Globant (GLOB) Tops Q2 EPS by 3c, Revenues Beat; Offers 3Q EPS/Revenues Guidance Above Consensus

Globant (NYSE: GLOB) reported Q2 EPS of $0.51, $0.03 better than the analyst estimate of $0.48. Revenue for the quarter came in at $182.7 million versus the consensus estimate of $179.9 million.

Second Quarter 2020 Financial Highlights

• Revenues rose to $182.7 million, representing 16.0% year-over-year growth compared to the second quarter of 2019.
• IFRS Gross Profit margin was 36.3% compared to 38.5% in the second quarter of 2019.
• Non-IFRS Adjusted Gross Profit Margin was 38.2% compared to 40.2% in the second quarter of 2019.
• IFRS Profit from Operations Margin was 8.1% compared to 12.3% in the second quarter of 2019.
• Non-IFRS Adjusted Profit from Operations Margin was 13.5% compared to 16.4% in the second quarter of 2019.
• IFRS Diluted EPS was $0.26 compared to $0.36 in the second quarter of 2019.
• Non-IFRS Adjusted Diluted EPS was $0.51 compared to $0.53 in the second quarter of 2019.

"As we start the second half of 2020, we are seeing ourselves emerge into a new world. The pandemic has already changed many aspects of our lives and I am proud of how our company continues to accompany our employees, vendors, communities and customers to evolve," said Martín Migoya, Globant CEO and co-founder. "The pandemic has sparked the need for digital transformation across many industries and regions. Organizations need to reinvent themselves in order to address new consumer needs, so this presents a unique opportunity for us. As a leader in digital and cognitive transformation we know we can be the best partners to support our clients in their journeys. We will continue to invest in our global expansion and in our expertise around the latest trends to reinforce our positioning as a pure digital player."

"We have achieved solid results while navigating a challenging environment. We delivered revenues and adjusted diluted earnings per share above our expectations. Organic recovery looks strong for the third quarter and we are very enthusiastic with gA's acquisition," explained Juan Urthiague, Globant's CFO.

GUIDANCE:

Globant sees Q3 2020 EPS of $0.58, versus the consensus of $0.54. Globant sees Q3 2020 revenue of $203 million, versus the consensus of $188.87 million.

Based on current market conditions, Globant is providing the following estimates for the third quarter of 2020:

• Third quarter 2020 Revenues are estimated to be at least $203 million, or 18.5% year over year growth.
• Third quarter 2020 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 13.5%-15.5%.
• Third quarter 2020 Non-IFRS Adjusted Diluted EPS is estimated to be at least $0.58 (assuming an average of 40.9 million diluted shares outstanding during the third quarter).

Due to the ongoing uncertainty related to the potential impacts of COVID-19 on the Company's full year financial results, Globant is not providing a full year 2020 financial outlook at this time.

For earnings history and earnings-related data on Globant (GLOB) click here.

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