Globant SA (Glob) Q1 2025 earnings call -highlights: navigate the growth in the middle of the challenges

Q: How quickly can you in your opinion regain demand or spend especially in Latin America, and what measures do you take to repeat the growth there? A: Martin Migoya, CEO, explained that the pipeline is 20% higher than in the previous year, which indicates potential relaxation, especially in Mexico and Brazil. There are already some recovery in Argentina and Chile. The expectation for a stable Q2 with a careful view for the entire year due to macroeconomic uncertainties.

Q: If the business environment deteriorates, do you have measures to protect margins and profitability? A: Juan Urthiague, CFO, explained that measures to protect margins and profitability are already available, including the optimization of use and disciplined price strategies. If further deterioration occurs, additional measures are taken to maintain profitability.

Q: Can you give insights into the deficit under signed contracts and how it is compared last year? A: Juan Urthiague, CFO, mentioned that the visibility of Q2 is high and the instructions reflect the current visibility that is somewhat lower than in previous years. In the second half, a stable environment runs without significant improvement or worsening.

Q: How does the US business appear outside of Latin America and which sectors are most affected? A: Martin Migoya, CEO, found that sectors such as entertainment, high tech and healthcare are affected, while financial services and professional services were more stable. The consumerectors were hit most hardest due to tariffs and macroeconomic uncertainties.

Q: How do you manage your employee base and resource plans for the rest of the year? A: Juan Urthiague, CFO, explained that Globant continues to maintain a diversified delivery in different countries. The focus remains on the prioritization of demand growth areas and at the same time a global provision strategy for a global sales company.

You can find the complete copy of the earnings call in the complete earnings call.

This article first appeared on Gurufocus.