Globant (GLOB) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $614.7M, up 12.7% year-over-year and 4.6% sequentially, with strong demand across sectors and regions.

• AI-related work generated over $250M in revenue in the first nine months, up 120% year-over-year, driven by proprietary tools and enterprise adoption.

• Secured two of the largest bookings in company history in the last six months, supporting a robust pipeline for 2025.

• Recognized as one of the fastest-growing and strongest IT brands globally, with a founder-led management team and a focus on sustainability and ESG initiatives.

• Expanded presence in the Middle East and Europe, opening new offices and launching innovation hubs.

Financial highlights

• LTM Q3'24 total revenue reached $2.4B, with a 29.9% CAGR from 2014 to 2023.

• Adjusted gross profit margin reached 38.5%, up 40 bps sequentially and 30 bps year-over-year.

• Adjusted operating margin was 15.6%, the highest in two years, up 50 bps sequentially.

• Adjusted net income was $72.4M, with an 11.8% margin, and adjusted diluted EPS rose 10.1% year-over-year to $1.63.

• Free cash flow for Q3 was $69.7M, with a free cash flow to adjusted net income ratio exceeding 96%.

Outlook and guidance

• Q4 2024 revenue projected at $642M–$648M, up 11.1% year-over-year at midpoint, with adjusted operating margins of 15%–16%.

• Full-year 2024 revenue guidance raised to $2,415M–$2,421M, with adjusted EPS expected between $6.37–$6.43.

• 2025 expected to deliver low to mid double-digit revenue growth, with 2–3 points from M&A and stable operating margins.

• The company is focused on expanding its 100² strategy, targeting 100 accounts with $100M+ potential, and pursuing strategic, tuck-in acquisitions.