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Mar 31

Globant Q1 2025 Earnings Report

Globant reported modest growth in Q1 2025 with stable margins and continued investment in AI and innovation.

Key Takeaways

Globant achieved $611.1M in revenue and maintained healthy profitability amid macroeconomic challenges. The company emphasized its strategic focus on AI and a robust client pipeline for future growth.

Revenue reached $611.1M, growing 7.0% YoY.

Adjusted diluted EPS held strong at $1.50 despite macro pressures.

Gross profit margin remained steady; adjusted margin was 38.0%.

Client base expanded with 341 customers generating over $1M annually.

Total Revenue
$611M
Previous year: $571M
+7.0%
EPS
$1.5
Previous year: $1.53
-2.0%
Gross Profit Margin
34.9%
Previous year: 35.4%
-1.4%
Adj. Gross Profit Margin
38%
Previous year: 38%
+0.0%
Operating Margin
8.2%
Previous year: 8.4%
-2.4%
Gross Profit
$213M
Previous year: $177M
+20.4%
Cash and Equivalents
$114M
Previous year: $238M
-52.0%
Free Cash Flow
-$11.7M
Previous year: -$4.84M
+142.2%
Total Assets
$3.24B
Previous year: $2.67B
+21.2%

Globant

Globant

Globant Revenue by Geographic Location

Forward Guidance

Globant projects sequential growth in Q2 and continued margin strength for FY25.

Positive Outlook

  • Q2 2025 revenue expected to reach at least $612.0M.
  • Q2 adjusted operating margin forecasted at minimum 15.0%.
  • Q2 adjusted EPS guidance at or above $1.52.
  • FY25 revenue outlook of at least $2.464B, up 2.0% YoY.
  • Sustained emphasis on AI innovation and margin discipline.

Challenges Ahead

  • FX-neutral growth in Q2 suggests limited acceleration.
  • IFRS EPS dropped from $1.02 to $0.68 YoY in Q1.
  • Net income decreased 32% compared to Q1 2024.
  • Cash flow from operations was modest at $15.7M.
  • Free cash flow was negative due to high capital expenditures.

Revenue & Expenses

Visualization of income flow from segment revenue to net income