Globant GLOB reported third-quarter 2024 non-GAAP earnings per share (EPS) of $1.63, matching the Zacks Consensus Estimate. It reported earnings of $1.48 per share in the prior-year quarter.

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Revenues in the quarter totaled $614.7 million, almost in line with the Zacks Consensus Estimate. Total revenues rose 12.7% year over year. Globant’s emphasis on artificial intelligence (AI) has been a key growth driver. AI-related initiatives have grown 120% year to date, demonstrating its ability to provide unique, customized experiences to clients and drive positive outcomes. Continued demand for GLOB’s services across major markets and industries is a tailwind.

For the year ended Sept. 30, 2024, GLOB served 969 customers. Of these, 21 generated more than $20 million in annual revenues. For the same period, GLOB had 331 clients that brought in more than $1 million in annual revenues, up 8.5% from the year-ago level.

Its top customer, top five customers and top 10 customers accounted for 9.1%, 21% and 30.1% of revenues, respectively. It exited the third quarter with 29,998 customers, an increase of 9.1% year over year.

Segmental Details

Revenues from Media and Entertainment (23% of net sales) were up 20.1% year over year to $141.5 million. The expansion was due to higher revenues from its biggest client, the Walt Disney Company, with 17.5% year-over-year growth.

Technology & Telecommunications revenues (10.7%) fell 1% year over year to $65.5 million.

Travel & Hospitality revenues (11.6%) soared 48.7% year over year to $71.2 million.

Consumer, Retail & Manufacturing (18.2%) grew 26.3% year over year to $112 million.

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Professional Services (10.6%) were down 4.6% from the prior-year quarter to $64.9 million.

Banks, Financial Services and Insurance (17.6%) were up 7% year over year to $108.5 million.

Healthcare revenues (6.7%) declined 7.5% year over year to $41.2 million.

Revenues from Other Verticals tallied $9.95 million (1.6%), down 7.6% year over year.

Region-wise Performance

Regarding region-wise revenue distribution, North America led with 55.7% of revenues, driven by the United States. Latin America, led by Argentina, contributed 21.8%. Europe accounted for 17.6%, with Spain as the top market. New Markets, including Saudi Arabia, represented 4.9%. 

The highest growth was driven by new markets in the Middle East and APAC, achieving an impressive 35.3% sequential increase and a 53.1% rise year over year. Management expects to witness strong growth potential in this region. Revenue rose 24.8% in Europe, 13.9% in Latin America and 6.6% in North America year over year.