GLOB - Globant: Industry Disruptor Growing Considerably

2024-03-21 03:27:42 ET

Summary

• Globant's revenue has grown at a CAGR of +29%, reflecting an impressive suite of services alongside an aggressive GTM, which has allowed for market share growth.
• We believe GLOB's alternative approach, be it through operating a Venture arm or focusing on LatAm, has allowed the company to differentiate itself and limit competition.
• The Company is an industry leader in AI, which we believe will materially support its growth in the years to come, which we expect to be in the ballpark of ~15-20%.
• GLOB's superior approach is illustrated in its relative performance to peers, with considerably better growth and comparable margins, despite still being in its growth phase.
• Whilst we are bullish on the business, we see a limited margin for error at its current valuation, particularly as double-digit growth is priced into its medium term.

Introduction and thesis

Globant ( GLOB ) is a technology services company headquartered in Luxembourg City, Luxembourg, with operational headquarters in Buenos Aires, Argentina. Founded in 2003, Globant specializes in providing digital transformation and software development services to clients across various industries, including technology, finance, healthcare, and retail....

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