Specialist
Former director at Globant
Agenda
- Globant's (NYSE: GLOB) overall operating environment, including demand trends and pricing pressure
- Competitive dynamics between Globant and peers such as Endava (NYSE: DAVA), Capgemini (PAR: CAP), Epam Systems (NYSE: EPAM), Accenture (NYSE: ACN) and others
- IT spend trends, international market penetration, M&A strategy and product portfolio strengths and weaknesses
- Outlook for Q1 2022 and beyond, including Globant’s management and strategy
Questions
1.
What’s your overview of Globant’s operating environment? What key trends or drivers are particularly relevant to the company and the broader digital transformation market?
2.
Across the key trends, are any themes currently impacting industry demand? What is your 12-18-month outlook for market demand and Globant’s services?
3.
How has the Great Resignation and high rates of voluntary attrition affected Globant’s margins? I think attrition for the past 12 months was around 18.4%, slightly up on management’s target between 15% and 17.5%.
4.
Should we expect any pricing pressure because of the higher-than-expected attrition?
5.
Is Globant capable of competing for talent by geography? LATAM presence makes up about 25% of the company’s revenue. Does the company compete for talent differently vs Endava or other regional names?
6.
What is Globant's overall position within the broader competitive landscape?
7.
Why do you think APAC growth hasn’t taken off, as was potentially expected by some of these competitors?
8.
Which players might be better poised to enter APAC or China? Are any already there but potentially struggling to make headway?
9.
How much does pricing factor into major players' customer acquisition strategies? How do Globant, Epam and Endava differ or compete with each other on pricing?
10.
Globant’s revenue after Q3 2021 was USD 342m, guidance suggests it could be over USD 1bn by the end of 2021. Do you think this overall revenue growth is sustainable in the short-to-mid-term?
11.
Do you think Globant’s recent Atix and Navint acquisitions were driven primarily to increase headcount?
12.
Can and should Globant diversify its customer base, especially as Disney alone contributed 11% of overall revenue in 2020?
13.
Why do you think moving into no-code or low-code applications could be a challenge for Globant?
14.
How much opportunity is there to upsell Globant’s existing customer base heading out of 2021? What barriers to new logo growth could be overcome to pursue that?
15.
What’s your overview of Globant’s product portfolio and respective strengths or weaknesses?
16.
Does Globant’s products not being verticalised hurt its ability to form strategic partnerships? Do you think the business would benefit from specific arms for retail or e-commerce? Does this approach differ vs peers such as Endava?
17.
How sticky are Globant’s solutions, products and services once it is integrated with customers? Is customer churn fairly minimal?
18.
Which business areas might enable Globant to pursue incremental cost inefficiencies? Is anything driving current inefficiencies, whether in the sales team or other areas?
19.
What are your thoughts on Globant’s management and strategy? What would you do differently, whether past, present or future?
20.
What’s your 3-5-year industry outlook? Who could be medium- or long-term winners and losers?
21.
Which specific players are ahead of the curve in creating an end-to-end solution? Do any have a leading edge?
22.
Is there anything to add or reiterate about Globant or its market?
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