Globant (NYSE: GLOB) reported Q1 EPS of $0.64, $0.02 better than the analyst estimate of $0.62. Revenue for the quarter came in at $191.6 million versus the consensus estimate of $188.79 million.

First Quarter 2020 Financial Highlights

• Revenues rose to $191.6 million, representing 31.1% year-over-year growth compared to the first quarter of 2019.
• IFRS Gross Profit margin was 37.7% compared to 39.3% in the first quarter of 2019.
• Non-IFRS Adjusted Gross Profit Margin was 39.5% compared to 41.1% in the first quarter of 2019.
• IFRS Profit from Operations Margin was 9.8% compared to 12.6% in the first quarter of 2019.
• Non-IFRS Adjusted Profit from Operations Margin was 15.6% compared to 16.9% in the first quarter of 2019.
• IFRS Diluted EPS was $0.35 compared to $0.32 in the first quarter of 2019.
• Non-IFRS Adjusted Diluted EPS was $0.64 compared to $0.50 in the first quarter of 2019.

Cash and Other Metrics for the Quarter ended March 31, 2020

• Cash and cash equivalents and Short-term investments totaled $134.2 million as of March 31, 2020, an increase of $51.7 million, from $82.5 million as of December 31, 2019. During the first quarter of 2020, we drew an additional $75 million from our credit facility, totaling $125.7 million as of March 31, 2020.
• Globant completed the first quarter with 12,538 Globers, 11,755 of whom were technology, design and innovation professionals.
• The geographic revenue breakdown for the first quarter was as follows: 74.5% from North America (top country: US), 19.5% from Latin America and others (top country: Argentina) and 6.0% from Europe (top country: Spain).
• In terms of currencies, 86.8% of Globant's revenues for the first quarter were denominated in US dollars.
• During the twelve months ended March 31, 2020, Globant served a total of 876 customers and continued to increase its wallet share, having 112 accounts with more than $1 million of annual revenues, compared to 91 for the same period one year ago.
• Globant's top customer, top five customers and top ten customers represented 11.7%, 29.1% and 41.0% of first quarter revenues, respectively.

"We are all living uncertain times as we go through the COVID-19 pandemic, and I am proud that at Globant we have continued taking good care of our employees, partnering with our customers and vendors, and assisting the communities where we operate," said Martín Migoya, Globant's CEO and co-founder. "Our rapid response to the crisis has enabled us to reinforce our relations with our customers, as we help them prepare and transform for the new future. This crisis is presenting new challenges and a more uncertain scenario, though we do not yet know the full extent of the impact that the spread of the COVID-19 pandemic may have on the global economy and therefore on our business, we are confident that as a pure digital player we are extremely well positioned to help companies reinvent themselves and move further into their digital and cognitive transformation."

"Despite this uncertain situation, our strong differentiators enabled us to have a great performance in the first quarter where we delivered revenues and adjusted diluted earnings per share above our expectations. Revenues for the quarter amounted to $191.6 million dollars, a new record for our company which represented an outstanding 31.1% year over year growth, and with minimal impact from COVID-19," Migoya added.

"Once again we completed a very successful first quarter. Revenues grew more than 30%, our adjusted net income margin was 12.7% and net hirings were very strong. We continue to focus on executing with excellence in this challenging environment," explained Juan Urthiague, Globant's CFO.

GUIDANCE:

Globant sees Q2 2020 EPS of $0.47, versus the consensus of $0.49. Globant sees Q2 2020 revenue of $179 million, versus the consensus of $173.8 million.

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

• Second quarter 2020 Revenues are estimated to be at least $179 million.
• Second quarter 2020 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 12.5%-14.5%.
• Second quarter 2020 Non-IFRS Adjusted Diluted EPS is estimated to be at least $0.47 (assuming an average of 38.2 million diluted shares outstanding during the second quarter).

Due to the 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.