Globant S.A. (GLOB): history, ownership, mission, how it works & makes money

A Brief History of Globant S.A.

Globant S.A. was founded in 2003 in La Plata, Argentina, by Martín Migoya, Guibert Englebienne, and others. It began as a software development company focused on providing IT services and solutions to various industries.

Initial Public Offering

In June 2014, Globant went public on the New York Stock Exchange (NYSE) under the ticker symbol "GLOB." The IPO raised approximately $90 million, valuing the company at around $1 billion. This event marked a significant milestone in its growth trajectory.

Growth and Expansion

Since its IPO, Globant has expanded its operations significantly. By the end of 2023, the company reported revenues of approximately $2.4 billion, reflecting a compound annual growth rate (CAGR) of 20% since going public. The company has consistently focused on technological innovation, particularly in areas such as artificial intelligence and digital transformation.

Financial Performance in 2024

As of June 30, 2024, Globant reported revenues of $1,158.5 million for the first half of the year, representing a year-over-year growth of 19.4%. The second quarter alone saw revenues of $587.5 million, an increase of 18.1% compared to the same quarter in 2023.

Workforce and Customer Base

As of June 30, 2024, Globant employed 29,112 professionals, with a substantial majority being IT and design experts. The company served 958 customers, with 329 generating over $1 million in annual revenues. The geographic breakdown of revenues is as follows:

Strategic Initiatives and Future Outlook

Globant has been actively investing in artificial intelligence and digital solutions, which have seen a significant increase in revenue, growing nearly 130% in the first half of 2024. The company’s focus on expanding its service offerings positions it well for continued growth.

For the fiscal year 2024, Globant anticipates revenues in the range of $2.4 billion to $2.42 billion, suggesting a year-over-year growth of approximately 14.8% to 15.5%. This optimistic outlook is driven by strong demand for digital transformation services and AI-related solutions.

A Who Owns Globant S.A. (GLOB)

Ownership Structure

As of 2024, Globant S.A. has a diverse ownership structure comprising various institutional investors, mutual funds, and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:

Institutional Ownership

Globant S.A. has significant institutional ownership, which contributes to its stability and governance. The following details the top institutional investors and their holdings as of June 2024:

Key Executives and Their Holdings

Key executives of Globant also hold substantial shares in the company, reflecting their commitment to its growth and success:

Recent Shareholder Changes

In 2024, Globant experienced notable changes in its shareholder composition, including increased investments from institutional investors and a rise in retail ownership. This shift indicates growing confidence in the company's growth prospects following its recent financial performance:

Stock Performance

As of June 2024, Globant's stock has performed strongly, with the following key metrics:

Conclusion

The ownership structure of Globant S.A. reflects a balanced mix of institutional and retail investors, supported by key executives who maintain significant stakes in the company. This structure, coupled with strong financial performance, positions Globant favorably for continued growth in the technology sector.

Globant S.A. (GLOB) Mission Statement

Globant S.A. focuses on reinventing businesses through innovative technology solutions. The company aims to bridge the gap between businesses and consumers by leveraging its expertise in artificial intelligence (AI) and digital transformation, striving to create digitally native products that resonate with users.

Corporate Vision and Objectives

Globant's vision is to lead the digital transformation of organizations globally by creating innovative technology solutions that enhance customer experiences. The company is committed to long-term growth, aiming to maintain its position as a leader in the technology and consulting sector.

Financial Performance Overview

As of June 30, 2024, Globant reported significant financial growth:

Market Presence and Customer Base

Globant operates across various regions, with a notable geographic revenue breakdown:

As of June 30, 2024, Globant served 958 customers, with 329 accounts generating over $1 million in annual revenues, compared to 283 in the previous year.

Employee Growth and Talent Acquisition

Globant's workforce, referred to as "Globers," totaled 29,112 employees, with a strong focus on technology, design, and innovation professionals, accounting for 27,133 of the total workforce.

Strategic Initiatives and Innovations

Globant's commitment to innovation is evident in its recent developments in AI-related services, which have seen a growth of nearly 130% in the first half of 2024. The introduction of AI agents and the Globant GUT Network showcases the company's dedication to enhancing the software development lifecycle and delivering cutting-edge solutions.

Financial Outlook

For the third quarter of 2024, Globant estimates revenues to be between $611.0 million and $617.0 million, reflecting a year-over-year growth of approximately 12.1% to 13.2%. The full fiscal year 2024 revenue guidance is projected between $2,407.0 million and $2,421.0 million, indicating a solid growth trajectory for the company.

How Globant S.A. (GLOB) Works

Company Overview

Globant S.A. is a digitally native company specializing in technology solutions, including software development, IT services, and consulting. As of June 30, 2024, Globant employs approximately 29,112 professionals, with a significant focus on technology, design, and innovation.

Financial Performance

Globant reported strong financial growth in the second quarter of 2024 with revenues of $587.5 million, representing an 18.1% increase year-over-year. For the first six months of 2024, revenues reached $1,158.5 million, equivalent to a 19.4% year-over-year growth.

Geographic Revenue Breakdown

The geographic distribution of revenues for the second quarter of 2024 is as follows:

Customer Base

Globant served a total of 958 customers in the twelve months ending June 30, 2024, with 329 of those accounts generating more than $1 million in annual revenues, compared to 283 in the previous year. The company’s top customers accounted for the following percentages of total revenue:

Cash Flow and Liquidity

As of June 30, 2024, Globant reported cash and cash equivalents of $180.4 million, down from $323.3 million at the end of 2023. The decrease was attributed to various operational expenditures, including bonuses and investments.

Outlook and Growth Strategy

Globant's fiscal year 2024 revenue is projected to be between $2,407.0 million and $2,421.0 million, indicating a year-over-year growth of approximately 14.8% to 15.5%. The company is also focusing on expanding its AI-related services, which saw a growth of nearly 130% in the first half of 2024.

Strategic Initiatives

Globant is committed to enhancing its digital transformation capabilities and expanding its market reach through strategic investments in AI and other emerging technologies. The company's recent innovations, such as the Globant GUT Network, aim to further establish its leadership in the tech industry.

How Globant S.A. (GLOB) Makes Money

Revenue Streams

Globant S.A. generates revenue primarily through IT services and software development. As of June 30, 2024, the company reported total revenues of $1,158.5 million for the first half of 2024, marking a 19.4% increase year-over-year. The second quarter alone contributed $587.5 million, reflecting an 18.1% year-over-year growth.

Geographic Revenue Breakdown

The revenue distribution by geographic region for the second quarter of 2024 is as follows:

Client Base

Globant serves a diverse client base. As of June 30, 2024, the company reported 958 customers generating over $100,000 in revenue over the prior twelve months. Additionally, 329 of these accounts produced more than $1 million in annual revenues, an increase from 283 accounts in the same period the previous year.

The client concentration is notable, with the top customer accounting for 8.3% of revenues, the top five customers contributing 21.0%, and the top ten customers making up 30.3% of total revenues.

Profit Margins

Globant's profitability indicators as of June 30, 2024, show the following margins:

Cost Structure

For the first half of 2024, Globant reported a cost of revenues of $746.8 million, resulting in a gross profit of $411.8 million. Selling, general, and administrative expenses for the same period were $306.7 million.

Earnings Per Share

Globant's earnings per share (EPS) figures are as follows:

Future Outlook

Globant anticipates revenues for the fiscal year 2024 to be in the range of $2,407.0 million to $2,421.0 million, implying a projected year-over-year growth of 14.8% to 15.5%. The Non-IFRS Adjusted Profit from Operations Margin is estimated to range from 15.0% to 15.5% for the same period.