Globant (GLOB) 19 Feb 212020 Q4 Earnings call transcript

Good day and welcome to Globant's Fourth Quarter 2020 Earnings Conference Call. I'm Amit Singh, Head of Finance and Investor Relations for the U.S. All participants on this call will be on listen-only mode. After today's presentation, there will be an opportunity to ask question. Please note this event is being recorded and streamed live on YouTube. have copy should release. the you now received of a earnings By

you is copy not, on If a investors.globant.com. available have our website,

today People Officer. Co-Founder Migoya, Urthiague, and are Executive Pomies, speakers Patricia and Juan Officer; Chief and Delivery Chief Officer; Financial Our Chief Martín

on I statements. to comments SEC. This the financial the and business IFRS subject and financial that call your uncertainties and we includes in questions. of begin you the are some in be outlook some statements. Such like our would Before today of answers remind follow may described to that risks company's other as statements our we the rules accounting our forward-looking filings Please release to deemed earnings and with the note

report the call compare or how the today, which is internally will in track to easiest way our peers measures, industry. we we our adjusted performance and to non-IFRS Globant During

find end a of will this non-IFRS press Martín to website and I’d on Investor quarter's IFRS published turn the results. announcing over CEO. now we Relations of You Migoya, to call our like at the reconciliation the measures our release

hello, Amit, everyone. Thanks, and

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strong demand ahead. pipeline to a see continue healthy We and

happen. it much. and hand our XXXX please financials. you we'll For With to make our keep Juan to very applying CFO go talent beyond, Urthiague, to them into it I'll that the and help over thank Juan,

you and everyone. staying are Thanks, Martin and safe. hope all I doing afternoon, well good

of first results year the summarizing and by the then our start fourth XXXX. discuss me quarter guidance quarter XXXX. the Let year full will I our and for full

and performance. announce are another of pleased strong revenues quarter record We very to financial

expectations, for QX a a healthy revenues representing currency. in reflected showing of our end In QX revenue On QX second basis, million, witnessed the increased strong with stabilized the constant growth. the $XXX.X Our overall sequential line XX.X% XX.X%, a in is was largely and QX. our XX.X% in and quarter, have revenue amounted the growth solid to an year-over-year which sequential in then, improvement trend. year-over-year since second revenues for demand environment our half we growth QX both in markets

lockdowns due our still and of incremental parts the While witnessing in still have remain the US. the not is said, about we to LatAm end currently new pandemic impact market impact potentially results. any on cautious ongoing, like waves any the are COVID-XX did do we Europe, some ones of it to QX That our

very encouraged we and positive bookings. in the demand post ongoing remain the crisis environment our trend However, about COVID-XX bullish the by are

discussed delivery of earnings and to home, our seamless to always work maintaining customers. services As employees employees of we in our safety and all our our from prioritize of continue almost the previous health while call,

and Our Disney XX.X% high. and customer to innovative XX.X% at productivity the people our delivery very and quarter-over-quarter. was for develop to strongly largest year-over-year employees' strong keep teams and continue execute and growing quarter, morale initiatives

services year-over-year fourth our of revenues XX.X% the very be from a during of we in its accounts robust collectively year. a quarter, business Other over at the at five with within to at than rest the majority Disney, solid respectively cross-sell Disney, to acquired continue accounts continued Outside grew quarter-over-quarter, we and experienced XX.X% XX.X% we and rate companies XX diversified quarter industry XXXX. strongly of the of We top top units. of serving verticals. rest Disney improvements XX.X% successfully also collectively of increasing as well the most grew with during Moreover, accounts

customer displayed quarter XX% revenues. improvement XX.X% numbers five one, for QX XX.X%, last with top representing Our concentration to and and XXXX XX top the top compared our of accounts

are industries of clear offerings terms at proposition verticals remain industry and exposure. our Globant's service it Looking attractive by value balanced all that we enterprises of revenues verticals, is and in to diversification across

revenues, and and revenues and three top for verticals XX.X% entertainment with Our media revenues. XX.X% banks, of and services industry insurance the XX.X% with were quarter with of of retail manufacturing financial consumer

customers we XXX-Squared million strategy, the revenues we same months annual more of XX said, with our some impact XXX our This the compared during year XX $X growth. of hurt the progress continuous XXX for with travel That to from December year. our accounts accounts ended expand pandemic. annual to than Overall, XX for COVID-XX the period ago. our had we million continue of accounts key the Regarding one by our in relationships compared last XX, had XXXX accounts the base last $XX to above reflects revenues

and revenues America Europe. regions, fourth in XXXX witnessed in on in COVID-XX strong we X.X% and basis. the the XX.X% hospitality and and travel To Also growing In year-over-year quarter sequential year-over-year XXXX continued geographic our from strength revenues, in North of others was sequentially. Latin XX.X% terms America were the XX.X% primarily America, of of Europe, were of show and at majority growing and America. Latin impact acceleration in In the others XX.X% during XXX.X% a in at North note, a in XX% vertical

dollars to currency quarter against denominated the XX.X% revenues top our providing XXXX, in fourth were protection fluctuation. our good During US of of line

to now Turning profitability.

representing million quarter XX.X% increased representing margin fourth a by utilization. gross margin, gross the period gross lower profit XXXX. adjusted compared gross adjusted in million $XX.X mainly to for slightly XX.X% Year-over-year decline adjusted to adjusted margin Our of $XX the is explained

the fluctuations. margin gross pickup innovation We offset Globers, helped design FX However, and on a technology and XX,XXX strong and finished of with quarter by relatively were basis professionals. sequential which demand, stable adjusted points, by XX increases utilization basis, salary XX,XXX in improved partially

were We XX% in IT around as to strong of IT strong X,XXX us. a fulfill up the professionals we front professionals our year-over-year robust in sequentially. of with continued hiring demand QX addition prepare

hiring invested a ability last robust globe, At finding this to has years, us meet training the gives talent few up moment, the training ramp heavily strong and Over required. foresee Globant infrastructure in a establishing demand. which as across don't we challenges hiring in seamlessly the right the and any to

Attrition XXXX with largest the most in talent past months In centers. IT XX.X% professionals QX increase XX QX improvement our in fact, organic the we continued in development compared a at history. during low achieved XX%, significant for to in

we in quarterly XX attrition compared our the Adjusted a discussed rate decrease points forward and SG&A basis the previous QX Globant. to level of XX% As as year-over-year. XX.X% for XX going decrease to normalized at XX% earnings of basis XXXX calls, view a came revenues, of points

investing the focus our We in the also primarily COVID-XX efficiently for capture for and our maintain in this vast will profile. helps coverage us believe us services, a expand markets, global target the help We sales mainly Europe. long-term continued to post strong future our crisis, growth revenue especially demand

margin compared or income sequential to As amounted the On our fourth for operating adjusted the points. a for a of $XX.X or of quarter XXXX. $XX.X XX.X% improved of result, million, revenues to XXX basis, XX.X% revenues adjusted million basis operating quarter

and revenues period quarter Together million, as of the same the is that mainly a X.X% leads same the of strongly us for our retention on improve, time, impact as the our for believe range As to to it total margin near in midterm. the in of trend advantage period Finance adjusted the related the was the the taking granted to in company long-term last will compared executive to to profile will and fourth the huge XX% front expense key margin. part in X.X% representing certain we adjusted the plan this $X of XXXX operating Share-based opportunity year. invest in of This to for plan. us. positive our continue XX% of were growth $X.X units operating directors of continues compensation to will million stock revenue and have restricted At company expenses utilizations net borrowings. interest of assets liabilities to gain year. expenses for is loss and liabilities $X.X of strategies on fourth period on million expenses local financial to of million the other a monetary our quarter, $X.X from million to the quarter and $X.X hedging item in XXXX $X.X our from million figures. with value fourth gain the This of This the of during and our last we associated were amounted of composed in transactions currencies compared consideration, a of expenses million primarily and income a from recorded quarter removed of for bonds. gains the the In and with FX result mainly related loss Approximately is results, the fair acquisitions, from composed were adjusted net. one results fourth compared contingent to $X.X interest same quarter XXXX. lease Other of

XXXX. development Our adjusted with million to for $XX.X guidance taxes a income based million million, shares diluted representing quarter tax a one net of income to adjusted margin, Adjusted in XX.X%, based totaled compared of by our quarter talent the XXXX that basis million $X.XX quarter. new diluted of basis the of compared quarter IFRS net for quarter year above for representing On XX.X% fourth for EPS of the sequential $X.XX XX.X% was higher-than-expected quarter regulation our the on shares fourth the retroactive effective the fourth margin XX.X income impacted the net diluted by net for income for Adjusted was rate average XX for $XX.X main centers. adjusted average on coming XX effect increased the margin points. quarter

on to Moving the sheet. balance

amounted December Our to $XX $XXX.X cash XX, million, while as of amounted million. and investments XXXX to borrowings

free million COVID-XX cash XX% generated years. free $XX.X net we million, despite environment cash healthy solid Full the acquisitions paid $XX.X for quarter, generation, credit last a of around of line was year free fourth XXXX flow year flow $XX and facility. and cash flow repaid the million During with our adjusted ongoing was two the to income our for in

to successfully We acquired allocation also companies integrations planned. as capital on execute of continue recently going with strategy

full revenue very $XXX.X were of one year-over-year macro Globant highest the due performance. pressure witnessed about which in started talk strong the a uncertainty we XX%-plus during QX, revenues to XXXX pandemic. in growth. times. for faced year recent a year-over-year XX.X% COVID-XX a delivered year let's but We the Now, on our levels million, XXXX of Revenues implying XXXX growth in robust footing, solid in

corporations has However, bookings industry and for since by proved up. across then been trending the the This are the verticals. services digital extremely that provided has growth revenue year profile Globant critical of

to Our and for XX.X% basis the adjusted decrease XXXX client million some to services the cross-selling This on or XXXX XX was profit recently the concessions of acquired last in compared compression M&A accounted due SG&A adjusted for to our are impact Adjusted deals strongly with gross a for in or Adjusted gross of $XXX.X selective companies. of points part year XXXX XXX price increasing margin the we temporary compared our to points successfully XX.X% impact $XXX.X revenues revenues. this for utilization, COVID-XX COVID-XX XXXX revenues year. also our of lower year-over-year. of early due million the margin performed of basis to was full year primarily XX.X% gross form some and impact margin

of operations XX.X% for XXXX, million basis a impact XXX profit driven decrease of XX% primarily to year in points million margin invest or representing profit front for from the operations margin the last to $XXX of continue COVID-XX. and from During Adjusted operations adjusted profit was we adjusted XXXX significant capture opportunities by or from to compared us. $XXX

pool pressure in not which As the to the Share-based top million as employees normalize. part XXXX demand lay $XX.X environment during allowed a you this in COVID-XX and revenues X% representing compared to year, higher-than-normal amounted growth decided to to talent started line off compensation revenues its million, $XX.X of representing turn the expense of its accelerate remember, Globant response from XXXX. to kept of for X% for to company the early

explained million for As loss borrowings. loss target. Other interest compared net our this year. and our composed results million liabilities full for on to by in million $X.X last was gain incentive is of year This a XXXX. from results financial mainly interest long-term and local a results expense line the from mainly the $X.X Finance the and to were to composed million lease expenses strategies year expenses bonds. expenses during with and compared before amounted $X.X liabilities in of our primarily is driven program $XX.X monetary of of on for transaction hedging assets FX This from item currencies gain with is XXXX

of a and mainly our This of associated $X.X the was in related recorded fair expenses we million the other with to XXXX During of income re-measurement acquisitions. contingent loss net. value consideration

above, item of line from adjusted transactions impact M&A comes this majority the Given mentioned as non-IFRS that is measures. from our this

the was to the year talent would adjusted for last rate net for million above or coming was EPS net diluted $XX.X higher-than-expected diluted primarily of or effect compared Adjusted retroactive regulation one a I margin on full year. last tax income compared XX.X average for main based To to shares $X.XX our the for for year effective $XX.X IFRS like XXXX wrap up, taxes XX% based the margin in share year with was centers. Adjusted by and $X.XX XXXX diluted XXXX. for year XX.X% shares. on XX.X% million the impacted with development QX for net adjusted XX.X Our to for outlook our you average million of new income the our million income guidance

year Based be to full expect XX.X million is we $XXX XXXX. XX% least to average assuming we diluted to do decided accurately may note our adjusted for expect COVID-XX $X.XX reinstate At be not the current expected be on the revenues. XXXX expected be the QX predict trend XX% demand revenues we not at to million growth. including operating given least to guidance range able impact our year-over-year of to there point, ongoing although environment XX.X% outstanding visibility, we number pandemic which factors quarter any have or quarter. the margin a EPS We that and are to QX this is first adjusted shares diluted at FX in throughout

we at full We least to impact Regarding $X.XX XX.X% our assume no currently growth. or billion year year the year-over-year be revenues. full to XXXX XXXX, expect FX revenues

the is For expect IFRS effective stable the margins coverage. XX% expand to end XXXX, we technologies sales our largely we rate in our while adjusted cutting-edge range invest range operating the in we to QX XX% expected full this At be year the programs, to continue training and in be towards tax in to point, lower XX% XX% to for both of XXXX this the XXXX. and expect rate range. tax

$X.XX full outstanding for diluted XX.X coverage for and call year diluted assuming adjusted in our participating expect to EPS support. year. Thanks full everyone least XXXX the the at the million be we average shares for your Finally, for

Thank you, Martin. Thank you, Pato. Juan. you, And thank

you’ll to turn At be your this and go and your ask questions. your mute you’ll on is to after unmute call, be point, the we as section So I that name. Please camera, will done. able announce your to line ask your your question-and-answer of question

We please question one follow-up. you time and you. to also to Thank limit one your ask

Tien-Tsin line ahead. question comes of from from JPMorgan. first the today Please the Huang So go

virtually. guys. all to see me, to okay? Hey, Can you Good Perfect. hear

quarter. the double-digit was expecting like in double-digit again to impressive well quarter. in I So sequentially you're as wanted fourth first the looks and it growth that Disney obviously,

the Is drive a it it terms a of growth? more view how of to some your curious put just and So this my about question curious, what Juan in and ask Martin your Is on continuation curious. potential you obviously, key I'm differently you this year together focused from year be would how -- more different your did I'm it for always accounts versus broad-based? ago. of about lot I'm outlook but very last what outlook some you visibility, is you just thinking I in year this mind?

format. How nice have are Sure. in new really you this to Really Tien-Tsin?

Yes. I like it.

sector much and of the as of us to of company. that Disney we across not demand desire that every board. growing. that have digital demand to company kind said and see on coming seeing, every board I this like we and every from across others it's pretty -- pushing have Or and demand growing helping go companies that's -- And be turned industry the the the in to thing on the I mean, and turned -- not Look in new reality triggered are to every

it's would say This said hospitality doubling past our a not sector and the are see sector, on kind the on the still I saying, is not the I with airline ad you sectors specific before, other we and say down the sector, when on to see We see could are moment And entertainment fast. the that from LatAm okay. would of like automation those things. on sector, way one them are to So very, I in to -- the operate them demand as because all recovery finance remend very the still general. sector. even But the call, mention my companies need we earnings helping tech separated sector. see in sector, need on I all you

digital sectors make those taking advantage not or now, in the and of moment even see we So blooming this that happening are investments transformation. to growing not

Yes.

growth cetera? sort acquisitions, around internally more and year to the as the acquisitions similar the of for to thinking in this focus to the et from is seeing question focus organically, of satisfy do moment do way client a and potentially some you Or this about base? see So of you're you potential more follow-up a of my

has the did team did we a in new is an never have like landscape thing acquisitions the very pushing with been they're couple growth is Organic amazing interesting year. pushing we this We interesting. one of saw -- into Bluecap pretty They that which us before, Barcelona. like main and

and for us. is out see business sense this have time have this is inorganic we you generates been have a keep It's So has tools And obsession need tools doing at something there. great, you pretty front we'll said their a our And really that like the competing the effective development a our -- we're pretty good, to customers, Globant and up things growth in great But I on That day adding outlook that continue need really all are tool that into need front portfolio how make the to great. in growing of. keeps through fact the we to that more we for will if how keep every we game. night me of on year to with to that. win is competitors I'm space, guys of pretty new each And become will unheard being the as see to good, for organic customer. against

approach, And to organic. already that expectation as we're COVID just of on that starting still the prudent The keep still see And the to that going Tien-Tsin guiding that. year the number think -- taking XX% course, throughout the improving recovery Of just next it in organic a organic around. approximately the year, the been growth pandemic. is maybe is right? on Yes, after top growth are the we case organic add for to growth has we But we continue since is embedded amazing. is QX year because

you. Yes. No, Well-done guys. impressive Its and thank

much, Tien-Tsin. Thank very so you

next of going line come Cowen. the Bergin from ahead. question on to please go Bryan Bryan, is The

evening Good ask and afternoon. on workforce Guys. here. to the I Hi, good wanted

still Are like So, And on take Can on even you sequentially, also Bluecap regions regions, the how or about, that XX% in thinking you're be to adding XX% looks of evolution are where under in headcount - or headcount? key assumption comment up gets you're the out they're adding we on how centers if virtual more the how you going base. the delivered? a billable you work it the of kind model? of

And I can comment the take want you Martin, Maybe part. if to then, on that. first

keep our in our strong. ramp up for be the Bryan. we strong. market year terms we once improvement we And to in decisions keep continuous building as in we that to ended and We're And on people few in calls, the -- a company, back lot the very you course shop in been record question, thank the hiring. So discussed, a all our have December the recover had seen, of history, revenues is We have ramp very designers. over in of very, demand the up our hiring engineers was what would a the and last quite terms and growing we India. of to ready are to to key one brand demand the Yes, QX of in

very same. We there stayed happen. we challenge to in growing The make able And more all traction Mexico we or on the are other there. and while it the was also Brazil Mexico improving. Then a well keep a right? for as countries seeing less were operation keeps Brazil good and and

grew absolute of balanced global, a with but becoming percentage All company. in our numbers. US still speak. revenue number. good scale. customers more more very we decreased Argentina And much after you the operations little very EMEA. for And We're look portfolio larger of in regions have a America other we're this going a good bit, also we in request are our global a of you in traction getting that Latin deals are year customers total And course, with deals you a an at as in them a global right? global, the as headcount traction when more When and absolute in you also for leading global see start grew the but breakdown

to... difference Eastern want growth mean more Continental and much not there. So everywhere. India from Martin from the and -- I you if know, or don't expect coming you pretty also I much Europe Pato, more want if should coming US growth you to Europe

No.

forgot listening, think question, the I second after the question. I

Yes.

Sorry.

answer the sorry. listening Now,

the go headcount as go back model this Yes, a to as as they're future far hiring going globally? workers you're doing and centers. the for you're hybrid the assumption under you Are adding remote more of delivery to

to want it, you Do take Pato?

we take is our still we specific mean home. and to well putting today from are as care I I we you of if start of our client are prepared But that, there are taking course, or course need we whenever, any working Globers have I they any there. needs this. are know mean, first Yes, can offices that. and of --

mean problem working So still framework I that our growing and I productivity is great. are working home higher mean from a still there. the than have we we ever is

So line of also this I partner mean the quality with on I pandemic of have able our our our the times. in mean, is days. we these delivery, clients I to clients been top mean,

a keep are it that is year on strong we think working really to I from home. prepared demonstrated So

protocol care there Of course on that clients the course, COVID them. if all have need mean of is any something any of the have special specific I to take we office need we

Okay. got And adding two has capita we look as you've that as headcount quick years, come here, numbers the at in revenue you're lot just noticed and a follow-up last a per down. we've the

So I'm you're just you think so employee how per through as as XXXX? much considering trying And how worker productivity? to into XXXX about walk trend of kind adding and billable should are metrics you

Yes. one. Thank you that Bryan, I'll take

number. the impacting factors of head combination per revenue a there's So

XX% now, look time. at, if were Globant the one compared on-site you On that the XXXX about at teams side, to in back

close getting much driven Now in our pretty slightly basically lot we That locations. type cases, in most typically from right? of way between were a that we Keep So they lower comes our value in we near at They that, and very rate. very have very projects shore X% the was by a were same mind to good -- were good customers a are than getting getting demand are time customers. that and zones a they X%. delivered

game this don't or discussed mind Keep that of and our to It definitely or we to we large training We -- more them on some people internal augmented in seeing before XX.X% we in want after quarter. money this thing huge changer, finally -- on strengthened invest And like the But are was we believe again coding that that managed also projects that XX% Second we so prefer XX% quarter and having less to demand right? sorry that this be that XX% billed. range. XX.X% front. as and heavily need takes is stop and this some ready. people as COVID on investing Martin people margin could it's keep gross bringing that a

a forward with -- an even what we So our able number. improvement. do to with keep see slightly is revenue going gross the margin in share we And margins per lower were that now

into the rest that coming revenue we off. starting some revenue we We as of year, again pay lead margins per that at are eventually some look see the to take -- investments definitely do for a projections starting of now when we care are the you for And and about those higher But of QX will to we seen back industry game see know the if several as want we these how pretty bit. anything the that's last investments add and has And also you invest years, in you've but know I again to but number don't us Martin little over the a believe head. we much future. to come that's that down changers need in are it. why

as revenue the combination several changed. that said, onshore there's mainly onsite coming because down factors of onshore to is the say Juan -- per head mainly offshore Juan Yes. basically sorry but --

on And for then showed little we that without and was coding is coverage are As capital perfectly like like model a that also head. things the and revenue the That site happen. the investing to working bit it largest the pandemic per was evolved taking future tools much we and component. the that. augmented effort make in some some some other That changed

-- maintained. the gross here little why to So being gets distorted, the that's important focus the margin thing on bit on is that number margin and that a but is

much of our business the So pretty same. is quality the

Bryan. much Okay. Thank you very

Next question.

Next Nolan ahead. go please question from Maggie Blair. Maggie, William

trends Juan that? any on share Hi, you can thank couple detail additional of a you there in you. times. bookings positive mentioned different Is

Sure. Yes.

restarting three We the during last year this this very investments. increasing level or about QX some the one. at QX. Then we So stabilization maybe COVID-XX hesitant point calls a we and saw is been the over with customers strong that to And with of the mentioning since continue The something saw a bookings then towards pandemic XXXX. impact of of QX. onwards were we've end see end of demand behaved that basically QX increasing

the end do they actually can pandemic. They size the and and rather pandemic of they terms can some of can than sure do realized of the see these they that the that that later. tunnel to them Now need they impact make the all they sooner light at in investments

make of that that So on keep situation where and strong sure but creates impacted, out And seeing has being to still that other showing is we industries is they been of lot momentum this once and a what opportunity. they get strong you're the want bookings. travel the all impacted ready sector are

it's to Martin companies, anything good from at retail to industries. in beginning that momentum payment with getting with multiple engage with digitally of be very coming these good momentum a able healthcare, financials, very insurance consumers. to momentum are the Very discussed companies as related e-commerce kind XXX% ready So good

know was in see the basically momentum travel though mind how to prudent very So be sector be that big we are to recovery are tailwind is need put become is us. demand of as right? kind to than so on going course. for a some still countries we But fast It's travel and a so complicated Even don't vaccine that's seeing are a some Maggie. situation coming. in will of distributed a also hopefully bit the forth. need again to -- at We point of and a for lot we and keep little a optimistic So where strong that others. some We more us

there add game mean the with mean, strong industry mention Juan entertainment we -- and media and I our partners mean on sector. a strong mean. a that pipeline Maggie I mean been relationship have I with to I there I Also the probably and also want to on I Also gaming having

have are mentioned training industries Globant our that ready Martin is kind as are quarter. when talent. initiatives of were -- to playing, we last initiatives that kind with mean Globers those -- those And been our that I the as the I University were really we mentioned of prepare because like ready mean before, so different has we also start

we needs client are on. ready the wherever us the demand So to keep

Maggie, right. sorry. muted, you All are

Surinder you Jefferies. from go very Thind Okay. from much. line the Thank please ahead. question next Surinder, of The comes

guys. Thanks,

that question. two-part to potential or a about balancing certain location? from every distributed anticipate to much little much, idea level given One kind in Can need up something you're locations scale to is can have centers up of expansion change workforce? delivery number XXX the location? more and And sense that versus location truly in of of bit there? trying for to a people pick work-from-home. have some of that the for a the in there the model Or Or you a delivery in following new delivery do in model an office a global of office you countries on idea minimum still So you headcount of number decision just or the talk there sort the just set centers maybe is a

yes. one that can means office and in will we that and are the have between more for much you, work-from-home Globers. that from new maybe. also then -- complement seat rethinking and this But each take want, Suri they space that And we general reality also one work if means more we office. question. Thank Pato of balanced the our won't per the any work Well, can I the

a new new for people. the much space is are have putting So we happening. putting offices lot space together more have for much past They huge And that with or mean, get meetings different like totally this They together be offices more place a are to what's is means together. of This the like us the I from reality. are that or dinner gives and flexibility. having meetings. more lunch we

which more we global is much more So too start doing the much message are that it's recruiting. a behind to us allowing it recruiting, global already

can city. to are can some to get with be we some will or places, those it if we going and them necessary together. will connected to need places have Now specific recruit presence many gather we more guys cities and some to to in -- And specific we so global country is those that even where them

having terms a specific new this how need on space a now a totally different happen the metrics up of will of need we'll but and open So although, we dynamics keep to city. in having office with presence, much

city a very new we open effort a was Now before different small with that can game. a totally up

that will I your question scale-up. you So think answers regarding how

for happening. about like we years. scale-up about Okay, truly looks this different its now because many, it many than And now before excited were looks this much I'm reality the new and dreaming

about that in also you forward COVID we the a expected guided Got and just what's conservatism from of the the in it past faster about still kind But the there, the in come when have here. guide sounded there's guide the on commentary and and question some talked guide you've because then look how some When above look quantify guys quarters of this in obviously conservatism of I -- guidance warrant lockdowns stuff. I provided the based you've that expectations just in and this the it. I versus than is can economy been past environment? you arguably How couple about maybe in stuff. improvement when That's a think things helpful. And

where last about high comfortable guiding rest you But where public the we still There as history been into there we where that numbers. selling we year, are QX Martin, still are the for one is issues. to are still if think based since some Today meeting I'll always level have Surinder, since look that very they want delivering guiding some services that I countries -- company is with right services, very the we the what a always. of uncertainty. has we're need we confidence take been -- feel historically Yes. to. when comfortable the XXXX. This have on -- very macro we we

Some Globant and grown to industries it a it's when still going not like it's clear with travel impacted is have lot of that the come exactly back.

tunnel, see then to try are at be what's about right of the the optimistic year end the happening. So be what year case we to progresses the which and seems the reinstate is we do we clearly as full light let's more prudent. And

the there are but update in the right? no doing risks XXX% guidance, will still of now are We unnecessary home. very us all bad. countries call And this when some the very, still is is numbers taking from point COVID in around,

we So point. this full update the taking we progresses. the right being the -- going year and feel approach at reinstating as step-by-step year approach will is that prudent guidance And a

Thank you. That’s very helpful.

Thank you covering also to one analyst is the the newest Surinder of Surinder. very much, our And names. Welcome family.

Thanks.

go line comes Next question from Diego, the Aragao Diego Goldman of ahead. from Sachs. please

Thank all. Hi. to Yes. good taking question. you Hello for Very everybody. my see

equation the to I your to want take for full FX understand or for because be first whether look, just you I right revenue make a maybe regarding messaging the because want I want here. follow-up contribution guidance to revenue got the by outlook, into Thank you. question especially should part year just considering that consideration we that not, XXXX, as of What's the here? sure So, growth region

we that and growing. Latin thing America first seeing Look is No. are Europe

You saw a the and last little growing of the had travel hospitality right, U.S. bit than a share because U.S. quarter, bigger the faster sector. the

growing So case, you and on faster. not and hospitality, the at we a If probably more similar EMEA pace. travel all America of the may the recovery that's would Latin regions see growing have depending

revenue the what actually than reports and dollar. talk a for be bit next seeing Now the there in that all smaller weaker. share other when dollars, about that are might from of dollar of the year, XX% currencies most so U.S. If in is is only denominated a FX macro we revenue about that you right, our of is little

for for it -- But teams in need positive revenue to the prefer anything set so on might bring. all the that FX to we if we pay deliver just this game. the at our revenue, number. and point, We don't dollars we impact dollar want side. So again We dollars, the be on we focus the targets the the

you much… you if muted Thank Diego you follow-up. very are a have

unmute Amit. here. was to trying Sorry I

So sorry that. for

should I may, if that mean, the look question related year-on-year, whether right understand instead the we scope which said, makes right? we clients of of the no coming of this consideration -- can clients Thank it's being especially is just -- significantly existing projects which growing like increase if number clients. existing the going I there to considering with the clients down we into is I number sense forward, But see new or be slightly what will clients just number and strategy between a to clients. within understand to your of to your second that not want take So balance just you.

question. Thank you, Yes. take that Diego. I'll

the more much end million it's we don't focusing going of lows, potential We And much. these which accounts XX-Square, So is they focus that to XXX-Squared maybe focus that significantly more they larger deal, number have you focusing in right? -- to want time a global large make evolution so small smaller the customers. on of total number we grow eventually, in on for very over to the place, $X on on the the over future. sometimes very potential selling we high $X companies important customers the the Globant up that basically to a that come do with as are of very, strategy have to million some opposed over and Every

still So high right a would million, XXX I be customers. number, and to if we in opposed think fine performing lot million But will the those $X sectors. the it I $X which goes looking at put more on how we fine down very above it's above that emphasis are is as total

you. Thank

very you Diego. Thank much,

Stanley. comes Cesar, question of Medina please. Morgan Cesar from next line the from Our

Hello.

your comment type Sorry Bluecap for engagement for what a us the can I that that and delay. you give Europe? bring could have was client if plans regarding to you -- the wondering, of

you the the risk knowledge thank Sure. and knowhow is like is to that side. very question. the for and analytics Thank table for of Cesar a you analytics The data joining on deep bringing Bluecap

have the different and to So that the the the have lose basically that customers. would amount types of the to different types provide clients assets about of is those group banks able able or of different they cohorts of banks the are and clients team these this with of predictions each that money profiles guys -- on of types of predictions clients performance of productivity of and

keep So course predict. these are to that that and then that of able analytic those access putting new And, products with what of with course, needs we data capability that on for projects. can will to technology using guys and predictions connect

Maite, getting do allow be what's let's those -- artificial going together and intelligence whole companies that we the of let's portfolios, the were prediction the do service on analysis, was, technology develop more efficient. to and when talking team let's the the use idea inside were So idea then banks the with and the financial understand to will the that okay, data

car Number cars. happens flights selling or it is initial, step the on number selling this selling happens when two kind say, would bring like many other The step same asset. you're tickets one online when to when It that of is a I Now together. you're doing in same sectors. you're to of or things or knowledge -- thing happens any

to go excites first first sector, the keep developing to these able So, -- which expand me to that and to to we financial together to develop the other to plan in to a ability knowledge, then on moment for that predict -- be sectors same things other same lot. industries,

rationale is this it. So pretty behind much the

and Got so the much, it. on Thank congratulations quarter. great you

safe. Stay you. Thank

safe. you. Thank Stay

Stay safe.

you, Amit. see Good to

much. very you Thank Stay safe.

for Steven comes Enders from from please KeyBanc. the line go Steve, final question the So of today ahead.

down bit taking I want I Thanks a investments, you're how with around expectations for thinking little is kind solution. guess your on augmented you're line? you're doing software the that that, new well look and the like and touch how what guess the chat your as as great. Okay, just the I of what about with thinking coding about the monetizing question. to go-to-market

have. sit instead things for Sure. important table, way. That differentiate I competition when with new is of to When day customers investment I down when offering monetize in for we way mean the and and the say, customers, front the okay, our us that's are that. is able at being are we old extremely critical. to of we we And competing, we every the in of doing doing reinvention, me, the our our the in this way, a competing amazing we're things as said, front and first

one thing it already now. one we're that doing So way that's -- that's monetize it to

these guys it will that happens expand is using it certain what or and to other use Now, it We and have will we'll them a independently they to it or some same on month, money to for if be it amount use will be user be in this use want the platform. money connected happy per for our services. want per And to of other project for charging fee very with be that that engineers a that projects?

as the thinking. two XXXX, very the understand really many to those the And will two ideas ideas easy clear, those I trying We are that evolves, But could start during are and product we doable. more have have. main very improves. and think many are model as that we We product more things

it Now, how let's works. see

are know. is But in being battle won, the that nobody we able because beginning very customers front to has. never show of of You else something being the

it's one for request Thank so you, we with you. Actually final question, if Steve. okay have

Sure.

Just go ahead.

go from then. Langa go ahead. Itaú. Arturo, Arturo We'll ahead please

taking for you my question. Thank Hi.

on where been area. then and quick -- you initiatives. in one. payments had has on just But, in I'm interest any you the in there past, exploring a that that those have Just news really if that that stated wondering stands

Well, they well. are progressing

really very, of developing developing for nothing systems yes, day some this -- quite many no I'm progress product is have on some We the some to And have we of the Each released together now. we But yet, the no new are right in implementing future on we with Then fast. is payment some we good in is terms trying approach of that And segment, -- the is bullish growing developments and banks. some progressing. specific new with that customers, that's be exciting. lot on better, have and are of to a things those -- we but are our push. of news very

As you loop. not imagine that everywhere, so digital are growing growth are payments outside we may

give now. this So I update, is you the can

Thank you, you, Thank Martín. Amit.

you Yes. Thank much. so

you much. very Thank

be will Thank closing please go all analysts Martin, Thank will that So Q&A you you questions. for for I today. asking now to ahead. for the ask smart Martin to all provide the joining. all section the comments. please intelligent

much, is very Well one. I much Amit. this you something number that everyone Number Thank two, hope thank new you like. you for very format joining

keep will better improving to each on We it making try and it, time.

So very thank thank coverage you for you again, and support. much. very much And your

see Bye-bye. to the in you forward next Looking quarter.