Yahoo Finance

• Annual Revenue: $2.4 billion, up 15.3% year over year.

• Q4 Revenue: $642.5 million, up 10.6% year over year and 4.5% quarter over quarter.

• AI-Related Revenue: Over $350 million in 2024, up 110% from 2023.

• Adjusted Operating Margin: 15.7% in Q4, highest in the past eight quarters.

• Adjusted Net Income: $78.7 million in Q4, with a 12.2% adjusted net profit margin.

• Adjusted Diluted EPS: $1.75 in Q4, up 8% year over year.

• Full Year Adjusted Diluted EPS: $6.40, up 11.5% year over year.

• Free Cash Flow: $101.2 million in Q4; $138.1 million for the full year.

• Client Growth: 20 clients generating over $20 million annually, up from 16 clients a year ago.

• Regional Revenue Growth: New markets region up 89% year over year; Europe up 23.3%; North America up 6.5%.

• Headcount: 31,280 total employees, a 7.3% increase over last year.

• Utilization Rate: 79.3%.

• Attrition Rate: 9.5%.

• 2025 Revenue Guidance: $2.635 billion to $2.705 billion, representing a 9.1% to 12% year over year increase.

• 2025 Adjusted EPS Guidance: $6.80 to $7.20.

• Warning! GuruFocus has detected 4 Warning Signs with GLOB.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Globant SA (NYSE:GLOB) reported a strong revenue growth of 10.6% year over year and 4.5% quarter over quarter, reaching $642.5 million in Q4 2024.

• AI-related projects contributed significantly to revenue, with a 110% increase from 2023, totaling over $350 million.

• The company achieved a record annual revenue of $2.4 billion, marking a 15.3% increase over the previous year.

• Globant SA (NYSE:GLOB) expanded its client base, with 20 clients generating over $20 million in annual revenue, up from 16 clients the previous year.

• The company's adjusted operating margin improved to 15.7%, the highest in the past eight quarters, reflecting a 40 basis point increase year over year.

Negative Points

• Globant SA (NYSE:GLOB) faces challenges in Latin America due to political and macroeconomic volatility, impacting demand in regions like Mexico and Brazil.

• The company anticipates a more muted start to 2025 due to lower billable days, negative seasonality, and project roll-offs in the sports vertical.

• Revenue from the top client, Walt Disney Company, is expected to decline slightly in Q1 2025 after a strong investment phase in H2 2024.

• Pricing remains challenging, with only neutral to low single-digit price increases expected, particularly in cost-saving projects with high competition.

• The utilization rate decreased slightly to 79.3%, indicating potential inefficiencies in resource allocation.