company   67,724    19,009 
Non-controlling interest   2,018    (2,318)
Total comprehensive income for the period   69,742    16,691 
Earnings per share          
Basic   0.70    1.05 
Diluted   0.68    1.02 
Weighted average of outstanding shares (in thousands)          
Basic   44,057    43,103 
Diluted   45,182    44,071 

 

 

 

 

Globant S.A.

Condensed Interim Consolidated Statements of Financial Position as of March 31, 2025 and December 31, 2024

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

 

   March 31, 2025   December 31, 2024 
ASSETS          
Current assets          
Cash and cash equivalents   114,004    142,093 
Investments   6,151    13,992 
Trade receivables   633,205    605,002 
Other assets   41,729    20,420 
Other receivables   73,034    53,939 
Other financial assets   7,427    3,100 
Total current assets   875,550    838,546 
           
Non-current assets          
Investments   2,304    2,212 
Other assets   3,510    4,750 
Other receivables   35,407    40,784 
Deferred tax assets   83,966    80,811 
Investment in associates   1,631    1,648 
Other financial assets   43,956    41,403 
Property and equipment   150,841    154,755 
Intangible assets   346,485    356,694 
Right-of-use assets   117,497    122,884 
Goodwill   1,579,866    1,553,796 
Total non-current assets   2,365,463    2,359,737 
TOTAL ASSETS   3,241,013    3,198,283 
           
LIABILITIES          
Current liabilities          
Trade payables   104,854    114,743 
Payroll and social security taxes payable   241,609    239,440 
Borrowings   1,393    1,601 
Other financial liabilities   159,495    163,027 
Lease liabilities   27,474    29,736 
Tax liabilities   20,631    36,916 
Income tax payable   3,873    6,520 
Other liabilities   468    231 
Total current liabilities   559,797    592,214 
           
Non-current liabilities          
Trade payables   2,925    2,006 
Borrowings   285,768    290,935 
Other financial liabilities   115,077    132,300 
Lease liabilities   87,475    87,887 
Deferred tax liabilities   28,989    29,611 
Income tax payable   12,949    6,625 
Payroll and social security taxes payable   3,742    5,187 
Provisions for contingencies   22,200    18,169 
Total non-current liabilities   559,125    572,720 
TOTAL LIABILITIES   1,118,922    1,164,934 
           
Capital and reserves          
Issued capital   52,914    52,837 
Additional paid-in capital   1,211,952    1,193,029 
Other reserves   (107,667)   (144,756)
Retained earnings   893,456    862,821 
Total equity attributable to owners of the Company   2,050,655    1,963,931 
Non-controlling interests   71,436    69,418 
Total equity   2,122,091    2,033,349 
TOTAL EQUITY AND LIABILITIES   3,241,013    3,198,283 

 

 

 

 

Globant S.A.

Selected Cash Flow Data

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

 

   Three Months Ended 
   March 31, 2025   March 31, 2024 
Net Income for the period   30,495    43,929 
Non-cash adjustments, taxes and others   73,625    54,902 
Changes in working capital   (88,429)   (88,131)
Cash flows from operating activities   15,691    10,700 
Capital expenditures   (21,405)   (15,537)
Cash flows from investing activities   (26,489)   (16,920)
Cash flows from financing activities   (16,980)   (75,326)
Net increase/decrease in cash & cash equivalents   (27,778)   (81,546)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Globant S.A.

Supplemental Non-IFRS Financial Information

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

 

   Three Months Ended 
   March 31, 2025   March 31, 2024 
         
Reconciliation of adjusted gross profit          
Gross profit   213,230    202,221 
Depreciation and amortization expense   11,156    7,433 
Share-based compensation expense - Equity settled   7,690    7,142 
Adjusted gross profit   232,076    216,796 
Adjusted gross profit margin   38.0%   38.0%
           
Reconciliation of selling, general and administrative expenses          
Selling, general and administrative expenses   (161,695)   (152,114)
Depreciation and amortization expense   29,655    25,065 
Share-based compensation expense - Equity settled   13,385    12,315 
Acquisition-related charges (a)   6,567    9,598 
Adjusted selling, general and administrative expenses   (112,088)   (105,136)
Adjusted selling, general and administrative expenses as % of revenues   (18.3)%   (18.4)%
           
Reconciliation of adjusted profit from operations          
Profit from operations   49,856    47,942 
Share-based compensation expense - Equity settled   21,075    19,457 
Acquisition-related charges (a)   19,605    18,144 
Adjusted profit from operations   90,536    85,543 
Adjusted profit from operations margin   14.8%   15.0%
           
Reconciliation of net income for the period          
Net income for the period   30,635    45,060 
Share-based compensation expense - Equity settled   21,019    19,349 
Acquisition-related charges (a)   27,957    9,940 
Tax effect of non-IFRS adjustments   (11,776)   (6,804)
Adjusted net income   67,835    67,545 
Adjusted net income margin   11.1%   11.8%
           
Calculation of adjusted diluted EPS          
Adjusted net income   67,835    67,545 
Diluted shares   45,182    44,071 
Adjusted diluted EPS   1.50    1.53 

 

(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 2024   Q2 2024   Q3 2024   Q4 2024   Q1 2025 
                     
Total Employees   28,991    29,112    29,998    31,280    31,102 
IT Professionals   26,933    27,133    27,927    29,198    29,022 
                          
North America Revenues %   56.0    56.3    55.7    55.2    55.5 
Latin America Revenues %   22.9    23.0    21.8    20.4    19.6 
Europe Revenues %   17.2    16.9    17.6    17.7    18.2 
New Markets Revenues %   3.9    3.8    4.9    6.7    6.7 
                          
USD Revenues %   68.4    67.1    66.6    64.8    67.2 
Other Currencies Revenues %   31.6    32.9    33.4    35.2    32.8 
                          
Top Customer %   8.3    8.3    9.1    9.1    8.8 
Top 5 Customers %   21.8    21.0    21.0    19.8    20.0 
Top 10 Customers %   30.1    30.3    30.1    29.3    29.1 
                          
Customers Served (Last Twelve Months)*   955    958    969    1,012    1,004 
Customers with >$1M in Revenues (Last Twelve Months)   318    329    331    346    341 
                          

(*) 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:

Gregorio Lascano, Globant

pr@globant.com

+1 (877) 215-5230

Source: Globant