Globant Report prepared on August 11, 2016

Financial information through June 30, 2016

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2003 company founded

$1.5bn the company’s market

capitalization

$71bn size of digital services market

33% the company’s year/year

revenue growth in the first half of 2016

#1 Southwest Airlines is the

company’s number one client in 2016

85% of Globant’s workforce is tech

professionals

339 the number of employees the

company added in the first half of 2016

57 the number of customers

generating more than $1 mm in revenue

Blockchain a capability the CEO is watching

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INDUSTRY CHOICE

The number one factor in successful companies is choosing the right industry, because growth covers a lot of missteps and mistakes, and allows employees to earn more and develop their careers within the company. Globant chose digital consulting wisely.

TRANSPARENCY

Companies that are transparent tend to have defined strategies and goals, which makes it easier for employees to thrive. From their financial statements and goals to their compensation programs, Globant is clear about what matters.

CUSTOMERS

Globant’s named customers are largely blue-chip companies known for innovation. While their top 10 clients account for a significant portion of their revenue and they had a slight dip in customer satisfaction in 2015, Globant had consistently acquired additional clients, even before it had invested in more dedicated sales expertise.

MANAGEMENT STABILITY

Senior management stability is important to all employees because every time a new executive arrives, they have to make their mark, which can entail strategy shifts, reorganization, turnover, and reallocation of spend. Globant’s senior team is incredibly stable, with the shortest, current tenure at three years. contract/compensation point of view to accept a role.

MARKETS

Because the largest proportion of Globant's costs, as well as its headquarters, are in Latin America, the company has significant risks outside of management's control, including currency, regulation, tax and political risks. Those risks are somewhat offset by Globant generating most of its revenues in the U.S.

EMPLOYEE TURNOVER

Voluntary employee turnover is a strong indicator of hidden culture issues. While Globant’s attrition rate has ticked up in 2016, it’s a similar trend at other professional services organizations and its key employee attrition has abated. spacing.spacing

ACQUISITION POTENTIAL

Uncuffed believes Globant has the potential to be acquired. Take into consideration the likelihood your position would be redundant and your ease in finding a new role at your experience level. Weigh your personal risk factors against what you would need from a compensation/contract. to offset.ssssssssssssssssssssssssssssss

DOWNTURN LAYOFF POTENTIAL

Like all professional services companies, Globant has an outsized portion of their costs in talent (70%). When a downturn comes, the company has limited options to cut costs and maintain their cashflow and profitability which makes layoff potential very high. aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaabbb

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Company founded

Signed Google as a customer.

2003

2006

2012

2014

2013

2015

2016

WPP acquires a ~20% stake in Globant.1

Company takes a controlling stake in

Dynaflow and focuses on “Software as a

Platform.”

IPO on NYSE2 under the symbol GLOB. The

shares priced at $10 a share, which raised

$66 million. The company’s proceeds were

$40.5 million. In April and in July, follow-on secondary

offerings by selling shareholders priced at

$18.50 and $28.31 per share, respectively.

The company did not participate. The company listed its shares on the

Luxembourg Stock Exchange to gain more

visibility in Europe (ISIN LU0974299876).

1 http://investors.globant.com/2013-01-02-WPP-Acquires-Stake-in-Globant 2 http://investors.globant.com/2014-07-18-Globant-Announces-Pricing-of-Initial-Public-Offering

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COMPANY BACKGROUND

In 2003, four friends founded Globant, after being inspired by the success of India-based tech

outsourcing businesses in the U.S. They believed Argentina was the perfect fit for U.S. companies

due to the talent pool, cultural fit, time zone alignment and favorable regulation on data protection.

In 2006, they became concerned that Globant's growth was spreading them too thin, and the

company focused on one geographic market, the U.S., and four industries: high tech, travel, telecom

and financial services.

By 2016, the company describes themselves as a “digitally native technology services company” that

“dreams of building digital journeys that matter to millions of users” at the “place where engineering,

design and innovation meet scale.”

Globant’s definition of a digital journey: "a context­aware

interaction between an end user and a brand or business

whereby the interaction becomes a digital conversation in

which technology establishes and builds a powerful experience

with deep emotional connections through three key values:

simplification, surprise, and anticipation.”

The company's approach to creating digital journeys contains three pillars: Stay Relevant, Discover,

and Build.

Consider your experience and how you've delivered by simplifying, surprising or anticipating an opportunity to share with the company. Also, ask about how they overcome objections by the client if there is a difference of opinion on these key values.

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THE INDUSTRY

The tech services industry is highly competitive, with a range of services and competencies. Despite

its history, Globant promotes itself as a pure play on emerging technologies or digital strategy and

services. This differentiates them from the leaders in the IT services and consulting industry,

including companies like IBM, Deloitte, Accenture, and McKinsey. The leaders offer varied and

frequently more types of consulting and/or services, but most are building digital businesses too.

There is a good reason for the digital focus. IDC, a market research firm, expects digital services to

become an even bigger piece of business and tech consulting engagements, growing to 80 percent

of all engagements in 2019.3

Based on its research sources, Globant quotes digital

services as a $71 billion market in 2016, with a 25 percent

compound annual growth rate for the next five years. Based

on its 2015 revenue, Globant has approximately three – four

percent share of the market, compared with Accenture who

recently sized its digital-related services business at $7 billion

or 10 percent of the market.

In addition to traditional technology consulting and outsourcing companies, Globant competes with

digital agencies and design firms.

3 http://www.idc.com/getdoc.jsp?containerId=prUS40656915

What are the most frequent reasons clients choose a competitor over Globant? How are they addressing their shortcomings?

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KEY COMPETITORS:

Accenture GlobalLogic Mindtree HCL SapientNitro

Aricent Ideo Razorfish Tata

Cognizant Technology Solutions Infosys Technologies RGA Thoughtworks

EPAM Systems Luxoft Sapient Wipro

GLOBANT’S BUSINESS STRATEGY

Globant has a four-part business strategy:

1. Grow revenue with existing and new clients;

2. Remain at the forefront of innovation and emerging technologies;

3. Attract, train and retain top quality talent; and

4. Selectively pursue strategic acquisitions.

In Uncuffed’s analysis, the strategy is generic, and we will focus our commentary for each pillar on

performance.

1. GROW REVENUE WITH EXISTING AND NEW CLIENTS

Provided most of Globant’s client engagements are limited to

short-term, discrete projects; the company has to sell its

services continuously.

Given the transactional nature of the services they provide and the inherent volatility of projects by a specific client in a year, how do they handle a dedicated client team when it may be a slow year?

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Like most companies, Globant identifies industries and locations

with growth potential and requires their sales team to follow

specific guidelines for managing potential new clients.

Globant expects their sales team to identify a specific value proposition for a prospective client

before initial contact by gathering intelligence and insight into

their needs. The company wants their sales teams to engage

with market-facing management personnel of the targeted

company to get an understanding of their business model and

align their proposals with business impact for the client.

Once the potential customer confirms the opportunity, the sales

team maps the account and the

competition, enlists its industry and

subject matter experts, and its pre-

sales engineers to create a proposal

and negotiate with the client. If the

business is secured, the sales team

works closely with the internal team

to ensure project success

On a quarterly basis, the company

What industries are they most excited about?

The company enters into selective non-competes with clients that may hamper their ability to sign new, similar clients. How prevalent are non-competes and how does that impact their ability to grow?

43 43 47 51 49 57

292 344 343 344 359 366

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

GLOBANT CUSTOMERS (last 12 months)

Customers with > $1mm in revenue Customers with < $1mm in revenue

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provides its customer count for the last twelve months, and there

has been solid growth in both total customers and size of

engagements. In the most recent quarter, there was an unusually

large jump in customers contributing more than $1 million in

revenue. This performance is a marked change.

Consider their second quarter performance in light of their 2015 annual numbers, which shows 47

percent of Globant’s customers generated less than $100,000 of revenue, and Globant’s strongest

growth was in client engagements that produced less than $1 million in revenues.

2015 2014 Yr/Yr

Change Over $5 million 10 10 0%

$1 - $5 million 41 36 14% $0.5 - $1 million 30 23 30%

$0.1 - $0.5 million 100 83 20% Less than $0.1 million 163 144 13%

Total Customers 344 296 16%

The company has recently stepped up investments to grow its

sales team. At the end of 2015, the company had just 44

employees in sales and marketing. By June 30, 2016, the

company had 81 or a net add of 37 sales and marketing

professionals.

The company had terrific performance in the second quarter on customers spending more than $1 million with Globant. What did the company do right?

Consider the average contract size at Globant and how that may impact your role.

What has been the impact of the increase in the sales team? How is the company supporting the expansion of its sales team? Are there more demands on engineering or marketing? How has the company prepared for additional volume regarding client support and satisfaction?

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Globant generated 47 percent of its 2015 revenues or $118.5

million from its top 10 clients. Part of the company's growth

strategy is to focus on 50 companies that could generate

revenues of $50 million annually. Currently, Globant’s top 20

accounts have dedicated client teams.

In 2016, their number one client is Southwest Airlines, replacing Walt Disney Parks and Resorts

Online who spent $31.1 million with Globant in 2015 and was their biggest client in 2013 and 2014

too. Other notable clients include Google, Electronic Arts, JWT, and Orbitz.

For existing customers, Globant works to expand the relationship by potentially cross-selling

additional services and by working with new departments. The company has repeatedly said it

needs to grow its onsite coverage, which they have deemed "not perfect." At a minimum that means

account managers, technical directors and program managers should be identifying new

opportunities and developing key client relationships when working onsite. The company

incentivizes employees to develop customers, with more than 400 employees currently eligible to

participate (more detail in compensation section).

A deeper look at their customer revenue by geography shows

North America is their largest market at roughly 82 percent in the

first half of 2016, followed by Latin America and others (primarily

India) at 11 percent and Europe at eight percent. The company

It appears Globant used fixed cost contracts as a way to win business (15% of business in 2013 to 4% of business in 2015). Why did the company cutback and how has this impacted the company’s ability to close business and expand?

Consider the attractiveness of the prospective role by geography, because the company is more interested in North America and Europe, as compared to Latin America.

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has disclosed that its

business in North America

and Europe generates

higher profit margins, as

compared to Latin

America, and one of its

goals is to expand

business in those more

attractive and profitable

geographies.

In the first half of 2016, revenue grew 33%

year/year with faster growth in Europe and

Latin America and Other, as compared to

North America, which posted a healthy 28%

year/year growth.

28%

45% 87%

33%

$0.0

$40.0

$80.0

$120.0

$160.0

North America

Latin America & Others

Europe Total

REVENUE BY CUSTOMER LOCATION (in millions and yr/yr change)

1H 2015 1H 2016

In the first half of 2016, Globant's revenue growth is an admirable 33% year/year. That said, when you add the context of scale and competition, it looks slightly less exciting. For example, Accenture is growing at 10% year/year (and they say their digital revenues are growing 30%). Accenture’s revenues are roughly 100x the size of Globant, and therefore you would expect Globant to be growing much faster than 33%. What lessons have they learned from scaling to this point? What concerns do they have with their ability to continue to scale?

Another way to question their growth is to focus on their largest market: In the first half of 2016, North America grew 28% year/year or only slightly above Globant’s estimated market growth. Are they riding the wave or truly distinguishing themselves?

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When looking at their industry

concentration in 2015, their single

largest vertical was media and

entertainment, which was not a focus of

Globant’s original strategy, but makes

sense given their service offerings and

later acquisition of the Huddle Group.

One other component to note is the company’s promotional and marketing expenses, which

impacts the

company’s ability to

attract and retain its

clients. The rate of

spending was nearly

flat in 2015, as

compared to 2014.$1.3

$1.6

$1.7

2013

2014

2015

PROMOTIONAL AND MARKETING EXPENSES (in millions)

Why does the management team feel financial services is the smallest (at 13%) of the “original four” focuses from 2006, and there is no financial services client listed as notable.

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Flat spending did not impact net customer additions in 2015, which

increased to 48 from 33 the prior year. One could surmise the

company has become more efficient and/or there is a long-tail to

their marketing programs before customer acquisition. In fact, their

marketing programs consist mainly of brand building programs,

including co-organized events, as well as events focused on tech and

innovation, public and industry relations, and reports and case studies.

2. REMAIN AT THE FOREFRONT OF INNOVATION AND EMERGING TECHNOLOGIES

To get a look at what the company is thinking and promoting, Globant produces a quarterly Sentinel

Report, which includes consumer behavior observations, market trends, metrics and industry

updates. This is one of Globant’s examples of the staying relevant pillar; thought leadership to keep

their customers relevant within their industry. The company's senior subject matter experts, about

50 people, are known internally as the Premier League and are featured in the Sentinel Report.

During the discovery phase, Globant works with their customers to conceive the digital journey, with

a focus on the following, as per the CEO:

• Imagine: Vision and future scenery based on behavior, business, and technology.

• Envision: Identify the business variables that drive digital journeys.

• Define: What is missing in the organization (product definition, process, services, talent, etc.)

to achieve the vision.

• Transformation: A sequence of actions and results to materialize the vision.

Consider asking for more clarification why the marketing spend was nearly flat in 2015, as compared to 2014. How is the marketing team viewed within the company? Do they plan to invest more or less in marketing? How will the marketing team support the sales team expansion? Are they going to add sales enablement to their marketing strategies?

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Internally, Globant is organized by technical, design, and category

expertise, which the company calls studios. This alignment

contrasts with larger tech services companies, such as Accenture,

which are typically organized by industry. Globant believes by

aligning their teams in studios; the company can deliver on specific

tech challenges in emerging technologies and related market

trends. In fact, the Premier League's mission is to foster

innovation by sharing knowledge and market trends across studios. A brief summary of each of the

studios:

Big Data Cloud Ops Cognitive Computing Consumer Experience

Scalable platforms, data integration, architecture, visualization and data science.

Cloud and DevOps. Decision making, rules engine, machine learning, and artificial intelligence.

API management, e-commerce solutions, omnichannel experiences

Continuous Evolvement Enterprise

Consumerization Digital Content Gaming

Software evolution, IT service management and software archaeology.

Talent management, cloud development, collaboration solutions, and enterprise operations.

Content management systems, e-learning solutions, digital marketing services and video content production.

Graphics engineering, game engineering, gaming experience and digital platform services.

Mobile Quality Engineering UX Design Wearables & Internet of

Things

Native development, product development and enterprise mobility

Testing center, test automation, mobile testing, load and performance testing.

Service, user experience, industrial and visual design.

Wearable application usability and interface design, hardware design and integration, and data design and management.

The company has noted these studios are more profitable.

Consider asking how the profitability of a studio impacts the resources provided to tech professionals, and if it impacts the projects that can be sold and serviced. If you are being asked to join a more profitable studio, consider being more aggressive in your compensation negotiations.

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Cognitive computing is their most recent studio, and the CEO

has mentioned he's very excited about what is happening in

blockchain technologies. The company has said it will add

studios organically and through acquisition.

Globant publishes a portion of its customer satisfaction survey

results. Overall customer satisfaction fell slightly in 2015 to 85.7 from 86.4 in 2014. Six of their

studios improved their scores year/year, while four studios slipped, including quality engineering, UX

design and continuous evolution, and digital content. There was no data available for their newer

studios, cognitive computing, and wearables & internet of things.

Customer Satisfaction Highest Rated Studios

Lowest Rated Studios

1. Gaming 92.1

1. Continuous Evolution 77.8 2. Cloud Ops 89.2

2. UX Design 82.3

3. Enterprise Consumerization 88.8

3. Big Data 83.7

The company asked their customers to “determine their level of satisfaction regarding innovation in

the project developed?” The overall score declined to 78.0 from the prior year’s 82.4 and was below

the company’s target of 82 out of 100.

Innovation Highest Rated Studios

Lowest Rated Studios

1. Continuous Evolution 95.7

1. UX Design 60.0 2. Mobile 90.0

2. Quality Engineering 74.3

3. Gaming 85.4

3. Cloud Ops 78.0

Consider learning more about blockchain technologies. It was started in financial services by bitcoin and could potentially be an exciting area of learning and sales opportunities.

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Once the scope of the engagement is defined, Globant works in

agile pods. It’s a multi-disciplinary team responsible for building

the solutions.

Globant is promoting “services as a platform.” The company has

a pre-built solution as a starting point and then customizes it to

the customer’s needs. The company has four, including I am at,

Starmeup, Acamica, Collokia. Globant is pricing these “digital

journeys” on a consumption basis (per user, per transaction, etc.),

potentially creating a recurring revenue stream and allowing

them to scale faster.

3. ATTRACT, TRAIN, AND RETAIN TOP QUALITY TALENT

In a talent-driven

product like tech

services, it will come

as no surprise their

single largest expense

is their client-facing,

delivering personnel.

Uncuffed believes the UX Design studio has the highest probability of talent/leadership change due to its high profitability and lower ratings on satisfaction and innovation.

In some ways, Services as a Platform is opposed toward the company’s desire for larger engagements. Ask about their goals for these solutions and consider your desire to work on projects of this type. Does it free you up to do higher-level development or does your development work become more mundane?

21% 34% 32% 34% 31% 19% 0

3,000

6,000

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

EMPLOYEES (Quarter-end count and yr/yr % change for total employees)

Non-IT Employees IT Employees

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The company has a stated goal of

increasing revenue per employee to

become more efficient. After

declining in 2015, Globant should

increase revenue per employee in

2016 to a record, as long as the

second half of the year's performance

replicates the first half. This

performance is being driven primarily

by revenues increasing at a faster rate

than headcount. Revenue growth in the first half of the year was 33 percent, while employee growth

was 19 percent year/year.

Another contributing factor,

attrition has risen approximately

one percentage point or ~50

more employees leaving the

company from its experience in

2015. That said, Globant's

attrition had improved from

2013 and 2014 when it was

running above 20 percent.

$28,486

$52,875 $50,346

$0

$20,000

$40,000

$60,000

2014 2015 2016

REVENUE PER EMPLOYEE (end of period employee count)

1H 2H

20.7%

20.9%

22.2%

20.2%

17.8%

18.5%

18.9%

2011

2012

2013

2014

2015

Q1 2016

Q2 2016

ATTRITION (trailing 12 months)

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Another way to look at employee turnover is forfeited stock

awards, which Globant gives out to selected employees.

2014 2015

Forfeited stock options 158,000 35,000 Average exercise price $8.40 $15.49 Average stock price for the year $13.05 $37.51

Compensation $734,700 $770,700

In 2014 and 2015, Globant’s employees walked away from

approximately $700,000 worth of compensation (if all of the

options were vested and sold at the average stock price for

the year). That said, the number of forfeited options fell

dramatically in 2015 from the year prior, despite its expanding

employee base.

While the stock price and senior management changes can skew the results, neither played a role in

2015. The senior management team has been incredibly stable, with no turnover in 2014, 2015 or

the first part of 2016.

By U.S. standards, Globant’s attrition rate is high, but Globant is more akin to an India-based tech services company. In comparison to Wipro (20%) and Tata (13%), Globant’s attrition rate is in the middle. You may want to understand how attrition rate impacts projects, clients, culture.

Uncuffed believes more highly-valued employees stayed at Globant in 2015, as compared to 2014 – a positive sign.

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Name Title Start Year Martín Migoya Chief Executive Officer co-founder Martín Gonzalo Umaran Chief of Staff co-founder Guillermo Marsicovetere Chief Operating Officer 2007 Guibert Andrés Englebienne Chief Technology Officer (Global) co-founder Nestor Nocetti Executive Vice President, Corporate Affairs co-founder Alejandro Scannapieco Chief Financial Officer 2008 Natalia Kanefsck Chief Accounting Officer 2012 Guillermo Willi Chief People Officer 2011 Gustavo Barreiro Chief Information Officer 2010 Andrés Angelani Chief Solutions Officer 2004 Patricio Pablo Rojo General Counsel 2013 Wanda Weigert Director of Communications & Marketing 2005

Globant describes its culture as “entrepreneurial, flexible, and team-oriented." They claim to

empower employees through:

• Autonomy : take ownership of their client's projects,

professional development, and their careers;

• Mastery: expecting constant improvement and

exceeding expectations; and

• Purpose : building a company for the long-term that

breaks from the status quo.

Consider asking about training and continuing education resources for non-tech professionals. The company’s accounting would lead you to believe their training resources are exclusively for technical and operational staff, but it may be a quirk in the way they’ve chosen to account for it.

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The company does provide some support for mastery of your craft in the form of training. The way

Globant accounts for this expense would lead you to believe their training resources are exclusively

for technical and operational staff, and not for other employees such as sales, marketing,

management and administration.

2013 2014 2015

Recruiting, training and other employee costs $210,000 $138,000 $227,000 Year-end employees 3,236 3,775 5,041

Cost per employee $64.89 $36.56 $45.03

The company promotes their core values as “act ethically,

think big, constantly innovate, aim for excellence in your work,

be a team player, and have fun.”

One of the founders’ original visions was to create world-class

career opportunities for technology professionals, not just in

metropolitan areas, but also within outlying cities within Latin America. As of June 30, 2016, the

company has 35 offices in 11 countries.

One interesting note: In 2015, the company bought land in

Tandil, Argentina, where they plan to build a new facility to

consolidate their regional delivery centers, which appears to

contrast with their original goal.

The company has said that every employee needs to be an innovator. Consider highlighting how you’ve demonstrated innovation in your experience that led to results.

If any of the current regional offices in Argentina are important to you, clarify with the company the land purchase and what it means for your preferred office.

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Regarding employees, Globant added 339

employees in the first half of 2016, from

year-end, primarily in Columbia (171), the

U.S. (65) and Mexico (51), with Argentina

posting a decline of 49 employees. The

decline in Argentina is troubling, as it’s

their home market. Given

107,000 105,534

41,644

28,933 28,622

15,500 15,120 12,230

7,158 5,500 5,350 4,730

0

40,000

80,000

120,000

Bue

nos

Aire

s

Pune

Có

rdo

ba

Bo

gotá

Mex

ico

City

La P

lata

Bah

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lanc

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Res

iste

ncia

Ban

galo

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New

Yo

rk

Lond

on

San

tiago

GLOBANT LOCATIONS WITH SQUARE FOOTAGE CHANGE 12/31/15 6/30/16

2,80

6

48 71

8

83

42 44

0

336

343

73 47

8

13

Arg

entin

a

Bra

zil

Co

lom

bia

Chi

le

U.K

.

Uru

guay

U.S

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Mex

ico

Per

u

Indi

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Spai

n

EMPLOYEES BY LOCATION

12/31/15 6/30/16

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Globant’s consistent success, Argentina should be their

easiest market to recruit and retain talent.

The company has a stated goal to expand the number of

technology professionals in the U.S. And, as part of the Clarice

acquisition, which expanded Globant in India, the seller has to

achieve hiring a certain number of new professionals to obtain

additional compensation in three steps with dates in 2016,

2017 and 2018.

In the first half 2016, Globant applied to the U.S. Department

of Labor for 163 individuals to be certified as the first step in

acquiring H1B visas for foreign workers.

COMPENSATION

In 2015, salaries, employee benefits, social

security taxes and share-based compensation

expense comprised more than more than

three-quarters of Globant's operating costs.

Not a surprise in a talent-driven company.

It's compensation-related expense grew 39

The company says they believe strongly in a global career path. If this is important to you, understand how to capitalize on this within the company, particularly if you are located in the U.S. and Europe.

On the project side, you can work on global projects in any country. If working in the U.S. is important to you, consider your contract structure. Because it appears the company starts the U.S. visa process for roughly 3-6% of their workforce in any given year and they have a stated goal to hire more U.S.-based tech professionals.

$109.7

$127.5

$176.7

2013

2014

2015

COMPENSATION EXPENSES (in millions)

Salaries, employee benefits and social security taxes

Shared-based compensation expense

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percent year/year in 2015, which is faster than its revenue growth of 27 percent and unsustainable.

Globant offers a compensation package that consists of salary and depending on the role and

position, the potential for annual bonuses, share-based

compensation, and participation in short-term incentive

plans.

• Annual salary increases are implemented in the

second quarter of each year (see known salaries at

end of report);

• Annual performance bonuses are for the top five

percent of performers;

• The short-term incentive plan consists of three

categories of bonuses:

o The Globant bonus, based on overall revenue

and EBITDA performance;

o A performance bonus, based on project/account revenue or project/account gross

margin, depending on the employee’s role; and

o the customer development bonus, based on additional revenue generated over the

project/account quotes.

• The company adopted a new equity incentive plan in 2014, where selected employees

are eligible for awards under the plan.

One key data point to watch in connection with compensation is the exchange rate between the Argentine peso and the U.S. dollar. The company's profitability is impacted negatively when the peso strengthens against the dollar. While the company takes proactive steps to limit the impact through hedging strategies, the impact can trickle down to all employees as the company works to offset any impact.

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From its inception through 2015, the company had provided 30,000

stock awards and more than 1.6 million options to purchase

common shares. Most of the options were granting with a vesting

period of four years, with 25 percent becoming exercisable on each

anniversary of the grant date. That said, there is some flexibility:

Globant has granted options with vesting periods agreed to with

employees.

The company has added a “change in control” provision to its equity incentive plan. Essentially,

should the company be acquired any outstanding stock awards will be eligible for exercise before the

change occurs if the acquiring company doesn't provide for a continuation, assumption or

substitution of awards.

The company promotes additional benefits including work from

home, subsidized company trips, flex-time policies, extended

maternity and paternity leave, corporate discount programs, yoga

classes, stretching classes, hair stylist appointments, and massages.

It is likely you will be asked to sign a non-compete. The founders have entered into two-year, post-

termination, non-compete agreements. In consideration of those agreements, the founders will

receive 24 times the highest monthly salary during the year previous to their termination

Globant has shown a willingness to negotiate on share-based compensation, which most likely means shortening the vesting period from their standard four years. Consider if this is something you want to ask for during your negotiations.

A lot of tech companies offer these types of perks. However, it is often only at corporate headquarters. If these perks are not available in your office, consider asking for a stipend.

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4. SELECTIVELY PURSUE STRATEGIC ACQUISITIONS

The company has stated it will acquire companies that "deepen our relationship with key clients,

extend our technology capabilities, broaden service offerings and expand the geographic footprint of

delivery centers, beyond Latin America.”

Year Company Estimated Purchase

Price ($mm)

Estimated annual revenues during acquisition year

($mm)

Rationale & Notes

2008 Accendra $2.0 $4.0 Microsoft software development expertise, volume pre-IPO

2008 Openware $1.5 n/a Security management, volume pre-IPO 2011 Nextive $5.4 n/a Mobile 2012 TerraForum $5.2 $3.8 Expansion in Brazil 2012 Globers S.A. $0.4 $0.6 Travel services acquired from founders.

2013/2014 Huddle Group $8.8 $7.75 in 2013

Media and entertainment industry. Acquired an 86.25% stake in October 2013 and the remaining 13.75% stake in October 2014.

2014 Bluestar Energy

aka Bluestar Peru $1.4 $3.7 Retail energy industry, particularly AEP.

2015 Clarice Technologies $20.2 $9.6

India expansion. Clarice has a performance-related contingent payment of $10.9 million subject to gross revenue, gross profit and additional employee targets through 2018, payable in installments.

2013/2015 Dynaflows $2.3 $0.6

Broaden services over platform strategy. Acquired a 22.75% stake in August 2013 and an additional 38.5% stake in October 2015, giving the Globant control. The company holds a call option to purchase the remaining stake in October 2020 and expiring in a year later.

2016 WAE n/a n/a Deepen strategy expertise and relationships with clients in U.S. and U.K.

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Every acquisition is likely contested because nearly every company

in tech consulting is expanding its digital capabilities and teams. In

fact, Uncuffed believes Globant is an acquisition target itself.

Globant has been lauded for its technical capabilities but may fall

short in strategic consulting, which would make the company a

target for firms like Accenture. In its earlier days, it was disclosed

that an India-based tech services company approached Globant for a possible combination.

Another possible suitor is WPP, the marketing and advertising

behemoth, took an ~20 percent stake in the company in 2012 and

continues as a shareholder today with a board seat. WPP has

completed many acquisitions in the digital arena and Globant has

performed services for a number of WPP companies including

JWT, Young & Rubicam, Grey, GroupM, and Kantar, among others.

As you can see above in the case of Dynaflows, Globant is open to taking minority positions. Today,

the company has 20% stakes in two of their services as a platform offerings, Collokia and Acamica.

Y e a r (s ) C o m p a n y R a t io n a le

C u r r e n t E s t im a t e d

C o s t ($ m m )

S t a k e

2014, 2015, 2016 Collokia Services as a Platform - employee collaboration $0.80 20%

2016 Acamica Services as a Platform - elearning $0.75 20%

Provided the company is a likely acquisition target, this carries additional risk for employees. Consider how you want your contract and compensation structured to offset the risk.

In its past, the company had a stated revenue target for companies that it was looking to acquire. What are the financial criteria for acquisitions?

© Uncuffed 26

CONCLUSION

Globant has performed very well against its stated business strategy. If the company continues to

grow, it is never going to be a smooth ride, and there are some concerns around attrition and

customer satisfaction. That said, Globant’s industry selection, stable management team and clearly

defined goals make it a company worth serious consideration for employment.

© Uncuffed 27

KNOWN GLOBANT SALARY INFORMATION

No. of Records Title Salary Range

20 ANDROID MOBILE DEVELOPER $98,000 $117,603 20 IOS MOBILE DEVELOPER $97,000 $98,000

1 IOS MOBILE DEVELOPER, ANALYST SOFTWARE DESIGNER $103,200 $103,200 20 JAVA DEVELOPER $97,000 $98,000

1 JAVA DEVELOPER, ANALYST, SOFTWARE DESIGNER $107,000 $107,000 1 SEMI SENIOR ADVANCED DEVOPS $125,000 $125,000 1 SENIOR .NET DEVELOPER $130,000 $130,000 1 SENIOR .NET DEVELOPER ANALYST $122,500 $122,500 1 SENIOR JAVA DEVELOPER $102,000 $102,000 1 SENIOR JAVA DEVELOPER ANALYST $130,000 $130,000 1 SENIOR NET DEVELOPER ANALYST $122,500 $122,500 1 SENIOR VP OF DELIVERY & OPERATIONS $350,000 $350,000

10 SOFTWARE ENGINEER EXPERT $118,500 $118,500 10 TECH DIRECTOR $118,500 $118,500

1 TECH LEAD $70,137 $70,137 10 TECH MASTER $117,603 $117,603

1 TECHNICAL LEAD SOFTWARE ENGINEER $102,981 $102,981 10 TECHNICAL MANAGER $142,800 $142,800 11 TEST AUTOMATION ENGINEER $93,600 $97,000 10 USER EXPERIENCE DESIGNER $85,000 $85,000

1 VICE-PRESIDENT & MANAGING DIRECTOR $250,000 $250,000 30 WEB UI DEVELOPER $102,000 $105,000

1. How have you overcome client objections when there is a difference of opinion on your key values of simplification, surprise, and anticipation?

2. What are the most frequent reason clients choose a competitor over Globant? How are you addressing your shortcomings?

3. If a client has less work in a year, how do you handle dedicated client teams?

4. What industries are you most excited about?

5. How prevalent are client non-competes and how does that impact your ability to grow?

6. The number of customers spending more than $1 million jumped substantially in the second quarter, what did you do right?

7. What has been the impact of the increase in the sales team?

8. How is the company supporting the expansion of the sales teams?

9. Are there more demands on engineering or marketing to support the sales expansion?

10. How has the company prepared for additional volume in terms of client support and satisfaction?

11. Why did the company cutback using fixed cost contracts and how has this impacted the company’s ability to close business and expand?

12. It appears you prefer growth in the U.S. and Europe, as compared to Latin America. Is that accurate and how would that impact my role?

13. The growth of the company is admirable, what lessons

have they learned from scaling to this point?

14. What concerns do they have with their ability to continue to scale?

15. Digital is such a fast growing market – do they feel that they are riding the wave of a great market or truly distinguishing themselves?

16. Why is financial services the smallest of the original four focus markets? Is the company missing any core competencies to compete effectively in this industry?

17. Why was marketing spend flat in 2015? How does that compare to this year? Do they plan to invest more or less in marketing?

18. How is the marketing team viewed within the company?

19. How will the marketing team support the sales team expansion? Are they adding sales enablement to their marketing strategies?

20. The UX Design studio ranked lower in satisfaction and innovation but is one of your most profitable studios. What changes, if any, are planned to improve?

21. What are your goals for services as a platform?

22. What are the causes of the increase in attrition and how has that impacted the workforce and your clients?

23. How likely do you think it is that the company will be acquired?