Kate Kronstein: Great. Thank you all.
Martin Migoya: You’re very welcome. Thank you so much.
Arturo Langa: Thank you, Kate. So, our next question comes from Divya Goyal from Scotiabank. Divya, please go ahead. Your line is open.
Divya Goyal: Good evening, everyone. So, I’m — Arturo, can you hear me okay?
Arturo Langa: Yes, we can hear you, Divya.
Divya Goyal: Perfect. So, I wanted to actually elaborate on this question of the geographic growth here. So, this quarter, North America, from what we see, grew by approximately 8%, and Europe, obviously, grew sizably by 96.5%, and that includes the Pentalog growth. Could you provide some color on how exactly should we expect the next few quarters to be and going forward, especially considering where the markets have been across North America?
Juan Urthiague: Overall, I think for the next quarter, I think that North America and LATAM and Asia and Oceania will drive the growth, whereas Europe will be a little bit more stable. And then looking into next year, as we speak currently on the budget for the year, we are expecting growth in all regions. But short term, that’s the answer. And again, for next year, we expect all regions to contribute to the growth of the company.
Divya Goyal: Juan, just to confirm here, do you think it will be possible to continue to maintain the growth in this high-single-digits for North America just because of how important that segment is for the company?
Juan Urthiague: Yeah, we definitely will be looking for more than that for next year.
Divya Goyal: And just if I may ask a follow-up on the client mix, could you help us understand what is the client mix broadly for the company? Do you see yourself expanding into the enterprise clients a lot more or is it a fair mix of enterprise, mid-market and the small, medium business clients?
Juan Urthiague: We will always — I mean we have a strategy that we call 100-squared which basically means that we focus on companies that have the potential to generate $100 million over time in revenues. And by definition, you need to go to large companies, large scale companies, which are investing large amount of money in technology, in marketing, in enterprise, and across all those areas. So, our number one — our typical customer is the big company. Of course we have a big number of medium-sized companies as well. And in terms of small companies, what we like to work with those small companies that are innovating, that are creating new things, new technologies, and somehow we want to get involved in those projects as well. But that’s not the target customer. We’re not going to build a $10 billion revenue company with very small companies. That’s impossible to achieve.
Arturo Langa: Thank you, Divya. So, our last questions of the day come from Surinder Thind from Jefferies. Surinder, please go ahead. Your line is open.
Surinder Thind: Thank you. So, I’d like to start the question about just — there’s mention of a new global account model and potentially the way that you incentivize the sales force. Just any additional color there that we should be aware of? And what does it really mean to have a new global account model?
Martin Migoya: I commented that based on the Globant X incentive plan that we created. And for years, we have had like a problem like matching — I mean nothing changed, but the problem like matching the amount of revenue that Globant creates compared to the amount of revenue that platform creates and how that gets like disproportion, right? So in general, then if you include that in the quota directly, then it’s so — it’s not that meaningful. So, we change the way to understand when the bonus get triggered using a rationale which is different in terms of when they sell platforms or when we do cross-selling so on and so forth. So that was my mention, just to say that.
Surinder Thind: Got it.
Martin Migoya: I know it wasn’t clear, but…
Surinder Thind: No, thank you. And then I guess in terms of — there’s been a lot of discussion or the focus has been on AI in the commentary. Where have those conversations progressed to at this point? Obviously, there’s been a lot of proof of concept work. Do you see anything advancing to the next stages? And then does it even make sense to kind of talk about or separate AI as I’m assuming you’re solving business problems and the more we go forward in time, I assume all solutions at some point incorporate more technology?
Martin Migoya: Yeah, look, I will let Diego, but for me, the amount of revenue is already meaningful. I mean, it’s not that it was at the very beginning of the year that was not something important for the company. Now it’s something that makes sense. And on the other side, we still see that all those projects are still composed by exploratory projects. We’re seeing conversations starting to progress a little bit more, but the vast majority of our revenue created there are by small projects in many different places, and pretty much all of them connected with generative AI. And I don’t know, Diego, if you want to add some color to that?
Diego Tartara: Yeah, definitely. I think I’m going to do a slight correction there. We’re not actually doing that much proof of concept. Even though it can be a stage to release to the next stage with the technology, we’re doing projects with a moderate spend that have high ROI, which is quite different. We are doing productive type of work. So, there’s a lot of work of, I don’t know, RAG systems like document retrieval, augmentation, et cetera, where generative AI plays, it’s amazing the results you get. Those are clear examples, low-hanging fruit where definitely companies can get a lot of value out of a moderate spend. The change we’re seeing, and this is actually interesting, is that we’re working at least with three clients with a higher spend where they said, “Okay, I know there’s a ton of things I can do with AI.
