Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| In a similar fashion, all of our key geographies performed strongly in Q4, witnessing a strong recovery when compared to the first half of 2023 |
| These results were driven by our strong execution across all of our growth pillars |
| We are optimistic about the impact of our work, led by our sustainable business studio, as buildings are responsible for 30% to 40% of the global carbon footprint |
| We continue to demonstrate our ability to grow profitability, to generate cash, and to manage our robust balance sheet |
| In 2023, we've achieved results that stand as evidence of our resilience, innovation, the dedication of all our Globers, and trust of our clients |
| Our full year revenues reached a milestone of $2, 096 million, a remarkable 17.7% year-over-year growth |
| Last year, we entered over 10 new markets, each with exciting growth opportunities for both our clients and delivery networks |
| I still believe we have the best-in-class and by far growth proposed for 2024 |
| Our Be Kind to yourself holistic strategy showed great results |
| I mean, 10% is an excellent number in the environment |
| So again we think that starting the year at 10% plus organic growth is a very good number |
| Brand Finance has recently named Globant as the world's fastest growing IT brand and the fifth strongest IT brand globally |
| The future growth of our total addressable market remains promising |
| Going forward after Q1, basically, we are seeing sequential growth of around 45% every quarter and that lead us to around 16.2% year-over-year growth, which is, we believe, a very strong growth for the year |
| The platforms of Gino and Sensei presented to you on last quarter's earnings call have demonstrated substantial growth |
| Our pipeline is strong and we see a positive change of tone regarding discussions of our client's long-term strategies relative to the start of last year |
| We are very proud of the positive top line growth we were able to deliver |
| We are happy to share that we concluded Q4 with a solid uptick in the Engagement Index, tracking pride, sense of belonging, likelihood to recommend, and desire to remain at Globant, of 2 percentage points from our previous pulse check, reaching a truly positive overall score of 84% |
| But again, we have a very good track record about trying to forecast what's going on and what's going to be the outlook for the year |
| Last year you kind of wrapped up the year like roughly 11% and arguably like what we heard on from you on today's call, this is much better than last year |
| This strong growth was mainly driven by an industry-leading 11% organic growth for the year |
| As of Q4, our utilization rate stood at 80.2%, and as previously conveyed to the market, we continue to have positive net additions on an organic basis, which is a reflection of the demand we see |
| We also see a great opportunity to take advantage of the heightened appeal we see in spatial computing |
| Similar to the iPhone moment that GenAI had last year, spatial computing is gaining traction as new and exciting products, such as the Apple Vision Pro, are becoming widely available |
| Also, we delivered another strong quarter of profitability, solid cash generation, and a strong balance sheet position |
| So we're very happy with that |
| The past year has been a powerful reminder of the strength inherent in our culture, the agility of our business model and the transformative impact of our work |
| We proudly work across multiple sectors, ensuring a robust and balanced business model |
| And the outlook for what's coming in that specific space is very good |
| The rest of our accounts collectively grew quarter-over-quarter by 7.1% and 21.9% year-over-year, reflecting the increasing diversity of our prime revenue sources |
| Statement |
|---|
| We've had some gross margin pressure throughout calendar ‘23 |
| There's still a lot of uncertainties going on and we didn't want to set the bar in a place that maybe depending on how the economy evolves and how the rest of the year turns out would put us in a difficult situation |
| So the impact of that is a much lower revenue for those Argentinian customers into Q1 |
| And then there was another impact that we got, which was the significant depreciation of the Argentinian economy and that resulted in renegotiation of contracts with some of our customers |
| So we continue to have those headwinds in front of us |
| Our outlook considers a demand environment that while showing signs of a recovery relative to 2023, is still below a normalized level of demand |
| But all-in-all, that gives us around $570 million, which sequentially it's 1.8% down |
| As Martin mentioned, our ability to offer current and future clients new ways of engaging and surprising users will be impacted big time |
| As I think about commentary a quarter ago, maybe a bit before that, and I look at where organic growth is at this point in terms of your expectations, it steadily come down |
| I think that we're not being conservative |
| Turning to the future outlook, we remain cautiously optimistic for 2024 |
| But again, we cannot control how and when people will change completely their mind and become very optimistic about the future and talking about growth again |
| What should we look for in terms of gross margins in calendar ‘24? And I guess some of it obviously was FX headwinds related |
| However, I genuinely believe that we are just scratching the surface of what we can do |
| Those are the main negatives |
| Surinder Thind But I guess ultimately, would you disagree with the statement that your organic growth expectations have come down over the past quarter or two? Juan Urthiague Well, I mean, the market was expecting a bigger number back in November |
| So when we combine those two events, we ended up with a slight sequential decrease heading into Q1 |
| Our attrition rate over the past 12 months is 8.1%, a record low, 1.4 percentage points lower quarter-over-quarter, and 8.6 percentage points lower year-over-year |
| That is a 1.8% sequential decrease |
| And we couldn't be more excited to bring the world's most creative global network into the mix |
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