GLOB's Q4 Earnings Top Estimates, Sales Up Y/Y on AI-Driven Expansions

Globant GLOB reported fourth-quarter 2024 non-GAAP earnings per share (EPS) of $1.75, beating the Zacks Consensus Estimate of $1.74. It reported earnings of $1.62 per share in the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks  Earnings Calendar.Revenues in the quarter totaled $642.5 million, lagging the Zacks Consensus Estimate of $644.8 million. However, the top line rose 10.6% year over year, driven by an increase in AI-driven services, expanding client engagements and a strong global presence. Continued investment in AI bodes well for the company’s prospects. Over the past decade, it has built deep AI expertise through its AI Studios and the Globant Enterprise AI Platform. With the combination of cutting-edge AI solutions and creative technology through Globant GUT, GLOB continues to solidify its foothold in AI-driven business verticals.For the year ended Dec. 31, 2024, GLOB served 1,012 customers. Of these, 20 generated more than $20 million in annual revenues. For the same period, GLOB had 346 clients that brought in more than $1 million in annual revenues, up 11.2% from the year-ago level. In 2024, AI-based projects brought in $350 million in annual revenues, up 110% year over year.Its top customer, top five customers and top 10 customers accounted for 9.1%, 19.8% and 29.3% of revenues, respectively.Segmental DetailsRevenues from Media and Entertainment (20.6% of net sales) were up 9.7% year over year to $132.3 million. The expansion was due to higher revenues from its biggest client, the Walt Disney Company, with 23.7% year-over-year growth.Technology & Telecommunications revenues (10.4%) inched up 0.4% year over year to $66.9 million.Travel & Hospitality revenues (13%) soared 35.3% year over year to $83.3 million.Consumer, Retail & Manufacturing (18.3%) grew 5.2% year over year to $117.3 million.Globant S.A. Price, Consensus and EPS Surprise Globant S.A. price-consensus-eps-surprise-chart | Globant S.A. QuoteProfessional Services (9.4%) were down 8.8% from the prior-year quarter to $60.7 million.Banks, Financial Services and Insurance (20%) were up 23.9% year over year to $128.5 million.Healthcare revenues (7.4%) grew 7% year over year to $47.2 million.Revenues from Other Verticals tallied $6.3 million (1%), up 2.3% year over year.Region-wise PerformanceRegarding region-wise revenue distribution, North America led with 55.2% of revenues, driven by the United States. Latin America, led by Argentina, contributed 20.4%. Europe accounted for 17.7%, with Spain as the top market. New Markets, including Saudi Arabia, represented 6.7%.The highest growth was driven by new markets in the Middle East and APAC, achieving an impressive 43.8% sequential increase and an 89% rise year over year. Revenues rose 23.3% in Europe and 6.5% in North America, with Latin America falling 1.3% year over year.Other DetailsNon-IFRS adjusted gross margin was 38.3% compared with 38% a year ago.Non-IFRS adjusted profit from operations margin was 15.7%, up from 15.3% in the prior-year quarter.Adjusted net income for the period was $78.7 million, up 10.7% year over year.Cash Flow & LiquidityAs of Dec. 31, 2024, Globant’s cash, cash equivalents and short-term investments were $156.1 million, down from $213.5 million as of Sept. 30, 2024.During the quarter, it generated $137.3 million in cash from operating activities compared with $160.9 million in the previous year.GLOB’s Q1 & 2025 OutlookDespite an adverse foreign exchange impact of 1.5% on its full-year revenue growth, GLOB estimates revenues between $2,635 million and $2,705 million, implying 9.1% to 12.0% year-over-year growth for 2025.The non-IFRS adjusted profit from operations margin is expected to remain strong, between 15.5% and 16.5%, with non-IFRS adjusted EPS between $6.80 and $7.20.GLOB anticipates first-quarter revenues between $618 million and $628 million, representing 8.2-10% year-over-year growth, with a 2% unfavorable forex impact.The company forecasts a non-IFRS adjusted profit from operations margin in the range of 15.5-16.5% and a non-IFRS adjusted diluted EPS between $1.55 and $1.63.GLOB’s Zacks RankGLOB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other FirmsOpen Text Corporation OTEX reported second-quarter fiscal 2025 adjusted EPS of $1.11, compared with $1.24 a year ago. The figure outpaced the Zacks Consensus Estimate of 92 cents per share.In the past year, shares of OTEX have declined 27.7%.Commvault Systems CVLT reported third-quarter fiscal 2025 results wherein adjusted earnings of 94 cents per share beat the Zacks Consensus Estimate of 87 cents. The figure compares with earnings of 78 cents per share a year ago. Quarterly revenues jumped 21% year over year to $ $262.6 million. Subscription revenues were $158.3 million, up 39% year over year.In the past year, CVLT shares have surged 101.4%.Blackbaud, Inc. BLKB reported fourth-quarter 2024 non-GAAP EPS of $1.08, which was in line with the Zacks Consensus Estimate. The bottom line decreased 5.3% year over year.Shares of BLKB have declined 1.2% in the past year. 7 Best Stocks for the Next 30 DaysJust 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 +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Open Text Corporation (OTEX): Free Stock Analysis Report CommVault Systems, Inc. (CVLT): Free Stock Analysis Report Blackbaud, Inc. (BLKB): Free Stock Analysis Report Globant S.A. 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