Globant S.A.

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 Globant to our peers in the industry. We 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.

Good afternoon and welcome, everyone. It's a pleasure for me to be back to deliver this earnings call speech and to share with you how we're progressing on our growth vision. Let's begin with our quarterly performance. In Q3, we brought in $545.3 million in revenue, representing 18.8% year-over-year growth and 9.6% quarter-over-quarter growth. Our revenue for the last 12 months has now surpassed $2 billion, a first for Globant. Over the past quarter, we saw expansion across our key geographies, all of our verticals, as well as among our top clients. We are exceptionally proud to have delivered this market-leading growth, even in a period of global economic challenges. We have maintained profitability, a healthy balance sheet, and free cash flow. We look forward to executing our commercial strategy to increase market share worldwide. As a nod to this expansion, Fortune has recently included Globant on its list of 100 fastest growing companies. Globant was ranked first among peers in the information technology services category, recognized for its revenue, profit, and stock return over the last three years. We are optimistic as we see technology spending continue to lead the global growth story, affecting nearly every area and function of organizations of all sectors. Globant's service offering now encompasses sophisticated technology consultancy and digital solutions, breakthroughs in the creative industry, and from a broad array of AI-based solutions to our expertise in working with world-class enterprise systems. we are in a position to take advantage of the fastest growing areas of the technology sector. Companies across industries will keep investing in technology as new innovations from AI and other trends expand our total addressable market. According to Gartner, worldwide spending on IT services is expected to reach $2.1 trillion over the next four years. Recent surveys from leading financial and consulting institutions also reflect that digital transformation is front and center. As CEOs and the full C-suite continue to prioritize AI, cloud, digital transformation, analytics, CRM, and ERP applications, all of which are core to Globant's key competencies. With our current top 50 clients alone, taking into consideration that global firms spend from 5% to 15% of revenue on technology, our addressable market is close to 100 billion. Our 100-squared program is our focus to take advantage of this opportunity. Artificial intelligence is having its iPhone moment with generative AI and its latest announcements two weeks ago. Gartner forecasts that the market for artificial intelligence services will reach $443 billion by 2027. As I shared in our past earnings calls, at Globant, we are already employing generative AI in our proprietary platforms that help us work better as well as for our clients. AI will be the dominant growth driver in the IT services market. We see two major trends in AI adoption. The first is driven by professionals who use these tools to boost their efficiency and enable their creativity as they produce their own content. This is happening organically. It will be difficult for companies to have an inflexible position to force the adoption of these tools. People don't need us pushing them. They need autonomy and freedom in how they work. As a company, we respect that and recognize that they are responsible for the content that they produce. But companies should provide the necessary tools for their employees to develop and use them if they want to. The second AI trend is being driven by organizations and their need to reinvent themselves. AI can provide solutions that humans cannot achieve on their own in a faster, more meaningful way. At Globant, we work on these technologies through our platforms, each one aimed to accelerate innovation at scale with AI. Examples of these two types of AI are being implemented every day at Globant. With Augur, we make the code more accessible and understandable for companies and developers. With Geno, powered by generative AI, we can match in an efficient and scalable way people with the right skills with their best possible projects, where they will be the best fit. With Magnify, we augment testing for organizations, enabling them to quicken their go-to-market and to launch products faster. With Star Me Up, we help organizations foster culture, predict attrition, and build community. These new trends and global platforms have the opportunity to connect with our expanded value offering. You may remember that we have consolidated our multifaceted expertise into four studio networks to offer end-to-end services and better organize our ideation and execution, the digital, reinvention, enterprise, and create networks. The aim has been to improve collaboration and achieve a stronger, higher quality delivery. In our enterprise studio network, we recently launched the ServiceNow Studio. This new dedicated team will help companies better manage workflows and operations by reinventing digital experiences for employees, customers, and partners. Diego Tartara will expand on its specific portfolio of solutions in a few minutes. Studios from our reinvention network continue to deliver great value as they cross-pollinate knowledge from different digital studios and industries. Our airline studio was able to go over the transformation we provided to LATAM Airlines in the latest leading IATA Symposium, the most important industry event in the globe. Diego Tartara, together with Juliana Rios, LATAM's CIO, described how both companies collaborated to modernize airline retailing. Also, our game studio celebrated the release of the latest editions of titles our teams helped develop, NHL 24 and UFC 5. another proof of a strong relationship with our long-standing client, Electronic Arts. The Create Network continues to advance in its mission of merging creativity and technology, and an example of this is our work with a leading global automotive company. Our customer experience, design, and cultural hacking teams have worked on reinventing its customers' digital experience, testing and iterating new business models via data-driven decision-making. Recently, through a cross-selling strategy, we integrated our experts in business, marketing, and technology from Globant Create to develop a scalable personalization strategy and omnichannel user experience through MarTech at a global scale. This strategic approach is set to redefine the meaning of mobility for users, thus increasing conversion, loyalty, and NPS. Furthermore, we are proud to share our recent recognition by Premios Eficacia, a prestigious award in the Hispanic American market for our work with McDonald's. With the MySneakers campaign, we strengthened its digital customer base, increased its loyalty program, and created an innovative experience with augmented reality. Complementing our wide studio offering, our delivery network continues to build synergies as well. Latin America is becoming enticing again for technology talent due to its expanding ecosystem, relative stability, and valuable proximity to key markets. As the only pure play from the region, and with our global scale and employer branding recognition, we are ambitious to solidify our leadership as the place to work. We already have a presence in the region's top nine talent markets. And now, to our array of platforms that grows in tandem with our widening services and geographic expansion. The disruptive release of ChatGPT one year ago put generative AI into the hands of individual users for the first time. Through GeneXus, which was one of the few platforms included in the latest Gartner Magic Quadrant for enterprise low-code application platforms, Globant is taking a solid leap in applying the advent of this technology to help organizations at scale. We recently launched our first enterprise AI platform, GeneXus Enterprise AI, to help companies to seamlessly interact with relevant and critical data to make better and informed decisions. The new platform is ready to take advantage of OpenAI's recently launched GPT-4 Turbo to build digital products and also leverage all the most relevant LLMs. Diego will expand on this exciting new platform later. This is yet another development from our innovation hub of GlobantX, now expanding in every one of our global regions. All of our platforms are growing with new and existing clients. Augur, FluentLab, GeneXus, Magnify, Navigate, StarMeUp, Wasabi, and Walmeric. As a sports fan, I am very excited about our endeavors in the media and entertainment sector. In early October, we announced the launch of Sportian, the new identity of La Liga Tech. This newly branded entity will provide digital transformation solutions for the global sports and entertainment sector. The consolidated brand is our offering to reinvent the space where we already have over 80 clients in many different sports. Last week in New York, we were also very proud and excited to announce our partnership with Major League Rugby in the United States. Globant has become MLR's official and exclusive digital transformation and tech solutions partner. Globant will build a new version of the streaming platform and leverage data to drive innovation, unlock new ways of growing the game of rugby in the United States, and enhance sponsorship opportunities. I'm very excited to announce that on November 30th, we'll be broadcasting our annual innovation-focused event, Globant Converge. This year's theme of AI Limitless Disruption brings together fascinating leaders, including Salesforce founder Mark Benioff, renowned biographer and media executive Walter Isaacson, NewBank CEO David Veles, and many others. Scan the QR code on the screen and register and learn more at converge.globant.com. As we move forward, we are growing a healthy pipeline that makes us optimistic in 2024. It's been a pleasure to be with you in this last earnings call of this year in which we celebrated our first 20 years. I look forward to sharing with you special moments next year as we celebrate our 10th anniversary as a NYSE listed company. Now let me introduce Diego, our CTO. See you all in some minutes for the live Q&A. Thank you.

Thanks, Martine, and hello, everyone. Over the past several years, the rapidly changing landscape in technology has brought about many exciting innovations. Blockchain, the metaverse, generative AI, spatial computing, and more. Today, I would like to discuss the advancement of some of these trends and how Globant is embracing them so that our clients can become the early adopters. Interest in artificial intelligence, particularly in generative AI, continues to grow by both individuals and institutions. Among the analyst community, there is a significant increase foreseen in investment. Across all industries, we continue to see high demand for AI-driven experiences, resulting in over $100 million in revenue year-to-date for Globant in projects with AI components. The road to AI, however, has not just led to more direct investment in AI itself, but also highlighted the need to have robust digital ecosystems, and we are seeing companies invest in both – Our leadership in the AI space is allowing us to help clients go beyond proofs of concept into implementing AI-enabled strategies that are driving growth and efficiency. We're partnering with a multinational organization in order to build a company-wide AI strategy that is set to reinvent the way solutions are created for its customers while at the same time generating new internal capabilities that encourage cost optimization and a high level of reusability. Together, we're defining patterns and architectures that enable our teams to deliver value for our customers in a much faster and secure way, going from AI-driven design systems, hyper-personalized workspaces and conversational engines, to initiatives tied to acceleration of support-related responses. We believe that initiatives like these, where we define an AI strategy that puts the customer at the center of tech and business decisions, are key to setting up our solutions as future proven and ultimately lead the way into value creation. We continue to share our expertise and our reinvention vision with our greater community. To articulate how AI is disrupting industries, we released two new applied AI reports, specifically geared to how AI can affect both the marketing and automotive industries. We encourage you to check them out at ai.globant.com. While certain technologies have gone through periods of varying hype, we have a technical understanding of the power that they have to transform experiences and enterprises. An example is blockchain. Beyond the strong media attention, the true value behind the technology is finally emerging. There are several governments that are incorporating this technology into their regulatory future. Take, for instance, Brazil, where the central bank is launching a new digital currency in 2024, as well as a national ID system on blockchain technology. This technology is impacting communities as a powerful and effective tool that enhances efficiency in the sending and receiving of funds, their traceability and transparency throughout the process. In August, we launched Agua, a blockchain-based transparency platform made in collaboration with IOV Foundation and Unison Youth. UNIS and MUTH is using the platform as they provide funding for several social initiatives of small entrepreneurs in Argentina, South Africa and Portugal, among other countries, towards achieving UN's sustainable development goals. Incorporating these systems with the rest of the economy will encourage companies to adopt blockchain themselves to ensure interoperability and transparency. After 20 years of growth, we have been able to go beyond engineering and design and have consistently expanded our offering to become a digital powerhouse, able to work with our clients on all aspects of a complete transformation. Across all industries, the future is rooted in technology, and every part of organizations is being reinvented through technology and data. In Latin America, we supported Organon, a pharmaceutical company, in transforming their go-to-market model. We incorporated best practices from the pharma space, as well as our other industries of expertise, to help Organon transition from a product-centric company to one where innovation goes even beyond their brands. This transformation focused on engaging key stakeholders and adapting the classical pharmaceutical model for future portfolio growth. Globant played a crucial role in this transformation by developing a comprehensive roadmap that included business hacking and technology consultancy. Our goal was to enhance the customer experience and operational efficiency. To achieve this, we prioritized a shift towards digital interactions with healthcare professionals, engaging key stakeholders, strengthening back-office support functions, and looking for synergies through a regional approach. Similarly, we have been working with a global automotive manufacturer. We were able to help them embrace and incorporate what was previously considered technology only for the gaming space, Unreal Engine. With this advent, we are reimagining and enriching the buyer experience. Technologies and experiences that have traditionally been seen as exclusive to one industry are making their way into others, further validating our cross-industry approach. Building a robust digital ecosystem requires, among many other things, having a solid cloud strategy and an enterprise ecosystem with modern CRM and ERP solutions. Our enterprise studio network is reinventing how more traditional IT solutions are implemented. To successfully transform, organizations need the end-to-end process to work cohesively. We are helping a global leader in the life sciences industry as they embark on an end-to-end transformation of their ERP to SAP S4 HANA. This multi-year project spans from solution implementation services to process redesign and organizational change management. We were awarded this contract due to our long-standing partnership with the company, our leading experience in the ERP space, and our in-depth knowledge of the life sciences industry. As Martine mentioned, with over a decade of experience in the ServiceNow platform, we established it as our very own ServiceNow Studio within the Enterprise Studio network. This studio's work encompasses four prime areas, consulting and advisory, assessment and roadmapping to help organizations define and achieve their transformation goals, professional services to help organizations draw value from the platform in areas that include ITSM, workflow, OPS management, and finally, managed services and CIS, including continuous process and app evolution. We continue to see significant demand in cloud migration and modernization. Furthering our partnerships remains key. In August, we were recognized with the 2023 Google Cloud Industry Solution Services Partner of the Year, Award for Media and Entertainment. It's a true sense of pride to win this honor in our largest industry vertical, and from Google, with whom we've been working for 16 years. Reaching another exciting milestone, we were recently recognized as an AWS Premier Tier Services Partner. This is a result of our growing relationship with AWS and it highlights the collaborative efforts of both companies, showcasing expertise and notable success in assisting customers in designing, architecting, building, migrating, and managing their workloads on AWS. Our products and platform strategy is allowing us to provide our customers with a truly differentiated service. As Martine mentioned, GeneXus Enterprise AI is a fully operational, GenAI-powered application that plugs into any enterprise system in a fast, secure, cost-effective, and monitored fashion by creating an agnostic bridge between corporate software and any LLM. AI's true power lies beyond being able to understand human language. Agent-based architectures combined with the power of LLMs will streamline experiences and operation by executing on our behalf. Our GeneXus Enterprise AI already allows companies to quickly build those experiences through secure AI assistants that operate on the user's behalf. An example of the power unlocked by GeneXus Enterprise AI is our work with a very large North American-based company that needed a way to interact with sensitive legal documents from their database safely. We deployed GeneXus Enterprise AI, which not only provided a secure connection to cutting-edge large language models, but also ensured compatibility with the client's SharePoint database. The company now has a smart and secure chat-based system that the legal team can rely on and has made them more efficient. Over many years, Globant has been involved in the smart payment space and has introduced proprietary intuitive services and products that bring people into the digital payment space and expand the ecosystem. We have new developments from our work with a leading payment acquirer that provides IT services to financial entities that include ATM networks, online banking, corporate banking, mobile and security solutions, as well as information processing and service and tax collections. We created a customizable digital wallet for them, capable of the full suite of services required by today's market, from QR payments to online and mobile banking and more. The wallet is fully adaptable to each one of their clients that can now engage better with their customers, including advertising campaigns or promotions that will be displayed within the mobile application, as well as managing communication strategies through notifications to customers. They can also track transactions, manage complaints, and queries from end users through monitoring modules, creating a virtuous circle in the relationship with their customers as they learn more about them and adapt their offering accordingly. Thank you for your attention. I'll now pass it over to Patricia Palmes, our Chief Operating Officer.