Globant (NYSE: GLOB), a digitally-native technology services company paying attention on creating digital journeys, recently declared results for the 3- months finished March 31, 2017.
1st-quarter 2017 highlights:
- Revenue raised to a record $88.70M, representing 21.00 percent yoy development.
- Non-IFRS Adjusted Gross Profit was $34.60 M (39.00 percent Non-IFRS Adjusted Gross Profit Margin), a boost of $1.60M contrast to $33.00M for the 1st– quarter of 2016 (45.00 percent Non-IFRS Adjusted Gross Profit Margin).
- Non-IFRS Adjusted Net Income was $9.70M (11.00 percent Non-IFRS Adjusted Net Income Margin), a boost of $1.30M, or 15.70 percent, contrast to a profit of $8.40M for the 1st- quarter of 2016 (11.50 percent Non-IFRS Adjusted Net Income Margin).Non-IFRS Adjusted Diluted EPS was $0.270 per share (based on an average of 35.60M average diluted shares), a boost of $0.030 contrast to Non-IFRS Adjusted Diluted EPS of $0.240 for the 1st- quarter of 2016 (based on an average of 35.20M average diluted shares).
- “Q1 resulted in another strong set of financial results. Our revenues for the quarter amounted to $88.70M, representing a robust 210.00 percent yoy development. Our 50.00 squared program continues to execute according to our expectations. Our European operations extended aggressively contrast to Q1 2016 and with the recent acquisition of Ratio, we are creating a new hub in Seattle to complement our operations in the US. This quarter we added a number of high potential accounts in the financial industry and the media and entertainment industry, among others,” said Martín Migoya, Globant’s CEO and co-founder.
- “Throughout Q1, we carry on to see a strong demand coming from companies looking to achieve digital transformations. Organizations keep searching for ways to make the optimal digital journey for their clients through emerging technologies, such as artificial intelligence. Our Studio model continues to be a key driver to hold a leadership position, making us an ideal partner when facing these transformations,” added Martín Migoya.
- “Q1 was another quarter of revenue development above 20.00 percent and, more importantly, one where demand for our services continued to expand. This translated into an aggressive +224 net headcount increase throughout the quarter. Political and macroeconomic uncertainty in our target markets has diminished and we are optimistic for the rest of the year. Regarding margins, we practiced some FX headwinds throughout Q1 as many of the currencies of the countries where we operate appreciated against the USD. We will continue diversifying our talent base across the regions, managing carefully our SG&A while investing in training for the long term,” explained Alejandro Scannapieco, Globant’s CFO.
- Globant accomplished the quarter with 5,855.00 Globers, 5,421.00 of whom were IT professionals. The geographic revenue breakdown for the 1st- quarter was as follows: 78.90 percent from North America (top country: US), 11.20 percent from Europe (top country: Spain) and 9.90 percent from Latin America and others (top country: Chile). 88.60 percent of Globant’s revenue for the 1st- quarter was denominated in US dollars, and the remaining 11.40 percent was denominated in other currencies, counting GB pounds, Euros and other Latin American currencies.
- Throughout the 12.00 months finished March 31, 2017, Globant served 336.00 clients, 67.00 of which accounted for more than $1.00M of Globant’s revenues. Globant’s top customer, top 5.00 clients and top 10.00 clients represented 9.70 percent, 31.10 percent and 43.70 percent of 1st- quarter revenues, respectively.
- Cash and cash equivalents and investments as of March 31, 2017 decreased to $41.20M from $59.90M as of December 31, 2016, while borrowings amounted to $0.20M. Current assets as of March 31, 2017 amounted to $130.20M, accounting for 43.40 percent of total assets. Finally, as of March 31, 2017, 34.70M common shares were issued and outstanding.
2017 Complete Year and 2nd– Quarter Outlook:
Based on current market conditions, Globant is providing the following estimates for the complete year and the 2nd– quarter of 2017:
Fiscal year 2017 revenue is estimated to be between $386.00-$394.00M, implying 20.80 percent yoy development at the midpoint of the range.
Fiscal year 2017 Non-IFRS diluted EPS is estimated to be in the range of $1.220-$1.3 (assuming an average of 35.80M diluted shares outstanding throughout 2017).
2nd– quarter revenue is estimated to be in the range of $95.00-$97.00M.
2nd– quarter Non-IFRS diluted EPS is estimated to be in the range of $0.260-$0.280 (assuming an average of 35.70M diluted shares outstanding throughout the 2nd– quarter).
Conference Call and Webcast:
Martín Migoya and Alejandro Scannapieco will talk about the Q1 2017 results in a conference/meeting call recently begining at 4:30pm ET.
Conference call access information is:
US +1 (888) 346-2877
International +1 (412) 902-4257