Adjusted diluted EPS for the quarter was $1.48, $0.02 above our guidance, representing a 16.5% year-over-year increase based on 43.7 million average diluted shares. Regarding balance sheet management, as of the third quarter of this year, we continue to carry a net cash position. Our cash and cash equivalents and short-term investments amounted to $219.3 million. As of September 30, 2023, we had a total amount of $50 million drawn from our credit facility. From a liquidity perspective, we continue to have ample funding available through our revolving credit facility providing us with resources to continue to execute our capital allocation and M&A strategy going forward. Year-to-date, in 2023, we have produced approximately $67.4 million of free cash flow, a significant improvement from the $17.8 million produced in the same period last year.
This has been mainly driven by improvements in our working capital and tax management. As always, our free cash flow generation is much stronger in the second half of the year. Moving forward, let’s discuss our outlook for the fourth quarter and the full year 2023. We continue to see industry-leading growth going into Q4. Throughout 2023, we experienced improvement in our discussions with clients compared to H2 2022. And we believe that the short-term outlook remains constructive. In terms of the full year guidance, we expect our full-year 2023 revenue to be at least $2.094 billion, a solid 17.6% year-over-year growth. This implies revenues for the fourth quarter of approximately $579 million. From a profitability perspective, we expect our adjusted operating income margin in the 15% to 16% range, both for the fourth quarter of 2023 and for the full year.
For the fourth quarter and for the full year, 2023 IFRS effective income tax rate is expected to be in the 20% to 22% range. Our adjusted EPS for Q4 is expected to be at least $1.60, assuming 43.9 million average diluted shares outstanding for the quarter. Finally, our adjusted diluted EPS for 2023 is expected to be at least $5.72, assuming 43.6 million average diluted shares for the year. Thanks, everyone, for participating in the call and for your coverage and support.
A – Arturo Langa: Thank you, Juan, and hi, everyone. So, as we go through the question-and-answer section of this call, I will first announce your name. At this point, please unmute your line and ask your questions. Please mute your line after your question is done. And we also ask you to please limit your question — sorry, to please limit your time to one question and one follow up. So with that in mind, we will take the first question from Tien-Tsin Huang from JPMorgan. Tien-Tsin, please go ahead.
Tien-Tsin Huang: Thanks, Arturo. Hope you can hear me. Everything looks really clean here. So, I’ll ask about the top client, because we get a lot of questions around that with Disney, up 8%. It rebounded like you said it would last quarter. So I know Disney has also announced some cost-cutting again recently. So, does this change your outlook or visibility with discount? What’s implied in the fourth quarter? Can you share that?
Martin Migoya: Hey, Tien-Tsin, thank you so much. As you know, we have a great relationship with Disney, and we grew sequentially on last — on the quarter that we are reporting now. We’re seeing very good traction on the projects that we have. We don’t see any impact on the things that has been announced. And as always, our expectations to keep on expanding and growing in that — with that specific relationships — relationship is good. So, this is all the information I can provide right now.
Tien-Tsin Huang: Okay. Fair enough. And just my quick follow-up on the headcount side. I know the attrition was very low. Utilization seems like it’s in a good place. But as we get into the fourth quarter and going into ’24, what else can you tell us on the headcount management side, across hiring, attrition, utilization, attrition, that kind of thing, especially on the impacts on gross margin?
Juan Urthiague: Maybe I can take the first part, and I will then ask Pat to help me with this. So, in terms of net additions, I think we have very good news this quarter. After two quarters of sequential declines, we went back to growing sequentially, both on the organic side and also when we have the team that came with Pentalog. So, I think it was interesting to see this change in that trend, which we expect to continue into Q4. We expect, again, organic growth in terms of net additions in the fourth quarter. As for utilization, it’s running at around 80.5%. It’s still below our historic numbers. We used to run between 82% and 84%, and that’s where we target to be, right? It’s going to take some time. But eventually, we plan to get to those levels.
In terms of margins, we believe that we are still being impacted by FX in Latin America. That trend has not changed. We are seeing a very strong Mexican peso, very strong Colombian peso, very strong Chilean peso. So, we expect our gross margins for the short term to be at a similar level where they are today. I don’t know, Pat, if you want to tell a little bit about hiring…
Patricia Pomies: Yes, of course. In terms of attrition, I mean, we are the lowest. And I think that is, of course, the market, I mean, we have seen a stop from the competitors in terms of the hiring, and we keep growing, and of course, about the value proposition that Globant is bringing to the table. It’s really interesting for the new generations for the IT sector. We have been working a lot in the last couple of years, as you know, about the value that we bring into the table, the experiences that we are bringing with all our Globers in terms of upskilling and reskilling, in terms of how they can experiment their offices. Now we turned offices into hubs. So the hubs are the social places where they can connect with other Globers, and we are seeing really growth impact there.
