Globant S.A. (NYSE:GLOB) Q2 2023 Earnings Call Transcript

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Diego Tartara: If I may chime in with a small comment. I think you’re spot on with regards to there’s definitely a difference. In fact, within the enterprise studio, most of the career path and the talent is heavily based on certification. And this is required by the partnerships, and this is a big change. But the good thing about that, about the differences is that we — remember that at the core, we are organizing studios, and they are actually taking care of that, the full pipeline from attracting the talent to delivery. So this actually, for Globant, is our bread and butter. It’s how we do things.

Bryan Bergin: Okay. That’s very clear. Thank you guys.

Martin Migoya: And, one last comment on that. Sorry, you hit a very specific point. And one more comment on that is that people that joins Globant, they’re not joining an enterprise studio. They are joining to be part of a story of reinvention of the industry. And this is what people like to do. People like to do and to belong to teams that are thinking very big, that are trying to do something really different for the whole market. And this is the case of Globant, and this is why many of the people are joining us. Sorry, go ahead with your question.

Bryan Bergin: No, no, no. I was thanking you for all the details. So thank you all.

Patricia Pomies: Thank you. See you. Bye-bye.

Martin Migoya: Thank you.

Arturo Langa: Thank you, Bryan. Our next question comes from Surinder Thind from Jefferies. Surinder. Please go ahead.

Surinder Thind: Thank you. So, for my first question, just going back to the question about the Studios here, it seems like every quarter you’ve got a new Studio or two that you launch. At what point does that structure potentially become a bit unwieldy, and then what happens to Studios maybe you launched two years ago, something like the Meta Studio where I assume uptake probably isn’t that strong?

Diego Tartara: So, I’ll take it. So, actually one of the things — we are launching Studios — there is a process of maturity and evolution that makes us launch Studios. And — but we are also combining Studios whenever it makes sense. Just as an example, what we now call digital experiences encompasses lots of Studios that were there before, like UI Development, Mobile, et cetera, that now can be handled within one portion of the ecosystem. The second one is, we’re constantly challenging the structure in how that structure is maintained. In fact, we are actually doing changes as we speak that we’ll announce shortly. They have to do on how we manage them, the ecosystems. So, one of the things is that, we created — we reorganized the Studios in four networks.

And they will be managed and in a way that they will become much closer to the business, not only to the talent. So I think — I think the number of Studios that we have and how we manage them is always, we never chew more than — or bite more than what we can chew. We know what we’re doing, what we are developing, what the market is requiring and what the talent is requiring as well. So, with all of that combined is that we are making the announcements and launching the new Studios.

Martin Migoya: Yeah. The new Studios will be packed into four different groups as Diego mentioned, do you want to go through the different four packs?

Diego Tartara: Yeah, definitely. We have the Reinvention Studios that you are all aware, they have to do with reinventing industries. We have the Digital Studios that are around technologies and solution types. Then we have Create, which we recently launched. It was announced on our last quarter. And last, we have…

Martin Migoya: The Enterprise.

Diego Tartara: The Enterprise — we were talking about that before. The Enterprise Studio, which encompasses all the solution that have — all the solutions that have to do with Enterprise and their operations.

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