Globant (GLOB) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $2.4 billion in 2024, up 15.3% year-over-year, with Q4 revenue at $642.5 million, up 10.6% year-over-year and 4.5% sequentially.

• AI-related projects contributed over $350 million in 2024, growing 110% from 2023, with AI and creative studios outperforming company averages.

• Serves 1,012 active customers, with 346 generating over $1 million in annual revenue, up by 35 from last year.

• Recognized as one of Fortune's 100 Fastest-Growing Companies and ranked 5th strongest IT brand globally.

• Global workforce of 31,280+ employees across 35 countries, emphasizing diversity and inclusion.

Financial highlights

• Adjusted operating profit margin improved by 20 basis points year-over-year; adjusted diluted EPS grew 11.5% to $6.40.

• Q4 adjusted gross profit margin was 38.3%, up 30 basis points year-over-year; adjusted operating margin at 15.7%, highest in eight quarters.

• Adjusted net income for Q4 was $78.7 million (12.2% margin); full-year adjusted net income was $285.4 million (11.8% margin).

• Free cash flow in Q4 was $101.2 million (128.6% of adjusted net income); full-year free cash flow was $138.1 million (48.4% of adjusted net income).

• Ended the year with $156.1 million in cash and short-term investments, $136.5 million in net debt, and $290.7 million drawn from a $725 million credit facility.

Outlook and guidance

• Q1 2025 revenue expected at $618–$628 million, up 8.2–10% year-over-year (10.2–12% in constant currency), with adjusted operating margin of 15.5–16.5%.

• Full-year 2025 revenue guidance: $2,635–$2,705 million, up 9.1–12% year-over-year (10.6–13.5% in constant currency).

• Adjusted EPS for 2025 expected between $6.80–$7.20; adjusted operating margin 15.5–16.5%.

• Positioned to capitalize on generative AI trends, with continued investment in AI-powered solutions and digital transformation accelerators.

• Double-digit constant currency growth expected, with strong backlog and pipeline in New Markets and Europe, and recovery anticipated in the US.