GlobantInvestors

SAN FRANCISCO, Feb. 17, 2016 /PRNewswire/ -- Globant (NYSE: GLOB), a digitally-native technology services company focused on creating digital journeys, today announced results for the three and twelve months ended December 31, 2015.

Full Year 2015 Highlights

• Revenue for the full year increased to $253.8 million, the company's highest annual revenue to date, representing 27.2% year-over-year growth.
• Non-IFRS Adjusted Gross Profit for the full year was $98.7 million (38.9% Non-IFRS Adjusted Gross Profit Margin), an increase of $16.9 million compared to $81.7 million (and a decrease of 210 bps compared to 41.0% Non-IFRS Adjusted Gross Profit Margin) in 2014.
• Non-IFRS Adjusted Net Income for the full year was $34.3 million (13.5% Non-IFRS Adjusted Net Income Margin), an increase of $8.5 million compared to $25.9 million (13.0% Non-IFRS Adjusted Net Income Margin) in 2014, representing 32.7% year-over-year growth.
• Non-IFRS Adjusted Diluted EPS for the full year was $0.98 per share (based on 35.0 million average diluted shares for the year), an increase of $0.17 compared to $0.81 per share in 2014.

Fourth Quarter 2015 Highlights

• Revenue for the fourth quarter amounted to $71.6 million, representing 29.8% year-over-year growth.
• Non-IFRS Adjusted Gross Profit for the fourth quarter was $28.1 million (39.2% Non-IFRS Adjusted Gross Profit Margin), an increase of 20 bps compared to the third quarter of 2015 and a decrease of 50 bps compared to the fourth quarter of 2014. 
• Non-IFRS Adjusted Net Income for the fourth quarter was $9.0 million (12.6% Non-IFRS Adjusted Net Income Margin), an increase of $0.9 million, or 10.8%, compared to a profit of $8.1 million for the fourth quarter of 2014.
• Non-IFRS Adjusted Diluted EPS for the fourth quarter was $0.26 per share (based on 35.2 million average diluted shares for the quarter), an increase of $0.02 compared to Non-IFRS Adjusted Diluted Profit per Share of $0.24 for the fourth quarter of 2014.

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

"I am very excited by our 2015 performance. Our revenues increased to $253.8 million, a robust 27.2% increase compared to 2014, driven by strong growth in our top accounts and increasing demand for our digital journeys. At the same time we delivered strong Adjusted EPS for the full year, reaching $0.98 cents.

Market demand for our services remains strong. Our revenue increased 29.8% during this quarter compared to the fourth quarter of 2014. Our top customer revenues increased 88% compared to a year ago and exceeded $31 million during 2015," explained Martín Migoya, Globant's CEO and co-founder.

Migoya added: "Industry experts suggest that the move towards "Digital" will be a secular change for the IT Services. The use of Emerging Technologies to transform businesses has become a requirement for large organizations in today's competitive environment, which is what we reflect in our newly launched book, The Never Ending Digital Journey. Globant, with its vast experience creating digital journeys that matter for millions of consumers combined with its studio model, continues to be at the forefront of these trends. We believe our compelling value proposition in the digital space will continue to be a strategic advantage for our company going forward."

"Q4 2015 and full year revenues and EPS exceeded our expectations once again. Positive macro trends combined with solid execution translated into another successful year for our company. The strong net additions of Globers coupled with a slight reduction in attrition place us in a solid position to have a great 2016." explained Alejandro Scannapieco, Globant's CFO.

Globant completed the quarter with 5,041 Globers, 4,613 of whom were IT professionals. The geographic revenue breakdown for the fourth quarter was as follows: 81.7% from North America (top country: U.S.), 12.2% from Latin America and others (top country: Chile) and 6.0% from Europe (top country: U.K.). 93.2% of Globant's revenue for the fourth quarter was denominated in U.S. dollars and G.B. pounds and the remaining 6.8% was in other currencies.

During the 12 months ended December 31, 2015, Globant served 344 customers, 51 of which accounted for more than $1 million of Globant's revenues.  Globant's top customer, top 5 customers and top 10 customers represented 12.7%, 34.4% and 46.4% of the fourth quarter revenues, respectively.

Cash and investments as of December 31, 2015 increased to $62.4 million from $62.2 million as of December 31, 2014, while borrowings decreased to $0.5 million compared to $1.3 million as of December 31, 2014. Current assets amounted to $127.8 million, accounting for 57.4% of total assets. As of December 31, 2015 there were 34.2 million common shares issued and outstanding.

2016 First Quarter and Full Year Outlook

Based on current market conditions, Globant is providing the following estimates for the first quarter and for the full year 2016:

• First quarter revenue is estimated to be between $69 - $71 million. 
• First quarter Non-IFRS diluted EPS is estimated to be in the range of $0.21 - $0.25 (assuming 35.3 million average diluted shares outstanding for the quarter).
• Fiscal year 2016 revenue is estimated to be between $305- $314 million
• Fiscal year 2016 Non-IFRS diluted EPS is estimated to be in the range of $1.12 - $1.20 (assuming 35.8 million average diluted shares outstanding for the full year).

Conference Call and Webcast

Martín Migoya and Alejandro Scannapieco will discuss the three-month 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 digitally native technology services company. We dream and build digital journeys that matter to millions of users. We are the place where engineering, design, and innovation meet scale. Today, Globant has more than 5,000 professionals in 11 countries working for companies like Google, eBay Classifieds Group, JWT, EA and Coca-Cola, among others, 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 in case studies 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)

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

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

Globant S.A.
Schedule of Supplemental Information

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

Media Contact:
Wanda Weigert, Globant
pr@globant.com
(877) 215-5230

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SOURCE Globant