You are on page 1of 34

Forward Looking Disclosure

In addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section
27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include information about possible or
assumed future results of our business and financial condition, as well as the results of operations, liquidity, plans and objectives. In some cases, you can identify forward-
looking statements by terminology such as “believe,” “may,” “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: the persistence and intensification of competition in the IT
industry; the future growth of spending in IT services outsourcing generally, application outsourcing and custom application development and offshore development
services; the level of growth of demand for our services from our clients; the level of increase in revenues from our new clients; the resource utilization rates and productivity
levels, the level of attrition of our IT professionals; the pricing structures we use for our client contracts; general economic and business conditions in the locations in which
we operate; the levels of our concentration of revenues by vertical, geography, by client and by type of contract in the future; the continuity of the tax incentives available for
software companies with operations in Argentina; Argentina’s regulations on proceeds from the export of services; our expectation that we will be able to integrate and
manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands we expect our rapid growth to place on our management and
infrastructure; the sufficiency of our current cash, cash flow from operations, and lines of credit to meet our anticipated cash needs; the high proportion of our cost of
services comprised of personnel salaries; and other factors discussed under the heading “Risk Factors” in the final prospectus for our initial public offering and other
documents filed with the Securities and Exchange Commission.

These forward-looking statements involve various risks and uncertainties. Although the registrant believes that its expectations expressed in these forward-looking
statements are reasonable, its expectations may turn out to be incorrect. The registrant’s actual results could be materially different from its expectations. In light of the
risks and uncertainties described above, the estimates and forward-looking statements discussed might not occur, and the registrant’s future results and its performance
may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to, the factors mentioned above. Because of these
uncertainties, you should not make any investment decision based on these 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 press release whether as a result of new information, future events or
otherwise.

2
Globant’s Highlights

We are a digitally native technology services company, a pure play on emerging technologies.

We dream and build digital journeys for millions of users.

Globant is the place where design, engineering and innovation meet scale.

Global delivery centers, including North America, Latin America and Asia, allowing next-gen software
creation with the right talent and skills.

Long-term and recurring relationships with blue-chip clients.

Strong revenue growth and attractive profitability.

3
Innovative Solutions by Globant

Disney Electronics Arts Google


● We helped Disney create their next ● We contributed to the development of ● We partnered with Google ATAP in its
generation online experience for their EA’s highly successful FIFA franchise. revolutionary Project ARA
parks and resorts. ● A Globant customer for more than 8 ● We are working on the development of a
● A Globant customer for more than 6 years. marketplace for Project ARA’s modules
years. and hardware
● A Globant customer for more than 10
years.

4
The Revolution

Emerging technologies create a HUGE opportunity

These technology revolutions have unlocked new ways for


companies to connect with customers

Big Data | Mobile | Cloud | Internet of things | UX | Wearables | Gamification | Cognitive Computing

5
Today’s Challenge

Companies engage with “technology voracious” users, customers, employees and partners
who have high expectations.

Users demand more personalized experiences.


They want to create an emotional tie with brands, which in turn increases loyalty.
6
The Opportunity

Every company in the world…

NEEDS TO ADAPT
NEEDS TO TRANSFORM ITS BUSINESS
NEEDS TO CREATE NEW AND SMART JOURNEYS FOR USERS

7
We dream and build digital journeys that
matter for millions of users, a pure play on
emerging technologies.

We are the place where innovation, design,


and engineering meet scale.
Globant is a digitally native
technology services company We deliver value leveraging global talent
from development centers in North
America, Latin America, and Asia.

8
Why Globant Captures this Opportunity?

We create software in a new way.

Engineering focused on emerging technologies, Innovation


through our unique Studio Model

Design & UX Our proprietary Agile Pods


methodology

9
Why Globant Captures this Opportunity?

Traditional players lack the DNA to deliver this vision.

Digital agencies are focused on creativity, but lack Traditional IT services providers chiefly focus on
engineering expertise or the ability to scale. optimizing corporate processes and productivity.

We provide the optimal blend of engineering, design and innovation capabilities that focus on
emerging technologies and trends to meet our clients' business needs.

10
Companies Pay Attention to These Challenges

Globant’s Addressable Target Market


Emerging (within marketing budgets)
Technologies Growth
Traditional IT Fortune 500:
Services Growth +25% 2014 Revenue
$12.5 Trillion
+5%
Marketing
Budgets
10%: $1.25 Bn

Digital
Budgets
25%: ~$300 Bn
Y0 Y1 Y0 Y1

Gartner CMO Spend Survey 2015

11
Global Delivery Model

Strong global presence, with great talent to create digital journeys.

UK

Multiple time zones enable us to


deliver agile services to our
United States customers and global partners.
Spain

Mexico
We benefit from Cultural
similarities and a strong history of
Colombia innovation.
Brazil India
We have an unlimited talent pool of
highly educated IT professionals.
Peru Uruguay

Chile
Argentina

12
Globant Today

Select Clients Employees History

+5,250 August 2015 Founded 2003

2006 Signed Google


Highlights
Riverwood 2008
Capital and FTV
Capital invested

2009 Studios launch

Revenue Growth ($M) WPP Invested 2012


254
2014 Listed on NYSE
200
158
129 2 follow-ons 2015

2012 2013 2014 2015


13
CAGR: 25,4%
Leading This Dream

Management team Board of Advisors


Martín Migoya CEO, CO-FOUNDER Reid Hoffman PARTNER AT GREYLOCK;
EXECUTIVE CHAIRMAN AT LINKEDIN
PREVIOUS EXPERIENCE
Project Coordinator at Repsol-YPF, Consultant at Origin BV OTHER EXPERIENCE
Holland. Entrepreneur of the year by Ernst & Young (2013)
Board Member of Airbnb, Edmodo, Mozilla, Shopñick, Swipedly and Zynga

Alejandro Scannapieco CFO Andrew McLaughlin CEO AT DIGG AND


SVP AT BETAWORKS
PREVIOUS EXPERIENCE
Senior Finance Analyst at JPMorgan, CFO at Microsoft South America PREVIOUS EXPERIENCE
Deputy CTO of the United States and Director of Global Public Policy for Google

Guillermo Marsicoverete COO


Nick Beim PARTNER AT VENROCK
PREVIOUS EXPERIENCE
Sales VP of United Kingdom & Ireland of Sun Microsystems PREVIOUS EXPERIENCE
General Partner at Matrix Partners and Associate at Goldman Sachs

Guilbert Englebienne CTO, CO-FOUNDER Sir Martin Sorell CEO OF WPP


PREVIOUS EXPERIENCE OTHER EXPERIENCE
Researcher at IBM, Head of Technology for CallNow Inc Non-executive Director of Formula One and Alcoa

Martín Umaran CHIEF OF STAFF, CO-FOUNDER Sal Giambanco HUMAN CAPITAL AND OPERATIONS
AT OMIDYAR NETWORK
PREVIOUS EXPERIENCE
Former Globant COO and Chief Corporate Business Officer PREVIOUS EXPERIENCE
Vice President of Human Resources and Administration for PayPal and
eBay
Guillermo Willi CHIEF PEOPLE OFFICER
PREVIOUS EXPERIENCE
Human Resources Director for Microsoft Argentina and Uruguay,
Human Resources Director for Pampa Energía 14
Our secret sauce
HOW WE DO IT
Digital journeys are not just

flashy mobile
or web apps.

They are a combination of smart, relevant and appropriate


interactions that depend on a WHO, WHERE, WHEN, WHY & WHAT.

16
Creating a Digital Journey

Store Mobile App Website Wearable Device Ecommerce

big data fast data

Smart Digital Journey Engine

Consumer
Services over experience Cognitive
Platforms computing

17
In Today’s World

Every Industry is Facing this shift

Telcos Healthcare Banking Retail Travel

18
How We Deliver This Vision

Ecosystem of 3 stages necessary to fulfill a Digital Evolution Lifecycle.

Stay Relevant

3 2
Explore &
Build
Discover

19
1 - Stay Relevant

Our thought leaders help our customers stay relevant within their industries by creating and
publishing researches, organizing SME gatherings, and participating in conferences. We have
the knowledge necessary to create digital journeys.

Sentinel Report Books Webinars Conferences Customer Visits


Whitepapers
Researches

20
2 - Explore & Discover

We analyze each business, industry, challenges, stakeholders, and goals in order to understand the
lifecycle of products and services, and to define the exact digital journey that will matter to users.

Digital Journey Innovation as a


Playground Service

21
3 - Build

Once the Digital Journey is defined, we develop and build the


experience by leveraging 3 key pillars:

12 Studios Agile Pods Services Over


Methodology Platforms Strategy

22
Our Studios: Deep Pockets of Expertise

23
Our Agile Pods

Multidisciplinary Teams

PRODUCTIVITY =
Speed, Quality, Innovation, Autonomy

Pod Metrics Agile Pods methodology


$
Globant rate . 3 discrete levels of productivity
. Contracted and defined variables
. Incentives aligned to create true partnership
Customer Total Cost . Multiple pods at large clients
of Ownership
. Some of our largest clients have embraced the model
- Higher growth
Productivity - Lower attrition

24
Services over Platforms Strategy

Mobile Product Engine


Smart Digital Journey Engine
Employee Journey Platform
Digital Journey Delivery Platform

Services over
Platforms Strategy

25
Financial Review
Significant Revenue Growth

Revenue ($M)
Average Revenue by Client ($M) 11.9
253.8

199.6
8.8
158.0
129.0 7.7

6.2 6.1
73.3 5.8
54.5
4.6
4.1

2012 2013 2014 2015 Q1'15 Q1'16


2012 2013 2014 2015

TOP 20 TOP 10

Client Revenue Contribution (%) Clients with Revenues >$1M


54
51
2012 2013 2014 2015 Q1’16
46

Top 1 Client 9 6 9 12 12 41

Top 5 Clients 28 25 28 33 36 32

Top 10 Clients 45 40 44 47 48
Globant Proprietary | Confidential Information
2012 2013 2014 2015 LTM 27
Revenue Breakdown (Q1’16)

Geography Currency
7%

11% 8%

North America
USD
Latam and Others
Europe
Others

82%
92%

Industry Contract Type


12% 4%
22%

16% M&E T&M (includes Agile Pods)


T&T
Proff. Svcs Fixed Price
Travel
17% BFS&I
20% Others
96%
13% 28
Typical Customer Engagement

1 2 3

Up to 3 Up to 5
Majority

29
Attractive Profitability

Adjusted Gross Profit ($M) Adjusted Net Income ($M)


99

34
82

26
62
55

15

33 10
8
8
21

2012 2013 2014 2015 Q1'15 Q1'16 2012 2013 2014 2015 Q1'15 Q1'16
Adj. Gross Adj. Net
Profit 42.6% 39.2% 41.0% 38.9% 38.5% 45.0% Income 8.1% 9.2% 13.0% 13.5% 13.8% 11.5%
margin % margin %

Adjusted Gross Profit Margin excludes depreciation and amortization and share-based Adjusted Net Income excludes share-based compensation and M&A Expenses
Globant Proprietary | Confidential Information
compensation
30
Operating Levers

Yearly Revenue per IT Professional ($K) SG&A (% of revenues, excluding D&A)

31.8%
63 64
63

60
26.2% 26.1%
25.5%

21.9%

2013 2014 2015 LTM 2013 2014 2015 Q1'15 Q1'16

Revenues in Hard Currencies with Costs in Local Currencies


9%
Revenues Q1’16: $73M 8% Headcount distribution - Mar’15 6%

LatAm
Others US
USD India
92% 85%

31
Strong Balance Sheet

Balance Sheet Summary

Dec’12 Dec’13 Dec’14 Dec’15 Mar’16


Capex (% of revenues)
Cash and Investments 9 27 62 62 69

Current Assets 44 67 116 128 131


6.9% 7.0% 7.2%
Total Assets 81 112 159 223 233 4.6%

Financial Debt 12 12 1 1 0

Total Liabilities 38 52 35 63 64 2013 2014 2015 Q1'16

Equity 43 60 125 160 169

32
Our Growth Strategy

• Top 40 accounts have dedicated client • Highly professional sales team • Geography • Terraforum
teams
• Key sales offices (Boston, London, New York, San • Capabilities • Clarice
• Every client has an assigned client partner Francisco, Pune, Sao Paulo, Bogota, Mexico DF and
Buenos Aires) • Verticals • Nextive
• More than 450 Globers have revenue and
margin quotas • Thought leader recognition through Hackathons, • Customers • Huddle
Roadshows, Conferences and Referrals
• Studio cross-selling • Accendra
• Leverage WPP relationship
• Openware
Globant Proprietary | Confidential Information
33
Thanks!

You might also like