Globant S.A.

Good day and welcome to Globant's second quarter 2022 earnings conference call. I am Arturo Langa, Investor Relations Officer at Globant. All participants on this call will be on listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded and streamed live on YouTube. By now, you should have received a copy of the earnings release. If you have not, a copy is available on our website, investors.globant.com. Our speakers today are Martin Migoya, co-founder and chief executive officer, Juan Urtiaga, chief financial officer, Patricia Pomias, chief operating officer, and Diego Tartara, global chief technology officer. Before we begin, I would like to remind you that some of the comments on our call today may be deemed forward-looking statements. This includes our business and financial outlook and the answers to some of your questions. Such statements are subject to the risks and uncertainties as described in the company's earnings release and other filings with the SEC. Please note that we follow IFRS accounting rules in our financial statements. During our call today, we will report non-IFRS or adjusted measures, which is how we track performance internally and the easiest way to compare Globan to our peers in the industry. You will find a reconciliation of IFRS and non-IFRS measures at the end of the press release we published on our investor relations website announcing this quarter's results. I'd now like to turn the call over to Martin Migoya, our CEO.

Thank you, Arturo, and hello, everyone. Please join me in welcoming Arturo, our new investor relations officer. It is great to be back with you after another strong quarter of growth. I am happy to discuss how we will continue to reinvent this industry moving forward. But first, let's look at Q2. Total revenue was $429.3 million, representing 40.6% year-over-year growth and 6.9% quarter-over-quarter growth. In the eight years since our IPO, Globan has consistently delivered industry-leading growth of approximately 31% CAGR. We will keep to our growth mindset as Globan expands in its geographies, reinvention offerings, and array of platforms. Our commitment only strengthened in today's market environment. We see an increasing demand of our services and perspectives. The competitive landscape presents macroeconomic challenges. Leaders need to improve efficiency of their current business as well as finding new and better ways to reach a wider audience. They need to make decisions in a data-driven, agile, and innovative way to stay ahead of the innovation curve. We see these challenges as an opportunity. Globan will be focusing its capabilities on the fastest growing areas of the digital products and professional services industry. We see positive potential in demand. According to Gartner's recent sector forecast, business leaders are focusing on long-term ROI initiatives. These include projects in digital transformation, blockchain and artificial intelligence in contracts of three or more years. At Globan, we specialize in developing long-term relationships with our clients. We always focus on developing these relationships moving forward and create new ones. To move forward, we are executing across our strategic growth pillars. First, our geographic expansion. In June, we announced our expansion to Canada with a new office in Toronto. It will be our hub to access an amazing pool of talent and expand our reach to more organizations in the $1.7 trillion Canadian economy. We have already been serving key players in Canada for several years, including EY and Electronic Arts, among others. We look forward to expanding our offering in the coming months. We're also strengthening our presence in Europe and reinforcing our global delivery network. We're excited to announce that we have started operations in Poland. Our new talent hub in Warsaw will be the creation space for over 150 new Glovers and will be a great location to continue delivering the best products for our customers worldwide. Our second growth pillar is Globant's platform. Let me share some exciting news. We're launching a new wallet for digital assets. Within the crypto space, we see great potential with the wider adoption of the Lightning Network. With this innovation, transaction times are nearly instant and transaction costs are significantly reduced. This makes it more scalable and simple for the general public to operate. Globem will be taking this a step further by enabling people to enter the crypto space without even leaving an app that they already know and use. Our new product Lightning Chat is an intuitive custodial wallet that can be completely operated via WhatsApp. the global messaging platform used by over 2 billion people worldwide. With Lightning Chat, users interact via WhatsApp to send, receive, and swap cryptocurrencies. For those of you who have WhatsApp and who are watching this earnings call live, I invite you to try this for yourself. With your mobile device, scan the QR code you see on your screen, And we will even give you some free satoshis for the first ones to try out this new product. And finally, our third growth pillar, our studio offering. We're launching three new studios. The automotive and retail reinvention studios aim to help our clients transform these industries. Also, our new Fast Code Digital Studio will bring together our platforms to deliver better and faster services. Our CTO, Diego Tartara, will later go into detail. Now to blockchain. The blockchain technology market is estimated to reach $1.4 trillion in size by 2030. And we believe that we will drive business growth in the future with security, scalability, efficiency and transparency. To address this trend, our latest Sentinel report goes through how blockchain technology is reinventing the digital landscape. We explore the triggers for businesses to best leverage this technology and share impactful applications in various industries, highlighting both the challenges and benefits of blockchain adoption. I encourage you to check it out at sentinel.globan.com. And finally, some thoughts on what Globan is doing to positively impact our world. After achieving our commitment of carbon neutrality last year, we want to take this transformation to our value chain. Through our digital sobriety initiative, we have just put in place a carbon team to measure the positive impact of our digital products and services have on our clients, and to help them in their transformations. On top of that, our AI-powered carbon monitoring dashboard provides data-driven insights on the energy consumption of the technologies we build, as well as the ones already used by our clients. This gives our clients a greater awareness during the decision-making process of the current and potential impact of their business operations on the environment. We have implemented this program with the Inter-American Development Bank. Through our work with the IDB, they can quantify and analyze the current and potential environmental impact of the projects they finance. As part of our Be Kind to Humanity strategy, our Be Kind Tech Fund continues to advance in its vision of improving the state of the world through technology by supporting startups that mitigate its negative effects. 900 startups have applied this year alone. We're happy to share that we have just closed our first investment in Ping, a US-based voice platform solution that enables commercial drivers to hear the messages out loud. By providing a solution against texting and driving, PING hopes to avoid accidents, damages, and prevent fatalities. With our investment, we are supporting PING to roll out its patented technology to hundreds of gig economy companies around the world. We look forward to continue this endeavor with our partners and to do more projects with this fund. The Globan concept is based on delivering for all our stakeholders, whether they be clients, investors, or our own planet and society. With that, I'll hand it over to Diego Tartara, our CTO. Thank you very much.

Thanks, Martin. Hello, everyone. I'm happy to be here to share another exciting quarter regarding Globan's product offering and how we are reinventing our industry through technology. First, as Martin mentioned, we continue to expand our studio offering. This quarter, we have two new re-invention studios, Automotive and Retail. We begin with Automotive. Global mobility is undergoing a profound transformation. Software is quickly becoming the value of the car. Through conversational interfaces, drivers have a more intuitive interaction with their vehicles. The greater generation of data from vehicles also creates an opportunity to improve drivers' experience, requiring proper collection, interpretation, analysis and execution. These changes are adding new revenue streams, as car companies implement subscription-based features that can be catered to each driver's unique preferences. As the mobility ecosystem evolves, its global value is forecast to grow by more than a trillion by 2030. Through our automotive reinvention studio, we will apply our capabilities from gaming, data, AI, cloud ops, sustainability and others to augment the entire customer journey. Even the buying process is ready for reinvention with the metaverse providing more engaging touch points for prospective customers to try out new cars. We have already been re-imagining the customer journey with a major vehicle brand in the United Kingdom. creating a scalable global e-commerce solution and a seamless buying experience that transcends the digital and the physical world. We look forward to sharing more about our work in reinventing this industry in the months to come. Second, our Retail Reinvention Studio. For too long, the synergy between the operations and the customer experience side of the retail business has been fragmented. In addition to meeting high customer expectations, there are also multiple touchpoints through apps, brick-and-mortar and last-mile delivery. Coordinating processes while ensuring a positive and fluid experience has proven challenging, and retailers seek a physical experience to diversify and expand business verticals. We believe that Globan is uniquely placed to help reinvent the retail industry. We want to enable retailers to transition to a one-stop shop to meet multiple consumer needs and go outside their traditional verticals to create new revenue streams, such as financial products or insurance. That way, they will be able to stay ahead of changes in the consumer demand. On the supply side, they will have tools for complete supply chain visibility and automation, so they can execute in a way that improves customer engagement. Improving connections with customers is Globant's core business, so we're excited to apply this to this critical sector. Now let me share with you a new digital studio that I believe will change the future of coding. With the rapid pace of technological advancements and an increasing need for more digital solutions, organizations are looking to optimize their software development process. In this context, our new FASCO Studio brings together the power of our platforms to help our clients accelerate time to market. This digital studio will smartly apply our platforms of Augur for assisted coding, Magnify for smarter testing, and GeneXus for multi-experience development in an offering aimed at improving their time to value. It is an accelerated model that incorporates the best of different innovations to develop software. We expect this new approach to be the tipping point of a profound transformation in development. Now, some exciting news about the work we have been doing for our clients. Globant is working with the Los Angeles Clipper as their digital transformation partner in developing their smart venue, the Intuit Dome. We will collaborate in creating a seamless and extraordinary fun experience through the smart use of technology in and around the stadium, at your seats and in the palm of your hand. In retail, we see players continue to double down on their direct-to-consumer efforts. Glowand signed an agreement with Sephora to be a strategic partner and to provide differentiated and superior consumer experiences, leveraging metaverse, gamification, and advanced analytics solutions. Now to Europe. We are also working with one of Europe's largest banks, which provides services to 15 million individual customers and 500,000 companies. were helping to transform the underwriting process for small business finance by using artificial intelligence to calibrate optimal risk limits. This transformation has enabled them to speed up their businesses while mastering the complexity of the ecosystem, resulting in an agile and adaptive response to market opportunities. Another fascinating new project for Globant is our work with Luminous, a social enterprise focusing on enabling access to education for young people, as well as workforce development and wellness through an integrated education ecosystem. Originally established in Jordan, this organization has the ambition of educational growth throughout the Middle East and beyond. Globant sees great synergies with the ideals and objectives due to our own initiatives, such as Globant U, a certified tech developer. We are proud to be a Luminos technology partner to make their vision a reality. We are co-developing their omnichannel strategy and the delivery of both a personalized and adaptable education method that can be globally scaled. Now to Latin America, our largest talent market that this quarter was also the source of 50% of our new clients. In media and entertainment, Globan is working with Televisa Univision. we have been directly involved in the development and launch of their new global Spanish language streaming platform, VIX. This is a key milestone in the company and we have been working with them with the distribution and integration with other platforms such as Apple TV. In Brazil, we're working with Bauduco, a major food producer and with operations in more than 50 countries. We are creating a modern and robust transport incident and request management system capable of dealing with a large number of partner companies and fully integrated with SAP and carried out through the Salesforce platform. They will obtain greater control of delivery problems, bringing greater visibility, efficiency and transparency in the logistics process and frame payment. In Argentina, our work for the country's century-old state oil company YPF has been recognized by Philip Kotler's book Marketing 5.0. Global solutions using artificial intelligence improved the user experience, drove operational efficiency, and created new revenue streams for the oil company with its own digital wallet. These are some examples of the huge impact we're having worldwide. I look forward to sharing more with you in the next quarter. With that, I will hand it over to Pato.