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Globant Reports Record Annual Revenues and EPS for 2014
Globant Presents 2014 Fourth Quarter and Full Year Results

SAN FRANCISCO, Feb. 11, 2015 /PRNewswire/ -- Globant (NYSE: GLOB), a new-breed technology services provider focused on delivering innovative software solutions by leveraging emerging technologies and trends, today announced results for the three months and the full year ended December 31, 2014.

Globant Logo

Full Year 2014 Highlights

  • Revenue for the full year increased to $199.6 million, the company's highest annual revenue to date, representing 26.1% year-over-year growth.
  • Non-IFRS Adjusted Gross Profit for the full year was $81.8 million (41.0% Non-IFRS Adjusted Gross Profit Margin), an increase of $19.7 million compared to $62.1 million (and an increase of 170 basis points compared to 39.2% Non-IFRS Adjusted Gross Profit Margin) in 2013.
  • Non-IFRS Adjusted Net Income for the full year was $25.9 million (13.0% Non-IFRS Adjusted Net Income Margin), an increase of $11.3 million compared to $14.6 million (9.2% Non-IFRS Adjusted Net Income Margin) in 2013, representing 77.7% year-over-year growth.
  • Non-IFRS Adjusted Diluted EPS for the full year was $0.81 per share (based on 31.9 million average diluted shares for the year), an increase of $0.30 compared to $0.51 per share in 2013.

Fourth Quarter 2014 Highlights

  • Revenue for the fourth quarter increased to $55.1 million, another quarterly record for the company, representing 19.2% year-over-year growth.
  • Non-IFRS Adjusted Gross Profit for the fourth quarter was $21.9 million (39.7% Non-IFRS Adjusted Gross Profit Margin), an increase of $3.8 million compared to $18.1 million (and an increase of 50 basis points compared to 39.2% Non-IFRS Adjusted Gross Profit) for the fourth quarter of 2013.
  • Non-IFRS Adjusted Net Income for the fourth quarter was $8.1 million (14.8% Non-IFRS Adjusted Net Income Margin), an increase of $11.7 million compared to a loss of $3.6 million for the fourth quarter of 2013.
  • Non-IFRS Adjusted Diluted EPS for the fourth quarter was $0.24 per share (based on 34.3 million average diluted shares for the quarter), an increase of $0.36 compared to Non-IFRS Adjusted Diluted Loss per Share of $0.12 for the fourth quarter of 2013.

Reconciliations between Non-IFRS / adjusted financial measures and IFRS operating results are included at the end of this press release.

"We are thrilled to end 2014 with record annual and quarterly revenues, which show how much value we are delivering for our customers. During the last months of 2014, we continued reinforcing our position as a leader in the creation of innovative software products, bringing in new logos to our portfolio and working on disruptive projects such as the development together with Google of Project ARA's marketplace," described Martin Migoya, Globant CEO and co-founder. "We continued our geographic expansion, opening more development centers in Mexico City, Mexico, Lima, Peru and Mar del Plata, Argentina. These new centers have allowed us to add more talent into our team. Our Studios model continues to blossom and deliver the best solutions for consumer-oriented initiatives involving emerging technologies."     

"We are also very pleased with our robust financial performance. During 2014, we delivered record revenues and earnings and significantly improved our gross and operating margins," explained Alejandro Scannapieco, Globant's CFO.

Globant finished the quarter with 3,775 Globers, of which 3,424 were IT professionals.  Geographic revenue breakdown for the full year was as follows: 81.7% from North America (top country: U.S.), 12.4% from Latin America and others (top country: Chile) and 5.9% from Europe (top country: U.K.). 92.4% of Globant's revenue for the full year was denominated in U.S. dollars, with 0.8% in British pounds and 6.8% in other currencies.

Globant ended 2014 with 296 customers served during the last 12 months. Of these, 46 were customers with revenues of more than $1 million during that period.  Globant's top customer represented 8.7% of annual revenues, the top 5 customers represented 27.8% of annual revenues and the top 10 customers represented 43.9% of annual revenues.

Cash and investments as of December 31, 2014 increased to $62.2 million, and borrowings decreased to $1.3 million compared to $11.8 million as of December 31, 2013.  Total shares outstanding as of December 31, 2014 were 33,603,900 common shares.

First Quarter and 2015 Full Year Outlook

The Company is providing the following guidance:

  • First quarter revenue is estimated to be between $51-$53 million,
  • First quarter Non-IFRS diluted EPS is estimated to be in the range of $0.14 - $0.18 (assuming 34.5 million average diluted shares outstanding for the quarter).
  • Fiscal year 2015 revenue is estimated to be between $237 - $245 million.
  • Fiscal year 2015 Non-IFRS diluted EPS is estimated to be in the range of $0.85 - $0.93 (assuming 34.8 million average diluted shares outstanding for the full year).

Conference Call and Webcast

Martin Migoya and Alejandro Scannapieco will discuss the three-month and full year results in a conference call today beginning at 4:30pm ET.

Conference call access information is:
US +1-888-346-2877
International +1-412-902-4257
Webcast http://investors.globant.com/

Additionally, a replay will be available via the same dial-in information and in our investor relations website after the call.

About Globant

Globant (NYSE: GLOB) is a new-breed technology services provider focused on delivering innovative software solutions by leveraging emerging technologies and trends.  Globant combines the engineering and technical rigor of IT services providers with the creative approach and culture of digital agencies. Customers select Globant as the place where engineering, design and innovation meet scale.  In only 12 years, Globant has grown into a company with more than 3750 professionals working for customers like Google, Linkedin, JWT, EA and Coca-Cola, among others, has become the first software company from Latin America to do an IPO in the US, has been recognized as one of the Top 10 Most Innovative Companies in South America by FastCompany, was included in the 2010 Cool Vendor in Business Process Services Report by Gartner, and has been featured as case study at Harvard, MIT and Stanford.  For more information visit www.globant.com.

Non-IFRS Financial Information

Globant provides non-IFRS financial measures to complement reported IFRS results. Management believes these measures help illustrate underlying trends in the company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the company's business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS results that exclude share-based compensation expense, amortization of purchased intangible assets, and provisions resulting from changes in valuation allowances. Because the company's reported non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company's industry. Consequently, Globant's non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its consolidated financial statements, which are prepared according to IFRS.

Forward Looking Statements

In addition to historical information, this release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include information about possible or assumed future results of our business and financial condition, as well as the results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding: the persistence and intensification of competition in the IT industry; the future growth of spending in IT services outsourcing generally, application outsourcing and custom application development and offshore development services; the level of growth of demand for our services from our clients; the level of increase in revenues from our new clients; the resource utilization rates and productivity levels, the level of attrition of our IT professionals; the pricing structures we use for our client contracts; general economic and business conditions in the locations in which we operate; the levels of our concentration of revenues by vertical, geography, by client and by type of contract in the future; the continuity of the tax incentives available for software companies with operations in Argentina; Argentina's regulations on proceeds from the export of services; our expectation that we will be able to integrate and manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands we expect our rapid growth to place on our management and infrastructure; the sufficiency of our current cash, cash flow from operations, and lines of credit to meet our anticipated cash needs; the high proportion of our cost of services comprised of personnel salaries; and other factors discussed under the heading "Risk Factors" in the final prospectus for our initial public offering and other documents filed with the Securities and Exchange Commission.

These forward-looking statements involve various risks and uncertainties. Although the registrant believes that its expectations expressed in these forward-looking statements are reasonable, its expectations may turn out to be incorrect. The registrant's actual results could be materially different from its expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed might not occur, and the registrant's future results and its performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make any investment decision based on these estimates and forward-looking statements.  Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

Globant S.A.
Consolidated Statement of Profit or Loss and Other Comprehensive Income
(In thousands of U.S. dollars, except per share amounts, unaudited)














Year ended


Three months ended




Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013











Revenues 



199,605


158,324


55,117


46,235

Cost of revenues 



(121,693)


(99,603)


(34,360)


(29,330)

Gross profit



77,912


58,721


20,757


16,905











Selling, general and administrative expenses 



(57,288)


(54,841)


(15,852)


(16,103)

Impairment of tax credits, net



1,505


(9,579)


2,326


(9,579)

Profit (Loss) from operations



22,129


(5,699)


7,231


(8,777)











Gain on transactions with bonds 



12,629


29,577


2,606


8,758

Finance income



10,269


4,435


2,192


4,178

Finance expense



(11,213)


(10,040)


(1,488)


(6,009)

Finance expense, net



(944)


(5,605)


704


(1,831)











Other income and expenses, net



380


1,505


430


(198)

Profit (Loss) before income tax



34,194


19,778


10,971


(2,048)











Income tax



(8,931)


(6,009)


(2,823)


(1,794)

Net income (Loss) for the year / period



25,263


13,769


8,148


(3,842)











Other comprehensive loss net of income tax










Items that may be reclassified subsequently to profit and loss:










- Exchange differences on translating foreign operations



(433)


(269)


(261)


7

Total comprehensive income (loss) for the year / period



24,830


13,500


7,887


(3,835)











Net income (Loss) attributable to:










Owners of the Company



25,201


13,900


8,143


(3,711)

Non-controlling interest



62


(131)


5


(131)

Net income (Loss) for the year / period



25,263


13,769


8,148


(3,842)











Total comprehensive income (loss) for the year / period attributable to:










Owners of the Company



24,768


13,631


7,882


(3,704)

Non-controlling interest



62


(131)


5


(131)

Total comprehensive income (loss) for the year / period



24,830


13,500


7,887


(3,835)





















Earnings per share 










Basic



0.81


0.50


0.24


-0.13

Diluted



0.79


0.48


0.24


-0.13

Weighted average of outstanding shares (in thousands)










Basic



30,926


27,891


33,374


28,245

Diluted



31,867


28,884


34,315


29,139

 

Globant S.A.
Consolidated Statement of Financial Position
(In thousands of U.S. dollars, unaudited)










Dec 31, 2014


Dec 31, 2013



ASSETS






Current assets






Cash and cash equivalents 



34,195


17,051

Investments



27,984


9,634

Trade receivables



40,056


34,418

Other receivables 



14,228


6,346

Total current assets



116,463


67,449







Non-current assets






Other receivables 



916


5,987

Deferred tax assets



4,881


3,117

Investment in associates



774


-

Other financial assets



-


1,284

Property and equipment



19,213


14,723

Intangible assets



6,105


6,141

Goodwill



12,772


13,046

Total non-current assets



44,661


44,298

TOTAL ASSETS



161,124


111,747







LIABILITIES






Current liabilities






Trade payables 



5,673


8,016

Payroll and social security taxes payable



20,967


17,823

Borrowings



513


1,048

Other financial liabilities



1,045


6,023

Tax liabilities



3,445


5,190

Other liabilities 



173


24

Total current liabilities



31,816


38,124







Non-current liabilities






Borrowings



772


10,747

Other financial liabilities



263


2,740

Provisions for contingencies



794


271

Total non-current liabilities



1,829


13,758

TOTAL LIABILITIES



33,645


51,882







Capital and reserves






Issued and paid-in capital



40,324


34,794

Additional paid-in capital



50,276


12,468

Foreign currency translation reserve



(711)


(278)

Retained earnings



37,590


12,389

Total equity attributable to owners of the Company



127,479


59,373

Non-controlling interests



-


492

Total equity



127,479


59,865

TOTAL EQUITY AND LIABILITIES



161,124


111,747







Supplemental Non-IFRS Financial Information
(In thousands of U.S. dollars, unaudited)














Year ended


Three months ended




Dec 31, 2014


Dec 31, 2013


Dec 31, 2014


Dec 31, 2013











Reconciliation of adjusted gross profit










Gross Profit



77,912


58,721


20,757


16,905

Adjustments










D&A



3,813


3,215


1,162


1,093

Share Based Compensation



35


190


-


117

Adjusted gross profit



81,760


62,126


21,919


18,115

Adjusted gross profit margin



41.0%


39.2%


39.8%


39.2%











Reconciliation of selling, general and administrative expenses









Selling, general and administrative expenses



-57,288


-54,841


-15,852


-16,103

Adjustments










D&A



4,221


3,941


1,173


915

Share Based Compensation



582


603


-


152

Adjusted selling, general and administrative expenses



-52,485


-50,297


-14,679


-15,036

Adjusted selling, general and administrative expenses as % of revenues

-26.3%


-31.8%


-26.6%


-32.5%











Reconciliation of Adjusted Profit from Operations










Operating Profit



22,129


-5,699


7,231


-8,777

Adjustments










Impairment of tax credits



-1,505


9,579


-2,326


9,579

Share Based Compensation



617


793


-


269

Adjusted Profit from Operations



21,241


4,673


4,905


1,071

Adjusted Operating Profit margin



10.6%


3.0%


8.9%


2.3%











Reconciliation of Net income (loss) for the year / period










Net income (loss) for the year / period



25,263


13,769


8,148


-3,842

Adjustments










Share Based Compensation



617


793


-


269

Adjusted Net income (loss)



25,880


14,562


8,148


-3,573

Adjusted Net income (loss) margin



13.0%


9.2%


14.8%


-7.7%

Globant S.A.
Schedule of Supplemental Information






Metric

Q1 2014

Q2 2014

Q3 2014

Q4 2014






Total Employees

3,332

3,371

3,567

3,775

IT Professionals

3,000

3,050

3,217

3,424






North America Revenue %

79.9

81.1

82.3

83.1

Latin America Revenue %

13.0

13.0

11.9

12.0

Europe Revenue %

7.1

6.0

5.8

4.9






USD Revenue %

88.9

91.8

93.5

94.6

GBP Revenue %

1.3

0.8

0.6

0.7

Other Currencies Revenue %

9.8

7.4

5.9

4.8






Top Customer %

7.1

10.1

8.8

8.8

Top 5 Customers %

25.4

29.0

29.2

28.9

Top 10 Customers %

39.8

44.8

46.2

44.8






LTM Customers Served

266

278

299

296

LTM Customers with >$1 million in Revenue

42

42

45

46

Investor Relations Contact:
Juan Urthiague, Globant
investors@globant.com 
+1-877-215-5230

Media Contact:
Wanda Weigert, Globant
press@globant.com 
+1-877-215-5230

Logo - http://photos.prnewswire.com/prnh/20120802/MX50844LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/globant-reports-record-annual-revenues-and-eps-for-2014-300034472.html

SOURCE Globant


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