Globant S.a. · NYSE:GLOB
Globant — Q1 2021 Earnings Presentation
30 slides from Globant's earnings presentation, May 14, 2021
Slide 1: Create your way forward
Globant > Create your way forward ~ === = ; , oe ==» =
Slide 2: We believe the future belongs to Augmented Organizations
We believe the future belongs to Augmented Organizations To become one, companies need a path into the future. They need a way forward.
Slide 3: At Globant we help you create your way forward
At Globant we help you create your way forward
Slide 4: Investment highlights
Investment highlights Pure play in the digital Global presence, leveraging and cognitive space next-gen software and the right talent and skills Organized by Studios, delivering Strong set of Accelerators domain expertise in emerging that leverage AI and other technologies technologies to reinvent k
Slide 5: Globant Recognized as a Worldwide Leader in CX Improvement
Globant Recognized as a Worldwide Leader in CX Improvement by IDC MarketScape Globant Recognized as a Worldwide Leader in CX Improvement by IDC MarketScape report IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. T
Slide 6: Market Opportunity, Resilient Business Model
Market Opportunity Resilient Business Model On top of ongoing digital trends, the By 2023, the global economy will reach current pandemic has proven that digital supremacy. Products and services digital transformation is imperative from digitally transformed enterprises will for any business: accoun
Slide 7: Digital economy and AI market statistics
60% $ 80B $ 7T Artificial Intelligence Revenue Digi-Capital forecasts that By 2022, 60%+ of is expected to grow at a 60% AR/VR could reach $80 global GDP will be CAGR through 2025. billion to $90 billion by 2023 digitized, with growth in every industry and Source: IDC's Digital Economy Model, 2019 S
Slide 8: This is Globant
YoY: 23.5% Revenue Trajectory ($M) This is GLOBANT 814 2021 CAGR 26.4% 17,250+ 659 2015 employees 522 2010 5,000+ 413 323 1,000+ 254 200 2014 2015 2016 2017 2018 2019 2020 Case Studies & Recognitions 2006 2009 2014 2016 2017 2019 2020 2021 2003 Signed Studios Listed on SOP Recognized as a 2017 BeKin
Slide 9: Some of the clients we work with
Some of the clients we work with: 9
Slide 10: Our Innovative Solutions
Our Innovative Solutions Metropolitan Police OpenBank To improve public Creating the first true access to the digital bank offering a Metropolitan Police, we highly personalized, helped build an online exclusively digital system to reduce banking. response times by 44%. Autodesk Rockwell EA Automati
Slide 11: Future centric approach with 6 core strategic pillars
Engaging Experiences We apply a Sustainable Business Strategy future centric approach that unleashes the Adaptive Organizations potential of 6 core strategic pillars that transform organizations Augmented Capabilities from stagnant to augmented. Technology & Data Culture & Agility 11
Slide 12: Our Studio model fosters creativity and innovation
Sustainable Business Strategy Culture & Agility Our Studio model fosters creativity and innovation. Engaging Experiences Under the umbrella of each of our Technology And Data pillars, our studios exist to create a way forward. They are deep pockets of expertise on the latest technologies and trends
Slide 13: Our PODs and processes enable our clients
Our PODs and processes enable our clients with the capabilities they need to create their way forward. Our Agile Pods Model aims to better align business and technology teams. They’re driven by a culture of self-regulated teamwork and collaboration that accelerates the transition from a reactive to
Slide 14: Our AI accelerators and disruptors
We do it with our AI accelerators and disruptors that are intelligently crafted to reinvent key aspects of organizations, creating a way forward in unimaginable ways. 14
Slide 15: Our global, diverse, and inclusive talent pool
ABOUT GLOBANT Luxembourg Our global, i Canada UK Germany Belarus diverse, and United States Spain France Romania inclusive Mexico India talent pool Colombia We take pride in our people, and Singapore Brazil we’re fully aware that they are our biggest strength. Peru Uruguay That’s why we work hard at
Slide 16: Global delivery model
Global delivery model Total Headcount Geographic dispersion (%) Country Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Mar-21 Argentina 69 57 49 39 34 30 30 28 Colombia 8 11 15 21 25 27 23 23 Along our journey, we Mexico 4 6 7 9 10 11 12 12 have diversified our India - 9 8 10 12 10 11 12 talent ba
Slide 17: ESG Approach
ESG Approach Our purpose is to make the world a better place, one step at a time. Integrated Report published annually. Committed with six SDG’s. Ranked at DJSI. Silver recognition level at Ecovadis. Be kind is our Sustainability strategy for the next years. Note: SDG: Sustainable Development Goals.
Slide 18: ESG Approach: Governance and Data Privacy
ESG Approach Governance ● Board of Directors: Consist of 9 Data Privacy & Security members which are elected on a staggered basis. 1/3 of the directors ● Work in progress to comply with being elected each year. GDPR, CCPA, LGPD and the laws of all geographies where Globant has ● Code of business con
Slide 19: We create our own way forward in a sustainable way
We create our own way forward in a sustainable way. We aim to reach 50% women and non-binary gender in management positions by 2025. We want to inspire 15,000 women in technology by 2025. Since 2020, we have been using 100% renewable electricity. By the end of 2021, we aim to become carbon neutral.
Slide 20: Financial review
Financial review 20
Slide 21: At a Glance
At a Glance Global Delivery Model 50 offices in 36 cities throughout 18 countries Key Statistics Headcount Distribution (as of Mar’21) $892.7M 26.4% $64k Argentina LTM Q1’21 total 2014 – 2020 LTM Q1’21 annual Colombia Revenue Revenue CAGR Revenue per IT Professional Other LatAm 39.6% 16.6% 17,250+ I
Slide 22: Significant Revenue Growth
Significant Revenue Growth Revenue ($M) Average Revenue by Client ($M) Top 10 CAGR: 25.6% CAGR(‘14-’20): 26.4% Top 20 CAGR: 24.0% YoY: 41.0% Client Revenue Contribution (%) Clients with Revenues >$1M Clients 2014 2015 2016 2017 2018 2019 2020 Top 1 9 12 10 10 11 11 11 Top 5 27 33 34 29 32 26 31 Top
Slide 23: Revenue Breakdown (Q1'21)
Revenue Breakdown (Q1’21) Geography 1% Currency North America USD LatAm and Others Others Europe Asia Industry Banks & Financial Ss. 1% Contract type 3% Media & Entertainment 1% Time & Materials Consumer, Retail & Manufacturing Fixed Price & Professional Services Others Tech & Telecom Healthcare Tra
Slide 24: Strong ability to develop accounts
Strong ability to develop accounts Increasing # of multi million $ accounts 2014 2015 2016 2017 2018 2019 2020 100 squared strategy: $20M+ 0 1 2 3 5 7 7 ● Dedicated onsite teams $10M+ 2 5 6 9 9 14 13 ● Strategic partner $5M+ 10 10 11 18 21 26 32 ● Increased visibility $1M+ 46 51 60 82 90 107 129 Ann
Slide 25: Attractive Profitability
Attractive Profitability Adjusted Gross Profit ($M) Adjusted Profit from Adjusted Net Income ($M) Operations ($M) % of revs % of revs % of revs 40.6 40.4 39.1 39.5 39.6 16.1 17.0 15.2 15.6 16.6 11.6 12.2 11.1 11.7 12.7 Note: Adjusted Gross Profit excludes depreciation and amortization and share-base
Slide 26: Our growth strategy
Our growth + strategy Main Strategic Acquisitions ● Habitant ● Focus on 1002 : 100 accounts with potential ● Cloudshift revenues of $100M+ ● Bluecap ● Studio cross-selling ● gA ● Increasing sales coverage ● Belatrix to ensure better reach ● Avanxo ● Diversification of the talent ● PointSource pool a
Slide 27: Globant Ventures
Globant Ventures STARTUP + STUDIOS We invest in technology-based Startups, making them grow rapidly to transform them ● TheEye ● Avancargo into companies that generate a real impact on ● Robin Tests ● Drixit Technologies the world seeking synergies with Globant’s ● Woocar ● UALI Value Proposition. ●
Slide 28: Leading this dream, our management team
Leading this dream, our management team BOARD OF DIRECTORS Martín Migoya Martín Gonzalo Umaran Guibert Andrés Englebienne Chairman of the Board, CEO & Co-founder Chief Corporate Development Officer, President of Globant X, President of Latam President of EMEA & Co-founder & Co-founder Linda Rottenbe
Slide 29: Forward looking disclosure
In addition to historical information, this presentation might contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “con
Slide 30: ARE YOU READY?
ARE YOU READY?