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Globant S.A.

Globant S.A.GLOB決算レポート

NYSE · software development

Globant is an IT and software development company operating internationally. It was formed in 2003 by Martín Migoya, Guibert Englebienne, Martín Umaran and Néstor Nocetti. It was founded in Buenos Aires, but later headquartered in Luxembourg. Its principal clients are in the United States and United Kingdom.

What changed in Globant S.A.'s 20-F — 2022 vs 2023

Top changes in Globant S.A.'s 2023 20-F

618 paragraphs added · 742 removed · 424 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

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ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 4 ITEM 3. KEY INFORMATION 4 A. [Reserved] 4 B. Capitalization and Indebtedness 4 C. Reasons for the Offer and Use of Proceeds 4 D. Risk Factors 4 ITEM 4. INFORMATION ON THE COMPANY 23 A. History and Development of the Company 23 B. Business Overview 24 C. Organizational Structure 63 D.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 3 ITEM 3. KEY INFORMATION 3 A. [Reserved] 3 B. Capitalization and Indebtedness 3 C. Reasons for the Offer and Use of Proceeds 3 D. Risk Factors 3 ITEM 4. INFORMATION ON THE COMPANY 24 A. History and Development of the Company 24 B. Business Overview 26 C. Organizational Structure 51 D.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Our business plan is based on hiring and training a significant number of additional technology professionals each year in order to meet anticipated turnover and increased staffing needs. Our ability to properly staff projects, to maintain and renew existing engagements and to win new business depends, in large part, on our ability to hire and retain qualified IT professionals.
Our business plan is based on hiring and training a significant number of additional technology professionals each year in order to meet anticipated turnover and increased staffing needs. Our ability to properly staff projects, maintain and renew existing engagements and win new business depends, in large part, on our ability to hire and retain qualified IT professionals.
Unexpected increases in salaries and other operating costs beyond our forecasts, which we are not able to carry-forward to our clients, or any failure by us to accurately estimate the costs of our hourly services, or to estimate the resources and time required to complete a fixed-price contract on time and on budget, or any failure to complete the project or meet our client's expectations, or any unforeseen changes in the project's scope, among others, could make our contracts unprofitable, thereby adversely affecting our results of operations, financial condition and cash flows from operations.
Unexpected increases in salaries and other operating costs beyond our forecasts, which we are not able to carry-forward to our clients, or any failure by us to accurately estimate the costs of our hourly services, the resources and time required to complete a fixed-price contract on time and on budget, any failure to complete the project or meet our client's expectations, or any unforeseen changes in the project's scope, among others, could make our contracts unprofitable, thereby adversely affecting our results of operations, financial condition and cash flows from operations.
Our processes and controls for reporting ESG matters across our operations and supply chain are evolving along with multiple disparate standards for identifying, measuring, and reporting ESG metrics, including ESG-related disclosures that may be required by the SEC, European and other regulators, and such standards may change over time, which could result in significant revisions to our current goals, reported progress in achieving such goals, or ability to achieve such goals in the future.
Our processes and controls for reporting ESG matters across our operations and supply chain are evolving along with multiple disparate standards for identifying, measuring, and reporting ESG metrics, including ESG-related disclosures that may be required by the SEC, European regulators and other regulators, and such standards may change over time, which could result in significant revisions to our current goals, reported progress in achieving such goals, or ability to achieve such goals in the future.
Since we provide services to clients throughout the world, and we collect, store, process, use and transfer personal data and other sensitive information, we are subject to laws and regulations related to security and privacy, as well as other numerous, and sometimes conflicting, legal requirements, including but not limited to the European Union’s General Data Protection Regulation (“GDPR”), the United Kingdom’s GDPR and the Privacy and Electronic Communications Directive 2002/58/EC, the California Consumer Privacy Act (as succeeded by the California Privacy Rights Act), and various other laws governing the protection of privacy, health or other personally identifiable information and data privacy and cybersecurity laws.
Since we provide services to clients throughout the world, and we collect, store, process, use and transfer personal data and other sensitive information, we are subject to laws and regulations related to data security and privacy, as well as other numerous, and sometimes conflicting, legal requirements, including but not limited to the European Union’s General Data Protection Regulation (“GDPR”), the United Kingdom’s GDPR and the Privacy and Electronic Communications Directive 2002/58/EC, the California Consumer Privacy Act (as succeeded by the California Privacy Rights Act), and various other laws governing the protection of privacy, health or other personally identifiable information and data privacy and cybersecurity laws.
We may, from time to time, be subject to litigation or administrative actions resulting from claims against us by current or former Globers, individually or as part of class actions, including claims of wrongful termination, discrimination, misclassification or other violations of labor law or other alleged conduct.
We may, from time to time, be subject to litigation or administrative actions resulting from claims against us by current or former Globers, individually or as part of class actions, including claims of wrongful termination, discrimination, misclassification or other alleged violations of labor law or other conduct.
The technology services industry is also undergoing consolidation, which may result in increased competition in our target markets in the United States and Europe from larger firms that may have substantially greater financial, marketing or technical resources, may be able to respond more quickly to new technologies or processes and changes in client demands, and may be able to devote greater resources to the development, promotion and sale of their services than we can.
The technology services industry is also undergoing consolidation, which may result in increased competition in our largest target markets in the United States and Europe from larger firms that may have substantially greater financial, marketing or technical resources, may be able to respond more quickly to new technologies or processes and changes in client demands, and may be able to devote greater resources to the development, promotion and sale of their services than we can.
Increased competition could also result in price reductions, reduced operating margins and loss of our market share. We cannot assure you that we will 8 be able to compete successfully with existing or new competitors or that competitive pressures will not materially adversely affect our business, results of operations and financial condition.
Increased competition could also result in price reductions, reduced operating margins and loss of our market share. We cannot assure you that we will be able to compete successfully with existing or new competitors or that competitive pressures will not materially adversely affect our business, results of operations and financial condition.
As a result, we cannot assure you that we would be successful in defending against any claim by our current or former Globers or independent contractors that 12 challenges our exclusive rights over the use and transfer of works those Globers or independent contractors created or requests additional compensation for such works.
As a result, we cannot assure you that we would be successful in defending against any claim by our current or former Globers or independent contractors that challenges our exclusive rights over the use and transfer of works those Globers or independent contractors created or requests additional compensation for such works.
As a result, our shareholders may not have access to information they may deem important, which may result in our common shares being less attractive to investors. 20 We do not plan to declare dividends, and our ability to do so will be affected by restrictions under Luxembourg law.
As a result, our shareholders may not have access to information they may deem important, which may result in our common shares being less attractive to investors. We do not plan to declare dividends, and our ability to do so will be affected by restrictions under Luxembourg law.
These restrictions may hamper our ability to compete for and provide services to other clients in a specific industry in which we have expertise and could materially adversely affect our business, financial condition and results of operations. 14 Risks Related to our Global Operations.
These restrictions may hamper our ability to compete for and provide services to other clients in a specific industry in which we have expertise and could materially adversely affect our business, financial condition and results of operations. Risks Related to our Global Operations.
In addition, a failure or inability to meet a contractual requirement could seriously damage our corporate reputation and limit our ability to attract new business. The services we provide and the software solutions we develop are often critical to our clients' businesses.
In addition, a failure or inability to meet a contractual requirement could seriously damage our corporate reputation and limit our ability to attract new business. 10 The services we provide and the software solutions we develop are often critical to our clients' businesses.
Any change in our pricing terms would increase our costs and expenses, which would have an adverse effect on our results of operations. Strategic acquisitions to complement and expand our business have been and will likely remain an important part of our competitive strategy.
Any change in our pricing terms would increase our costs and expenses, which would have an adverse effect on our results of operations. 13 Strategic acquisitions to complement and expand our business have been and will likely remain an important part of our competitive strategy.
In addition, our failure to comply with these regulations in the context of our obligations to our clients could also result in liability for monetary damages, unfavorable publicity and allegations by our clients that we have 18 not performed our contractual obligations.
In addition, our failure to comply with these regulations in the context of our obligations to our clients could also result in liability for monetary damages, unfavorable publicity and allegations by our clients that we have not performed our contractual obligations.
If any dispute arises between any members of our senior management team or key employees and us, any non-competition, non-solicitation and nondisclosure agreements we have with our founders, senior executives or key employees might not provide effective protection to us in light of legal uncertainties associated with the enforceability of such agreements. 7 If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive, which could cause our revenues and results of operations to suffer.
If any dispute arises between any members of our senior management team or key employees and us, any non-competition, non-solicitation and nondisclosure agreements we have with our founders, senior executives or key employees might not provide effective protection to us in light of legal uncertainties associated with the enforceability of such agreements. 6 If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive, which could cause our revenues and results of operations to suffer.
There can be no assurance that we will 13 be able to identify, acquire or profitably manage additional businesses or successfully integrate any acquired businesses without substantial expense, delays or other operational or financial risks and problems.
There can be no assurance that we will be able to identify, acquire or profitably manage additional businesses or successfully integrate any acquired businesses without substantial expense, delays or other operational or financial risks and problems.
Disruptions in telecommunications, system failures, Internet infrastructure, computer virus attacks or other operational disruptions caused by factors outside of our control, such as hostilities, political unrest, terrorist attacks, natural disasters, and public health emergencies could adversely impact our ability to deliver services to our clients, which could result in client dissatisfaction, harm to our reputation, and a loss of business and related reduction of our revenues.
Disruptions in telecommunications, system failures, internet infrastructure, computer virus attacks or other operational disruptions caused by factors outside of our control, such as hostilities, political unrest, terrorist attacks, natural disasters, and public health emergencies (including pandemics) could adversely impact our ability to deliver services to our clients, which could result in client dissatisfaction, harm to our reputation, and a loss of business and related reduction of our revenues.
During the years ended December 31, 2022, 2021 and 2020, our Argentine, Colombian, Chilean, Indian, Uruguayan, Peruvian, Brazilian, Mexican, European Community Countries and United Kingdom operating subsidiaries entered into foreign exchange contracts for the purpose of hedging the risk of exposure to fluctuations of the different currencies in these countries against the U.S. dollar.
During the years ended December 31, 2023, 2022 and 2021, our Argentine, Colombian, Chilean, Indian, Uruguayan, Peruvian, Brazilian, Mexican, European Community Countries and United Kingdom operating subsidiaries entered into foreign exchange contracts for the purpose of hedging the risk of exposure to fluctuations of the different currencies in these countries against the U.S. dollar.
We compete for talented individuals, not only with other companies in our industry, but also with companies in other industries, such as software services, engineering services and financial services companies, among others, and there is a limited pool of individuals who have the skills and training needed to help us grow our company.
We compete for talented individuals, not only with other companies in our industry, but also with companies in other industries, such as software services, engineering services and financial services companies, among others, and there is a limited pool of individuals who have the skills and training necessary to help us grow our company.
In addition, as we expand into new markets and expand our service offerings, we may face new risks and challenges with which we may not be familiar and which we may not be able to mitigate. 6 Effective management of these and other growth initiatives will require us to continue to improve our infrastructure, execution standards and ability to expand services.
In addition, as we expand into new markets and expand our service offerings, we may face new risks and challenges with which we may not be familiar and which we may not be able to mitigate. 5 Effective management of these and other growth initiatives will require us to continue to improve our infrastructure, execution standards and ability to expand services.
Because we have valued goodwill based on the market value of our equity for purposes of taxation, a decrease in the price of our common shares may also result in us becoming a PFIC. The composition of our income and our assets will also be affected by how, and how quickly, we spend the cash.
Because we have valued goodwill based on the market value of our equity for purposes of taxation, a decrease in the price of our common shares may also result in us becoming a PFIC. The composition of our income and our assets will also be affected by how, and how quickly, we utilize the cash.
Insolvency laws in Luxembourg or the relevant other European country, if any, may offer our shareholders less protection than they would have under U.S. insolvency laws and make it more difficult for them to recover the amount they could expect to recover in a liquidation under U.S. insolvency laws. 22
Insolvency laws in Luxembourg or the relevant other European country, if any, may offer our shareholders less protection than they would have under U.S. insolvency laws and make it more difficult for them to recover the amount they could expect to recover in a liquidation under U.S. insolvency laws. 23
If these tax incentives are changed, terminated, not extended or made unavailable, or comparable new tax incentives are not introduced, we expect that our effective income tax rate and/or our operating expenses would increase significantly, which could materially adversely affect our financial condition and results of operations.
If these tax incentives are changed, terminated, not extended or made unavailable, or comparable new tax incentives are not introduced, we expect that our effective income tax rate and/or our operating expenses would increase significantly, which could materially adversely affect our financial condition and results of operation.
As a public company, we are required to document and test our internal control over financial reporting pursuant to Section 404, which requires management assessments and certifications of the effectiveness of our internal control over financial reporting. We have concluded that our internal control over financial reporting is effective as of December 31, 2022 (see Item15.
As a public company, we are required to document and test our internal control over financial reporting pursuant to Section 404, which requires management assessments and certifications of the effectiveness of our internal control over financial reporting. We have concluded that our internal control over financial reporting is effective as of December 31, 2023 (see Item15.
The Third A&R Credit Agreement also contains certain customary negative and affirmative covenants, which compliance may limit our flexibility in operating our business and our ability to take actions that might be advantageous to us and our shareholders.
The Fourth A&R Credit Agreement also contains certain customary negative and affirmative covenants, which compliance may limit our flexibility in operating our business and our ability to take actions that might be advantageous to us and our shareholders.
We have expanded, and may continue to expand, our operations through strategically targeted acquisitions focused on deepening our relationships with key clients, extending our technological capacities including services over platforms, broadening our service offering and expanding the geographic footprint of our delivery centers. We completed a number of tuck-in acquisitions in 2020, 2021 and 2022.
We have expanded, and may continue to expand, our operations through strategically targeted acquisitions focused on deepening our relationships with key clients, extending our technological capacities including services over platforms, broadening our service offering and expanding the geographic footprint of our delivery centers. We completed a number of acquisitions in 2021, 2022 and 2023.
If the U.S., Latin American, or European economies weaken or slow, inflation in the markets in which we operate, or a negative or uncertain political climate develops or persists, pricing for our services may be depressed and our clients may reduce or postpone their technology spending significantly, which may, in turn, lower the demand for our services and negatively affect our revenues and profitability.
If the North American, Latin American, or European economies weaken or slow, inflation in the markets in which we operate, or a negative or uncertain political climate develops or persists, pricing for our services may be depressed and our clients may reduce or postpone their technology spending significantly, which may, in turn, lower the demand for our services and negatively affect our revenues and profitability.
Our future inability to obtain or renew sufficient work permits and/or visas due to the impact of these regulations, including any changes to immigration, work permit and visa regulations in jurisdictions such as the United States and Europe, could have a material adverse effect on our business, results of operations and financial condition.
Our future inability to comply with any of these laws or regulations or to obtain or renew sufficient work permits and/or visas due to the impact of these regulations, including any changes to immigration, work permit and visa regulations in jurisdictions such as the United States and Europe, could have a material adverse effect on our business, results of operations and financial condition.
Our utilization rates are affected by a number of factors, including: • our ability to transition Globers from completed projects to new assignments and to hire and integrate new employees; • our ability to forecast demand for our services and thereby maintain an appropriate headcount in each of our talent delivery centers; • our ability to manage the attrition of our IT professionals; and • our need to devote time and resources to training, professional development and other activities that cannot be billed to our clients.
Our utilization rates are affected by a number of factors, including: • our ability to transition Globers from completed projects to new assignments and to hire and integrate new employees; • our ability to forecast demand for our services and thereby maintain an appropriate headcount in each of our talent delivery centers; • our ability to manage the attrition of our IT professionals; • our need to devote time and resources to training, professional development and other activities that cannot be billed to our clients; and • our ability to win new engagements from credit worthy clients.
The Borrower’s obligations under the Third A&R Credit Agreement are guaranteed by the Company and its subsidiaries Globant España S.A. and Globant IT Services Corp., and are secured by substantially all of the Borrower’s assets.
The Borrower’s obligations under the Fourth A&R Credit Agreement are guaranteed by the Company and its subsidiaries Globant España S.A. and Globant IT Services Corp., and are secured by substantially all of the Borrower’s assets.
The following factors could result in harm to our business, reputation, revenue, financial results and prospects, among other impacts: Risks Related to Our Business and Industry • If we are unable to maintain the current resource utilization rates and productivity levels, our revenues, profit margins and results of operations may be adversely affected. • If we are unable to manage attrition and attract and retain highly-skilled IT professionals, our operating efficiency and productivity may decrease, and we may not have the necessary resources to maintain client relationships and expand our business. • If we are unable to achieve anticipated growth, our revenues, results of operations, business and prospects may be adversely affected. • If we are unable to effectively manage the rapid growth of our business, our management personnel, systems and resources could face significant strains, which could adversely affect our results of operations. • If the pricing structures we use for our client contracts are based on inaccurate expectations and assumptions regarding the cost and complexity of performing our work, our contracts could be unprofitable, which could adversely affect our results of operations, financial condition and cash flows from operations. • If we were to lose the services of our senior management team or other key employees, our business operations, competitive position, client relationships, revenues and results of operations may be adversely affected. • If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive, which could cause our revenues and results of operations to suffer. • If any of our largest clients terminates, decreases the scope of, or fails to renew its business relationship or short-term contract with us, our revenues, business and results of operations may be adversely affected. • We face intense competition from technology and IT services providers, and an increase in competition, our inability to compete successfully, pricing pressures or loss of market share could materially adversely affect our revenues, results of operations and financial condition. • Our business depends on a strong brand and corporate reputation, and if we are not able to maintain and enhance our brand, our ability to expand our client base will be impaired and our business and operating results will be adversely affected. 4 • Our labor costs and the operating restrictions that apply to us could increase as a result of collective bargaining negotiations and changes in labor laws and regulations, and disputes resulting in work stoppages, strikes, or disruptions could adversely affect our business. • Our aspirations and disclosures related to environmental, social and governance (“ESG”) matters expose us to risks that could adversely affect our reputation and performance.
The following factors could result in harm to our business, reputation, revenue, financial results and prospects, among other impacts: Risks Related to Our Business and Industry • If we are unable to maintain the current resource utilization rates and productivity levels, our revenues, profit margins and results of operations may be adversely affected. • If we are unable to manage attrition and attract and retain highly-skilled IT professionals, our operating efficiency and productivity may decrease, and we may not have the necessary resources to maintain client relationships and expand our business. • If we are unable to achieve anticipated growth, our revenues, results of operations, business and prospects may be adversely affected. • If we are unable to effectively manage the rapid growth of our business, our management personnel, systems and resources could face significant strains, which could adversely affect our results of operations. • If the pricing structures we use for our client contracts are based on inaccurate expectations and assumptions regarding the cost and complexity of performing our work, our contracts could be unprofitable, which could adversely affect our results of operations, financial condition and cash flows from operations. • If we were to lose the services of our senior management team or other key employees, our business operations, competitive position, client relationships, revenues and results of operations may be adversely affected. • If we do not continue to innovate and remain at the forefront of emerging technologies and related market trends, we may lose clients and not remain competitive, which could cause our revenues and results of operations to suffer. • If any of our largest clients terminates, decreases the scope of, or fails to renew its business relationship or short-term contract with us, our revenues, business and results of operations may be adversely affected. • We are subject to numerous risks associated with the evolving market for products with AI capabilities. • We face intense competition from technology and IT services providers, and an increase in competition, our inability to compete successfully, pricing pressures or loss of market share could materially adversely affect our revenues, results of operations and financial condition. • Our business depends on a strong brand and corporate reputation, and if we are not able to maintain and enhance our brand, our ability to expand our client base will be impaired and our business and operating results will be adversely affected. 3 • Our labor costs and the operating restrictions that apply to us could increase as a result of collective bargaining negotiations and changes in labor laws and regulations, and disputes resulting in work stoppages, strikes, or disruptions could adversely affect our business. • Our aspirations and disclosures related to environmental, social and governance (“ESG”) matters expose us to risks that could adversely affect our reputation and performance. • Regulations and stakeholder expectations relating to ESG matters may impose additional costs and expose us to new risks.
Compliance with complex international laws and regulations that apply to our international operations increases our cost of doing business. These numerous, and sometimes conflicting laws, and regulations include, among others, import/export controls, content requirements, trade restrictions, tariffs, taxation, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act ("FCPA"), whistle blowing, internal control and disclosure rules.
Compliance with complex international laws and regulations that apply to our international operations increases our cost of doing business. These numerous, and sometimes conflicting laws, and regulations include, among others, import/export controls, content requirements, trade restrictions, tariffs, taxation, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act ("FCPA"), the U.K.
We also undertake engagements on a fixed-price basis, which require the estimation of the associated costs to complete the project. Revenues from our fixed-price contracts represented 15.4%, 16.9% and 13.1% of our total revenues for the years ended December 31, 2022, 2021 and 2020, respectively.
We also undertake engagements on a fixed-price basis, which require the estimation of the associated costs to complete the project. Revenues from our fixed-price contracts represented 18.3%, 15.4% and 16.9% of our total revenues for the years ended December 31, 2023, 2022 and 2021, respectively.
We have established and publicly announced ESG goals, including our commitments to address climate change, digital inclusion, and diversity, equity and inclusion. These statements reflect our current plans and aspirations and are not guarantees that we will be able to achieve them.
We have established and publicly announced in our annual Integrated Report, our ESG goals, including our commitments to address climate change, human rights, social and digital inclusion, diversity and equity. These statements reflect our current plans and aspirations and are not guarantees that we will be able to achieve them.
As of December 31, 2022, approximately 8.5% of our Globers are covered by Collective Bargaining Agreements ("CBAs"), including all Globers from our Brazilian, French and Spanish subsidiaries, as well as some Globers from our Argentinean subsidiaries. For complete details of the covered employees see " Directors, Senior Management and Employees — Employees ".
As of December 31, 2023, approximately 4% of our Globers are covered by Collective Bargaining Agreements ("CBAs"), including Globers from our Brazilian, French, Spanish and Italian subsidiaries, as well as some Globers from our Argentinean subsidiaries. For complete details of the covered employees see " Directors, Senior Management and Employees — Employees ".
During the years ended December 31, 2022, 2021 and 2020, our largest customer based on revenues, The Walt Disney Company, accounted for 10.7%, 10.9% and 11.0% of our revenues, respectively. During the years ended December 31, 2022, 2021 and 2020, our ten largest clients accounted for 35.6%, 39.1% and 42.2% of our revenues, respectively.
During the years ended December 31, 2023, 2022 and 2021, our largest customer based on revenues, The Walt Disney Company, accounted for 8.7%, 10.7% and 10.9% of our revenues, respectively. During the years ended December 31, 2023, 2022 and 2021, our ten largest clients accounted for 32.0%, 35.6% and 39.1% of our revenues, respectively.
To date this incident has not had a material impact on our operations, and we are unaware of any material impact on our client's operations; however, we cannot assure you that our preventative and mitigation actions with respect to this incident and other potential future events like it will fully eliminate the risk of a malicious compromise of our, our third-party service providers' or our customers' systems.
To date this incident has not had a material impact on our operations, and we are unaware of any material impact on our client's operations. We cannot assure you that our preventative and mitigation actions will fully eliminate the risk of a malicious compromise of our, our third-party service providers' or our customers' systems.
Additionally, our decentralized staffing and the increasing number of employees that are deployed onsite at our clients or near client locations in Latin America, the United States, Europe and India have placed additional operational and structural demands on our resources.
Additionally, our decentralized staffing and the increasing number of employees that are deployed onsite at our clients or near client locations have placed additional operational and structural demands on our resources.
In addition, there are relatively few barriers to entry into our markets and we have faced, and expect to continue to face, competition from new technology services providers. Further, there is a risk that our clients may elect to increase their internal resources to satisfy their services needs as opposed to relying on a third-party vendor, such as our company.
In addition, we expect to continue to face, competition from new technology services providers. Further, there is a risk that our clients may elect to increase their internal resources to satisfy their services needs as opposed to relying on a third-party vendor, such as our company.
If we are faced with immigration or work permit restrictions in any country where we currently have personnel onsite at a client location or would like to expand our delivery footprint, then our business, results of operations and financial condition may be adversely affected.
Our failure to comply with applicable regulatory requirements could have a material adverse effect on our business, results of operations and financial condition. 18 If we are faced with immigration or work permit restrictions in any country where we currently have personnel onsite at a client location or would like to expand our delivery footprint, then our business, results of operations and financial condition may be adversely affected.
We are organized under the laws of the Grand Duchy of Luxembourg. The majority of our assets are located outside the United States. Furthermore, the majority of our directors and officers and some experts named in this annual report reside outside the United States and a substantial portion of their assets are located outside the United States.
The majority of our assets are located outside the United States. Furthermore, the majority of our directors and officers and some experts named in this annual report reside outside the United States and a substantial portion of their assets are located outside the United States.
This authorization is valid from the date of the extraordinary general meeting of shareholders, which was held on April 22, 2022, and ends on April 22, 2027, the fifth anniversary of the date of such meeting.
This authorization is valid from the date of the extraordinary general meeting of shareholders, which was held on April 19, 2023, and ends on April 19, 2028, the fifth anniversary of the date of such meeting.
Federal Income Tax Considerations — Passive foreign investment company rules." Our business and results of operations may be adversely affected by the increased strain on our resources from complying with the reporting, disclosure, and other requirements applicable to public companies in the United States. 19 Compliance with existing, new and changing corporate governance and public disclosure requirements adds uncertainty to our compliance policies and increases our costs of compliance.
Federal Income Tax Considerations — Passive foreign investment company rules." 19 Our business and results of operations may be adversely affected by the increased strain on our resources from complying with the reporting, disclosure, and other requirements applicable to public companies in the United States.
During the years ended December 31, 2022, 2021 and 2020, an aggregate of 41.3%, 44.8% and 46.8% of our total revenues were generated from clients in the media, entertainment and financial industries.
During the years ended December 31, 2023, 2022 and 2021, an aggregate of 40.1%, 41.3% and 44.8% of our total revenues were generated from clients in the media and entertainment, and banks, financial services and insurance industries.
We may in the future enter into additional agreements with clients that restrict our ability to accept assignments from, or render similar services to, those clients' competitors or customers, or restrict our ability to compete with our clients.
Some of our services agreements restrict our ability to perform similar services for certain of our clients' competitors under specific circumstances. We may in the future enter into additional agreements with clients that restrict our ability to accept assignments from, or render similar services to, those clients' competitors or customers, or restrict our ability to compete with our clients.
Many of our client contracts do not limit our potential liability for breaches of confidentiality. 11 In the past, we have experienced, and in the future, we may again experience, data security incidents resulting from unauthorized access to our and our service providers’ systems and unauthorized acquisition of our data and our clients’ data including, but not limited to: inadvertent disclosure, misconfiguration of systems, phishing ransomware or malware attacks.
In the past, we have experienced, and in the future, we may again experience, data security incidents resulting from unauthorized access to our and our service providers’ systems and unauthorized acquisition of our data and our clients’ data including, but not limited to: inadvertent disclosure, misconfiguration of systems, phishing ransomware or malware attacks.
Our ability to obtain additional capital on acceptable terms is subject to a variety of uncertainties, including: • investors' perception of, and demand for, securities of technology services companies; • conditions of the U.S. capital markets and other capital markets in which we may seek to raise funds; • our future results of operations and financial condition; • government regulation of foreign investment in the United States, Europe, and Latin America; and global economic, political and other conditions in jurisdictions in which we do business.
Our ability to obtain additional capital on acceptable terms is subject to a variety of uncertainties, including: • investors' perception of, and demand for, securities of technology services companies; • conditions of the U.S. capital markets and other capital markets in which we may seek to raise funds; • our future results of operations and financial condition; • government regulation of foreign investment in the North America, Europe, and Latin America; • global economic, political and other conditions in jurisdictions in which we do business; and • favorability of our credit-rating. 14 Financing or raising of capital may not be available in amounts or on terms acceptable to us, or at all.
Inflation is also likely to increase some of our costs and expenses, which we may not be able to fully pass on to our clients, which could adversely affect our operating margins and operating income.
Periods of higher inflation may slow economic growth and significantly impact our results of operations. Inflation is also likely to increase some of our costs and expenses, which we may not be able to fully pass on to our clients, which could adversely affect our operating margins and operating income.
In addition, our independent registered public accounting firm may be unable to provide us with an unqualified report as required by Section 404, or we may be required to restate our financial statements for errors resulting from material weaknesses in our internal controls over financial reporting, and we may fail to meet our public reporting obligations and investors could lose confidence in our reported financial information, which could have a negative effect on the trading price of our common shares.
In addition, our independent registered public accounting firm may be unable to provide us with an unqualified report as required by Section 404, or we may be required to restate our financial statements for errors resulting from material weaknesses in our internal controls over financial reporting, and we may fail to meet our public reporting obligations and investors could lose confidence in our reported financial information, which could have a negative effect on the trading price of our common shares. 20 Our exemption as a "foreign private issuer" from certain rules under the U.S. securities laws may result in less information about us being available to investors than for U.S. companies, which may result in our common shares being less attractive to investors.
We further cannot assure you that we will be able to detect unauthorized use of our intellectual property and take appropriate steps to enforce our rights, and that any such steps will be successful or that we have taken all necessary steps to enforce our intellectual property rights in every jurisdiction in which we operate and that such intellectual property laws are adequate to protect our interest.
We further cannot assure you that we will be able to detect unauthorized use of our intellectual property and take appropriate steps to enforce our rights, and that any such steps will be successful or that we have taken all necessary steps to enforce our intellectual property rights in every jurisdiction in which we operate and that such intellectual property laws are adequate to protect our interest. 12 Further, our current and former Globers could challenge our exclusive rights to the software they have developed in the course of their employment.
In addition, we may be required to notify our clients if one of our service providers is subject to a security incident that affects our clients’ data, and it may disrupt our operations and impede our ability to provide our services.
In addition, we may be required to notify our clients if one of our service providers is subject to a security incident that affects our clients’ data, and it may disrupt our operations and impede our ability to provide our services. Many of our client contracts do not limit our potential liability for breaches of confidentiality.
Any such legislation, regulations and measures could impair our ability to provide services to our clients. Compliance efforts can be expensive and burdensome, and, we could be subject to regulatory investigations and orders, significant fines and penalties, mitigation and breach notification expenses, private litigation and contractual damages, corrective action plans and related regulatory oversight and reputational harm.
Compliance efforts can be expensive and burdensome, and we could be subject to regulatory investigations and orders, significant fines and penalties, mitigation and breach notification expenses, private litigation and contractual damages, corrective action plans and related regulatory oversight and reputational harm.
Any significant failure of our equipment or systems, or any major disruption to basic infrastructure like power and telecommunications in the locations in which we operate, could impede our ability to provide services to our clients, have a negative impact on our reputation, cause us to lose clients, and adversely affect our results of operations. 10 Under our client contracts, our liability for breach of our obligations is, in some cases, limited pursuant to the terms of the contract.
Any significant failure of our equipment or systems, or any major disruption to basic infrastructure like power and telecommunications in the locations in which we operate, could impede our ability to provide services to our clients, have a negative impact on our reputation, cause us to lose clients, and adversely affect our results of operations.
Such limitations may be unenforceable or otherwise may not protect us from liability for damages. In addition, certain liabilities, such as claims of third parties for which we may be required to indemnify our clients, may not be limited under our contracts.
In addition, certain liabilities, such as claims of third parties for which we may be required to indemnify our clients, may not be limited under our contracts.
We face intense competition from technology and IT services providers, and an increase in competition, our inability to compete successfully, pricing pressures or loss of market share could materially adversely affect our revenues, results of operations and financial condition.
The loss or diminution in business from any of our major clients could have a material adverse effect on our revenues and results of operations. 7 We face intense competition from technology and IT services providers, and an increase in competition, our inability to compete successfully, pricing pressures or loss of market share could materially adversely affect our revenues, results of operations and financial condition.
On June 2, 2022, Globant, LLC, our U.S. subsidiary (the "Borrower"), entered into a Third Amended and Restated Credit Agreement, by and among certain financial institutions listed therein, as lenders, and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender (the “Third A&R Credit Agreement”).
On May 31, 2023, Globant, LLC, one of our U.S. subsidiaries (the "Borrower"), entered into a Fourth Amended and Restated Credit Agreement, by and among certain financial institutions listed therein, as lenders, and HSBC Bank USA, N.A., as administrative agent, issuing bank and swingline lender (the “Fourth A&R Credit Agreement”).
Our revenues are dependent on a limited number of industries, and any decrease in demand for technology services in these industries could reduce our revenues and adversely affect our results of operations.
This could have a material adverse effect on our business, results of operations, value chain and financial condition. Our revenues are dependent on a limited number of industries, and any decrease in demand for technology services in these industries could reduce our revenues and adversely affect our results of operations.
For example, the Argentine peso has suffered significant devaluations against the U.S. dollar declining approximately 72.5%, 22.1% and 40.6% against the U.S. dollar in 2022, 2021 and 2020, respectively, and the Colombian peso declined approximately 20.8%, 16% and 5% against the U.S. dollar in 2022, 2021 and 2020, respectively.
For example, the Argentine peso has suffered significant devaluations against the U.S. dollar declining approximately 355.7%, 72.5%, and 22.1% against the U.S. dollar in 2023, 2022 and 2021, respectively, the Mexican peso increased approximately 12.7% and 5.6% against the U.S. dollar in 2023 and 2022, respectively, and decreased 2.9% against the U.S. dollar in 2021; and the Colombian peso increased approximately 20.5% against the U.S dollar in 2023 and decreased 20.8% and 16% against the U.S dollar in 2022 and 2021, respectively.
As we expand our software products, we may be exposed to new operational, legal, regulatory, ethical and technological risks that require us to take effective actions to protect our business.
As we expand our software products, we may be exposed to new operational, legal, regulatory, ethical and technological risks that require us to take effective actions to protect our business. We are subject to numerous risks associated with the evolving market for products with AI capabilities.
The total attrition rate among our Globers was 16.7%, 18.7% and 13.0% for the years ended December 31, 2022, 2021 and 2020, respectively. If our attrition rate were to continue increasing, our operating efficiency and productivity may decrease.
The total attrition rate among our Globers was 8.1%, 16.7% and 18.7% for the years ended December 31, 2023, 2022 and 2021, respectively. If our attrition rate were to increase above historical levels, our operating efficiency and productivity may decrease.
Although there is doubt as to whether U.S. courts would enforce such provision in an action brought in the United States under U.S. federal or state securities laws, such provision could make enforcing judgments obtained outside Luxembourg more difficult to enforce against our assets in Luxembourg or jurisdictions that would apply Luxembourg law.
Although there is doubt as to whether U.S. courts would enforce this indemnification provision in an action brought in the United States under U.S. federal or state securities laws, this provision could make it more difficult to obtain judgments outside Luxembourg or from non-Luxembourg jurisdictions that would apply Luxembourg law against our assets in Luxembourg. 22 Luxembourg insolvency laws may offer our shareholders less protection than they would have under U.S. insolvency laws.
Neither our articles of association nor Luxembourg law provides for appraisal rights for dissenting shareholders in certain extraordinary corporate transactions that may otherwise be available to shareholders under certain U.S. state laws. As a result of these differences, our shareholders may have more difficulty protecting their interests than they would as shareholders of a U.S. issuer.
Neither our articles of association nor Luxembourg law provides for appraisal rights for dissenting shareholders in certain extraordinary corporate transactions that may otherwise be available to shareholders under certain U.S. state laws.
Moreover, in the case of an increase in capital by a contribution in kind, no pre-emptive rights of the existing shareholders exist. 21 We are organized under the laws of the Grand Duchy of Luxembourg and it may be difficult for you to obtain or enforce judgments or bring original actions against us or our executive officers and directors in the United States.
We are organized under the laws of the Grand Duchy of Luxembourg and it may be difficult for you to obtain or enforce judgments or bring original actions against us or our executive officers and directors in the United States. We are organized under the laws of the Grand Duchy of Luxembourg.
If our ESG practices do not meet evolving investor or other 9 stakeholder expectations and standards, then our reputation or our attractiveness as an investment, business partner, acquirer, service provider or employer could be negatively impacted.
If our ESG practices do not meet evolving investor or other stakeholder expectations and standards, then our reputation or our attractiveness as an investment, business partner, acquirer, service provider or employer could be negatively impacted. Regulations and stakeholder expectations relating to environmental, social and governance matters may impose additional costs and expose us to new risks.
In addition, our reliance on any individual client for a significant portion of our revenues may give that client a certain degree of pricing leverage against us when negotiating contracts and terms of service. The loss or diminution in business from any of our major clients could have a material adverse effect on our revenues and results of operations.
In addition, our reliance on any individual client for a significant portion of our revenues may give that client a certain degree of pricing leverage against us when negotiating contracts and terms of service.
Congress and in state legislatures to address concerns over the perceived association between offshore outsourcing and the loss of jobs domestically. Also, Mexico has recently adopted a reform to the laws regulating outsourcing and subcontracting.
Congress and in state legislatures to address concerns over the perceived association between offshore outsourcing and the loss of jobs domestically. In 2021 Mexico prohibited outsourcing and regulated subcontracting.
The global economy has experienced and may continue to experience extreme volatility and disruptions caused by, among others, health pandemics, terrorist acts, political, social and civil unrest, wars and natural disasters. For example, the COVID-19 pandemic resulted in widespread unemployment and economic slowdown.
The global economy has experienced and may continue to experience extreme volatility and disruptions caused by, among others, health pandemics, terrorist acts, political, social and civil unrest, wars and natural disasters. For example, in February 2022, Russia initiated significant military action against Ukraine.
Many commercial laws and regulations in Central Europe and Latin America are relatively new and have been subject to limited interpretation; and, therefore, their application can be unpredictable.
Many commercial laws and regulations in Central Europe and Latin America are relatively new and have been subject to limited interpretation; and, therefore, their application can be unpredictable. In addition, in certain countries in which we operate, the governmental authorities have a high degree of discretion in the interpretation and application of the regulations.
Neither our past financial performance nor the past financial performance of any other company in the technology services industry is indicative of how our company will fare financially in the future. Our future profits may vary substantially from those of other companies, and those we have achieved in the past, making investment in our company risky and speculative.
Our future profits may vary substantially from those of other companies, and those we have achieved in the past, making investment in our company risky and speculative.
Government influence and intervention could materially adversely affect our business, financial condition and results of operations. Inflation in the countries in which we operate could adversely affect our business and results of operations.
Government influence and intervention could materially adversely affect our business, financial condition and results of operations. Inflation in the countries in which we operate could adversely affect our business and results of operations. Following recent global economy disruptions some of the countries in which we operate have experienced, or are currently experiencing, higher rates of inflation.
Internal or external attacks on our IT servers and networks, or those of our third party processors, providers or clients, are vulnerable to cybersecurity risks, including viruses and worms, phishing attacks, ransomware attacks, denial-of-service attacks, physical or electronic break-ins, third party or employee theft or misuse, and similar disruptions, which could disrupt the normal operations of our engagements and impede our ability to provide critical services to our clients, thereby subjecting us to liability under our contracts and applicable data protection laws.
Our internal or external IT servers and networks, or those of our third party processors, providers or clients, are vulnerable to cybersecurity risks, including viruses and worms, phishing attacks, ransomware attacks, denial-of-service attacks, physical or electronic break-ins, third party or employee theft or misuse, and similar disruptions, which could disrupt the normal operations of our engagements and impede our ability to provide critical services to our clients, thereby subjecting us to liability under our contracts and applicable data protection laws. 11 While we take measures designed to protect the security of, and unauthorized access to, our systems and data, and the privacy of confidential information and personal data, our security controls over our systems and the systems of our processors, vendors and clients with which we operate and rely upon, as well as any other security practices we follow, may not prevent the improper access to or the unauthorized acquisition, use or disclosure of data, including confidential information, personal data, intellectual property and proprietary information.
In addition, in certain countries in which we operate, the governmental authorities have a high degree of discretion in the interpretation and application of the regulations. 15 Historically, governments in Latin America have frequently intervened in the economies of their respective countries and have occasionally made significant changes in policy and regulations.
Historically, governments in Latin America have frequently intervened in the economies of their respective countries and have occasionally made significant changes in policy and regulations.
There can be no assurance that our non-unionized employees will not become members of a union or become covered by a collective bargaining agreement, including through an acquisition of a business whose employees are subject to such an agreement.
There can be no assurance that our non-unionized employees will not become members of a union or become covered by a collective bargaining agreement, including through an acquisition of a business whose employees are subject to such an agreement. 8 We cannot assure you that we or our operating subsidiaries will not experience work disruptions or stoppages in the future, which could have a material adverse effect on our business and revenues.
Due to the varying degree of development of the legal systems of the countries in which we operate, local laws might be insufficient to defend us and preserve our rights. Our failure to comply with applicable regulatory requirements could have a material adverse effect on our business, results of operations and financial condition.
Due to the varying degree of development of the legal systems of the countries in which we operate, local laws might be insufficient to defend us and preserve our rights.
As a result, the shareholding of such shareholders may be materially diluted in the event common shares are issued in the future.
As a result, the shareholding of such shareholders may be materially diluted in the event common shares are issued in the future. Moreover, in the case of an increase in capital by a contribution in kind, no pre-emptive rights of the existing shareholders exist.
The revised Pillar Two Blueprint includes a global minimum tax rate of 15% for groups with a global turnover in excess of €750 million, subject to certain exclusions.
For example, on December 20, 2023, the Luxembourg Parliament passed into law the new OECD Pillar Two model rules ("Pillar Two") on global minimum tax, which includes a global minimum tax rate of 15% for groups with a global turnover in excess of EUR 750 million, subject to certain exclusions.
Holders of our common shares may not be able to exercise their pre-emptive subscription rights and may suffer dilution of their shareholding in the event of future common share issuances. Under Luxembourg Companies Law, our shareholders benefit from a pre-emptive subscription right on the issuance of common shares for cash consideration.
Under Luxembourg Companies Law, our shareholders benefit from a pre-emptive subscription right on the issuance of common shares for cash consideration.
Increased hiring by technology companies, particularly in Latin America, the United States, Asia and Europe, and increasing worldwide competition for skilled technology professionals may lead to a shortage in the availability of qualified personnel in the locations where we operate and hire.
Increased hiring by technology companies and increasing worldwide competition for skilled technology professionals may lead to a shortage in the availability of qualified personnel in the locations where we operate and hire. Failure to hire and train or retain qualified technology professionals in sufficient numbers could have a material adverse effect on our business, results of operations and financial condition.
If we are unable to manage attrition and attract and retain highly-skilled IT professionals, our operating efficiency and productivity may decrease, and we may not have the necessary resources to maintain client relationships and expand our business. 5 Our business is labor intensive and, accordingly, our success depends upon our ability to attract, develop, motivate, retain and effectively utilize highly-skilled IT professionals.
In addition, we could incur increased payroll costs, which would negatively affect our utilization rates and our business. 4 If we are unable to manage attrition and attract and retain highly-skilled IT professionals, our operating efficiency and productivity may decrease, and we may not have the necessary resources to maintain client relationships and expand our business.
We believe that there is significant competition for technology professionals in Latin America, the United States, Europe, Asia and elsewhere who possess the technical skills and experience necessary to deliver our services, and that such competition is likely to continue for the foreseeable future.
Our business is labor intensive and, accordingly, our success depends upon our ability to attract, develop, motivate, retain and effectively utilize highly-skilled IT professionals. We believe that there is significant competition for technology professionals who possess the technical skills and experience necessary to deliver our services, and that such competition is likely to continue for the foreseeable future.
Our ability to expand our business and procure new contracts or enter into beneficial business arrangements could be affected to the extent we enter into agreements with clients containing non-competition clauses. Some of our services agreements restrict our ability to perform similar services for certain of our clients' competitors under specific circumstances.
This could limit our ability to grow our business and develop or enhance our service offerings required to respond to market demand or competitive challenges. Our ability to expand our business and procure new contracts or enter into beneficial business arrangements could be affected to the extent we enter into agreements with clients containing non-competition clauses.

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These teams are fully responsible for creating solutions, building and sustaining features, products or platforms. Agile Pods are in constant contact with our clients and are in full control of the products we create, which augments their autonomy and ultimately propels productivity.
These teams are fully responsible for creating solutions and building and sustaining features, products or platforms. Agile Pods are in constant contact with our clients and are in full control of the products we create, which augments their autonomy and ultimately propels productivity.
Also our Employee Assistance Program ("EAP") is a platform that provides for a unique and confidential space offers well-being benefits, ways to manage health risks, and ways to inspire positive changes.
Also our Employee Assistance Program ("EAP") is a platform that provides for a unique and confidential space and offers well-being benefits, ways to manage health risks, and ways to inspire positive changes.
According to the Strategic Review of The National Association of Software and Services Companies (NASSCOM), the Indian IT-BPM Industry currently employs around 4 million people. In terms of students, more than 5 million students graduate every year, and almost 15% of these graduates are considered employable by Tier 1/Tier 2 companies.
According to the Strategic Review of The National Association of Software and Services Companies (NASSCOM), the Indian IT-BPM Industry currently employs around 5.4 million people. In terms of students, more than 5 million students graduate every year, and almost 15% of these graduates are considered employable by Tier 1/Tier 2 companies.
Net wealth tax The net wealth tax is payable on shares and other equity participation issued by an entity domiciled in Argentina that are owned either by individuals, regardless of residence, or by companies residing abroad. The tax is paid by the local company itself. The applicable rate is 0.50% on the company’s net worth.
Net wealth tax Argentina The net wealth tax is payable on shares and other equity participation issued by an entity domiciled in Argentina that are owned either by individuals, regardless of residence, or by companies residing abroad. The tax is paid by the local company itself. The applicable rate is 0.50% on the company’s net worth.
They can develop their career by gaining seniority in their current path or moving internally into other roles in different areas of expertise. 50 • Geocultural diversity - We encourage Globers to seek new opportunities and embrace cultural exchanges. Our Globers can work on projects with people from diverse cultures and have the chance to live an international experience.
They can develop their career by gaining seniority in their current path or moving internally into other roles in different areas of expertise. • Geocultural diversity - We encourage Globers to seek new opportunities and embrace cultural exchanges. Our Globers can work on projects with people from diverse cultures and have the chance to live an international experience.
Income tax Argentina 58 Pursuant to Income Tax Law No. 20,628 (the “ITL”), in Argentina, legal entities and branches of foreign entities are subject to a tax on their worldwide income; provided that any foreign taxes paid on income earned from activities carried out abroad can be taken as a credit against the applicable Argentine tax, to the extent that the foreign tax does not exceed the Argentine tax.
Income tax Argentina Pursuant to Income Tax Law No. 20,628 (the “ITL”), in Argentina, legal entities and branches of foreign entities are subject to a tax on their worldwide income; provided that any foreign taxes paid on income earned from activities carried out abroad can be taken as a credit against the applicable Argentine tax, to the extent that the foreign tax does not exceed the Argentine tax.
Online harassment, information bubbles & polarization, data privacy and security, screen time abuse and AI bias are some of our main focuses in this work area. 4. Be kind to the planet Be kind to the Planet ("BKP") has long been engaged in transforming people's lives by reducing emissions and creating a more sustainable world.
Online harassment, information bubbles & polarization, data privacy and security, screen time abuse and AI bias are some of our main focuses in this work area. 4. Be kind to the planet Be kind to the Planet has long been engaged in transforming people's lives by reducing emissions and creating a more sustainable world.
We take pride in our people, and consider them to be our greatest strength. We are committed to growing our community with an emphasis on diversity and inclusion. We have development centers in North America, Latin America, Europe and Asia, where we have established initiatives to promote and assist individuals who wish to join the IT industry.
We take pride in our people, and consider them to be our greatest strength. We are committed to growing our community with an emphasis on diversity and inclusion. We have development centers in North America, Latin America, Europe, Asia and Oceania, where we have established initiatives to promote and assist individuals who wish to join the IT industry.
This team promotes our brand through a variety of channels, including the following: 55 • Converge: our series of executive events that bring together some of the best creative minds in the industry for one amazing day of igniting stories, inventive ideas, learning experiences, and "wow" technology showcases that enable attendees to re-think the new ways they do business. • Sentinel Report: a sentinel report to provide insightful evidence of consumer behavior and market trends that ignite strategic thinking • Trends Applied: A series of reports and LIVE conversations that action to technology trends in key industries, helping stakeholders get a competitive advantage with emergent technologies. • TechNFest: our signature event for talent where we offer talks and demos on the latest tech trends and showcase Globant’s workplace experience. • Reports and whitepapers: special reports that analyze trends and the impact these have on businesses. • Success Stories : A yearly initiative where participants share experiences that bridge the gap between complex technical challenges and the brands and people behind it. • Globant Awards: global awards with two editions - Women that Build, recognizing women who inspire, who build, who lead and help create change, and Digital Disruptors, which acknowledges all those disruptors that lead the digital and cognitive revolution. • Webinars: explore different trends and technologies in depth showcasing views from experts in the field. • Events: small events for specific guests or partners to large events that welcome the community. • Podcasts: discussion of tech trends and DEI perspectives. • Blog: explore content on the latest trends and best practices in the different industries we work with. • Newsletter: monthly update to seek reinvention in every industry. • Books: experts share their fresh perspectives and industry insights.
This team promotes our brand through a variety of channels, including the following: • Converge: Our series of executive events that bring together some of the best creative minds in the industry for one amazing day of igniting stories, inventive ideas, learning experiences, and "wow" technology showcases that enable attendees to re-think the new ways they do business. • Sentinel Report: A sentinel report to provide insightful evidence of consumer behavior and market trends that ignite strategic thinking • Trends Applied: A series of reports and LIVE conversations that action to technology trends in key industries, helping stakeholders get a competitive advantage with emergent technologies. • TechNFest: Our signature event for talent where we offer talks and demos on the latest tech trends and showcase Globant’s workplace experience. • Reports and whitepapers: Special reports that analyze trends and the impact these have on businesses. • Success Stories : A yearly initiative where participants share experiences that bridge the gap between complex technical challenges and the brands and people behind it. 44 • Globant Awards: Global awards with two editions - Women that Build, which recognizes women who inspire, build, lead and help create change, and Digital Disruptors, which acknowledges all those disruptors that lead the digital and cognitive revolution. • Webinars: Explore different trends and technologies in depth showcasing views from experts in the field. • Events: Small events for specific guests or partners to large events that welcome the community. • Podcasts: Discussion of tech trends and DEI perspectives. • Blog: Explore content on the latest trends and best practices in the different industries we work with. • Newsletter: Monthly update to seek reinvention in every industry. • Books: Experts share their fresh perspectives and industry insights.
The focus on an enterprise's revenue drivers allows us to highlight the value of our services in meeting our client's business needs, thereby differentiating us. Our account sales teams are made up of sales executives and sales managers, and follow specific guidelines for managing opportunities when contacting potential new clients.
The focus on an enterprise's revenue drivers allows us to highlight the value of our services in meeting our client's business needs, thereby differentiating us. 43 Our account sales teams are made up of sales executives and sales managers, and follow specific guidelines for managing opportunities when contacting potential new clients.
In 2009, we created our Studio Model. Our Studios have deep pockets of expertise across industries and in the latest technologies and trends. We believe our Studio model helps us foster creativity and innovation while allowing us to build, enhance and consolidate expertise around a variety of emerging technologies.
In 2009, we created our Studio Model. Our Studios have deep pockets of knowledge across industries and in the latest technologies and trends. We believe our Studio model helps us foster creativity and innovation while allowing us to build, enhance and consolidate expertise around a variety of emerging technologies.
Depending on whether the Easter holiday falls in March or April of a given year, the effect on our revenues and profitability can appear either in the first or second quarter of that year. Finally, we implement annual salary increases in the second and fourth quarters of each year.
Depending on whether the Easter holiday falls in March or April of a given year, the effect on our revenues and profitability can appear either in the first or second quarter of that year. Finally, we may implement annual salary increases in the second and fourth quarters of each year.
Certain sales and imports of goods, such as computers and other 59 hardware, are, however, subject to a lower rate of 10.5%. Services rendered in Argentina, which are effectively used or exploited abroad, qualify as “export services” and are not subject to VAT.
Certain sales and imports of goods, such as computers and other hardware, are, however, subject to a lower rate of 10.5%. Services rendered in Argentina, which are effectively used or exploited abroad, qualify as “export services” and are not subject to VAT.
Value-added tax Argentina In Argentina, the sale of goods and the provision of services, under certain circumstances, rendered outside of Argentina, which are effectively used or exploited in Argentina, and digital services rendered from abroad, are subject to value-added tax. The current value-added general tax rate is 21%.
Value-added tax Argentina In Argentina, the sale of goods and the provision of services, under certain circumstances, rendered outside of Argentina, which are effectively used or exploited in Argentina, and digital services rendered from abroad, are subject to VAT. The current value-added general tax rate is 21%.
Finance: driving innovation in financial institutions 29 This Studio leverages our in-depth expertise in the financial sector to deliver customized transformational programs tailored to our client’s needs, which boost new business models and enhance the experience of customers.
Finance: driving innovation in financial institutions This Studio leverages our in-depth expertise in the financial sector to deliver customized transformational programs tailored to our client’s needs, which boost new business models and enhance the experience of customers.
The main benefits include the following: • An almost full tax exemption (Corporate Income Tax "IRAE", Net Wealth Tax-IP, Value Added Tax – VAT and several withholding taxes) and customs duties exemption; and • Foreign employees may opt out of the Uruguayan social security system and, with regard to personal income tax, opt to be subject to Non-Residents Income Tax at a 12% flat rate instead of Individual Tax.
The main benefits include the following: • An almost full tax exemption (Corporate Income Tax "IRAE", Net Wealth Tax-IP, VAT and several withholding taxes) and customs duties exemption; and • Foreign employees may opt out of the Uruguayan social security system and, with regard to personal income tax, opt to be subject to Non-Residents Income Tax at a 12% flat rate instead of Individual Tax.
Labor and Employment 62 We are subject to a variety of national and local labor laws including, employee health safety, wages and benefits laws, independent contractors regulations and outsourcing.
Labor and Employment We are subject to a variety of national and local labor laws including, employee health safety, wages and benefits laws, independent contractors regulations and outsourcing.
The development ("D") component emphasizes developing existing client relationships by significantly expanding our wallet share and capturing business from our competitors. The acquisition ("A") component targets new client accounts. Through our RDA strategy, as well as marketing and branding events, we are able to acquire new or expand existing engagements in our large and growing addressable market.
The development component emphasizes developing existing client relationships by significantly expanding our wallet share and capturing business from our competitors. The acquisition component targets new client accounts. Through our RDA strategy, as well as marketing and branding events, we are able to acquire new or expand existing engagements in our large and growing addressable market.
Business Overview Overview Established in 2003 by four friends in Argentina, we have evolved to become a leading global technology service provider. Today, we are a publicly-traded company, with our common shares listed on the NYSE under the ticker symbol "GLOB". We continue to maintain the entrepreneurial spirit of our founders throughout our business.
Business Overview Overview Established in 2003 by four entrepreneurs in Argentina, we have evolved to become a leading global technology service provider. Today, we are a publicly-traded company, with our common shares listed on the NYSE under the ticker symbol "GLOB". We continue to maintain the entrepreneurial spirit of our founders throughout our business.
In November 2021, we acquired Navint Partners, LLC and certain of its affiliated entities (collectively "Navint Group"), a leading lead-to-revenue Salesforce partner to strengthen our Salesforce Studio's end-to-end business transformation capabilities and expand our service footprint in the United States, Europe, Middle East and Africa ("EMEA"), and India.
Later in 2021, we acquired Navint Partners, LLC and certain of its affiliated entities (collectively "Navint Group"), a leading lead-to-revenue Salesforce partner to strengthen our Salesforce Studio's end-to-end business transformation capabilities and expand our service footprint in the United States, Europe, Middle East and Africa ("EMEA"), and India.
We want to empower them to make their own decisions and contributions to the company and make the most out of these five professional development dimensions: • Technology - Our more than 30 Studios consolidate experience in more than 100 emerging technologies and practices where Globers can learn, develop, specialize and stay relevant.
We want to empower them to make their own decisions and contributions to the company and make the most out of these five professional development dimensions: • Technology - Our 39 Studios consolidate experience in more than 100 emerging technologies and practices where Globers can learn, develop, specialize and stay relevant.
We do not believe that any individual registered intellectual property right, other than our rights in our name and logo, is material to our business. Facilities and Infrastructure The table below sets forth an overview of our office locations as of December 31, 2022.
We do not believe that any individual registered intellectual property right, other than our rights in our name and logo, is material to our business. Facilities and Infrastructure The table below sets forth an overview of our office locations as of December 31, 2023.
With the growth of our business in an SEZ, our Indian subsidiary may be required to compute its tax liability under Minimum Alternate Tax ("MAT") in future years at the current rate of approximately 21.3%, including surcharges, as its tax liability under the general tax provisions may be lower compared to the MAT liability.
With the growth of our business in a SEZ, our Indian subsidiary may be required to compute its tax liability under Minimum Alternate Tax ("MAT") in future years at the current rate of approximately 21.3%, including surcharges, as its tax liability under the general tax provisions may be lower compared to the MAT liability.
Subject to net income amounts, companies are required to pay a fixed amount and a progressive rate over the surplus of the minimum base rate in their category. The amounts are adjusted annually starting on January 1, 2022, based on the variation of the consumer price index ("CPI").
Subject to net income amounts, companies are required to pay a fixed amount and a progressive rate over the surplus of the minimum base rate in their category. The amounts are adjusted annually starting on January 1, 2023, based on the variation of the consumer price index ("CPI").
Such bonds can be used within the following 24 months (extendable for additional 12 months with 51 justified cause) to pay Income Tax (up to a percentage of the exports reported each year), Value Added Tax or other federal taxes.
Such bonds can be used within the following 24 months (extendable for additional 12 months with justified cause) to pay Income Tax (up to a percentage of the exports reported each year), value added tax ("VAT") or other federal taxes.
In the case of exporters and producers of exempt goods/services, input VAT can be recovered via a tax refund. Mexico In Mexico value-added-tax is levied upon the supply of goods and independent services provided in Mexico, the importation of goods and services and the grant of temporary use or the enjoyment of goods within Mexican territory.
In the case of exporters and producers of exempt goods/services, input VAT can be recovered via a tax refund. Mexico In Mexico VAT is levied upon the supply of goods and independent services provided in Mexico, the importation of goods and services and the grant of temporary use or the enjoyment of goods within Mexican territory.
Be Kind Tech Fund: This initiative is managed by Globant Ventures, and is publicly committed to investing $10 million in start-ups developing apps, products, and platforms that tackle the misuse of technology and its negative impact on society.
Be Kind Tech Fund : this initiative is managed by Globant Ventures, and is publicly committed to investing in start-ups developing apps, products, and platforms that tackle the misuse of technology and its negative impact on society.
Our subsidiary in Uruguay, Sistemas Globales Uruguay S.A., is situated in a Free Trade Zone and is eligible for the fiscal benefits. 52 Methodologies and Tools Effectively delivering the innovative software solutions that we offer requires highly evolved methodologies and tools.
Our subsidiary in Uruguay, Sistemas Globales Uruguay S.A., is situated in a Free Trade Zone and is eligible for the fiscal benefits. 41 Methodologies and Tools Effectively delivering the innovative software solutions that we offer requires highly evolved methodologies and tools.
Companies must meet the conditions under Section 10AA of Income Tax Act to be eligible for the benefit. Other tax benefits are also available for registered SEZ companies. Some locations of our Indian subsidiary are located in a SEZ and have completed the SEZ registration process. Consequently, we started receiving the tax benefit on August 2, 2017.
Companies must meet the conditions under Section 10AA of Income Tax Act to be eligible for the benefit. Other tax benefits are also available for registered special economic zone ("SEZ") companies. Some locations of our Indian subsidiary are located in a SEZ and have completed the SEZ registration process. Consequently, we started receiving the tax benefit on August 2, 2017.
The standard corporate income tax rate for fiscal years starting on January 1, 2022 is 35%; provided that local companies cannot have an effective tax rate under 15%; if the effective tax rate, determined by means of Law No. 2277 of 2022, is less to 15%, the taxpayer must increase the tax to cover the minimum tax rate.
The standard corporate income tax rate for fiscal years starting on January 1, 2024 is 35%; provided that local companies cannot have an effective tax rate under 15%; if the effective tax rate, determined by means of Law No. 2277 of 2022, is less than 15%, the taxpayer must increase the tax to cover such minimum tax rate.
We also provide weekly webinars focused on stress management, emotional intelligence, smart working, financial well-being, and other topics. Related to wellness at work, every Glober can take a BKY day, a day to enjoy and connect with their self in the way they like best.
We also provide weekly webinars focused on stress management, emotional intelligence, smart working, financial well-being, and other topics. Related to wellness at work, every Glober can take a BKY day, a day to enjoy and connect with themselves in the way they like best.
This carryforward or carryback should not reduce the amount of the distribution to nonresidents subject to the dividends tax of 10%. 60 Mexico Resident individuals and nonresident shareholders of a Mexican corporation are subject to a 10% income tax on dividends received that are paid out of profits generated after 2013.
This carryforward or carryback should not reduce the amount of the distribution to nonresidents subject to the dividends tax of 20%. 49 Mexico Resident individuals and nonresident shareholders of a Mexican corporation are subject to a 10% income tax on dividends received that are paid out of profits generated after 2013.
Penalties include fines of up to a tenfold increase in the amount of the infringing transaction, temporary suspensions, disqualification for up to ten years preventing the infringing party from acting as importer, exporter and/or as foreign exchange institution, or even prison in event of recidivism.
Penalties include fines of up to a tenfold increase in the amount of the infringing transaction, temporary suspensions, disqualification for up to ten years preventing the infringing party from acting as importer, exporter and/or as foreign exchange institution, or imprisonment in event of recidivism.
You may find complete information about all of our subsidiaries and their respective holdings in Exhibit 8.1 . D. Property, Plant and Equipment See “ Business Overview - Facilities and Infrastructure ”. ITEM 4A. UNRESOLVED STAFF COMMENTS Not applicable.
You may find complete information about all of our subsidiaries and their respective holdings in E xhibit 8.1 . D. Property, Plant and Equipment See “ Business Overview - Facilities and Infrastructure ”. ITEM 4A. UNRESOLVED STAFF COMMENTS Not applicable.
We typically enter into a master services agreement (or MSA) with our clients, which provides a framework for services and a statement of work (or SOW) to define the scope, timing, pricing terms and performance criteria of each individual engagement under the MSA. We generate 43.8% of our revenue from long-term projects with terms greater than 24 months.
We typically enter into a master services agreement (or MSA) with our clients, which provides a framework for services and a statement of work (or SOW) to define the scope, timing, pricing terms and performance criteria of each individual engagement under the MSA. We generate 46.7% of our revenue from long-term projects with terms greater than 24 months.
As a result of the incorporation of our company in Luxembourg and certain related share transfers and other transactions, Globant Spain became a wholly-owned subsidiary of our company. The following chart is a summary of our principal subsidiaries as of February 10, 2023.
As a result of the incorporation of our company in Luxembourg and certain related share transfers and other transactions, Globant Spain became a wholly-owned subsidiary of our company. 51 The following chart is a summary of our principal subsidiaries as of February 10, 2024.
We rely on a combination of intellectual property laws, trade secrets, confidentiality procedures and contractual provisions to protect the investment we make in research and development. We require our employees, independent contractors, vendors and clients to enter into written confidentiality agreements upon the commencement of their relationships with us.
Intellectual Property Our intellectual property rights are important to our business. We rely on a combination of intellectual property laws, trade secrets, confidentiality procedures and contractual provisions to protect the investment we make in research and development. We require our employees, independent contractors, vendors and clients to enter into written confidentiality agreements upon the commencement of their relationships with us.
Globers have immediate access to clinical counselors through video, live chat, telesupport, and online groups on topics such as health and safety concerns; relationship and family matters; and work-related issues. 2.
Globers have immediate access to clinical counselors through video, live chat, tele-support, and online groups on topics such as health and safety concerns; relationship and family matters; and work-related issues. 2.
About our Be Kind initiative We thrive by reinventing businesses and transforming organizations to be ready for a digital and cognitive future, providing world-class opportunities for talent to make a positive impact around the globe. 47 Our Be kind Initiative is a global ESG strategy that unites positive impact programs for all of their main stakeholders and consolidates initiatives to tackle critical issues, such as diversity, equity and inclusion, climate change, education and ethics in AI, among others.
About our Be Kind initiative We thrive by reinventing businesses and transforming organizations to be ready for a digital and cognitive future, providing world-class opportunities for talent to make a positive impact around the globe. 35 Our Be kind Initiative is a global ESG strategy that unites positive impact programs for all of our main stakeholders and consolidates initiatives to tackle critical issues, such as diversity, equity and inclusion, climate change, wellness in the workplace, education, misuses of technology and ethics in AI, among others.
However, some of our present and potential competitors may have substantially greater financial, marketing or technical resources; may be able to respond more quickly to emerging technologies or processes and changes in client demands; may be able to devote greater resources towards the development, promotion and sale of their services than we can; and may make strategic acquisitions or establish cooperative relationships among themselves or with third parties that increase their ability to address the needs of our clients. 56 Intellectual Property Our intellectual property rights are important to our business.
However, some of our present and potential competitors may have substantially greater financial, marketing or technical resources; may be able to respond more quickly to emerging technologies or processes and changes in client demands; may be able to devote greater resources towards the development, promotion and sale of their services than we can; and may make strategic acquisitions or establish cooperative relationships among themselves or with third parties that increase their ability to address the needs of our clients.
We also all have the right to be heard and respected. • Have Fun – As Globers, we believe in finding pleasure in our daily tasks, creating a pleasant work atmosphere and building friendships among colleagues. • Be kind – This value represents our vision of doing business and conducting ourselves in an ethical manner, with integrity, and our responsibility to improve our society, transform ourselves through kindness and make the world a better place.
We also all have the right to be heard and respected. • Have Fun – As Globers, we believe in finding pleasure in our daily tasks, creating a pleasant work atmosphere and building friendships among colleagues. • Be kind – This value represents our vision of doing business and conducting ourselves in an ethical manner, with integrity, and our responsibility to improve our society, transform ourselves through kindness and make the world a better place. • Own the Place – Through our autonomy pillar, we empower Globers to embrace the entrepreneurial spirit.
The Walmeric transaction represents our first product-oriented acquisition and is expected to strengthen our capabilities with respect to digital marketing and digital sales. To expand and further improve our blockchain and crypto-related solutions, we acquired Atix Labs S.R.L. and Atix Labs LLC ("Atix"), a professional services company that specializes in blockchain.
The Walmeric transaction represents our first product-oriented acquisition and has strengthened our capabilities with respect to digital marketing and digital sales. To expand and further improve our blockchain and crypto-related solutions, we acquired Atix Labs S.R.L. and Atix Labs LLC ("Atix"), a professional services company that specializes in blockchain.
Also in this year, Globant was recognized by S&P Global and Corporate Sustainability Assessment (CSA) in the Sustainability Yearbook 2023 for our ESG efforts during 2022.
Globant was recognized by S&P Global and Corporate Sustainability Assessment (CSA) in the Sustainability Yearbook 2023 for our ESG efforts during 2022.
Our Digital Studios focus on developing business models and technical capabilities in the latest technologies and trends to help our customers with their digital transformation, digitizing processes, experiences, and their relationships with their stakeholders, among others.
Digital Studios Network: focuses on developing business models and technical capabilities in the latest technologies and trends to help our customers with their digital transformation, digitizing processes, experiences, and their relationships with their stakeholders, among others. 3.
Our work is based on constant challenges and growth. • Constantly Innovate – We confront every "impossible" and seek to innovate in order to break paradigms. • Aim for Excellence in Your Work – We know that problems we face now will reappear in future projects so we try to solve the obstacles that affect us today. • Be a Team Player – We encourage Globers to get to know their colleagues and to support one another.
Our work is based on constant challenges and growth. • Drive Innovation – We confront every "impossible" and seek to innovate in order to break paradigms. • Excellence in Your Work – We know that problems we face now will reappear in future projects so we try to solve the obstacles that affect us today. • Team Player – We encourage Globers to get to know their colleagues and to support one another.
("Habitant") to reinforce our capabilities in digital marketing, MadTech and digital sales, and enhance our footprint in Europe. We also acquired an 86% stake in Walmeric Soluciones S.L. ("Walmeric"), a company that specializes in marketing automation technology, combining lead management, online marketing and sales enablement.
("Habitant") to reinforce our capabilities in digital marketing, MadTech and digital sales, and enhance our footprint in Europe. Later in the same year, we acquired an 86% stake in Walmeric Soluciones S.L. ("Walmeric"), a company that specializes in marketing automation technology, combining lead management, online marketing and sales enablement.
It is also a powerful no-code chatbot for non-technical authors. 3. Global autonomous culture: We have developed a software product design and development model, known as Agile Pods. It is designed to better align business and technology teams. Driven by a culture of self-regulated teamwork and collaboration across skills, partners and country borders.
It is also an AI-powered no-code for non-technical users. 3. Global autonomous culture: We have developed a software product design and development model, known as Agile Pods. It is designed to better align business and technology teams, driven by a culture of self-regulated teamwork and collaboration across skills, partners and country borders.
Understanding people’s well-being depends on a strong work-life balance and taking care of their physical and emotional health. BKY proposes a holistic approach based on the three pillars of our nature: Body, Mind and Spirit.
Understanding people’s well-being depends on a strong work-life balance and taking care of their physical and emotional health. BKY proposes a holistic approach based on the three pillars of our nature: Physical, Mental and Social Well-being.
Our efforts to become a net-zero company are aligned with our commitment to make the world a better place. In 2020 and 2021, IDC MarketSpace recognized Globant as a Worldwide Leader in CX Improvement and a Major Player in Worldwide Salesforce Implementation Services, respectively.
Our efforts to become a net-zero Company are aligned with our commitment to make the world a better place. In 2020 and 2021, IDC MarketScape vendor assessments acknowledged Globant as a Worldwide Leader in CX Improvement and a Major Player in Worldwide Salesforce Implementation Services, respectively.
Pursuant to the Social Solidarity Law, since December 21, 2019, the Argentine congress established a new 30% tax on the purchase of foreign currency for portfolio purposes, the acquisition of goods and services with credit and debit cards, and any payments in connection with international passenger transportation.
On December 21, 2019, the Argentine congress enacted the Social Solidarity Law, pursuant to which a 30% tax was imposed on the purchase of foreign currency for portfolio purposes, the acquisition of goods and services with credit and debit cards, and any payments in connection with international passenger transportation.
The R.C.S. number related to Globant S.A. is B 173727. We maintain a website at http://www.globant.com . Our website and the information accessible through it are not incorporated into this annual report. The SEC maintains an internet site at http://www.sec.gov that contains reports, information statements, and other information regarding issuers that file electronically with the SEC. B.
We maintain a website at http://www.globant.com . Our website and the information accessible through it are not incorporated into this annual report. The SEC maintains an internet site at http://www.sec.gov that contains reports, information statements, and other information regarding issuers that file electronically with the SEC. B.
Sales and Marketing Our growth strategy is based on four pillars: (i) leveraging our broad expertise; (ii) growing within existing clients; (iii) acquiring new clients; and (iv) pursuing strategic acquisitions. Our expertise and Studio approach help us expand the portfolio and practices we offer to our clients.
Sales and Marketing Our growth strategy is based on six pillars: (i) leveraging our broad expertise; (ii) growing within existing clients; (iii) acquiring new clients; (iv) geographic expansion; (v) products and platforms; and (vi) pursuing strategic acquisitions. Our expertise and Studio approach help us expand the portfolio and practices we offer to our clients.
Our sales and marketing team is currently comprised of 277 sales and marketing personnel worldwide. Beyond leveraging our broad expertise, our sales strategy is driven by three fundamentals: retain, develop and acquire ("RDA"). The retention ("R") component is focused on maintaining our wallet share with existing accounts through flawless 54 execution on our engagements.
Globant's team is currently comprised of 338 sales professionals worldwide. Beyond leveraging our broad expertise, our sales strategy is driven by three fundamentals: retain, develop and acquire ("RDA"). The retention component is focused on maintaining our wallet share with existing accounts through flawless execution on our engagements.
Mastery is about constant improvement, aiming for excellence and exceeding expectations. Finally, we believe that only by sharing a common Purpose we will build a company for the long-term that breaks from the status quo, is recognized as a leader in the delivery of innovative software solutions and creates value for our stakeholders.
Finally, we believe that only by sharing a common Purpose will we build a company for the long-term that breaks from the status quo, is recognized as a leader in the delivery of innovative software solutions and creates value for our stakeholders.
Our services span the spectrum from planning to implementation, to continuous support and optimization. SAP: Accelerating value for enterprise-wide reinvention Our extensive experience developing complex SAP projects help us deliver end-to-end business process transformation across an entire enterprise. Our SAP experts bring best practices in agile frameworks, enterprise-wide integration capabilities and the cutting-edge technology expertise required for business transformation.
SAP: Accelerating value for enterprise-wide reinvention Our extensive experience developing complex SAP projects help us deliver end-to-end business process transformation across an entire enterprise. Our SAP experts bring best practices in agile frameworks, enterprise-wide integration capabilities and the cutting-edge technology expertise required for business transformation.
Our subsidiaries, Atix Labs S.R.L., Decision Support S.A., BSF S.A., IAFH Global S.A. and Sistemas Globales S.A were approved as beneficiaries of the Knowledge Economy Law by the Subsecretary of Knowledge Economy and incorporated into the National Registry on July 8, 2021, September 24, 2021, October 15, 2021, December 14, 2021, and February 8, 2022 respectively.
Our subsidiaries, Atix Labs S.R.L., BSF S.A., IAFH Global S.A. and Sistemas Globales S.A were approved as beneficiaries of the Knowledge Economy Law by the Subsecretary of Knowledge Economy and incorporated into the National Registry on July 8, 2021, October 15, 2021, December 14, 2021, and February 8, 2022 respectively. Benefits were granted as of January 1, 2020.
Over that same period, we have expanded our network of locations, and we are now present in more than 25 countries.
Over that same period, we have expanded our network of locations, and we are now present in 30 countries.
If the dividend is in excess of the CUFIN account, the dividend is also taxed at the distributing company level at a rate of 30% on a grossed-up basis.
If the dividend is in excess of the CUFIN account, then the dividend is also taxed at the distributing company level at a rate of 30% on a grossed-up basis with a gross-up factor of 1.4286.
A 25% rate (plus any applicable surcharge and cess) applies for a financial year to domestic companies with total turnover or gross receipts not exceeding INR 4 billion during the specified period (generally, the financial year two years prior to the relevant financial year).
Under the regular taxation regime, the standard corporate income tax rate is 30% for domestic companies. A 25% rate (plus any applicable surcharge and cess) applies for a financial year to domestic companies with total turnover or gross receipts not exceeding INR 4 billion during the specified period (generally, the financial year two years prior to the relevant financial year).
Globant X aims to productize our most transformative technology into platforms. 23 In 2021, in connection with our Be Kind to the Planet commitment, we became carbon neutral and signed the Science-Based Targets commitment to reinforce our mission to fight climate change.
In 2021, we established Globant X, an incubator focused on nurturing and cultivating our homegrown innovation. Globant X aims to productize our most transformative technology into platforms. In 2021, in connection with our Be Kind to the Planet commitment, we became carbon neutral and signed the Science-Based Targets commitment to reinforce our mission to fight climate change.
The income tax law recognizes the effects of inflation on the following items and transactions: (a) depreciation of fixed assets (b) cost on sales of fixed assets (c) sales of capital stock (shares) (d) monetary assets and liabilities and (e) tax loss carryforwards.
The income tax law recognizes the effects of inflation on the following items and transactions: (a) depreciation of fixed assets (b) cost on sales of fixed assets (c) sales of capital stock (shares) (d) monetary assets and liabilities and (e) tax loss carryforwards. All types of corporate entities are subject to the tax applicable to Mexican corporations.
The dividends tax rate for resident individuals is 15%, with 1.090 Tax Units (2023: COP$46,229,080) of exempt income. No dividend tax applies to distributions to resident companies.
The dividends tax rate for resident individuals is 15%, with 1.090 Tax Units (2024: COP$53,300,850) of exempt income. No dividend tax applies to distributions to resident companies.
As of December 31, 2022, our marketing department, Stay Relevant, is based in Latin America, the United States, Europe and India.
As of December 31, 2023, our marketing department, Stay Relevant, is based in Latin America, North America, Europe and India.
Since then, we have closed five follow-on offerings in the United States, with the most recent offering occurring in May 2021. While our growth has primarily been organic, we have made complementary acquisitions since 2008.
Since then, we have closed five follow-on offerings in the United States, with the most recent offering occurring in May 2021. 24 While we have grown organically, we have made complementary acquisitions since 2008.
Strategy We seek to maintain our status as a leading digital transformation services provider that leverages the latest technologies and methodologies to help organizations respond to the changing demands of their customers and employees.
Despite ongoing challenges, the metaverse continues to captivate the interest of key players and innovators. 27 Strategy We seek to maintain our status as a leading digital transformation services provider that leverages the latest technologies and methodologies to help organizations respond to the changing demands of their customers and employees.
In doing so, we seek to decentralize our delivery centers by opening centers in locations that may not have developed IT services markets but can provide professionals 26 with the caliber of technical training and experience that we seek.
In doing so, we seek to decentralize our delivery centers by opening centers in locations that may not have developed IT services markets but can provide professionals with the caliber of technical training and experience that we seek. In doing so, we offer highly attractive career opportunities to individuals who might otherwise have had to relocate to larger IT markets.
In 2022, Globant produced its first two commercial films: "Seek Reinvention" and "Meet the Future - Reinventing Consultancy." Also, the Company announced a multi-year partnership with FIFA to wide-range its FIFA+ content app and sponsor global top football competitions, including FIFA World Cup Qatar 2022, and FIFA Women's World Cup Australia & New Zealand 2023.
Also in 2022, Globant produced its first two commercial films: "Seek Reinvention" and "Meet the Future - Reinventing Consultancy." Also, the Company announced a multi-year partnership with FIFA to expand its FIFA+ content app and sponsor global top football competitions, including FIFA World Cup Qatar 2022, and FIFA Women's World Cup Australia & New Zealand 2023. 25 During 2023, Globant was named as a Leader in the IDC MarketScape Worldwide Artificial Intelligence Services 2023 Vendor Assessment.
Globant Labs : Globant Labs is where Globers, through our collaborative culture, create, developer and carry out projects. Globant Labs promotes the development of initiatives that have a real and measurable impact, provide tech innovation, are scalable in their reach and aligned with one of Be Kind pillar commitments.
Globant Labs promotes the development of initiatives that have a real and measurable impact, provide tech innovation, are scalable in their reach and aligned with one of Be Kind pillar commitments.
We have numerous trainings and development opportunities that allow them to grow professionally. • Clients - We have a portfolio of leading global brands that Globers can work with over the course of their career. • Industries - We work with leading companies from different industries, such as media, health care, finance, travel, gaming and e-learning.
We have numerous trainings and development opportunities that allow them to grow professionally. • Clients - We have a portfolio of leading global brands that Globers can work with over the course of their career. • Industries - We work with leading companies from different industries, such as media and entertainment; banks, financial services and insurance; and consumer, retail and manufacturing.
We help companies create and operate their new virtual spaces where they can extend their brand presence and product offering, which maximizes engagement with their clients and employees while reinventing their business verticals.
We help companies create and operate their new virtual spaces where they can extend their brand presence and product offering, which maximizes engagement with their clients and employees while reinventing their business verticals. Quality Engineering: Enabling quality everywhere This Studio focuses on reducing our clients' business risks.
In 2022, we acquired Genexus, a low/no code leading platform to foster our product portfolio; Vertic, a digital marketing consultancy, to consolidate our global creative network; Sysdata, a leading business and technology consultancy, focused on delivering digital transformation, to strengthen our delivery capabilities in Italy; and eWave, a digital commerce experience consultancy, with strong expertise in Adobe and Salesforce commerce solutions, to strengthen our delivery capabilities in Asia-Pacific.
In 2022, we acquired Genexus, a low/no code leading platform to foster our product portfolio; Vertic, a digital marketing consultancy, to consolidate our global creative network; Sysdata, a leading business and technology consultancy, focused on delivering digital transformation, to strengthen our delivery capabilities in Italy; eWave, a digital commerce experience consultancy, with strong expertise in Adobe and Salesforce commerce solutions, to strengthen our delivery capabilities in Asia-Pacific; KTBO, a native digital company focused on reinventing businesses through innovative technological solutions; and Ad_bid, a digital media consultancy with rapid growth and a focus on results-oriented advertising for B2B and B2C organizations.
The following table sets forth the amount and percentage of our revenues for the years presented by client location: Year ended December 31, 2022 2021 2020 (in thousands, except percentages) By Geography North America $ 1,135,148 63.8 % $ 831,300 64.1 % $ 574,275 70.5 % Latin America 408,354 22.9 % 288,315 22.2 % 169,440 20.8 % Europe, Middle East & Africa 186,723 10.5 % 151,334 11.7 % 61,788 7.6 % Asia & Oceania 50,018 2.8 % 26,129 2.0 % 8,636 1.1 % Revenues $ 1,780,243 100.0 % $ 1,297,078 100.0 % $ 814,139 100.0 % The following table shows the distribution of our clients by revenues for the years presented: Year ended December 31, 2022 2021 2020 Over $5 Million 65 42 32 $1 - $5 Million 194 143 97 $0.5 - $1 Million 132 106 60 $0.1 - $0.5 Million 386 287 185 Less than $0.1 Million (*) 472 343 235 Total Clients (*) 1,249 921 609 (*) Represents customers with more than $0.01 million in revenues in the last twelve months.
Our top client for the years ended December 31, 2023, 2022 and 2021, The Walt Disney Company, accounted for 8.7%, 10.7% and 10.9% of our revenues, respectively. 42 The following table sets forth the amount and percentage of our revenues for the years presented by client location: Year ended December 31, 2023 2022 2021 (in thousands, except percentages) By Geography North America $ 1,245,972 59.5 % $ 1,135,148 63.8 % $ 831,300 64.1 % Latin America 463,223 22.1 % 408,354 22.9 % 288,315 22.2 % Europe, Middle East & Africa 323,546 15.4 % 186,723 10.5 % 151,334 11.7 % Asia & Oceania 63,198 3.0 % 50,018 2.8 % 26,129 2.0 % Revenues $ 2,095,939 100.0 % $ 1,780,243 100.0 % $ 1,297,078 100.0 % The following table shows the distribution of our clients by revenues for the years presented: Year ended December 31, 2023 2022 2021 Over $5 Million 80 65 42 $1 - $5 Million 231 194 143 $0.5 - $1 Million 155 132 106 $0.1 - $0.5 Million 465 386 287 Less than $0.1 Million (*) 679 472 343 Total Clients (*) 1,610 1,249 921 (*) Represents customers with more than $0.01 million in revenues in the last twelve months.
We believe our success in building our client base in one of the most sophisticated and competitive markets for IT services demonstrates the strength of our value proposition, the quality of our execution and the value of our culture of innovation and entrepreneurial spirit. The market opportunity We are witnessing a transcendental time for technology.
We believe our success in building our client base in one of the most sophisticated and competitive markets for IT services demonstrates the strength of our value proposition, the quality of our execution and the value of our culture of innovation and entrepreneurial spirit. 26 The market opportunity Significant technological advancement and societal shifts are continuing to impact businesses.
We emphasize the importance of hacking barriers and expanding opportunities so everyone can thrive regardless of gender, gender expression, and sexual orientation. ◦ Women that Build Awards: These awards are a way of inspiring and proving support to those women who can inspire others to join the science, technology, engineering and mathematics industry. ◦ She Leads: This program is designed for women and non-binary individuals at Globant who want to continue to acquire and build skills for their career development through mentoring sessions, storytelling workshops, and women's circles.
Through various training programs and initiatives, we aim to empower these individuals to thrive and unlock their maximum capabilities. • Women that Build Awards: These awards are a way of inspiring and providing support to those women who can inspire others to join the science, technology, engineering and mathematics industry. 36 • She Leads: This program is designed for women and non-binary individuals at Globant who want to continue to acquire and build skills for their career development through mentoring sessions, storytelling workshops, and women's circles.
CloudOps: Helping our customers embrace their cloud transformation journey By combining the best in cloud technologies, DevOps practices, and innovative capabilities we facilitate new and more efficient ways of doing business.
CloudOps: Helping our customers embrace their cloud transformation journey By combining the best in cloud technologies, DevOps practices, and innovative capabilities we facilitate new and more efficient ways of doing business for our clients. Cybersecurity: Building secure digital experiences We help organizations create secure digital experiences by improving the maturity of software development processes.
With 20+ years of Oracle experience in global enterprise transformation combining business consulting, AI/ML-enabled process transformation, organizational change management, and agile practices, we’re highly focused on assuring revenue streams, reducing costs, and optimizing operations.
Oracle: Empower companies' end-to-end sustainable value chain We help companies evolve the end-to-end value chain with Oracle applications, cloud platforms, and next generation technologies. With 20+ years of Oracle experience in global enterprise transformation combining business consulting, AI/ML-enabled process transformation, organizational change management, and agile practices, we’re highly focused on assuring revenue streams, reducing costs, and optimizing operations.
Colombia In Colombia, value-added tax is an indirect national tax levied on (i) services rendered in Colombia and from abroad; (ii) sales and imports of physical movable goods; (iii) sales or transfers of intangible assets related to industrial property; and (iv) gambling sales and operations, except for lotteries and online gambling.
Substitute taxpayers will assess and pay for applicable VAT, even in the cases in which it is impossible to withhold that tax from the non-Argentine resident. 48 Colombia In Colombia, VAT is an indirect national tax levied on (i) services rendered in Colombia and from abroad; (ii) sales and imports of physical movable goods; (iii) sales or transfers of intangible assets related to industrial property; and (iv) gambling sales and operations, except for lotteries and online gambling.
Entrepreneurship is one of our keys to success, and we encourage Globers to dream and create meaningful and rewarding experiences for our customers. We have our own accelerator for tech startups named Globant Ventures.
It was built by entrepreneurs and, over the years, many Globers have made a difference by creating and driving innovation. Entrepreneurship is one of our keys to success, and we encourage Globers to dream and create meaningful and rewarding experiences for our customers. We have our own accelerator for tech startups named Globant Ventures.
Argentine entities are subject to an integral inflation adjustment tax mechanism to the extent that the CPI exceeds 100% in the 36 previous months to the closing of each relevant fiscal year. For the fiscal years beginning on or after January 1, 2021, 100% of the tax inflation adjustment (negative or positive) would be allocated by fiscal year.
Argentine entities are subject to an integral inflation adjustment tax mechanism to the extent that the CPI exceeds 100% in the 36 previous months to the closing of each relevant fiscal year.
The region's professionals possess a breadth of skills that is optimally suited for providing technology services at competitive rates. In addition, institutions of higher education in the region offer rigorous academic programs to develop professionals with technical expertise who are competitive on a global scale.
In addition, institutions of higher education in the region offer rigorous academic programs to develop professionals with technical expertise who are competitive on a global scale.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Our future growth and success depend significantly on our ability to maintain the expertise of each of our Studios, to continue to innovate and to anticipate the needs of our clients and rapidly develop and maintain the expertise of each of our Studios, including relevant domain knowledge and technological capabilities required to meet those client needs, while maintaining our high standard of quality. • Our ability to recruit, retain and manage our IT professionals may have an effect on our gross profit margin and our results of operations.
Our future growth and success depend significantly on our ability to maintain the expertise of each of our Studios, to continue to innovate and to anticipate the needs of our clients and rapidly develop and maintain the expertise of each of our Studios, including relevant domain knowledge and technological capabilities required to meet those client needs, while maintaining our high standard of quality. 53 • Our ability to recruit, retain and manage our IT professionals may have an effect on our gross profit margin and our results of operations.
Cybersecurity Incident 63 As disclosed in our Report of Foreign Private Issuer furnished to the US Securities and Exchange Commission on March 30, 2022, on March 28, 2022, we detected suspicious activity on our network later determined to be unauthorized access to and exfiltration of certain source code and project-related documentation for certain clients, as well as certain data files.
Cybersecurity Incident As disclosed in our Report of Foreign Private Issuer furnished to the US Securities and Exchange Commission on March 30, 2022, on March 28, 2022, we detected suspicious activity on our network later determined to be unauthorized access to and exfiltration of certain source code and project-related documentation for certain clients, as well as certain data files.
Please refer to note 31 of our audited consolidated financial statements for further information. Equity Compensation Arrangements On July 3, 2014, our board of directors and shareholders approved and adopted the 2014 Equity Incentive Plan, which was amended on May 9, 2016, February 13, 2019, May 18, 2021 and June 8, 2022.
Please refer to note 31 of our audited consolidated financial statements for further information. 65 Equity Compensation Arrangements On July 3, 2014, our board of directors and shareholders approved and adopted the 2014 Equity Incentive Plan, which was amended on May 9, 2016, February 13, 2019, May 18, 2021 and June 8, 2022.
In accordance with applicable regulations, we notified relevant data privacy authorities of the incident. In addition, we have implemented a variety of measures to further enhance our cybersecurity protections. To date this incident has not had a material impact on our operations, and we are unaware of any material impact on our clients’ operations. A.
In accordance with applicable regulations, we notified relevant data privacy authorities of the incident. In addition, we have implemented a variety of measures to further enhance our cybersecurity protections. To date this incident has not had a material impact on our operations, and we are unaware of any material impact on our clients’ operations. 52 A.
We caution investors not to place undue reliance on 70 such non-IFRS measures, but instead to consider them with the most directly comparable IFRS measures. Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation.
We caution investors not to place undue reliance on such non-IFRS measures, but instead to consider them with the most directly comparable IFRS measures. Non-IFRS financial measures have limitations as analytical tools and should not be considered in isolation.
Trend Information See " Operating Results — Factors Affecting Our Results of Operations ." Other than as disclosed in this report, we are not aware of any trends, uncertainties, demands, commitments, or events since December 31, 2022 that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity, or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
Trend Information See " Operating Results — Factors Affecting Our Results of Operations ." Other than as disclosed in this report, we are not aware of any trends, uncertainties, demands, commitments, or events since December 31, 2023 that are reasonably likely to have a material adverse effect on our revenues, income, profitability, liquidity, or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
Eligible employees will receive a grant of stock-equivalent units with a unit value equal to the market value of one common share of the Company, to be settled in cash or common shares of the Company.
Eligible employees receive a grant of stock-equivalent units with a unit value equal to the market value of one common share of the Company, to be settled in cash or common shares of the Company.
For discussion related to cash flows from investing activities during 2021 compared to 2020, refer to Part I, Item 5. Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2021, which was filed with the SEC on February 28, 2022.
For discussion related to cash flows from investing activities during 2022 compared to 2021, refer to Part I, Item 5. Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022, which was filed with the SEC on February 28, 2023.
Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2021, which was filed with the SEC on February 28, 2022. Future Capital Requirements Our ability to generate cash is subject to our performance, general economic conditions, industry trends and other factors.
Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022, which was filed with the SEC on February 28, 2023. Future Capital Requirements Our ability to generate cash is subject to our performance, general economic conditions, industry trends and other factors.
Pursuant to the terms of the Second A&R Credit Agreement, interest on the loans extended thereunder shall accrue at a rate per annum equal to either (i) LIBOR plus 1.50%, or (ii) LIBOR plus 1.75%, determined based on the Borrower’s Maximum Total Leverage Ratio (as defined in the Second A&R Credit Agreement).
Pursuant to the terms of the Second A&R Credit Agreement, interest on the loans extended thereunder shall accrue at a rate per annum equal to either (i) LIBOR plus 1.50%, or (ii) LIBOR plus 1.75%, determined based on our Maximum Total Leverage Ratio (as defined in the Second A&R Credit Agreement).
C. Research and Development, Patents and Licenses, etc. See “ Information of the company - Business Overview — Intellectual Property .” D.
Research and Development, Patents and Licenses, etc. See “ Information of the company - Business Overview — Intellectual Property .” D.
Operating and Financial Review and Prospects, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2021, which was filed with the SEC on February 28, 2022.
Operating and Financial Review and Prospects, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022, which was filed with the SEC on February 28, 2023.
In addition, the Borrower may request increases of the maximum amount available under the revolving facility in an aggregate amount not to exceed $100 million. The maturity date of each of the facilities is February 5, 2025.
In addition, we may request increases of the maximum amount available under the revolving facility in an aggregate amount not to exceed $100 million. The maturity date of each of the facilities is February 5, 2025.
The Borrower’s obligations under the Second A&R Credit Agreement are guaranteed by the Company and its subsidiary, Globant España S.A., and are secured by substantially all of the Borrower’s now owned and after-acquired assets.
Globant, LLC’s obligations under the Second A&R Credit Agreement are guaranteed by the Company and its subsidiary, Globant España S.A., and are secured by substantially all of Globant, LLC’s now owned and after-acquired assets.
Contractual Obligations Set forth below is information concerning our fixed and determinable contractual obligations as of December 31, 2022 and the effect such obligations are expected to have on our liquidity and cash flows.
Contractual Obligations Set forth below is information concerning our fixed and determinable contractual obligations as of December 31, 2023 and the effect such obligations are expected to have on our liquidity and cash flows.
See note 26 to our audited consolidated financial statements. During 2022, we entered into several sales and purchase agreements to expand our service offering and capacity. Our business combinations activity resulted in cash outflows of $126 million. The fair value of the consideration recognized in our financial statements amounted to $59.7 million, based on target achievements and price adjustments.
Business Combinations During 2022, we entered into several share purchase agreements to expand our service offering and capacity. Our business combinations activity resulted in cash outflows of $126 million. The fair value of the consideration recognized in our financial statements amounted to $54.7 million, based on target achievements and price adjustments. See note 26 to our audited consolidated financial statements.
E. Critical Accounting Estimates See note 4 to our audited consolidated financial statements for the year ended December 31, 2022.
E. Critical Accounting Estimates See note 4 to our audited consolidated financial statements for the year ended December 31, 2023.
We believe that the most significant factors affecting our results of operations include: • market demand for integrated engineering, design and innovation technology services relating to emerging technologies and related market trends; • economic conditions in the industries and countries in which our clients operate and their impact on our clients' spending on technology services; • our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; • expansion of our service offerings and success in cross-selling new services to our clients; • our ability to obtain new clients, increase penetration levels with our existing clients and continue to add value for our existing clients so as to create long-term relationships; • the availability of, and our ability to attract, retain and efficiently utilize, skilled IT professionals in Latin America, India, Europe and the United States; • operating costs in countries where we operate; • capital expenditures related to the opening of new delivery centers and client management locations and improvement of existing offices; • our ability to increase our presence onsite at client locations; • the effect of wage inflation in countries where we operate and the variability in foreign exchange rates, especially relative changes in exchange rates between the U.S. dollar and the Argentine peso, Uruguayan peso, Mexican peso, Colombian peso and Indian rupees; and • our ability to identify, integrate and effectively manage businesses that we may acquire.
We believe that the most significant factors affecting our results of operations include: • market demand for integrated engineering, design and innovation technology services relating to emerging technologies and related market trends; • economic conditions in the industries and countries in which our clients operate and their impact on our clients' spending on technology services; • our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; • expansion of our service offerings and success in cross-selling new services to our clients; • our ability to obtain new clients, increase penetration levels with our existing clients and continue to add value for our existing clients so as to create long-term relationships; • the availability of, and our ability to attract, retain and efficiently utilize, skilled IT professionals in 30 countries where we are present; • operating costs in countries where we operate; • capital expenditures related to the opening of new delivery centers and client management locations and improvement of existing offices; • our ability to increase our presence onsite at client locations; • the effect of wage inflation in countries where we operate and the variability in foreign exchange rates, especially relative changes in exchange rates between the U.S. dollar and the Argentine peso, Uruguayan peso, Mexican peso, Colombian peso, Chilean peso and Brazilian real; and • our ability to identify, integrate and effectively manage businesses that we may acquire.
For further discussion of the 2014 Equity Incentive Plan, see “Compensation—2014 Equity Incentive Plan". In addition, on December 1, 2021, our compensation committee, as administrator, approved the granting of awards in the form of stock-equivalent units ("SEUs") and performance-based stock-equivalent units ("PSEUs") to be settled in cash or common shares, or a combination thereof, under the 2014 Equity Incentive Plan.
In addition, on December 1, 2021, our compensation committee, as administrator, approved the granting of awards in the form of stock-equivalent units ("SEUs") and performance-based stock-equivalent units ("PSEUs") to be settled in cash or common shares, or a combination thereof, under the 2014 Equity Incentive Plan.
The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition. During the years ended December 31, 2022 and 2021, we recorded a loss of $6.4 million and $7.6 million, respectively, related to the recognition of the allowance for expected credit losses.
The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition. During the years ended December 31, 2023 and 2022, we recorded a loss of $18.8 million and $6.4 million, respectively, related to the recognition of the allowance for expected credit losses.
Net Income for the Year As a result of the foregoing, we had a net income of $149.5 million for 2022, compared to $96.4 million for 2021. 2021 Compared to 2020 For discussion related to our financial condition, changes in financial condition, and the results of operations for 2021 compared to 2020, refer to Part I, Item 5.
Net Income for the Year As a result of the foregoing, we had a net income of $158.5 million for 2023, compared to $149.5 million for 2022. 2022 Compared to 2021 For discussion related to our financial condition, changes in financial condition, and the results of operations for 2022 compared to 2021, refer to Part I, Item 5.
In the event of any repatriation of funds or declaration of dividends from our subsidiaries, there will be a tax effect because dividends from certain foreign subsidiaries are subject to taxes. See " Additional Information — Taxation ".
In the event of any repatriation of funds or declaration of dividends from our subsidiaries, there will be a tax effect because dividends from certain foreign subsidiaries are subject to taxes.
For the year ended December 31, 2022, we had 1,249 customers with more than ten thousands U.S. dollars in revenue in the last twelve months.
For the year ended December 31, 2023, we had 1,610 customers with more than ten thousands U.S. dollars in revenue in the last twelve months.
As evidence of the increase in scope of engagement within our client base, the number of clients that each accounted for over $5.0 million of our annual revenues increased (65 in 2022 and 42 in 2021) and the number of clients that each accounted for at least $1.0 million of our annual revenues increased to 259 in 2022 from 185 in 2021.
As evidence of the increase in scope of engagement within our client base, the number of clients that each accounted for over $5.0 million of our annual revenues increased (80 in 2023 and 65 in 2022) and the number of clients that each accounted for at least $1.0 million of our annual revenues increased to 311 in 2023 from 259 in 2022.
Our IT professional headcount was 25,331 as of December 31, 2022, 22,167 as of December 31, 2021 and 15,290 as of December 31, 2020. We manage employee headcount and utilization based on ongoing assessments of our project pipeline and requirements for professional capabilities.
Our IT professional headcount was 27,116 as of December 31, 2023, 25,331 as of December 31, 2022 and 22,167 as of December 31, 2021. We manage employee headcount and utilization based on ongoing assessments of our project pipeline and requirements for professional capabilities.
There was also an increase of $13.5 million in depreciation and amortization related mainly to the intangibles recognized for the business combinations made during 2022 and 2021.
There was also an increase of $22.6 million in depreciation and amortization related mainly to the intangibles recognized for the business combinations made during 2023, 2022 and 2021.
Other financial results, net increased to a $0.2 million gain for the year ended December 31, 2022 from a $3.9 million loss for the year ended December 31, 2021, primarily reflecting a foreign exchange loss of $6.7 million compared to a gain of $3.9 million in 2021, a loss of $7.5 million net related to losses from financial assets measured at fair value through profit or loss compared to a loss of $8.5 million in 2021 and a gain on transactions with bonds of $13.9 million compared to a gain of $0.7 million in 2021.
Other financial results, net increased to a $11.3 million gain for the year ended December 31, 2023 from a $0.2 million gain for the year ended December 31, 2022, primarily reflecting a foreign exchange loss of $22.0 million compared to a loss of $6.7 million in 2022, a gain of $23.6 million net related to gain from financial assets measured at fair value through profit or loss compared to a loss of $7.5 million in 2022 and a gain on transactions with bonds of $9.2 million compared to a gain of $13.9 million in 2022. 58 Other Income and Expenses, Net Other income and expenses, net increased to a gain of $6.6 million for the year ended December 31, 2023 from a loss of $0.4 million for the year ended December 31, 2022.
Included in salaries are base salary, incentive-based compensation, employee benefits costs and social security taxes. Salaries of our IT professionals are allocated to cost of revenues regardless of whether they are actually performing services during a given period.
Cost of Revenues The principal components of our cost of revenues are salaries, professional services and share-based compensation plans (equity settled). Included in salaries are base salary, incentive-based compensation, employee benefits costs and social security taxes. Salaries of our IT professionals are allocated to cost of revenues regardless of whether they are actually performing services during a given period.
Most of these awards were comprised of 50% RSUs and 50% PRSUs. RSUs and PRSUs have generally been granted with a vesting period of four years, 25% becoming vested on or about each anniversary of the grant date.
RSUs and PRSUs have generally been granted with a vesting period of four years, 25% becoming vested on or about each anniversary of the grant date.
For the year ended December 31, 2022, revenues increased by 37.3% to $1.8 billion from $1.3 billion for the year ended December 31, 2021. We discuss below the breakdown of our revenues by contract type, client location, industry vertical and client concentration.
For the year ended December 31, 2023, revenues increased by 17.7% to $2.1 billion from $1.8 billion for the year ended December 31, 2022. We discuss below the breakdown of our revenues by contract type, client location, industry vertical and client concentration.
We may also require cash to fund acquisitions of businesses. Our primary working capital requirements are to finance our payroll-related liabilities during the period from delivery of our services through invoicing and collection of trade receivables from clients.
Our primary cash needs are for capital expenditures (consisting of additions to property and equipment and to intangible assets) and working capital. We may also require cash to fund acquisitions of businesses. Our primary working capital requirements are to finance our payroll-related liabilities during the period from delivery of our services through invoicing and collection of trade receivables from clients.
Investing Activities Net cash of $269.3 million was used in investing activities for the year ended December 31, 2022, as compared to $272.9 million of net cash used in investing activities during the year ended December 31, 2021.
Investing Activities Net cash of $350.4 million was used in investing activities for the year ended December 31, 2023, as compared to $269.3 million of net cash used in investing activities during the year ended December 31, 2022.
For further discussion of the Software Promotion Law, see " Information of the Company - Business Overview — Government Support and Incentives ." Certain Income Statement Line Items 2022 Compared to 2021 Revenues Revenues are derived primarily from providing technology services to our clients, which are medium to large-sized companies mainly based in North America, Europe, Asia and Latin America.
For further discussion of the Software Promotion Law, see " Information of the Company - Business Overview — Government Support and Incentives ." Certain Income Statement Line Items 2023 Compared to 2022 Revenues Revenues are derived primarily from providing technology services to our clients, which are medium to large-sized companies globally.
Our non-IFRS measures of adjusted gross profit and adjusted SG&A expenses exclude the impact of certain items, such as depreciation and amortization expense, share-based compensation expense and, only with respect to adjusted SG&A expenses, acquisition-related charges and COVID-19 related charges.
Our non-IFRS measures of adjusted gross profit and adjusted SG&A expenses exclude the impact of certain items, such as depreciation and amortization expense, share-based compensation expense and, only with respect to adjusted SG&A expenses, acquisition-related charges and COVID-19 related charges. 59 Adjusted Profit from Operations We utilize the non-IFRS measure of adjusted profit from operations as a supplemental measure for period-to-period comparisons.
Financing Activities Net cash of $65.7 million was used in financing activities for the year ended December 31, 2022, as compared to $244.0 million of net cash provided by financing activities for the year ended December 31, 2021. During the year ended December 31, 2022, we received $3.2 million for the issuance of shares under our share-based compensation plan.
Financing Activities Net cash of $44.5 million was provided by financing activities for the year ended December 31, 2023, as compared to $65.7 million of net cash used in financing activities for the year ended December 31, 2022. During the year ended December 31, 2023, we received $1.8 million for the issuance of shares under our share-based compensation plan.
Additionally, during the year ended December 31, 2022 we paid $10.8 million net of borrowings, $37.4 million of lease liabilities, $15.5 million in acquisition-related transactions, and $5.2 million of put option to acquire non-controlling interest. For discussion related to cash flows from financing activities during 2021 compared to 2020, refer to Part I, Item 5.
Additionally, during the year ended December 31, 2023 we received $119.7 million net of borrowings, we paid $44.8 million of lease liabilities, $28.3 million in acquisition-related transactions and $3.9 million of put option to acquire non-controlling interest. For discussion related to cash flows from financing activities during 2022 compared to 2021, refer to Part I, Item 5.
Business Combinations During 2021, we entered into several sales and purchase agreements to expand our service offering and capacity. Our business combinations activity resulted in cash outflows of $145 million. The fair value of the consideration recognized in our financial statements amounted to $58.2 million, based on target achievements and price adjustments.
During 2023, we entered into several share purchase agreements to expand our service offering and capacity. Our business combinations activity resulted in cash outflows of $254 million. The fair value of the consideration recognized in our financial statements amounted to $95.2 million, based on target achievements and price adjustments. See note 26 to our audited consolidated financial statements.
The ESPP provides such eligible employees with an opportunity to acquire a proprietary interest in the Company through the purchase of the Company’s common shares payable by means of payroll deductions. As of the date of this annual report, we have delivered 46,589 common shares under the plan. For further discussion of the ESPP, see “Employees—2021 Employee Stock Purchase Plan".
The ESPP provides such eligible employees with an opportunity to acquire a proprietary interest in the Company through the purchase of the Company’s common shares payable by means of payroll deductions. As of December 31, 2023, we have delivered 94,745 common shares under the plan. For further discussion of the ESPP, see “ Employees —2021 Employee Stock Purchase Plan". C.
In addition, there was a $9.6 million increase in professional services related to consulting tax matters and legal and audit fees, also increase in subscriptions and license expenses and the impact of the acquired companies during 2022.
In addition, there was a $9.4 million increase in professional services related to consulting tax matters and legal and audit fees, also increase in subscriptions and license expenses and the impact of the acquired companies during 2023. Selling, general and administrative expenses as a percentage of revenues was 25.6% for both 2023 and for 2022.
The increase of the allowance for expected credit losses was mainly attributable to the impact of factors that are specific to debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date.
The increase of the allowance for expected credit losses was mainly attributable to the impact of factors that are specific to debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date. Finance Income Finance income consists of interest gains on time deposits, financed customers and savings accounts.
This increase of $18.6 million in net cash provided by operating activities was primarily attributable to a $105.3 million increase in profit before income tax 74 expense adjusted for non-cash-items, a $90.4 million decrease in working capital, a $6.4 million decrease in the utilization of provision for contingencies and a $2.7 million increase in income tax payments.
This increase of $121.0 million in net cash provided by operating activities was primarily attributable to a $49.4 million increase in profit before income tax expense adjusted for non-cash-items, a $66.0 million decrease in working capital, a $1.5 million decrease in the utilization of provision for contingencies and a $4.1 million decrease in income tax payments.
On March 1, 2021, our board of directors adopted an Employee Stock Purchase Plan (the "ESPP"). The purpose of the ESPP is to advance the interests of the Company and our shareholders by providing an incentive to attract, retain and reward our eligible employees and by motivating such persons to contribute to the growth and profitability of the Company.
The purpose of the ESPP is to advance the interests of the Company and our shareholders by providing an incentive to attract, retain and reward our eligible employees and by motivating such persons to contribute to the growth and profitability of the Company.
Year ended December 31, 2022 2021 (in millions, except percentages) Amount Variation Amount Variation Main variations in cost of revenues Salaries, employee benefits and social security taxes $ (1,014.5) 36.1 % $ (745.3) 56.4 % Professional services $ (37.3) 55.5 % $ (24.0) 263.5 % The increase in salaries, employee benefits and social security taxes is primarily attributable to the net addition of 3,164 IT professionals since December 31, 2021, an increase of 14.3%, to satisfy growing demand for our services, which translated into an increase in salaries.
Year ended December 31, 2023 2022 (in millions, except percentages) Amount Variation Amount Variation Main variations in cost of revenues Salaries, employee benefits and social security taxes $ (1,158.7) 14.2 % $ (1,014.5) 36.1 % Professional services (104.9) 181.3 % (37.3) 55.5 % Share-based compensation expense - Equity settled (15.2) 208.2 % (4.9) 37.8 % The increase in salaries, employee benefits and social security taxes is primarily attributable to the net addition of 1,785 IT professionals since December 31, 2022, an increase of 7.0%, to satisfy growing demand for our services, which translated into an increase in salaries.
Changes in working capital in the year ended December 31, 2022 consisted primarily of a $104.3 million increase in trade receivables, a $21.0 million increase in other receivables, a $9.4 million increase in other assets, a $2.7 million decrease in trade payables, a $0.3 million increase in tax liabilities, and $13.4 million increase in payroll and social security taxes payable.
Changes in working capital in the year ended December 31, 2023 consisted primarily of a $44.3 million increase in trade receivables, a $16.6 million decrease in other receivables, a $10.0 million increase in other assets, a $19.0 million increase in trade payables, a $1.7 million decrease in tax liabilities, and $37.4 million decrease in payroll and social security taxes payable.
The following table sets forth revenues by client location by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2022 2021 (in thousands, except percentages) By Geography North America $ 1,135,148 63.8 % $ 831,300 64.1 % Europe, Middle East & Africa 186,723 10.5 % 151,334 11.7 % Asia & Oceania 50,018 2.8 % 26,129 2.0 % Latin America 408,354 22.9 % 288,315 22.2 % Revenues $ 1,780,243 100.0 % $ 1,297,078 100.0 % Revenues by Industry Vertical We are a provider of technology services to enterprises in a range of industry verticals including media and entertainment, professional services, technology and telecommunications, travel and hospitality, banks, financial services and insurance, consumer, retail and manufacturing and health care, among others.
The following table sets forth revenues by client location by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2023 2022 (in thousands, except percentages) By Geography North America $ 1,245,972 59.5 % $ 1,135,148 63.8 % Latin America 463,223 22.1 % 408,354 22.9 % Europe, Middle East & Africa 323,546 15.4 % 186,723 10.5 % Asia & Oceania 63,198 3.0 % 50,018 2.8 % Revenues $ 2,095,939 100.0 % $ 1,780,243 100.0 % Revenues by Industry Vertical We are a provider of technology services to enterprises in a range of industry verticals including media and entertainment, banks, financial services and insurance, and consumer, retail and manufacturing, among others.
Cash Flows The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated: For the year ended December 31, 2022 2021 (In thousands) Net cash provided by operating activities $ 197,524 $ 178,974 Net cash used in investing activities (269,304) (272,880) Net cash (used in) provided by financing activities (65,680) 243,986 Cash and cash equivalents at beginning of the year 427,804 278,939 Cash and cash equivalents at end of the year 290,344 429,019 Net (decrease) increase in Cash and cash equivalents at end of year (137,460) 150,080 Operating Activities Net cash provided by operating activities was generated primarily by profits before taxes adjusted for non-cash items, including depreciation and amortization expense, shared-based compensation expense and the effect of working capital changes.
Cash Flows The following table summarizes our cash flows from operating, investing and financing activities for the periods indicated: For the year ended December 31, 2023 2022 (In thousands) Net cash provided by operating activities $ 318,524 $ 197,524 Net cash used in investing activities (350,361) (269,304) Net cash provided by (used in) financing activities 44,530 (65,680) Cash and cash equivalents at beginning of the year 292,457 427,804 Cash and cash equivalents at end of the year 305,150 290,344 Net increase (decrease) in Cash and cash equivalents at end of year 12,693 (137,460) Operating Activities Net cash provided by operating activities was generated primarily by profits before taxes adjusted for non-cash items, including depreciation and amortization expense, shared-based compensation expense and the effect of working capital changes. 63 Net cash provided by operating activities was $318.5 million for the year ended December 31, 2023, as compared to net cash provided in operating activities of $197.5 million for the year ended December 31, 2022.
The following table sets forth revenues contributed by our largest client, top five clients, top ten clients and top twenty clients by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2022 2021 (in thousands, except percentages) Client concentration Top client $ 191,191 10.7 % $ 141,100 10.9 % Top five clients 456,217 25.6 % 345,835 26.7 % Top ten clients 633,150 35.6 % 506,572 39.1 % Top twenty clients 812,419 45.6 % 674,883 52.0 % Our top ten customers for the year ended December 31, 2022 have been working with us for, on average, eleven years.
The following table sets forth revenues contributed by our largest client, top five clients, top ten clients and top twenty clients by amount and as a percentage of our revenues for the years indicated: Year ended December 31, 2023 2022 (in thousands, except percentages) Client concentration Top client $ 183,207 8.7 % $ 191,191 10.7 % Top five clients 480,751 22.9 % 456,217 25.6 % Top ten clients 670,907 32.0 % 633,150 35.6 % Top twenty clients 877,926 41.9 % 812,419 45.6 % Our top ten customers for the year ended December 31, 2023 have been working with us for, on average, eleven years.
Adjusted gross profit margin was 39.2%, 39.5% and 39.1% for the years ended December 31, 2022, 2021 and 2020, respectively. • Our ability to deepen and expand the portfolio of services we offer while maintaining our high standard of quality. The breadth and depth of the services we offer impact our ability to grow revenues from new and existing clients.
Gross profit margin was 36.1%, 37.6% and 38.2% for the years ended December 31, 2023, 2022 and 2021, respectively and adjusted gross profit margin was 38.1%, 39.2% and 39.5% for the years ended December 31, 2023, 2022 and 2021, respectively. • Our ability to deepen and expand the portfolio of services we offer while maintaining our high standard of quality.
On February 6, 2020, the Borrower, entered into the Second A&R Credit Agreement (as amended in October 2021), pursuant to which the Borrower may borrow (i) up to $100 million in up to four borrowings on or prior to April 1, 2022 under a delayed-draw term loan facility and (ii) up to $250 million under a revolving credit facility.
We cannot assure you that we would be able to raise additional funds on favorable terms or at all. 64 On February 6, 2020, Globant, LLC entered into the Second A&R Credit Agreement (as amended in October 2021), pursuant to which we may borrow (i) up to $100 million in up to four borrowings on or prior to April 1, 2022 under a delayed-draw term loan facility and (ii) up to $250 million under a revolving credit facility.
These awards will vest in two equal tranches, the first occurring immediately after the date in which the vesting condition is satisfied and the second occurring on the first anniversary of such vesting event. As of December 31, 2022, the Company granted 597,521 of these awards.
The awards were granted 50% in the form of PRSUs and 50% in the form of RSUs. These awards will vest in two equal tranches, the first occurring immediately after the date in which the vesting condition is satisfied and the second occurring on the first anniversary of such vesting event.
Year ended December 31, 2022 2021 (in millions, except percentages) Amount Variation Amount Variation Main variations in Selling, General and Administrative Expenses Salaries, employee benefits and social security taxes $ (173.5) 24.6 % $ (139.3) 61.3 % Share-based compensation expense (52.1) 34.3 % (38.8) 89.3 % Professional services (40.5) 31.1 % (30.9) 34.0 % Depreciation and amortization expense (59.2) 29.5 % (45.7) 116.9 % Promotional and marketing expenses (27.0) 162.1 % (10.3) 192.8 % The increase of salaries, employee benefits, social security taxes and share based compensation was primarily attributable to the addition of sales and management executives.
Year ended December 31, 2023 2022 (in millions, except percentages) Amount Variation Amount Variation Main variations in Selling, General and Administrative Expenses Salaries, employee benefits and social security taxes $ (212.4) 22.4 % $ (173.5) 24.6 % Professional services (49.9) 23.1 % (40.5) 31.1 % Depreciation and amortization expense (81.8) 38.3 % (59.2) 29.5 % 57 The increase of salaries, employee benefits, social security taxes and share based compensation was primarily attributable to the addition of sales and management executives.
Under the terms of our 2014 Equity Incentive Plan, we have granted to eligible employees 57,779 SEUs and PSEUs, net of any cancelled and/or forfeited awards, all of which were outstanding as of December 31, 2022.
Under the terms of our 2014 Equity Incentive Plan, until December 31, 2023 we have granted to eligible employees 37,983 SEUs and PSEUs, net of any cancelled and/or forfeited awards.
Finance Expense Finance expense includes the interests from borrowings, leases contracts, banking fees and other finance expenses. The increase of finance expense up to $16.6 million for the year ended December 31, 2022 from $12.7 million for the year ended December 31, 2021 was due to an increase in interest on lease liabilities and borrowings interests.
The increase of finance expense up to $23.8 million for the year ended December 31, 2023 from $16.6 million for the year ended December 31, 2022 was due to an increase in interest on lease liabilities and borrowings interests.
Our cost of revenues has increased in recent years in line with the growth in our revenues and reflects the expansion of our operations in Spain, Argentina, Uruguay, Colombia, Peru, Mexico, India and the United States primarily due to increases in salary costs, an increase in the number of our IT professionals and the opening of new delivery centers.
Also included in cost of revenues is the portion of depreciation and amortization expense attributable to the portion of our property and equipment, right of use assets and intangible assets utilized in the delivery of services to our clients. 56 Our cost of revenues has increased in recent years in line with the growth in our revenues and reflects the expansion of our operations in Argentina, Brazil, Chile, Colombia, India, Mexico, Peru, Spain, United States and Uruguay primarily due to increases in salary costs, an increase in the number of our IT professionals and the opening of new delivery centers.
Income Tax Expense See " Consolidated Financial Statements as of December 31, 2022 and December 31, 2021 and for each of the three years in the period ended December 31, 2022 — Summary of Significant Accounting Policies — Taxation —Current Income Tax ".
Such increase is mainly explained by the remeasurement of contingent consideration related to the business combinations. Income Tax Expense See " Consolidated Financial Statements as of December 31, 2023 and December 31, 2022 and for each of the three years in the period ended December 31, 2023 — Summary of Significant Accounting Policies — Taxation —Current Income Tax ".
Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2021, which was filed with the SEC on February 28, 2022.
For discussion related to cash flows from operating activities during 2022 compared to 2021, refer to Part I, Item 5. Liquidity and Capital Resources, in our Annual Report on Form 20-F for the fiscal year ended December 31, 2022, which was filed with the SEC on February 28, 2023.
Our non-IFRS measures of adjusted diluted EPS and adjusted net income exclude the impact of certain items, such as acquisition-related charges, impairment of assets, net of recoveries, share-based compensation expense, COVID-19 related charges and the tax effects of non-IFRS adjustments. 71 Year ended December 31, 2022 2021 2020 Reconciliation of adjusted gross profit Gross profit $ 669,395 $ 494,988 $ 304,327 Adjustments Depreciation and amortization expense 23,312 14,122 9,759 Share-based compensation expense 4,917 3,568 4,109 Adjusted gross profit $ 697,624 $ 512,678 $ 318,195 Reconciliation of adjusted selling, general and administrative expenses Selling, general and administrative expenses $ (456,324) $ (343,004) $ (217,222) Adjustments Depreciation and amortization expense 62,822 48,796 22,691 Share-based compensation expense - Equity settled 50,296 35,831 20,519 Acquisition-related charges, net (1) 13,612 12,860 10,096 COVID-19 related charges (2) — — (613) Adjusted selling, general and administrative expenses $ (329,594) $ (245,517) $ (164,529) Reconciliation of adjusted profit from operations Profit from operations $ 206,707 $ 144,433 $ 83,942 Adjustments Share-based compensation expense - Equity settled 55,213 39,399 24,628 Impairment of assets — — (8) Acquisition-related charges, net (1) 27,456 28,271 12,754 COVID-19 related charges (2) — 2,228 2,582 Impairment of assets (3) — — 83 Adjusted profit from operations $ 289,376 $ 214,331 $ 123,981 Reconciliation of adjusted net income for the year Net income for the year $ 148,891 $ 96,065 $ 54,217 Adjustments Share-based compensation expense - Equity settled 55,213 39,399 24,628 Impairment of assets — — (8) Acquisition-related charges, net (1) 28,765 35,465 15,796 COVID-19 related charges (2) — 2,228 2,582 Impairment of assets (3) — — 83 Tax effects of non-IFRS adjustments (4) (15,146) (14,748) (6,712) Adjusted net income for the year $ 217,723 $ 158,409 $ 90,586 Calculation of adjusted diluted EPS Adjusted net income 217,723 158,409 90,586 Diluted shares 42,855 42,076 39,717 Adjusted diluted EPS 5.08 3.76 2.28 Other data: Adjusted gross profit 697,624 512,678 318,195 Adjusted gross profit margin percentage 39.2 % 39.5 % 39.1 % Adjusted selling, general and administrative expenses (329,594) (245,517) (164,529) Adjusted selling, general and administrative expenses margin percentage (18.5) % (18.9) % (20.2) % Adjusted profit from operations 289,376 214,331 123,981 Adjusted profit from operations margin percentage 16.3 % 16.5 % 15.2 % Adjusted net income for the year 217,723 158,409 90,586 Adjusted net income margin percentage for the year 12.2 % 12.2 % 11.1 % 72 (1) Acquisition-related expenses include, when applicable, amortization of purchased intangible assets included in depreciation and amortization expense line on our consolidated statements of comprehensive income, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, expenses for impairment of acquired intangible assets and other acquisition-related costs .
Our non-IFRS measures of adjusted diluted EPS and adjusted net income exclude the impact of certain items, such as acquisition-related charges, impairment of assets, net of recoveries, share-based compensation expense, COVID-19 related charges and the tax effects of non-IFRS adjustments. 60 Year ended December 31, 2023 2022 2021 Reconciliation of adjusted gross profit Gross profit $ 755,761 $ 669,395 $ 494,988 Adjustments Depreciation and amortization expense 28,597 23,312 14,122 Share-based compensation expense - Equity settled 15,155 4,917 3,568 Adjusted gross profit $ 799,513 $ 697,624 $ 512,678 Reconciliation of adjusted selling, general and administrative expenses Selling, general and administrative expenses $ (537,075) $ (456,324) $ (343,004) Adjustments Depreciation and amortization expense 85,584 62,822 48,796 Share-based compensation expense - Equity settled 57,016 50,296 35,831 Acquisition-related charges, net (1) 21,092 13,612 12,860 Adjusted selling, general and administrative expenses $ (373,383) $ (329,594) $ (245,517) Reconciliation of adjusted profit from operations Profit from operations $ 198,962 $ 206,707 $ 144,433 Adjustments Share-based compensation expense - Equity settled 72,171 55,213 39,399 Acquisition-related charges, net (1) 46,993 27,456 28,271 COVID-19 related charges (2) — — 2,228 Adjusted profit from operations $ 318,126 $ 289,376 $ 214,331 Reconciliation of adjusted net income for the year Net income for the year $ 158,538 $ 148,891 $ 96,065 Adjustments Share-based compensation expense - Equity settled 72,099 55,213 39,399 Acquisition-related charges, net (1) 48,205 28,765 35,465 COVID-19 related charges (2) — — 2,228 Tax effects of non-IFRS adjustments (28,724) (15,146) (14,748) Adjusted net income for the year $ 250,118 $ 217,723 $ 158,409 Calculation of adjusted diluted EPS Adjusted net income 250,118 217,723 158,409 Diluted shares 43,594 42,855 42,076 Adjusted diluted EPS 5.74 5.08 3.76 Other data: Adjusted gross profit 799,513 697,624 512,678 Adjusted gross profit margin percentage 38.1 % 39.2 % 39.5 % Adjusted selling, general and administrative expenses (373,383) (329,594) (245,517) Adjusted selling, general and administrative expenses margin percentage (17.8) % (18.5) % (18.9) % Adjusted profit from operations 318,126 289,376 214,331 Adjusted profit from operations margin percentage 15.2 % 16.3 % 16.5 % Adjusted net income for the year 250,118 217,723 158,409 Adjusted net income margin percentage for the year 11.9 % 12.2 % 12.2 % (1) Acquisition-related charges include, when applicable, amortization of purchased intangible assets included in depreciation and amortization expense line on our consolidated statements of comprehensive income, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, charges for impairment of acquired intangible assets and other acquisition-related costs . 61 (2) COVID-19 related expenses include, when applicable, bad debt provision related to the effect of the COVID-19 pandemic on our clients’ businesses, donations and other expenses directly attributable to the pandemic that are both incremental to expenses incurred prior to the outbreak and not expected to recur once the crisis has subsided and operations return to normal and clearly separable from normal operations.
During the year ended December 31, 2022, we invested $3.9 million in mutual funds, T-bills, sovereign bonds and commercial papers, we invested $95.4 million in fixed and intangible assets, $156.9 million in acquisition-related transactions, and we made payments of $13.1 million related to future and forward contracts.
During the year ended December 31, 2023, we received $38.4 million in mutual funds, T-bills and commercial papers, we invested $126.5 million in fixed and intangible assets, $271.7 million in acquisition-related transactions, and we received $9.5 million related to future and forward contracts.
If we raise cash through the issuance of indebtedness, we may be subject to additional contractual restrictions on our business. We cannot assure you that we would be able to raise additional funds on favorable terms or at all.
If we raise cash through the issuance of indebtedness, we may be subject to additional contractual restrictions on our business.
Revenues by Client Concentration We have increased our revenues by expanding the scope and size of our engagements, and we have grown our key client base primarily through our business development efforts and referrals from our existing clients.
Other industry verticals experienced a slight decrease, attributed to the completion of one-off projects in the education industry during 2023. 55 Revenues by Client Concentration We have increased our revenues by expanding the scope and size of our engagements, and we have grown our key client base primarily through our business development efforts and referrals from our existing clients.
Through 64 research and development, targeted hiring and strategic acquisitions, we have invested in broadening and deepening the domains of expertise of our Studios.
The breadth and depth of the services we offer impact our ability to grow revenues from new and existing clients. Through research and development, targeted hiring and strategic acquisitions, we have invested in broadening and deepening the domains of expertise of our Studios.
All stock-equivalent units were granted 50% in the form of PSEUs and 50% in the form of SEUs, each with a vesting period of four years, 25% becoming exercisable on or about each anniversary of the grant date. For further discussion of the 2014 Equity Incentive Plan, see “Compensation—2014 Equity Incentive Plan".
All stock-equivalent units were granted 50% in the form of PSEUs and 50% in the form of SEUs, each with a vesting period of four years, 25% becoming exercisable on or about each anniversary of the grant date. There were 28,059 and 57,779 SEUs and PSEUs outstanding as of December 31, 2023 and 2022, respectively.
Under the terms of our 2014 Equity Incentive Plan, from its adoption until the date of this annual report, we have granted to members of our senior management and certain other employees 30,000 stock awards, options to purchase 2,248,122 common shares and 2,240,261 RSUs and PRSUs, net of any cancelled and/or forfeited awards. 76 During the twelve months ended December 31, 2022, the Company granted a total of 199,825 awards under the Company's 2014 Equity Incentive Plan, net of cancelled and forfeited awards.
Fair value is calculated using the Black-Scholes option pricing model. Under the terms of our 2014 Equity Incentive Plan, from its adoption until December 31, 2023, we have granted to members of our senior management and certain other employees 30,000 stock awards, options to purchase 2,248,122 common shares and 2,584,777 RSUs and PRSUs, net of any cancelled and/or forfeited awards.
For the year 2022, we derived 86.7% of our revenues from clients in North America and Latin America pursuant to contracts that are entered into by our subsidiaries located in the United States, Argentina, Chile, Mexico, and Peru. Our primary cash needs are for capital expenditures (consisting of additions to property and equipment and to intangible assets) and working capital.
B. Liquidity and Capital Resources Capital Resources Our primary sources of liquidity are cash flows from operating activities. For the year 2023, we derived 81.6% of our revenues from clients in North America and Latin America pursuant to contracts that are entered into by our subsidiaries located in the United States, Argentina, Chile, Mexico, Brazil, Canada, Peru and Colombia.
As a client relationship matures and deepens, we seek to maximize our revenues and profitability by expanding the scope of services offered to that client and achieving higher profit margin assignments.
As a client relationship matures and deepens, we seek to maximize our revenues and profitability by expanding the scope of services offered to that client and achieving higher profit margin assignments. During the three-year period ended December 31, 2023, we increased our revenues attributable to sales of technology solutions (primarily through digital transformation, data and cloud strategies).
The Second A&R Credit Agreement also contains certain customary negative and affirmative covenants, which compliance may limit our flexibility in operating our business and our ability to take actions that might be advantageous to us and our shareholders. 75 On June 2, 2022 we entered into a Third Amended and Restated Credit Agreement with HSBC, pursuant to which the LIBOR rate was replaced by a Secured Overnight Financing Rate ("SOFR") plus 0.10%.
The Second A&R Credit Agreement also contains certain customary negative and affirmative covenants, which compliance may limit our flexibility in operating our business and our ability to take actions that might be advantageous to us and our shareholders.
The following table sets forth our historical capital expenditures for the years ended December 31, 2022 and 2021: 73 Year ended December 31, 2022 2021 (In thousands) Total fixed assets acquisitions $ 54,482 $ 52,961 Total intangible assets acquisitions 128,944 52,449 Additions related to business combinations (83,578) (15,785) Total Capital Expenditures 99,848 89,625 Investments During 2021, we invested $89.6 million in capital expenditures primarily made to complete or develop our works on our delivery centers in Argentina: Buenos Aires and Tandil; Colombia: Bogota; India: Pune; Belarus: Minsk; and Spain: Madrid.
See " Additional Information — Taxation ". 62 The following table sets forth our historical capital expenditures for the years ended December 31, 2023 and 2022: Year ended December 31, 2023 2022 (In thousands) Total fixed assets acquisitions $ 34,008 $ 54,482 Total intangible assets acquisitions 116,638 129,904 Additions related to business combinations (40,182) (84,538) Total Capital Expenditures 110,464 99,848 Investments During 2022, we invested $99.8 million in capital expenditures primarily made to complete or develop our works on our delivery centers in Argentina: Buenos Aires and Tandil; India: Pune; and United Kingdom: London.
Adjusted diluted EPS and adjusted net income are most directly comparable to the IFRS measures of EPS and net income, respectively.
Adjusted Diluted EPS and Adjusted Net Income We utilize non-IFRS measures of adjusted diluted EPS and adjusted net income for strategic decision making, forecasting future results and evaluating current performance. Adjusted diluted EPS and adjusted net income are most directly comparable to the IFRS measures of EPS and net income, respectively.
Our focus on delivering quality to our clients is reflected in the fact that existing clients from 2021 contributed 90.5% of our revenues in 2022.
An increase in revenues from our top ten clients in 2023 reflects our ability to increase the scope of our engagement with our main customers. Our focus on delivering quality to our clients is reflected in the fact that existing clients from 2022 contributed 89.6% of our revenues in 2023.
Our effective tax rate (calculated as income tax gain or expense divided by the profit before income tax) decreased to 22.5% for 2022 from 22.8% for 2021, primarily due to changes in the geographic distribution of earnings.
Income tax expense amounted to $39.5 million for 2023, a decrease of $3.9 million from a $43.4 million income tax expense for 2022. Our effective tax rate (calculated as income tax gain or expense divided by the profit before income tax) decreased to 20.0% for 2023 from 22.5% for 2022.
Finance Income 69 Finance income consists of interest gains on time deposits, financed customers and savings accounts. The increase of finance income up to $2.8 million for the year ended December 31, 2022 from $0.7 million for the year ended December 31, 2021 was primarily attributable to accrued interests from savings accounts.
The increase of finance income up to $4.8 million for the year ended December 31, 2023 from $2.8 million for the year ended December 31, 2022 was primarily attributable to accrued interests from savings accounts. Finance Expense Finance expense includes the interests from borrowings, leases contracts, banking fees and other finance expenses.
The following table sets forth our revenues by amount and as a percentage of our revenues by industry vertical for the periods indicated: Year ended December 31, 2022 2021 (in thousands, except percentages) By Industry Vertical Media and Entertainment $ 376,134 21.1 % $ 272,703 21.0 % Banks, Financial Services and Insurance 359,940 20.2 % 308,227 23.8 % Consumer, Retail & Manufacturing 254,500 14.3 % 197,620 15.2 % Technology & Telecommunications 250,299 14.1 % 155,665 12.0 % Professional Services 235,553 13.2 % 167,997 13.0 % Travel & Hospitality 139,170 7.8 % 87,567 6.8 % Health Care 128,669 7.2 % 96,334 7.4 % Other Verticals 35,978 2.1 % 10,965 0.8 % Total $ 1,780,243 100.0 % $ 1,297,078 100.0 % The increase in revenues from clients in the media and entertainment industry vertical was primarily attributable to a higher demand for our gaming services, scalable platforms and user interface solutions.
The following table sets forth our revenues by amount and as a percentage of our revenues by industry vertical for the periods indicated: Year ended December 31, 2023 2022 (in thousands, except percentages) By Industry Vertical Media and Entertainment $ 454,380 21.7 % $ 376,134 21.1 % Banks, Financial Services and Insurance 385,207 18.4 % 359,940 20.2 % Consumer, Retail & Manufacturing 351,880 16.8 % 254,500 14.3 % Professional Services 261,233 12.5 % 235,553 13.2 % Technology & Telecommunications 255,238 12.2 % 250,299 14.1 % Travel & Hospitality 187,346 8.9 % 139,170 7.8 % Health Care 167,705 8.0 % 128,669 7.2 % Other Verticals 32,950 1.5 % 35,978 2.1 % Total $ 2,095,939 100.0 % $ 1,780,243 100.0 % The Media and Entertainment industry vertical, our largest industry vertical, energized by digital consumption trends at our biggest client and our efforts in the Sports and Entertainment segment, resulting in positive yearly revenue expansion.
Year ended December 31, 2022 2021 (in thousands, except percentages) By Contract Time & Materials $ 1,472,894 82.7 % $ 1,062,171 81.9 % Fixed Price 273,344 15.4 % 218,846 16.9 % Subscription resales 33,963 1.9 % 16,039 1.2 % Others 42 — % 22 — % Revenues $ 1,780,243 100.0 % $ 1,297,078 100.0 % 65 Revenues by Client Location Our revenues are sourced from three main geographic markets: North America (primarily the United States), Europe (primarily Spain and the United Kingdom), Middle East & Africa, and Latin America (primarily Argentina, Brazil, Chile and Mexico).
Year ended December 31, 2023 2022 (in thousands, except percentages) By Contract Time & Materials $ 1,654,280 78.9 % $ 1,475,848 82.9 % Fixed Price 383,867 18.3 % 273,344 15.4 % Licenses, resales & Others 57,792 2.8 % 31,051 1.7 % Revenues $ 2,095,939 100.0 % $ 1,780,243 100.0 % 54 Revenues by Client Location Our revenues are sourced from the following four regions: North America (top markets: the United States and Canada), Latin America (top markets: Argentina and Chile), Europe, Middle East & Africa (top markets: Spain and United Kingdom) and Asia & Oceania (top markets: India and Japan).
The following table shows the distribution of our clients by revenues for the year presented: Year ended December 31, 2022 2021 Over $5 Million 65 42 $1 - $5 Million 194 143 $0.5 - $1 Million 132 106 $0.1 - $0.5 Million 386 287 Less than $0.1 Million (*) 472 343 Total Clients (*) 1,249 921 (*) Represents customers with more than $0.01 million in revenue during the last twelve months. 67 The volume of work we perform for specific clients is likely to vary from year to year, as we are typically not any client's exclusive external technology services provider, and a major client in one year may not contribute the same amount or percentage of our revenues in any subsequent year.
The volume of work we perform for specific clients is likely to vary from year to year, as we are typically not any client's exclusive external technology services provider, and a major client in one year may not contribute the same amount or percentage of our revenues in any subsequent year.
Also included in selling, general, and administrative expenses is the portion of depreciation and amortization expense attributable to the portion of our property and equipment, right-of-use assets and intangible assets utilized in our sales and administration functions. 68 Selling, general and administrative expense was $456.3 million for 2022, representing an increase of $113.3 million, or 33.0%, from $343.0 million for 2021.
Included in salaries are base salary, incentive-based compensation, employee benefits costs and social security taxes. Also included in selling, general, and administrative expenses is the portion of depreciation and amortization expense attributable to the portion of our property and equipment, right-of-use assets and intangible assets utilized in our sales and administration functions.
Moreover, these expenses also include rent concessions that we were granted due to the pandemic environment. (3) Impairment of assets, net of recoveries includes, when applicable, charges for impairment of intangible assets, charges for impairment of investments in associates and charges for impairment of tax credits, net of recoveries.
Moreover, these expenses also include rent concessions that we were granted due to the pandemic environment.
Adjusted profit from operations excludes the impact of certain items, such as share-based compensation expense, impairment of assets, net of recoveries, acquisition-related charges and COVID-19 related charges. Adjusted Diluted EPS and Adjusted Net Income We utilize non-IFRS measures of adjusted diluted EPS and adjusted net income for strategic decision making, forecasting future results and evaluating current performance.
Adjusted profit from operations is most directly comparable to the IFRS measure of profit from operations. Adjusted profit from operations excludes the impact of certain items, such as share-based compensation expense, acquisition-related charges and COVID-19 related charges.
There were 1,636,554, 1,223,449 and 1,521,988 stock options, RSUs and/or PRSUs outstanding as of December 31, 2022, 2021 and 2020, respectively. For 2022, 2021 and 2020, we recorded $57.1 million, $42.4 million and $24.6 million of share-based compensation expense related to these share option and restricted stock unit agreements, respectively.
For 2023, 2022 and 2021, we recorded $72.5 million, $57.1 million and $42.4 million of share-based compensation expense related to these share option and restricted stock unit agreements, respectively. For further discussion of the 2014 Equity Incentive Plan, see “ Compensation —2014 Equity Incentive Plan".
See note 26 to our audited consolidated financial statements. As of December 31, 2022, we had cash and cash equivalents and current investments of $340.9 million.
As of December 31, 2023, we had cash and cash equivalents and current investments of $323.3 million.
Additionally, we invested $38.2 million in internal developments and acquired licenses. During 2022, we invested $99.8 million in capital expenditures primarily made to complete or develop our works on our delivery centers in Argentina: Buenos Aires and Tandil; India: Pune; and United Kingdom: London. Additionally, we invested $46.7 million mainly in internal developments and acquired licenses.
During 2023, we invested $110.5 million in capital expenditures, consisting of $79.8 million in internal developments and acquired licenses, and the remaining to complete or develop our works on our delivery centers in Argentina: Buenos Aires, Brazil: Sao Paulo, Chile: Santiago, Colombia: Medellin, Costa Rica: San Jose; India: Pune and Indore; Peru: Lima and Romania: Cluj.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Petroni Merhy has served as a member of our board of directors and a member of our corporate governance and nominating committee since April 2022. She is a Managing Director, Head of Business Advisory & Execution and member of the Management Committee for the Investment and Corporate Banking in Asia Pacific at JPMorgan Chase. Prior to that, Ms.
Petroni Merhy has served as a member of our board of directors and as member of our corporate governance and nominating committee since April 2022. She is a Managing Director, Head of Business Advisory & Execution and member of the Management Committee for the Investment and Corporate Banking in Asia Pacific at JPMorgan Chase. Prior to that, Ms.
Stock Awards. The plan allows the administrator to grant awards denominated in common shares or other securities, stock equivalent units or RSUs, securities or debentures convertible into common shares or any combination of the foregoing, to eligible participants. Awards denominated in stock equivalent units will be credited to a bookkeeping reserve account solely for accounting purposes.
The plan allows the administrator to grant awards denominated in common shares or other securities, stock equivalent units or RSUs, securities or debentures convertible into common shares or any combination of the foregoing, to eligible participants. Awards denominated in stock equivalent units will be credited to a bookkeeping reserve account solely for accounting purposes.
Notwithstanding the foregoing, in the event of a change in control, all awards, subject to certain exclusions, granted to senior executives will (a) become vested and payable in equal parts on each of the change in control completion date, and the 6th and 12th month anniversaries from such date, unless full payment is resolved by the administrator upon consummation of the change in control; (b) be paid and settled in cash immediately, if the senior executive is terminated without cause or resigns with good reason during the first year following the change in control completion date; and (c) become vested and settled in cash on the change in control completion date, if the executive is terminated without cause or resigned with good reason at any time from the date the Company was made aware of the potential change in control, and such change in control occurs within the 6 months following the executive's dismissal or resignation.
Notwithstanding the foregoing, in the event of a change in control, all awards, subject to certain exclusions, granted to certain senior executives will (a) become vested and payable in equal parts on each of the change in control completion date, and the 6th and 12th month anniversaries from such date, unless full payment is resolved by the administrator upon consummation of the change in control; (b) be paid and settled in cash immediately, if the senior executive is terminated without cause or resigns with good reason during the first year following the change in control completion date; and (c) become vested and settled in cash on the change in control completion date, if the executive is terminated without cause or resigned with good reason at any time from the date the Company was made aware of the potential change in control, and such change in control occurs within the 6 months following the executive's dismissal or resignation.
He has led investments in or is a current or former Director or Advisor of several technology companies, including 99, Alog Data Centers do Brasil, Billtrust (Nasdaq: BTRS), Cloudblue, Dock, Globant (NYSE: GLOB), GOintegro, Greenhouse, Industrious, Insider, LAVCA, Mandic, MotionPoint, Navent, Nubox, Pixeon, RD Station, SecurityScorecard, Shiphero, Technisys, and VTEX (NYSE: VTEX), among others. Mr.
He has led investments in or is a current or former Director or Advisor of several technology companies, including 99, Alog Data Centers do Brasil, Billtrust (Nasdaq: BTRS), Cloudblue, Dock, Globant (NYSE: GLOB), GOintegro, Greenhouse, Industrious, Insider, LAVCA, Mandic, MotionPoint, Navent, Nubox, Pixeon, RD Station, SecurityScorecard, Shiphero, Technisys, VTEX (NYSE: VTEX), among others. Mr.
The plan allows the administrator to grant awards of stock appreciation rights which entitle the holder to receive a payment in cash, in common shares, or in a combination of both, having an aggregate value equal to the product of the excess of the fair market value on the exercise date of the underlying common shares over the base price of the common shares specified in the grant agreement, multiplied by the number of common shares specified in the award being exercised.
The plan allows the administrator to grant awards of stock appreciation rights which entitle the holder to receive a payment in cash, in common shares, or in a combination of both, having an aggregate value equal to the product of the excess of the fair market value on the exercise date of the underlying common shares over the base price of the common shares specified in the grant agreement, multiplied by the number of common shares specified in the award being exercised. 73 Stock Awards.
Petroni Merhy holds a bachelor’s degree in Business Administration from Escola de Administração de Empresas Fundação Getúlio Vargas in Brazil. We believe that Ms. Petroni Merhy is qualified to serve on our board of directors due to her extensive business experience, risk management expertise and financial understanding. 79 Philip A. Odeen Mr.
Petroni Merhy holds a bachelor’s degree in Business Administration from Escola de Administração de Empresas Fundação Getúlio Vargas in Brazil. We believe that Ms. Petroni Merhy is qualified to serve on our board of directors due to her extensive business experience, risk management expertise and financial understanding. Philip Odeen Mr.
In this role, she works on turning strategy into actionable goals for growth, helping to implement organization-wide goal setting, performance management, and annual 81 operating planning. This role consolidates a comprehensive vision in which Delivery, People, Performance and Operations come together to ensure sustainable business growth. From January 2017 to April 2021, Mrs.
In this role, she works on turning strategy into actionable goals for growth, helping to implement organization-wide goal setting, performance management, and annual operating planning. This role consolidates a comprehensive vision in which Delivery, People, Performance and Operations come together to ensure sustainable business growth. From January 2017 to April 2021, Mrs.
This compensation will be paid in four equal installments, on each of the third, sixth, ninth and twelfth anniversary of the date of termination of their employment. In addition, they will be entitled to receive continued health coverage and life insurance after the termination of their employment for a period of 12 months.
This compensation will be paid in four equal installments, on each of the third, sixth, ninth and twelfth month anniversary of the date of termination of their employment. In addition, they will be entitled to receive continued health coverage and life insurance after the termination of their employment for a period of 12 months.
Migoya, Umaran and Englebienne, whose biographical information is set forth in “— Directors.” Juan Ignacio Urthiague Mr. Urthiague has been our Chief Financial Officer since October 2018 and is in charge of corporate finance, treasury, accounting and tax, financial reporting, financial services and investor relations. Mr.
Migoya, Umaran and Englebienne, whose biographical information is set forth in “— Directors.” Juan Urthiague Mr. Urthiague has been our Chief Financial Officer since October 2018 and is in charge of corporate finance, treasury, accounting and tax, financial reporting, financial services and investor relations. Mr.
These agreements may be terminated by us in case of termination with cause or resignation without good reason. Pension, Retirement or Similar Benefits We do not pay or set aside any amounts for pension, retirement or other similar benefits for our officers or directors. C.
These agreements may be terminated by us in case of termination with cause or resignation without good reason. 75 Pension, Retirement or Similar Benefits We do not pay or set aside any amounts for pension, retirement or other similar benefits for our officers or directors. C.
Since 2008, he has been responsible for our mergers and acquisitions processes and strategic initiatives. From 2005 to 2012, Mr. Umaran served as Globant’s Chief Operations Officer and Chief Corporate Business Officer, in charge of managing our delivery teams and projects.
Since 2008, he has been responsible for our mergers and acquisitions processes and strategic initiatives. From 2005 to 2012, Mr. Umaran served as Globant’s Chief Operations Officer and Chief Corporate Business Officer, in charge of managing our delivery teams and projects. In 2022, Mr.
Pinelli served as Global Vice Chair of Ernst & Young LLP (“EY”) from 2011 to 2017 and led EY’s Global Strategic Growth Business unit with a focus on serving entrepreneurs and private and public companies poised for exponential growth. Ms.
Pinelli served as Global Vice Chair of Ernst & Young LLP (“EY”) from 2011 to 2017 and led EY’s Global Strategic Growth Business unit with a focus on serving private and public companies poised for exponential growth and supported entrepreneurs. Ms.
Odeen is qualified to serve on our board of directors due to his experience in leadership and guidance of public and private companies as a result of his varied global business, governmental and non-profit experience. Linda Rottenberg Ms.
Odeen is qualified to serve on our board of directors due to his experience in leadership and guidance of public and private companies as a result of his varied global business, governmental and non-profit experience. 69 Linda Rottenberg Ms.
Director Compensation 84 Only those directors who are considered to be independent directors under the corporate governance rules of the NYSE are eligible, subject to our shareholders’ approval, to receive compensation from us for their service on our board of directors.
Director Compensation Only those directors who are considered to be independent directors under the corporate governance rules of the NYSE are eligible, subject to our shareholders’ approval, to receive compensation from us for their service on our board of directors.
A majority of the members of our board of directors present or represented at a board meeting constitutes a quorum, and resolutions are adopted by the simple majority vote of our board members present or represented. In the case of a tie, the 85 chairman of our board shall have the deciding vote.
A majority of the members of our board of directors present or represented at a board meeting constitutes a quorum, and resolutions are adopted by the simple majority vote of our board members present or represented. In the case of a tie, the chairman of our board shall have the deciding vote.
Duties of our compensation committee include: • reviewing and approving corporate goals and objectives relevant to compensation of our directors, chief executive officer and other members of senior management; • evaluating the performance of the chief executive officer and other members of senior management in light of those goals and objectives; • based on this evaluation, determining and approving the compensation of the chief executive officer and other members of senior management; • administering the issuance of common shares options and other awards to members of senior management and directors under our compensation plans; and • reviewing and evaluating, at least annually, the performance of the compensation committee and its members, including compliance of the compensation committee with its charter.
Duties of our compensation committee include: • reviewing and approving corporate goals and objectives relevant to compensation of our directors, chief executive officer and other members of senior management; • evaluating the performance of the chief executive officer and other members of senior management in light of those goals and objectives; • based on this evaluation, determining and approving the compensation of the chief executive officer and other members of senior management; • administering the issuance of common shares options and other awards to members of senior management and directors under our compensation plans; and • reviewing and evaluating, at least annually, the performance of the compensation committee and its members, including compliance of the compensation committee with its charter. 77 Mr.
In 2022, Mr. 78 Umaran was appointed as Chief Corporate Development Officer, responsible to incorporate other organizations into the Company as part of its global growth strategy. He has also been named President for EMEA, working side by side with our team in the region to achieve Globant’s growth plans. Together with his three Globant co-founders, Mr.
Umaran was appointed as Chief Corporate Development Officer, responsible to incorporate other organizations into the Company as part of its global growth strategy. He has also been named President for EMEA, working side by side with our team in the region to achieve Globant’s growth plans. Together with his three Globant co-founders, Mr.
Alvarez-Demalde is also a Global Ambassador with Endeavor and active in non-profit initiatives related to education. We believe that Mr. Álvarez-Demalde is qualified to serve on our board of directors due to his considerable business experience in the technology industry and his experience serving as a director of other companies. Andrea Mayumi Petroni Merhy Ms.
Alvarez-Demalde is also a Global Ambassador with Endeavor and interested in non-profit initiatives related to education. We believe that Mr. Álvarez-Demalde is qualified to serve on our board of directors due to his considerable business experience in the technology industry and his experience serving as a director of other companies. Andrea Mayumi Petroni Merhy Ms.
Englebienne is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services industry that he has developed during his career as our co-founder and executive officer. Francisco Álvarez-Demalde Mr. Álvarez-Demalde has been a member of our board of directors since 2007.
Englebienne is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services industry that he has developed during his career as our co-founder and executive officer. 68 Francisco Álvarez-Demalde Mr. Alvarez-Demalde has been a member of our board of directors since 2007.
Migoya is qualified to serve on our board of directors due to his intimate familiarity with our company and the perspective, experience, and operational expertise in the technology services industry that he has developed during his career and as our co-founder and Chief Executive Officer. Martín Gonzalo Umaran Mr.
Migoya is qualified to serve on our board of directors due to his deep familiarity with our company and the perspective, experience, and operational expertise in the technology services industry that he has developed during his career and as our co-founder and Chief Executive Officer. Martín Gonzalo Umaran Mr.
Umaran is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services industry that he has developed during his career as a co-founder of our company. Guibert Andrés Englebienne Mr.
Umaran is qualified to serve on our board of directors due to his intimate familiarity with our company and his perspective, experience, and operational expertise in the technology services industry that he has developed during his career as a co-founder of our company. Guibert Englebienne Mr.
Among other matters, our audit committee: • is responsible for the appointment, compensation and retention of our independent auditors and reviews and evaluates the auditors’ qualifications, independence and performance; 86 • oversees our auditors’ audit work and reviews and pre-approves all audit and non-audit services that may be performed by them; • reviews and approves the planned scope of our annual audit; • monitors the rotation of partners of the independent auditors on our engagement team as required by law; • reviews our financial statements and discusses with management and our independent auditors the results of the annual audit and the review of our quarterly financial statements; • reviews our critical accounting policies and estimates; • oversees the adequacy of our accounting and financial controls; • annually reviews the audit committee charter and the committee’s performance; • reviews and approves related-party transactions; and • establishes and oversees procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls or auditing matters and oversees enforcement, compliance and remedial measures under our code of conduct.
Among other matters, our audit committee: • is responsible for the appointment, compensation and retention of our independent auditors and reviews and evaluates the auditors’ qualifications, independence and performance; • oversees our auditors’ audit work and reviews and pre-approves all audit and non-audit services that may be performed by them; • reviews and approves the planned scope of our annual audit; • monitors the rotation of partners of the independent auditors on our engagement team as required by law; • reviews our financial statements and discusses with management and our independent auditors the results of the annual audit and the review of our quarterly financial statements; • reviews our critical accounting policies and estimates; • oversees the adequacy of our accounting and financial controls; • annually reviews the audit committee charter and the committee’s performance; • reviews and approves related-party transactions; • reviews our enterprise risk management (including cybersecurity); and • establishes and oversees procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls or auditing matters and oversees enforcement, compliance and remedial measures under our code of conduct.
Pinelli received her Bachelor of Commerce from McMaster University and completed executive programs at Harvard Business School and the Kellogg School of Management. Ms. Pinelli has also participated as a speaker at the Most Powerful Women Summit and G20 summits, and has been featured in the Wall Street Journal, Bloomberg, CNBC and Squawk Box.
Pinelli received her Bachelor of Commerce from McMaster University and completed executive programs at Harvard Business School and the Kellogg School of Management. Ms. Pinelli has also participated as a speaker at the Most Powerful Women Summit, World Economic Form and G20 summits, and has been featured in the Wall Street Journal, Bloomberg, CNBC and Squawk Box.
Compensation Compensation of Board of Directors and Senior Management The total fixed and variable remuneration of our directors and senior management for the years ended December 31, 2022, 2021 and 2020 amounted to $6.8 million, $6.7 million and $6.6 million, respectively. We adopted an equity incentive plan in connection with the completion of our initial public offering.
Compensation Compensation of Board of Directors and Senior Management The total fixed and variable remuneration of our executive directors and senior management for the years ended December 31, 2023, 2022 and 2021 amounted to $7.0 million, $6.8 million and $6.7 million, respectively. We adopted an equity incentive plan in connection with the completion of our initial public offering.
Amendment and Termination. No award will be granted under the plan after the close of business on the day before the tenth anniversary of the effective date of the plan. Our board of directors may amend or terminate the plan at any time. Shareholder approval is required to reprice underwater options.
Amendment and Termination. No award will be granted under the plan after the close of business on the day before the tenth anniversary of the effective date of the plan (i.e., July 2, 2024). Our board of directors may amend or terminate the plan at any time. Shareholder approval is required to reprice underwater options.
He co-authored two books, "The Never Ending Digital Journey" and "Embracing the power of AI", where he shares his thoughts on how technology is changing the world and how brands need to adapt to lead this revolution. Since July 2021, Mr. Migoya is the Manager of Enigma.art LLC. We believe that Mr.
He co-authored two books, "The Never Ending Digital Journey" and "Embracing the power of AI", where he shares his thoughts on how technology is changing the world and how brands need to adapt to lead this revolution. Since July 2021, Mr. Migoya has served as Manager of Enigma.art LLC. Mr.
The current members of our audit committee are Ms. Pinelli and Messrs. Odeen and Haythornthwaite, with Mr. Odeen serving as the chairman and Ms. Pinelli serving as the audit committee financial expert as currently defined under applicable SEC rules. Each of Ms. Pinelli and Messrs.
The current members of our audit committee are Mses. Pinelli and Rottenberg and Mr. Odeen, with Mr. Odeen serving as the chairman and Ms. Pinelli serving as the audit committee financial expert as currently defined under applicable SEC rules. Each of Mses. Pinelli and Rottenberg and Mr.
Share Ownership Share Ownership The total number of shares of the company beneficially owned by our directors and executive officers, as of the date of this annual report, was 1,143,670 (includes common shares subject to options that are currently exercisable or will be exercisable, and/or issuable upon settlement of RSUs that have vested or will vest, within 60 days of February 10, 2023), which represents 2,68 % of the total shares of the Company (including common shares subject to options that are currently exercisable within 60 days of February 10, 2023).
Share Ownership Share Ownership The total number of shares of the Company beneficially owned by our directors and executive officers, as of the date of this annual report, was 1,117,915 (includes common shares subject to options that are currently exercisable or will be exercisable, and/or issuable upon settlement of RSUs that have vested or will vest, within 60 days of February 10, 2024), which represents 2.58% of the total shares of the Company (including common shares subject to options that are currently exercisable within 60 days of February 10, 2024).
Common shares issued under the ESPP may consist of common shares reacquired in open market purchases. On June 13, 2022, we entered into a 10b5-1 repurchase plan with HSBC Securities (USA) Inc., acting as agent for us, for the repurchase of an aggregate of up to 50,000 common shares. The 10b5-1 repurchase plan will expire on March 8, 2023.
Common shares issued under the ESPP may consist of common shares reacquired in open market purchases. On May 29, 2023, we entered into a 10b5-1 repurchase plan with HSBC Securities (USA) Inc., acting as agent for us, for the repurchase of an aggregate of up to 60,000 common shares. The 10b5-1 repurchase plan will expire on March 8, 2024.
Odeen served as a director of each of QinetiQ North America, Inc. from 2006 to 2015, ASC Signal Corporation from 2009-2015, and Red Hawk from 2015-2018. From 2006 to 2007, Mr. Odeen served as chairman of the board of directors of Avaya Corporation and as a director from 2002 to 2007.
Odeen served as the chairman of the board of directors of Convergys Corporation, and as a director of Convergys Corporation from 2000 to 2013. Mr. Odeen served as a director of each of QinetiQ North America, Inc. from 2006 to 2015, ASC Signal Corporation from 2009-2015, and Red Hawk from 2015-2018. From 2006 to 2007, Mr.
Name Position Age Date of Appointment Current Term Expiring at Annual Meeting of Shareholders to Be Held in Year Martín Migoya Chairman of the Board and Chief Executive Officer 54 April 2, 2021 2024 Martín Gonzalo Umaran Director - Chief Corporate Development Officer & President for EMEA 54 April 3, 2020 2023 Guibert Andrés Englebienne Director - President of Globant X and Globant Ventures - President for Latin America 56 April 3, 2020 2023 Francisco Álvarez-Demalde Director 44 April 22, 2022 2025 Andrea Mayumi Petroni Merhy Director 47 April 22, 2022 2025 Philip A.
Name Position Age Date of Appointment Current Term Expiring at Annual Meeting of Shareholders to Be Held in Year Martín Migoya Chairman of the Board and Chief Executive Officer 56 April 2, 2021 2024 Martín Gonzalo Umaran Director - Chief Corporate Development Officer & President for EMEA 55 April 19, 2023 2026 Guibert Andrés Englebienne Director - President of Globant X and Globant Ventures - President for Latin America 57 April 19, 2023 2026 Francisco Álvarez-Demalde Director 45 April 22, 2022 2025 Andrea Mayumi Petroni Merhy Director 48 April 22, 2022 2025 Philip A.
Pursuant to such authorization, our board of directors may repurchase up to a maximum number of shares representing 20% of the issued share capital for a net purchase price that is (i) no less than 50% of the lowest stock price and (ii) no more than 50% above the highest stock price, in each case being the closing price, as reported by the New York City edition of the Wall Street Journal, or, if not reported therein, any other authoritative sources to be selected by our board of directors, over the ten trading days preceding the date of the purchase (or the date of the commitment to the transaction).
The Company intends to renew the 10b5-1 plan in furtherance of additional future share repurchases for this purpose. 82 Pursuant to such authorization, our board of directors may repurchase up to a maximum number of shares representing 20% of the issued share capital for a net purchase price that is (i) no less than 50% of the lowest stock price and (ii) no more than 50% above the highest stock price, in each case being the closing price, as reported by the New York City edition of the Wall Street Journal, or, if not reported therein, any other authoritative sources to be selected by our board of directors, over the ten trading days preceding the date of the purchase (or the date of the commitment to the transaction).
During the past decade, Riverwood has been an active investor in more than 70 technology companies, which have grown their revenues at more than 45% per year on average during that period. Prior to establishing Riverwood, Mr. Alvarez-Demalde was an investment executive at Kohlberg Kravis Roberts & Co.
During the past decade, Riverwood has been an active investor in more than 75 technology companies, which have grown their revenues at over 40% per year on average during Riverwood’s hold period. Prior to establishing Riverwood, Mr. Alvarez-Demalde was an investment executive at Kohlberg Kravis Roberts & Co.
He has been with the Company since 2008, when he joined as a leader for a development group. Since then, he has held several management positions, including Technical Director, Studio Partner and CTO for Globant Studios. After he joined, he quickly took the Technical Director role for one of Globant’s major account, a leading gaming company.
He has been with the Company since 2008, when he joined as a leader for a Company development group. Since then, he has held several management positions, including Technical Director, Studio Partner and CTO for Globant Studios. Shortly after joining Globant, he became the Technical Director for one of Globant’s major accounts, a leading gaming company.
Any amounts withheld from participants' compensation in excess of the amounts used to purchase common shares will be refunded, without interest. 93 Administration, Amendment or Termination of the ESPP In accordance with the terms of the ESPP, our compensation committee will administer the ESPP, including, but not limited to, have full authority to interpret the terms of the ESPP, have the discretion to determine from time to time which subsidiaries shall be participating companies in the ESPP, designate from time to time those participating companies whose eligible employees may participate in the Section 423 ESPP and those participating companies whose eligible employees may participate in the Non-423 ESPP, establish additional or alternative offering periods, different durations for offering periods or different commencing or ending dates for offering periods.
Administration, Amendment or Termination of the ESPP In accordance with the terms of the ESPP, our compensation committee will administer the ESPP, including, but not limited to, have full authority to interpret the terms of the ESPP, have the discretion to determine from time to time which subsidiaries shall be participating companies in the ESPP, designate from time to time those participating companies whose eligible employees may participate in the Section 423 ESPP and those participating companies whose eligible employees may participate in the Non-423 ESPP, establish additional or alternative offering periods, different durations for offering periods or different commencing or ending dates for offering periods.
If the acquiring or successor corporation does not assume or substitute for outstanding purchase rights, then the purchase date of the offering periods then in progress will be accelerated to a date prior to the change in control. The ESPP will continue in effect until terminated by the administrator.
If the acquiring or successor corporation does not assume or substitute for outstanding purchase rights, then the purchase date of the offering periods then in progress will be accelerated to a date prior to the change in control.
In addition, she was admitted to the Committee 200 and named to the list of Power 100 Women. Ms. Pinelli has also served as Chair of the Network for Teaching Entrepreneurship and a member of the World Economic Forum Global Growth Company Advisory Committee. We believe that Ms.
In addition, she was admitted to the G50, Committee 200 and recognized as one of the Square Mile’s most inspiring Power 100 Women . Ms. Pinelli has also served as Chair of the Network for Teaching Entrepreneurship and a member of the World Economic Forum Global Growth Company Advisory Committee. We believe that Ms.
Odeen served as Chief Executive Officer of BDM from 1992 to 1997. Prior to that he was a partner with Coopers & Lybrand from 1978 to 1992, and Vice Chairman of the Management Consulting practice from 1991 to 1992. Mr.
Odeen served as chairman and Chief Executive Officer of TRW Inc., retiring from the position in December 2001. Additionally, Mr. Odeen served as Chief Executive Officer of BDM from 1992 to 1997. Prior to that he was a partner with Coopers & Lybrand from 1978 to 1992, and Vice Chairman of the Management Consulting practice from 1991 to 1992. Mr.
As of the date of this annual report, the administrator has repurchased 73,500 common shares, and has delivered 46,589 common shares under the plan. 94 2021 Stock-Equivalent Units On December 1, 2021, the compensation committee, as administrator, approved the granting of awards in the form of stock-equivalent units to be settled in cash or common shares, or a combination thereof, under the 2014 Equity Incentive Plan for the equivalent to 26,000 common shares, subject to the following terms and conditions: Purpose.
Until December 31, 2023, the administrator has repurchased 116,000 common shares, and has delivered 94,745 common shares under the plan. 2021 Stock-Equivalent Units On December 1, 2021, the compensation committee, as administrator, approved the granting of awards in the form of stock-equivalent units to be settled in cash or common shares, or a combination thereof, under the 2014 Equity Incentive Plan for the equivalent to 26,000 common shares, subject to the following terms and conditions: Purpose.
Attraction We seek employees who are motivated to be part of a leading company that uses the latest technologies in the digital and cognitive field to transform organizations in every aspect. Since our inception, we believe we have become a unique player for talent in the countries where we have operations.
Attraction We are constantly looking for talent who are motivated to be part of a leading company that uses the latest technologies in the digital field to reinvent organizations and industries. Since our inception, we believe we have become a unique player for talent in the countries where we have operations.
The current members of our compensation committee are Messrs. Odeen, Alvarez Demalde and Haythornthwaite, with Mr. Odeen serving as chairman. Each of Messrs. Odeen, Alvarez Demalde and Haythornthwaite satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE.
Odeen and Alvarez Demalde, with Mr. Odeen serving as chairman. Each of Messrs. Odeen and Alvarez Demalde satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE.
Odeen and Haythornthwaite satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE as well us under Rule 10A-3 under the Exchange Act. On May 13, 2014, our board of directors adopted a written charter for our audit committee, which is available on our website at http://www.globant.com .
Odeen satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE as well us under Rule 10A-3 under the Exchange Act. On May 13, 2014, our board of directors adopted a written charter for our audit committee.
Also, in 2022, Great Place to Work selected Globant as one of the best places to work in Latin America with special recognitions for Argentina, Uruguay and Colombia where we ended in the fourth, second, and third position, respectively. Also in 2022, Fast Company included Globant in its '100 Best Companies for Innovators' list.
Great Place to Work recognized Globant as one of the best places to work in Latin America, with special recognitions for Argentina, Uruguay and Colombia. Also in 2022, Fast Company included Globant in its '100 Best Companies for Innovators' list.
However, an employee may not be granted rights to purchase common shares either under the Section 423 ESPP or the Non-423 ESPP, if such employee immediately after the grant would own common shares or options to purchase common shares possessing 5.0% or more of the total combined voting power or value of all classes of our share capital. 92 Operation of the ESPP; Participant Contributions The ESPP will typically be implemented through consecutive six-month offering periods, and permits participants to purchase common shares through payroll deductions of up to 10.0% of their eligible compensation, which includes regular base wages or salary, overtime payments, shift premiums and payments for paid time off, but exclusive of sign-on bonuses, annual or other incentive bonuses, commissions, profit-sharing distributions or other incentive-type payments, any contributions made by a participating company on the employee’s behalf to any employee benefit or welfare plan now or hereafter established (other than amounts deferred pursuant to Section 401(k) or Section 125 of the Code), payments in lieu of notice, payments pursuant to a severance agreement, termination pay, moving allowances, relocation payments, or any amounts directly or indirectly paid pursuant to the ESPP or any other share purchase, share option or other share-based compensation.
Operation of the ESPP; Participant Contributions The ESPP will typically be implemented through consecutive six-month offering periods, and permits participants to purchase common shares through payroll deductions of up to 10.0% of their eligible compensation, which includes regular base wages or salary, overtime payments, shift premiums and payments for paid time off, but exclusive of sign-on bonuses, annual or other incentive bonuses, commissions, profit-sharing distributions or other incentive-type payments, any contributions made by a participating company on the employee’s behalf to any employee benefit or welfare plan now or hereafter established (other than amounts deferred pursuant to Section 401(k) or Section 125 of the Code), payments in lieu of notice, payments pursuant to a severance agreement, termination pay, moving allowances, relocation payments, or any amounts directly or indirectly paid pursuant to the ESPP or any other share purchase, share option or other share-based compensation.
We continue to draw talent primarily from Latin America and Asia’s abundantly skilled talent base. We believe our relations with our employees are good and we have not experienced any significant labor disputes or work stoppages. Recruitment We have a global presence with delivery centers in North America, Latin America, Europe, and Asia.
We continue to draw talent primarily from Latin America and Asia’s abundantly skilled talent base. We believe our relations with our employees are good and we have not experienced any significant labor disputes or work stoppages.
Board Committees Our board of directors has established an audit committee, a compensation committee and a corporate governance and nominating committee. Our board of directors may from time to time establish other committees. Audit Committee Our audit committee oversees our corporate accounting and financial reporting process.
Our board of directors may from time to time establish other committees. Audit Committee Our audit committee oversees our corporate accounting and financial reporting process.
Odeen Director 87 April 2, 2021 2024 Linda Rottenberg Director 54 April 3, 2020 2023 Richard Haythornthwaite Director 66 April 2, 2021 2024 Maria Pinelli Director 60 April 22, 2022 2025 Directors may be re-elected for one or more terms of up to four-years. Directors appointed to fill vacancies remain in office until the next general meeting of shareholders.
Odeen Director 88 April 2, 2021 2024 Linda Rottenberg Director - Lead Independent Director 55 April 19, 2023 2026 Maria Pinelli Director 61 April 22, 2022 2025 Directors may be re-elected for one or more terms of up to four-years. Directors appointed to fill vacancies remain in office until the next general meeting of shareholders.
Additionally, she was responsible for content production and tracking of “Equality Connect,” a program directly supported by the Argentinian Government to distribute more than 3.5 million netbooks within the Argentine public education system. Mrs. Pomies has been a Professor of Social Communication at Maimonides University and Assistant Professor of Communication Sciences at the University of Buenos Aires.
Additionally, she was responsible for content production and tracking of “Equality Connect,” a program directly supported by the Argentinian Government to distribute more than 3.5 million netbooks within the Argentine public education system. Mrs.
No indemnification will be provided with respect to any matter as to which the director or officer shall have been finally adjudicated to have acted in bad faith and not in our interest, nor will indemnification be provided in the event of a settlement (unless approved by a court or our board of directors).
No indemnification will be provided with respect to any matter as to which the director or officer shall have been finally adjudicated to have acted in bad faith and not in our interest, nor will indemnification be provided in the event of a settlement (unless approved by a court or our board of directors). 76 Board Committees Our board of directors has established an audit committee, a compensation committee and a corporate governance and nominating committee, as well as the position of lead independent director.
On the offering date of each offering period, each participant in such offering period will be automatically granted an option to purchase the lesser of (a) that number of whole common shares determined by dividing the Dollar Limit (as defined below) by the fair market value of a common share on such offering date or (b) the Share Limit (as defined below).
Subject to adjustment as provided by the ESPP and unless otherwise provided by our compensation committee, the purchase price for each offering period shall be 90.0% of the fair market value of a common share on the purchase date. 83 On the offering date of each offering period, each participant in such offering period will be automatically granted an option to purchase the lesser of (a) that number of whole common shares determined by dividing the Dollar Limit (as defined below) by the fair market value of a common share on such offering date or (b) the Share Limit (as defined below).
Odeen served as the chairman of the board of directors and lead independent director of AES Corporation, and as a director of AES Corporation from 2003 to 2013. From 2008 to 2013, Mr. Odeen served as the chairman of the board of directors of Convergys Corporation, and as a director of Convergys Corporation from 2000 to 2013. Mr.
He was a director of Booz Allen Hamilton from 2008 to 2019. From 2009 to 2013, Mr. Odeen served as the chairman of the board of directors and lead independent director of AES Corporation, and as a director of AES Corporation from 2003 to 2013. From 2008 to 2013, Mr.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES A. Directors and Senior Management Directors 77 The table below sets forth information concerning our directors as of February 10, 2023.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES A. Directors and Senior Management Directors The table below sets forth information concerning our directors as of the date of this annual report.
Migoya holds a degree in electronic engineering from Universidad Nacional de La Plata (UNLP) and a master’s degree in business administration, from the Universidad del Centro de Estudios Macroeconómicos de Argentina .
Migoya holds a degree in electronic engineering from Universidad Nacional de La Plata (UNLP) and a master’s degree in business administration, from the University of CEMA.
The current members of our corporate governance and nominating committee are Mses. Rottenberg and Mayumi Petroni Merhy and Mr. Alvarez-Demalde, with Ms. Rottenberg serving as chairman. Each of Mses. Rottenberg and Mayumi Petroni Merhy and Mr.
The current members of our corporate governance and nominating committee are Ms. Mayumi Petroni Merhy and Mr. Alvarez-Demalde, with Mr. Alvarez-Demalde serving as chairman. Each of Ms. Mayumi Petroni Merhy and Mr. Alvarez-Demalde satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE.
He served on the board of directors of Reynolds and Reynolds Company from 2000 to 2007, and as its chairman from 2006 to 2007. Mr. Odeen was a director of Northrop Grumman from 2002 to 2008. Mr. Odeen served as chairman and Chief Executive Officer of TRW Inc., retiring from the position in December 2001. Additionally, Mr.
Odeen served as chairman of the board of directors of Avaya Corporation and as a director from 2002 to 2007. He served on the board of directors of Reynolds and Reynolds Company from 2000 to 2007, and as its chairman from 2006 to 2007. Mr. Odeen was a director of Northrop Grumman from 2002 to 2008. Mr.
In this respect, independent members of our board of directors are eligible to receive cash and/or share based compensation for their services as directors, as well as reimbursement of reasonable and documented costs and expenses incurred by them in connection with attending any meetings of our board of directors or any committees thereof.
In this respect, independent members of our board of directors are eligible to receive cash and/or share based compensation for their services as directors, as well as reimbursement of reasonable and documented costs and expenses incurred by them in connection with attending any meetings of our board of directors or any committees thereof. 74 During 2023, we paid an aggregate cash compensation of $575,000 and we granted a total of 3,191 RSUs to the independent members of our board of directors, as further described below.
Between 2006 and 2007, he was an International Associate at the New York office of Simpson, Thacher & Bartlett LLP. Pablo has a law degree from the Pontificia Universidad Católica Argentina "Santa María de los Buenos Aires" and has completed post-graduate studies in law and economics at Torcuato Di-Tella University. 82 B.
Pablo has a law degree from the Pontificia Universidad Católica Argentina "Santa María de los Buenos Aires" and has completed post-graduate studies in law and economics at Torcuato Di-Tella University. B.
Our de-centralization strategy allows us to expand and diversify our sources of talent in our development centers all over the world. Our offices are located near regional academic and engineering hubs to facilitate our access to a growing talent base.
Through our global presence, with delivery centers in North America, Latin America, Europe, Asia and Oceania, we boost a decentralization strategy that allows us to expand and diversify our sources of talent in our development centers all over the world. Our offices are located near regional academic and engineering hubs to facilitate our access to a growing talent base.
She joined Globant in 2005 and worked for two years in the Internet marketing department as a senior consultant. From 2002 to 2005, she worked at Jota Group, a publishing house where she was responsible for the development of corporate communications tools for different multinational customers. Mrs. Weigert created and supervises Globant’s communications department.
From 2002 to 2005, she worked at Jota Group, a publishing house where she was responsible for the development of corporate communications tools for different multinational customers. Mrs. Weigert created and supervises Globant’s communications department. As our Chief Brand Officer, she coordinates Globant’s relationships with the press throughout the globe.
Senior Management As of February 10, 2023, our group senior management is made up of the following members: Name Position Martín Migoya Chief Executive Officer Martín Gonzalo Umaran Chief Corporate Development Officer - President for EMEA Guibert Andrés Englebienne President of Globant X and Globant Ventures - President for Latin America Juan Ignacio Urthiague Chief Financial Officer Patricia Pomies Chief Operating Officer Yanina Maria Conti Chief Accounting Officer Wanda Weigert Chief Brand Officer Diego Tártara Chief Technology Officer Patricio Pablo Rojo General Counsel The following is the biographical information of the members of our group senior management other than Messrs.
Pinelli is well-qualified to serve as a director and financial expert due to her previous leadership roles, international business experience, financial acumen and extensive experience in advising growth companies. 70 Senior Management As of the date of this annual report, our group senior management is made up of the following members: Name Position Martín Migoya Chief Executive Officer Martín Umaran Chief Corporate Development Officer – President for EMEA Guibert Englebienne President of Globant X and Globant Ventures – President for Latin America Juan Ignacio Urthiague Chief Financial Officer Patricia Pomies Chief Operating Officer Yanina Conti Chief Accounting Officer Wanda Weigert Chief Brand Officer Diego Tártara Chief Technology Officer Patricio Pablo Rojo General Counsel The following is the biographical information of the members of our group senior management other than Mrs.
Globant S.A. was incorporated in Luxembourg on December 10, 2012. References to the terms of service or appointment of our directors and senior management in the following biographies include their service to our predecessor companies, which were organized in Spain. Martín Migoya Mr. Migoya has served as Chairman of our board of directors and Chief Executive Officer since 2005.
Globant S.A. was incorporated in Luxembourg on December 10, 2012. References to the terms of service or appointment of our directors and senior management in the following biographies include their service to our predecessor companies, which were organized in Spain. 67 Mr. Richard Haythornthwaite resigned as a director of the Company effective as of September 30, 2023.
Odeen has served as a member of our board of directors since 2012 and chairman of Globant's Compensation Committee since 2020. Mr. Odeen has also served as a proxy director of Leonardo DRS since 2013. He was a director of Booz Allen Hamilton from 2008 to 2019. From 2009 to 2013, Mr.
Odeen has served as a member of our board of directors since 2012. He has been the Chairman of Globant's Compensation Committee since 2020 and a member and chair of Globant's Audit Committee since 2014 and 2021, respectively. Mr. Odeen has also served as a proxy director of Leonardo DRS since 2013.
He is a founder and co-managing partner of Riverwood Capital, a leading growth-capital private equity firm focused on the global technology industry, and one of the largest early investors in Globant. Mr.
Mr. Álvarez-Demalde served as a member of Globant’s Corporate Governance and Nominating Committee since April 21, 2020, and as a chair of such committee since September 30, 2023. He is a co-founder and managing partner of Riverwood Capital, a leading growth-capital private equity firm focused on the global technology industry, and one of the largest early investors in Globant. Mr.
From the adoption of that plan until the date of this annual report we granted to members of our senior management and certain other employees 30,000 stock awards, options to purchase 2,248,122 common shares, 2,240,261 RSUs and PRSUs, and 57,258 SEUs and PSEUs, net of any cancelled and/or forfeited awards.
See “ Compensation — 2014 Equity Incentive Plan ” below for further information. From the adoption of that plan until December 31, 2023 we granted to members of our senior management and certain other employees 30,000 stock awards, options to purchase 2,248,122 common shares, 2,584,777 RSUs and PRSUs, and 37,983 SEUs and PSEUs, net of any cancelled and/or forfeited awards.
He also received in 2009 the America Economía Magazine’s “Excellence Award”, which is given to entrepreneurs and executives that contribute to the growth of Latin American businesses. In 2011, Latin Trade recognized Mr. Migoya as Emerging CEO of the Year. In 2013, Mr. Migoya received the “Entrepreneur of the Year Award” from Ernst & Young.
He was selected as an Argentine Creative Individual of 2009 and received the Security Award as one of the most distinguished Argentine businessmen of 2009. He also received in 2009 the America Economía Magazine’s “Excellence Award”, which is given to entrepreneurs and executives that contribute to the growth of Latin American businesses. In 2011, Latin Trade recognized Mr.
Pursuant to the June 8, 2022 amendment adopted by our board of directors, we may issue stock awards up to an aggregate amount of 5,666,667 common shares under the 20214 Equity Incentive Plan.
Pursuant to the June 8, 2022 amendment adopted by our board of directors, we may issue stock awards up to an aggregate amount of 5,666,667 common shares under the 2014 Equity Incentive Plan. As of December 31, 2023, the number of common shares available for issuance pursuant to existing un-exercised and/or unvested and future stock awards was 2,365,114.
The option holder may pay the exercise price in cash or by check, by tendering common shares, by a combination of cash and common shares, or by any other means that the administrator approves.
The option holder may pay the exercise price in cash or by check, by tendering common shares, by a combination of cash and common shares, or by any other means that the administrator approves. The options have a maximum term of ten years; however, the options will expire earlier if the optionee’s service relationship with the company terminates.
Alvarez-Demalde satisfies the “independence” requirements within the meaning of Section 303A of the corporate governance rules of the NYSE. 87 Effective as of July 23, 2014, our board of directors adopted a written charter for our corporate governance and nominating committee.
Effective as of July 23, 2014, our board of directors adopted a written charter for our corporate governance and nominating committee.
With strong background in desktop, embedded and backend development and love for C/C++, gaming and graphics. Patricio Pablo Rojo Mr. Rojo has been our General Counsel since October 2021. He has the overall responsibility of supervising Globant´s Legal and Compliance department. He previously served in this role from 2013 to 2018.
Diego has more than 20 years of experience developing small, mid and large scale software, and has a strong background in desktop, embedded and backend development and a passion for C/C++, gaming and graphics. Patricio Pablo Rojo Mr. Rojo has been our General Counsel since October 2021. He has the overall responsibility of supervising Globant´s Legal and Compliance department.
Other honors include: Silicon Valley Forum Visionary Award; Heinz Award; Babson College Honorary Doctorate of Humane Letters; Yale Law School Award of Merit. Ms. Rottenberg is a graduate of Harvard College and Yale Law School. We believe that Ms.
Rottenberg has been the subject of six Harvard Business School case studies and one Stanford GSB case study. Other honors include the Silicon Valley Forum Visionary Award; Heinz Award for Technology, the Economy, and Employment; Babson College Honorary Doctorate; and the Yale Law School Award of Merit. A graduate of Harvard College and Yale Law School. We believe that Ms.
The compensation committee further approved that the maximum number of authorized stock-equivalent units may be increased to the extent that the total share-based compensation of the Company during 2022 does not exceed an amount equal to 3.2% of the Company's consolidated revenues during 2022.
The compensation committee further approved that the maximum number of authorized stock-equivalent units may be increased to the extent that the total share-based compensation of the Company during 2022 does not exceed an amount equal to 3.2% of the Company's consolidated revenues during 2022. 85 From its adoption until the date of this annual report, we have granted to eligible employees 37,983 SEUs and PSEUs, net of any cancelled and/or forfeited awards.
Attracting and retaining the right employees is critical to the success of our business and is a key factor in our ability to meet our client’s needs and the growth of our client and revenue base. As of December 31, 2022, 2021 and 2020, on a consolidated basis, we had 27,122, 23,526 and 16,251 employees, respectively.
Attracting and retaining the right employees is critical to the success of our business and is a key factor in our ability to meet our client’s needs and the growth of our client and revenue base.
The following tables show our total number of full-time employees as of December 31, 2022 broken down by functional area and geographical location: Number of employees Technology 23,407 Operations 1,924 Sales and Marketing 277 Management and administration 1,514 Total 27,122 88 Number of employees Colombia 5,838 Argentina 5,391 India 4,298 Mexico 3,556 Peru 1,409 Chile 1,341 Brazil 1,166 Uruguay 1,115 Spain 928 United States 742 Italy 334 United Kingdom 222 Belarus 196 Romania 185 Ecuador 127 Costa Rica 97 Denmark 38 Canada 28 Australia 27 Poland 21 Germany 16 France 13 Luxembourg 1 Other countries 33 Total 27,122 In 2007, we started shifting from a Buenos Aires-centric delivery model to a distributed organization with locations across Latin America, Europe, Asia, and elsewhere.
The following tables show our total number of full-time employees as of December 31, 2023 broken down by functional area and geographical location: Number of employees Technology 24,968 Operations 2,148 Management and administration 1,696 Sales 338 Total 29,150 Number of employees Colombia 5,816 Argentina 5,603 India 4,277 Mexico 3,305 Brazil 1,933 Peru 1,344 Spain 1,276 Chile 1,191 Uruguay 1,008 United States 880 Romania 817 Italy 416 Moldova 224 United Kingdom 220 Ecuador 176 Belarus 112 Vietnam 100 Canada 87 France 82 Costa Rica 79 Denmark 70 Poland 35 Australia 29 Germany 20 Luxembourg 1 Other countries 49 Total 29,150 79 In 2007, we started shifting from a Buenos Aires-centric delivery model to a distributed organization with locations across Latin America, Europe, Asia, and elsewhere.
Our culture is the foundation that supports and facilitates our distinctive approach. 89 This culture can be best described as entrepreneurial, collaborative, flexible, diverse and inclusive. Diversity and Inclusion are key to our business. Technology requires us to innovate constantly, and there is no way to innovate if we do not connect different points of view.
Our culture is the foundation that supports and facilitates our distinctive approach. This culture can be best described as entrepreneurial, collaborative, flexible, diverse and inclusive. Diversity and Inclusion are key to our business, as we seek to maintain our position at the forefront of technological innovation and creativity.
On March 12, 2021, the administrator approved the participation in the Section 423 ESPP and Non-423 ESPP by several of the company's subsidiaries, pursuant to the following terms and conditions: Eligibility. In addition to those employees excluded under the plan, trainees or college trainees and fixed-term employees will also be excluded from the plan. Offering periods.
The ESPP will continue in effect until terminated by the administrator. 84 On March 12, 2021, the administrator approved the participation in the Section 423 ESPP and Non-423 ESPP by several of the company's subsidiaries, pursuant to the following terms and conditions: Eligibility.
Rottenberg is qualified to serve on our board of directors due to her knowledge and experience in the technology industry and experience serving as director of other companies. Richard Haythornthwaite Mr. Haythornthwaite has served as a member of our board of directors since February 2019. He served as the global chairman of the NYSE-listed Mastercard Inc. until December 31, 2020.
Rottenberg is qualified to serve on our board of directors due to her knowledge and experience in the technology industry and experience serving as a director of other companies. Maria Pinelli Ms. Pinelli has served as a member of our board of directors since April 2021 and our audit committee since August 2021.
Prior to his return to Globant, he spent almost three years as our external counsel, assisting Globant with several transactions and critical initiatives. Prior to joining Globant in 2013, Mr. Rojo worked as a corporate and banking law associate at the law firm Marval O´Farrel & Mairal from 2002 to 2006 and from 2007 to 2013.
He previously served in this role from 2013 to 2018. Prior to his return to Globant, he spent almost three years as our external counsel, assisting Globant with several transactions and critical initiatives. Prior to joining Globant in 2013, Mr.
As our Chief Brand Officer, she coordinates Globant’s relationships with the press throughout the globe. She is also responsible for developing both our internal and external communications strategies. Mrs.
She is also responsible for developing both our internal and external communications strategies. Mrs.
As of December 31, 2022, approximately 8.5% of our Globers are covered by the following CBAs: a) in Argentina, mostly in the Cities of Rosario and Mendoza, under the Federación Argentina de Empleados de Comercio y Servicios CBA; b) in Brazil (i) mainly under the Sindicato dos Trabalhadores em Processamento de Dados e Tecnología da Informação do Estado de São Paulo CBA, and (ii) under the Sindicato das Agências de Propaganda do Estado de São Paulo CBA; c) in Mexico, Grupo Sindicalista Gral.
Globers in (i) Argentina, mostly in the Cities of Rosario and Mendoza, were covered under the Federación Argentina de Empleados de Comercio y Servicios CBA; (ii) Brazil were mainly covered under the Sindicato dos Trabalhadores em Processamento de Dados e Tecnología da Informação do Estado de São Paulo CBA; (iii) Spain were mainly covered under the Consultancy Services CBA and the Marketing Agencies CBA; (iv) France, were covered under the Syntec CBA; and (v) Italy, were covered under the Metalurgic CBA.
In 2019, he was named Top CEO of the Year at the 2019 CEO World Awards and CEO of the year by El Cronista Comercial (Argentina). He is a member of the Young President’s Organization and a board member of Endeavor Argentina. Mr.
Migoya as Emerging CEO of the Year. In 2013, Mr. Migoya received the “Entrepreneur of the Year Award” from Ernst & Young. In 2019, he was named Top CEO of the Year at the 2019 CEO World Awards and CEO of the year by El Cronista Comercial (Argentina). We believe that Mr.

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

20 edited+2 added−5 removed7 unchanged
Our audit committee will approve only those transactions that, in light of known circumstances, are in, or are not inconsistent with, our best interests, as our audit committee determines in the good faith exercise of its discretion. 97 On November 5, 2015, we adopted a related party transactions policy, as amended by the Audit Committee.
Our audit committee will approve only those transactions that, in light of known circumstances, are in, or are not inconsistent with, our best interests, as our audit committee determines in the good faith exercise of its discretion. On November 5, 2015, we adopted a related party transactions policy, as amended by the Audit Committee.
Subsequently, the trust transferred its Revocable Migoya Trust Shares to a BVI company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 147,040 common shares held by such company.
Subsequently, the trust transferred its Revocable Migoya Trust Shares to a BVI company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 147,040 common shares held by such entity.
Subsequently, the trust transferred its Revocable Umaran Trust Shares to a BVI company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 259,241 common shares held by such company.
Subsequently, the trust transferred its Revocable Umaran Trust Shares to a BVI company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 259,241 common shares held by such entity.
This policy indicates, based on certain specific parameters, which transactions should be submitted for approval by either our Audit Committee or our general counsel. C. Interests of Experts and Counsel Not applicable.
This policy indicates, based on certain specific parameters, which transactions should be submitted for approval by either our Audit Committee or our general counsel. C. Interests of Experts and Counsel Not applicable. 88
(9) Includes 37,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable, and 259,241 common shares held by a revocable trust formed under Wyoming law (the “Revocable Umaran Trust Shares”) formed by Mr. Umaran that was established for the benefit of Mr. Umaran, his wife and certain charitable organizations.
(3) Includes 37,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable, and 259,241 common shares held by a revocable trust formed under Wyoming law (the “Revocable Umaran Trust Shares”) by Mr. Umaran that was established for the benefit of Mr. Umaran, his wife and certain charitable organizations.
Common shares subject to options, RSUs, warrants or other convertible or exercisable securities that are currently convertible or exercisable or convertible or exercisable within 60 days of February 10, 2023 are deemed to be outstanding and beneficially owned by the person holding such securities.
Common shares subject to options, RSUs, warrants or other convertible or exercisable securities that are currently convertible or exercisable or convertible or exercisable within 60 days of February 10, 2024 are deemed to be outstanding and beneficially owned by the person holding such securities.
(5) Includes 30,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable, and 147,040 common shares held by a revocable trust formed under Wyoming law (the “Revocable Migoya Trust Shares”) formed by Mr. Migoya that was established for the benefit of Mr. Migoya, his wife and certain charitable 96 organizations.
(1) Includes 30,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable, and 147,040 common shares held by a revocable trust formed under Wyoming law (the “Revocable Migoya Trust Shares”) by Mr. Migoya that was established for the benefit of Mr. Migoya, his wife and certain charitable organizations.
Major Shareholders The following table sets forth information regarding beneficial ownership of our common shares as of February 10, 2023 by: • each of our directors and members of senior management individually; • all directors and members of senior management as a group; and • each shareholder whom we know to own beneficially more than 5% of our common shares. 95 As of February 10, 2023, we had 42,434,722 issued and outstanding common shares.
Major Shareholders The following table sets forth information regarding beneficial ownership of our common shares as of December 31, 2023 by: • each of our directors and members of senior management individually; • all directors and members of senior management as a group; and • each shareholder whom we know to own beneficially more than 5% of our common shares.
(14) Based on a Schedule 13G/A filed with the SEC on February 8, 2023, Wasatch Advisors, LP beneficially owns 2,441,952 of our common shares; has sole and dispositive power with respect to all of such shares. The address of Wasatch Advisors, LP's principal business office is 505 Wakara Way, Salt Lake City, UT 84108.
The address of Wasatch Advisors, LP's principal business office is 505 Wakara Way, Salt Lake City, UT 84108. (14) Based on a Schedule 13G/A filed with the SEC on February 2, 2024, BlackRock, Inc. beneficially owns 2,739,082 of our common shares; has sole voting power with respect to 2,645,308 shares, and sole dispositive power with respect to 2,739,082 shares.
(6) Includes 94 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (7) Includes 94 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (8) Includes 94 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable.
(7) Includes 152 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (8) Includes 152 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (9) Includes 1,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable.
(2) Includes 1,000 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (3) Includes 82,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable, and 147,166 common shares held by a revocable trust formed under Wyoming law (the “Revocable Englebienne Trust Shares”) formed by Mr.
(2) Includes 62,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable, and 127,166 common shares held by a revocable trust formed under Wyoming law (the “Revocable Englebienne Trust Shares”) by Mr. Englebienne that was established for the benefit of Mr. Englebienne, his wife and certain charitable organizations.
Rowe Price Associates, Inc. reported that it has sole voting power with respect to 504,681 shares and sole dispositive power with respect to 3,086,471 shares, and T. Rowe Price New Horizons Fund, Inc. reported that it has sole voting power with respect to 2,423,727 shares. The address of T. Rowe Price Associates, Inc. and T.
Rowe Price Associates, Inc. beneficially owns 3,951,741 of our common shares; has sole voting power with respect to 1,000,129 shares, and sole dispositive power with respect to 3,951,741 shares. T. Rowe Price New Horizons Fund, Inc. reported that it has sole voting power with respect to 2,368,327 shares. The address of T. Rowe Price Associates, Inc. and T.
Beneficial ownership for the purposes of the following table is determined in accordance with the rules and regulations of the SEC.
As of December 31, 2023, we had 43,241,192 issued and outstanding common shares. Beneficial ownership for the purposes of the following table is determined in accordance with the rules and regulations of the SEC.
(10) Includes 7,000 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (11) Includes 1,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (12) Includes 17,500 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable.
(4) Includes 152 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (5) Includes 152 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (6) Includes 152 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable.
(13) Based on a Schedule 13G/A filed with the SEC on February 1, 2023, BlackRock, Inc. beneficially owns 2,908,590 of our common shares; has sole voting power with respect to 2,777,835 shares, and sole dispositive power with respect to 2,908,590 shares. The address of BlackRock, Inc.'s principal business office is 55 East 52nd Street, New York, N Y 10055.
The address of BlackRock, Inc.'s principal business office is 50 Hudson Yards, New York, NY 10001. (15) Based on a Schedule 13G filed with the SEC on January 10, 2024, J.P. Morgan Chase & Co. beneficially owns 2,292,516 of our common shares; has sole voting power with respect to 1,947,932 shares, and shared voting power with respect to 15,156 shares.
Odeen (6) 94 — % Maria Pinelli (7) 383 — % Patricia Pomies 31,641 0.07 % Patricio Pablo Rojo 1,410 — % Linda Rottenberg (8) 2,094 — % Martín Gonzalo Umaran (9) 407,161 0.96 % Diego Tártara (10) 14,226 0.03 % Juan Ignacio Urthiague (11) 9,930 0.02 % Andrea Mayumi Petroni Merhy — — % Wanda Weigert (12) 20,282 0.05 % All Directors and Senior Management as a group 1,143,620 2.68 % *Less than 1% 5% or More Shareholders: BlackRock, Inc.
Odeen (6) 152 * Maria Pinelli (7) 922 * Andrea Mayumi Petroni Merhy (8) 539 * Juan Ignacio Urthiague (9) 9,229 * Patricia Pomies 8,005 * Yanina Maria Conti (10) 2,093 * Patricio Pablo Rojo 5,345 * Wanda Weigert (11) 18,002 * Diego Tártara 8,460 * All Directors and Senior Management as a group 1,117,915 2.58 % *Less than 1% 5% or More Shareholders: T.
Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 147,166 common shares held by such company. (4) Includes 94 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable.
Subsequently, the trust transferred its Revocable Englebienne Trust Shares to a BVI company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust. Angerona Group Administration Limited is the sole director of the BVI company and holds voting and dispositive power over the 127,166 common shares held by such entity.
It has sole dispositive power with respect to 3,459,462 shares, and shared dispositive power with respect to 1,320 shares. The address of J.P. Morgan Chase & Co.´s principal business office is 383 Madison Avenue, New York, NY 10179. (17) Based on a Schedule 13G filed with the SEC on February 14, 2023, of the common stock beneficially owned, T.
It has sole dispositive power with respect to 2,292,516 shares. The address of J.P. Morgan Chase & Co.´s principal business office is 383 Madison Avenue, New York, NY 10179. B. Related Party Transactions For a summary of our revenue and expenses and receivables and payables with related parties, please see note 24 to our audited consolidated financial statements.
(15) Based on a Schedule 13G/A filed with the SEC on February 9, 2023, Morgan Stanley beneficially owns 2,166,419 of our common shares; has shared voting power with respect to 2,046,318 shares and shared dispositive power with respect to 2,166,419 shares. The address of Morgan Stanley´s principal business is 1585 Broadway, New York, NY 10036.
Rowe Price New Horizons Fund, Inc. is 100 E. Pratt Street, Baltimore, MD 21202. (13) Based on a Schedule 13G/A filed with the SEC on February 9, 2024, Wasatch Advisors, LP beneficially owns 3,145,883 of our common shares, and has sole and dispositive power with respect to all of such shares.
As of February 10, 2023, we had 168 holders of record in the United States with approximately 95.75% of our issued and outstanding common shares.
As of February 10, 2024, we had 160 holders of record in the United States with approximately 96% of our issued and outstanding common shares. 86 Number Percent Martín Migoya (1) 302,474 * Guibert Englebienne (2) 325,738 * Martín Umaran (3) 417,321 * Francisco Álvarez-Demalde (4) 17,002 * Linda Rottenberg (5) 2,633 * Philip A.
Removed
Number Percent Directors and Senior Management Francisco Álvarez-Demalde (1) 188 — % Yanina Maria Conti (2) 1,700 — % Guibert Andres Englebienne (3) 352,075 0.83 % Richard Haythornthwaite (4) 2,094 — % Martín Migoya (5) 300,342 0.71 % Philip A.
Added
Rowe Price Associates, Inc. (12) 3,951,741 9.14 % Wasatch Advisors, LP (13) 3,145,883 7.28 % BlackRock, Inc. (14) 2,739,082 6.33 % J.P. Morgan Chase & Co (15) 2,292,516 5.30 % * Represents beneficial ownership of less than 1%.
Removed
(13) 2,908,590 6.85 % Wasatch Advisors, LP (14) 2,441,952 5.75 % Morgan Stanley (15) 2,166,419 5.11 % J.P. Morgan Chase & Co. (16) 3,460,782 8.16 % T. Rowe Price Associates, Inc. (17) 3,086,471 7.27 % (1) Includes 94 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable.
Added
(10) Includes 1,000 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. (11) Includes 15,000 common shares issuable upon exercise of vested options and settlement of RSUs, as applicable. 87 (12) Based on a Schedule 13G/A filed with the SEC on February 14, 2024, T.
Removed
Englebienne that was established for the benefit of Mr. Englebienne, his wife and certain charitable organizations. Subsequently, the trust transferred its Revocable Englebienne Trust Shares to a BVI company wholly owned by the trust. Angerona Trust Company LLC acts as the independent trustee of the trust.
Removed
(16) Based on a Schedule 13G filed with the SEC on January 9, 2023, J.P. Morgan Chase & Co. beneficially owns 3,460,782 of our common shares. It has sole voting power with respect to 3,038,562 shares, and shared voting power with resect to 11,090 shares.
Removed
Rowe Price New Horizons Fund, Inc. is 100 E. Pratt Street, Baltimore, MD 21202. B. Related Party Transactions For a summary of our revenue and expenses and receivables and payables with related parties, please see note 24 to our audited consolidated financial statements.

Other GLOB 10-K year-over-year comparisons