Globant GLOB reported second-quarter 2024 non-GAAP earnings per share (EPS) of $1.51, beating the Zacks Consensus Estimate by 0.67%. It reported earnings of $1.36 per share in the prior-year quarter.
Revenues in the quarter totaled $587.5 million, almost in line with the Zacks Consensus Estimate. Total revenues rose 18.1% year over year. The uptick was attributable to solid momentum across most of the business segments. Management highlighted massive growth of 130% in AI-related sales in the first half of 2024. Its top five customers and top 10 customers accounted for 8.3%, 21% and 30.3% of revenues, respectively.
For the year ended Jun 30, 2024, GLOB catered to 958 customers. Among its clients, 19 generated more than $20 million in annual revenues. For the same period, GLOB had 329 clients that brought in more than $1 million of annual revenues, up 16.3% from the year-ago level.
It ended the quarter with 29,112 headcounts, an increase of 12.2% year over year.
Globant S.A. Price, Consensus and EPS Surprise 
Globant S.A. price-consensus-eps-surprise-chart | Globant S.A. Quote
Segmental Details
Revenues from Media and Entertainment (22.7% of net sales) were up 20% year over year to $133.1 million. The expansion was due to higher revenues from its biggest client, the Walt Disney Company, coupled with steady momentum in the sports vertical in the Middle East.
Technology & Telecommunications revenues (10.6%) were up 4.3% year over year to $62.2 million.
Travel & Hospitality revenues (10.9%) soared 58.9% year over year to $64 million.
Consumer, Retail & Manufacturing (18.6%) grew 38.7% year over year to $109.1 million.
Professional Services (10.9%) were up 0.9% from the prior-year quarter level to $63.8 million.
Banks, Financial Services and Insurance (17.8%) were up 11.6% year over year to $104.5 million.
Healthcare revenues (7.2%) declined 1.3% year over year to $42.3 million.
Revenues from Other Verticals tallied $8.25 million (1.4%), up 1.5% year over year.
GLOB generated 56.3% of its revenues from North America, primarily the United States, 23% from Latin America, the top contributor being Argentina, 16.9% from Europe, majorly Spain and 3.8% from New Markets, the top country being Saudi Arabia.
Other Details
Non-IFRS adjusted gross margin was 38.1% compared with 38.3% a year ago.
Non-IFRS adjusted profit from operations margin was 15.1%, up from 15% in the prior-year quarter.
Adjusted net income for the period was $66.9 million, up 13.6% year over year.
Balance Sheet
As of Jun 30, 2024, GLOB had cash, cash equivalents and short-term investments of $180.4 million compared with $237.5 million as of Mar 31, 2024.
During the quarter, it generated $10.2 million in cash from operating activities compared with $36.4 million in the previous year.
Outlook
For the third quarter, the company projects revenues in the band of $611-$617 million, or 12.1% to 13.2% year-over-year growth. Adjusted profit from operations margin is anticipated to be in the range of 15-16%. Adjusted diluted EPS is expected to be in the range of $1.6 to $1.64.
For full-year 2024, management projects revenues within $2,407-$2,421 million, suggesting 14.8% to 15.5% year-over-year growth. Adjusted profit from operations margin is estimated to be in the range of 15-15.5%. Adjusted diluted EPS is estimated to be in the band of $6.30 to $6.50.
Zacks Rank
GLOB currently carries a Zacks Rank #4 (Sell).
Performance of Other Companies
BlackBerry’s BB first-quarter fiscal 2025 adjusted loss per share of 3 cents was narrower than the company’s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of BB have lost 46.6% in the past year.
Badger Meter, Inc BMI reported earnings per share (EPS) of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 76 cents.
Shares of BMI have gained 26.1% in the past year.
SAP SE SAP reported second-quarter 2024 non-IFRS earnings of €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 60%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.0% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Badger Meter, Inc. (BMI) : Free Stock Analysis Report
SAP SE (SAP) : Free Stock Analysis Report
Globant S.A. (GLOB) : Free Stock Analysis Report
BlackBerry Limited (BB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
