forward looking disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we...

36

Upload: others

Post on 14-Aug-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands
Page 2: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

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

Page 3: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

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.

Globant’s Highlights

3

Page 4: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

● We contributed to the development of EA’s highly successful FIFA franchise.

● A Globant customer for more than 7 years.

Disney

● We helped Disney create their next generation online experience for their parks and resorts.

● A Globant customer for more than 5 years.

● We partnered with Google ATAP in its revolutionary Project ARA

● We are working on the development of a marketplace for Project ARA’s modules and hardware

● A Globant customer for more than 8 years.

Electronics Arts

Google

Innovative Solutions by Globant

4

Page 5: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

These technology revolutions have unlocked new ways for companies to connect with customers

Emerging technologies create a HUGE opportunity

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

The Revolution

5

Page 6: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

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.

Today’s Challenge

6

Page 7: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

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

The Opportunity

Every company in the world…

7

Page 8: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Globant is a digitally native technology services company

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. We deliver value leveraging global talent from development centers in North America, Latin America, and Asia.

8

Page 9: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Engineering focused on emerging technologies, through our unique Studio Model

Our proprietary Agile Pods methodology

Innovation

Design & UX

We create software in a new way.

9

Why Globant Captures this Opportunity?

Page 10: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Why Globant Captures this Opportunity?

Digital agencies are focused on creativity, but lack engineering expertise or the ability to scale.

Traditional IT services providers chiefly focus on 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.

Traditional players lack the DNA to deliver this vision.

10

Page 11: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Companies Pay Attention to These Challenges

Globant’s Addressable Target Market (within marketing budgets)

Fortune 500:

2014 Revenue

$12.5 Trillion

Marketing Budgets

10%: $1.25 Bn

Digital Budgets

25%: ~$300 Bn

Gartner CMO Spend Survey 2015

+5%

+25% Traditional IT

Services Growth

Emerging Technologies Growth

Y0 Y1 Y1 Y0

11

Page 12: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

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 an unlimited talent pool of highly educated IT professionals.

Argentina

Colombia

Uruguay

Brazil

United States

Mexico

India

Chile

Peru

UK

Spain

Global Delivery Model

12

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

Page 13: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Highlights Signed Google

Select Clients Employees

+4,700 August 2015

Revenue Growth ($M)

2013 2014

$129 $158

$200

2012

CAGR: 24,5%

History

2003 Founded

2006

2008 Riverwood Capital and FTV Capital invested

Studios launch 2009

2012 WPP Invested

Listed on NYSE 2014

2015 Follow on

Globant Today

13

Page 14: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Alejandro Scannapieco CFO

PREVIOUS EXPERIENCE Senior Finance Analyst at JPMorgan, CFO at Microsoft South America

Management team

Board of Advisors

Martín Migoya CEO, CO-FOUNDER

PREVIOUS EXPERIENCE Project Coordinator at Repsol-YPF, Consultant at Origin BV Holland. Entrepreneur of the year by Ernst & Young (2013)

Guillermo Marsicoverete COO

PREVIOUS EXPERIENCE Sales VP of United Kingdom & Ireland of Sun Microsystems

Martín Umaran CHIEF OF STAFF, CO-FOUNDER

PREVIOUS EXPERIENCE Former Globant COO and Chief Corporate Business Officer

Guilbert Englebienne CTO, CO-FOUNDER

PREVIOUS EXPERIENCE Researcher at IBM, Head of Technology for CallNow Inc

Guillermo Willi CHIEF PEOPLE OFFICER

PREVIOUS EXPERIENCE Human Resources Director for Microsoft Argentina and Uruguay, Human Resources Director for Pampa Energía

Andrew McLaughlin CEO AT DIGG AND SVP AT BETAWORKS

PREVIOUS EXPERIENCE Deputy CTO of the United States and Director of Global Public Policy for Google

Reid Hoffman PARTNER AT GREYLOCK; EXECUTIVE CHAIRMAN AT LINKEDIN

OTHER EXPERIENCE Board Member of Airbnb, Edmodo, Mozilla, Shopñick, Swipedly and Zynga

Nick Beim PARTNER AT VENROCK

PREVIOUS EXPERIENCE General Partner at Matrix Partners and Associate at Goldman Sachs

Sal Giambanco HUMAN CAPITAL AND OPERATIONS AT OMIDYAR NETWORK

PREVIOUS EXPERIENCE Vice President of Human Resources and Administration for PayPal and eBay

Sir Martin Sorell CEO OF WPP

OTHER EXPERIENCE Non-executive Director of Formula One and Alcoa

Leading This Dream

14

Page 15: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Our secret sauce

HOW WE DO IT

Page 16: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

They are a combination of smart, relevant and appropriate

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

Digital journeys are not just

flashy mobile or web apps.

16

Page 17: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Different UI Different media

Decentralized decisions Different data sources

Leading Company in M&E Industry

One success case: What they had

Staff Offline Stores Restaurants Hotels ERP

17

Page 18: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

big data

fast data

Leading Company in M&E Industry

Real time Suggestions

Valid references Recommendations

What we created

Digital Journey Platform

Staff Offline Stores Restaurants Hotels ERP

18

Page 19: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Telcos Healthcare Banking Retail Travel

In Today’s World

Every Industry is Facing this shift

19

Page 20: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

How We Deliver This Vision

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

Stay Relevant

Explore & Discover

Build

1

2 3

20

Page 21: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

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.

1 - Stay Relevant

Sentinel Report Books Whitepapers Researches

Webinars Conferences Customer Visits

21

Page 22: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

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.

2 - Explore & Discover

Digital Journey Playground

Innovation as a Service

22

Page 23: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Once the Digital Journey is defined, we develop and build the experience by leveraging 3 key pillars:

3 - Build

12 Studios Agile Pods Methodology

Services Over Platforms Strategy

23

Page 24: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Our Studios: Deep Pockets of Expertise

24

Page 25: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

PRODUCTIVITY =

Our Agile Pods

Multidisciplinary Teams

. 3 discrete levels of productivity

. Contracted and defined variables

. Incentives aligned to create true partnership

. Multiple pods at large clients

. Some of our largest clients have embraced the model

- Higher growth

- Lower attrition

Pod Metrics Agile Pods methodology

Globant rate

Customer Total Cost of Ownership

Productivity

$

Speed, Quality, Innovation, Autonomy

25

Page 26: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Services over Platforms Strategy

Services over Platforms Strategy

Mobile Product Engine Smart Digital Journey Engine Employee Journey Platform

Digital Journey Delivery Platform

26

Page 27: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Smart Digital Journey Engine

Store Mobile App Website Wearable Device Ecommerce

big data

fast data

Services over Platforms

Consumer experience Cognitive

computing

Creating a Digital Journey

27

Page 28: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Financial Review

Page 29: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

129.0

158.0

199.6

144.5

182.2

2012 2013 2014 9M'14 9M'15

Revenue ($M)

4.1 4.6

6.1 5.8

6.2

8.8

2012 2013 2014

Average Revenue by Client ($M)

TOP 20 TOP 10

32

41

46

2012 2013 2014

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

2012 2013 2014 9M’15

Top 1 Client 9 6 9 12

Top 5 Clients 28 25 28 33

Top 10 Clients 45 40 44 47

29 Globant Proprietary | Confidential Information

Significant Revenue Growth

Page 30: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Geography Currency

Industry Contract Type

84%

11%

5%

North America

Latam and Others

Europe

95%

1% 4%

USD

Others

GBP

24%

21%

15%

14%

13%

14%

M&E

T&T

Proff. Svcs

Travel

BFS&I

Others

95%

5%

T&M (includes Agile Pods)

Fixed Price

30

Revenue Breakdown (9M’15)

Page 31: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Up to 5 Majority

1 2 3

Up to 3

31

Typical Customer Engagement

Page 32: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

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

55

62

82

60

71

2012 2013 2014 9M'14 9M'15

Adj. Gross Profit margin % 42.6% 39.2% 41.0% 41.4% 38.8%

10

15

26

18

25

2012 2013 2014 9M'14 9M'15

Adj. Net Income margin % 8.1% 9.2% 13.0% 12.3% 13.9%

Adjusted Gross Profit Margin excludes depreciation and amortization and share-based compensation

Adjusted Net Income excludes share-based compensation and M&A Expenses

32 Globant Proprietary | Confidential Information

Attractive Profitability

Page 33: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

5%

86%

9%

US

LatAm

India95%

5%

USD

Others

Yearly Revenue per IT Professional ($K)

Revenues in Hard Currencies with Costs in Local Currencies

SG&A (% of revenues, excluding D&A)

60 60

63 63

2012 2013 2014 LTM

29.3%

31.8%

26.2% 25.7%

2012 2013 2014 9M'15

Revenues 9M’15: $182M Headcount distribution - Sep’15

33

Operating Levers

Page 34: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Dec’12 Dec’13 Dec’14 Sept’15

Cash and Investments 9 27 62 74

Current Assets 44 67 116 139

Total Assets 81 112 159 209

Financial Debt 12 12 1 1

Total Liabilities 38 52 35 53

Equity 43 60 125 156 Capex (% of revenues)

Current Ratio Balance Sheet Summary

5.7% 4.6%

6.9%

2012 2013 2014

1.3

1.8

3.7 3.3

Dec'12 Dec'13 Dec'14 Sept'15

34

Strong Balance Sheet

Page 35: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

• Top 20 accounts have dedicated client teams • Every client has an assigned client partner • More than 400 Globers have revenue and margin quotas • Studio cross-selling

• Highly professional sales team • Key sales offices (Boston, London, New York, San Francisco, Pune, Sao Paulo, Bogota, Mexico DF and Buenos Aires) • Thought leader recognition through Hackathons, Roadshows, Conferences and Referrals • Leverage WPP relationship

• Geography • Capabilities • Verticals • Customers

• Terraforum • Clarice • Nextive • Huddle • Accendra • Openware

35 Globant Proprietary | Confidential Information

Our Growth Strategy

Page 36: Forward Looking Disclosurefilecache.investorroom.com/mr5ir_globant/113...manage the companies we acquire and that our acquisitions will yield the benefits we envision; the demands

Thanks!