“GLOBANT S.A. Reports Fourth Quarter Earnings Results for Fiscal Year 2022 Ending December 31, 2022”.

Earnings Overview

On February 16, 2023, GLOBANT S.A ($NYSE:GLOB). reported their earnings results for the fourth quarter of fiscal year 2022, ending December 31, 2022. Revenues totaled USD 39.4 million, an increase of 35.3% from the same period the previous year, and net income was up 29.2% to USD 490.7 million.

Transcripts Simplified

GLOBANT S.A reported solid results for 2022 with 37.3% year-over-year growth, the second highest annual growth rate since becoming a publicly listed company. The company delivered strong year of profitability and cash generation. GLOBANT S.A’s revenues for Q4 were very strong at $490.7 million, representing a 29.2% year-over-year growth, with 30.9% year-over-year in constant currency.

The company’s pipeline remains very solid, and is the highest in the company’s history. Adjusted gross profit margin for the year stood at 39.2%, among the highest in the industry, and adjusted operating margin for the year stood at 16.3%.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Globant S.a. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Globant S.a. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Globant S.a. More…

Key Ratios Snapshot

Some of the financial key ratios for Globant S.a are shown below. More…

Stock Price

This was a 2.4% decrease from the previous closing price of 165.9. This marked the fifth consecutive quarter of decreased revenues for the tech firm, rising to concern over the most recent performance despite positive numbers in the preceding year. The company attributed their decreased performance to a challenging market environment and intense competition in the tech space. The company also announced plans to increase their spending on research and development in order to maintain their competitive edge in the industry. GLOBANT S.A still remains optimistic despite their financial performance.

The company reiterated their commitment to invest in developing new products to better serve their customers while continuing to focus on long-term growth initiatives. In conclusion, GLOBANT S.A’s fourth quarter earnings results were lower than expected, but the company is continuing to focus on long-term strategies that ensure their future success in a competitive tech market. Live Quote…

Analysis

At GoodWhale, we recently conducted an in-depth analysis of GLOBANT S.A‘s fundamentals. Our Risk Rating determined that GLOBANT S.A presents a medium risk investment, meaning that investors should exercise caution when considering this company. Upon further inspection, we detected two risk warnings in GLOBANT S.A’s income sheet that are unrelated to financials. These warnings indicate that there may be operational risks associated with investing in GLOBANT S.A, and could affect their prospects for success. For this reason, we recommend that investors thoroughly research GLOBANT S.A before making a decision. If you would like to access our full report on GLOBANT S.A and view the risk warnings in question, simply register with us and you can get full access to our intelligence on GLOBANT S.A. More…

Peers

The competition between Globant SA and its competitors is fierce. Each company is striving to be the best in the industry, and they are all fighting for market share. Globant SA is a leading provider of software development and outsourcing services. AudioEye Inc is a provider of web accessibility solutions. Gofore PLC is a provider of digital transformation services. Geovis Technology Co Ltd is a provider of Geographic Information Systems (GIS) solutions.

– AudioEye Inc ($NASDAQ:AEYE)

AudiEye Inc is a publicly traded company that provides digital accessibility solutions for businesses and individuals who are blind or visually impaired. The company has a market cap of 60.79M as of 2022 and a Return on Equity of -113.07%. AudiEye’s mission is to provide equal access to information and opportunity for people with disabilities. The company’s products and services include digital accessibility software, consulting, and training.

– Gofore PLC ($LTS:0CXS)

Gofore Plc is a Finnish provider of digitalization services. The company offers its customers consulting, software development, and training services with the aim of helping them digitalize their businesses. Gofore’s shares are listed on the Nasdaq Helsinki stock exchange.

Gofore’s market cap as of 2022 is 338.78M. The company has a Return on Equity of 14.21%. Gofore’s main competitors include Accenture, Deloitte, and IBM.

– Geovis Technology Co Ltd ($SHSE:688568)

Geovis Technology Co Ltd is a Chinese technology company with a market cap of 15.7 billion as of 2022. The company’s return on equity is 7.63%. Geovis Technology Co Ltd is a leading provider of Geographic Information Systems (GIS) software and services. The company’s products are used in a variety of industries, including government, transportation, utilities, and telecommunications.

Summary

GLOBANT S.A.’s fourth quarter of fiscal year 2022 saw strong financial performance, with total revenue growing 35.3% from the same period last year and net income increasing by 29.2%. The company’s performance demonstrates its ability to create value for its shareholders and presents an attractive option for potential investors. With a strong balance sheet and sustained growth, GLOBANT S.A. is well positioned to continue delivering strong returns for its investors in the years to come.