GLOB Globant SA

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of February 2024

Commission File Number 001-36535

 

GLOBANT S.A.

(Translation of registrant's name into English)

 

37A, Avenue J.F. Kennedy
L-1855, Luxembourg
Tel: + 352 20 30 15 96

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

x Form 20-F                 ¨ Form 40-F

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

 

 

GLOBANT S.A.

FORM 6-K

 

Globant S.A. (the “Company”) is furnishing under the cover of Form 6-K the following:

 

Earnings Release

 

Exhibit 99.1

Press release, dated February 15, 2024, entitled “Globant Reports 2023 Fourth Quarter and Full Year Financial Results.”

 

Incorporation by Reference

 

The unaudited consolidated statements of comprehensive income, unaudited consolidated statements of financial position, unaudited selected cash flow data, unaudited supplemental non-IFRS financial information and unaudited schedule of supplemental information contained in the press release attached as Exhibit 99.1 to this report on Form 6-K are hereby incorporated by reference into the Company’s registration statements on Form S-8 (File Nos. 333-201602, 333-211835, 333-232022, 333-255113 and 333-266204), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

 

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	GLOBANT S.A.
	By:	/s/ JUAN URTHIAGUE
		Name:	Juan Urthiague
		Title:	Chief Financial Officer

 

Date: February 15, 2024

 

 

 

Exhibit 99.1

 

February 15, 2024

 

Globant Reports 2023 Fourth Quarter and Full Year Financial Results

Solid Finish to the Year and Positive Outlook Ahead

 

•

Fourth quarter revenues of $580.7 million, up 18.3% year-over-year

•

IFRS Diluted EPS of $0.96 for the fourth quarter

•

Non-IFRS Adjusted Diluted EPS of $1.62 for the fourth quarter

•

Full year 2023 revenues of $2,095.9 million, up 17.7% year-over-year

•

IFRS Diluted EPS of $3.64 for the full year

•

Non-IFRS Adjusted Diluted EPS of $5.74 for the full year

 

LUXEMBOURG / February 15, 2024 - Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced results for the three months and year ended December 31, 2023.

 

Please see highlights below, including certain Non-IFRS measures. Note that reconciliations between Non-IFRS financial measures and IFRS operating results are disclosed at the end of this press release.

 

Fourth Quarter 2023 Financial Highlights

 

•

Revenues rose to $580.7 million, representing 18.3% year-over-year growth.

•

IFRS Gross Profit Margin was 35.9% compared to 37.4% in the fourth quarter of 2022.

•

Non-IFRS Adjusted Gross Profit Margin was 38.0% compared to 39.0% in the fourth quarter of 2022.

•

IFRS Profit from Operations Margin was 9.5% compared to 11.2% in the fourth quarter of 2022.

•

Non-IFRS Adjusted Profit from Operations Margin was 15.3% compared to 16.1% in the fourth quarter of 2022.

•

IFRS Diluted EPS was $0.96 compared to $0.91 in the fourth quarter of 2022.

•

Non-IFRS Adjusted Diluted EPS was $1.62 compared to $1.40 in the fourth quarter of 2022.

 

Full Year ended December 31, 2023 Financial Highlights

 

•

Revenues rose to $2,095.9 million, representing 17.7% year-over-year growth.

•

IFRS Gross Profit Margin was 36.1% compared to 37.6% for the full year 2022.

•

Non-IFRS Adjusted Gross Profit Margin was 38.1% compared to 39.2% for the full year 2022.

•

IFRS Profit from Operations Margin was 9.5% compared to 11.6% for the full year 2022.

•

Non-IFRS Adjusted Profit from Operations Margin was 15.2% compared to 16.3% for the full year 2022.

•

IFRS Diluted EPS was $3.64 compared to $3.47 for the full year 2022.

•

Non-IFRS Adjusted Diluted EPS was $5.74 compared to $5.08 for the full year 2022.

 

 

Other Metrics as of and for the quarter ended December 31, 2023

 

•

Cash and cash equivalents and Short-term investments were $323.3 million as of December 31, 2023, a decrease of $17.6 million from $340.9 million as of December 31, 2022, driven mainly by investments in our platform business, expansion to new geographies, the addition of new studios and acquisitions. As of December 31, 2023, we had a total amount of $155 million drawn from our credit facility.

•

Globant completed the fourth quarter of 2023 with 29,150 Globers, 27,116 of whom were technology, design and innovation professionals.

•

The geographic revenue breakdown for the fourth quarter of 2023 was as follows: 57.4% from North America (top country: US), 22.9% from Latin America (top country: Argentina), 17.2% from EMEA (top country: Spain) and 2.5% from Asia and Oceania (top country: Japan).

•

Globant’s top customer, top five customers and top ten customers for the fourth quarter of 2023 represented 8.2%, 21.4% and 30.8% of revenues, respectively.

•

During the twelve months ended December 31, 2023, Globant served a total of 1,610 customers (with revenues over $10,000 in the last twelve months) and continued to increase its wallet share, with 311 accounts generating more than $1 million of annual revenues, compared to 259 for the same period one year ago.

•

In terms of currencies, 68.6% of Globant’s revenues for the fourth quarter of 2023 were denominated in US dollars.

 

“Our journey of two decades has been marked by resilience, innovation and a commitment to delivering exceptional results. As we reflect on our achievements from the fourth quarter and full year of 2023, we are very proud of the progress we have made as a company. Throughout the year, we expanded into new markets, forged valuable relationships with top-notch new clients and diversified our service offering. Our dedication to being a trusted end-to-end partner has enabled us to craft multiple solutions and continuously expand the breadth of our services, platforms and capabilities. With a global footprint in five continents and a focus on AI and generative AI capabilities, we are well-positioned for future growth,” said Martín Migoya, Globant’s CEO and co-founder. “Our recent acquisitions of GUT and Iteris further strengthen our creative and digital capabilities. As we enter 2024, we remain optimistic about the growth potential of our total addressable market and our ability to deliver industry-leading results.”

 

"Our strong results in 2023 reflect the strength inherent in our culture, the agility of our business model and the transformative impact of our work. We achieved a milestone of $2.1 billion in revenue, representing a remarkable 17.7% year-over-year growth, while capturing a significant market share and validating our value proposition. Our focus on profitability and operational efficiency resulted in solid financial health, as we maintained strong margins and generated meaningful profitability. With a robust financial position and significant free cash flow generation, we are strategically positioned to foster expansion and strengthen our strategic investments. We are grateful for the trust and support of our clients, shareholders and the entire Globant team as we continue our journey of growth and success,” explained Juan Urthiague, Globant's CFO.

 

 

2024 First Quarter and Full Year Outlook

 

Based on current market conditions, Globant is providing the following estimates for the first quarter and the full year of 2024:

 

•

First quarter 2024 Revenues are estimated to be at least $570.0 million, or 20.7% year-over-year growth.

•

First quarter 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15-16%.

•

First quarter 2024 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.53 (assuming an average of 44.1 million diluted shares outstanding during the first quarter).

•

Fiscal year 2024 Revenues are estimated to be at least $2,435.0 million, implying at least 16.2% year-over-year revenue growth.

•

Fiscal year 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15%-16%.

•

Fiscal year 2024 Non-IFRS Adjusted Diluted EPS is estimated to be at least $6.50 (assuming an average of 44.3 million diluted shares outstanding during 2024).

 

Conference Call and Webcast

 

Martin Migoya, Globant’s CEO and co-founder, Juan Urthiague, Globant’s CFO, Patricia Pomies, Globant’s COO, and Diego Tártara, Globant’s CTO, will discuss the fourth quarter 2023 results in a video conference call today beginning at 4:30pm ET.

 

Video conference call access information is:

https://more.globant.com/F4Q23EarningsCall

Webcast http://investors.globant.com/

 

About Globant (NYSE:GLOB)

 

We are a digitally native company that helps organizations reinvent themselves to create a way forward and unleash their potential. We are the place where innovation, design and engineering meet scale.

 

We have more than 29,000 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among others.

 

We were named a Worldwide Leader in CX Improvement by IDC MarketScape report. We were also featured as a business case study at Harvard, MIT and Stanford. We are a member of the Cybersecurity Tech Accord.

 

For more information, please visit www.globant.com

 

Non-IFRS Financial Measures

 

While the financial figures included in this press release have been computed in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” nor a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements”. The financial information in this press release has not been audited.

 

 

Globant provides non-IFRS financial measures in addition to reported IFRS results prepared in accordance with IFRS. Management believes these measures help illustrate underlying trends in the company’s business and uses the non-IFRS financial measures to establish budgets and operational goals, communicated internally and externally, for managing the company’s business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS measures that exclude share-based compensation expense, depreciation and amortization, acquisition-related charges, and the related effect on income taxes of the pre-tax adjustments. Because the company’s non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company’s industry. Consequently, Globant’s non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its consolidated statements of financial position as of December 31, 2023 and December 31, 2022 and its consolidated statements of comprehensive income for the three months and years ended December 31, 2023 and 2022, prepared in accordance with IFRS as issued by the IASB.

 

Globant is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, share-based compensation expense, acquisition-related charges, and the tax effect of non-IFRS adjustments. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.

 

Forward Looking Statements

 

In addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America; and other factors discussed under the heading “Risk Factors” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K.

 

Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

 

 

Globant S.A.

Consolidated Statements of Comprehensive Income

(In thousands of U.S. dollars, except per share amounts, unaudited)

 

		Twelve Months Ended								Three Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Revenues			2,095,939				1,780,243				580,705				490,724
Cost of revenues			(1,340,178	)			(1,110,848	)			(372,384	)			(307,204	)
Gross profit			755,761				669,395				208,321				183,520
Selling, general and administrative expenses			(537,075	)			(456,324	)			(147,011	)			(123,800	)
Net impairment losses on financial assets			(18,808	)			(6,364	)			(4,829	)			(4,541	)
Other operating income and expenses, net			(916	)			—				(1,530	)			—
Profit from operations			198,962				206,707				54,951				55,179
Finance income			4,777				2,832				1,277				1,366
Finance expense			(23,753	)			(16,552	)			(8,690	)			(5,142	)
Other financial results, net			11,342				173				(131	)			1,310
Financial results, net			(7,634	)			(13,547	)			(7,544	)			(2,466	)
Share of results of investment in associates			89				119				(96	)			94
Other income and expenses, net			6,602				(395	)			2,527				(2,414	)
Profit before income tax			198,019				192,884				49,838				50,393
Income tax			(39,511	)			(43,405	)			(8,444	)			(10,975	)
Net income for the period			158,508				149,479				41,394				39,418
Other comprehensive income, net of income tax effects
Items that may be reclassified subsequently to profit and loss:
- Exchange differences on translating foreign operations			(16,721	)			(21,770	)			12,040				20,044
- Net change in fair value on financial assets measured at FVOCI			119				(107	)			2,435				1,978
- Gains and losses on cash flow hedges			9,327				(3,171	)			9,210				3,047
Total comprehensive income for the period			151,233				124,431				65,079				64,487
Net income attributable to:
Owners of the Company			158,538				148,891				42,133				39,185
Non-controlling interest			(30	)			588				(739	)			233
Net income for the period			158,508				149,479				41,394				39,418
Total comprehensive income for the period attributable to:
Owners of the Company			148,732				123,044				63,454				63,455
Non-controlling interest			2,501				1,387				1,625				1,032
Total comprehensive income for the period			151,233				124,431				65,079				64,487
Earnings per share
Basic			3.72				3.55				0.98				0.93
Diluted			3.64				3.47				0.96				0.91
Weighted average of outstanding shares (in thousands)
Basic			42,601				41,929				42,976				42,153
Diluted			43,594				42,855				43,970				43,079

 

Globant S.A.

Consolidated Statements of Financial Position as of December 31, 2023 and December 31, 2022

(In thousands of U.S. dollars, unaudited)

 

		December 31, 2023				December 31, 2022
ASSETS
Current assets
Cash and cash equivalents			307,223				292,457
Investments			16,070				48,408
Trade receivables			499,283				424,810
Other assets			31,753				15,197
Other receivables			54,786				70,212
Other financial assets			15,418				6,529
Total current assets			924,533				857,613
Non-current assets
Investments			1,833				1,513
Other assets			4,088				10,657
Other receivables			26,475				21,141
Deferred tax assets			60,777				41,982
Investment in associates			1,426				1,337
Other financial assets			34,864				34,978
Property and equipment			162,736				161,733
Intangible assets			235,540				182,572
Right-of-use assets			119,400				147,311
Goodwill			1,163,683				734,952
Total non-current assets			1,810,822				1,338,176
TOTAL ASSETS			2,735,355				2,195,789
LIABILITIES
Current liabilities
Trade payables			124,545				89,397
Payroll and social security taxes payable			221,843				203,819
Borrowings			156,916				2,838
Other financial liabilities			81,504				59,316
Lease liabilities			47,852				37,681
Tax liabilities			33,229				23,454
Income tax payable			11,287				11,276
Other liabilities			896				808
Total current liabilities			678,072				428,589
Non-current liabilities
Trade payables			2,981				5,445
Borrowings			2,191				861
Other financial liabilities			163,318				78,055
Lease liabilities			70,884				97,457
Deferred tax liabilities			9,706				11,291
Payroll and social security taxes payable			5,139				4,316
Provisions for contingencies			16,448				13,615
Total non-current liabilities			270,667				211,040
TOTAL LIABILITIES			948,739				639,629
Capital and reserves
Issued capital			51,705				50,724
Additional paid-in capital			1,022,918				950,520
Other reserves			(42,048	)			(32,242	)
Retained earnings			697,089				538,551
Total equity attributable to owners of the Company			1,729,664				1,507,553
Non-controlling interests			56,952				48,607
Total equity			1,786,616				1,556,160
TOTAL EQUITY AND LIABILITIES			2,735,355				2,195,789

 

Globant S.A.

Selected Cash Flow Data

(In thousands of U.S. dollars, unaudited)

 

		Three Months Ended
		December 31, 2023				December 31, 2022
Net Income for the period			41,394				39,418
Non-cash adjustments, taxes and others			56,119				50,219
Changes in working capital			63,389				9,553
Cash flows from operating activities			160,902				99,190
Capital expenditures			(36,323	)			(14,903	)
Cash flows from investing activities			(141,829	)			(71,272	)
Cash flows from financing activities			90,336				(31,059	)
Net decrease in cash & cash equivalents			109,409				(3,141	)

 

 

Globant S.A.

Supplemental Non-IFRS Financial Information

(In thousands of U.S. dollars, unaudited)

 

		Twelve Months Ended								Three Months Ended
		December 31, 2023				December 31, 2022				December 31, 2023				December 31, 2022
Reconciliation of adjusted gross profit
Gross Profit			755,761				669,395				208,321				183,520
Depreciation and amortization expense			28,597				23,312				7,985				6,555
Share-based compensation expense - Equity settled			15,155				4,917				4,179				1,497
Adjusted gross profit			799,513				697,624				220,485				191,572
Adjusted gross profit margin			38.1	%			39.2	%			38.0	%			39.0	%
Reconciliation of selling, general and administrative expenses
Selling, general and administrative expenses			(537,075	)			(456,324	)			(147,011	)			(123,800	)
Depreciation and amortization expense			85,584				62,822				24,083				17,959
Share-based compensation expense - Equity settled			57,016				50,296				15,574				13,035
Acquisition-related charges (a)			21,092				13,612				6,604				4,611
Adjusted selling, general and administrative expenses			(373,383	)			(329,594	)			(100,750	)			(88,195	)
Adjusted selling, general and administrative expenses as % of revenues			(17.8	)%			(18.5	)%			(17.3	)%			(18.0	)%
Reconciliation of Adjusted Profit from Operations
Profit from Operations			198,962				206,707				54,951				55,179
Share-based compensation expense - Equity settled			72,171				55,213				19,753				14,532
Acquisition-related charges (a)			46,993				27,456				14,416				9,268
Adjusted Profit from Operations			318,126				289,376				89,120				78,979
Adjusted Profit from Operations margin			15.2	%			16.3	%			15.3	%			16.1	%
Reconciliation of Net income for the period
Net income for the period			158,538				148,891				42,133				39,185
Share-based compensation expense - Equity settled			72,099				55,213				19,722				14,532
Acquisition-related charges (a)			48,205				28,765				17,566				10,856
Tax effect of non-IFRS adjustments			(28,724	)			(15,146	)			(8,344	)			(4,437	)
Adjusted Net income			250,118				217,723				71,077				60,136
Adjusted Net income margin			11.9	%			12.2	%			12.2	%			12.3	%
Calculation of Adjusted Diluted EPS
Adjusted Net income			250,118				217,723				71,077				60,136
Diluted shares			43,594				42,855				43,970				43,079
Adjusted Diluted EPS			5.74				5.08				1.62				1.40

 

(a)

Acquisition-related charges include, when applicable, amortization of purchased intangible assets included in depreciation and amortization expense line on our consolidated statements of comprehensive income, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, charges for impairment of acquired intangible assets and other acquisition-related costs. We cannot provide acquisition-related charges on a forward-looking basis without unreasonable effort as such charges may fluctuate based on the timing, size, and complexity of future acquisitions as well as other uncertainty inherent in mergers and acquisitions.

 

 

Globant S.A.

Schedule of Supplemental Information (unaudited)

 

Metrics		Q4 2022				Q1 2023				Q2 2023				Q3 2023				Q4 2023
Total Employees			27,122				26,288				25,947				27,505				29,150
IT Professionals			25,331				24,496				24,163				25,575				27,116
North America Revenues %			61.7				61.4				60.6				58.9				57.4
Latin America Revenues %			22.7				21.8				22.0				21.6				22.9
EMEA Revenues %			11.9				13.4				14.1				16.5				17.2
Asia and Oceania Revenues %			3.7				3.4				3.3				3.0				2.5
USD Revenues %			77.5				74.8				73.9				72.5				68.6
Other Currencies Revenues %			22.5				25.2				26.1				27.5				31.4
Top Customer %			10.8				9.4				8.8				8.7				8.2
Top 5 Customers %			25.1				24.5				23.7				22.5				21.4
Top 10 Customers %			34.3				34.8				33.3				32.2				30.8
Customers Served (Last Twelve Months)*			1,249				1,342				1,388				1,544				1,610
Customers with >$1M in Revenues (Last Twelve Months)			259				276				283				305				311

 

(*) Represents customers with more than $10,000 in revenues in the last twelve months.

 

Investor Relations Contact:

Arturo Langa, Globant

investors@globant.com

+1 (877) 215-5230

 

Media Contact:

Wanda Weigert, Globant

pr@globant.com

+1 (877) 215-5230

Source: Globant

 

 

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