Globant shares up 5% as Q2 earnings and revenue top estimates, outlook solid

LUXEMBOURG - Globant (NYSE:GLOB) shares gained 5.4% after the digital technology services provider reported second quarter results that exceeded analyst expectations and provided a solid outlook.

The company posted adjusted earnings per share of $1.51, beating the consensus estimate of $1.49. Revenue rose 18.1% year-over-year to $587.5 million, slightly above the $586.68 million analysts were expecting.

"We achieved revenues of $587.5 million, up 18.1% year-over-year, driven by a broad-based performance," said Juan Urthiague, Globant's CFO. "Our ability to maintain high profitability, despite the challenging economic environment, is a reflection of our operational efficiency."

For the third quarter, Globant expects revenue between $611 million and $617 million, representing 12.1% to 13.2% YoY growth. The company sees Q3 adjusted EPS of $1.60-$1.64.

For the full year 2024, Globant forecasts revenue of $2.407 billion to $2.421 billion, implying 14.8% to 15.5% annual growth. It projects adjusted EPS of $6.30-$6.50 for the year.

The company highlighted strong growth in AI-related revenues, which increased nearly 130% in the first half of 2024. Globant served 958 customers in the last 12 months, with 329 generating over $1 million in annual revenue.

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Source: Investing.com