Bryan Bergin: Okay. That’s good to hear. And then, the follow-up is on Globant X. So, I’m curious if you’ve considered selling any of these solutions entirely or perhaps bringing in a third-party investment partner like a JV just to accelerate scaling or just to monetize in a different way?
Martin Migoya: Yes. Yes, I will provide more color, no worries. Yes, we’re thinking about that. I mean, we believe in autonomy, and autonomy must be reached in some way. And we believe in external investors helping us with our own platforms and trying to — I mean, the platforms that we’re creating are extremely relevant for what’s happening on technology and that attracts external investors. So now it’s about how we provide, like, a good place for them to be and invest together with us into the creation of those kind of spin-offs or something like that. So, this is how we are seeing moving forward. It’s a very clear vision we have. I mean, we are taking our time to execute that and to see how those things are going. But yes, it’s very clear on the agenda.
Bryan Bergin: Thank you.
Martin Migoya: Thank you so much, Bryan.
Arturo Langa: Thank you, Bryan. So, our next question comes from Kate Kronstein from William Blair. Kate, please go ahead. Your line is open. I think you’re on mute, Kate. Sorry.
Patricia Pomies: Yes, they’re mute.
Kate Kronstein: How about now?
Martin Migoya: Good.
Patricia Pomies: Yes.
Kate Kronstein: Great. Hi, everyone. This is Kate on for Maggie. Congrats on the nice quarter. My first question is, can you talk about Pentalog’s performance during the quarter? And how it’s performing versus your original expectations?
Juan Urthiague: So, I’ll take that one. So, in this quarter we grew 9.8% sequentially. Let me get the right number in front of me. We grew 9.6%, 9.8%, whatever. Out of that, 5.5% was organic sequential growth and the rest was brought by Pentalog. The initial few months of having Pentalog into the company have been great. We continue now — we now have a more meaningful operation in France. We also have definitely a much bigger team out of Romania, which is their main development center that Pentalog had. And we also are in contact with some of their top customers, which are very large manufacturing companies, very large professional services companies, and very large tech companies. So all in all, initial months of integration, of course, it’s going to take more time, but positive news coming from there.
Patricia Pomies: Also in terms of integration there, I mean the team, the leadership team of Pentalog have been fully integrated into the Europe region, and they’re working together in many, many clients. We’re expanding our offering also with the force that Pentalog bring to the table and also opening more doors in the existing clients. You know that one of the strategic reasons of Globant is being — getting deeper and deeper into the strategic clients, into the clients that we really want to be very meaningful, and we build partnerships with them. So I think that having this kind of footprint there has been very amazing. So, we are very, very happy with the things that are going. Of course, we need to continue working together in order to keep growing and doing much efforts in the Europe area.
Kate Kronstein: Great. Thank you for that color. And my follow-up question would be, can you guys talk a little bit about the demand you’re seeing geographically? In your last quarter, your comments around the U.S. and Europe were definitely more positive than what your peers were seeing. So, any commentary on that would be helpful.
Juan Urthiague: Maybe I can start and then I can ask Martin to complement. But I think this was a great quarter because when you look at the three main regions, Europe, LATAM and the U.S., they all grew sequentially and year-over-year. At the same time, when you look at all the industries, all of them grew sequentially and all of them grew year-over-year. When we look at Top 1 customer, we went back to sequential growth. When you look at 2 to 5, 6 to 10, 11 to the end, they all grew. So, I think from our revenue point of view, this was a very interesting quarter. And going forward, again, we are seeing positive news coming from the U.S. Still not like booming that it used to be, but we are back into growth mode for a few quarters already in the U.S., and I think that the opportunity is there, it’s a massive market.
We have the best companies out there as customers. Our portfolio in the U.S. is amazing. And the deals that the team is currently working on I think are very interesting because they’re going to give us scale, they’re going to give us the opportunity to keep on expanding our operation in the U.S.
Martin Migoya: And the only thing I want to add to that comment is I think this is a market share war. I mean, this is what’s happening right now. And Globant has been very successful fighting that battle. Of course, we wake up every morning and we win or lose, but at the end of day, we won — we won more than what we lose. So, it looks like — I hope, and it looks like next year will be slightly different because investments will be a little bit different once the interest rate is stable and no news are coming there and people know how much money cost, then it will be easier for batches to go back into the other mode. But this year, 2023 has been a massive battle on market share. So this is why we are seeing Globant growing higher than our peers. And I wanted to point this out because for me it’s very important to all the market to understand which is the situation now and why Globant is growing faster.
