Globant (GLOB) 18 May 232023 Q1 Earnings call transcript

Good day, and welcome to Globant's First Quarter 2023 Earnings Conference Call. I'm Arturo Langa, Head of Investor Relations at Globant. [Operator Instructions].

Please note this event is being recorded and streamed live on YouTube. By now, you should have received a copy of the earnings release.

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

Operating Tartara, speakers Co-Founder Financial Urthiague, Chief Migoya, are Officer; and Chief Pomies, Our Martin Juan and today Technology Chief Officer. Executive Officer; Patricia Officer; Diego Chief

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

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

IFRS reconciliation on we measures You results. quarter's Relations of the find Investor release our and will press of published end non-IFRS this the announcing a at website

afternoon, Good Arturo. you, everyone. Thank

Martin You how digital twin. I'm may his Martin and real voice my by engines. I appearance and The not Martin emulate is Migoya, many be AI have the Urthiague. fully this My am our developed to join changing Diego real will asked digital joined lives. Pomies, technology noticed I twins similar and are Juan to of by of me Patricia highlight Tartara, that

every time joined Q&A Diego, or the will there Martin, you these bottom appear a the notice we transparency, after remarks. for be screen any the session all For Juan The AI at use and Patricia Real engine. of

us. a the what completed of now is have very special We quarter year for first

every these and vision but the company, we ambitious, founded marks In IT transformation XX XXXX anniversary. leader Globant's the been simple, in in As the reinvent digital have than the worldwide. our and top XX,XXX has brands arena working become a this XXth team help countries Since for globe, by with world's long all industry. XX a way, years, nearly people formed more we come over almost

QX a First, macroeconomic million, our look deliver let's representing XX.X% model, accelerating on take growth at platforms of uncertainty, expanding for M&A. strategic showing growth. results studio able strategic above high geographically, pillars, expectation, quarter. year-over-year we growing of executing were all while to Total our reached $XXX.X revenue guidance X our robust our Globant this and Amid

total our with have an bookings encouraging We in of of backlog a sequential QX. growth economy global challenges months and we the with early and pipeline prioritized even by ambitious growth fuels to of or remain healthy technology about optimistic XXXX creation our be that with the optimism array We this of this faces, year. from for quarter's This area addressable the the this year. will spending technology to for global most CEOs study increase in agenda market. XX% planning the According sustain IDC, CEO

investments aims IT than X.X% leadership well building year, this are and keep above this trillion space. to in averages higher growth its expected is Globant last market $X.X delivering to reach year.

organic profitability, will by for work impact. our our nature and positive The prioritize line growth of we value in ahead, long-term market stakeholders, to continue creating all Looking with a demand. driven social is

offering support expand greater to and in products efficiency they or to As their if looking able and every productivity. are and Globant been past, experience are array organizations they with of build I've an seeking user whether services the shared has stage, to retransform you and product in

efficient AI's experiences are enterprise make and at and position new as our to In from continues Organizations and processes to streams wide growingly more potential the studio and relevance. to companies gain create partner experience us to that cluster digital our ranging user best commerce studios, sense, business to scale. of everywhere array seeing platforms revenue help

X than more Our focus back on goes to years. AI

we specific AI several launched initiatives. When strategic investing studio a in and started first

During Magnify, rooted NEXT. StarmeUp, expansion in and key products X These of AI, Genexus and platforms deeply this an capabilities of to the evolved their testimonial into how time, and Algar will and are boost and in This have incredible continue products see we introduced experiencing exponential AI. placing their with growth have is they and now are pipeline. are much organizations operations interest their seen a looking that to AI of

have Complementing influence continue an scale is have practices the consolidated initiatives our that portfolio, outlook we At best power intelligence area, a artificial for offering to We industries. the our we to the and several into and end-to-end every on AI and program also human center our better. so Globers. could across solid we will of our concept that business industry mines up call product mines

that making certified opportunities how sure observe AI when are to X our AI of We using trained understand on pods every data is safeguards generative use privacy to and engines. and

Globers As us and the and not order best we This are only targeted move faster to all in we projects. meetings, to client on ones these mentioned ensure more leverage certifications the previous enable in to working of to and way, tools other these new AI efficiently.

Officer, Our services will detail later Tartara into go included finer in the program. specific Diego Chief mines Technology

new will can As always invite we entrepreneurs to business, $XXX,XXX on sparking into proposals up transform provide at to awarding reality, the them conversation ideas globant.com/ai fuel to on be AI disruptive their AI and how it and contest. technologies, challenge the in out initiative. order Globant check we interest best to a enjoys launched We

an and This organizations velocity can the the their of to banking released on efficiency quality, how report series power a improve just we reports provides Also, AI operations. of finance the of the AI how harness of a of impact new will entitled analysis first era. industry

the download reports.globant.com. You may

thoughts on pillars. some growth Now strategic our ongoing execution the of

a expansion Pentelog, renowned array acquire by a offers entered capabilities, Our consultancy week, the geographic announced impressive digital specialization M&A portfolio will services clients we over among offering. Pentelog of strategy a Globant's transformation add France, the continues Europe. Early Adidas, France, diverse our into such to throughout reach into some and new to in agreement plans and that complement Globant's as seeking Pentelog companies robust areas in key plans Europe definitive market GXS, Bitpanda, an to this a Globant brands expansion the Austria. region, to of support Germany, industries, Netherlands, Ipsos in sectors. and serves other TripAdvisor, XXX adding that Switzerland of strongest for and family Based and in to several

Mexico, XXXX, Pentalog Vietnam France, professionals Romania, among Founded the in countries. and X,XXX Moldova, other States, United houses in

this of in Minneapolis, diverse other leading and care. digital services array its recently roster beyond acquisition We an with have a companies Experience transformation deep also acquisition States consultancy landing IT, United of in strengthens completed health players With digital the other States-based accelerate cognitive sectors. a health to industry and XX United among to Globant top transformation care the amazing ability of and in clients. in expertise

X expanding is countries than more on continents. geographically, Globant As in XX now keep we

continue evolution IT Globers in S that years markets talent, opening we ago. the in new multiple site celebrated with to be can local our as the March, companies talent We first and or on to Tandeal of strategy the the the local impact and closer In building Tandeal, go of generate hubs talent industries. traditional technology in area particular the beyond Aires create Globant's Since niche then, XXX of offices of focusing urban now iconic by shows we Buenos Argentina. Globant's the to city growing areas, cities in the quadrupled. opening X, outside was XX countries office more This has have opportunities. we

innovation of center Mexico, of we new technology opened consumer and manufacturing AI a also Monterrey, In the to applied sectors.

areas. is doubled X.X which by This AI pillars One up and gaming center focus opening presence Industry in this decision-making and serve of become the we Europe, a in premise main In the new other real. our fintech, for office, on innovation as hub technologies incorporating an of will making will process. other

with array recently of new to studios studios continues of Our grow expertise launched. X

We digital brands every technologies and leverage asking it's way and for to intertwined and more are more AI, personalization find the create better data for Consumers Last time to believe to experiences. ever brand other interaction and than are amazing that before. technology week, best in Latin acquired launched with solutions marketing Globant will new power Create, merges trending creative and be full the studios this America and to digital provide agencies marketing our leveraging powerhouse technologies. the sales that of funnel we creative Europe studio a digital

creativity way organizations Globant approach few combines Google as Create team other certified and validated worldwide Partner with has This with strategy of one of the new AI, and with with the connecting Premier technologies it unique Salesforce data and marketing Adobe customers. clients global creative unique being worldwide. partnerships with a along agency and become offer its their also has X to most

last November integrated help have experience domains. the Australia. with engineering and announce BXB commerce Commerce aims to We transformations design studio a BXC Globant's team Wave, the company commerce-enabled teams in launch the large organizations are of both acquired These complex in core. and excited in at to This create best and extensive also in

to personalized, new The will omnichannel customer experiences value has consumer to and the This team offer consultancy in offering and custom and composed solutions services, multiple to capability development commerce needs service, along planning end-to-end including bespoke individual respond support relevant points studio comprehensive and more. all and to integrate crafted our expectations digital the hosting, tailored with managed, engaging changing across of clients an platforms touch a business journey.

address been more rising dedicated Studio. than that collaboration years relationship Google for the products. taking Google announced Cloud Google a expanding to demand with We of a finally, an now XX And created Cloud steps and has global our expansion new and

clients be and on Cloud maximize new helping a transformative their benefits competitive adopt to changing The will helping platforms business landscape. and Globant's verticals unit business them focused industries in rapidly multiple tools. and across stay of the lead to Google

autonomy, Nexus refer greater in in embrace to a Our most proprietary of our growth to products Diego adapt to in continue Globant use clients quickly. technology minutes. will few platforms our and latest show helping features

as clients, by on Magnify positioning testing I'd in technology, to default. even share answer a By revolution, of AI to further. like the automation to companion AI-powered now major it MAGNIFY. MAGNIFY platform, This is testing update at an how consistent from AI all Moreover, our journey AI-powered generative to forefront works. we a decided projects the streamline itself test is leveraging our the demand include But

snippets several auto-generate describing test quality. know, QR about by involves tasks. Discover it process and code, of AI, efficiency and requirements new unlocking the can through cases of X.X simply generative is MAGNIFY language, X.X now using automation screen. the Magnify tedious available. we time-consuming the the now use levels testing As more natural and Through on

leadership a Lastly, a Horizon and across engineering a digital leader Globant examines we digital industry new few service value capabilities, recognized XX proposition, possible rank, impact. providers The go-to-market were dimensions, Research. the role and report of by strategies achieved in among in X, innovation ago, a including range report market HFS as providers weeks engineering which service Level indicates highest market

technologies to Now society this widespread that believe I that Globant's is expansion our global our spur and our undergoing growth. and of key is capabilities, moment adoption

We reinvention will that and are combined effort the for daily and to value bring and long-term stakeholders. our compound effect of this company with great drive. effort, We for our innovation believe constant committed growth

With will it digital that, Tartara, over twin the to of I turn Diego our CTO.

everyone. happy good afternoon, be you, I'm Thank here. to and

helping time transformation when Globant educating their our across AI digital spectrum for and globally, industries this paths. closer it's them than is be ever to During the to time revolutionizing clients, accelerate

services, decade pair health have our economy, industry key are We opportunity global a transforming experience including financial the to in sectors in AI. that expertise supply travel, care, of with our chain, unique

flexibility, that industry and confident are are AI to offer a deep in We unique position prowess. knowledge we

to introduced. the I'd mines which Martin on First, expand like program,

applications also to AI quest a information knowledge, and for which own more role. clients and practices basis, a On of developed from shared daily with solutions our condensed is there in significant for are a order Mines AI specific set more of support we a the their their services to business understanding value connect in that a delivered areas best capabilities in immediate and ready-to-play needs. plays on generative AI offers

ConverseAI complex data of IP a are these globin navigating knowledge by we our called for solutions, others. segment among and augmented addressed support knowledge property tackled organization customer and service and protecting intellectual designed which Some protection Hello by

a Therefore, with application that we and believe ethical every We adhere innovation. understand that AI pod fronts. so complies Also, to business require collaborative could on be to our manifesto understand bring unintended AI in various to also approach our is any way. AI to we and developed consequences

with we LaLiga. set other great have are a a are venture created leaders to industry whom We stake the such as LaLiga joint Microsoft such AI as build organizations partnerships taking with in and stage with Tech, that

Now from innovation X. updates some our hub Globant of

Our offering offering. proprietary this that up accelerators platform as our make act of

Microsoft some sales shared, signature some of visual the latest new Martin the is marketplace. just up customers marketing the the into strategy, pool will testing in MagnifAI now share This features us demo using MagnifAI them, platform me AWS to and to further be to available a a Azure Azure of adding soon. Let allowing tap also vast marketplace our of on new opens growth on listed channel, our potential

GeneXus fully develops products STAR has product, Next, written notes. launched its that GeneXus from digital

in graphs We have simplifies StarMeUp is generative enables more faster goal and perfect makes the Algar maintainable. difference code easy-to-understand constructive will This code readability, clear added making of now improves colleagues. new powered large complex bases features that feature that Argo's to and has will productive. a basis. better undocumented This to CodeMap, write functionality the to code large introduced exploration AI complex and that and accessible the by of creating make feedback all by and complement bases, more developers a end, navigation to code help

Globant world-class portfolio Walmeric, Fluent Navigate. and also X Lab product incorporates

to talk we're what like our work our I'd with doing about clients. through Now

is a in create the are consumer dynamics where engaging reimagine personalized studio more impact as and rapidly experiences. goods living consumer companies helping evolving consumer Globant's retail time and impactful behaviors seek drive meaningful consumers and that experiences are retail and stickiness. buying We reinvention

entire as to application. REI, & for their promise designing example, is and Ross's They merchandising experiences unique treasure are in experience Gap, and In among at Globant's best engaged Ross for implementing at Levi global working and stores bargains. hunting deliver others. user brands redesign matter consumers Globant with Strauss North, help such organized, Company, expertise users to to that new complements fun-filled the experiences their shopping

over network over a X,XXX national the at Allianz the models In arm their GPT efficiency advanced has the using Europe, under territory professionals assets financial the advisers, clients XX of financial presence advisers advisory and Bank unit. operation designing currently management. in unit throughout service qualified and XX applicants operational XXX we enhance with a branches Allianz financial billion are Italy. and Globant is EUR of over working of Allianz to marketing banking advisers, AI-based widespread with of for centers Bank

is Launched bank Sella, level in her financial we and in launch with model, with Also constantly customer community leading concerning a guarantee market such million with Globe banking new as [Indiscernible], trading for has plan limited with crypto Hype also a traditional to partnering lifestyle aims bank trading digital Bitpanda and XXXX, been against with Hype, Italy driving the fintech daily are offering offer, XXXX, Hype the to Italy, experience integration with X.X in operations. HypeDigital working the standards to BitPanda. expanding and which services. with since of a and in realities customers. experience, the player platform deposit digital through the best more is Banca ultimate thanks Hype than products, simplified simplicity the to third-party mortgages supporting

endeavors unlock invest hidden within venture as X banks more Five's to through in With customer-centric a Five a innovative financial data-driven can a Globant $X months. process, month, organizations implementation offer and data, increase as in Banks customer-centric to new empowering immense our fund, industry Ventures. was to experience streamlined little financial become corporate continue revenues. capital granted investment platform. value Last We million to solutions

first year. by financial X vehicle industry a Americas. full committees to acted misuse platform of that projects support tech mitigate to kind B fund, We that Globant Ventures of tech the operated the in completed the company vision services looks investment its Five's SaaS revolutionizing the the in investment top as The positioning support and

As our technologies always, forward relationships to latest clients the our look by with into their bringing businesses. enhancing we

it Pomies, With that, COO. I'll digital our Patricia turn over the to of twin

of and setting the be In Thank work with future stronger and everyone. ability the discuss to demonstrating embracing the with today parallel you, hello, itself Diego, in power to a challenges for shaping deliver resilience happy we its face I future. is change to is of clients, our and Globant how you stage Globant innovate to of the work. am and

We are in we way latest empowering efficiency our constantly focus the through our train our and teams improving AI transforming advancements talent. and manage, the hire,

Let's clients. with kick off our

Our declined year-over-year by grew Company largest account, XX.X% X.X% and Walt quarter-over-quarter. the Disney by

of seeing of the are quarters We in signs remaining XXXX. sequential growth

Disney remain quarter-over-quarter. by our long-term relationship optimistic Our across opportunities. the units, year-over-year we resorts. collectively growth and with remains strong, We are and and present and relationship ranging media parks many their from cruises our declined business theme of by accounts Disney grew X.X% The XX.X% to rest of about to

digital last in geopolitical time call, a and quarter's commented macroeconomic high-end we uncertainty. was high at earnings transformation of As impacted

we which accounts, XX by particularly in sequential many category, are reflected growth client growth the quarter-on-quarter in now QX. However, spend already of seeing up to was in positive our X our key

Our XXX-Squared bringing now more in strategy than $XX in annual have continues We million to show revenue. results. XX accounts

X In XXX annual million addition, than provide a of revenue, XX% more clients showing year we ago. increase have from that $X

distribution geographical Latin and Regarding EMEA, XX.X% revenue, in reflecting high EMEA Asia and revenues America, of firms. in came QX, Santander, of from our global a XX.X% from Oceania. We expansion in Google our bookings America, reached projects from XX.X% X.X% closed with North LaLiga, XXXX Disney new global In and strategy. and late early with Also, EY, string QX we February, with January Media. large historic

level pipeline patterns. initial indicators This other improvement an all Globant led pointing to of at bookings to monthly to by XXXX. accompanied and early spending leading a encouraging compared but a similar record This internally in

quarter the efforts and to the yet paid improving services our of dedicated the During to of products XXXX, quality again. delivery the of off first clients

and history range in industry highest XX. well the XX, of Score Promoter XX to Net above of a achieved benchmark have the We

and XXXX, grown NPS quarter call first earnings this I has XX after score in was on steadily on quarter. When our our discussed focus

the value XX client loyalty to building has annual leadership aim a the way climate maintain business improves. is increased also average of Our to from our we score XX, as

eager grow headcount remain our is We Globers. global Our to XX,XXX. current family of

do will we at to However, the growth. so pace our continue business of

and Our in recruiting to support accelerate our needed. teams pipeline, business to short-term the quickly have engine are prepared we as

Our in points to to effectively. years, basis hirings aim annual deficient attrition headcount and utilization below at attrition X last proper and lowest We currently is quarter. XX.X%, manage the XXX

the level the 'XX, rebuild year. XQ of down We stood As near the up and growth revenue XX%, back from to both reported margins. utilization gross last this level aim XXs we our throughout quarter. driving rate to XX% low

are and continuously We reskilling prepare skill demand. centric them organization, a teams to and are business we upskilling for our future

We AI clear exposed a we explained. mission of than develop fullest. a in XX,XXX to on where have pods to our throughout apply our hub the In work. getting to their our AI skill More be the strides Globers and in their are University learning we have already Globers as Globers the to trends of quickly latest AI, have all the last quarter, certifying of process diverse Globant in significant careers e-Campus, the made in can it experience completed sets Diego

university growth and used more monthly. to globals the experiences than which by our now than learning thrilled also of platform, X,XXX see is We're Globe different and more offers XX,XXX

been Learning expertise Globers recent connects Match, a seeking that success. feature experts has launch with Our of a great their

skill improvements more than our completed we've a new learning Globers X,XXX high adopted the More notable have month, work than that by training seen Globers. to relevant in seen GeneXus the than by are reporting in with more XX%. they've level last last our all-time their before. the means XXX a are increase Globers being applicability tool. of have in employees of per day-to-day ever learned significant an used skills platform. these the and risen their Globant's Thanks proprietary on hours useful We've the average improvement has score since platforms which quarter. also In also employee, XX% This

women And build March, of finally, third important global that updates some on winners In edition initiative. the awards. B Globant's the announced of kind we

industry in that world. different while promoting initiative collaboration the the STEM promotes Purate the connecting to innovation parts of technology Our want leaders supports talented and in encourage recognizes fields. visibility the of from development and women women ongoing and We and

wind addition votes third and than The X,XXX X,XXX awards of that encompassed nominations, more XXX,XXX candidates, judges. XX build international

nominations. are begun We fourth and have we the accepting edition now already

nominate who If woman you know game encourage at womenawards.globant.com. we technology, in up you to is a shaking the

buildings for Globant's Argentina. commitment, of part As March, such is planned gold. that invest building This design building in certified that of and carbon of real cost highest more is in lead we certified the we investment as are our all efficient building has Tandil, the iconic Medigen in as part platinum, facilities a sustainable possible green into and the strategy, Bogota, our the lead and of in city The the celebrated sustainable estate opening where savings. range healthy, as Seattle,

offices ENERGY received Globant an score clients buildings Also, its agent Globers, they in its role and of business indicating remains similar conscious energy social San Francisco, of embracing seizing more than are close of STAR of as our nationwide. and XX% technologies efficient XX, change. opportunities a to positive new

Juan to With over to that, it hand discuss the I'll financials.

and showcasing here you, be XXXX, In $XXX.X great growth year-over-year a with the industry-leading a in afternoon, everyone. totaling we current revenues with good to QX strong increase XX.X% solid million, Thank revenue performance environment. achieved again. It's

to the expectations United operating States M&A and and profit met in we broaden initiatives Our skillfully executed presence margin our adjusted guidance Europe.

the earnings in most quarter full As outlook and XXXX, updating revenue business. in year continue as are last expect our call, recent we previously indicated sequential trends we growth to in incorporate second such, the our to

acknowledge the our compared service causing transformation steadfast in macroeconomic digital belief client cycles. to potentially the current a As past in influence visibility lasting for we climate Nonetheless, provider, spending, transformation. we demand that may reduced remain

and Our remain pipeline keeps long-term around expanding consistent. strategy discussions client

focus, a business as as embracing innovations. technology clients a witness further AI XXXX to talent digital in core these and dedication investments practices to advancements Cutting-edge guiding ongoing priority. Amid top revolutionizing our transformation continues and scarcity solidify

talent in structures the offerings, and to Our our focus services AI ever-changing our on meet tailoring be optimizing platform, cost demands. continues harnessing to distinguish and to

of buckets, are healthy we to report QX important our we the X, and growth our decrease among XX to activity client remains top which sequential growth X reaffirms to and our line, experienced pleased Despite XX reviewing X.X% quarter profitability. to our in that results, customers. most belief spending in our sequential strong strong X another Upon XX

constant headline stood figure. at In QX year-over-year terms currency, of an our impressive growth revenue mirroring XX% closely

accounted points for emerge. of several X inorganic growth approximately our percentage QX, breakdown, contributions year-over-year in Analyzing revenue overall strengthening Additionally, factors performance. further our

Geographically, all second growth. XX.X%. growth positive From displayed business our at units significant and due sector X.X% to year-over-year at closed EMEA LATAM operations exhibited at States in at Oceania Asia media year-over-year United and XX.X%, XX.X%, deals an half industry vertical standpoint, XXXX. strong

in a more care care offset health by We high consumer limited our partially observed verticals. We, continue verticals. growth and media also spending see anticipate BFSI We positive travel recovery and manufacturing in in primarily hospitality, QX, professional high-tech BFSI however, health services, quarter. sequential retail, next into going in and to the divisions, tech

increasing XX.X% reached QX consistently adjusted Adjusted margin provided gross XX.X% historical profit on adjusted profit gross stood XX% growth. our million, investors. we $XXX.X XXXX, margin In of the to to range profitability. We with that to previously XX% annual have profit within delivered a

for adjusted was guidance with provided. the Our XX.X%, operating margin quarter the aligning

lower EBIT XX and XX.X% XX.X% We fourth to compared SG&A at adjusted achieve also quarter that QX last points targets basis our SG&A over with of year, XXXX XXXX. are addressing our sales than diligently to

income quarter a the for margin. operating million, totaled Adjusted $XX.X reflecting XX.X%

guidance. income $X.XX QX for with average net increase tax quarter million, on X.X% the the for XX.X diluted EPS in closely XX.X%, diluted for period. effective IFRS above year-over-year quarter $X.XX, based the Adjusted margin. our $XX.X reached our rate income below-the-line to an was and items, XX.X% for Adjusted shares a guidance representing million was our adjusted adhering net As

management, balance along of QX to short-term of $XXX.X equivalents, with million. investments, cash terms as sheet our cash XXXX, and In amounted

significant we remains growth and Our $XX.X this position. for we funding million flow to working a credit same management. a short-term the utilized organic enhanced used cash period cash XXXX, QX cash from in undrawn, million plans. our In of approximately generation, facility year, $X.X Combined flow, sufficient net with capital ensures free our improvement maintain owing last the tax and

full from guidance forward, QX contributions experienced outlook IT XXXX. for during discuss Moving let's year closed into and This our QX account XXXX. the takes

that However, not from any as it is be include anticipated deal the approval date certainty. with and cannot pending does contribution

Our focus remains and Throughout profitability. expanding business XXXX, on we on margins. growth stable strong achieving our while concentrate robust revenue will maintaining

closely also with to it will structure cost manage ensure business scales our performance. our We

QX at months least million We slight improvement of year-over-year we XXXX observed creation XXXX. underlying growth. the a indicators currently $XXX to final reflecting anticipate and compared trends revenues have better of the backlog Since the XX.X% revenue QX in beginning booking year, with in of

map Although the full opportunities level road or client significant still shifts encourage and witnessed our clients' cancellations of we digital business not closed pipeline potential, growing project is below Overall, in our us. have long-term adoption strategies.

nor will implies current business neither the from minute, address a a downturn Our 'XX climate. in improvement marked I which guidance, full a year

companies remains digital clients' line We technology efficiency top continue enhanced direct-to-consumer to efficient that pivoting central channels our delivery pursue via to for believe and channels as brick-and-mortar leveraging growth to from strategies. will

our While and sequential now AI DX of by an our the and risks customers, growth Macro crosscurrents potential another from upside cautious. start could given restructuring we cost we digestion outlook. year-end, related to but some AI of are remain to investments wave persist, to optimistic efficiency generative about provide

to to We From IFRS XX% XX.X% range. the margin to expect we XX% the in effective of adjusted income the quarter range be expected our operating XXXX. tax for a XX.X% is rate in income profitability perspective, second

million to $X.XX, least is be the QX XX.X expected for shares assuming outstanding EPS adjusted at average for quarter. diluted Our

to With year-over-year billion, As we growth. are XXXX year at we progress increase towards current for the XX.X% pleased to solid full year guidance guidance, a outlook we optimistic maintain visibility, a growth our full least XXXX. $X.XX cautiously

assumes guidance the year. FX outlook neutral Our for a

XXXX income For XX% in expect effective to be IFRS to margin operating the XX% tax the to expected year, we in is XX% our range. XX% to range. rate full continue adjusted the

Finally, XXXX average for our for assuming the million $X.XX, adjusted diluted shares EPS to diluted is year. be expected XX.X

support. in your for participating coverage call, for the and everyone, Thanks,

thank Hi. you, Good afternoon, everyone. and Instructions] [Operator

will we take line JPMorgan. of mind, with from our that first Huang Tien-Tsin the from in So question

Thanks elaborate like on expecting the quarter. to just maybe It media. Patricia a Disney detail. you ask ask from bookings is -- the to second growth that in sounds including more for with little elaborate I'll you're bit sequential all pretty strong backlog, the

just on seeing? of trending visibility, a might seems And be peers, digital little your asking that you're some upbeat course, more So case? outlook why are investors give a us that than the lot month-to-month the more maybe the of of the bit

Juan?

the for question. Tien-Tsin, you, Thank

$XX is So million. our quarter for outlook second

time If already the point actually, that you in remember for we QX. going were bookings. terms mentioned increase into the in that back we in year, quarter of the February materialized during a at And when first guided we that first expecting for sequential

Now guide That recovery, we X happening And to that during of to recovery are from we QX the half increase last have we that's about compared QX. why points see a continue to percentage second able QX. to seen of a year. sequential

growth the half of the much Overall, the of recovery maybe the that coming technology, the a seen months we to I industry, from the behind technology of But has industries. second was compared rest most last first companies level improved year think with have bookings are exception pretty of every of that seen in bit the in the year when clear of little the a backlog. have overall, actually we X

to first takes we continue the sequential of half us second will sequential we're have also that believe And new QX. growth of forward. to not some part that backlog similar going year able again. traction only also, close The growth to see build but to That's a started a into the why also guide the year deals

that we're pretty outlook see in Yes. last in the the recovery this much three the And happening good seeing on bookings down and quarter year, we to also complete for first second if going quarter. quarters coming sequentially

Juan that basic what bookings. So believe has on recovery I that was on saying support the

outlook has about But the is are maybe companies to peers. just to good outlook all it's because follow-up It's ask a and your digital why Globant are Great. hear. fair And maybe chance in of some talk your clients the versus on And know difference my I peers a from different, again how just different. maybe the different is different? little maybe to

that It of -- competition well, and very competitors. our very is always admire believe has many I we strong, strong. been

that with many do different you yields more things find customers what they and to I our like in a take Now of mean, top to organizing approaching what yields degrees lot way in every need. to I into a get we're to our of whenever how autonomy be we're too, that will on ports our in We're And different. different day. we they thousands way the how of I customer company that And aware a much you doing do, think our believe be a way. decisions of closer things,

our also now enterprise so the to industry reinvention but is And launch studios going studios offering, on our just the top, course, connect the day that studios. rate-on-rate new is front every our fast, that strongest our back part, to into studios that in too get very wider that in yields in growing have and and with we not very, now also of of on new digital trying that to and offering offering the

leverage with aimed have So proposition, relationships is those much we customers X which day our way. value like more the to create in every things efficient a a

What in to the to I believe understand and to crystallized we same customers that expand performance is passion getting have we into gain and market needs that that are our of seeing game. share

the line Shirvaikar is of coming from from question Citi. next Ashwin The

your see to twins again. digital good Also

to you around. Thank it was referring that other the doing much cheaper than way for because it

cautious seriously, the material I if conversations the time of about demo. it a is big software, by you the got a GeneXus twin model you're course, asked general how people And that get know. is part have all have see That's to the and view in replaced talking X does I most last investor AI affects compensation and opportunity. stock-based about get, more a time model. is that had AI of don't digital incremental But material now investors and What attempts

pass can thinking to on products? you clients the sort what So that and versus have balance in to your talk of of see opportunity about kind the terms incremental if you you of those to how productivity of you are benefits

for and will Okay. first ahead. question. Diego answer I let Thank first question to -- will the then the part, you go I the ask I will

about, it's say, what the let's of do we being spend to of day. the Out used every XX% to go fundamental that what Let's negotiating, the of XX%, we you about understanding want maybe time understanding other XX% XX%, which to about of you reach and let's need XXX% The say, about code, or is generating do what the right? dealing are do.

a need right? we of part what can efficiency understand in portion is do, first the be So we to only that made

that understood need want thing right? on that's hype be said clear will to as of see the a be human this, we and efficiency where we things doing lot must around things human, So that they're keep to lot a being a human because to that's X thing. see and where fundamental So we there's of that exist, I

second AI. believe incremental what that grow And we based together The that's refer gaining to ambitions that efficiency, is I this opportunities thing on with --

an me let you Now example. give

using we For example, to to not we conversations systems, using will conversations apps are But all to back-end with will create before those connected it's and job done. be trivial be now to be transactions. need a the transactions create

that understand can wrong. to I that I but yield the it's think So overview absolutely conclusion, analysis

think I we what is in going efficiency of do. portion a So

and general much that efficiencies increasing faster. very And connects on gaining we and ambitions to then in do growing is portion sophisticated, what and a only

So to like on -- Diego, but that. would you I your take perspective

efficiencies been if the we've is Fasco launched approach think we this to we view with into implement that, we you which and And how last we can this work. our own we regards what products product bring even about how the recall, mentioned on. exactly creating year, I is, for Martin spot doing that. How studio, was how

in space. active very the been we've So

frameworks. as happening our has new those Now start know There's in when since I the we thing There's is bring languages business. efficiencies. There's been this don't to development aim of the new new technologies.

ago those half as of necessarily they're be done AI-related lots to of of amount used not even today time of XX x in the things leveraging years by and technologies, of can work or less. take that So the XX% time,

mean of of the forefront their as functionality to consumer -- said, reduced expectations terms bring there's to the be that our in expectations that of consumer we didn't to work clients Martin because, that our in increase on another businesses. was expect the And terms

that on we are So that. I every implementing is think efficiencies actually studio working that these

very We have as those fast said, definitely we Patricia to space as been our the trainings on clients active like we've will can. be translated

doing work. We that that. more but into I again, And are translated will already think be --

view digital, well, get absolutely. Got our mean No, I as digital. we it. it. Got that's

more been we term bookings. the out growth. of still historical say, sequential your growth issue I Obviously, cadence not And getting of of implies, really rest sequential as sort is question second still good so but and The quarters, would near has been think the revenue year. conversion. much the question has for pretty the the than outlook It in about less about

So any conversion? regard Pentalog, And there is XQ maybe of to you commentary that? with is part to to there a on just be anything be that here, in revenue said year, the clear revs included

we coming growth some is the is QX then get much million. compared already we out booked the already we we going that beginning that there, year. generating the So whatever has and do to call, have an mean On stronger what if to in contracts those from is the cadence that, Basically, cycle the QX last $XXX delivering reverse you're top QX. X% contracts conversion when we have have at signed. improvement And book-by-book, a seen and going revenue. to of Hence, been going to be sequential the in of you to mentioned and we're and the guidance for pipeline, around math, is, as

the did, are now. that the X the don't provided we going that really level that we Pentalog to the as level closed, conversion month plus basically, know providing we guidance, of aligned have not But we that. were seeing are pipeline guidance into to X at of that frame. month happen already if In at within our this we to somehow not bookings that basically, as that guidance that So approved deal now, because now embedding is we are are is including the including deals that we not time get because or in we going we to point very It's sure likely it's that of months.

question the next comes Nolan. Maggie from of line The

terms bookings offerings? your And saw of the any if and with was service where versus could areas share you the see curious then I quarter? that of mix did you in existing in clients new us this particular you traction

has the the of which end in we the of to of number new Yes. second the term, tell at first and quarter, going that I quarter year. to is twice driving the is be is day quarter what that the want last Maggie had near logos fourth the

new beginning clients farming, logos. So but what showing basically, implied doing activities on depend for numbers. year or is are the signing but farming the is new an logos, the increase months a by of It deals, few of already. working this existing been much in really also in we doesn't those have I number mean, better closing

If a mentioned, the lot actually XXX into those accounts, to next are below we our and you but well. be then quarter, as [Indiscernible], fourth perform, customers where was performed seeing look the eventually, at have are And how getting the quite we that's year. growth part going first of quarter from slightly which and of you key the that

is Also QX. that in we this adding revenue have announced that important we to record that EMEA, of also that, I think a in

we the we venture lot important accounts I in seeing there and and the So thing well, an good of lot like, joint was it's made. Santander earnings couple mean a think in fruit La Europe, calls of are in results been last talking EMEA a we that that very there. that or bringing about have in I Liga, now expanding

think I that's another So point.

it. well the more Got acquisition there the as too. And to with addition come of

to your or me the of the on for And year? into full question that to for on other you meet track that one the considerations So margin. Are spend midpoint guidance? investment what are operating range then factored you guided

Yes.

we now, mean XX.X%. expect, you QX of As have number, I already the

And margins while driven is coverage those approach always, the hopefully going margins. to on current which somewhere have quarter in of to we to going the keep have of reducing the we XX% to XX%, going in improved is on talent by because in pool conservative take of but to gene still part areas this that working to we around as recovery more to utilization invest. in the in very half year, second productivity, we a company the Second we have guidance. careful but sales investing protect taken also, is improved environment. midpoint be been going of second protect a where see need rest to we think grow been we continue the the We the us That be we're

The comes of Bryan TD Cowen. from from line Bergin next the question

ask I'll line on just one, here. First top

sounds it is like that months it across So the quarter. about to went are Is seeing first talk you're as us X the seeing to Are ago? certain anticipated similar areas within as areas just year there? on the that the are pressure areas of more goes, Disney that account? you various what or certain rest growth? you communicated you can progressing businesses there more working Or kind it it relative plan of in through And to

then that which their pretty across but first, right unfold the we the which away, are thing see we been is it working. have going way relationship some is of scope in we going not that last when suspected. on in different yes, we the expected half recovery the what now. clear we was second and pretty lines talked strong. And we call, And has be see, in year, see that we strong second in a is not And very Disney. consistent It earnings the could the we in

this is what now. are we So seeing

with profiting that we unfold. ball that here. and see we are working we crystal we that But have them, good don't very We will let's understand have. how this the be positioned well Now relationship

on grow the that else may and aside on you as you then as and mentioned support some of model, to G&A as And then the continue geographically. new acquisitions question pulling just layer discipline we to implications margin the regions? more here, you And what a distributed from about that broader be margin in pricing new levers become think on of operating the

range. that We acquisitions doing. will continue margin see Both the XX% are to in we XX% gross to

above are Some of that them level.

at level them global, having more view, helping say focus point and -- more and us not a is to the XX% we again, going significantly to business, been revenue but also and the Some of healthy view, not But business add in course, in regions, expanding It's that new while maintain from into right? of geographically locations certain complement offering by that to knowledge the the the a acquisitions getting we level. we about we more gross I deals been in acquisitions of want -- new Then, below delivery new give as will to skill point I on but of that have only XX% slightly margin selective keep target saying deep expand certain grow Organic the of And that margins, we term. continue to continue it's would both, as of have growth and average, on service we be case. And grow complemented being go. expanding a short on that's mean going to level. technologies. maintaining healthy our margins have, sets -- or margin margins us to we from

had to and I locations it of case it. do Moldova operations strong for starting we a example, well, adding Pentalog, example, to my although mean, the are as has They're mentioned very we not have much it's finished now before, I operation. in There in for we announced where yet, But closing. Morocco. stronger around, the And locations, the we digital and acquisition adding adding Romania, need Vietnam,

also So margins keep still to to diversifying risk. are levers on on and managing keep those

question Our from Surinder from Jefferies. comes next Thind

kind we're what your you about conversation all productivity delivery in with I improvement -- this all with color just the of additional the I'd the now, that apologize you video usage, as from or expect are should unleashing here this question tools like a your technology gains with some year about of provide think from having you start to at issues developers a Can software teams? productivity comments terms if and the of some you point. around of level on

are That's as that actually something doing we we speak.

benchmarks running been greatly of are out there that real data, that based lot that information with. not has actual case on is work of We type pros are synthetic we scenarios. There projects a

of but can team. the of -- little is the lower of results up that that, this development, bit get that a you initial it's for blended on higher the One tasks, development around than number. the On core XX% to efficiencies is certain within that much

projects, big typical development talking design. testing I'm about

-- So can see. expectations around we that's expectation the initial

fight and in that functionality, capability. right? even better own mean, thing what's tools And development occasions, is And teams product -- in Of see many there's owner, The translate tension. course, our appearing I more evolving. between there's your even the that tooling be more much the bigger. could called constant a I And which capacity. a constant this wants tension

would to taken features, So be by expect immediately what et XX% adding I is new cetera. that over

on So the working by immediately will pulled that been win with we've be every product that project owners.

is is interacting and with work to with the need a the so not But factor Maybe which -- tools, by a exactly understanding I explaining using precise Yes. that the seeing said prompting to And you very, you that the as results the X are of prompting want. I tools that that we people much higher our do And and that it need be the I Otherwise, in if is frame, have factor coal that done, been has on of this understanding when not these these that's prompting our tools the manner. fact get total XX%, results was to what then the very factored you these Tien-Tsin, a before, customers. the fact itself. things -- know don't to much needs change. bigger that we be tools. the right? didn't in you But projects of it with productivity

that helps hope answer I So to question. your

X you exposure actually very of verticals helpful. as color provide banking in that to here question expect about the quarter-over-quarter sequential additional is is and terms dynamics, the related And prepared see you financial projects for you of to your banks, Can money talked the the growth. light of In the growth. commentary, within just what services obviously, then especially Because but a there's that's Yes, this narratives next of, in you looks financial the there? are seems think them working in at How about having at the been conversations? centers, that? global conversations point? what environment different just it like you're Has should we large about demand services point? like kinds the there this to change And

the where then growth industries over which Pato few over we're about growth bit to I just we're or to sectors quarters. going the to to or I the with are discuss started When looking get And let will are next Diego Yes. positive the little a are at next that Martin see which some going quarter. projects. back

getting be to are and entertainment, to quarter banks, care, going financial going going you're services, think, recovering into media the health those, So retail, see forward. all consumer better I and second

You the team let That's we negative And seeing those will what see evolution of those Pat that technology. in for terms and about we will industries. have in industries, in slightly of Martin, industries. customers I what a stable doing more set are projects we talk are the for or

let I will Diego. And

Okay.

savings So business saving and efficiencies cost XX% in cetera. was projects, against cost been type the the revenue-generating of et the shifting revenue-generating of the whether in I into of XX% between have think past, processes, relevance type projects this conversations terms

way around. nowadays, think I it's other the

cloud about a et So discussions et streamlining of cetera. services, better use there's cetera, of lot business processes, making

So that is very. aspect is

a sharing services are work on active lot the the other mentioned that leveraging example. just are lot enterprise These a and studio work and an models. industries by just the side, on side of to there's a do that things, examples. of related AI, and exploratory in We as of close and Our CART within to deal getting launched X development very revenue AI

to at a are making their much been I of activity very happening what day, is and conscious. generating they is active the line, more see the more has investment a revenue-generating developing to do think revenue the savings definitely in are the need I think starting because lot thing on use reduction they're in towards certain want that to But the companies the for we budget end What they is lines. there industries. But

the things been said have So and taken the on we there, and side of business have always conversations that's why but expanding revenue-generating new exploring the channels always the longer. decisions been

happening they've think this I that, is for is space doing now. what and building been

That model, think means that added if Also related launched the with want the to And we operational to program. be place of they're when that, close I terms that we have decide whether really showing our other to to in the is or the proband when that -- going fruits any clients. Globant. they to now to XXX-Square

we been them. is relationship building that and have strong with think partnership really I years that for

pipeline. So is activities farming all a that see a see those in very is where very clients. we strong That we strong

as last the the was result been of very of I the relation having the that that in And these quality days. delivery it's think Globen Diego kind Juan, couple mentioning good has that doing mean, -- showing of well, and and I

the you. to mean, in do decide to sharing, with a helping is mean, lot this conversation or need I in need they when they with saving revenue if strong being partners, table this I and us cost Thank as building pipeline. them fact, In Hannes talking

Thomas the of comes question from line from KeyBanc. Our next Blakeley

Excellent.

generative made these TAM about deals today? outlook Or that a already related in and you that's outlook? pipeline your and AI comment a to higher Are AI level your of about upside there kind think overall I just the is comment the why? providing

or conversations these can to all of what we do to customers advantage number around definitely at our what large be and that do believe tools. these to want will It's new some unleash part. able We the of AI will, customers point, and second opportunities take we a help

is forward Yes. quarters, seeing, connected Diego believe conversations We're seeing we the some believe. I hype things happening it to happening right And the interactions. now moving pipeline, and customers. But we that, seeing the not then And in full mentioned, starting the also now. as the is we're that are next right with whole the that explorative pipeline

don't difficult trigger seeing to today, yet. unleashed all but think it's these are So future pipeline we some fully not discussions So I might forecast, right? it's that

on just then organic growth. a And follow-up question

Juan. Or slightly upticked I before, maybe that the recent it's M&A is with think you mentioned Is maintained? X%, done? that you've

Yes.

acquisitions deal in So from so close going the guidance it's which X.X% past, for to the a is authorities, did we XX% we for XX.X% X.X% and is including of from French IT. But Experience about the the the we analog, is that plus organic those the year, need is see that about now year. XX% composed once when the coming excluding to get approval which guidance

question HSBC. next from The comes of Kanumuri Phani line the from

of How Pentalog. Globant like change acquisition seems a is regarding question compared see first geographical this big for Globant Pentalog do It would you shift integrating my terms acquisitions. fairly and to of So revenues? recent with that how perspective your in

your question is related AI tools. second to primarily The

your more for the you tools AIs coming like these seeing clients still that is some GeneXus? is certain there from had the demand stage? seen for you in it are have AI tools demonstrated. How And We solid the Or demand exploratory currently?

take not Pat are we pretty or we big in let see are I are were I'll of places a in It's geographies. on Well, in to the complement. will which part not Pentalog of geographies. very complementary first I integration They question, the a helping lot certain enough. we as straightforward companies terms

-- that's the question part of you X that So that made.

that the of have which it's companies cannot not mean been And company the acquiring is In size, size I a is, I before. we the you, I that agree terms is problem within that became it big. with is of bigger. loan believe,

But it terms what in of same we X, percentage than So a X now, relatively did ago. in speaking, years or bigger size. of course, is acquisition speaking is the

So I talk on to will that. complement Peter about let and Pat Diego then to log

course, they think this we have have the is great been help mean I something have and the this with to that us them leadership mean, and of things that this, be that a there culture been team are talking of with great I together. similar X the most of seeing have we very have that that They with we I mindset. entrepreneurial of achieved the on Pentalog conversations bigger. are goal we eager part

and of what they connection in there So lot is want specific. to we achieve achieve to also a what Europe between want

For find that means looking us, here, I that it mean, also a here help we expand. operation of those mean, and to in I for kind us grow partner Pentalog we want Europe our we have things. been in

of think this need very wait think is and integration that I the going happen. have still need been we what we I seeing authorization to of culture, strategy smooth is very to a they of and together company. But to very be in I this mean, and quality similar you of way to easy, in the for go-to-market same of the similar terms terms find technologies, working leadership the in talent course, the that the are lot organized. we the

And be and team with and very of kind. them amazing team to very on it's the have they smooth, going it's been an there. Martin we Monday are Well, we think with part there. I leadership And So

Diego? AI, you of we And So we want want to have very in similarities to terms on achieve together. the comment what

Yes, definitely.

tooling, within pipeline. different type of roles So the states maturity our in are development with of and to play different regards toolings

proposition very As very strong it Magnify great examples ROI. to is straightforward, with easy very had of integrate value and this It's a pipeline is

just very same but So strong. is deal. [Indiscernible] line little pipeline exactly have the pipeline our was there but our later, in and we first amazing results released a closed we goes an

playing same exactly in space. it's So the

on a PARADIGME side in shift is development GeneXus other actually the the process. in

way. cannot it's from just in So a different scratch along project. It's starting a -- not it tag traditional

lunch. very incorporation of create So signs remember, it allows will it by X amazing seeing AI, has said, by as tool I the to an we're type started hope local using good you pipeline software scenarios. GeneXus materialize just generative had cases, like different actual very positive I now GeneXus in the and regular market. But a natural into the reception. of and language, a that that, sincerely business again, from pipeline

everyone. you, Thank

be comments. So provide to will for session ask some Martin Q&A I closing will now the today. that

go Martin, ahead. So please

is Arturo. Pat, real the Juan real and Diego. This you, finally, Martin, real Thank real

So us thank helping and for much you covering very for us.

Looking next quarter. so in you much. see to you forward Thank the

Bye-bye.