Globant S.A 6-K, filed Feb 16, 2023

Globant S.A. (GLOB)

6-K 2023-02-16 For: 2023-02-16

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Added on April 11, 2026

About this 6-K

Globant S.A filed this 6-K on February 16, 2023.

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	GLOBANT S.A.


	By:	/s/ JUAN URTHIAGUE
		Name: Juan Urthiague
		Title: Chief Financial Officer

	•	Fourth quarter revenues of $490.7 million, up 29.2% year-over-year
	•	IFRS Diluted EPS of $0.91 for the fourth quarter
	•	Non-IFRS Diluted EPS of $1.40 for the fourth quarter
	•	Full year 2022 revenues of $1,780.2 million, up 37.3% year-over-year
	•	IFRS Diluted EPS of $3.47 for the full year
	•	Non-IFRS Diluted EPS of $5.08 for the full year

	•	Revenues rose to $490.7 million, representing 29.2% year-over-year growth.
	•	IFRS Gross Profit Margin was 37.4% compared to 38.0% in the fourth quarter of 2021.
	•	Non-IFRS Adjusted Gross Profit Margin was 39.0% compared to 39.4% in the fourth quarter of 2021.
	•	IFRS Profit from Operations Margin was 11.2% compared to 11.5% in the fourth quarter of 2021.
	•	Non-IFRS Adjusted Profit from Operations Margin was 16.1% compared to 16.7% in the fourth quarter of 2021.
	•	IFRS Diluted EPS was $0.91 compared to $0.68 in the fourth quarter of 2021.
	•	Non-IFRS Adjusted Diluted EPS was $1.40 compared to $1.07 in the fourth quarter of 2021.

	•	Revenues rose to $1,780.2 million, representing 37.3% year-over-year growth.
	•	IFRS Gross Profit Margin was 37.6% compared to 38.2% for the full year 2021.
	•	Non-IFRS Adjusted Gross Profit Margin was 39.2% compared to 39.5% for the full year 2021.
	•	IFRS Profit from Operations Margin was 11.6% compared to 11.1% for the full year 2021.
	•	Non-IFRS Adjusted Profit from Operations Margin was 16.3% compared to 16.5% for the full year 2021.
	•	IFRS Diluted EPS was $3.47 compared to $2.28 for the full year 2021.
	•	Non-IFRS Adjusted Diluted EPS was $5.08 compared to $3.76 for the full year 2021.

	•	Cash and cash equivalents and Short-term investments were $340.9 million as of December 31, 2022, a decrease of $119.5 million from $460.4 million as of December 31, 2021, driven mainly by acquisitions, investments in our platform business and organic expansion initiatives. As of December 31, 2022, our credit facility was fully undrawn.
	•	Globant completed the fourth quarter of 2022 with 27,122 Globers, 25,331 of whom were technology, design and innovation professionals.
	•	The geographic revenue breakdown for the fourth quarter of 2022 was as follows: 61.7% from North America (top country: US), 22.7% from Latin America (top country: Argentina), 11.9% from EMEA (top country: Spain) and 3.7% from Asia and Oceania (top country: India).
	•	Globant’s top customer, top five customers and top ten customers for the fourth quarter of 2022 represented 10.8%, 25.1% and 34.3% of revenues, respectively.
	•	During the twelve months ended December 31, 2022, Globant served a total of 1,249 customers (with revenues over $10,000 in the last twelve months) and continued to increase its wallet share, with 259 accounts generating more than $1 million of annual revenues, compared to 185 for the same period one year ago.
	•	In terms of currencies, 77.5% of Globant’s revenues for the fourth quarter of 2022 were denominated in US dollars.

	•	First quarter 2023 Revenues are estimated to be at least $470.0 million, or 17.1% year-over-year growth.
	•	First quarter 2023 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15-16%.
	•	First quarter 2023 Non-IFRS Adjusted Diluted EPS is estimated to be at least $1.27 (assuming an average of 43.2 million diluted shares outstanding during the first quarter).

	•	Fiscal year 2023 Revenues are estimated to be at least $2,065 million, implying at least 16.0% year-over-year revenue growth. This expected growth includes a neutral FX outlook.
	•	Fiscal year 2023 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15%-17%.
	•	Fiscal year 2023 Non-IFRS Adjusted Diluted EPS is estimated to be at least $5.70 (assuming an average of 43.4 million diluted shares outstanding during 2023).

	Twelve Months Ended						Three Months ended
	December 31, 2022			December 31, 2021			December 31, 2022			December 31, 2021
Revenues		1,780,243			1,297,078			490,724			379,817
Cost of revenues		(1,110,848	)		(802,090	)		(307,204	)		(235,499	)
Gross profit		669,395			494,988			183,520			144,318
Selling, general and administrative expenses		(456,324	)		(343,004	)		(123,800	)		(99,638	)
Net impairment losses on financial assets		(6,364	)		(7,551	)		(4,541	)		(1,035	)
Other operating income and expenses, net		—			—			—			(11	)
Profit from operations		206,707			144,433			55,179			43,634
Finance income		2,832			652			1,366			178
Finance expense		(16,552	)		(12,708	)		(5,142	)		(4,206	)
Other financial results, net		173			(3,923	)		1,310			(1,092	)
Financial results, net		(13,547	)		(15,979	)		(2,466	)		(5,120	)
Share of results of investment in associates		119			(233	)		94			—
Other income and expenses, net		(395	)		(3,369	)		(2,414	)		(482	)
Profit before income tax		192,884			124,852			50,393			38,032
Income tax		(43,405	)		(28,497	)		(10,975	)		(8,901	)
Net income for the period		149,479			96,355			39,418			29,131
Other comprehensive income, net of income tax effects
Items that may be reclassified subsequently to profit and loss:
- Exchange differences on translating foreign operations		(21,770	)		(3,733	)		20,044			(1,106	)
- Net change in fair value on financial assets measured at FVOCI		(107	)		1			1,978			19
- Gains and losses on cash flow hedges		(3,171	)		11			3,047			(662	)
Total comprehensive income for the period		124,431			92,634			64,487			27,382
Net income attributable to:
Owners of the Company		148,891			96,065			39,185			28,973
Non-controlling interest		588			290			233			158
Net income for the period		149,479			96,355			39,418			29,131
Total comprehensive income for the period attributable to:
Owners of the Company		123,044			92,344			63,455			27,224
Non-controlling interest		1,387			290			1,032			158
Total comprehensive income for the period		124,431			92,634			64,487			27,382
Earnings per share
Basic		3.55			2.35			0.93			0.69
Diluted		3.47			2.28			0.91			0.68
Weighted average of outstanding shares (in thousands)
Basic		41,929			40,940			42,153			41,697
Diluted		42,855			42,076			43,079			42,833

	December 31, 2022			December 31, 2021
ASSETS
Current assets
Cash and cash equivalents		292,457			427,804
Investments		48,408			32,581
Trade receivables		425,422			300,109
Other assets		15,197			7,855
Other receivables		70,212			49,194
Other financial assets		6,529			2,057
Total current assets		858,225			819,600
Non-current assets
Investments		1,513			1,027
Other assets		10,657			8,583
Other receivables		16,316			24,263
Deferred tax assets		46,574			58,404
Investment in associates		1,337			—
Other financial assets		34,978			25,233
Property and equipment		161,733			133,373
Intangible assets		176,080			102,016
Right-of-use assets		147,311			144,581
Goodwill		738,026			567,451
Total non-current assets		1,334,525			1,064,931
TOTAL ASSETS		2,192,750			1,884,531
LIABILITIES
Current liabilities
Trade payables		81,937			63,210
Payroll and social security taxes payable		203,819			184,464
Borrowings		2,838			10,305
Other financial liabilities		59,316			63,059
Lease liabilities		37,681			25,917
Tax liabilities		23,454			18,071
Income tax payable		11,276			20,318
Other liabilities		808			955
Total current liabilities		421,129			386,299
Non-current liabilities
Trade payables		5,445			6,387
Borrowings		861			1,935
Other financial liabilities		82,222			61,226
Lease liabilities		97,457			108,568
Deferred tax liabilities		11,291			1,289
Income tax payable		—			877
Payroll and social security taxes payable		4,316			—
Provisions for contingencies		13,615			9,637
Total non-current liabilities		215,207			189,919
TOTAL LIABILITIES		636,336			576,218
Capital and reserves
Issued capital		50,724			50,080
Additional paid-in capital		950,520			872,030
Other reserves		(32,242	)		(6,395	)
Retained earnings		538,551			389,660
Total equity attributable to owners of the Company		1,507,553			1,305,375
Non-controlling interests		48,861			2,938
Total equity		1,556,414			1,308,313
TOTAL EQUITY AND LIABILITIES		2,192,750			1,884,531

	(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, 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.
	(b)	COVID-19 related charges include, when applicable, bad debt provision related to the effect of COVID-19 on our customers businesses, donations and other expenses directly attributable to the pandemic that are both incremental to charges incurred prior to the outbreak and not expected to recur once the crisis has subsided and operations return to normal and clearly separable from normal operations. Moreover, these charges also include rent concessions that we were granted due to the pandemic environment.

Metrics	Q4 2021		Q1 2022		Q2 2022		Q3 2022		Q4 2022
Total Employees		23,526		24,504		25,924		26,541		27,122
IT Professionals		22,167		23,158		24,410		24,922		25,331

North America Revenues %		63.9		64.1		64.5		64.9		61.7
Latin America Revenues %		23.1		23.5		23.8		21.9		22.7
EMEA Revenues %		10.7		10.1		9.7		10.0		11.9
Asia and Oceania Revenues %		2.3		2.3		2.0		3.2		3.7

USD Revenues %		73.4		80.6		79.0		81.2		77.5
Other Currencies Revenues %		26.6		19.4		21.0		18.8		22.5

Top Customer %		11.0		11.0		10.5		10.7		10.8
Top 5 Customers %		26.8		28.0		25.7		24.7		25.1
Top 10 Customers %		37.6		38.6		36.7		34.5		34.3

Customers Served (Last Twelve Months)*		921		982		1,043		1,114		1,249
Customers with >$1M in Revenues (Last Twelve Months)		185		206		233		255		259