Globant (GLOB) 15 Aug 242024 Q2 Earnings call transcript

Good day, and welcome to Globant's Second Quarter 2024 Earnings Conference Call. I'm Arturo Langa, Investor Relations Officer 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.

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

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

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

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

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

turn to to like Martin now CEO. the I'd our Migoya, over call

afternoon, to are my your from with I you Thank will back pleasure much. holidays. so here. be It's digital Martin? how take you Hey, it you. Good everyone. Enjoy

with everyone. quarter, the break pleasure my afternoon, be again. our earnings And to of well-deserved format Good giving I'm we a to back twin. It's digital changing my you this are call.

long-term for We will our be our with discussion time community. and in analyst remains our more more to growth. concise leave Globant committed remarks

our to AI for expanding as market this our time aim partner expand. be continues continue We innovation We at to revolution our leading important for share the industry. customers

was across industry up XX.X% and our QX results. quarter-over-quarter. the quarterly geographical customer and we vertical. totaled forward sports top year-over-year This It verticals our our a work. where million, entertainment X% and with included significant with $XXX.X begin will media, I regions and almost shared step growth revenue

adjusted forecasting We're for operating improving year, raising while healthy our EPS our We in maintaining both the adjusted our continue growth EPS. a outlook margin to profitability, income deliver and balance sheet.

Globant and while IT industry-leading While eroded years, growth. sustained them across in recent returns the delivering have profitability services industry

also marked for us. quarter This milestone a special

reached growth rate have IPO, public revenue compound possible We over we returns at annual XXx XXth our as in Since XX.X%. X,XXX% company. through a our in This and was beta growth have a always of shareholder our mindset. made delivered anniversary

and our Our clients. with empower digitally build relationships native entrepreneurial to long-lasting culture us

Over and a us the term, massive generative AI opportunity. medium short presents with

We consumer everywhere haven't digital with apps the seen demanded see are demand a has this Back today. Currently, tools remains by meet many we productivity beyond new late and interact adopted scale then, efficiency of reacted are kicked in solutions to a to quickly and of The lowered, development. off demo revolution ongoing Companies for which the brands. preferred but brought that users since entry gains programs, multiyear industry. Generative smartphone enterprise-class XXXXs. their barrier for been gen AI has being building effective to AI users. that AI significant creating challenge in transformation

companies future to of that the between the this, breakthrough, to pushes they we these impossible trigger scope effect projects of they increases, Globant, demand. and foster At acknowledge our were next firmly are net further. dynamics we expected they adapt to win. ready the will every go the demands user us for believe those users and tech shown Many generation and positive more has programs. that before love. experiences that ambition from industry. history However, and the The brands and their AI-based after of This create We massive a need

same of half period year. are in AI-related XXX% to XXXX last close revenues the growing first the versus

year. that $XXX have we we million workloads, AI far November included $XXX year, this million of half of revenues above last the that first the produced in During over reported revenue in

Navigate, the back-end and prototyping, definition, outcomes. also Globant supervised fixing. our its guide Augmented from which experiences life now and new to towards range agents of AI process, by accelerate agents each seamlessly and code Augoor, the quarter, goals stage of including AI of cycle. years individual agents. will will MagnifAI, the our tasks enhance development for humans, platforms, designing they AI presented include in testing users' design, understanding product and that code software the them Having to GeneXus, own invested interactions They development assist desired impacting form This backbone

to one-stop Lions presented Network. organizations shop also Globant new network our previously the GUT the leveraging a growth creativity, space. for global Cannes our It offers advertising in global At keen the Globant combines best of the our GUT, marketing creative award-winning media marketers, agency. new and Creativity Festival announce summer, acquired We're International this technology of technology. with The

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please. it hand Tartara. that, you our Thank with I'll over Diego, Diego much. to very CTO, And

Martin, Thanks, and hello, everyone.

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we care Latin partner America to for as expert offering global invited its data for partners Our to first few with life well in data grow health as join and Advisory sciences and relationship its cloud expert-level and also level AI. recently as the one were for continues Salesforce Board as certified their globally, of only Partner

accelerate approach with In to to health a They establish care, company. business Globant unified regions. looking working they were to a all pharmaceutical their across came AI is global of us and because units deployment

organization. operating an center and AI AI strategy the of where adoption experiment they model across an test developing different can for a are place excellence, We an and initiatives

transformation for privately has one held of In a as digital the United companies. the largest partner named States, Globant been country's

have transformation their that focus into application XX the future-proof support to of We legacy new solution business. and technology cloud program. will and program cohesive a yet different will on developing complex blended The multiyear modernization, infrastructure capabilities execute expertise a studios

Globant in advancing solutions clients. also providing both and growth sustainability capabilities for that our our bring is business

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total of Cannes XX a great year Lions, another for won agency. confirming GUT the

are at investments to areas augment make our we decades in Globant coming and trends, among that forefront fruition. determined for AI the sustainability GUT's FIFA, We which of ULTRA, in of are many to work LaLiga now excited array to Artois, Coca-Cola, technology enterprise From our Stella Hortons, others. include Google, Mattel, Tim investing mark the Michaelob X from to clients, and are

our leave Pomies, Thank all you. I Patricia COO. with you

Hello, everyone. back. Happy be to

million million one more clients. of than annual our that revenue, year ago. with million start in more $XXX $XX than clients bringing and currently more than XX have of Let's $X XX.X% We annual revenue provide

largest accounts, with The client our average true Company, thought This XX.X% a our client, year-over-year our our the XX quality over focus clients through Our Globant's to the duration executed biggest years. Walt delivery. grew and Among X% is testament Disney of partnership on of XX quarter-over-quarter. developing relationships is

XXXX, the and we same to traction in in growth quarter compared XXXX. every QX of As better region see

quarter this XX.X% was Our year-over-year. best-performing growing region Europe,

As region. we our the we by here deal and possible able announced in land largest growth our May, company's in delivery network history, call earnings were to of in scale our the made our in last

North region Our year-over-year; Latin and by grew America, New XX.X% XX.X% America year-over-year; by grew X.X% year-over-year. Markets

Globant's Latin and addition, been. XX.X%; it most APAC and our stream XX.X% at the diverse America at X.X%. makes America XX%; at by ever revenue; revenue Middle up of In Europe now global has East the North is followed

the basis growth. all double-digit up growth. for, Of positive verticals X shown verticals on services we X are have Year-to-date, year-over-year provide X and industry a experiencing

entertainment and Middle is and services period year-over-year. very a our increase our strong revenues to the client, Disney, is and compared hospitality, travel quarter, momentum along showed verticals last with work the same up grew in delivering XX.X% the manufacturing up retail top we're year-over-year. was XX.X% with financial year. XX.X% Media expansion of sports XX% East. a in on bank's insurance The in our with and back vertical year-over-year. performance This This fastest-growing Consumer, and

our this XX,XXX figure, count QX, total are of professionals. head is Of As year-over-year. XX.X% XX,XXX up IT Globers,

basis XX quarter-over-quarter. up XX.X%, currently points Our is utilization rate

is demand. As we hiring meet to look our our forward, expanding to set increase

attrition over last level XXXX. currently is XX is in down Our the this from months XX.X% QX X.X%, at

Kind impact initiative continues and Finally, our communities. our develop Be to

fusing to efficiency. Globant equip stakeholder sustainability training developed that skills knowledge to software learned environmental from guide our with As which for with create essentials, sustainable aims minimize business, our Green impact necessary development. design and sustainable has IT work We a the to and designs energy crafted sustainable our ecosystem we optimize

with largest of Udemy, partnered learning for free. a online global to have training to We offer platforms, world's also the audience this one

worldwide. for they bring clients over Technologies in solutions In to their communication July, Through this more to people inclusive for to the our Asteroid our improving Asteroid fund, capital can technological platform, consumers. XXX,XXX inclusive life that closer investment, a seed speech so Globant disabilities service invested disabilities. dedicated provide their of facilitates company Hablalo, Technologies, investment to various a with accessibility quality corporate Ventures, with we people these With aim

for our you with that, will hand to over financials. being it Juan again. Thank share us I With to

Pato. Thank you,

We are today. of results our very proud

growth results aligned and guidance, our First, the second with strong are showing quarter profitability.

trends see AI-related strongly, been in and the first providing demand have half, bookings in Pipeline are the Second, projects gen optimism while business. positive future tractioning opportunities. we solid about

outlook are adjusted a raising and for and maintaining EPS year, we guide. our we margin Third, strong the are

more me color. provide Let

board. Second were strong quarter results the across

XX.X% our up guidance. million, $XXX.X line reached year-over-year, revenues in with QX Our

growth at saw We year-over-year. vertical company year-on-year the perspective, a from exchange, of Excluding and in the growth geographic growth XX% trends constant currency negative terms quarter-on-quarter split. both stood revenue accelerating QX. organic in XX.X% a posted Also, impact foreign a from

XXXX. record highs, trends booking the year. and to reinforce up QX are outlook with compared the second We Bookings in adjusted pipeline remains the half at XX% of first half closed for our profitability Our currency and margin an of levels ability This the XX.X% context despite them both gross high margin up adjusted and current fluctuations. of an profit basis XX points of operating maintain reflects to XX.X%, our quarter-over-quarter.

diluted million stood net net year-over-year. income $X.XX, quarter, $XX.X profit Our in with XX.X% effective XX.X% adjusted was the an margin. of at Adjusted tax rate an for XX% adjusted resulting up EPS

for $XXX.X or and balance Our With million remains with cash. quarter $XX.X drawn strong, flow in funding $XXX business, growth cash of $XXX the in given seasonality in our facility, half sheet ample cash initiatives. as our have substantial XXXX. Also, we million to credit ending from generate we million of usual, free expect the net of second amount a short-term million investments the our revolving

line. Looking incremental on and Recent and approximately organic raising we the continue imply to trends, a are outlook. remainder on our we year-on-year our ahead, headwind reiterating for top slight EPS FX terms, expect guide of growth in margin especially a XXXX, FX basis XXXX. constant for constant LatAm, currency XX.X% In our currency

benefit to the we will able be this some quarters. following of However, cost over capture

million We to between be XX% $X.XX revenues and is million expected is for rate with shares. IFRS assuming in adjusted XX% the margins the range. XX.X be to project range XXXX $XXX of average QX XX% diluted XX%. of effective operating third now quarter expected to Adjusted in The million EPS the to income $XXX $X.XX, to

the unchanged fluctuations. year, $X.XXX revenue our billion is exchange billion, full guidance for the adjusting $X.XXX when midpoint For to foreign at

full the range. of XX rate be operating forecasting XX% in the year tax effective XX% of headwind expected our IFRS income XX.X%. range basis XXXX We adjusted is are to anticipate We to margins in FX to XX% points guidance. in

relative be $X.XX, XX.X to assuming to between improving our for shares diluted EPS $X.XX our Finally, outstanding average year, million is to expected previous the adjusted guide.

improving reiterating continued look throughout the you updating resilient outlook progress to progress remain Thank your a encouraged business We line an the for margin you strong in support. bookings, top we summary, In our solid with for year. adoption on while growth. pipeline, AI forward and

Huang we'll [Operator everyone. With of that hi, the and Instructions] in from Juan, from the line you, question Tien-Tsin Thank today first mind, take from JPMorgan.

-- on in raise with the start currency the maybe but the Just outlook margin. just the of constant reiteration the on I'll the guide

But versus well? wanted Just or revenue now the I Can confidence we're -- some days just bookings to the also rehash know up ago? that outlook. margins check how of what's informing are first you through the has have changed the XX level as explaining driving half. the that

Sure. Tien-Tsin, the for you, Thank question.

terms, year little to growth for said, XX.X%. in going reason we be as was at depreciation our XX.X%. you primarily So constant and reiterating as in are the bit that The currency for the well. dollar Mexico In it's Colombia a and Brazil

mean has I cost -- the from same us margins. of on the last that side, revenue so terms time quarter, it benefited has also In our at impacted this from the guidance

our part increase also revenue in revenue basically, we for impact are front, of FX from half better-than-expected gross head, seeing a the we on of the of the operating quite well FX. So have which and year. to slightly second per bps of comes margin side It we the the that the are the we But as margin from -- year this is has as our this XX quarter. increase grown for back nicely comes said,

pipeline, Yes. too. remains it And quite and strong regarding bookings,

So good that of we Tien-Tsin. we in confidence guidance are provided, the

next from Goldman The line question Sachs. Jim comes Schneider of the from

the talk can any lack to Is those if gen to before the about beyond that can to you function lack -- And the And scale is stack on issues how generative transformations the corporates revenue? that bigger projects need scale there? of what AI? scale other wondering longer of are scale comparability larger be of about about maybe in data or proof taking Martin, projects -- be of in your was comments seen a you've can resolved of among terms maybe of are magnitude And things clarity end AI expand, terms I of you the back in undertaken? or large extent maybe how on to of about concept. into what more many

then much I the Jim, so let thank first to to answer answer. the it question. Diego you I part, will for will and

And demo, easy. cases. great. looks it growth of AI-related on our to the on in around use generate trying for it's are great as approximately that for of demo and project and a good I to many thing AI very seen understand the a many really And mean growth companies of many terms them of projects, are I have looks -- implementing still stage. The when a customers they're year-over-year. like mentioned, about in XXX% still pretty still thing them, AI analyzing still is are our the We media, it are of social really kind an you lab projects,

because when a class, to back. And want requires, be disappointingly on to as after-training a if I be to lot lot of answers that very data mentioned, complex. not you hackable. requires enterprise much curated. misleading and the It are supervision they well can to of give Now the the take be models more model projects the you it's it as mentioned, that tends It tends

processes those definition. are So by long

need was we App Store digital or projects started first 'XX, happen. when born remember in to transformation XXXX Apple to then in from XXXX. the So only the That And big you very it's time. be are in it compared But technology to to now. this only seeing remember, what new has long right the going X.X this think years state I that

the time still there's corporations use to believe cases. I understand for So

it to for and that. Diego, helping understanding do time to of into will longer-term take course, think process. they on lot some don't want think where And we easy that? an on many you I be will are Of investment. But on full complement of them apply much course, And see to go of of investments them before a to situations. I it the ramp plans it starting doing But in we are starting the up

sure. Yes,

things and machine So the AI how the We've both one on [indiscernible] to positive or gen we things being clients. There's an which seeing of been trend increase of traditional we've the want learning. of on I is our is a course, sides. between approached terms projects, separate new in AI, seen are from

now with sides, This not meant on are of course, approach. to to live that implementing want an and projects experiment We productive. be both this. are I is

with of with And of curate actually with that from data things to pharmaceutical and A for ton especially dealing productive. we've example, done AI. to label a lot mining and operations now This and streamline studies and data, copper AI conducted optimizer companies are is top gen doing models on are that being calculator XXX AI on we and of with for it. gold company, sustainability a

ton a actually mentioned see I lot I doing of -- this, that software think we're we that fact, productive. So I mention things like which are are agents more with great. in to for would is working development. We a didn't

major X We estate also their agents for have real to companies all implemented operations. streamline

So live. this is actually is not POC. This

I terms maybe volume So sheer terms like are clients, more, in for again, see in but of scenario. to are the approaching trend we what the I see how and doing of of much our we super would positive this, a

that in in and last the certified have most that all want you upskilling we also I we do reskilling the to remember you And XXXX, the the Globers AI. that Also call, earnings challenge. think in I been we the about And of something Globers? mentioned -- explained

important. that think really is I So

of what coming and talent talent. than is more then where of looking are We the terms terms we're and at in recruiting that in for prepared the

what for clients are So mindset, the all is this having important companies that really needing. I the AI are following and think we this us,

line comes Nolan The of next William Maggie from the from question Blair.

you Is to now? head pricing is overall, in competitive So maybe you are the per dynamics strong you how just historical? the maybe any improving that grown experiencing had revenue characterize Or or compared environment, power pricing right would year-over-year. mentioned environment

these pricing mix. with days, low but combine able tough we different that single-digit were we achieve It's a And to some growth.

we And on-site we've nicely network, been which also presence. our growing delivering the per has a Europe, In to some are also creative deals terms that GUT in able well. of head were as services, higher of our we increase with revenue

giving year-over-year growth. our we So It's pricing some and get able the to almost some factors relationships. X% tough positive of per you in combination but market, still head of a those is revenue are being customers

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

could Hope engineering hear the comment about on delivery. evolving discussions agents and you are AI seeing particularly dynamics latest appetite ask and AI can really work? the on and those you impacts around to the around how how you I include wanted gen me. you're contracting productivity, that, and client Can if

-- I to separate Bryan, want so separate things. Sure. again,

think the that. code teams, about things, Copilot a the there's you with field of on actual the I of public The productive teams large ton in On result, side large what information see base, generated the is is what beginning. very a than impact But is AI. there. code of XX% actually at Like been being impact the is the less by lot it's definitely communicated

which agent, super is the on automate. aspect, task actually The this automate second you're different a is fully flows. that new. depending has impacts agents of Remember type it wanting And to

about helping more not and individual individual making So efficient. it's that one

side things, test pretty that seeing the we agent developing, seeing been Like that with of benchmarks we've are results. the super conducting market. results what are above we've seeing we're amazing early the in been On we're

very, commit nice it as some especially Too looks to for far, very bug confident promising. super, But are a so for So like to early that will fixing type very teams, we number. results bring an this super example. tasks of

The next Kupferberg question Bank comes from Jason America. from of line of the

head on count. question X-part a had just I

positive just second first do year? is, then the count heads part part half kind half numbers. the in billable first The was is second think on second flattish. in of you of quarter expect the growth head the I And

bit, was high XX%. down about digits. a Just actually up looking India single quarter-over-quarter, think was I quite U.S.

were if those was call-outs for I curious regions. just any So there

the positive terms second the head additions, we growth about professionals net XXX sequential quarter, In are grew of count. continue by additions with having yes, net to IT of So continue and rest we year. expecting in for to expect

around we showing -- markets as we America. seeing Latin Colombia those And our reflection a position seen India all that in Latin base, terms company it's growth. U.S., the geopolitical and in the market. the it's there's to have a be, is and are leads continues to being the nothing noise the In we of out. good be relevant out that it that are somehow well of with case small most and happening varies by to the a us great In quarter, call and regions, world, player America place in of of but really Argentina, And

comes the The line next question from of Jonathan Lee from Guggenheim.

help the how unpack you seeing and some what customer perhaps you softness the for sequential cohort quarter? Can you're the the in customer into of of top thinking trajectory of given remainder X the the in year 'XX? are that And base about

was cohort, that talking Jonathan, the were you about? Which

X. Top

Okay.

So showed Top is sequential half growth, strong year. growth. numbers. And also really when it actually, which look I Disney, like second X, the you at are XX% year-over-year the of expecting good mean we a

the you have, is X actually in the going of also end, services cohort news. that good that. over industries professional laggards And X When there. look X, until you if look then at top the XX, that you what one see different is actually you by if X the over customer look to was at are see better several quarters, at that to we to we -- XX professional numbers explained and definitely spoke services sector to X times the among in few last there So X, sector you one the on of the as

not that really a It's be one for just particular to would nothing as saying customer like. still quite concerned. have So been we recovering is in while that industry one within we

Scotiabank. The line from Goyal next question Divya of the from comes

provide growth Patricia, different which and bit are growth color and you go-forward verticals verticals of the see some broadly And how the across segment to you little on provided a travel Could as you different in color you basis? more anticipate where the some regions. transitioning? do hospitality a

it's and has others. seeing your the are and course, for Thank also we growth of travel one biggest you Yes, Globant question. seeing customers the with that are okay, we are that for been in sorry. What years is top Yes, media the that have -- many And seeing have more we probably one with and than growing of of having many But growing. that interesting are is cutting -- are hospitality we the there many many really of relationship there, me, XX we we that the fast. have the thing industry, in in you we entertainment them been industries. hear is verticals clients of okay? Also, in the main most a

So is a they how change their -- travel on experience what contact building we together with and are an to the is them and with want customers experience.

their So can getting them. we terms the working -- with that in been that studios, what needs help AI how expertise. Reinvention very the we studios very what have And closely the are deep and have, and we are we with clients in of identifying

are. before, we I that industries going on of are are, and most industries we mentioning growing, where changes the continue we seeing the we were grow to as many in mean, we X So and where

comments. I may If a add couple of

mentioning of strongly that mentioned and and we've one X a mainly large we because in on We are the the of a closed, been growing transformational One is travel airline this, for deal you hospitality key Europe. vertical That's things. drivers. specifically big

Our airline the we latest in connected from vertical. the the segment. a with super, MENA solid Studio Reinvention experiences. we is business of in to That's actually studio one has AI And the super And hospitality is launched. have lot actually the do second that

in super solid how but tied growth, is it's the verticals. Globant explains that to those specific So

continues entertainment, as well Maybe complement business and to as media as our see to you growth on are also perform going further within sports. Disney to

and consumer seeing some growth. that BFSI, this only mean showing good quarter as delivering on technology the can professional in news positive actually has to some retail. we services, out said of see I basically momentum we before, industries of that's see but is mean, say that growth. growth. I good also the And also has some and underperformance, quarters also And are stabilized. The second not show telecommunications X we We several That going you're did in -- we coming there. QX, growth been

have So stabilized, telecommunications technology and Divya.

The from line Ramnani next question of comes from Piper the Sandler. Arvind

bigger kind have able way, years organic X what industry Just I wanted X%, really vibrating question But a X to versus looking been languished, currency but And to months you've while for minus But one right? for now this organic just of in the for grow to Globant's of able view in been the now to kind back, where starting right? broader going are quick X%, also I improve, the question not rest is X%. guidance X now growth. like question. target that to the the been constant overall an to on mean plus is where at X constant growth was X of like been Or I rates in outpace be discrete we now year Like had currency market, that the industry? I'm permanent Globant's of your X%, in of any industry you XXXX, sort ask discrete X it's idiosyncratic right? you years the is or have

organic the to organic Martin the that growth Basically, take So I'll -- currency in number the of complement. Difficulty] constant constant growth ask first and for we [Technical terms I'll -- part, then

back. We're

basically... So

mind don't -- wasn't hear you if of any Juan, I starting from it. to able

Yes, I start again. will

growth, for basis look When the we of the so for growth. XX.X% quarter are the in May. you -- impact. organic provided XX.X% back our with XX.X% growth currency we So total Back which currency at look currency growth points constant you with May, we at sorry, growth, year, this XX.X% guided XX that back basis for same we constant the of when -- number at number impact XX the are is points constant in year, quarter guiding

for the is is basis FX that which change in of So to in XX.X%. we basically, bit what of of impact points out is income our is XX little that good to additional The impact, Brazil. moved XX.X% operating able increase with year. happening were Colombia guidance and the a We part Mexico, aligned

one same the for are year. to guidance third to XX% the fourth We for guidance XX% basically the is quarter and quarter, at now implied there also the XX%. the XX.X% for And the

overall know, talk little in the you I terms to want FX in impacts bit... picture this quarter. And that's if don't Martin, So of a

to rates main past. The and decisions still let's growing X%, plus or took when very minus healthy things executing it X% this and think, the in industry the vision powerful we we our that is and customers, relationships leverage why day is, beloved have run, at that reason, pretty have been take try to able extremely is we to when the that in I to we're say that in say, sell mean is we consistent a the more the our minus you every No. manner. X% long I being

in not into is been second which were expanding markets we before. that we The reason have present

some Oceania, So now Middle time us the for big East, we that before. that in we growth into are into didn't And other additional entering fuel countries a providing in is like Asia. an have

is pretty still of largest a things, is our have So the rest. customers, when the from then you which plus you up very healthy, those organic different performance which growth add X

way Another market could say understand Globant is share. to that be gaining that to

a not growing, the we When are market extremely a important per XX and before, still years. the see And the And you're delivering that head also very That levels. winning customers. On the is of explained see is you it value is Juan strong space you're growth revenue the head. last very then that, for have we this market to the revenue good to per While that increasing our all that growing on for preparing AI us. of healthy testimony top and you been share. very

by ambition that's good a by Globers, think created, the -- with of powerful very all reinvent and our way technology our growing, reinvent that very why of a our a Globant fueled is high I connect the summary the culture reasons we way customers, is that with So stakeholders. with being

we extremely next performance are hopefully performance, for we the that happy with So driving and on keep year, kind will too. of

And you suggest I year, also if seeing faster the you bookings which But business bookings next should various revenue revenue bookings does growth, one, Perfect. on sort just is the of XX%, can, one comes duration. with that the side? had quick be of this organic acceleration I kind growth than currency constant is in growth. fastest know And of

talk to going rates world, still lot detail. early somehow of on and XXXX mean the of an a it's will have I elections, around about I think things in there's impact. things lot a that

sequential QX, good that into to of it's also, think growth course, during see I into QX and well. QX as

be service So expanding will us to on into But globally next we focus keep to to that leave to And growth. able put to continue to that, strengthen numbers to that's new I think offering, I delivering think while continue tap it's it we need year. industry-leading increase, markets. help why a -- I our on to for

[Operator Kennedy the of next Instructions] question Sean from The line Mizuho. comes from

was reports a So a large that to money there raise organization enhance expand of direct-to-consumer its sports streaming and amount to service. significant looking were

you're broadly in investment is my So theme that experiences a DTC across second in is, question seeing streaming? customers, speaking, a that your wave digital

entertainment things are with There's connect we -- the space. that. way seeing of trying are their they a consumers. I of to seeing happening companies like on lot lot And reinvent a we

Specifically subject to lot are entertainment mentioned, in a But that give on answer and have I on space, no specific media you yes, things of general, happening. the the you.

up you on to know, that? don't if Diego, want add I

exactly entertainment, even within Sure. are Direct-to-consumer Disney media that doing also the it's though channels. a different and they consolidating trend. is

direct-to-consumer, sports being actually of Within of exploring one clients. of This the that. different our sports, public. and course, are yes, it one FIFA, Many a is is them is organizations trend.

X. Formula

X, Formula too. So

looks is mark So for on actually, yes, and this that, it's we question is still that to demand that have only consolidation. direct-to-consumer -- -- see, my is

those see things together. And so we'll play how

quarter. on job Nice the Great.

Sure.

you. Thank

Thank you.

Thank you.

next question from Surinder of the The from comes Thind Jefferies. line

you this Diego, is actually. for question

of of commentary in internal productivity earlier on up initiatives. about following just Just AI improvements kind your the some

between disconnect done? potentially in there space you XX% it of when talked ] public any talked mean improvement. kind year, last marks terms [ in the I seeing. the a about measurements we color mentioned what's you that what or remember provide of Can about you've You I productivity between you're incremental what getting about to

any be helpful. just would So color

is that correct. Yes,

actually, but environment. Everyone else talking like was when -- a now. for is -- XX% looking saying is numbers, I for those -- those productive everyone about around like So say I numbers everyone was

increased want developers like tools -- senior measurement individual, teams. We've the only with brings like is there's good of super the be spare for performance it technical it developers it's tools. done and But more so it's not to a looks but heavily. junior seen don't means developers good, bore in of performance but of those quality if It type have the and doesn't say major more code collective compared that of car. without I relying problem not only it type car individual, the So fit improvement the performance of it's But everyone, quite a not and they very you junior a what on super unit, to would part. as those what

kind to of overall So things individual. it's like measuring that What's necessarily And when all team out us, don't performance. together, tricky. of we're important you not they It's up. it's that add put

confirm are can improvement improvement it's flows what high, they specific like to The like such an tools that, is type for developers, better tasks and it's complete it's what for as to generation. give what's code some -- XX% as will that which task. regards and you as around interesting. Numbers, But XX%, that such with play for I even actually individual fully of agents trying optimize explore which testing, for you're super said, than is I tooling Copilot. lower typically actually unit to think we I do trying

the yes, in way future. started right room We're we are still, confirm We'll there's -- improvement see what that it think right confident a how we can the few And sorry. talking towards I So quarters of a for the lot pretty direction, I develops. back. in headed

comes the Leonardo Olmos next The of line question UBS. from from

the on results. great Congrats

So that? rate. right? we as here an quarter-on-quarter with -- an also my another think improvement -- idle the regarding capacity regarding seeing What such rate, companies attrition again you Do sense? on We be the impressive demand is some be in question rate the attrition the could second been that services. the back our 'XX, at IT in on reduction overall we've your and you developers? utilization is for point, expect saw improvement increase in an several there half for do cover the What Accenture is could of How or

Pato?

terms right right pretty what is are Well, attrition, the Yes. low now of now. as seeing in we mentioned, you

demand in are Of very course, the is from What little has quarter, been us. is for very, we low high last it raising rates. a very still the still we're seeing that but

that So Juan many before. we countries continue in of the hiring explained

in years. places another the is in the we're of And We we are couple strong been have growing. very where LatAm as last of India course, of that

culture and with generations pretty market -- what new the -- the for talents Globers, terms numbers the -- and polls great people, the really still In probably designers. the mentioned. is our with and happy for and interviews of making the very the are is rest the culture that are engineers even that they're we seeing you we that a year the we have appealing I much of But are we and and all we in as people of stable staying course, have is mean growing,

and mean, things perspective, stable, from same are I So kind continue we now. are to of in I you have that these think of pretty numbers order seeing different the kind doing Globant's that numbers

from next comes The of question line Kapulskis Thiago Itau. the from

My said the have to get a what I have it's clear. data on migration. cycle, just a follow-up part from right? long is guys AI that So you it guess you

cetera. have et You approving, test,

to Just it happen the It's cycle? X-year envision up? ramp cycle. X-year? to want Is to you How a the a Is for how just understand better about a what like budgets -- it little bit in and and previous as hypothesis the a is bad I bottleneck there's data or was it don't Is Like bottleneck? like know. concept the testing of proven, ramp-up? it a kind cycle? getting data then as a needs

framework to details If little you bit some be there get great. better us cycle there, would just provide of could the it a

Once are the right? finding not what AI on take projects that cases. finding and a the and first that are time and much use validating was spent to cases would effects longer than use takes I then most about it think has these validated, -- takes use an Diego. on application is I been for Yes, I Look, will projects part, bit ChatGPT, then being using projects, it and on the based talking mean expects many that. -- the really getting everybody but I have data the longer little enterprise-grade information. Also, cases let delayed, years real regularly using but now everybody

bottleneck. data So days. I projects they're accelerated think a these think don't I are being

like maturity year the is and use scaled. don't until know use go the more process X X detected, We is then think to I use it's the case or may that And maybe take through proven a corporation case years. is case that needs the exactly.

to has longer. still Following much going other scale. be shorter those at happen things But cycles, that. to it than I think much unclear a start it's are larger taken But cycle this will when

with and -- have we have more where everything agents, with automation been that now the many processes how the with pretty platforms much we staffing of using to Now that we it's at up are people -- ended of AI projects. Globant we using in past, the have, connect we the And -- do. that the even with in acceleration

our to customers area our do for cases creating So and And as aim you company. of industry. sooner, that? to productive, the customers many the Globant, CTO in and those to is Studios Reinvention same accelerate need to that to we we we better. But a how is has by on that Diego, very of use that's to operate. clear, the doing AI in specific in simple company, more the on the the be which And a we proactively of every at are way mandate provide the way, use there which of we reinvention keep must have these That's least AI expand Diego I at studios in AI of industries -- think our and the to want be mandate launched single

sure. Yes,

of not clients So question, embracing first comes to towards yes projects. Lots a it our a actually when more as as back of is a care but are taking original data, going AI-related that. there step the blocker to actually

for is seeing data an So strategy. the data we've whole increase their demand, and been covering architecture on this

-- I did lots aspect, of are the need. and think was care now identifying companies they of take not that it

for change marketing I attrition of a experimentation. a is every AI know. has pains research of what optimize? that's of a we talking How opportunities see my the AI. I customer say that. can work, capture also et a I about and clients? the a gen and exploratory had can change newer So I those use we've campaigns? been when used do that cetera, engaged, single there's I this? lot it a lots now like companies They in with How And my first vertical technologies approach. But the thing. Then a et powerful and optimize program? can mean we can think cetera, What of and money industry can to there? super spend do POCs, money. lot tool, given industry productive right? make to How very And interesting the most we what problems, an is said, a it How How it What powerful. lot tool? Pharmaceutical for spend lot a this is ton which acquisition This a and So approach identifying are the an do of loyalty Martin industry certain thing on I I more landscape, solution go-to-market address funnel? I I can tool. actually don't if with have things, enterprise-grade And that, solutions. my How a are technology, things? I is solutions.

what that's we're So doing.

Q&A all it remarks. to So Thank for for today. that some joining. closing you all be over Martin And for I'll session will hand the now

Cheers. So you much, see support forward your Bye-bye. and everyone. and you thank to you coverage very quarter. for looking you. Thank next Thank

Bye.

Bye.