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RIYADH - Globant (NYSE: GLOB), a $4.47 billion market cap company specializing in digital transformation, has established its Middle East Regional Headquarters in Riyadh, Saudi Arabia. According to InvestingPro data, the company maintains healthy financials with a 36% gross profit margin and moderate debt levels. This move represents a significant expansion for the company, which entered the region less than three years ago. The new headquarters will focus on delivering advanced AI solutions and fostering local IT talent to support digital initiatives across various sectors.
The digital transformation market in the Middle East, particularly in Saudi Arabia, is witnessing considerable growth. Gartner predicts a 7.4% increase in IT spending in the MENA region, reaching $230.7 billion in 2025. Specifically, IT services spending in Saudi Arabia is expected to grow at a CAGR of 9.0% from 2022 to 2027, according to IDC.
Globant’s revenue in the Middle East & APAC surged by 84.4% year-over-year in Q1-25, reflecting the company’s growing influence in the region. The Riyadh HQ will serve as a platform for Globant to train local professionals in AI, aiming to develop a skilled workforce capable of leading AI-driven projects.
Martín Migoya, Co-founder and CEO of Globant, emphasized the company’s commitment to contributing to Saudi Arabia’s digital reinvention and leveraging the potential of the Kingdom’s young talent. Federico Pienovi, CEO & CBO of New Markets at Globant, highlighted the strategic importance of the new hub in serving regional organizations and exporting talent and best practices globally.
The Riyadh office also features Globant’s third global "Playground," an innovative space that offers immersive experiences combining sports, AI, and customer engagement. This initiative aligns with Globant’s efforts to drive digital transformation and support Saudi Arabia’s Vision 2030 by fostering local talent and building partnerships.
Mamdouh Aldoubayan, Managing Director for MENA at Globant, expressed optimism about the opportunities presented by Riyadh’s tech ecosystem for showcasing the company’s leadership in digital transformation.
This expansion by Globant underscores the company’s role in the global technology landscape, having been recognized as a leader in AI services and media consultation by IDC MarketScape reports. With a presence in 36 countries and a workforce of over 31,100 employees, Globant continues to bridge the gap between businesses and consumers through innovative technology solutions. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued at its current price of $101.39. Investors can access detailed valuation metrics, 8 additional ProTips, and comprehensive financial analysis through InvestingPro’s exclusive research report.
The information in this article is based on a press release statement.
In other recent news, Globant S.A. has reported several notable developments following its first-quarter earnings announcement. Jefferies, TD Cowen, Mizuho Securities, Goldman Sachs, and Needham have all adjusted their price targets for the company, reflecting a challenging period marked by revised revenue guidance and earnings forecasts. Jefferies has lowered its price target to $125 but maintained a Buy rating, citing potential for long-term growth despite short-term setbacks. Similarly, TD Cowen reduced its target to $125, maintaining a Buy rating while highlighting the cyclical nature of the company’s current challenges.
Mizuho Securities set a new price target of $153, maintaining an Outperform rating, and pointed to temporary issues impacting Globant’s performance, particularly in Latin America. Goldman Sachs, however, downgraded the stock from Buy to Neutral, cutting the price target to $120, reflecting concerns over flat growth projections and challenges in key sectors. Meanwhile, Needham lowered its target to $115 but upheld a Buy rating, suggesting that the current market valuation might present an attractive opportunity for investors.
Globant’s revised guidance indicates a cautious outlook, with revenue growth projections for 2025 significantly reduced. The company faces headwinds in Latin America and other sectors, leading to adjustments in revenue and earnings estimates. Despite these challenges, several analysts remain optimistic about the company’s long-term prospects, underscoring its competitive edge and potential for recovery.
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