We are
Empowering organizations for a digital and cognitive revolution
We transform organizations to be ready for a digital and cognitive future
2
Investment highlights
Pure play in the digital and cognitive space
Organized by Studios, delivering domain expertise in emerging technologies
Substantial customer penetration and international expansion opportunity
Experienced and founder led management team
Global presence, leveraging next-gen software and the right talent and skills
Recurring and blue-chip customer base
Rapid revenue growth and industry leading margins
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Globant Recognized as a
2020 Worldwide Leader in CX Improvement
by IDC MarketScape
Globant recognized as a
2020 Worldwide Leader in CX Improvement by IDC MarketScape report
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. The Capabilities score measures vendor product, go-to-market and business execution in the short-term. The Strategy score measures alignment of vendor strategies with customer requirements in a 3-5-year timeframe. Vendor market share is represented by the size of the icons. Copyright IDC 2020.
SOURCE: IDC MarketScape: Worldwide Customer Experience Improvement Services 2020 Vendor Assessment, by Douglas Hayward, September 2020, IDC #US45658220
Market Opportunity Resilient Business Model
On top of ongoing digital trends, the current pandemic has proven that digital transformation is imperative for any business:
- Organizations need to accelerate their digital transformation
- As a pure play, we believe we are extremely well positioned to help companies adapt to the new reality and thrive leveraging our Studio Model and Agile Pods methodology
- Proven experience in executing through distributed and remote working teams
- By 2023, the global economy will reach digital supremacy. Products and services from digitally transformed enterprises will account for half of global GDP. Enterprises not able to compete in the digital portion of the economy will miss out on half of the opportunities in their core markets.
Source:IDC FutureScape 2020
*Already, 70% of companies had a digital transformation in place or were working on one, but it seems most companies were not far enough along to make COVID-19 a non-issue.
Source:Forbes - IsCOVID-19Forcing Your Digital
Transformation? 12 Steps To Move Faster
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60% | $ 80B | $ 7T |
Artificial Intelligence Revenue is expected to grow at a 60% CAGR through 2025.
Source: IDC's Digital Economy Model, 2019
150M
Digi-Capital forecasts that AR/VR could reach $80 billion to $90 billion by 2023
Source: Digi-Capital
By 2022, 60%+ of global GDP will be digitized, with growth in every industry and almost $7 trillion in IT-related spending in 2019-2022.
Source: IDC FutureScape: Worldwide IT Industry 2019
By 2022, over 50% of security alerts will be handled by AI-powered automation, and 150 million people will have blockchain-based digital identities.
Source: IDC FutureScape: Worldwide IT Industry 2019 Predictions
Predictions
500M
From 2018 to 2023, 500 million new logical apps will be created, equal to the number built over the past 40 years.
25%
By 2022, 25% of endpoint devices and systems will execute AI algorithms.
Source: IDC FutureScape: Worldwide IT Industry 2019 | Source: IDC FutureScape: Worldwide IT Industry 2019 Predictions | 6 |
Predictions | ||
THIS IS
GLOBANT
Revenue Trajectory ($M)
CAGR 27%
Case Studies & Recognitions
2003 | 2006 | 2008 | 2009 | 2012 | 2014 | 2015 | 2016 | 2017 | 2019 | 2020 |
Signed | Riverwood | Studios | WPP | Listed on | Follow-ons | SOP | Recognized as a 2017 | BeKind | Recognized as a | |
Founded | ||||||||||
Capital and | launched | Invested | NYSE | Launched | Worldwide Leader of | Launched | 2020 Worldwide | |||
FTV Capital | Digital Strategy | Leader in CX | ||||||||
invested | Consulting Services | Improvement by IDC | ||||||||
by IDC MarketScape | MarketScape report | |||||||||
report |
ABOUT
GLOBANT
Select Customers
BY
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Our Innovative Solutions
Leading M&E Company
We helped Disney create their next generation online experience for their parks
Police Force
We helped the MET Police become a global example of a digitally-connected police force, creating one of the world's largest digital police
Leading Video Game Company We contributed to the development of EA's highly successful FIFA franchise, among others in an ever evolving partnership
Information Technology Company We worked with Rockwell Automation to help them transform as they incorporated new methods to build automation systems
Leading European Bank
We worked with Santander to build a first true digital bank, offering more than 1M users a highly personalized, exclusively digital, banking experience
Education Management Company We helped a US online education company to communicate better with students through Artificial intelligence
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OUR
SECRET
SAUCE
2. WE ARE BUILT ON AN | |||||||||
1. WE ARE ONE OF THE | 3. WE REINVENT | ||||||||
FIRST PLAYERS | AUTONOMOUS | OURSELVES AND | |||||||
DELIVERING | PODULAR STRUCTURE | OTHER INDUSTRIES | |||||||
ENGINEERING, | THROUGH AI | ||||||||
INNOVATION AND | |||||||||
DESIGN AT SCALE | |||||||||
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1. WE ARE ONE OF THE FIRST PLAYERS DELIVERING ENGINEERING,
INNOVATION AND DESIGN AT SCALE
Our Studios
ORGANIZATIONAL FITNESS | BUILD AND EVOLVE | |||||||||||||||
FUTURE OF | STAY | AGILE DELIVERY | CONTINUITY | SCALABLE | CONTINUOUS | GAMING | IOT | LIFE | |||||||
ORGANIZATIONS | RELEVANT | PLATFORMS | EVOLUTION | SCIENCES | |||||||||||
STRATEGY
BUSINESS | DESIGN | PRODUCT | DIGITAL | SUSTAINABLE BIZ | DATA & ANALYTICS | UI ENGINEERING | MOBILE | INTELLIGENT | |||||||||||||||||||||||||
HACKING | ACCELERATION | MARKETING | STUDIO | ENTERPRISE | |||||||||||||||||||||||||||||
PUSH IT LIVE | AI / PROCESS AUTOMATION |
CLOUD OPS | QUALITY | CYBER | DIGITAL | MEDIA OTT | ARTIFICIAL | BLOCKCHAIN | PROCESS | CONVERSATIONAL |
ENGINEERING | SECURITY | EXPERIENCE | INTELLIGENCE | AUTOMATION | INTERFACES | |||
PLATFORMS |
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2. WE ARE BUILT AROUND AN AUTONOMOUS PODULAR STRUCTURE
Lean structure focused on agile Pods.
Inverted organizational pyramid with the Pods front-and-center.
An operating system designed to expand our culture.
Pods that mature and adapt hand-in-hand with the client.
Client
Pods
Client
Management
Pod
Top
Management
CEO
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3. WE REINVENT OURSELVES AND OTHER INDUSTRIES
In a context of constant organizations must adapt Technology and AI is their reinvention:
Augmented Collaboration
Augmented Coding
Augmented Culture
Agile Pods
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ABOUT
Globant
OUR GLOBAL FOOTPRINT
Strong global presence with great talent to deliver digital and cognitive transformations.
Multiple time zones enable us to deliver agile services to our customers and global partners.
We benefit from cultural similarities and a strong history of innovation.
We have a deep talent pool of highly educated IT professionals.
Canada
United
States
Mexico
Colombia
Peru
Chile
Luxembourg
UK | Belarus | |||||||
France | Romania | |||||||
Spain | ||||||||
India
Brazil
Uruguay
Argentina
Total Headcount Geographic dispersion (%)
Q4'14 | Q3'20 | |||||||||||||||||||||||||
Argentina | ||||||||||||||||||||||||||
Argentina | ||||||||||||||||||||||||||
Colombia | ||||||||||||||||||||||||||
Colombia | ||||||||||||||||||||||||||
47 | 33 | 16 | ||||||||||||||||||||||||
Other Latam | Other Latam | |||||||||||||||||||||||||
offices | Cities | Countries | ||||||||||||||||||||||||
India | ||||||||||||||||||||||||||
USA & Europe | ||||||||||||||||||||||||||
US & Europe
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Global delivery model
Total Headcount Geographic dispersion (%)
Country | Dec-14Dec-15 | Dec-16 | Dec-17Dec-18 | Dec-19Sep-20 | |||
Argentina | 69 | 57 | 49 | 39 | 34 | 30 | 31 |
Colombia | 8 | 11 | 15 | 21 | 25 | 27 | 24 |
Mexico | 4 | 6 | 7 | 9 | 10 | 11 | 12 |
India | - | 9 | 8 | 10 | 12 | 10 | 10 |
USA | 5 | 5 | 8 | 9 | 7 | 5 | 4 |
Peru | 2 | 1 | 1 | 1 | 1 | 5 | 4 |
Uruguay | 11 | 8 | 8 | 6 | 5 | 4 | 4 |
Chile | - | 1 | 2 | 2 | 3 | 4 | 4 |
Brazil | 1 | 1 | 1 | 1 | 1 | 2 | 3 |
Romania | - | - | - | - | 1 | 1 | 1 |
Spain | - | - | 1 | 1 | 1 | 1 | 1 |
Belarus | - | - | - | - | 1 | 1 | 1 |
UK | - | - | 1 | 1 | 1 | 1 | 1 |
Along our journey, we have diversified our talent base to build a strong global presence
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ESG Approach
Our purpose is to make the world a better place, one step at a time.
Integrated Report published annually.
Committed with six SDG's. Ranked at DJSI. Silver recognition level at Ecovadis.
Be kind is our Sustainability strategy for the
next five years.
Note: SDG: Sustainable Development Goals. DJSI: Dow Jones Sustainability Indices.
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ESG Approach
Governance
- Board of Directors: Consist of 8 members which are elected on a staggered basis. 1/3 of the directors being elected each year.
- Code of business conduct and ethics: Published in our website, also with our whistleblowing contacts, the Anti-Briberyand Anti-CorruptionPolicy, and our Modern Slavery Statement.
Data Privacy & Security
- Work in progress to comply with GDPR, CCPA, LGPD and the laws of all geographies where Globant has a presence.
- Annually published the Sustainability Accounting Standards Board (SASB) activity metrics
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ABOUT
Be Kind
to your peers
We aim to reach 50% women and non-binarygender in management positions by 2025.
We want to inspire 10,000 women in technology by 2025.
to the planet
By the end of 2020, we aim to use 100% renewable energy.
We want to become carbon neutral by the end of 2021.
to humanity
Reinventing our Industry to make a positive impact:
- Ethic AI
- Digital Sustainability
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FINANCIAL
REVIEW
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At a GLANCE
Key Statistics
$765.8M | 27% | $64k | ||
LTM Q3 2020 total | 2014 - 2019 | LTM Q3'20 annual | ||
Revenue | Revenue CAGR | Revenue per IT | ||
Professional | ||||
38.9% | 14.8% | 14,300+ |
YTD Q3 '20 | YTD Q3 '20 | Total Employees |
Adj. Gross | Adj. Profit from | as of September 30, 2020 |
Profit Margin | Operations Margin | |
Percentage | Percentage | |
893 | 118 | 88.2% | |
LTM Q3'20 Total | LTM Q3'20 | of LTM Q3'20 | |
Active Customers | Customers with | Revenue from | |
Served | over $1M in | Existing Customers in | |
Annual Revenue | 2019 |
Global Delivery Model
Headcount Distribution (as of Sep'20)
Argentina
Colombia
Other Latam
India
US & Europe
Revenue by (YTD '20)
North America
Latam and Others
Europe
Note: Adjusted Gross Profit Margin Percentage excludes depreciation and amortization and share-based compensation expense.
Adjusted Profit from Operations Margin Percentage excludes share-based compensation expense, impairment of tax credits, impairment of assets, acquisition-related charges and COVID-19-related charges.
LTM Revs per IT Prof: Sum of LTM Revs / average (IT Prof for Q3'19; IT Prof Q3'20)20
LTM Total Active Customers Served: Clients generating > $0 Revenues between 10-01-2019 and 09-30-2020
LTM Customers with over $1M in Annual Revenue: Clients generating > $1M Revenues between 10-01-2019 and 09-30-2020
Significant Revenue Growth
Average Revenue by Client ($M)
Top 10 | CAGR: 24.3% | ||||||||
YoY: 22.4% | |||||||||
CAGR: 27% | Top 20 | ||||||||
CAGR: 23.5% | |||||||||
Client Revenue Contribution (%) | Clients with Revenues >$1M | |||||||||||
Clients | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | YTD 20 | |||||
Top 1 | 9 | 12 | 10 | 10 | 11 | 11 | 11 | |||||
Top 5 | 27 | 33 | 34 | 29 | 32 | 26 | 31 | |||||
Top 10 | 44 | 47 | 47 | 42 | 44 | 39 | 42 | |||||
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Revenue Breakdown (YTD 2020)
Geography | Currency | |||||
North America | ||||||
USD | ||||||
Latam and Others | Others |
Europe | |
Industry | Contract type | |||||||||
Banks & Financial Ss. | 5%1% | Time & Materials | ||||||||
Media & Entertainment | ||||||||||
Fixed Price & | ||||||||||
Professional Services | ||||||||||
Others | ||||||||||
Consumer, Retail &
Manufacturing
Tech & Telecom
Travel & Hospitality | |
Healthcare | |
Others | 22 |
Strong ability to develop accounts
Increasing # of multi million $ accounts
2014 | 2015 | 2016 | 2017 | 2019 | ||||
$20M+ | 0 | 1 | 2 | 3 | 5 | 7 | ||
$10M+ | 2 | 5 | 6 | 9 | 9 | 14 | ||
$5M+ | 10 | 10 | 11 | 18 | 21 | 26 | ||
$1M+ | 46 | 51 | 60 | 82 | 90 | 107 |
100 squared strategy:
- Dedicated onsite teams
- Strategic partner
- Increased visibility
Annual revenues of select top 20 customers since the launch of 502 strategy in 2016
2016 | 2017 | 2018 | 2019 | |||||
Customer A | 31 | 42 | 59 | 74 | ||||
Customer B | 12 | 13 | 15 | 23 | ||||
Customer C | 0 | 1 | 10 | 18 | ||||
Customer D | 3 | 11 | 14 | 16 | ||||
Customer E | 2 | 5 | 8 | 11 | ||||
- Studio cross-selling
- POD model penetration
- Increasing number of projects
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Attractive Profitability
Adjusted Gross Profit | Adjusted Profit from | Adjusted Net Income | |||||
($M) | Operations ($M) | ($M) | |||||
% of revs | % of revs | % of revs | |||||||||||||||||||||||||||
41.0 | 38.9 | 42.3 | 38.8 | 40.6 | 40.4 | 40.6 | 38.9 | 10.6 | 9.7 | 16.9 | 13.7 | 16.1 | 17.0 | 17.2 | 14.8 | 12.2 | 12.8 | 12.0 | 11.1 | 12.2 | 13.1 | 13.0 | 11.8 | ||||||
Note:
Adjusted Gross Profit excludes depreciation and amortization and share-based compensation expense.
Adjusted Profit from Operations excludes share-based compensation expense, impairment of tax credits, impairment of assets, acquisition-related charges and COVID-19-related charges.
Adjusted Net Income excludes share-based compensation expense, impairment of tax credits, impairment of assets, US settlement agreement, net, Expenses related to secondary share offering, acquisition-related charges and COVID-19-related charges.
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Our growth strategy
- Focus on 1002 : 100 accounts with potential revenues of $100M+
- Studio cross-selling
- Increasing sales coverage to ensure better reach
- Diversification of the talent pool among different locations
- Pursue strategic, tuck-in acquisitions
+
Main Strategic Acquisitions
- gA
- Belatrix
- Avanxo
- PointSource
- Ratio
- L4 Digital
- We Are Experience
- Clarice Technologies
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Globant Ventures
We invest in technology-based Startups, making them grow rapidly to transform them into companies that generate a real impact on the world seeking synergies with Globant's Value Proposition.
STARTUP +
STUDIOS
OUR COMMITMENT
Investment
Our investment range goes from
USD50K to USD250K
USD1M already invested
Growth
6th months acceleration process
Mentoring
Technology specialists & strategic alliances
Network
Use of Globant offices around the world
TheEye
Robin Tests
Avancargo
Drixit Technologies
Woocar
CamOnApp
STRATEGY
INVESTMENT COMMITTEE
ESTRATEGIC | |||||||||||||
MINORITY | |||||||||||||
EXIT | |||||||||||||
COMMERCIAL | GLOBANT | ||||||||||||
PARTICIPATION | STRATEGY | ||||||||||||
PARTNERSHIP | STUDIOS | ||||||||||||
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Leading this dream, our management team
BOARD OF DIRECTORS
Martín Migoya
Chairman of the Board, CEO & Co-founder
Mario Eduardo Vázquez
Former Partner & General Director of
Arthur Andersen, Chief Executive Officer of
Telefónica Argentina
Philip A. Odeen
Former Chairman of the Board of Directors &
Lead Independent Director of AES
Corporation and Convergys Corporation
SENIOR MANAGEMENT
Martín Migoya
Co-founder & CEO
Gustavo Barreiro
Chief Information Officer
Juan Urthiague
Chief Financial Officer
Martín Gonzalo Umaran
Director, Chief of Staff, Head of M&A & Co-founder
Francisco Álvarez-Demalde
Founder & General Partner of Riverwood Capital
Linda Rottenberg
Co-founder & CEO of Endeavor Global
Martín Gonzalo Umaran
Co-founder, Chief of Staff & Head of M&A
Patricia Pomies
Chief Delivery & People Officer
Mercedes MacPherson
Chief Talent & Diversity Officer
Guibert Andrés Englebienne
Director, CTO & Co-founder
Richard Haythornthwaite
Chairman of Mastercard Incorporated and
Centrica plc
Guibert Andrés Englebienne
Co-founder & CTO
Sol Mariel Noello
General Counsel
Wanda Weigert
Chief Brand Officer
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Forward looking
disclosure
In addition to historical information, this presentation might contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: the impact and duration of the COVID-19 pandemic; our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America; and other factors discussed under the heading "Risk Factors" in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K.
Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this presentation whether as a result of new information, future events or otherwise.
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READY?
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Globant SA published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 22:36:03 UTC