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Globant's (GLOB) Q2 Earnings Beat Estimates, Revenues Up Y/Y

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Globant (GLOB - Free Report) reported second-quarter 2024 non-GAAP earnings per share (EPS) of $1.51, beating the Zacks Consensus Estimate by 0.67%. It reported earnings of $1.36 per share in the prior-year quarter.

Revenues in the quarter totaled $587.5 million, almost in line with the Zacks Consensus Estimate. Total revenues rose 18.1% year over year. The uptick was attributable to solid momentum across most of the business segments. Management highlighted massive growth of 130% in AI-related sales in the first half of 2024. Its top five customers and top 10 customers accounted for 8.3%, 21% and 30.3% of revenues, respectively.

For the year ended Jun 30, 2024, GLOB catered to 958 customers. Among its clients, 19 generated more than $20 million in annual revenues. For the same period, GLOB had 329 clients that brought in more than $1 million of annual revenues, up 16.3% from the year-ago level.

It ended the quarter with 29,112 headcounts, an increase of 12.2% year over year.

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

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

Segmental Details

Revenues from Media and Entertainment (22.7% of net sales) were up 20% year over year to $133.1 million. The expansion was due to higher revenues from its biggest client, the Walt Disney Company, coupled with steady momentum in the sports vertical in the Middle East.

Technology & Telecommunications revenues (10.6%) were up 4.3% year over year to $62.2 million.

Travel & Hospitality revenues (10.9%) soared 58.9% year over year to $64 million.

Consumer, Retail & Manufacturing (18.6%) grew 38.7% year over year to $109.1 million.

Professional Services (10.9%) were up 0.9% from the prior-year quarter level to $63.8 million.

Banks, Financial Services and Insurance (17.8%) were up 11.6% year over year to $104.5 million.

Healthcare revenues (7.2%) declined 1.3% year over year to $42.3 million.

Revenues from Other Verticals tallied $8.25 million (1.4%), up 1.5% year over year.

GLOB generated 56.3% of its revenues from North America, primarily the United States, 23% from Latin America, the top contributor being Argentina, 16.9% from Europe, majorly Spain and 3.8% from New Markets, the top country being Saudi Arabia.

Other Details

Non-IFRS adjusted gross margin was 38.1% compared with 38.3% a year ago.

Non-IFRS adjusted profit from operations margin was 15.1%, up from 15% in the prior-year quarter.

Adjusted net income for the period was $66.9 million, up 13.6% year over year.

Balance Sheet

As of Jun 30, 2024, GLOB had cash, cash equivalents and short-term investments of $180.4 million compared with $237.5 million as of Mar 31, 2024.

During the quarter, it generated $10.2 million in cash from operating activities compared with $36.4 million in the previous year.

Outlook

For the third quarter, the company projects revenues in the band of $611-$617 million, or 12.1% to 13.2% year-over-year growth. Adjusted profit from operations margin is anticipated to be in the range of 15-16%. Adjusted diluted EPS is expected to be in the range of $1.6 to $1.64.

For full-year 2024, management projects revenues within $2,407-$2,421 million, suggesting 14.8% to 15.5% year-over-year growth. Adjusted profit from operations margin is estimated to be in the range of 15-15.5%. Adjusted diluted EPS is estimated to be in the band of $6.30 to $6.50.

Zacks Rank

GLOB currently carries a Zacks Rank #4 (Sell).

Performance of Other Companies

BlackBerry’s (BB - Free Report) first-quarter fiscal 2025 adjusted loss per share of 3 cents was narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of BB have lost 46.6% in the past year. 

Badger Meter, Inc (BMI - Free Report) reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.

Shares of BMI have gained 26.1% in the past year. 

SAP SE (SAP - Free Report) reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.

In the past year, shares of SAP have gained 60%.


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