Globant S.A. (GLOB) has reported a 15.77 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $9.53 million, or $0.27 a share in the quarter, compared with $8.23 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $10.55 million, or $0.30 a share compared with $9.15 million or $0.26 a share, a year ago.
Revenue during the quarter grew 22.70 percent to $82.35 million from $67.12 million in the previous year period. Gross margin for the quarter expanded 296 basis points over the previous year period to 39.68 percent. Total expenses were 85.71 percent of quarterly revenues, down from 91.15 percent for the same period last year. This has led to an improvement of 544 basis points in operating margin to 14.29 percent.
Operating income for the quarter was $11.77 million, compared with $5.94 million in the previous year period.
However, the adjusted operating income for the quarter stood at $12.79 million compared to $6.85 million in the prior year period. At the same time, adjusted operating margin improved 531 basis points in the quarter to 15.53 percent from 10.21 percent in the last year period.
"Third quarter 2016 was another robust quarter for Globant. Our revenues reached a new quarterly record of $82.4 million, with an implied 22.7% year-over-year growth," said Martin Migoya, Globant's chief executive officer and co-founder. "Traditional companies keep on investing heavily in digital transformation projects as they face increased competition from digitally native companies. To address this trend, we continuously work to evolve our Digital Journeys process, based on two pillars: Stay Relevant and Build to Discover. With this approach we are able to create the most innovative experiences and products by simultaneously learning and adapting from consumer and market behaviour. We believe that our positioning as a pure play in digital services gives us the required skillset to successfully partner with organizations facing digital transformation challenges."
For the fourth-quarter 2016, Globant S.A. forecasts revenue to be in the range of $84.50 million to $86.50 million. The company expects diluted earnings per share to be in the range of $0.30 to $0.33.
For fiscal year 2016, Globant S.A. forecasts revenue to be in the range of $320 million to $322 million. The company expects diluted earnings per share to be in the range of $1.12 to $1.15.
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