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• Revenue: $611.1 million, representing a 7% increase year-over-year and 8.6% in constant currency.

• Adjusted Gross Margin: 38%, flat year-over-year.

• Adjusted Operating Margin: 14.8% for the quarter.

• Adjusted Net Income: $67.8 million.

• Adjusted Diluted EPS: $1.50 for the quarter.

• Cash and Cash Equivalents: $120.2 million.

• Net Debt: $167 million.

• Free Cash Flow: Consumed $5.7 million in the first quarter.

• Revenue Guidance for Q2 2025: At least $612 million, 4.2% year-over-year growth.

• Full Year 2025 Revenue Guidance: At least $2.464 billion, 2% year-over-year growth.

• Adjusted Operating Margin Guidance: At least 15% for both Q2 and full year 2025.

• Adjusted Diluted EPS Guidance for Q2 2025: At least $1.52.

• Adjusted Diluted EPS Guidance for Full Year 2025: At least $6.10.

• Utilization Rate: 78.2% in Q1 2025.

• Adjusted SG&A as a Percentage of Sales: 18.3% in Q1 2025.

• Warning! GuruFocus has detected 5 Warning Signs with GLOB.

Release Date: May 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Globant SA (NYSE:GLOB) reported a solid quarter with revenues reaching $611.1 million, representing an 8.6% year-over-year growth in constant currency.

• The company has a robust pipeline with a 20% increase over the last year, indicating strong future growth potential.

• Globant SA (NYSE:GLOB) is well-positioned in the AI market, which is expected to reach $4.3 trillion by 2035, due to its 10 years of strategic investment in artificial intelligence.

• The company has introduced a new AI-powered subscription model, which offers a flexible, transparent way to collaborate with clients and aligns incentives around outcomes.

• Globant SA (NYSE:GLOB) has seen strong growth in new markets, particularly in the Middle East, APAC, and Europe, with new markets posting an 84.4% year-over-year growth.

Negative Points

• The company's Q1 performance came in below initial expectations, and the revised annual guidance aligns more closely with broader industry events.

• Globant SA (NYSE:GLOB) is operating in a challenging macroeconomic environment, with a significant probability of a recession in the US and softened consumer spending.

• There has been a slower pace of pipeline conversion in the US, and growth in some Latin American countries has been lower than expected.

• The company experienced a challenging performance in Latin America, with revenues down close to 9% year-over-year, particularly in Mexico and Brazil.

• Adjusted operating margin for the quarter was 14.8%, falling short of expectations due to lower-than-expected revenues.