Globant S.A.

Good afternoon, and welcome to Globant's third quarter 2025 earnings conference call. I am Arturo Langa, Investor Relations Officer at Globant. All participants on this call will be in 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.globent.com. We will begin with remarks by our Chief Executive Officer, Martin Migosha, our Chief Financial Officer, Juan Ortega, and our Chief Technology Officer, Diego Tartara. This will be followed by a Q&A section. 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. 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 will now turn the call over to Martín Migosha.

Hello everyone and welcome back as Globant presents its earnings for Q3 2025. We appreciate your continued interest as we navigate the ever-evolving technology landscape. Our commitment to innovation and reinvention remains at the core of who we are. The speed of change is only accelerating. This quarter, we are excited to share how we are not only adapting to market trends, but also proactively shaping the future of our industry. Our focus on sustainable growth and delivering exceptional value continues to drive our efforts as we look ahead. Our business fundamentals remain strong, and we continue to perform by putting innovation first. Our AI studios bring together our talent to provide a new kind of AI-based solutions specific for each industry. They transform how consumers interact with brands and how our clients run their businesses. Our AI bots are our next-generation offering designed to deliver agentic AI-based services that scale faster, operate more transparently, and focus on measurable outcomes. They combine the speed and autonomy of AI with the creativity and oversight of our experts enabling customers to access continuous outcome-driven transformation at scale. All our agentic AI-based solutions, from our industry-specific AI studios to our AI pods, are orchestrated through Global Enterprise AI. our central intelligence platform that acts as the golden path for enterprise-wide AI adoption and impact. Delivered through a transparent, consumption-based model, it transforms AI from isolated experiments into a predictable, scalable, and measurable source of enterprise value. Together, these elements form the backbone of Globant's growth, to provide value for our customers and shareholder returns. During Q3, we generated $617.1 million in revenue, $2 million above our most recent guidance. We also launched a share buyback program reflecting how bullish we are on our long-term prospects. The pipeline has hit another all-time high, currently at $3.7 billion, representing 30% year-over-year growth. It marks the solid demand we see for our services, and it grew this quarter despite very strong bookings. AI continues to emerge as the world's dominant technology. With an expected market of $4.8 trillion by 2033, it will have made a 25x increase in one decade. Over the past few months, we have seen a healthy dose of realism in the AI space. There has been a shift beyond hype towards tangible and effective adoption. We see a tremendous potential in AI transformation today. While software as a service has played a crucial role in corporate technology by providing efficient and scalable solutions, our new AI pod subscription model represents a significant evolution in how organizations can leverage technology With our AI pods, we empower leaders to develop tailored solutions that effectively address their unique and ever-changing needs. Our AI studios and core studios are having these conversations with our clients to provide clarity in AI transformation, build versus buy, and cost optimizations that are top of mind for corporate leaders today. Since doubling down on our 100 square strategy this year, we have seen the execution being shown in bookings and revenue. Our top five clients grew sequentially by 2.1%, exceeding the company's average growth over this period. The share of clients we have identified as 100 square potential as part of our total bookings is currently 56.7%, up from 50% last year. Today, we have over 1,000 engagements related to GenAI, CoreAI, or data currently running, representing a third of our overall projects. We have over 900 projects related to AI readiness in our pipeline. The new offering of AI pods, a departure from traditional consulting engagement models, has nearly doubled in its share of our pipeline. This growth significantly outpaced the overall pipeline expansion. Clients access these solutions via the Global Enterprise AI platform, which serves as a multi-purpose hub. First, as an AI hub, connecting seamlessly with more than 140 LLMs. Clients can interact with the LLMs that is best for their needs, without being locked into a single provider. Second, it is a corporate hub. that connects with all major corporate information systems and data lakes like SAP, Salesforce, Databricks, and many others. And third, an agent hub that allows clients to create agentic workflows to automate corporate processes. Global Enterprise AI can be acquired on a subscription basis. This shift to our subscription revenue model is not just a theoretical goal. It is actively underway in our most valuable client base. Within our top 20 customers, a group that collectively represents close to 40% of our total revenue, we're currently embedding our subscription model with 17 of them. in meaningful ways. This is a huge milestone, specifically considering we officially launched this methodology in June of this year. We're encouraged to see how our clients are incorporating this new model. For example, at YPF, the largest shale oil operator in the world, outside the United States, we're moving into full execution with 46 agents to optimize sourcing, inventory, contract, and supplier management, bringing clarity and efficiency to how the company interacts with its complex supply chain. As you know, Globan has a talent for applying AI to reinvent the human experience in entertainment, which is why we are particularly proud of our new engagement to bring a genetic process to La Liga, one of the world's Top Sports League. Diego will expand on this later. A great example of our growing partnership is our work with Natura, the Brazilian multinational cosmetics company. This quarter, we announced that Globan will leave their S4HANA migration, choosing for our ability to seamlessly integrate innovation and AI into SAP methodology, development, and testing, while enhancing traditional implementation efficiency. Together with SAP's Shul, our AI agents and platforms will accelerate delivery, reduce time to market, and support the clean core strategy by anticipating deviations and suggesting real-time corrections. Governed by our AI agents, this project brings a new vision from how technology can transform SAP implementations and drive business performance. This month, we also announced an important partnership with Riot Games. the company behind global esports phenomena League of Legends and Valorant. Globan will support its advancement in artificial intelligence, new game development, esports experiences and software engineering capabilities. Over the next several years, both companies will push the boundaries of technology to deliver richer, more personalized experiences for millions of players and fans globally. This partnership is one of the largest agreements in the history of our games business. We are proud to work with companies that continue to shape global esports culture and inspire millions of players. We're making decisions to unlock the full power in our core studios as well. We recently announced that all of Globan's marketing and advertising efforts were consolidated under the GATT brand umbrella. Today, Globan and GATT bring a uniquely consistent and complete value proposition to the entire C-suite, empowering CTOs and CEOs to transform their business through technology while helping CMOs push creativity and marketing performance better than ever. Just as Amazon transformed the technology landscape by removing friction from how business access and scale computing infrastructure effectively works, Inventing the modern cloud industry, we aim to do the same for technology and professional services through our AI pods and subscription model. Traditional consulting engagements are filled with friction, lengthy planning cycles, detailed scope definition, change requests, and constant budget negotiations that slow down execution and dilute impact. Our AI pods eliminate those barriers. by combining agentic AI with expert human oversight in a transparent token-based subscription model that focuses on outcomes rather than hours. With defined supervised token capacity and continuous monitoring, execution becomes faster, auditable, and adaptive, allowing our clients to focus on delivering value instead of managing project logistics. We're not just redefining consulting. We're leading a revolution in how business access technology and professional services. Thank you for joining us on this exciting journey.

Hello, all. As we look at the third quarter, one thing has remained constant, the urgency for enterprises to deliver measurable results through AI. We have tirelessly enhanced our portfolio of services and products around that very premise to enable our clients to apply AI faster and effectively to unlock business value at scale. What we are doing with La Liga is a great example. The world's most successful football league is becoming the first global sports organization to adopt agentic models to reinvent its business end-to-end, from talent development, performance analysis, workflow automation, to personalized content creation. This quarter, we also expanded our footprint in immersive, high-impact experiences. Through our strategic collaboration with Adobe and Red Sea Global, Saudi Arabia's vertically integrated real estate developer, together we're building a connected visitor experience platform. From trip planning to arrival and stay, the platform unites content, data, and AI agents to deliver personalized context-aware journeys at scale. Global Enterprise AI is at the core of our AI-centric solutioning and keeps delivering on our commitment to make it the best common gateway for clients to navigate the complex forest of AI. Less than a week after OpenAI launched the Agente Commerce Protocol in late September, we release a new version of global enterprise AI, including ACP and enabling our clients to create AI agents capable of executing commercial transactions safely and intelligently. Our partner ecosystem remains critical to scaling our AI vision, and as we see that our clients' biggest challenge is not the lack of technology, but the complexity of integrating it for real business outcomes, or how to make their long-standing core systems agile, intelligent, and cloud-native without disrupting the business. With Unity, the world's leading platform to create interactive experiences, we join a service partner program combining Globan's global footprint with Unity's real-time 3D capabilities to power new immersive and interactive experiences in industries such as automotive, healthcare, and manufacturing. With AWS, we achieved the MSP Partner Program designation, recognizing our ability to deliver end-to-end cloud transformation and manage mission-critical operations at scale, a fundamental layer for AI adoption. While other provides basic cloud migration, Globan differentiates by focusing on cloud-native development and optimization. We leverage the full stack of AWS services, from serverless computing to their Bedrock AI platform, to build resilient, scalable, and cost-efficient solutions. With Microsoft, we have been appointed as finalists of the 2025 Microsoft Media and Telco Partner of the Year Award. Glowen was honored among more than 4,600 entries from more than 100 countries, for demonstrating outstanding Microsoft Cloud application services, devices, and AI innovation during the past year. And by joining the IBM Quantum Network, we are preparing our clients to embrace quantum computing and unlock the next computing paradigm, ensuring they remain ahead of the curve as the future of intelligent systems unfolds. GATT, now powered by Globant's global creative and marketing capabilities, keeps accelerating cross-selling and elevating leading brands including AB InBev, P&G, MercadoLibre, Easting, Kraft Heinz, Verizon, and Havaianas, Also, Brazil's team created the first fully AI-generated campaign for MercadoLibre, Latin America's largest e-commerce platform, in partnership with Samsung. Additionally, the official Cannes-Léon's report was published, listing that as number nine global agency network at Cannes-Léon's 2025. Across sectors and geographies, our team continues to execute with passion and creativity. Our AI pods are gaining traction, our AI platform continues to improve, and new industries are embracing our approach to reinvention. We believe the winners will be those who act decisively today, and we are positioning Globan to help them accelerate that journey as we continue shaping the future of enterprise transformation. Thank you very much.