Globant (GLOB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $587.5 million, up 18.1% year-over-year, with strong growth across all regions and verticals, especially in media, sports, and entertainment.

• AI-related revenues grew nearly 130% in the first half of 2024, with over $150 million in AI workload revenue, reflecting significant demand for AI-based solutions.

• The company marked its tenth anniversary as a public company, delivering over 1,800% shareholder returns and 15x revenue growth since IPO.

• Served 958 customers with over $100,000 in annual revenues and increased accounts generating more than $1 million to 329, up from 283 a year ago.

• Recognized as one of the fastest-growing and strongest IT brands globally, with a blue-chip, recurring customer base and a founder-led management team.

Financial highlights

• Adjusted gross profit margin was 38.1% and adjusted operating margin was 15.1%, both up 10 basis points quarter-over-quarter.

• Adjusted net income for Q2 was $66.9 million, with an 11.4% adjusted net profit margin.

• Adjusted diluted EPS was $1.51, up 11% year-over-year; IFRS diluted EPS was $0.87, up from $0.85 in Q2 2023.

• Ended Q2 with $180.4 million in cash and short-term investments, and $54.8 million in net cash.

• LTM Q2'24 total revenue reached $2.3 billion, with a 29.9% CAGR from 2014 to 2023.

Outlook and guidance

• Q3 2024 revenue projected at $611 million–$617 million, with adjusted operating margins between 15%–16%.

• Full-year 2024 revenue guidance is $2.407 billion–$2.421 billion, with 70 basis points of FX headwind.

• Adjusted EPS for 2024 expected between $6.30–$6.50, and adjusted operating margins in the range of 15%–15.5%.

• IFRS effective income tax rate for 2024 expected to be 22%–24%.

• The company expects continued growth driven by digital transformation trends, generative AI adoption, and expansion of digital business models.