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Globant GLOB reported fourth-quarter 2024 non-GAAP earnings per share (EPS) of $1.75, beating the Zacks Consensus Estimate of $1.74. It reported earnings of $1.62 per share in the prior-year quarter.
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Revenues in the quarter totaled $642.5 million, lagging the Zacks Consensus Estimate of $644.8 million. However, the top line rose 10.6% year over year, driven by an increase in AI-driven services, expanding client engagements and a strong global presence. Continued investment in AI bodes well for the company’s prospects. Over the past decade, it has built deep AI expertise through its AI Studios and the Globant Enterprise AI Platform. With the combination of cutting-edge AI solutions and creative technology through Globant GUT, GLOB continues to solidify its foothold in AI-driven business verticals.
For the year ended Dec. 31, 2024, GLOB served 1,012 customers. Of these, 20 generated more than $20 million in annual revenues. For the same period, GLOB had 346 clients that brought in more than $1 million in annual revenues, up 11.2% from the year-ago level. In 2024, AI-based projects brought in $350 million in annual revenues, up 110% year over year.
Its top customer, top five customers and top 10 customers accounted for 9.1%, 19.8% and 29.3% of revenues, respectively.
Segmental Details
Revenues from Media and Entertainment (20.6% of net sales) were up 9.7% year over year to $132.3 million. The expansion was due to higher revenues from its biggest client, the Walt Disney Company, with 23.7% year-over-year growth.
Technology & Telecommunications revenues (10.4%) inched up 0.4% year over year to $66.9 million.
Travel & Hospitality revenues (13%) soared 35.3% year over year to $83.3 million.
Consumer, Retail & Manufacturing (18.3%) grew 5.2% year over year to $117.3 million.
Globant S.A. Price, Consensus and EPS Surprise
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Professional Services (9.4%) were down 8.8% from the prior-year quarter to $60.7 million.
Banks, Financial Services and Insurance (20%) were up 23.9% year over year to $128.5 million.
Healthcare revenues (7.4%) grew 7% year over year to $47.2 million.
Revenues from Other Verticals tallied $6.3 million (1%), up 2.3% year over year.
Region-wise Performance
Regarding region-wise revenue distribution, North America led with 55.2% of revenues, driven by the United States. Latin America, led by Argentina, contributed 20.4%. Europe accounted for 17.7%, with Spain as the top market. New Markets, including Saudi Arabia, represented 6.7%.
The highest growth was driven by new markets in the Middle East and APAC, achieving an impressive 43.8% sequential increase and an 89% rise year over year. Revenues rose 23.3% in Europe and 6.5% in North America, with Latin America falling 1.3% year over year.