In This Article:
Globant GLOB reported first-quarter 2025 non-GAAP earnings per share (EPS) of $1.50, missing the Zacks Consensus Estimate of $1.58. It reported earnings of $1.53 per share in the prior-year quarter.
Revenues in the quarter totaled $611.1 million, lagging the Zacks Consensus Estimate of $622 million. However, the top line rose 7% year over year, driven by secular growth trends in AI-related opportunities and healthy business momentum. Globant’s management highlighted the company's intensified focus on AI and automation. Among its visions is 100-squared client-centric model, which is a strategic initiative aiming to maximize value from 100 top clients through cross-industry innovation and subscription services. Continued innovations in AI Pods, Enterprise AI Platform and AI Studios augur well.
However, GLOB is facing a tough macroeconomic environment. Since February, the risk of a U.S. recession has increased. Consumer spending is down, and trade tariffs have created uncertainty for many customers. In the United States, pipeline conversion has slowed, and growth in some Latin American countries has been weaker than expected. Management had projected first-quarter revenues to be between $618 million and $628 million.
In response to the mixed performance, GLOB’s shares plunged 30.1% in the pre-market trading on May 16, 2025. Shares of the company have lost 20.8% against the Zacks Internet- Software and Services industry’s growth of 32.7% in the past year.
Image Source: Zacks Investment Research
For the year ended March 31, 2025, GLOB catered to 1,004 customers. For the same period, GLOB had 346 clients that brought in more than $1 million in annual revenues, up from 318 last year, indicating a deepening enterprise foothold.
Its top customer, top five customers and top 10 customers accounted for 8.8%, 20% and 29.1% of revenues, respectively.
Segmental Details
Revenues from Media and Entertainment (19.7% of net sales) inched up 0.3% year over year to $120 million.
Technology & Telecommunications revenues (9.5%) fell 7.1% year over year to $57.8 million.
Travel & Hospitality revenues (12.7%) soared 24% year over year to $77.8 million.
Consumer, Retail & Manufacturing (18.5%) grew 3.5% year over year to $113 million.
Globant S.A. Price, Consensus and EPS Surprise
Globant S.A. price-consensus-eps-surprise-chart | Globant S.A. Quote
Professional Services (10.2%) were down 1.1% from the prior-year quarter to $62.5 million.
Banks, Financial Services and Insurance (20.7%) were up 23.1% year over year to $126.2 million.
Healthcare revenues (7%) declined 1.2% year over year to $42.6 million.
Revenues from Other Verticals tallied $11.2 million (1.8%), up 31.2% year over year.
Regarding region-wise revenue distribution, North America led with 55.5% of revenues, driven by the United States. Latin America, led by Argentina, contributed 19.6%. Europe accounted for 18.2%, with Spain as the top market. New Markets, including Saudi Arabia, represented 6.7%.