Q4 2023 Globant SA Earnings Call

February 15, 2024

[music].

Arturo Langa: Good day and welcome to Globant's fourth quarter 2023 earnings conference. I am Arturo Langa, Investor Relations Officer at Globant. All participants on this call will be in listen-only mode.

Good day and welcome to <unk> fourth quarter 2023 earnings Conference call.

Speaker Change: Zero Langer Investor Relations officer at <unk>, all participants on this call will be on listen only mode. After today's presentation, there will be an opportunity to ask questions kindly refrain from racing hands as we will aim to address a select number of questions to ensure efficiency.

Arturo Langa: After today's presentation, there will be an opportunity to ask questions. Please refrain from raising hands as we'll aim to address a select number of questions to ensure efficiency. Please note this event is being recorded and streamed live on YouTube. By now, you should have received a copy of the earnings release.

Speaker Change: Please note. This event is being recorded and stream light on Youtube.

Speaker Change: By now you should have received a copy of the earnings release, if you have not a copies are available on our website investors <unk> com or.

Arturo Langa: If you have not, a copy is available on our website, investors.globant.com. Our speakers today are Martn Migoya, co-founder and chief executive officer. Juan Urthiague, Chief Financial Officer; Patricia Pomius, Chief Operating Officer; and Diego Tartara, Global Chief Technology Officer. Before we begin, I would like to remind you that some of the comments on our call today may be deemed forward-looking statements. This includes our business and financial outlook and the answers to some of your questions. Such statements are subject to risks and uncertainties as described in the company's earnings release and other filings with the SEC.

Our speakers today are Martin <unk> co founder and Chief Executive Officer, Otto Garrett Chief Financial Officer, Patricia Bobby's, Chief operating officer, and they will start at a global Chief Technology Officer.

Good day and welcome to <unk> fourth quarter 2023 earnings Conference call.

Hello, Lana Investor Relations officer at <unk>.

All participants on this call will be on listen only mode. After today's presentation, there will be an opportunity to ask questions kindly refrain from racing hands as will aim to address a select number of questions to ensure efficiency.

Speaker Change: Before we begin I would like to remind you that some of the comments on our call today may be deemed forward looking statements. This includes our business and financial outlook and the answers to some of your questions such statements are subject to the risks and uncertainties are described by the company's earnings release and other filings with the SEC. Please.

Please note. This event is being recorded and streamed light on Youtube.

By now you Should've received a copy of the earnings release, if you have not a copy is available on our website investors Doug Lawler on Dot com.

Speaker Change: Please note that we follow <unk> accounting rules in our financial statements. During our call today, We will report non <unk> or adjusted measures, which is how we track performance internally and the easiest way to compare <unk> to our peers in the industry you will find a reconciliation of <unk> and non <unk> measures at the end of the press release, we have published in our Investor website announcing this quarter.

Martín Migoya: Please note that we follow IFRS accounting rules in our financial statements. However, during our call today, we will report non-IFRS or adjusted measures, which is how we track performance internally and the easiest way to compare Globant to our peers in the industry. You will find a reconciliation of IFRS and non-IFRS measures at the end of the press release we will publish on our investor's website announcing this quarter's results. I'd like now to turn the call over to Martn Migoya, our CEO. Good afternoon, everyone.

Our speakers today are Martin <unk>, co founder and Chief Executive Officer.

No David Chief Financial Officer, Patricia Bobby's, Chief operating officer, and they will start at a global Chief Technology Officer before.

Before we begin I would like to remind you that some of the comments on our call today may be deemed forward looking statements. This includes our business and financial outlook and the answers to some of your questions such statements are subject to the risks and uncertainties as described by the company's earnings release and other filings with the SEC. Please.

Speaker Change: I'd like now to turn the call over to Martin <unk> our CEO.

Good afternoon, everyone I'm happy to be here to report our earnings results from Q4, and the full year of 2023 as we Mark our first 20 years, we're very proud of what we have accomplished as a company.

Martín Migoya: I'm happy to be here to report our earnings results for Q4 and the full year of 2023. As we mark our first 20 years, we are very proud of what we have accomplished as a company. First, our quarter's results. In Q4 2023, Globant made $580.7 million in revenue, representing an 18.3% increase year-over-year and 6.5% quarter-over-quarter. We continue to demonstrate our ability to grow profitability, to generate cash, and to manage our robust balance sheet. Total revenue for 2023 was a record $2.1 billion.

Please note that we follow <unk> accounting rules in our financial statements. During our call today, We will report non <unk> or adjusted measures, which is how we track performance internally and the easiest way to compare <unk> to our peers in the industry you will find a reconciliation of <unk> and non <unk> measures at the end of the press release, we will publish in our investor website announcing this quarter's.

Martin: First our quarter's results in Q4, 2023 global made $587 million in revenue, representing an 18.3% increase year over year, and six 5% quarter over quarter, we continue to demonstrate our ability to grow profitability to generate cash.

I'd like now to turn the call over to Martin <unk> our CEO.

Martin: And to manage our robust balance sheet total revenue for 2023 was a record $2.1 billion. This was above our guidance and represents 17, 7% year over year growth.

Martín Migoya: This was above our guidance and represents 17.7% year-over-year growth. Last year, we entered over 10 new markets, each with exciting growth opportunities for both our clients and delivery network. We also began exciting relationships with more than 250 new clients. We keep expanding and diversifying our service offering. The Globant concept means the simplicity of having a trusted end-to-end partner, one that can craft multiple solutions with a larger breadth of services, platforms, and capabilities.

First our quarter's results in Q4, 2023 global made $587 million in revenue, representing an 18, 3% increase year over year, and six 5% quarter over quarter, we continue to demonstrate our ability to grow profitability to generate cash.

Martin: Last year, we entered over 10, new markets each with exciting growth opportunities for both our clients and delivery networks. We also began exciting relationships with more than 250, new clients, we keep expanding and diversifying our service offering the global concept means the simplicity of having a trusted end to end part.

And to manage our robust balance sheet total revenue for 2023 was a record $2.1 billion. This was above our guidance and represents 17.7% year over year growth last year, we entered over 10, new markets each with exciting growth opportunities for both our clients and delivery network.

Martin: One that can craft multiple solutions with a larger breadth of services platforms and capabilities over the past year. We have launched seven new studios in line with the expanding needs of the market I am encouraged to see that global global recognition continues to spread brand finance has recently named <unk>.

Martín Migoya: Over the past year, we have launched seven new studios in line with the expanding needs of the market. I am encouraged to see that Globant's global recognition continues to spread. Brand Finance recently named Globant the world's fastest growing IT brand and the fifth strongest IT brand globally.

We also began exciting relationships with more than 250, new clients, we keep expanding and diversifying our service offering the global concept means the simplicity of having a trusted end to end partner one that can craft multiple solutions with a larger breadth of services platforms and capabilities.

Martin: <unk> as the world's fastest growing brand and the fifth strongest brand globally, the future growth of our total addressable market remains promising after an uncertain 2023 for it spending Gardner estimates momentum to return in 2024 with six 8% expected growth.

Martín Migoya: The future growth of our total addressable market remains promising. After an uncertain 2023 for IT spending, Gartner estimates momentum to return in 2024, with 6.8% expected growth globally. From cloud migration to data management strategies, digital branding projects to AI initiatives, companies are resuming investments to stay ahead of the innovation curve. We see this change reflected in our pipeline. Clients are requesting a wider range of transformation projects that require more sophisticated and dynamic solutions.

Over the past year, we have launched seven new studios in line with the expanding needs of the market I am encouraged to see that global <unk> Global recognition continues to spread brand finance has recently named globally as the world's fastest growing brand and the fifth strongest brand globally. The few.

Martin: Globally from cloud migration to data management strategy digital branding projects to AI initiatives companies are resuming investments to stay ahead of the innovation curve. We see this change reflected in our pipeline clients are requesting a wider scope of transformation projects that require more sophisticated and dynamic solutions.

Growth of our total addressable market remains promising after an uncertain 2023 for it spending Gardner estimates momentum to return in 2024 with six 8% expected growth globally from cloud migration to data management strategy digital branding projects to AI initiatives.

Martín Migoya: As we close 2023, we saw a higher demand for projects with AI components. The AI-related business is outpacing the total growth of our service offering. According to Forrester, generative AI will have a 36% CAGR through 2030 to finally capture 55% of the AI software market. Gartner estimates that by 2027, 90% of service providers will use generative AI for software development services, including code compiling and optimization, automated debugging, and automated quality assurance testing.

Martin: As we close 2023, we saw a higher demand for projects with AI components. The AI related business is outpacing the total growth of our service offering. According to Forrester generative AI will have a 36% CAGR through 2030 to finally capture 55% of the AI software market.

Companies are resuming investments to stay ahead of the innovation curve. We see this change reflected in our pipeline clients are requesting a wider scope of transformation projects that require more sophisticated and dynamic solutions as we close 2023, we saw a higher demand for projects with AI components, the AI related business.

Martin: Gartner estimates that by 2027, 90% of service providers will use generative AI for software development services, including code, compiling and optimization automated debugging and automated quality assurance testing globally has been significantly investing to take advantage of the estimated 450.

<unk> is outpacing the total growth of our service offering according to Forrester generative AI will have a 36% CAGR through 2030 to finally capture 55% of the AI software market Gartner estimates that by 2027, 90% of service providers will use generative AI for software development services.

Martin: Dollar opportunity, we see in AI services since the consolidation of our AI studio, we have built up capabilities. In this space that are ready to apply now that AI is going truly mainstream and with it service companies as the proxies for adoption globally has completed over 500 AI centric projects in nearly every.

Martín Migoya: Globant has been significantly investing to take advantage of the estimated $450 billion opportunity we see in AI services. Since the consolidation of our AI studio, we have built up capabilities in the space that are ready to apply now that AI is going truly mainstream, and with IT service companies as the proxies for adoption. Globant has completed over 500 AI-centric projects in nearly every field of AI, including predictive analytics, natural language programming, computer vision, and custom-made neural networks, among others. For generative AI, we have been leveraging many of the large language models since 2017 in internal applications, powering efforts for code enhancement, feedback, and testing tools.

This is including code, compiling and optimization automated debugging and automated quality assurance testing globally has been significantly investing to take advantage of the estimated 450 billion dollar opportunity we see in AI services since the consolidation of our AI studio we have built up.

Martin: Field of AI, including predictive analytics natural language programming computer vision and custom made neural networks among others in generative AI, we have been leveraging many of the large language models since 2017 and internal applications powering efforts behind code enhancement feedback and testing tools.

<unk> in the space that are ready to apply now that AI is going truly mainstream and with it service companies as the proxies for adoption globally has completed over 500 AI centric projects in nearly every field of AI, including predictive analytics natural language programming computer vision and custom made neural net.

Martin: This has given us a head start in developing and deploying Gen. AI. One example is our work with the Latin American E Commerce powerhouse of Mercado Libre.

Martin: We are leveraging generative AI and machine learning for provider assistance fraud, and anomaly detection and generation of financial reports, we are particularly excited about this project due to the impact it can have on the Mercado Libre ecosystem, which includes Fintech logistics digital marketing and more.

Works among others in generative AI, we have been leveraging many of the large language models since 2017 and internal applications powering efforts behind code enhancement feedback and testing tools. This has given us a head start in developing and deploying Gen AI.

Martín Migoya: This has given us a head start in developing and deploying Gen-AI. One example is our work with the Latin American e-commerce powerhouse of Mercado Libre. We are leveraging generative AI and machine learning for provider assistance, fraud and anomaly detection, and generation of financial reports.

Martin: We also see a great opportunity to take advantage of the heightened appeal, we see in spatial computing. This technology is blurring the line between the physical and digital experience similar to the iPhone moment that journey I had last year spatial computing is gaining traction as new and exciting products such as the Apple vision pro are becoming widely.

One example is our work with the Latin American E Commerce powerhouse of Mercado Libre, we are leveraging generative AI and machine learning for provider assistance fraud, and anomaly detection and generation of financial reports, we are particularly excited about this project due to the impact it can have on the Mercado Libre ecosystem.

Martin: Available this presents a timely opportunity for us because we have been working in this space since 2022, when we began our work with magic leap.

Martín Migoya: We are particularly excited about this project due to the impact it can have on the Mercado Libre ecosystem, which includes fintech, logistics, digital marketing, and more. We also see a great opportunity to take advantage of the heightened appeal we see in spatial computing, which is blurring the line between the physical and digital experience.

Which includes Fintech logistics digital marketing and more we also see a great opportunity to take advantage of the heightened appeal, we see in spatial computing. This technology is blurring the line between the physical and digital experience similar to the iPhone moment that journey I had last year spatial computing is gaining traction as new.

Martin: We drew on the expertise from several of our studios to partner with them to develop their magic leap two headset.

Martin: Currently genex's teams are developing and accelerators, specifically designed for vision O S. The operating system of the vision probe. The accelerator will help create applications that inherently understand and adhere to the design and experience paradigms of vision O S. We will be offering a beta version to clients next.

Martín Migoya: Similar to the iPhone moment that Gen AI had last year, spatial computing is gaining traction as new and exciting products, such as the Apple Vision Pro, are becoming widely available. This presents a timely opportunity for us because we have been working in this space since 2022 when we began our work with Magic Leap. We drew on the expertise from several of our studios to partner with them to develop their Magic Leap 2 headsets. Currently, GeneXus teams are developing an accelerator specifically designed for Vision OS, the operating system of the Vision Pro.

An exciting products such as the Apple vision pro are becoming widely available. This presents a timely opportunity for us because we have been working in this space. Since 2022, when we began our work with magic Leap, we drew on the expertise from several of our studios to partner with them to develop their magic leap to headset.

Month as globally has been able to deliver early on in the generative AI space. We are confident in our ability for a similar execution as the spatial computing sector grows I am confident that global boasts one of the more sophisticated and proficient teams in the world to make this adoption happen.

Currently genex's teams are developing and accelerators, specifically designed for vision O S. The operating system of the vision probe. The accelerator will help create applications that inherently understand and adhere to the design and experience paradigms of vision O S. We will be offering a beta version.

Martin: As a company there are several growth drivers that will move us forward first our global footprint every year globally is more diverse we are now present in a total of 33 countries. No. One country contains more than 20% of our workforce. This enables us with the adaptability to scale our project as quickly as is required.

Clients next month.

As global has been able to deliver early on in the generative AI space. We are confident in our ability for a similar execution as the spatial computing sector grows I am confident that global boasts one of the more sophisticated and proficient teams in the world to make this adoption happen.

Martín Migoya: The accelerator will help create applications that inherently understand and adhere to the design and experience paradigms of Vision OS. We will be offering a beta version to clients next month. As Globant has been able to deliver early on in the generative AI space, we are confident in our ability to deliver a similar execution as the spatial computing sector grows. I am confident that Globant boasts one of the more sophisticated and proficient teams in the world to make this adoption happen. As a company, there are several growth drivers that will move us forward. First, our global footprint. Every year, Globant gets more diverse. We are now present in a total of 33 countries. No one country contains more than 20% of our workforce.

Martin: Regardless of time zone culture or logistics, among our global delivery network, our prominence in Latin America, our home region is particularly beneficial right now as more of the biggest companies choose this region due to its proximity multilingualism and adaptability in the past months, we have made significant <unk>.

As a company there are several growth drivers that will move us forward first our global footprint every year globally is more diverse we are now present in a total of 33 countries. No. One country contains more than 20% of our workforce. This enables us with the adaptability to scale our project as quickly as is required.

Martin: Investments in Mexico, and Brazil, the two largest economies and responsible for 38% of global revenue in the region. Because we are eager to take up this demand in Mexico over the past year, we have established a new team specifically dedicated to life sciences to address the fundamental changes and growth of the sector.

Regardless of time zone culture or logistics, among our global delivery network, our prominence in Latin America, our home region is particularly beneficial right now as more of the biggest companies choose this region due to its proximity multilingualism and adaptability in the past months, we have made significant <unk>.

Martin: Her in the region in Brazil, we have almost doubled our team over the past year betting high on keeping our leadership in enterprise applications, especially sales force and reinforcing digital transformation projects with the acquisition of eateries. We are optimistic about our future expansion. This year as we see a robust business piped.

Investments in Mexico, and Brazil, the two largest economies and responsible for 38% of global revenue in the region. Because we are eager to take up this demand in Mexico over the past year, we have established a new team specifically dedicated to life sciences to address the fundamental changes and growth of the sector.

Martín Migoya: This enables us with the ability to scale our projects as quickly as is required, regardless of time zone, culture, or logistics among our global delivery network. Our prominence in Latin America, our home region, is particularly beneficial right now, as more of the biggest companies choose this region due to its proximity, multilingualism, and adaptability. In the past months, we have made significant investments in Mexico and Brazil, the two largest economies and responsible for 38% of Globant's revenue in the region, because we are eager to take up this demand. In Mexico, over the past year, we have established a new team specifically dedicated to life sciences to address the fundamental changes and growth of the sector in the region.

Martin: Wine and organizations it expenditures recovering compared to last year regarding our studios the consolidation into our fourth studio networks is fostering ecosystems of ideas and expertise among our specialized business units cross pollination between studios is strengthening the 360 nature of our solutions.

Her in the region in Brazil, we have almost doubled our team over the past year betting high on keeping our leadership in enterprise applications, especially sales force and reinforcing digital transformation projects with the acquisition of eateries. We are optimistic about our future expansion. This year as we see a robust business piped.

Martin: As well as creating a pathway to cross selling beyond showcasing the amazing portfolio of services global offers it mirrors our vision for the industry moving forward. For example, the most recent acquisition of gut that Diego and myself will expand on later is a step of our drive to reinvent the creative marketing industry through technology.

Wine and organizations it expenditures recovering compared to last year regarding our studios the consolidation into our fourth studio networks is fostering ecosystems of ideas and expertise among our specialized business units cross pollination between studios is strengthening the 360 nature of our solutions.

Martin: Through areas, such as our enterprise studio network, which has experienced a forex increase in the past four years, we can serve clients regardless of their enterprise software of choice being cloud agnostic and vendor agnostic enables us to scale, our adaptable solutions to each client, we see increasing growth interest in the sports and entertainment.

As well as creating a pathway to cross selling beyond showcasing the amazing portfolio of services global offers it mirrors our vision for the industry moving forward. For example, the most recent acquisition of gut that Diego and myself will expand on later is a step of our drive to reinvent the creative marketing industry through technology.

Martín Migoya: In Brazil, we have almost doubled our team over the past year, betting high on keeping our leadership in enterprise applications, especially Salesforce, and reinforcing digital transformation projects with the acquisition of Iteris. We are optimistic about our future expansion this year as we see a robust business pipeline and our organization's IT expenditures recovering compared to last year. Regarding our studios, the consolidation into our four studio networks is fostering ecosystems of ideas and expertise among our specialized business units.

Martin: Payment industry as the sector reinvent itself streaming is quickly becoming the number one way to view live and sports. Additionally companies will need to rely on zero and first party data to maintain loyalty as fan engagement. This year will likely become cookie less globally has proven expertise in both air.

Through areas, such as our enterprise studio network, which has experienced a forex increase in the past four years, we can serve clients regardless of their enterprise software of choice being cloud agnostic and vendor agnostic enables us to scale, our adaptable solutions to each client, we see increasing growth interest in the sports and entertainment.

Martin: <unk> as well as in creating comprehensive fan experiences from working with FIFA on their FIFA plus platform to helping top sports teams understand their fan behavior, we focused our expertise and growth in this space through our joint venture with La Liga last year known as portion.

Payment industry as the sector reinvent itself streaming is quickly becoming the number one way to view live and sports. Additionally companies will need to rely on zero and first party data to maintain loyalty as fan engagement. This year will likely become cookie less globally has proven expertise in both air.

Martín Migoya: Cross-pollination between studios is strengthening the 360 nature of our solutions, as well as creating a pathway to cross-selling. Beyond showcasing the amazing portfolio of services Globant offers, it mirrors our vision for the industry moving forward. For example, the most recent acquisition of Gut, which Diego and myself will expand on later, is a step in our drive to reinvent the creative marketing industry through technology. Through areas such as our enterprise studio network, which has experienced a 4X increase in the past four years, we can serve clients regardless of their enterprise software of choice. Being cloud agnostic and vendor agnostic enables us to scale our adaptable solutions to each client. We see increasing growth interest in the sports and entertainment industry as the sector reinvents itself. Streaming is quickly becoming the number one way to view live TV and sports.

Martin: By leveraging technology data experienced design and business strategy, we are able to create new experiences emotionally connect with fans around the world and create tangible value for fans players sponsors and sports organizations in a sustainable way we have recently established this portion.

<unk> as well as in creating comprehensive fan experiences from working with FIFA on their FIFA plus platform to helping top sports teams understand their fan behavior, we focused our expertise and growth in this space through our joint venture with La Liga last year known as portion.

Martin: As a reward the first members include mono Ginobili, the NBA, all star and George Greg in Australia in rugby Captain and World Cup winner, we look forward to working with them to make our mark together on this fascinating and rapidly growing industry. In addition to our organic growth Q4 saw the incorporation of exciting new members to.

By leveraging technology data experience design and business strategy, we are able to create new experiences emotionally connect with fans around the world and create tangible value for fans players sponsors and sports organizations in a sustainable way we have recently established this portion.

Martin: The global family, including got in the United States and interests in Brazil announced in late November got brings a fire of creativity to global they were recognized as the 2023 Cannes Lions Independent network of the year and add weeks breakthrough agency of the year. They work with over 60 clients Globe.

As a reward the first members include monogenic really the NBA, all star and George Greg in Australia in rugby Captain and World Cup winner, we look forward to working with them to make our mark together on this fascinating and rapidly growing industry. In addition to our organic growth Q4 saw the incorporation of exciting new members to.

Martin: <unk>, including AB Inbev, Kraft Heinz Coca Cola, and Mercado Libre technology, and creativity have never been more closely linked than they are today, we always say that globally is where innovation design and engineering meet scale and we couldnt be more excited to bring the world's most creative global.

Martín Migoya: Additionally, companies will need to rely on zero and first-party data to maintain loyalty, as fan engagement this year will likely become cookie-less. Globant has proven expertise in both areas, as well as in creating comprehensive fan experiences, from working with FIFA on their FIFA Plus platform to helping top sports teams understand their fan behavior. We focused our expertise and growth in this space through our joint venture with La Liga last year, known as SporShip. By leveraging technology, data, experience design, and business strategy, we are able to create new experiences, emotionally connect with fans around the world, and create tangible value for fans, players, sponsors, and sports organizations in a sustainable way. We have recently established the Sportion Advisory Board, and the first members include Manu Janovili, the NBA All-Star, and George Gregan, Australian rugby captain and World Cup winner.

The global family, including got in the United States and interests in Brazil announced in late November got brings a fire of creativity to global they were recognized as the 2023 Cannes Lions Independent network of the year and add weeks breakthrough agency of the year. They work with over 60 clients Globe.

Martin: Work into the mix. We are also thrilled to support gods global expansion and to keep guts leadership team in place with a continued focus on building culture and driving growth. Both companies will now work together to identify valuable cross selling opportunities the acquisition of eateries in Brasilia.

<unk>, including a b Inbev Kraft Heinz Coca Cola, and Mercado Libre technology, and creativity have never been more closely linked than they are today, we always say that globally is where innovation design and engineering meet scale and we couldnt be more excited to bring the world's most creative global.

Martin: In business and technology consultancy specializing in digital transformation is a doubling down on our commitment to Latin America's largest economy. They have over 600 experts in industries, including payments and banking manufacturing communications education retail and health care, we keep expanding.

Work into the mix. We are also thrilled to support guts global expansion and to keep guts leadership team in place with a continued focus on building culture and driving growth. Both companies will now work together to identify valuable cross selling opportunities the acquisition of eateries Brasilia.

Our connections with our community as well with record attendance, we had our annual converge event, bringing together fascinating and influential thinkers who are on the cutting edge of technology I enjoyed my own conversations with Marc Benioff from Salesforce and David Willis from New Bank on the future of technology and what it means to transfer.

<unk> business and technology consultancy specializing in digital transformation is a doubling down on our commitment to Latin America's largest economy. They have over 600 experts in industries, including payments and banking manufacturing communications education retail and health care, we keep expanding.

Martin: Form industries, you can check them out as well as the multitude of content at converged Dot globe and Dot com.

Martin: On a personal note as I close out it was an emotional moment for us to commemorate our 20th anniversary at the New York Stock Exchange on December 4th seeing this company grow from my three co founders and I in a bar to a global team of more than 29000 creative minds has been fantastic. However, I'd.

Martín Migoya: We look forward to working with them to make our mark together in this fascinating and rapidly growing industry. In addition to our organic growth, Q4 saw the incorporation of exciting new members to the Globant family, including Gut in the United States and Iteris in Brazil. Announced in late November, Gut brings a fire of creativity to Globant. They were recognized as the 2023 Cannes Lions Independent Network of the Year and Adweek's Breakthrough Agency of the Year.

Martin: Genuinely believe that we are just scratching the surface of what we can do companywide entrepreneurship creativity and resilience will push us forward over the next 20 years with that I will hand, it over to Diego data our CTO. Thank you very much.

Industries, you can check them out as well as the multitude of content at converged Dot globe and Dot com.

On a personal note as I close out it was an emotional moment for us to commemorate our 20th anniversary at the New York Stock Exchange on December 4th.

Diego: Thanks, Martin and Hello, everyone.

Diego: I'd like to begin with two major technology trends that present interesting growth opportunities for global first there is a growing synergy between the digital and physical worlds through AI powered wearables products from companies like Rabbit Humane Ray ban meta and Apple enhanced decision, making for users and <unk>.

Martín Migoya: They work with over 60 clients globally, including AB InBev, Kraft Heinz, Coca-Cola, and Mercado Libre. Technology and creativity have never been more closely linked than they are today. We always say that Globant is where innovation, design, and engineering meet scale, and we couldn't be more excited to bring the world's most creative global network into the mix. We are also thrilled to support GUT's global expansion and to keep GUT's leadership team in place with a continued focus on building culture and driving growth. Both companies will now work together to identify valuable cross-selling opportunities. The acquisition of ITERIS, a Brazilian business and technology consultancy specializing in digital transformation, is a doubling down on our commitment to Latin America's largest economy. They have over 600 experts in industries including payments and banking, manufacturing, communications, education, retail, and healthcare.

In this company grow from my three co founders and I in a bar to a global team of more than 29000 creative minds has been fantastic. However, I genuinely believe that we are just scratching the surface of what we can do companywide entrepreneurship creativity and resilience will push us forward over the next 20 years.

Diego: Foster a more human centric experience.

Any of these products such as the ml, two or one or the vision pro may revolutionize, how we interact with technology and an intuitive way.

With that I will hand, it over to Diego <unk>, our CTO. Thank you very much.

Thanks, Martin and Hello, everyone.

The integration of virtual and augmented reality into the digital experience. We see this trend gaining momentum through innovations like Disney's hollow tile floor. This technology enhances collective digital interaction for a more immersive experience applicable to the meta versus live action shows in many other instances.

I'd like to begin with two major technology trends that present interesting growth opportunities for global first there is a growing synergy between the digital and physical worlds through AI powered wearables products from companies like Rabbit Humane Ray ban meta and Apple enhanced decision, making for users and.

Diego: <unk> that want to leverage the best of both trends will rely heavily on AI and machine learning. This is where our global expertise comes into play to actively collaborate we see a shift from isolated proofs of concept to full integration with experiences and processes.

Foster a more human centric experience.

Many of these products such as the ml, two or one or the vision pro may revolutionize, how we interact with technology and an intuitive way.

Diego: We have shared our vision of the AI market in our recently published Tech trends report, which also expands on our perspectives on other disruptive trends, including quantum computing robotics, blockchain and immersive experiences I encourage you to check it out at reports Dot global Dot com.

<unk> that want to leverage the best of both trends will rely heavily on AI and machine learning. This is where our global expertise comes into play to actively collaborate we see a shift from isolated proofs of concept to full integration with experiences and processes. We have shared our vision of the AI market in.

Martín Migoya: We keep expanding our connections with our community as well. With record attendance, we had our annual CONVERGE event, bringing together fascinating and influential thinkers who are on the cutting edge of technology. I enjoyed my own conversations with Mark Benioff from Salesforce and David Velez from NewBank on the future of technology and what it means to transform industries. You can check them out, as well as the multitude of content, at converge.globant.com.

Diego: We continue to position our studio networks to expand and diversify our value offering the incorporation of got into the global family means a major growth step in our create studio network as Martin mentioned, our ability to offer our current and future clients new ways of engaging and surprising users will be.

Our recently published Tech trends report.

Which also expands on our perspectives on other disruptive trends, including quantum computing robotics, blockchain and immersive experiences I encourage you to check it out at reports start global Dot com.

Diego: And Big time also within this network, we have created a new studio to focus on customer loyalty. According to Forrester over 50% of leading companies plan to increase their current investments and customer loyalty programs in the next two years globally, new loyalty studio brings together our related experience in aviation.

We continue to position our studio networks to expand and diversify our value offering the incorporation of got into the global family means a major growth step in our create studio network as Martin mentioned, our ability to offer current and future clients new ways of engaging and surprising users will be.

Martín Migoya: On a personal note, as I close out, it was an emotional moment for us to commemorate our 20th anniversary at the New York Stock Exchange on December 4th. Seeing this company grow from my three co-founders and I in a bar to a global team of more than 29,000 creative minds has been fantastic. However, I genuinely believe that we are just scratching the surface of what we can do. Company-wide entrepreneurship, creativity, and resilience will push us forward over the next 20 years. With that, I will hand it over to Diego Tartara, our CTO. Thank you very much.

Diego: Retail and sports among other sectors as well as strong expertise across payment systems digital wallets digital currencies blockchain AI and more.

Diego: Our recent Prime example of our expertise has been our work with the La Clippers. This program represents a non traditional initiative designed to incentivize specific fan behaviors, both at home and in the venue. Its goal is to consistently enhanced motivation energy and engagement through a reward system the loyalty engine <unk>.

And Big time also within this network, we have created a new studio to focus on customer loyalty. According to Forrester over 50% of leading companies plan to increase their current investments and customer loyalty programs in the next two years.

<unk>, new loyalty studio brings together our related experience in aviation retail and sports among other sectors as well as strong expertise across payment systems digital wallets digital currencies blockchain AI and more.

Diego Tartara: Thanks, Martn, and hello everyone. I'd like to begin with two major technology trends that present interesting growth opportunities for Globant. First, there's a growing synergy between the digital and physical worlds through AI-powered wearables. Products from companies like Rabbit, Humane, Ray-Ban, Meta, and Apple enhance decision-making for users and foster a more human-centric experience. Many of these products, such as the ML2, R1, or the Vision Pro, may revolutionize how we interact with technology in an intuitive way.

Diego: I'm Leslie connects with the fan identity multiple Iot devices to measure fan activity and ticketing systems among others. Our team Collaborates on shaping the program strategy integrating the loyalty engine into the platform and developing the user interfaces for fans and staff along with multiple use cases.

Our recent Prime example of our expertise has been our work with the La Clippers. This program represents a non traditional initiative designed to incentivize specific fan behaviors, both at home and in the venue. Its goal is to consistently enhance motivation energy and engagement through a reward system the loyalty engine <unk>.

Diego: Our reinvention studio network focused on transforming not only clients businesses, but also the industries themselves has consolidated the new connected experiences studio with todays multiple touch points for interactions between organizations and their customers companies need to craft unique and meaningful experiences to boost.

I'm Leslie connects with the fan identity multiple Iot devices to measure fan activity and ticketing systems among others. Our team Collaborates on shaping the program strategy integrating the loyalty engine into the platform and developing the user interfaces for fans and staff along with multiple use cases.

Diego Tartara: Second, the integration of virtual and augmented reality into the digital experience. We see this trend gaining momentum through innovations like Disney's Holotile Floor. This technology enhances collective digital interaction for a more immersive experience, applicable to the metaverse, live action shows, and many other institutions.

Diego: <unk>.

Diego: According to Forrester solid investments in customer experience can yield a 700% return over 12 years with this new studio global brings to the table its expertise from initiatives such as the technology integrated experience at the Intuit dome the customer journey, we designed for Royal Caribbean and.

Our reinvention studio network focused on transforming not only clients businesses, but also the industries themselves has consolidated the new connected experiences studio with todays multiple touch points for interactions between organizations and their customers companies need to craft unique and meaningful experiences to boost.

Diego: The digital pre buying experience, we developed for Nissan as an end to end partner globally can make a profound difference in how brands engage with their customers throughout their entire journey also within the reinvention studio network. We have made exciting new strides in the health and life Sciences sector globally is finalizing.

Diego Tartara: Organizations that want to leverage the best of both trends will rely heavily on AI and machine learning. This is where Globant's expertise comes into play to actively collaborate. We see a shift from isolated proofs of concept to full integration with experiences and processes. We have shared our vision of the AI market in our recently published Tech Trends Report, which also expands on our perspectives on other disruptive trends, including quantum computing, robotics, blockchain, and immersive experiences. I encourage you to check it out at reports.globant.com.

<unk>.

According to Forrester solid investments in customer experience can yield a 700% return over 12 years with this new studio global brings to the table its expertise from initiatives such as the technology integrated experience at the Intuit dome the customer journey, we designed for Royal Caribbean and.

Diego: <unk> with three major pharmaceutical companies as their strategic partner in contract marketing and medical organization. The final product means combining the strengths of multiple digital studios globally ex platforms and enterprise tools from sales force. The end to end solution includes three main steps digital insights.

The digital pre buying experience, we developed for Nissan as an end to end partner globally can make a profound difference in how brands engage with their customers throughout their entire journey also within the reinvention studio network. We have made exciting new strides in the health and life Sciences sector globally is finalizing.

Diego: Customized an omnichannel strategy development, and finally, a dedicated team improving brand awareness and patient outcomes through effective communication and services. All projects are long term five years or more positioning globally as an industry leader in this competitive space. We are also working with one of the largest U S health.

Diego Tartara: We continue to position our studio networks to expand and diversify our value offering. The incorporation of GUT into the Globant family means a major growth step for our Create Studio network. As Martn mentioned, our ability to offer current and future clients new ways of engaging and surprising users will be impacted big time. Also, within this network, we have created a new studio to focus on customer loyalty. According to Forrester, over 50% of leading companies plan to increase their current investments in customer loyalty programs in the next two years. Globant's new Loyalty Studio brings together our related experience in aviation, retail, and sports, among other sectors, as well as strong expertise across payment systems, digital wallets, digital currencies, blockchain, AI, and more. A recent example of our expertise has been our work with the L.A. Clippers. This program represents a nontraditional initiative designed to incentivize specific fan behaviors, both at home and in the venue.

<unk> with three major pharmaceutical companies as their strategic partner in contract marketing and medical organization. The final product means combining the strengths of multiple digital studios globally ex platforms and enterprise tools from sales force. The end to end solution includes three main steps digital insights.

Diego: Care companies they came to us because they were looking for a solution to detect events from camera images inside their hospitals, so that they could make decisions more quickly and efficiently globally is applying AI to process images captured from cameras in real time, we generated synthetic data to train and test the detection.

Customized and Omnichannel strategy development, and finally, a dedicated team improving brand awareness and patient outcomes through effective communication and services. All projects are long term five years or more positioning globally as an industry leader in this competitive space. We are also working with one of the largest U S. <unk>.

Diego: And classification models before this project. This was carried out through the use of real data, which is a longer and more costly process. The project is being executed by combining the knowledge and efforts of our gaming data in health care and life Sciences Studios, and our delivery networks in India and the U S.

<unk> care companies they came to us because they were looking for a solution to detect events from camera images inside their hospitals, so that they could make decisions more quickly and efficiently globally is applying AI to process images captured from cameras in real time, we generated synthetic data to train and test the detection.

Diego: Global Enterprise studio network continues to expand our unique position to address this market stems from years of developing our own capabilities acquiring companies with enterprise application skills and building strong alliances with global leaders, such as Salesforce Oracle and service now.

And classification models before this project. This was carried out through the use of real data, which is a longer and more costly process. The project is being executed by combining the knowledge and efforts of our gaming data in health care and life Sciences Studios, and our delivery networks in India and the U S.

Diego: Globally has remained cloud agnostic and not industry siloed, making our solutions fully customizable and adaptable to every client as an example, we are leveraging our sales force multi cloud capabilities in our work with the Intercontinental hotels group together, we created a streamlined action plan with field and operation support users.

Global Enterprise studio network continues to expand our unique position to address this market stems from years of developing our own capabilities acquiring companies with enterprise application skills and building strong alliances with global leaders, such as Salesforce Oracle and service now.

Diego Tartara: Its goal is to consistently enhance motivation, energy, and engagement through a reward. The Loyalty Engine seamlessly connects with the fan identity, multiple IoT devices to measure fan activity, and ticketing systems, among others. Our team collaborates on shaping the program strategy, integrating the Loyalty Engine into the platform, and developing the user interfaces for fans and staff, along with multiple use cases. Our re-invention studio network, focused on transforming not only clients' businesses but also the industries themselves, has consolidated the new Connected Experiences Studio. With today's multiple touchpoints for interactions between organizations and their customers, companies need to craft unique and meaningful experiences to boost revenue. According to Forrester, solid investments in customer experience can yield a 700% return over 12 years.

Diego: The objective is to improved hotel performance through better tracking of engagements and actions through the work, we're delivering actionable insight to the IHG teams from over 10000 data points in our Oracle studio specifically, we were called upon by Oracle to establish a joint program to help their clients design an X.

<unk> has remained cloud agnostic and not industry siloed, making our solutions fully customizable and adaptable to every client as an example, we are leveraging our sales force multi cloud capabilities in our work with the Intercontinental hotels group together, we created a streamlined action plan with field and operation support users the.

Diego: Acute and AI enterprise innovation roadmap the project catered to each client's business goals and even opened the possibility to work with the clients to rethink their businesses, considering new AI paradigms to execute we combined Oracle AI platforms, including generative AI services machine.

Objective is to improved hotel performance through better tracking of engagements and actions through the work, we're delivering actionable insight to the IHG teams from over 10000 data points in our Oracle studio specifically, we were called upon by Oracle to establish a joint program to help their clients design and.

Diego: Learning in Oracle cloud infrastructure for AI workloads with our global X AI platforms. Oracle clients also can now use selected globally X solutions to empower their enterprise applications. As we are currently publishing them in the Oracle marketplace, our unique digital studio network, which harnesses disruptive.

<unk> and AI Enterprise Innovation Road map the project catered to each client's business goals and even opened the possibility to work with the clients to rethink their businesses, considering new AI paradigms to execute we combined Oracle AI platforms, including generative AI services machine learning.

Diego: Technologies, including data and AI blockchain Internet of things quality engineering and much more has been named a leader by IDC market scape in their worldwide software Engineering services 2023 vendor assessment. This acknowledgment as a nod to Globus engineering talent and its ability to drive.

Diego Tartara: With this new studio, Globant brings to the table its expertise from initiatives such as the technology-integrated experience at the Intuit Dome, the customer journey we designed for Royal Caribbean, and the digital pre-buying experience we developed for Nissan. As an end-to-end partner, Globant can make a profound difference in how brands engage with their customers throughout their entire journey. Also, within the Reinvention Studio network, we have made exciting new strides in the health and life sciences sector. Globant is finalizing agreements with three major pharmaceutical companies as their strategic partner in contract marketing and medical organization.

<unk> and Oracle cloud infrastructure for AI workloads with our global X AI platforms. Oracle clients also can now use selected global X solutions to empower their enterprise applications. As we are currently publishing them in the Oracle marketplace, our unique digital studio network, which harnesses disruptive.

High ROI for our clients and clear roadmaps to reduce business and technology costs now, let me share some updates on <unk> enterprise AI platform that is revolutionizing, how we and our clients approach corporate challenges with this technology, we are developing a groundbreaking AI based drilling assistant for <unk>.

Allergies, including data and AI blockchain Internet of things quality engineering and much more has been named a leader by IDC market scape in their worldwide software Engineering services 2023 vendor assessment. This acknowledgment as a nod to globex engineering talent and its ability to drive <unk>.

Diego: Petrol in the Latin American energy sector. This solution provides real time data analysis, transforming drilling operations management, enhancing efficiency and enabling precise real time decision, making.

Diego Tartara: The final product means combining the strengths of multiple digital studios, Globant X platforms, and enterprise tools from Salesforce. The end-to-end solution includes three main steps: digital insights, customized and omni-channel strategy development, and finally, a dedicated team improving brand awareness and patient outcomes through effective communication and services. All projects are long-term, five years or more, positioning Globant as an industry leader in this competitive space. We are also working with one of the largest U.S. health care companies. They came to us because they were looking for a solution to detect events from camera images inside their hospitals so that they could make decisions more quickly and efficiently. Globant is applying AI to process images captured from cameras in real time. We generated synthetic data to train and test the detection and classification model.

ROI for our clients and clear roadmaps to reduce business and technology costs now, let me share some updates on <unk> enterprise AI platform that is revolutionizing, how we and our clients approach corporate challenges with this technology, we are developing a groundbreaking AI based drilling assistant for Teck.

Diego: At our Gx 30 event last quarter, we emphasize the incredible possibilities of generative AI to our global community.

Diego: The entire Genex's partner and development ecosystem is now fully aware of <unk> enterprise AI and this is broadening our channel of sales as more organizations are directly exposed to the product.

In the Latin American energy sector. This solution provides real time data analysis, transforming drilling operations management, enhancing efficiency and enabling precise real time decision, making.

Diego: Thank you for your attention I'll now pass it over to Patricia Pommies, our Chief operating officer.

Thanks, Diego and Hello, everyone since our inception global operational fundamentals anchored in a strong culture engaged team and a unique delivery model has been pivotal in enabling growth driving innovation and delivering disruptive solutions to our clients now these pillars.

At our Gx 30 event last quarter, we emphasized the incredible possibilities of generative AI to our global community.

The entire Genex's partner and development ecosystem is now fully aware of Genex's enterprise AI and this is broadening our channel of sales as more organizations are directly exposed to the product.

Patricia Pommies: Stan reinforced ready to catalyze further expansion and boost our business moving forward.

Diego Tartara: Before this project, this was carried out through the use of real data, which is a longer and more costly process. The project is being executed by combining the knowledge and efforts of our gaming, data, and healthcare and life sciences studios and our delivery networks in India and the U.S. Globant's enterprise studio network continues to expand. Our unique position to address this market stems from years of developing our own capability, acquiring companies with enterprise application skills, and building strong alliances with global leaders such as Salesforce, SAP, Oracle, and ServiceNow. Globant has remained cloud agnostic and not industry-siloed, making our solutions fully customizable and adaptable to every client.

Patricia Pommies: Our current global footprint is diverse and well balanced across key dimensions with our presence in 33 countries and several industry revenue streams, we are strategically positioned to capitalize on opportunities and navigate market fluctuations with resilience.

Thank you for your attention I'll now pass it over to Patricia Pommies, our Chief operating officer.

Thanks, Diego and Hello, everyone since our inception global operational fundamentals anchored in our strong culture engaged team and a unique delivery model has been pivotal in enabling growth driving innovation and delivering disruptive solutions to our clients now these pillars stand.

Patricia Pommies: Furthermore, we have recently enhanced our agile pod methodology, achieving a significant milestone by certifying almost 100% of our pods in AI by.

Reinforced ready to catalyze further expansion and boost our business moving forward.

Patricia Pommies: By leveraging AI to our specialized suite of products, we have augmented our analytical prowess and accelerated decision, making granting us a clear competitive advantage.

Our current global footprint is diverse and well balanced across key dimensions with our presence in 33 countries and several industry revenue streams, we are strategically positioned to capitalize on opportunities and navigate market fluctuations with resilience.

Patricia Pommies: In conjunction we have redesigned our people and staff areas to better support our pods enhancing our agility and enriching the quality and creativity of our solutions to increase responsiveness to client needs.

More we have recently enhanced our agile pod methodology, achieving a significant milestone by certifying almost 100% of our pods in AI.

Patricia Pommies: Let me share some key figures regarding our clients are 100 squared remains the campus for strengthening the relationships with our clients and offering more services as we grow our collaboration overtime to complement it we have recently revamped our global account model. So that we can scale up our partnerships with organization.

Diego Tartara: As an example, we are leveraging our Salesforce multi-cloud capabilities in our work with Intercontinental Hotels. Together, we created a streamlined action plan with field and operation support users. The objective is to improve hotel performance through better tracking of engagements and actions. Through the work, we're delivering actionable insight to the IHG teams from over 10,000 data points. In our Oracle studio specifically, we were called upon by Oracle to establish a joint program to help their clients design and execute an AI enterprise innovation roadmap. The project catered to each client's business goals and even opened the possibility to work with the clients to rethink their businesses considering new AI paradigms. To execute, we combined the Oracle AI platform, including generative AI services, machine learning, and Oracle Cloud Infrastructure for AI workloads with our Globant xAI platform. Oracle clients can also now use selected GlobantX solutions to empower their enterprise applications, as we are currently publishing them in the Oracle Marketplace.

By leveraging AI to our specialized suite of products, we have augmented our analytical prowess and accelerated decision, making granting us a clear competitive advantage in.

In conjunction we have redesigned our people and staff areas to better support our pods enhancing our agility and enriching the quality and creativity of our solutions to increase responsiveness to client needs.

Patricia Pommies: That span multiple geographies, all while harnessing the talents of multiple studio networks.

Patricia Pommies: We currently have 16 clients, bringing in more than $20 million in annual revenue and we now have 311 clients that provide more than $1 million of annual revenue, 21% more than one year ago.

Let me share some key figures regarding our clients are 100 squared remains the campus for strengthening the relationships with our clients and offering more services as we grow our collaboration overtime to complement it we have recently revamped our global account model. So that we can scale up our partnerships with organizations.

Patricia Pommies: Revenue from our largest client the Walt Disney Company remained the same quarter over quarter. The rest of our accounts collectively grew quarter over quarter by seven 1% and 21, 9% year over year, reflecting the increasing diversity of our prime revenue sources.

That span multiple geographies, all while harnessing the talents of multiple studio networks.

We currently have 16 clients, bringing in more than $20 million in annual revenue and we now have 311 clients that provide more than $1 million of annual revenue, 21% more than one year ago.

In Q4 57, 4% of our revenue came from North America 22, 9% came from Latin America 17, 2% from EMEA and two 5% from APAC when assessing business verticals no vertical accounts for more than 22% of total revenue we proudly work.

Revenue from our largest client the Walt Disney Company remained the same quarter over quarter. The rest of our accounts collectively grew quarter over quarter by seven 1% and 21, 9% year over year, reflecting the increasing diversity of our prime revenue sources.

Patricia Pommies: Across multiple sectors, ensuring a robust and balanced business model.

Patricia Pommies: Now to our head count as of December 31, we were 29150 Globus of which 93% are it professionals, representing an addition of 1541 it professionals on a sequential basis.

Diego Tartara: Our unique digital studio network, which harnesses disruptive technologies including data and AI, blockchain, the Internet of Things, quality engineering, and much more, has been named a leader by IDC Marketscape in their Worldwide Software Engineering Services 2023 Vendor Assessment. This acknowledgment is a nod to Globant's engineering talent and its ability to drive high ROI for our clients and clear roadmaps to reduce business and technology costs. Now, let me share some updates on GeneXus Enterprise AI, the platform that is revolutionizing how we and our clients approach corporate challenges. With this technology, we are developing a groundbreaking AI-based drilling assistant for tech petrol in the Latin American energy sector.

Patricia Pommies: Today, Colombia, our largest delivery hub represents 20% of our global workforce, while the broader Latam region accounts for 70% of global in India, 15%. We are excited to welcome new Globals from Netherlands. After the acquisition of got also to amplify our position in Europe.

We proudly work across multiple sectors, ensuring a robust and balanced business model.

Now to our head count as of December 31, we were 29150 Globus of which 93% are it professionals, representing an addition of 1541 it professionals on a sequential basis.

Patricia Pommies: We opened our first innovation hub in Berlin, our attrition rate over the past 12 months is eight 1% a record low one four percentage points lower quarter over quarter, and eight six percentage points lower year over year.

Today, Colombia, our largest delivery hub represents 20% of our global workforce, while the broader Latam region accounts for 70% of Globus in India, 15%. We are excited to welcome new globally from Netherlands. After the acquisition of got also to amplify our position in Europe.

As of Q4, our utilization rates stood at 82% and as previously conveyed to the market. We continue to have positive net additions on an organic basis, which is a reflection of the demand we see.

Patricia Pomies: This solution provides real-time data analysis, transforming drilling operations management, enhancing efficiency, and enabling precise real-time decision-making. At our GX30 event last quarter, we emphasized the incredible possibilities of generative AI to our global community. The entire GeneXus partner and development ecosystem is now fully aware of GeneXus Enterprise AI, and this is broadening our channel of sales as more organizations are directly exposed to the product. Thank you for your attention; I'll now pass it over to Patricia Palmes, our Chief Operating Officer. Thanks, Diego, and hello, everyone.

Patricia Pommies: To foster a thriving culture that cultivate talent and consistently provide the best experience for our teams active listening is essential we are happy to share that we concluded Q4 with a solid uptick in the engagement index tracking pride sense of belonging likelihood to recommend and desire to remain at globe and.

We opened our first innovation hub in Berlin, our attrition rate over the past 12 months is eight 1% a record low one four percentage points lower quarter over quarter, and eight six percentage points lower year over year.

As of Q4, our utilization rates stood at 82% and as previously conveyed to the market. We continue to have positive net additions on an organic basis, which is a reflection of the demand we see.

Patricia Pommies: Of two percentage points from our previous pulse check, reaching a truly positive overall score of 84% as global continues to become a more global and diverse company, our culture must evolve as well recognizing the need for entrepreneurship relationship building throughout our organization, we decided to.

To foster a thriving culture that cultivate talent and consistently provide the best experience for our teens active listening is essential we are happy to share that we concluded Q4 with a solid uptick in the engagement index tracking pride sense of belonging likelihood to recommend and desire to remain at globe bent.

Patricia Pommies: Add three new values to our corporate culture.

Patricia Pommies: One the place inspires the entrepreneurial spirit and trust powered by autonomy, while encouraging every global to be proactive passionate and committed to growing the company.

Patricia Pomies: Since our inception, Globant's operational fundamentals, anchored in a strong culture, engaged teams, and a unique delivery model, have been pivotal in enabling growth, driving innovation, and delivering disruptive solutions to our clients. Now these pillars stand reinforced, ready to catalyze further expansion and boost our business moving forward. Our current global footprint is diverse and well-balanced across key dimensions.

Of two percentage points from our previous pulse check, reaching a truly positive overall score of 84% as global continues to become a more global and diverse company, our culture must evolve as well recognizing the need for entrepreneurship relationship building throughout our organization, we decided to add.

Patricia Pommies: Ross selling hero aimed to foster synergy it encourages different teams to collaborate across our services platforms and studio networks with this cross selling mindset, we build bridges and amplify the impact of our solutions.

Patricia Pommies: Finally, AI hero reflects the importance of AI at our company to everything we do and celebrate those that excel at applying and improving our AI capabilities, both in house and for our clients.

Patricia Pomies: With our presence in 33 countries and several industry revenue streams, we are strategically positioned to capitalize on opportunities and navigate market fluctuations with resilience. Furthermore, we have recently enhanced our Agile Pod methodology, achieving a significant milestone by certifying almost 100% of our pods in AI. By leveraging AI through our specialized suite of products, we have augmented our analytical prowess and accelerated decision-making, granting us a clear competitive advantage. In conjunction, we have redesigned our people and staff areas to better support our pods, enhancing our agility, and enriching the quality and creativity of our solutions to increase responsiveness to client needs. Let me share some key figures regarding our clients. Our 100 squared remains the compass for strengthening relationships with our clients and offering more services as we grow our collaboration over time.

Add three new values to our corporate culture.

One the place inspires the entrepreneurial spirit and trust powered by autonomy, while encouraging every global to be proactive passionate and committed to growing the company.

Patricia Pommies: I'd like to share a quick update on how we are leveraging AI internally the platforms of Gino in sensei presented to you on last quarter's earnings call has demonstrated substantial growth.

Ross selling hero aimed to foster synergy it encourages different teams to collaborate across our services platforms and studio networks with this cross selling mindset, we build bridges and amplify the impact of our solutions.

Patricia Pommies: Gino our AI human capital partner, which helps managers build teams in a conversational way has already supported 16000 initiatives, 91% of which resulted successful sensei, our AI assistant per tailored professional skill development completed more than 2300 assessments.

Finally, AI hero reflects the importance of AI at our company to everything we do and celebrate those that excel at applying and improving our AI capabilities, both in house and for our clients I'd like to share a quick update on how we are leveraging AI internally the platforms of Gino and.

Patricia Pommies: In Q4 alone.

Patricia Pommies: Since he has had a profound effect on how we scale up at globe and with the average learning hours, having increased by 40% year over year.

<unk> presented to you on last quarter's earnings call have demonstrated substantial growth.

Patricia Pommies: And finally, some updates on our be kind initiative, our be kind to yourself holistic strategy showed great results over 79% of globe has expressed that they feel well physically mentally and spiritually when working showing an increase of three percentage points compared to our last pulse.

Gino our AI human capital partner, which helps managers build teams in a conversational way has already supported 16000 initiatives, 91% of which resulted successful.

Patricia Pomies: To complement it, we have recently revamped our global account model so that we can scale up our partnerships with organizations that span multiple geographies all while harnessing the talents of multiple studio networks. We currently have 16 clients bringing in more than $20 million in annual revenue, and we now have 311 clients that provide more than $1 million in annual revenue, 20.1% more than one year ago. Revenue from our largest client, the Walt Disney Company, remained the same quarter over quarter.

Our AI assistant per tailored professional skill development completed more than 2300 assessments in Q4 alone.

Patricia Pommies: This quarter, we were recognized on the financial times statistic diversity leaders ranking as one of the most diverse organizations across all industries and sectors. We continue to share our be kind to the planet voice and sustainability best practices on the global stage, we participated at Cop 28, taking.

<unk> has had a profound effect on how we scale up at globe and with the average learning hours, having increased by 40% year over year.

And finally, some updates on our <unk> initiative, our be kind to yourself holistic strategy showed great results over 79% of globe has expressed that they feel well physically mentally and spiritually when working showing an increase of three percentage points compared to our last pulse.

Part in multiple discussions on innovation around carbon and biodiversity credits energy transitions water management and climate in all of these critical areas Global has a technology offering and a chartered way for business to be both successful and beneficial to our planet.

This quarter, we were recognized on the financial times statistic diversity leaders ranking as one of the most diverse organizations across all industries and sectors. We continue to share our be kind to the planet voice and sustainability best practices on the global stage, we participated at Cop 28, taking.

Patricia Pommies: We're also proud to be working with the U S. Green building Council best known for their lead certification product through our strategic multi program partnership we are developing a new platform for the U S. G. B C that will simplify the green building certification process for large construction projects.

Patricia Pomies: The rest of our accounts collectively grew quarter over quarter by 7.1% and 21.9% year over year, reflecting the increasing diversity of our prime revenue sources. In Q4, 57.4% of our revenue came from North America, 22.9% came from Latin America, 17.2% from EMEA, and 2.5% from APAC. When assessing business verticals, no vertical accounts for more than 22% of total revenue.

Patricia Pommies: Through this new interactive platform property managers and owners will be able to seamlessly and interactively assess and manage sustainability criteria regarding energy water air quality and waste among other factors.

We're also proud to be working with the U S. Green building Council best known for their lead certification product through our strategic multi program partnership we are developing a new platform for the U S. G. B C that will simplify the green building certification process for large construction projects.

Patricia Pommies: We are optimistic about the impact of our work led by our sustainable business studio as buildings are responsible for 30% to 40% of the global carbon footprint.

Patricia Pommies: Finally, we keep working to get more people involved with the tech industry in line with our commitment to provide coding scholarships to 15000 individuals worldwide by 2025, we have already awarded a total of 11500 scholarships over 4000 during 2023 alone.

Patricia Pomies: We proudly work across multiple sectors, ensuring a robust and balanced business model. Now to our headcount. As of December 31st, we had 29,150 Globers, of which 93% are IT professionals, representing an addition of 1,541 IT professionals on a sequential basis.

Through this new interactive platform property managers and owners will be able to seamlessly and interactively assess and manage sustainability criteria regarding energy water air quality and waste among other factors.

Patricia Pommies: Now, let me introduce Huang our CFO see you all in some minutes for the live Q&A. Thank you.

We are optimistic about the impact of our work led by our sustainable business studio as buildings are responsible for 30% to 40% of the global carbon footprint.

Huang: And good afternoon, everyone. It's always a pleasure to reconnect and reflect on last year's performance.

Patricia Pomies: Today, Colombia, our largest delivery hub, represents 20% of our global workforce, while the broader LATAM region accounts for 70% of Globers, and India 15%. We are excited to welcome new Globers from the Netherlands after the acquisition of GUT. Also, to amplify our position in Europe, we opened our first innovation hub in Berlin. Our attrition rate over the past 12 months is 8.1%, a record low, 1.4 percentage points lower quarter over quarter, and 8.6 percentage points lower year over year. As of Q4, our utilization rate stood at 80.2%.

Finally, we keep working to get more people involved with the tech industry in line with our commitment to provide coding scholarships to 15000 individuals worldwide by 2025, we have already awarded a total of 11500 scholarships over 4000 during 2023 alone.

Huang: In 2023, we've achieved results that stand as evidence of our resilience innovation the dedication of all our Globus and trust of our clients.

Huang: 2023 has been a year of dynamic growth and strategic execution.

Huang: Our full year revenues reached a milestone of $2.096 billion, a remarkable 17, 7% year over year growth in a challenging year. We went on the offensive and our bets paid off reflecting our company's hunger for more our focus on execution and our commitment and passion for.

Now, let me introduce Juan our CFO see you all in some minutes for the live Q&A. Thank you.

And good afternoon, everyone. It's always a pleasure to reconnect and reflect on last year's performance.

In 2023, we've achieved results that stand as evidence of our resilience innovation the dedication of all our Globus and trust of our clients.

Huang: What we do in 2023, we have not only grown our top line, but also captured significant market share, which stands as a clear endorsement of our value proposition. We are optimistic about the future of the company. Our pipeline is strong and we see a positive change of tone regarding discussions of our clients' long term.

2023 has been a year of dynamic growth and strategic execution.

Our full year revenues reached a milestone of $2 billion and $96 million, a remarkable 17, 7% year over year growth in a challenging year. We went on the offensive and our bets paid off reflecting our company's hunger for more our focus on execution and our commitment and passion for.

Huang: Strategies relative to the start of last year.

Patricia Pomies: And, as previously conveyed to the market, we continue to have positive net additions on an organic basis, which is a reflection of the demand we see. To foster a thriving culture that cultivates talent and consistently provides the best experience for our teams, active listening is essential. We are happy to share that we concluded Q4 with a solid uptick in the engagement index, tracking pride, sense of belonging, likelihood to recommend, and desire to remain at Globant by two percentage points from our previous pulse check, reaching a truly positive overall score of 84%. As Globant continues to become a more global and diverse company, our culture must evolve as well. Recognizing the need for entrepreneurial relationship building throughout our organization, we decided to add three new values to our corporate culture. Own the Place inspires the entrepreneurial spirit and trust powered by autonomy, while encouraging every Glober to be proactive, passionate, and committed to growing the company.

Huang: We still have plenty of room to grow with many of our clients and as we scale, we seek to add more and more companies who wish to have the global experience.

What we do in 2023, we have not only grown our top line, but also captured significant market share, which stands as a clear endorsement of our value proposition. We are optimistic about the future of the company. Our pipeline is strong and we see a positive change of tone regarding discussions of our clients' long term.

Huang: Let's now review our solid Q4, and 2023 results. We are very proud of the positive topline growth. We were able to deliver 2023 revenues were up 17, 7% year over year. This strong growth was mainly driven by an industry, leading 11% organic growth for the year also.

Strategies relative to the start of last year.

Huang: We delivered another strong quarter of profitability solid cash generation and a strong balance sheet position. These results were driven by our strong execution across all of our growth pillars in the fourth quarter. We've seen our revenues reached $587 million a remarkable 18, 3% year.

We still have plenty of room to grow with many of our clients and as we scale, we seek to add more and more companies who wish to have the global experience.

Let's now review our solid Q4, and 2023 results. We are very proud of the positive topline growth. We were able to deliver 2023 revenues were up 17, 7% year over year. This strong growth was mainly driven by an industry, leading 11% organic growth for the year.

Huang: Over year growth, which markedly outstrips industry averages and speaks to our strategic initiatives paying dividends. These results demonstrate our ability to navigate through headwinds with agility and capitalize on our diversified offerings and global reach our organic growth remains a core strength contributing 11 points to our over.

So we delivered another strong quarter of profitability solid cash generation and a strong balance sheet position. These results were driven by our strong execution across all of our growth pillars in the fourth quarter. We've seen our revenues reached $587 million a remarkable 18, 3%.

Huang: Raul expansion for the quarter signaling the effectiveness of our 100 squared strategy and our commitment to deepening relationships with existing clients, while forging new ones. The performance across our verticals reflects our solid execution, we saw year on year and quarter over quarter growth across virtually all of our <unk>.

Patricia Pomies: The Cross-Selling Hero aims to foster synergy. It encourages different teams to collaborate across our services, platforms, and studio networks. With this cross-selling mindset, we build bridges and amplify the impact of our solutions. Finally, the AI Hero reflects the importance of AI at our company to everything we do and celebrates those that excel at applying and improving our AI capabilities, both in-house and for our clients.

<unk> year over year growth, which markedly outstrips industry averages and speaks to our strategic initiatives paying dividends. These results demonstrate our ability to navigate through headwinds with agility and capitalize on our diversified offerings and global reach our organic growth remains a core strength contributing 11 points.

As this segment in 2023 and in Q4, respectively. In a similar fashion all of our key geographies performed strongly in Q4 witnessing a strong recovery when compared to the first half of 2023 media and entertainment energized by digital consumption trends at our biggest client and our.

To our overall expansion for the quarter signaling the effectiveness of our 100 squared strategy and our commitment to deepening relationships with existing clients, while forging new ones. The performance across our verticals reflects our solid execution, we saw year on year and quarter over quarter growth across virtually.

Huang: Efforts in the sports and Entertainment segment saw a positive quarterly revenue expansion travel and hospitality grew strongly relative to Q3 supported by innovative partnerships and a resurgence in global mobility consumer retail and manufacturing also showed strong sequential growth as companies continue to inch.

Patricia Pomies: I'd like to share a quick update on how we are leveraging AI internally. The platforms of Gino and Sensei presented to you on last quarter's earnings call have demonstrated substantial growth. Gino, our AI human capital partner, which helps managers build teams in a conversational way, has already supported 16,000 initiatives, 91% of which were successful. Sensei, our AI assistant for tailored professional skill development, completed more than 2,300 assessments in Q4

All of our business segments in 2023 and in Q4, respectively. In a similar fashion all of our key geographies performed strongly in Q4 witnessing a strong recovery when compared to the first half of 2023 media and entertainment energized by digital consumption trends at our biggest client.

Huang: West in their digital transformation efforts in this space technology. After a period of moderation has stabilized reflecting the essential nature of our services in an increasingly digital world. We continue to be laser focused on profitability. We close 2023 in the fourth quarter with an adjusted gross profit margin.

And our efforts in the sports and Entertainment segment saw a positive quarterly revenue expansion travel and hospitality grew strongly relative to Q3 supported by innovative partnerships and a resurgence in global mobility consumer retail and manufacturing also showed strong sequential growth as companies continue.

Patricia Pomies: Sensei has had a profound effect on how we skill up at Globant, with the average learning hours having increased by 40% year over year. And finally, some updates on our Be Kind initiative. Our Be Kind to Yourself holistic strategy showed great results. Over 79% of Globers expressed that they feel well physically, mentally, and spiritually when working, showing an increase of 3 percentage points compared to our last pulse. This quarter, we were recognized in the Financial Times Statista Diversity Leaders Ranking as one of the most diverse organizations across all industries and sectors.

Huang: <unk> of 38, 1% and 38% respectively for the full year, despite a tough pricing environment currency fluctuations and macroeconomic shifts we've managed to maintain an adjusted operating margin of 15, 2% staying within guidance. Similarly for Q4, our adjusted operating.

To invest in their digital transformation efforts in this space technology. After a period of moderation has stabilized reflecting the essential nature of our services in an increasingly digital world. We continue to be laser focused on profitability. We close 2023 in the fourth quarter with an adjusted gross.

Huang: <unk> margin stood at 15, 3% also within our guidance. This demonstrates our focus on operational efficiency and our ability to leverage revenue growth into meaningful profitability adjusted.

Huang: Adjusted SG&A as a percent of sales stood at 17, 8% in the full year 2023 versus 18, 5% in 2022, representing 70 basis points of improvement our adjusted net income in Q4 reached $71 $1 million within 12, 2% adjusted.

Margin of 38, 1% and 38% respectively for the full year, despite a tough pricing environment currency fluctuations and macroeconomic shifts we've managed to maintain an adjusted operating margin of 15, 2% staying within guidance Similarly for Q4 or <unk>.

Huang: Net income margin up 30 basis points quarter over quarter adjust.

<unk> operating margin stood at 15, 3% also within our guidance. This demonstrates our focus on operational efficiency and our ability to leverage revenue growth into meaningful profitability adjusted.

Patricia Pomies: We continue to share our Be Kind to the Planet voice and sustainability best practices on the global stage. We participated at COP28, taking part in multiple discussions on innovation around carbon and biodiversity credits, energy transitions, water management, and climate. In all of these critical areas, Globant has a technology offering and a charted way for business to be both successful and beneficial to our planet. We're also proud to be working with the U.S. Green Building Council, best known for their LEED certification product. Through our strategic multi-program partnership, we are developing a new platform for the USGBC that will simplify the green building certification process for large construction projects. Through this new interactive platform, property managers and owners will be able to seamlessly and interactively assess and manage sustainability criteria regarding energy, water, air quality, and waste, among other factors.

Huang: Adjusted diluted EPS for the quarter was $1.62 two cents above our guidance, representing a 15, 7% year over year increase based on 44 million average diluted shares our adjusted EPS for the year stood at $5.74 above our full year guidance grow.

Adjusted SG&A as a percent of sales stood at 17, 8% in the full year 2023 versus 18, 5% in 2022, representing 70 basis points of improvement our adjusted net income in Q4 reached $71 $1 million within 12, 2% adjusted.

Huang: <unk>, 13% versus 2022, and representing an adjusted net profit margin of 11, 9%. We continue to believe that the long term health of the company rests on growing while producing profits and we remain committed to this.

Net income margin up 30 basis points quarter over quarter adjusted.

Diluted EPS for the quarter was $1.62 two cents above our guidance, representing a 15, 7% year over year increase based on 44 million average diluted shares our adjusted EPS for the year stood at $5.74 above our full year guidance growing 13.

Huang: Our balance sheet remains strong we've strategically managed our net cash position ending the year with $323 $3 million in cash and short term investments as of December 31, 2023, we had a total amount of $155 million drawn from our credit facility to finance some of the.

Percent versus 2022, and representing an adjusted net profit margin of 11, 9%. We continue to believe that the long term health of the company rests on growing while producing profits and we remain committed to this.

Huang: Acquisitions done during the year, our proactive approach to capital management has yielded a significant free cash flow of $192 million in 2023 compared to a cash generation of $102 $1 million in 2022, reflecting our team's priority on sound capital management.

Our balance sheet remains strong we've strategically managed our net cash position ending the year with $323 $3 million in cash and short term investments as of December 31, 2023, we had a total amount of $155 million drawn from our credit facility to finance some of the <unk>.

Patricia Pomies: We are optimistic about the impact of our work, led by our sustainable business studio, as buildings are responsible for 30 to 40 percent of the global carbon footprint. Finally, we keep working to get more people involved with the tech industry. In line with our commitment to provide coding scholarships to 15,000 individuals worldwide by 2025, we have already awarded a total of 11,500 scholarships, more than 4,000 during 2023 alone.

Huang: Liquidity and financial discipline, our free cash flow to adjusted net income conversion ratio stands as of 2023 at 76, 8% and 121, 1% on an IRS basis. This strong cash generation provides the company with solid funding to focus on growth.

Acquisitions done during the year, our proactive approach to capital management has yielded a significant free cash flow of $192 million in 2023 compared to a cash generation of $102 $1 million in 2022, reflecting our team's priority on sound capital management.

Huang: <unk> reinforce our strategic investments and reinforce our liquidity and net cash position, we remain committed to driving strong free cash flow generation turning to the future outlook. We remain cautiously optimistic for 2024 for Q1 2024, we project at least a 27%.

Juan Urthiague: Now, let me introduce Juan, our CFO. See you all in a few minutes for the live Q&A. Thank you. Thank you, and good afternoon, everyone.

Liquidity and financial discipline, our free cash flow to adjusted net income conversion ratio stands as of 2023 at 76, 8% and 121, 1% on an IRS basis. This strong cash generation provides the company with solid funding to focus on growth.

Huang: Cent year over year growth in revenue with a total topline of at least $570 million for the first quarter of 2024, we expect our adjusted operating income margin in the 15% to 16% range <unk> effective income tax rate is expected to be in the 22% to 24% range.

Juan Urthiague: It's always a pleasure to reconnect and reflect on last year's performance. In 2023, we achieved results that stand as evidence of our resilience, innovation, the dedication of all our Globers, and the trust of our clients. 2023 has been a year of dynamic growth and strategic execution. Our full-year revenues reached a milestone of $2,096,000,000, a remarkable 17.7% year-over-year growth.

Reinforce our strategic investments and reinforced our liquidity and net cash position, we remain committed to driving strong free cash flow generation turning to the future outlook. We remain cautiously optimistic for 2024 for Q1 2024, we project at least a 27%.

Huang: As discussed in prior call pillar, two which implies a minimum level of taxation at 15% rate for all jurisdiction has been approved in Luxembourg, starting January one 2024, increasing our overall tax rate our adjusted EPS for Q1 is expected to be at least $1 53.

Juan Urthiague: In a challenging year, we went on the offensive, and our bets paid off, reflecting our company's hunger for more, our focus on execution, and our commitment and passion for what we do. In 2023, we've not only grown our top line but also captured significant market share, which stands as a clear endorsement of our value proposition. We are optimistic about the future of the company. Our pipeline is strong, and we see a positive change in tone regarding discussions of our clients' long-term strategies relative to the start of last year. We still have plenty of room to grow with many of our clients, and as we scale, we seek to add more and more companies who wish to have the Globant experience.

<unk> year over year growth in revenue with a total topline of at least $570 million for the first quarter of 2024, we expect our adjusted operating income margin in the 15% to 16% range <unk> effective income tax rate is expected to be in the 22% to 24% range.

Huang: <unk> $44 1 million average diluted shares outstanding for the quarter.

Huang: Now, let's move toward the full year guidance, we continue to be very confident about delivering another year of industry, leading growth our outlook considers a demand environment that while showing signs of a recovery relative to 2023 is still below our normalized level of demand based on current visibility we are provide.

As discussed in prior call pillar, two which implies a minimum level of taxation at 15% rate for all jurisdiction has been approved in Luxembourg, starting January one 2024, increasing our overall tax rate our adjusted EPS for Q1 is expected to be at least $1 53 assume.

Huang: Our full year 2024 guidance of at least $2 billion and $435 million or 16, 2% year over year growth. This guidance figure considers a neutral FX outlook. This outlook embeds, a certain level of conservatism, but one that we feel is prudent considering the still fluid Mac.

<unk> $44 1 million average diluted shares outstanding for the quarter.

Juan Urthiague: Let's now review our solid Q4 and 2023 results. We are very proud of the positive top-line growth we were able to deliver. 2023 revenues were up 17.7% year-over-year. This strong growth was mainly driven by an industry-leading 11% organic growth for the year.

Now, let's move toward the full year guidance, we continue to be very confident about delivering another year of industry, leading growth our outlook considers a demand environment that while showing signs of a recovery relative to 2023 is still below our normalized level of demand.

Huang: Crow and industry conditions.

Huang: For the full year, we expect our adjusted operating margin in the 15% to 16% range.

Huang: 24 ire for US effective income tax rate is expected to be in the 22% to 24% range.

Based on current visibility, we are providing our full year 2024 guidance of at least $2 billion and $435 million or 16, 2% year over year growth. This guidance figure considers a neutral FX outlook. This outlook embeds, a certain level of conservatism, but one that we feel it.

Juan Urthiague: Also, we delivered another strong quarter of profitability, solid cash generation, and a strong balance sheet position. These results were driven by our strong execution across all of our growth pillars. In the fourth quarter, we saw our revenues reach $580.7 million, a remarkable 18.3% year-over-year growth, which markedly outstrips industry averages and speaks to our strategic initiatives paying dividends. These results demonstrate our ability to navigate through headwinds with agility and capitalize on our diversified offerings and global reach. Our organic growth remains a core strength, contributing 11 points to our overall expansion for the quarter, signaling the effectiveness of our 100-squared strategy and our commitment to deepening relationships with existing clients while forging new ones. The performance across our verticals reflects our solid execution.

Huang: Finally, our adjusted diluted EPS for 2024 is expected to be at least $6 50.

Huang: Assuming $44 3 million average diluted shares for the year.

Speaker Change: As we conclude I want to express my gratitude for the trust placed in us by our clients shareholders and the entire global team.

Prudent considering the still fluid macro and industry conditions for the full year, we expect our adjusted operating margin in the 15% to 16% range.

Speaker Change: The past year has been a powerful reminder of the strength inherent in our culture, the agility of our business model and the transformative impact of our work. Thank.

2024 ire for US effective income tax rate is expected to be in the 22% to 24% range.

Speaker Change: Thank you everyone for joining the call today and for your continued support and belief in our vision and strategy. We look forward to updating you on our progress throughout the coming year.

Finally, our adjusted diluted EPS for 2024 is expected to be at least $6 50.

Assuming $44 3 million average diluted shares for the year.

As we conclude I want to express my gratitude for the trust placed in us by our clients shareholders and the entire global team.

20 years ago, porphyry and sat at a bar and wrote an idea that on an Afghan 20 years later that IP deeper into a global package at a.

Past year has been a powerful reminder of the strength inherent in our culture, the agility of our business model and the transformative impact of our work.

Speaker Change: With 20 years of great ideal looks like that imagine 'twenty.

Thank you everyone for joining the call today and for your continued support and belief in our vision and strategy. We look forward to updating you on our progress throughout the coming year.

Speaker Change: Thank you Juan and hi, everyone.

Speaker Change: So as we go through the question and answer session of this call I will announce her name at that point. Please on the airline and ask your questions. Please mute your line up to your question is done I would also ask to please limit your questions. Your time to one question only please.

20 years ago for free and sat at a bar and wrote an idea that on an Afghan 20 years later that deeper into our global team in Shanghai.

Juan Urthiague: We saw year-on-year and quarter-over-quarter growth across virtually all of our business segments in 2023 and in Q4, respectively. In a similar fashion, all of our key geographies performed strongly in Q4, witnessing a strong recovery when compared to the first half of 2023. Media and entertainment, energized by digital consumption trends at our biggest client and our efforts in the sports and entertainment segment, saw a positive quarterly revenue expansion. Travel and hospitality grew strongly relative to Q3, supported by innovative partnerships and a resurgence in global mobility.

Speaker Change: So thank you very much on with that in mind. The first question comes from transferring one from J P. Morgan TMC and your line is open. Please go ahead.

His 20 years of great idea looks like that imagine 'twenty.

Speaker Change: Hey, thanks, good to see.

Speaker Change: Are you all.

Speaker Change: Maybe I'll start and ask just on the guidance of course.

Speaker Change: Before especially Q1 thinking about the sequential decline and I know, there's a lot of.

Thank you Juan and hi, everyone.

As we go through the question and answer session of this call I will announce her name at that point. Please on the airline and ask your questions. Please mute your line up to your question is done I would also ask to please limit. Your question your time to one question only please.

Speaker Change: Complexity with FX and.

Speaker Change: On M&A, but can you just comment on on visibility.

Speaker Change: And what we should consider for the first quarter and sequential growth for the rest of the year here versus history, maybe we start with that.

So thank you very much and with that in mind. The first question comes from transferring one from Jpmorgan TMC and your line is open. Please go ahead.

Speaker Change: So for the first quarter, we guided.

Juan Urthiague: Consumer, retail, and manufacturing also showed strong sequential growth, as companies continue to invest in their digital transformation efforts in the space. Technology, after a period of moderation, has stabilized, reflecting the essential nature of our services in an increasingly digital world. We continue to be laser-focused on profitability. We closed 2023 and the fourth quarter with an adjusted gross profit margin of 38.1% and 38%, respectively. For the full year, despite a tough pricing environment, currency fluctuations, and macroeconomic shifts, we managed to maintain an adjusted operating margin of 15.2%, staying within guidance. Similarly, for Q4, our adjusted operating margin stood at 15.3%, also within our guidance.

Speaker Change: $570 million, which is.

Hey, Thanks, good to see you all.

Speaker Change: Round.

Speaker Change: 7%.

Maybe I'll start and ask just on the guidance of course.

Speaker Change: Year over year growth that is.

Speaker Change: One 8% sequential decrease.

Before especially Q1 thinking about the sequential decline I know, there's a lot of.

Speaker Change: That decrease when we reported back in November we spoke about some one offs that we had in Q4 related to licensees.

Complexity with FX and.

On M&A, but can you just comment on on visibility.

Speaker Change: Then there was another impact that we've got which was.

What we should consider for the first quarter and sequential growth for the rest of the year here versus history, maybe we start with that.

Speaker Change: The significant depreciation of the Argentinian economy and that resulted in a renegotiation of contracts with some of our customers. So when we combine those two events.

So for the first quarter, we guided.

$570 million, which is.

Speaker Change: We ended up with a slight sequential decrease.

Our own 27%.

Year over year growth that is.

Speaker Change: Heading into Q1.

One 8% sequential decrease.

Speaker Change: Going forward. After Q1, basically we are seeing sequential growth of around 4% to 5% every quarter and that lead us to around 16, 2% year over year growth, which is we believe a very strong growth for the year.

Degrees when we reported back in November we spoke about some one offs that we had in Q4 related to licensees and then there was another.

We've got which was.

The significant depreciation of the Argentinian economy on that.

Speaker Change: No that's clear thanks for going through that and then maybe my follow up.

Resulted in renegotiations of contracts with some of our customers. So when we combine those two events.

Speaker Change: I'll ask.

Speaker Change: Question, if thats, Okay. I know you mentioned 500 projects around so can you comment just on.

We ended up with a slight sequential decrease.

Heading into Q1.

Juan Urthiague: This demonstrates our focus on operational efficiency and our ability to leverage revenue growth into meaningful profitability. Adjusted SG&A as a percent of sales stood at 17.8% in the full year 2023 versus 18.5% in 2022, representing 70 basis points of improvement. Our adjusted net income in Q4 reached 71.1 million dollars within a 12.2% adjusted net income margin, up 30 basis points quarter over quarter. Adjusted diluted EPS for the quarter was $1.62, $0.02 above our guidance, representing a 15.7% year-over-year increase based on 44 million average diluted shares.

Speaker Change: Average deal size.

Going forward after Q1 basically.

Speaker Change: How tight is the or dispersed as that spread.

We're seeing sequential growth of around 4% to 5% every quarter and that lead us to overall 16, 2% year over year growth.

Spread out is that I'm, just curious what the deal projects look like and if it drives any pull through for other long term projects at this point.

Speaker Change: First part and then we'll let Daryl.

Daryl: Hi, Tien Tsin, how are you.

We believe a very strong growth for the year.

Daryl: No.

Daryl: The air Space, we are seeing.

Okay.

That's clear thanks for going through that and then maybe my follow up.

Daryl: Like.

Daryl: I mean is what everybody is talking about and that's pretty clear it has in particular for last quarters.

I'll ask my other question if thats. Okay. I know you mentioned 500 projects around AI. So can you comment just on.

Daryl: Still I believe the projects are exploratory and we are seeing some evolution in them and we're seeing some evolution on.

Average deal size.

How tight is the ore disperses that or this.

Is that I'm, just curious what the deal projects look like and if it drives any pull through for <unk>.

Daryl: The demand.

Daryl: I think during this year at some point, we will see those large.

Other long term projects at this point, but I'll take the.

The first part and then we'll let you go.

Daryl: Digital transformation like projects on the ice pace.

Hi, Tien Tsin, how are you.

So.

Daryl: Coming for now companies are exploring how to use it but I would divide the thing in adoption of AI into specific portions one is how people adopted to create content on any kind of any kind.

On the air space, we are seeing.

Like.

I mean is what everybody is talking about and that's pretty clear. It has in particular for the last quarters.

Juan Urthiague: Adjusted EPS for the year stood at $5.74, above our full-year guidance, growing 13% vs. 2022, and representing an adjusted net profit margin of 11.9%. We continue to believe that the long-term health of the company rests on growing while producing profits, and we remain committed to this. Our balance sheet remains strong. We've strategically managed our net cash position, ending the year with $323.3 million in cash and short-term investments. As of December 31st, 2023, we had a total amount of $155 million drawn from our credit facility to finance some of the acquisitions done during the year.

Still I believe the projects are exploratory and we are seeing some evolution in them and we're seeing some evolution on.

Daryl: How to program faster how to.

Daryl: Fried code faster how to write texts faster everybody's using AI for that on generative airport for that which is ideal and of course companies are already <unk>.

The demand.

I think during this year at some point, we will see those large.

Digital transformation like projects on the ice space.

Daryl: Leveraging those things and then the big discussion is how we start using that on the internal processes to optimize what we do inside of companies and that's something that we're managing at every single board level in which an AI champion is taking care of all the AI initiatives 400 per se.

Coming for now companies are exploring how to use it but I would divide the thing in adoption of AI into specific portions one is how people adopted to create content on any kind of any kind.

How to program faster how to.

Daryl: <unk> of the projects, we do for our customers now I will turn it over to be able to comment on the size of our projects so on and so forth which is.

Right code faster how to write texts faster ever.

I was using AI for that on generative effort for that which is ideal and of course companies are already.

Speaker Change: Pretty interesting.

Speaker Change: So I think teaching the most important thing is how this behaves.

Leveraging those things and then the big discussion is how we start using that on the internal processes to optimize what we do.

Speaker Change: What we are seeing and what we're tracking is the penetration of AI into our claims and into our projects.

Juan Urthiague: Our proactive approach to capital management has yielded a significant free cash flow of $192 million in 2023 compared to a cash generation of $102.1 million in 2022, reflecting our team's priority on sound capital management, liquidity, and financial discipline. Our free cash flow to adjusted net income conversion ratio stands as of 2023 at 76.8% and 121.1% on an IFRS basis. This strong cash generation provides the company with solid funding to focus on growth, reinforce our strategic investments, and reinforce our liquidity and net cash position. We remain committed to driving strong free cash flow generation. Turning to the future outlook, we remain cautiously optimistic for 2024. For Q1 2024, we project at least a 20.7% year-over-year growth in revenue, with a total top line of at least $570 million. For the first quarter of 2024, we expect our adjusted operating income margin to be in the 15% to 16% range. IFRS's effective income tax rate is expected to be in the 22% to 24% range.

Inside of companies and that's something that we're managing at every single board level in which an AI champion is taking care of all the AI initiative support 100% of the projects. We do for our customers now I will turn it over to Diego to comment on the size of our projects so on and so forth which is.

Speaker Change: The project has an AI component does not mean that each project is a business project in solving a problem that it would typically be for what's being sold by other means now with the use of AI that is expanding dramatically and it's exactly how.

Speaker Change: We said from day one this will be everywhere. This is not like a niche for some specific type of projects with regards to that.

It's pretty interesting.

So so I think <unk>. The most important thing is how this behaves.

What we are seeing and what we're tracking is the penetration of AI into our claims and into our projects.

Speaker Change: The growth of the AI studio is definitely by far outpacing.

Speaker Change: That of the company.

Speaker Change: We are seeing will continue to see a lot of those projects being allocated to as of today to productivity.

The project has an AI component does not mean that it's an AI project. It's a business project in solving a problem that it was <unk>.

Typically before what's being sold by other means now with the use of AI that is expanding dramatically and it's exactly.

Speaker Change: Doing what we used to do in some way.

Speaker Change: More effectively much faster cheaper with the use of AI automation content generation.

How we see it from day one this will be everywhere. This is not like a niche for some specific type of projects with regards to that.

Speaker Change: But we're seeing two different trends. The first one is we're starting to see a slight increase of the type of projects that have to do with consumer facing products being impacted by so many a component.

The growth of the Ace two is definitely by far outpacing.

Net of the company.

Speaker Change: The content.

We are seeing will continue to see a lot of those projects being are located to as of today to productivity.

Speaker Change: I think I'm suggestion engines.

Speaker Change: <unk> she had failed aiding the user automatic.

Doing what we used to do in some way.

Speaker Change: Generational.

Certain type of content for the user the second thing.

<unk> effectively much faster cheaper with the use of AI automation content generation.

Speaker Change: We are seeing.

Speaker Change: Change is data.

But we're seeing two different trends. The first one is we're seeing to see a slight increase of the type of projects I have to do with consumer facing products being impacted by so many E components.

Speaker Change: The type of projects, we're now doing.

Speaker Change: Even in even when it comes to the space of a productivity are becoming more complex and this is actually very good we're trying to solve deeper complex problems now the data problems. We are feeling the same.

Juan Urthiague: As discussed in the previous call, Pillar 2, which implies a minimum level of taxation at a 15% rate for all jurisdictions, has been approved in Luxembourg starting January 1st, 2024, increasing our overall tax rate. Our adjusted EPS for Q1 is expected to be at least $1.53, assuming 44.1 million average diluted shares outstanding for the quarter. Now let's move toward the full year guidance. We continue to be very confident about delivering another year of industry-leading growth. Our outlook considers a demand environment that, while showing signs of a recovery relative to 2023, is still below a normalized level of demand. Based on current visibility, we are providing our full-year 2024 guidance of at least $2,435,000,000, or 16.2% year-over-year growth. This guidance figure considers a neutral FX outlook. This outlook embeds a certain level of conservatism, but one that we feel is prudent considering the still fluid macro and industry conditions. For the full year, we expect our adjusted operating margin to be in the 15% to 16% range. In 2024, our IFRS effective income tax rate is expected to be in the 22-24% range.

The content.

Just wondering I'm suggestion engines.

<unk>, who had failed aiding the user automatic.

The type of things, but from a much more complex ecosystem, becoming and that becomes a data problem, which is part of the solution. The more of those are much more complex. We're working afterwards with the MLR ops to improve that over time. So we are seeing.

Generational.

Certain type of content for the user the second thing we.

We are seeing as a change is data.

The type of projects, we're now doing.

Speaker Change: Those type of projects maturing so I think it's a continuation of what we've been telling you since last year.

Even in even when it comes to the space of a productivity are becoming more complex and this is actually very good we're trying to solve deeper complex problems now the data problems. We are feeling the same.

Speaker Change: This will eventually take some time, but what we see is that within this year, we will definitely see a switch into the.

Type of things, but from a much more complex ecosystem, becoming and that becomes a data problem, which is part of the solution. The more of those are much more complex. We're working afterwards with MLR ops to improve that overtime. So we are seeing.

Speaker Change: AAV and used for new business likes like having new revenue streams, new type of interfaces consumer facing applications et cetera.

Speaker Change: That's great. Thanks, Hugo Thank you all thank.

Speaker Change: Thank you.

Those type of projects maturing so I think it's a continuation of what we've been telling you since last year.

Speaker Change: The next question is coming from the line of US ratio occurred from city Ashwin. Please go ahead. Your line is open.

This will eventually take some time, but what we see starting within this year, we will definitely see a switch into the AA.

Ashwin: Good to see you all.

Ashwin: Hi.

If I can go back to the previous question.

Being used for new business likes like having new revenue streams, new type of interfaces consumer facing applications et cetera.

Ashwin: Because you mentioned obviously the one time license you mentioned the impact of Argentina devaluation, but there's also two acquisitions.

That's great. Thanks, Hugo Thank you all.

Ashwin: Is there something different about the seasonality of those acquisitions, perhaps or.

Thank you.

Juan Urthiague: Finally, our adjusted diluted EPS for 2024 is expected to be at least $6.50, assuming 44.3 million average diluted shares for the year. As we conclude, I want to express my gratitude for the trust placed in us by our clients, shareholders, and the entire Globant team. The past year has been a powerful reminder of the strength inherent in our culture, the agility of our business model, and the transformative impact of our work. Thank you everyone for joining the call today and for your continued support and belief in our vision and strategy. We look forward to updating you on our progress throughout the coming years. 20 years ago, four friends sat at a bar and wrote an idea on a napkin.

The next question is coming from the line of US ratio occurred from city Ashwin. Please go ahead. Your line is open.

Ashwin: How would you quantify the various pieces.

Ashwin: And.

Ashwin: If I can get you also to comment on when you say positive change at home.

Good to see you all.

Ashwin: Yeah.

Hi.

Ashwin: You know what what form is that currently taking are these discussions about bigger projects is the ramp faster that youre discussing because there is a lot of comprehensive about two Q2 for Q yeah.

If I can go back to the previous question.

Because you mentioned obviously the one time license you mentioned the impact of Argentina devaluation, but there's also two acquisitions.

Ashwin: With regards to the first question when we look out when we look at the impact of licenses.

Is there something different about the seasonality of those acquisitions, perhaps or.

The division in Argentina, we estimate that between $15 million to $20 million based on ongoing renegotiation of contracts with an order that's when I and in some cases.

How would you quantify the various pieces.

And if I can get you also to comment on when you say positive change at home.

Ashwin: And then we shall.

Yeah.

What form is that currently taking out these discussions about bigger projects is the ramp faster that youre discussing because there is a lot of confidence about Q2 for Q yeah.

Ashwin: The positive impact of that on <unk>.

Ashwin: Chris.

Ashwin: Both of those.

Ashwin: Companies have some seasonality typically for those companies Q4 test.

Arturo Langa: 20 years later, that idea evolved into a global tech giant. If 20 years of a great idea looks like that, imagine 20 more. Thank you, Juan, and hi everyone.

With regards to the first question when we look out when we look at the impact of licenses from them.

Ashwin: Longer quarter, then hub because.

Ashwin: Because of it but they are mainly in Brazil in the case of gap.

The division in Argentina, we estimate that between $15 million to $20 million based on ongoing renegotiation of contracts with an order that's when I and in some cases.

Ashwin: Because of what they do they tend to have a very strong end of the year and then a slightly lower beginning of the year and then they become stronger.

Tianxin Huang: So as we go through the question and answer section of this call, I will announce your name. At that point, please unmute your line and ask your questions. Please unmute your line after your question is done. I would also ask you please limit your time to one question only, please. So thank you very much, and with that in mind, the first question comes from Tianxin Huang from JP Morgan. Tianxin, your line is open, please go ahead.

Ashwin: When we talk about the conversations with customers I think that we continue to see some improvement in terms of.

And then we shall.

The positive impact of that.

And if there is.

Both of those.

Ashwin: Not just talking about.

Companies have some seasonality typically for those companies Q4 tests.

Ashwin: Savings about efficiencies they are talking again.

Ashwin: About building new products.

A stronger quarter than hub because of its Terry.

Many new features innovation in general.

Mainly in Brazil, and the case, we've got because of what they do they tend to have a very strong end of the year and then a slightly lower beginning of the year and then they become stronger.

Juan Urthiague: Thanks. It's good to see you all. Maybe I'll start and ask just some of the guidance, of course, on fiscal 24, especially Q1, thinking about the sequential decline. I know there's a lot of complexity with FX and M&A, but can you just comment on visibility and what we should consider for the first quarter and sequential growth for the rest of the year here versus history? Maybe we can start with that. Thank you, Eugene. So for the first quarter, we got $570 million, which is around 20.7% year-over-year growth, and that is a 1.8% sequential decrease.

Ashwin: And I think we think that's a positive change of tone in conversations and we have a number of customers in different sectors and are already engaging into some of those large.

When we talk about the conversations with customers I think that.

Ashwin: I'm very attractive type of projects.

Continue to see some improvement in terms of.

Ashwin: So when we see how the bookings are starting to trend in Q1 that gives us some confidence into the rest of the year as well.

Not just talking about.

Savings about efficiencies they are talking again.

Ashwin: Okay.

Speaker Change: The second question is this maybe.

Speaker Change: About diego's comment with regards to increased complexity I guess.

Building new products.

Many new features innovation in general.

Might apply to not just AI because of project as well.

And I think we think that's a positive change of tone in conversations and we have a number of customers in different sectors and are already engaging into some of those large.

Speaker Change: Fixed price contracts.

Speaker Change: Now 21% of total year ago was 17%, it's a pretty good size jump in terms of how.

Juan Urthiague: That decrease, you know, when we reported back in November, we spoke about some one-offs that we had been looking for related to licenses. And then there was another impact that we had, which was the significant depreciation of the Argentinian economy. And that resulted in renegotiations of contracts with some of our customers. So when we combine those two events, you know, we ended up with a slight sequential decrease heading to Q1. Going forward, you know, after Q1, basically, we are seeing sequential growth of around 4% to 5% every quarter. And that leads us to around 15.2% year-over-year growth, which is, we believe, very strong growth for the year. Good. No, that's clear. Thanks for going through that.

I'm very attractive type of projects.

Maybe you're engaging with your clients or maybe out of your clients are engaging with us also.

So when we see how the bookings are starting to trend in Q1 that gives us some comprehensive to the rest of the year as well.

Speaker Change: Could you provide maybe a.

Speaker Change: Deeper explanation of that trend.

Okay.

Speaker Change: Yes definitely.

Question is this maybe.

Speaker Change: In many occasions, when we engage with our clients.

Diego's comment with regards to increased complexity I guess.

Speaker Change: And especially when we have the reinvention studios, we will now go deeper into our solution for different industries.

Applied not just AI, but two other projects as well.

Fixed price contracts is now 21% of total year ago with 17%, it's a pretty good size jump in terms of how.

Speaker Change: We tend to repeat.

Speaker Change: Certain type of solutions and that allow us to go into return type of contracts like committing you know putting some skin in the game.

Maybe you're engaging with your clients or maybe out of your clients are engaging with you also.

Speaker Change: This brings the certainty on a client in the maturity on the relationship that allows us to increase the portion of the <unk> of the fixed price, we still as you've seen not significant but it's possible and I think it's a it's a good and healthy trends.

Could you provide maybe a.

Deeper explanation of that trend.

Yes definitely.

In many occasions, when we engage with the client.

And especially when we have the reinvention studios, which now go deeper into a solution for different industries.

Speaker Change: Great. Thank you.

Speaker Change: Thank you Jonathan.

We tend to repeat.

Speaker Change: Thank you Ashwin. The next question comes from Tyler Dupont from the Bank of America. Please go ahead.

Certain type of solutions and that allow us to go into return type of contracts like committing you know putting some skin in the game.

This brings the certainty on a client and the maturity on the relationship that allows us to increase the portion of the of the fixed price is still as you seen not significant but it's possible and I think it's a it's a good and healthy trends.

Tyler Dupont: Sorry, Tyler your line is muted.

Tyler Dupont: Oh, sorry about that is that better.

Juan Urthiague: And then maybe in my follow-up question, I'll ask an AI question, if that's okay. I know you mentioned 500 projects around AI. So can you comment just on average deal size, how tight is that, or disperse is that, or spread out is that? I'm just curious what the deal projects look like and if it drives any pull through for other larger projects. I'm going to take the first part and then we'll let Diego. Hi, Team Jain, how are you? So, in space, we are seeing like... I mean, it's what everybody's talking about.

Tyler Dupont: Jim and I still can't figure it out.

Tyler Dupont: Thanks, guys.

Great. Thank you.

Tyler Dupont: I would be curious if we could just start by double clicking on the types of conversations you guys are having with clients as we begin 2024 with respect to visibility and particularly with budgeting decisions as we start to firm up.

Thank you Jonathan.

Thank you Ashwin.

The next question comes from Tyler <unk> from Bank of America. Please go ahead.

Tyler Dupont: For the beginning part of the year.

Tyler Dupont: What are the types of projects that clients seem to be focusing on.

Tyler Dupont: And are there any particular call outs worth mentioning.

Sorry, Tyler your line is muted.

Speaker Change: Yes, I will take the first part.

Oh, sorry about that is that better.

Speaker Change: So I'm seeing like Barry.

Every year hedge that zoom and I still can't figure it out.

Speaker Change: Much more positive conversation than a year ago, and that's remarkable to see the difference between them.

Thanks, guys.

Juan Urthiague: And that's pretty clear. It has been pretty clear for the last quarters. Still, I believe the projects are exploratory, and we are seeing some evolution in them, and we are seeing some evolution in demand. I think during this year, at some point, we will see those large, digital transformation-like projects in the AI space. For now, companies are exploring how to use it, but I would divide the thing and adoption of AI into two specific parts. One is how people are using AI to create content of any kind, how to program faster, how to write code faster, how to write text faster.

I'd be curious if we could just start by.

Double clicking on the types of conversations you guys are having with clients as we begin 2024 with respect to visibility and particularly with budgeting decisions as we start to firm up.

Speaker Change: First quarter 2023, and first of all 23 and four.

Speaker Change: So that's encouraging and that keeps us excited about the opportunities moving forward.

Speaker Change: <unk> are all over the place from AI too.

For the beginning part of the year.

Speaker Change: Two members or.

What are the types of projects that clients seem to be focusing on.

Speaker Change: Spatial computing in and going to traditional digital transformation or optimizations, I mean, where do.

And are there any particular callouts worth mentioning.

Yeah, I would take the first part.

Any kind of process in the four.

So I'm seeing like Barry.

Speaker Change: In the fourth.

Speaker Change: To your network on the enterprise side, we see very good.

More positive conversations than a year ago, and that's remarkable to see the difference between.

Speaker Change: Both.

Speaker Change: Coming from.

First quarter 2023, and first part 23 and four so that's encouraging and that keeps us excited about the opportunities moving forward projects are all over the place from AI too.

Speaker Change: Salesforce from ERP implementation or transformation, we're seeing.

Juan Urthiague: Everybody's using AI for that, and generative AI for that, which is ideal. And, of course, companies are ready to leverage those things. And then the big discussion is how we start using that in internal processes to optimize what we do inside the companies. And that's something that we are managing at every single bot level, where an AI champion is taking care of all the AI initiatives for 100% of the projects we do for our customers.

Speaker Change: Good things on the cloud migration space.

Speaker Change: Then on the on the digital space everything going from the traditional.

Two murderers or.

Spatial computing.

Speaker Change: Consumer engagement platforms. The digital experience is going to AI, so on and so forth on the.

Going to the traditional digital transformation of our optimizations I mean, we're doing any kind of process in the four.

Speaker Change: Create.

For studio network on the enterprise side, we see very good.

Speaker Change: Studio, we are moving forward very fast into pitching pretty much every single customer we had out of the 1600 customers we have.

Growth.

Coming from.

Sales force from ERP implementation or transformation, we're seeing good things on the cloud migration space.

Diego Tartara: Now, I would turn it over to Diego to comment on the size of the project, so on and so forth, which is, I think, pretty interesting. So I think, Ting-Qin, the most important thing is how this behaves. What we are seeing and what we are tracking is the penetration of AI into our clients and into our projects. That a project has an AI component does not mean that it's an AI project.

Speaker Change: I'm pretty sure that we'll be able to cross sell there and indeed as you have seen on our last presentation.

We have.

Speaker Change: <unk> been pushing a lot on cross selling so we can go from one network to the other with pretty much all our customers and that has been extremely important and of course, our reinvention studios, where we play on the airline space in the retail space on the many different industries in which we play we have seen demand in all of them.

Then on the on the digital space everything going from the traditional.

Consumer engagement platforms. The digital experience is going to AI, so on and so forth on the.

Create.

Studio, we are moving forward very fast into pitching pretty much every single customer we had out of the 1600 customers we have.

Diego Tartara: It's a business project. It's solving a problem that, typically, before was being solved by other means, now with the use of AI. That is expanding dramatically. And that is exactly how we see it from day one. This will be everywhere. This is not like a niche for some specific type of projects.

Speaker Change: Talking about specific sectors that has been growing.

Speaker Change: One is health care or life Sciences.

I'm pretty sure that we'll be able to cross sell there and indeed as you have seen on our last presentation.

Speaker Change: Other one is retail.

We have.

Speaker Change: One is travel and leisure.

<unk> been pushing a lot on cross selling so we can go from one network to the other with pretty much all our customers and that has been extremely important and of course, our ambition studios, where we play on the airline space in the retail space on the <unk>.

Speaker Change: Three sector, specifically has been poor.

Diego Tartara: With regard to that, the growth of the AI studio is definitely by far outpacing that of the company. We are seeing, and we continue to see a lot of those projects being allocated to, as of today, productivity, doing what we used to do in some way more effectively, much faster, cheaper, with the use of AI automation, content generation. But we're seeing two different trends. The first one is we're seeing a slight increase in the type of projects that have to do with consumer-facing products being impacted by some AI components. Content, just as a suggestion engine, chatbots that help aid the user, and the automatic generation of a certain type of content for the user.

Speaker Change: <unk> a lot during this quarter.

Speaker Change: During this last quarter and last year I would say.

Speaker Change: In general so.

Speaker Change: Overall, and then I'll, let David to go buy.

Any different industries in which we play we have seen demand in all of them.

Speaker Change: More in depth about the type of projects, but overall, we see a much more positive environment that the same quarter last year.

Talking about specific sectors that has been growing.

One is health care or life Sciences.

David: So I would like to either to one Martina said or maybe highlight is two different things conversation started started too.

The other one is retail.

The other one is travel and leisure.

Those three sectors, specifically has been pushing a lot during this quarter.

David: Shift more into a revenue generating side.

This last quarter and last year I would say.

Side of things.

David: Weather during last year, there was a lot about grooming the operation, which is very good that makes me actually very happy and even when we're talking about the enterprise studio.

In general so.

Overall, and then I'll, let Dave or to go more in depth about the type of projects, but overall, we see a much more positive environment that this same quarter last year.

David: We are now beginning to beginning projects and discussions about full migration like full migration to the cloud abated daily and et cetera, which can be as you know very expensive and lengthy type of projects. So we are seeing the commitment and the investment on the longer term more transformative cyber fixed.

Diego Tartara: The second thing we are seeing as a change is data. The type of projects we're now doing, even when it comes to the space of productivity, are becoming more complex. And this is actually very good.

First I would like to either to one Martina said or maybe highlight is to the kind of things conversation started started too.

Shifting more into a revenue generating.

Diego Tartara: We are trying to solve deeper, more complex problems. Now, for data problems, we are feeding the same type of things, but from a much more complex ecosystem. And that becomes a data problem, which is part of the solution. The models are much more complex.

Side of things.

Weather during last year, there was a lot about grooming the operation, which is very good that makes me actually very happy and even when we're talking about the enterprise studio.

Speaker Change: Okay. That's very helpful. Thank you and just as a follow up I wanted to.

Speaker Change: Touch on what you guys mentioned regarding the sequential math.

Speaker Change: As we look through topline growth for 2024.

We are now beginning to beginning projects and discussions about full migration like full migration to the cloud updated daily and et cetera, which can be as you know very expensive and lengthy type of project. So we are seeing the commitment and the investment on the longer term more transformative side of things.

Speaker Change: Based on the back of the envelope math here it looks like the exit rate is somewhere in the 12.

Diego Tartara: We're working afterwards with MLOps to improve that over time. So we are seeing those types of projects maturing. So I think it's a continuation of what we've been telling you since last year. This will eventually take some time, but what we see is that within this year, we will definitely see a switch into AI being used for new business life, like having new revenue streams, new types of interfaces, and consumer-facing applications.

Speaker Change: That growth profile versus the historical commentary of that high teens, 20%, plus just sort of any dynamics there.

Speaker Change: Keep in mind up.

Okay. That's very helpful. Thank you and just as a follow up I wanted to.

Speaker Change: The first part of the year, we're poking around growth of around 20%.

Touch on what you guys mentioned regarding the sequential math as we look through topline growth for 2024.

Speaker Change: Both quarters.

Speaker Change: Then in the second half of their you know we are trying to provide a number but we're pretty comfortable at the beginning of the year.

Diego Tartara: That's great. Thanks, Diego. Thank you. Thank you. Thank you. Thank you, Tintin. The next question is coming from the line of Ashwin Shirvaikar from City. Ashwin, please go ahead.

Based on the back of the envelope math here it looks like the exit rate is somewhere in the 12% 13% neighborhood, let's call it.

Speaker Change: There is still a lot of uncertain physical are known and we didn't want to.

Speaker Change: Set the bar and a place that maybe.

So how should we be reconciling that growth profile versus the historical commentary of that high teens, 20%, plus just sort of any dynamics there.

Speaker Change: Depending on how the economy evolves somehow the rest of the year turns out.

Speaker Change: Yes.

Speaker Change: It would put us in a difficult if theres always were starting where we feel comfortable that we see the sequential growth being very reasonable when you look at the type of growth that is assumed on a sequential basis. It is quite Russo personnel, where given our history.

Keep in mind up.

Ashwin Shirvaikar: Your line is open. Good to see you all. Bye. Bye. If I can go back to the previous question, because you mentioned, obviously, the one-time license, you mentioned the impact of Argentina's devaluation, but there were also two acquisitions.

The first part of the year, we're thinking about growth of around 20% for both quarters.

And then in the second half of their you know we're trying to provide a number but we're pretty comfortable at the beginning of the year.

Speaker Change: And that's how we ended up with I think relative to the industry, a very strong year over year growth of 16, 2%.

Still a lot of uncertainties going on and we didn't want to.

Juan Urthiague: Is there something different about the seasonality of those acquisitions perhaps, or how would you quantify the various pieces? And if I can get you also to comment on when you say positive change of tone. You know, what form is that currently taking? Are these discussions about bigger projects? Is the ramp faster that you're discussing?

<unk> you know in a place that maybe.

Depending on how the economy rolled somehow the rest of the year turns out.

Speaker Change: Okay, great. Thanks, guys appreciate the color.

Speaker Change: Thank you bye bye bye bye.

It would put us in a difficult to theirs, we're starting where we feel comfortable that we see the sequential growth being.

Speaker Change: Thank you Taylor. Our next question comes from the line of Moshe <unk> from Wedbush Moshe. Please go ahead.

Moshe: Hey, thanks.

Very reasonable when you look at the type of growth that is assumed on a sequential basis. It is quite brief so personnel, where given our history.

Moshe: Uh huh.

Moshe: Okay.

Moshe: Mhm.

Moshe: We're at some various.

Moshe: Okay.

Moshe: Yes Catherine.

And that's how we ended up with.

Juan Urthiague: You know, because there is a lot of confidence about 2Q to 4Q. Yeah, you know, with regard to the first question, when we look at the impact of licenses and the situation in Argentina, we estimate that between 15 to 20 million dollars, there is an ongoing renegotiation of contracts that, you know, we don't know where that's going to end in some cases. And then we have, you know, the positive impact of GATT and ITERIS, both of those companies have some seasonality, you know, typically for those companies, Q4 tends to be a stronger quarter. Then you have, in the case of Ethereum, they are mainly in Brazil.

Relative to the industry, a very strong year over year growth of 16, 2%.

We cannot hear.

Moshe: Circle.

Moshe: Okay.

No we cannot hear sorry.

Okay, great. Thanks, guys I appreciate the color.

Moshe: Just one machine and Martinez format strategy.

Thank you bye bye bye bye.

Moshe: You've clearly had exposure to Latin America, and I think your numbers last year.

Thank you Taylor. Our next question comes from the line of Moshe <unk> from Wedbush Moshe. Please go ahead.

Martinez: Yes, Jeremy.

Hey, thanks.

Martinez: Yes.

Martinez: Now Youre back now you are back.

Okay.

Brett some various.

Martinez: Yeah.

Okay.

Yes Catherine.

Martinez: Uh huh.

Uh huh.

Martinez: Sorry.

We cannot hear.

Martinez: So let me just restart.

So a couple things.

Martinez: Can you hear me now.

Okay.

Martinez: Yes.

No we cannot hear sorry.

Martinez: Can you hear me.

Martinez: Okay. So the first one is on strategy and it seems that youre going to be investing a bit more in Mexico and Brazil.

In Washington, our Martinez format strategy.

You've clearly had exposure to Latin America, and I think your numbers last year.

Martinez: How big can this be for you guys. Maybe you can give us a feel here just given the fact that Latin America is a.

Yes, Jeremy yes.

Now Youre Buck Najjar Buck.

Martinez: Continental is doing much better economically versus North America and Europe.

Diego Tartara: In the case of GATS, you know, because of what they do, they tend to have a very strong end of the year and then a slightly lower beginning of the year, and then they become stronger. You know, when we talk about the conversations with customers, I think that we continue to see some improvement in terms of, you know, not just talking about, you know, savings, about efficiencies, they are talking again about building new products, you know, building new features, innovation in general, and I think we think that's a positive change of tone in conversations, and we have a number of customers in different sectors that are already engaging into some of those large and very attractive type of projects, that also gives us and when we see you know how the bookings are starting to trend in Q1 that gives us some confidence into the rest of the year as well.

Yeah.

And.

Martinez: Latin America is the region actually had almost currently.

Hum.

Okay sorry.

Martinez: And growth.

Let me just restart.

Martinez: Order.

Can you hear me now.

Yes.

Can you hear me, yes, yes, okay. So the first one is on strategy and it seems like youre going to be investing a bit more in Mexico and Brazil.

Martinez: So maybe some color on that because I think it's.

Martinez: It's a pretty interesting kind of the.

Martinez: Okay.

Speaker Change: I don't know if you can hear me.

How big can this be for you guys. Maybe you can give us a feel here just given the fact that Latin America is a key.

Speaker Change: Russia, because it got caught in a bit but I would try to articulate very articulate our particularly the first part of the question and then I will let Juan so.

Continental is doing much better economically versus North America, and Europe and.

Juan: Yes, Latin America.

Latin America is the region actually had almost.

Juan: In my opinion it would be.

Juan:

Okay.

Juan: A very important place moving forward strategically speaking for the U S and.

On growth.

Order.

So maybe some color on that because I think it's.

Juan: For North America in General So I believe that Latin America is a central place not just for us to deliver but also to keep on evolving our business. So a few hubs as you have seen.

It's a pretty interesting kind of.

Okay.

I don't know if you can hear me.

Partially because he got cut in the middle but I would try to articulate very articulate our particularly the first part of the question and then I will let Juan so.

Juan: With the acquisition of <unk>, we're playing again in Brazil, and I believe that.

Diego Tartara: Okay, and the second question is, this may be about Diego's comment with regard to increased complexity, I guess, that might apply to not just AI but to other projects as well. Your fixed price contracts are now 21% of total; a year ago, it was 17%. That's a pretty big jump in terms of how maybe you are engaging with your clients, or maybe your clients are engaging with you also. Could you provide, maybe, a deeper explanation of that trend?

Juan: That kind of things will keep on going and we'll keep an eye we will keep on insisting on on trying to expand our footprint in Latin America.

Yes, Latin America.

In my opinion it would be.

A very important place moving forward.

Juan: So again is not just.

Strategically speaking for the U S and.

And untapped still untapped plays in terms of delivery, but also a market that is improving a lot and that will keep on gaining strategic importance for <unk>.

For North America in General So I believe that Latin America is a central place not just for us to deliver but also to keep on evolving our business. So as you have seen.

Juan: For the whole for the whole world.

With the acquisition of <unk>, we're playing again in Brazil, and I believe that.

So I believe that that's.

Juan: Global sensor towards going on on a geopolitical way in the world.

That kind of things will keep on going and we'll keep an eye we will keep on insisting on on trying to expand our footprint in Latin America.

Juan: And we're very lucky to have.

Juan: This positioning, but we are taking advantage of that and we'll keep on investing and having an increasing our presence there or not but if you want to add anything into what I was going to say Latin America. It's.

Diego Tartara: Yeah, definitely. On many occasions, when we engage with a client, and especially when we have the re-invention studios, which now go deeper into the solutioning for different industries, we tend to repeat, Brown, and Joe Currie. Great, thank you.

So again, it's not just.

And untapped still untapped plays in terms of delivery, but also a market that is improving a lot and they will keep on gaining strategic importance for.

Juan: It's about 22% of our revenues when we look at Brazil and Mexico.

For the whole for the whole world.

Juan: Those are huge economies very very large markets and they're not even the biggest market for us within Latin America. So that means that the opportunity that we have to significantly expand our presence in the region.

So I believe that that's.

Tyler Dupont: Thank you. Thank you, Ashwin. The next question comes from Tyler Dupont from Bank of America. Tyler, please go ahead. Sorry Tyler, I think your line is muted.

Global sensor.

What's going on on a geopolitical way in the world and we are.

We're very lucky to have these.

<unk> positioning, but we are taking advantage of that and we'll keep on investing and having an increasing our presence there or not but if you want to add anything into.

Juan: There they are very large companies that are growing very very nicely.

Juan: Some of which you know we named during the during the earnings call, where we are really really performing very very well and we see the same needs on the same investment type of investments in those companies are the ones that where we are seeing in the U S and Europe. So we are very confident of our ability to grow.

Tyler Dupont: Oh, sorry about that. Is that better? It's been three years of Zoom, and I still can't figure it out.

What I was going to say Latin America.

22% of our revenues when we look at Brazil and Mexico.

Martín Migoya: Thanks. I'd be curious if we can just start by double-clicking on the types of conversations you guys are having with clients as we begin 2024, with respect to visibility, in particular with, you know, budgeting decisions, as we start to firm up for the beginning part of the year. You know, what are the types of projects that clients seem to be focusing on? And, and are there any particular call-outs worth mentioning? Yeah, I would take the first part.

Those are huge economies very very large markets and they are they are not even the biggest market for us within Latin America. So that means that the opportunity that we have to significantly expand our presence in the region is it are there. They are very large companies that are growing very very nicely.

Juan: In Latin America.

Speaker Change: Okay, and just a follow up is on gross margins.

Speaker Change: We've had some gross margin pressure through our calendar 'twenty three what should we look for in terms of gross margins in calendar 'twenty four.

Some of which we named during the during the earnings call, where we are really really performing very very well and we see the same needs on the same investment type of investments in those companies are the ones, where we are seeing in the U S. In Europe. So we are very confident of our ability to grow in la.

Speaker Change: And.

Speaker Change: I guess some of it obviously was FX headwinds related.

Speaker Change: Is that trend kind of reverse itself.

Speaker Change: Yeah, So no. Unfortunately.

Speaker Change: <unk>.

Speaker Change: In Colombia, the effects in Mexico.

Martín Migoya: So I'm seeing very, much more positive conversations than a year ago, and that's remarkable to see the difference between you know first quarter 2023 and first quarter 2024. So that's encouraging, and that keeps us excited about the opportunities moving forward. Projects are all over the place, from AI to you know metaverse or you know spatial computing and going to traditional digital transformation or optimizations.

Speaker Change: In Brazil, It continues to stay.

Speaker Change: Stable. So it's just not deteriorated further but the trend has not changed it's just staying with just where it was during Q3 and Q4. So we continue to have those headwinds in front of us.

In America.

Okay, and just a follow up is on gross margins.

We've had some gross margin pressure through our calendar 'twenty three.

We look for in terms of gross margins in calendar 'twenty four.

And.

Speaker Change: No.

Yes, some of it obviously was FX headwinds related.

Speaker Change: We expect this at this point, we expect our margins to be stable.

Has that trend kind of reverse itself.

Speaker Change: Relative to 2023 throughout 2024.

So no unfortunately.

Yes.

In Colombia, the effects in Mexico.

Martín Migoya: I mean, we're doing any kind of process in the four, you know, in the four studio networks. On the enterprise side, we see very good growth coming from Salesforce, from ERP re-implementation or transformation. We're seeing good things in the cloud migration space. Then, in the digital space, everything going from the traditional, you know, consumer engagement platforms to digital experiences going to AI, so on and so forth. On the create studio, we are moving forward very fast into pitching pretty much every single customer we have out of the 1600 customers we have. I'm pretty sure that we'll be able to cross-sell there, and indeed, as you have seen in our last presentation, we have been pushing a lot on cross-selling so we can go from one network to the other with pretty much all our customers, and that has been extremely important.

Speaker Change: Are you going to keep on using SG&A expense leverage to offset that just to protect your EBIT margins right. Yes, yes, I mean, there's always I mean as we.

In Brazil It continues to.

Stable. So it has not deteriorated further but the trend has not changed it's just staying with the trust where it was during Q3 and Q4. So we'll continue to curb those headwinds in front of us.

Speaker Change: I mean first of all we we.

Speaker Change: We will keep on investing to grow that's not going to change, but at the same time, we will do it in a healthy way protecting margins as much as we kind of soldiers.

No.

Speaker Change: And hopefully you know.

We expect this at this point, we expect our margins to be stable relative to 2023 throughout 2024.

Speaker Change: As the year progresses on the economy.

Speaker Change: Globally first year, delivering more optimist related to the future.

Speaker Change: Some base some additional pricing power.

And are you going to keep on using SG&A expense leverage to offset that just to protect your EBIT margins right. Yes, yes, I mean, that's always I mean, as we I mean first of all we we.

Speaker Change: To hopefully offset some of those FX headwinds we are seeing thank.

Thank you Youre welcome.

Speaker Change: Most importantly, thank you. Thank you Moshe. The next question comes from <unk> from Scotiabank. Please go ahead. Your line is open.

We will keep on investing to grow that's not going to change, but at the same time, we will do it in a in a healthy way protecting margins as much as we cannot soloist.

Speaker Change: Good evening everyone.

Speaker Change: Great quarter I wanted to actually get some color on the fixed price contract based on some of the discussions we've been having with your peers. It seems like there is increased focus in the industry.

I'm hopefully.

As the year progresses.

<unk>.

Globally sales figure deliveries more optimist.

Martín Migoya: And of course, the reinvention studios where we play in the airline space and the retail space, and the many different industries in which we play, we have seen demand in all of them. Talking about specific sectors that have been growing, one is healthcare or life sciences, the other one is retail, and the other one is travel and leisure. Those three sectors specifically have been pushing a lot during this quarter, during this last quarter, and last year, I would say in general. So overall, and then I'll let Diego go much more in depth about the type of projects, but overall, we see a much more positive environment than this same quarter last year. Just I would like to add to what Martn said, or maybe highlight, that there are two different things.

Related to the future.

Speaker Change: From a fixed price contract standpoint, if you could provide some color on that.

Some base some additional pricing power.

To hopefully offset some of those FX headwinds we are seeing thank.

Speaker Change: Yeah.

Speaker Change: It's exactly that.

Thank you Youre welcome.

Speaker Change: Fixed whenever we face a solution, where we have nice visibility we've done it before he tetra weakening nation those type of contracts without running into a huge risk.

Thank you. Thank you Moshe. The next question comes from <unk> from Scotiabank. Please go ahead. Your line is open.

Good evening everyone.

Great quarter.

Speaker Change: So we when we have the opportunity we think it's a very Ah.

Wanted to actually get some color on the fixed price contract based on some of the discussions we've been having with your peers. It seems like there is increased focus in the industry.

Speaker Change: Powerful instrument to gain acclaim and protect our margins as well so.

From a fixed price contract standpoint, if you could provide some color on that.

The <unk> studios, which are focused on gaining.

Speaker Change: Depth into different industries.

Yeah.

It's exactly that.

Speaker Change: Through focus on this and that's the increase you've seen you have seen again I think.

Fix whenever we face a solution, where we have nice visibility we've done it before he tetra weakening Asian, those type of contracts without running into a huge risk.

Martín Migoya: Conversations started to shift more into the revenue-generating side of things. During last year, there was a lot about, you know, grooming the operation, which is very good. That makes me actually very happy.

Speaker Change: I think in the total proportion we're talking about a few points.

Speaker Change: But I think it's a very good and healthy trend speaks about.

So we when we have the opportunity we think it's a very.

Speaker Change: The work they've been doing.

Powerful instrument to gain a claim and protect our margins as well so.

Speaker Change: With a different with a different client. These type typically these type of engagements are.

The <unk> studios, which are focused on gaining.

Speaker Change: Our.

Speaker Change: Very much transformational in many in many cases, we have a commitment towards what we deliver what.

Diego Tartara: And even when we're talking about the enterprise studio, we are now beginning to begin projects and discussions about full migration, like full migration to the cloud, updating, etc., which can be, as you know, very expensive and lengthy projects. So we are seeing the commitment and the investment on the longer term, more transformative side of things. Okay, that's very helpful.

Deb into different industries.

Full focus on this and that's the increase you've seen you have seen again I think.

Speaker Change: What we do and another has a second tier there has to do with their success.

I think in the total proportion we are talking about a few points.

Criteria of the project itself.

But I think it's a very good and healthy trend speaks about.

Speaker Change: Amira mute.

The work they've been doing.

Speaker Change: Okay.

Speaker Change:

With a different with a different client. These type typically these type of engagements are.

Amira: Thank you we.

Speaker Change: We will move onto the next question.

Speaker Change: All I know is just to keep.

Our.

Speaker Change: One question due to time constraint.

Very much transformational in many in many cases, we have a commitment towards what we deliver what.

Speaker Change: The next question comes from Sean Kennedy from Mizuho, Sean well.

Sean Kennedy: Welcome to your first earning calls and your line is open.

What we do in another.

Sean Kennedy: Great. Thank you.

A second tier that has to do with their success.

Sean Kennedy: Hi, everyone and thank you for taking my question. Thanks.

Diego Tartara: And just as a follow-up, I wanted to touch on what you guys mentioned regarding the sequential math, as we look through top line growth for 2024. Just based on some back of the envelope math here, it looks like the exit rate is somewhere in the 12 to 13% neighborhood, let's call it that.

Criteria of the project itself.

Sean Kennedy: So I wanted to ask about cobalt sports and media business can you discuss in some more detail as force opportunity specifically, how you attract new clients and Durably grow the business.

Amira mute.

Thank you.

Thank you we.

We will move onto the next question.

Sean Kennedy: In the media industry.

Sean Kennedy: As far as voice support for SAP.

All analysts just to keep.

One question due to time constraint.

Sean Kennedy: Sportswear has been extremely important.

Juan Urthiague: So how should we be reconciling that growth profile versus the historical commentary of that high teens 20% plus, just sort of any dynamics there? Yeah, you know, keep in mind that in the first part of the year, we're talking about growth of around 20% for both quarters. And then in the second half of the year, you know, we are trying to provide a number that will feel comfortable at the beginning of the year. But there's still a lot of uncertainties going on. And we didn't want to set the bar, you know, in a place that, you know, maybe, you know, depending on how the economy rolls and how the rest of the year turns out, would put us in a difficult situation.

The next question comes from Sean Kennedy from Mizuho, Sean well.

Sean Kennedy: We have been investing a lot in the in his space I believe that.

Welcome to your first earning calls and your line is open.

Sean Kennedy: There is an opportunity there not just to render services, but also to provide platforms and things that accelerate the solutions to our customers.

Great. Thank you.

Hi, everyone and thank you for taking my question. Thanks.

So I wanted to ask about Covance sports and media business can you discuss in some more detail of sports opportunity, specifically, how you attract new clients and durably grow the business.

Sean Kennedy: So.

Sean Kennedy: I believe the sport channel, which is one of the companies that we created associated with la Liga to be able to leverage that.

In the media industry.

Sean Kennedy:

Sean Kennedy: A very good bet into that space moving forward and by the way the performance that we have seen in that specific company has been.

For several quarters for sure.

Sports warehousing extremely important.

We have been investing a lot in the in his space I believe that.

Sean Kennedy: Pretty pretty rewarding to see how it grew and how we've been able to expand to other markets.

There is an opportunity there not just to render services, but also to provide platforms and things that accelerate the solutions to our customers.

Sean Kennedy: Not just to other markets, but also to other sports remembers fortune is born based on football, but also now we expanded into rugby into tennis into.

Juan Urthiague: So we're starting where we feel comfortable that we see the sequential growth being, you know, very reasonable. You know, when you look at the type of growth that is assumed on a sequential basis, it is quite reasonable, given our history. And that's how we ended up with, you know, I think, relative to the industry, a very strong year-over-year growth of 16.2%. Okay, great. Thanks guys. Appreciate the color.

No.

I believe the sport channel, which is one of the companies that we created associated with la Liga to be able to tolerate that.

Sean Kennedy: Into basketball.

Sean Kennedy: By the way, we added managing <unk> asset.

Sean Kennedy: One of our.

Sean Kennedy: Members of the board.

It's a very good bet into that space moving forward and by the way the performance that we have seen in that specific company has been.

Sean Kennedy: Sure.

Sean Kennedy: Our board of advisors.

Sean Kennedy: 14th so we see that on the football space, but also we see a big expansion into other into other sports.

Really really rewarding to see how it grew and how we've been able to expand to other markets.

Sean Kennedy: And and.

Sean Kennedy: Thats.

Sean Kennedy: That's nitro see also our partnership with FIFA Casper.

Not just where the markets are also two other sports remembers fortune.

Juan Urthiague: Thank you. Bye-bye. Bye-bye. Thank you, Tyler. Our next question comes from the line of Moshe Katri from Wetbush. Moshe, please go ahead. Hey, thanks, and uh... Congratulations on various accomplishments and Rick Martin. We cannot hear you. So a couple of things. No, we cannot hear you.

It has been instrumental in this idea of evolution.

Based on football, but also now we expanded into rugby into tennis into.

Sean Kennedy: In the end.

Sean Kennedy: And the space we're in.

Into basketball.

Sean Kennedy: Now working on FIFA, and FIFA, plus but in many other projects out kind of we're becoming a big partner for FIFA and many different aspects of technology creation. So once you have those anchor.

By the way, we added managing <unk> asset.

One of our.

Members of the board.

Hey.

Our board of advisors.

14th so we see that on the football space, but also we see a big expansion into other into other sports.

Sean Kennedy: Those anchor clients.

Moshe Katri: Sorry. This one, Martn, is more about strategy. You've clearly had exposure to Latin America.

Sean Kennedy: Being able to keep selling and keep on evolving into other places it's much easy so to your to your point of how to.

Moshe Katri: I think your numbers were last year. Yes. Can you hear me? Yes. Now you're back. Now you're back. We've got much to do, sorry. So, let me just restart. Can you hear me now?

And that.

That's nice to see also our partnership with FIFA Casper.

Sean Kennedy: Predict or how to have visibility into what's coming when you have those those customers just like me.

<unk> has been instrumental in this idea of evolution.

In the end.

Moshe Katri: Can you hear me? Yes. OK, so the first one is on strategy, and it seems that you're going to be investing a bit more in Mexico and Brazil. How big can this be for you guys? Maybe you can give us a feel here, just given the fact that Latin America as a continent is doing much better economically versus North America and Europe. And Latin America as a region actually had almost 20, and Rod Stoddard.

The space we're in.

Sean Kennedy: Much more easy than just having small customers here and there. So I believe that that's the core of what we do.

Now working on FIFA, and FIFA, plus but in many other projects out kind of we're becoming a big partner for FIFA in many different aspects of technology creation. So once you have those anchored.

Sean Kennedy: The outlook for what's coming in that specific space.

Sean Kennedy: Very good and their forecast of growth.

Those anchor clients.

Being able to keep selling and keep on evolving into other places it's much GC so to your to your point of how to.

Outpacing a little bit.

Sean Kennedy: Global <unk> grow as a company so we're very happy with that.

Sean Kennedy: So I don't know <unk> or quite a few words about something Angela.

Predict or how to have visibility into what's coming when you have those those customers is like <unk>.

Juan Urthiague: Yeah. So maybe some color on that because I think it's a pretty interesting kind of debate. I don't know if you can hear me, Moshe, because it got cut in the middle, but I would try to articulate the first part of the question, and then I will let Juan. So, Latin America, in my opinion, would be... Um, a very important place moving forward, strategically speaking, for the U.S. and for North America in general.

And just a just a small comment I think sports has been one of the industries that is has been absorbing technology.

Much more easy than just having small customers here and there so.

Sean Kennedy: Much faster lately.

That's the core of what we do and the.

Sean Kennedy: And if you see the opportunity how we being.

The outlook for what's coming in that specific space.

Sean Kennedy: Couldnt assuming sports.

Speaker Change: I think there is.

Very good and their forecast of growth at all.

Speaker Change: Huge huge opportunity.

Our pacing a little bit.

Speaker Change: We all tend to think the east Cana and in venue type of experience. If you look outside that how consumers.

Global <unk> grow as a company so we're very happy with that.

Juan Urthiague: So I believe that Latin America is a central place, not just for us to deliver, but also to keep on evolving our business. So, as you have seen with the acquisition of Iteris, we're playing again in Brazil. And I believe that that kind of thing will keep on going, and we'll keep on insisting on trying to expand our footprint in Latin America. So again, it's not just an untapped, still untapped place in terms of delivery, but also a market that is improving a lot and that will keep on gaining strategic importance for the whole world. So I believe that that's... to what's going on in a geopolitical way in the world. And we are very lucky to have this position, but we are taking advantage of that, and we'll keep on investing and increasing our presence there. Juan, if you want to add anything. No, what I was going to say is that in America, it's about 22% of our revenues. When we look at Brazil and Mexico, those are huge economies, very, very large markets, and they are not even the biggest market for us within Latin America.

So I don't know <unk> or quite a few words about something to that.

Speaker Change: Our funds are consuming data from home that ratio.

Just a just a small comment I think sports has been one of the industries that is has been absorbing technology mud.

Speaker Change: From the people that are physically there to the ones that are not is one too a lot depending on the type of venue. So we see a great opportunity to totally transformed that table experience. There is a lot of technology that can be reuse across many different sports.

Faster lately.

And if you see the opportunity how we being couldnt.

Consuming sports.

I think there is.

A huge huge opportunity.

We all tend to think the <unk> paydown in venue type of experience. If you look outside that how consumers. So how funds are consuming data from home that ratio.

Speaker Change: <unk> software.

Software.

Speaker Change: Specific player type of so for loyalty fan activation et cetera, so that set of reusable content is wood.

Speaker Change: When we take care within the studio, but then.

From the people that are physically there to the ones that are not is one too a lot depending on the type of venue. So we see a great opportunity to totally transformed that table experience. There is a lot of technology that can be reuse across many different sports.

Speaker Change: Doing the implementations on the different type of projects and customers again I think that.

What made us do that more and investment has to do with.

Speaker Change: The velocity of adoption and I think there is a lot to do on that industry.

Coach a.

Software.

Speaker Change: Great. Thanks for all the detail I appreciate it thank you for coordinating here.

<unk> <unk>.

Specific player type of Sohu or loyalty fan activation et cetera, so that set of reusable content is wood.

Speaker Change: Okay.

Speaker Change: Thank you Sean our next question comes from the lineup Arvin Romani from Piper Sandler your.

Hum.

Arvind Anil Ramnani: Your line is open. Please go ahead.

When we take care within the studio, but then.

Arvind Anil Ramnani: Thanks for thanks for taking my questions.

Doing the implementations on the different type of projects and customers again I think that.

Arvind Anil Ramnani: I just wanted to kind of see if you could unpack.

Juan Urthiague: So that means that the opportunity that we have to significantly expand our presence in the region is just there. There are very large companies that are growing very, very nicely, some of which we named during the earnings call, where we are really, really performing very, very well. And we see the same needs and the same type of investments in those companies that we are seeing in the U.S. and Europe. So we are very confident about our ability to grow in Latin America.

Arvind Anil Ramnani: Okay.

What made us do that more in investment has to do with the <unk>.

Arvind Anil Ramnani: How are you thinking about FY 'twenty four right because we certainly heard hernan.

Arvind Anil Ramnani: Thanks.

The velocity of adoption and I think there is a lot to do on that industry.

Speaker Change: That's organic.

Speaker Change: What's from kind of like.

Speaker Change: Latam headwinds from a currency headwind.

Great. Thanks for all the detail I appreciate it thank you for color.

Speaker Change: And then also like kind of expectations for additional M&A that you may do through the year. So when I think of late.

Okay.

Thank you Sean our next question comes from the line of urban Romani from Piper Sandler your.

Speaker Change: A pure organic growth.

Your line is open. Please go ahead.

Speaker Change: For for this year.

Thanks, Thanks for taking my questions.

Speaker Change: How should we think about that and then the follow up to that earlier.

I was just wondering kind of if you could unpack.

Kind of what needs to happen for you all to kind of come in to come in at the kind of the at least Nomura have come in well ahead of those.

Okay.

How are you thinking about FY 'twenty four right because we certainly heard hurdler firm.

Juan Urthiague: Okay, and just to follow up on gross margins. We've had some gross margin pressure throughout calendar 23. What should we look for in terms of gross margins on calendar 24? And, you know, I guess some of it obviously was FX headwinds.

Speaker Change: Number three.

Thanks.

What is organic what from a kind of.

Speaker Change: Yeah I'll take that.

Speaker Change: Questions.

Speaker Change: Starting the year regarding 16, 2% year over year.

Latam headwinds from a currency headwinds.

And then also like kind of expectations for additional M&A that you may do through the year. So when I think of late.

Speaker Change: Which I guess is already one of the strongest in the industry by the way.

Speaker Change: That is composed of about 10 ish percent of organic growth under risk coming from the deals that we closed during 2023.

A pure organic growth.

For for this year.

How should we think about that and then the follow up to that earlier.

Juan Urthiague: Has that trend kind of reversed itself? Yeah, so no, unfortunately, the effects, you know, in Colombia, the effects, in Mexico, in Brazil, it continues, you know, to, it's stable. So it has not deteriorated further, but the trend has not changed. It's just stable, just where it was during Q3 and Q4. So we continue to have those headwinds in front of us. And, you know, we expect, at this point, our margins to be stable relative to 2023 throughout 2024. And you're going to keep on using SG&A expense leverage to offset that just to protect your EBIT margins, right? Yeah, I mean, as always, you know, as we, I mean, first of all, we keep on investing to grow. That's not going to change.

Speaker Change: When you look at the sequential.

Kind of what needs to happen for you all to kind of come in come in at the kind of the at least Nomura are come in well ahead of those.

Speaker Change: Growth that we are proposing or forecasting now for the year.

Speaker Change: It implies.

Of that number by 300 rooms.

Speaker Change: Cortisol.

Speaker Change: Starting Q2 of 4% to 5% sequential growth.

I'll take the questions.

Started a year ago, and 16, 2% year over year.

Speaker Change: Basically is going to give us annual annualized number so.

Which I guess is already one of the strongest in the industry by the way.

Speaker Change: Around 20% when we look at that sequential growth.

That is composed of about 10 ish percent of organic growth on the risk coming from the deals that we closed in 2023.

Speaker Change: For us to take.

Speaker Change: Take that number up.

Speaker Change: Each one independently read on how the rest of the year voice in terms of economy as companies start to materialize.

When you look at the sequential.

Growth that we are proposing or forecasting now for the year.

Speaker Change: Some of those conversations.

Speaker Change: But we are having start to materialize more in Moreno.

It implies you know.

Speaker Change: Start to invest again in large capex projects and things.

<unk> of it.

Starting Q2 of 4% to 5% sequential growth.

Speaker Change: We are seeing a and <unk>.

Basically when I gave us annual annualized numbers off.

Speaker Change: Improvement relative to last year, but still.

'twenty versus around 20% when we look at that sequential growth.

Speaker Change: We believe that more can be done there right. So if those things happen.

Speaker Change: Interest rates start to come down.

For us too.

Take the number up.

Speaker Change: I think that going forward, we may start to see some acceleration in our business, but for the time being given those constraints.

Thank each one independently rhythm how the rest of the year Ross in terms of economy as companies start to materialize.

Some of those conversations.

Juan Urthiague: But at the same time, we will do it in a healthy way, protecting margins as much as we can, as always. And hopefully, you know, as the year progresses, and the economy, you know, globally starts to get a little bit more optimistic related to the future, some based on additional pricing power to hopefully offset some of those headwinds, so we are. Thank you. You're welcome, Moshe.

On the macro we'd prefer to provide what we feel comfortable.

But we are having start to materialize more in Moreno.

Speaker Change: But we believe it's still a very very good number.

Starting missed again in large capex projects.

Speaker Change: Terrific and if I could quickly follow up on that.

Things that we.

We are seeing.

Speaker Change: Lastly, you kind of wrapped out rapidly outlet roughly 11% and arguably like what we heard from you.

Improvement relative to last year, but still.

We believe that more can be done there right. So if those things happen.

If interest rates start to come down.

Speaker Change: On today's call.

Speaker Change: This is much better than last year. So it feels that there is a lot of conservatism built into this like 10% organic number.

I think going forward, we may start to see some acceleration in our business, but for the time being given those constraints on the on the macro we'd prefer to provide what we feel comfortable.

Juan Urthiague: Welcome. Thank you. Thank you, Moshe. The next question comes from Divya Goyal from Scotiabank. Divya, please go ahead. Your line is open.

Speaker Change: Right.

Speaker Change: Can you just comment on that.

Speaker Change: Numbers at 10%.

But we believe is still a very very good number.

Speaker Change: There is some level of conservatism built let me, let me try to address that point I think.

Terrific and if I could quickly follow up on that.

Divya Goyal: Good evening, everyone. Quick order. I wanted to actually get some color on the fixed price-to-price contract. Based on some of the discussions we've been having with your peers, it seems like there's increased focus in the industry from a fixed-price contract standpoint. If you could provide some color on that,

Lastly, you kind of wrapped out rapidly outlet roughly 11% and arguably like what we heard on.

Speaker Change: That.

Speaker Change: We're not being conservative.

Speaker Change: At this point of the year, we see optimism that doesn't mean that it will keep on translate into the rest of the year, because we don't know and basically there's a lot of uncertainty happening.

From Hugh.

On today's call.

This is much better than last year. So it feels that there is a lot of conservatism built into this like 10% organic number.

Speaker Change: Inflation.

Speaker Change: Just was higher than expected less month, I don't know where the interest rates going to go.

Bye bye.

Can you just comment on that look at these numbers and 10%.

Diego Tartara: It's exactly that. Whenever we face a solution where we have nice visibility, we've done it before, etc., we can engage in those types of contracts without running into a huge risk. So when we have the opportunity, we think it's a very powerful instrument to gain a client and protect our margins as well. So the re-invention studios, which are focused on gaining depth into different industries, have full focus on this, and that's the increase you have seen. Again, I think in total proportion, we are talking about a few points, but I think it's a very good and healthy trend. It speaks to the work they've been doing with different clients. Typically, these types of engagements are very much transformational.

Do you think that there's some level of conservatism built let me, let me try to address that point.

Speaker Change: So I think that we need to.

Speaker Change: Stellar we come.

Speaker Change: At this very beginning of the year to understand how the year will.

<unk>.

That we're.

Speaker Change: We'll debello.

We're not being conservative.

Speaker Change: <unk>.

Speaker Change: But again, we have a very good track record about trying to forecast you know.

At this point of the year, we see optimism that doesn't mean that it will keep on translate into the rest of the year, because we don't know and basically there's a lot of uncertainty happening.

Speaker Change: Whats going on whats going to be the.

Speaker Change: All of the year.

Speaker Change: And I believe this is not either conservative nor extremely.

Inflation.

Just was higher than expected last month, I don't know where the interest rates going to go.

Speaker Change: Extremely aggressive so we're trying to make that balance as we have been doing during the last 10 years as a public company. So I hope that explains a little bit but.

So I think that we need to.

Taylor, we come at this very beginning of the year to understand how the year will.

Speaker Change: But of course, we don't want to Miss any number.

Speaker Change: And we don't want to create any false expectations at this point of the year.

We will develop.

But again, we have a very good track record about trying to forecast.

Speaker Change: Terrific.

Speaker Change: One quick question on AI.

What's going on on what's going to be the.

Speaker Change: Selling out a lot of color.

All of the year.

Speaker Change: I will comment on the size of the projects.

And I believe this is not either conservative nor extremely.

Speaker Change: That you expect to see for 'twenty four I mean, you did indicate it may be larger but like.

Extremely aggressive so we're trying to make that balance as we have been doing during the last 10 years as a public company. So.

Diego Tartara: In many cases, we have a commitment to what we deliver, what we do. And another, it has a second tier that has to do with the success criteria of the project itself. Amir, Amir. Oh, sorry about that. A.M.

Speaker Change: And what kind of the kind of really start to move the needle.

Speaker Change: We have all our growth is still at about 25 dynamic with becomes much larger in size and scale or are you already it's already growing and it's already.

Hope that explains a little bit but.

But of course, we don't want to Miss any number.

And we don't want to create any false expectations at this point of the year.

Speaker Change: Pretty substantially.

Speaker Change: What portion of our business I mean.

Terrific.

Speaker Change: And it's pretty much involved in everything so where you've got the idea of this is a project where it's not it's everything more difficult because we are involved in pretty much everything with US are now having said that we have seen projects.

One quick question on AI.

Selling out a lot of color.

Diego Tartara: Thank you, Diego. We will move on to the next question. I would remind all analysts just to keep one question due to time constraints. The next question comes from Sean Kennedy from Mitsuho. Sean, welcome to your first earnings call, and your line is open. Great, thank you. Hi, everyone.

I will comment on the size of the projects.

That you expect to see for 'twenty four I mean, you did indicate it may be larger by plane.

Speaker Change: From several millions going up during this year.

And what kind of the kind of really start to move the needle.

Speaker Change: I don't think it's going to be the size of projects at least in the last quarters of at least up to.

Your order growth is that still like a 25 dynamic but it becomes much larger in size and scale or are you already it's already growing and it's already.

To the point of the last quarter of this year.

<unk> more than 10, 20 $30 million and then.

British fashion.

Diego Tartara: And thank you for my question. Thanks. So I wanted to ask about Globant's sports and media business. Can you discuss in some more detail a sports opportunity, specifically how you attract new clients and durably grow the business in the media industry?

What portion of our business.

Speaker Change: Moving forward, maybe the projects of hundreds of millions of dollars may come, but it will take a while until corporations digest and start to produce more demand around that.

AI is pretty much involved in everything so where you've got the idea of this is a project where it's not is every day more difficult because we are involved in pretty much everything with us. So now having said that we have seen projects.

Speaker Change: God knows blow on is absolutely ready to to to deliver on all of those projects.

From several millions going up during this year.

Diego Tartara: Sports has been extremely important, and we have been investing a lot in the space. I believe that there's an opportunity there, not just to provide services but also to provide platforms and things that accelerate the solutions to our customers. So I believe that Sportian, which is one of the companies that we created associated with La Liga, to be able to leverage that is a very good bet into that space moving forward. And by the way, the performance that we have seen in that specific company has been pretty rewarding to see how it grew and how it has been able to expand to other markets, not just other markets but also other sports. Remember, Sportian is born based on football, but we have expanded into rugby, into tennis, and into basketball.

And we have been investing a lot and we are.

I don't think it's going to be the size of projects at least in the last quarters of at least up to.

Speaker Change: Keep on investing a lot in that space.

Speaker Change: So our leadership position will be undisputed, we'll be announcing big partnerships moving forward and.

To the point of the last quarter of this year.

<unk> more than 10, 20 $30 million and then.

Speaker Change: I think that that's something that will keep on being a central part of our offering as it is today.

Moving forward, maybe the projects of hundreds of millions of dollars may come, but it will take a while until corporations digest and start to produce more demand around that.

Speaker Change: All the customers that we have.

Speaker Change: <unk> hundred customers all of them need what we do on the AI space and of course, we need to leverage all the tools that are out there.

God knows blow on is absolutely ready to to to deliver on all of those projects.

Speaker Change: To be able to provide comprehensive solution to those thanks, primarily to complement that arvind.

And we have been investing a lot and we are.

Keep on investing a lot on that space.

It's becoming hard to see projects that don't.

So our leadership position will be undisputed, we'll be announcing big partnerships moving forward and.

Not have any component now of a full AI project some of them, yes. Some of them now, but there is always a component here and there that is part of most of the projects that are being discussed as we speak yes and also also also they are adding a lot of.

I think that that's.

Something that will keep on being a central part of our offering as it is today.

All the customers that we have.

Diego Tartara: By the way, we added Manu Ginobili as one of our members of the Board of Advisors in Sportian. So we see that in the football space, but we also see a big expansion into other sports. And that's nice to see. Also, our partnership with FIFA has been instrumental in this idea of evolution in the space. We're now working on FIFA Plus, but in many other projects now, we are becoming a big partner for FIFA in many different aspects of technology creation.

<unk> hundred customers all of them need what we do on the AI space and of course, we need to leverage all the tools that are out there.

A lot of things to the projects that were not present before from.

Speaker Change: From data digestion to data analytics to understand more and those projects that before were no kind of phrase now theyre reviving and they are kind of.

To be able to provide comprehensive solution to those thanks, primarily to complement that arvind.

It's becoming hard to see projects that do not have any component now of a full AI project. Some of whom you have some of the note, but there is always a component here and there that is part of most of the projects that are being discussed as we speak yes and also also also they are adding a lot of.

Speaker Change: Ah.

Speaker Change: In a new in a new era of <unk>.

Speaker Change: Development because.

Speaker Change: As needed for the AP for implementing AI right. So that's something that we have seen in the past quarters and we can keep on seeing it and I think it will keep on growing and moving forward.

Diego Tartara: So once you have those anchor clients, being able to keep selling and keep on evolving into other places is much easier. So to your point of how to predict or how to have visibility into what's coming, you know, when you have those customers, it's much easier than just having small customers here and there. So I believe that's the core of what we do, and the outlook for what's coming in that specific space is very good, and the forecast of growth is outpacing a little bit Globant's growth as a company, so we're very happy with that. So I don't know Diego or Juan if you want to add something to that.

A lot of things to the projects that were not present before.

Speaker Change: Perfect. Thank you so much.

From data digestion to data analytics to understand more and those projects that before were no kind of phrase now theyre reviving and they are kind of.

Speaker Change: Thank you <unk>.

Speaker Change: Thank you Irvin.

Speaker Change: The next question comes from the line of Ryan Bergan from TD Cohen, Brian. Please go ahead.

Bryan C. Bergin: Hey, guys good to see I.

Bryan C. Bergin: I guess my question is on the first quarter and maybe following up for some more color here and as we think about as you go from <unk> to <unk> can you just comment on whether there are any particular verticals or large client considerations that are driving that modest quarter over quarter decline just trying to think of is there any aspect of works like the timing of work.

<unk>.

In a new era of <unk>.

Development, because it's needed for the AP for implementing AI right.

No.

That's something that we have seen in the past quarters, and we can keep on seeing it and I think it will keep on growing and moving forward.

Perfect. Thank you so much thank.

Bryan C. Bergin: <unk> pushed out.

Bryan C. Bergin: Part of it I mean, the decline is mainly explained as I mentioned before by one of our licensees are recovering in Q4 are not happening into Q1 and the impact of.

<unk>, Okay. Thank you Irvin.

Diego Tartara: Just a small comment. I think sports has been one of the industries that has been absorbing technology much faster lately. And if you see the opportunity, how we've been consuming sports, I think there's a huge, huge opportunity. We all tend to think, you know, the in-stadium, in-venue type of experience.

Excuse me. The next question comes from the line of Bryan Bergin from TD Cohen, Brian. Please go ahead.

Hey, guys good to see I.

I guess my question is on the first quarter and maybe following up for some more color here as we think about as you go from <unk> to <unk> can you just comment on whether there are any particular verticals or large client considerations that are driving that modest quarter over quarter decline just trying to think of is there any aspect of works like the timing of work.

Bryan C. Bergin: The depreciation of the Argentinian currency it happened it was 120% depreciation on carbon in December.

Bryan C. Bergin: Basically that had an impact on those contracts that are.

Bryan C. Bergin: In pesos.

Bryan C. Bergin: They have indexes, but they go over time until we can recover are basically the same level of revenues that you had before and then on other cases that are in dollars. We have seen some customers coming approaching door, saying, hey, guys I cannot say, 120% more tomorrow. So we had to engage in the conversations.

Diego Tartara: If you look outside that, how consumers, how fans are consuming it from home, that ratio, you know, from the people that are physically there to the ones that are not, is one to a lot, depending on the type of venue. So we see a great opportunity to totally transform that type of experience. There's a lot of technology that can be reused across many different sports, coach software, specific player types of software, loyalty and fan activation, etc.

Being pushed out yes.

Part of it I mean, the decline is mainly explained as I mentioned before by one of our licensees are recovering in Q4 that are not happening into Q1 and the impact of.

The depreciation of the Argentinean currency.

Bryan C. Bergin: Into negotiations to somehow apply those increases.

It was 120% depreciation of carbon in December.

Bryan C. Bergin: Over time right. So the impact of that is a much lower revenue for those argentinian customers into Q1.

Basically that had an impact on those contracts that are.

Diego Tartara: So that set of reusable content is what we take care of within the studio, but then doing the implementations on the different types of projects and customers. Again, I think that what made us do that more in terms of investment has to do with the velocity of adoption. And I think there's a lot to do on that end.

In pesos.

They have indexes, but they go over time until you recover on basically the same level of revenues that you had before and then on other cases that are in dollars. We have seen some customers coming approaching door, saying, hey, guys I cannot say, 120% more tomorrow. So we had to engage in the conversations.

Bryan C. Bergin: Most of our like the highlight the main negatives we are expecting.

Bryan C. Bergin: Some positive impact also coming from the acquisitions that we do but all in all that gives us at around $570 million sequentially to 1.18% down, but when you look at it year over.

Bryan C. Bergin: Our year level, we're talking about 27% and 27% year over year as one of the strongest numbers in the last several quarters. Let me correctly is that the strongest the strongest number.

Into negotiations to somehow.

Diego Tartara: I appreciate it. Thank you for calling. Thank you. Thank you, Sean. Our next question comes from the line of Arvind Ramnani from Piper Sandler. Arvind, your line is open. Please go ahead.

Those increases.

Over time right. So the impact of that is a much lower revenue for those argentinian customers into Q1.

Speaker Change: All our peers and everybody, but anyway okay.

Those words.

The main negatives we are expecting.

Arvind Anil Ramnani: Yeah, thanks. Thanks for taking my questions. You know, I just want to kind of see if you could, you know, in fact, kind of, you're thinking about FY 24, right? Because we certainly heard a lot of things that you know, what's organic, what's from kind of late-term headwinds from currency headwinds. And then also like, you know, kind of expectations for additional M&A that you may do through the year. So when I think of, you know, kind of like, pure organic growth for this year, how should I think about that?

Speaker Change: Okay I appreciate the color. Thank you. Thank you Brian.

Some positive impact also coming from the acquisitions that we do but all in all that gives us at around $570 million.

Speaker Change: Right.

Speaker Change: Thank you Brian.

Speaker Change: Next question comes from the lines of Maggie Nolan from William Blair Maggie. Please go ahead.

Sequentially each of 1.18% down, but when you look at it.

Speaker Change: Yes.

Maggie Nolan: Hi, How's it going.

Year over year level, we are talking about 27%.

Maggie Nolan: Congrats on 20 years, and crossing 2 billion, that's pretty great to see.

27% year over year as one of the strongest numbers in the last several quarters. Let me correct. It is not the strongest number is the strongest number.

Maggie Nolan: Yes.

Maggie Nolan: So number one from me.

Maggie Nolan: That's my question number three.

Maggie Nolan: Now.

Maggie Nolan: So on <unk>, what's your appetite in 2024 for M&A. It was obviously an important part of our strategy and this past year curious how youre thinking about future acquisitions, what at this scale do you define as a tuck in versus the more large scale acquisition.

All our peers and everybody, but anyway okay.

Okay I appreciate the color. Thank you. Thank you Brian Thank you.

Right.

Thank you Brian. The next question comes from the lines of Maggie Nolan from William Blair. Maggie. Please go ahead.

Juan Urthiague: And then the follow-up to that really is, kind of what needs to happen for you all to kind of come in and come in at the kind of the least number or come in well ahead of that number by three, four hundred. Yeah, I'll take the question. So, you know, we started the year guiding 16.2% year over year, which I guess is probably one of the strongest in the industry, by the way. That is composed of about 10% of organic growth and the rest coming from the deals that we closed in 2023. When you look at the sequential growth that we are proposing or forecasting as of now for the year, it implies, you know, quarters of... starting Q2 of 4% to 5% sequential growth, that basically is gonna give us annualized numbers of around 20% when we look at that sequential growth.

Hi, How's it going.

Maggie Nolan: And what are you evaluating in the market.

Congrats on 20 years, and crossing 2 billion, that's pretty great to see.

Maggie Nolan: Our pipeline is strong and we always see companies that can fit and complement what we do on my end.

So number one from me.

That's my question number three now.

Maggie Nolan: I believe that will keep on taking a look at companies.

So on <unk>, what's your appetite in 2024 for M&A. It was obviously an important part of the strategy and this past year curious, how youre thinking about future acquisitions.

Maggie Nolan: I believe we did a very strong effort last year to increase our.

Maggie Nolan: Our digital marketing space and.

Maggie Nolan: It's called <unk> and create.

Not at this scale do you define as a tuck in versus a more large scale acquisition and what are you evaluating in the market.

Maggie Nolan: I see this year more going to be sent to the center of our business rather than keep on expanding.

Maggie Nolan: So I see things happening there.

Our pipeline is strong and we always see companies that can fit and complement what we do on my end.

Maggie Nolan: Although we may have also.

Maggie Nolan: Tuck in acquisitions always here.

I believe that will keep on taking a look at companies.

Maggie Nolan: Here and there.

Maggie Nolan: But.

Maggie Nolan: I believe that the strategy for this year and.

I believe we did a very strong year for last year to increase our.

Maggie Nolan: <unk> has grown mainly organically.

Our digital marketing space and.

Maggie Nolan: And this is a very important point to make.

Juan Urthiague: For us to, you know, take the number up, I think it's going to depend a little bit on how the rest of the year goes in terms of the economy. If companies start to materialize, some of those conversations that we are having start to materialize more and more, they start to invest again in large CapEx projects and things like that. We are seeing an improvement relative to last year, but still, you know, we believe that more can be done there, right? So if those things happen, you know, if interest rates start to come down, I think that going forward, we may start to see some acceleration in our business.

Maggie Nolan: But we always see companies because this game is about 1600 customers we have.

It's called <unk> and create.

I see this year more going to be sent to the center of our business rather than keep on expanding.

Maggie Nolan: It's about how we can provide to them.

Maggie Nolan: Yes.

So I see things happening there.

Maggie Nolan: As many services as possible connected to what we do which is technology and technology is.

Although we may have also.

Tuck in acquisitions always.

Maggie Nolan: Invading pretty much every aspect of the company. So we need to be able to keep on expanding as technology evolves into more and more places so.

Here and there.

But I believe that the strategy for this year and.

Global has grown mainly organically.

Maggie Nolan: We cannot pretend to be good at 100% of the thing so sometimes we need to do those tuck in acquisitions to acquire new abilities. We didn't have before and that's a very good use of capital at a very good use of money. We have demonstrated that in the past. So we hope we can keep on demonstrating that to the future now do you think how much I don't.

And this is a very important point to make.

But we always see companies because this game is about 1600 customers we have.

It's about how we can provide to them us.

Martín Migoya: But for the time being, given those constraints on the macro, you know, we prefer to ride what we feel comfortable with, which we believe is still a very, very good number. Terrific, and if I could quickly follow up on that, you know, last year, you kind of wrapped up the year at roughly 11%, and, arguably, like, you know, what we heard from you on today's call, this is much better than last year. So it feels like there's a lot of conservatism built into this, like, you know, the 10 percent organic number.

As many services as possible connected toward with it which is technology and technology is.

Maggie Nolan: No.

Maggie Nolan: I think for <unk>, it's around 5% for our sites.

Invading pretty much every aspect of the company. So we need to be able to keep on expanding as technology evolves into more and more places so.

Maggie Nolan: And this is so far away.

Maggie Nolan: We've never learn.

Maggie Nolan: More than 5% of our size about pointing back. So that's how we will define per game.

We cannot pretend to be good at 100% of the thing so sometimes we need to do those tuck in acquisitions to acquire no liabilities, we didn't have before and that's a very good use of capital in a very good use of money. We have demonstrated that in the past. So we hope we can keep on demonstrating that to the feature now do you think how much.

Maggie Nolan: Yeah.

Speaker Change: Alright, Thank you very much and goodbye. Thank you. Thank you Mike.

Speaker Change: Thank you very much our last question comes from the line of Surinder Singh from Jefferies. Sir. Please go ahead. Your line is open.

Surinder Singh Thind: Thank you.

No.

Surinder Singh Thind: I guess from my perspective, I'd like to focus on organic growth here.

If our team for our financials.

Martín Migoya: But but but can you just comment on that? Look at these numbers and 10 percent. And do you think there's some level of conservatism built in?

One 5% for our sites.

Surinder Singh Thind: As I think about commentary.

And this is so far away.

We've never learn more than 5% of our size about pointing back. So that's how we will define per game.

Surinder Singh Thind: A quarter ago, maybe a bit before that when I look at where organic growth is at this point in terms of your expectations.

Martín Migoya: Let me try to address that point. I think that we are not being conservative. At this point in the year, we see optimism, but that doesn't mean that it will keep on translating to the rest of the year because we don't know and basically there's a lot of uncertainty happening. It was higher than expected last month. I don't know where the interest rate's going to go.

Yes.

Yeah.

Surinder Singh Thind: Italy come down can you talk about that.

Alright, Thank you very much thank.

Thank you. Thank you. Thank you. Thank you Mike thank.

Surinder Singh Thind: Whats, causing that because it seems like the environment has actually gotten better.

Thank you very much our last question comes from the line of Surinder Singh from Jefferies. Sir. Please go ahead. Your line is open.

Surinder Singh Thind: And so in 2023 it was a great year or are you guys significantly outperformed all of our competitors, but that spread between your organic growth and what others are forecasting is has started to compress.

Thank you.

I guess from my perspective, I'd like to focus on organic growth here.

Martín Migoya: So, I think that we need to stay a little bit calm at this very beginning of the year to understand how the year will develop. But again, we have a very good track record of trying to forecast what's going on and what's going to be the outlook for the year. And I believe this is neither extremely conservative nor extremely aggressive.

Surinder Singh Thind: Less than <unk>.

As I think about commentary.

Speaker Change: I don't know what numbers are you seeing but.

A quarter ago, maybe a bit before that and I look at where organic growth is at this point in terms of your expectations. It has steadily come down can you talk about that.

Speaker Change: I don't see that compressing at all.

Speaker Change: Now when we're looking at for example, this morning.

Speaker Change: We also reported about 25.

Speaker Change: Percent yearly growth.

What's causing that because it seems like the environment has actually gotten better.

Speaker Change: Talking about <unk> 16, which is about 10 around 10 pension organic so let's see.

And so in 2023 it was a great year or are you guys significantly outperformed all of our competitors, but that spread between your organic growth and what others are forecasting is has started to compress.

Speaker Change: Still much much bigger, but in any case I think that.

Martín Migoya: So we're trying to strike that balance, as we have been doing during the last 10 years as a public company. So I hope that explains a little bit. But, of course, we don't want to miss any numbers, and we don't want to create any false expectations at this point in the year.

Speaker Change: We need to see how again.

Speaker Change: People are talking about.

Speaker Change: Our interest rate decreasing March now it seems there's not going to happen.

Less than <unk>.

I don't know what numbers are you seeing but.

Speaker Change: There is some more positive tone in terms of conversations clearly, but I think we're going to control how.

I don't see that compressing at all.

Now when we're looking at for example, this morning.

Speaker Change: People will change completely the mine them become very optimist over the future and I'm talking about growth again.

They are supported about half.

<unk>.

Martín Migoya: Terrific. And just one quick question on AI. You suddenly got a lot of color, but are you able to comment on the size of the projects that you expect to see for 24? I mean, you did indicate it may be larger, but like, at what point does it kind of really start to move the needle for overall growth? Is it still like a 25 dynamic, but it is much larger in size and scale?

Growth and we are talking about 16, which is about 10 around 10 peniche organic so let's.

Speaker Change: And as such we have to provide numbers that we feel comfortable that we can achieve and we need to assume.

Still much much bigger, but in any case I think that.

Speaker Change: Where you have the average of all our peers.

We need to see how again.

People are talking about.

But I guess ultimately would you disagree with the statement that your organic growth expectations have come down over the past quarter or two.

Our interest rate decreasing March now it seems there's not going to happen.

There is some more positive tone in terms of conversation clearly I don't think.

Speaker Change: Well I mean, the market was expecting a bigger number back in November I think that everybody was expecting the economy also please.

We're going to control the know how and when.

We will change completely the mind them become very optimistic for the future and I'm talking about growth again.

Speaker Change: Again, much stronger by now with interest rates coming down that hasnt happen inflation yesterday came above where people were expecting so again.

And as such we have to provide numbers that we feel comfortable that we can achieve and we believe his team.

Martín Migoya: It's already growing, and it's already, you know, pretty substantial. It's a good portion of our business. I mean, AI is pretty much involved in everything.

Where you have the average of all our peers.

Speaker Change: We think that starting the 10% plus organic growth.

Martín Migoya: So where you get the idea that this is an AI project, where it's not, it's everything more difficult because it's involved in pretty much everything. So now, having said that, we have seen projects, you know, from several millions going up during this year. I don't think it's going to be the size of projects, at least in the last quarters of this year, at least at the point of the last quarter of this year, projects more than $10, $20, $30 million. And then moving forward, maybe projects of hundreds of millions of dollars may come, but it will take a while until corporations digest and start to produce more demand around that.

But I guess ultimately would you disagree with the statement that your organic growth expectations have come down the past quarter or two.

Speaker Change: <unk> is a very good number of course, we would like to move much more than that.

Speaker Change: We would like to 2025, whatever but that's what we come we come.

Well I mean, the market was expecting a bigger number back in November I think that everybody was expecting the economy also to me.

Speaker Change: Guide and responsibly at the beginning of the year.

Speaker Change: Sure.

Speaker Change: Okay now Thats fair I don't disagree I mean, 10% is an excellent number and the environment. It was just on.

Again, much stronger by now with interest rates coming down that hasnt happen inflation yesterday came above where people were expecting so again.

Speaker Change: On a relative basis.

Speaker Change: And again, we're starting the year.

Speaker Change: At the moment to what just any expectation and to be able to.

We think that starting the 10% plus organic growth.

Speaker Change: Generate.

<unk> is a very good number of course, we would like to hold much more than that.

Speaker Change: The space for us to keep on growing right.

We would like to through 2025, whatever but that's what we come we come.

Speaker Change: This is what we have been doing in every single quarter since the last.

Speaker Change: Many many years so.

Martín Migoya: The good news is that Globant is absolutely ready to deliver on all those projects, and we have been investing a lot, and we will keep on investing in that space, so our leadership position will be undisputed. We'll be announcing big partnerships moving forward, and I think that that's something that will keep on being a central part of our offering as it is today to all the customers that we have. 1600 customers, all of them need what we do in the AI space, and of course, we need to leverage all the tools that are out there to be able to provide comprehensive solutions to those things. Maybe, you know, to complement that, Arvind, you know, it's becoming hard to see projects that do not have an AI component. Now, are they a full AI project? Some of them yes, some of them no, but there is always a component here and there that is part of most of the projects that are being discussed as we speak.

Guide and responsibly.

Speaker Change: A.

Speaker Change: Strong belief strongly believe that we may surpass that number.

Sure.

Okay. No. That's fair I don't disagree I mean, 10% is an excellent number and the environment. It was just on.

Speaker Change: But this is what we want to guide at this very moment and by the way on your comment.

On a relative basis.

And again, we're starting the year.

Speaker Change: I totally agree that.

Speaker Change: There's a lot of the competitors out there.

Is the moment to what just any expectation and to be able to <unk>.

Speaker Change: I still believe we have the best in class and by far.

<unk> generated.

Both.

The space for us to keep on growing right and this is what we have been doing in every single quarter since the last.

Speaker Change: Proposed for 2024.

Speaker Change: So even on the organic growth side.

Speaker Change: I believe that we will keep on delivering that.

Many many years so.

Our strong belief strongly believe that we may surpass that number.

Speaker Change: Differential performance characterized global in the past.

But this is where we want to guide at this at this very moment and by the way on your comment.

Speaker Change: So.

Speaker Change: Okay. Thank you I mean, no disagreement that you guys are definitely up.

I totally agree that.

The highest are the strongest.

There's a lot of the competitors out there.

Speaker Change: Four.

Speaker Change: 2024, so thank you.

Martín Migoya: Yeah, and they are also adding a lot of... You know, a lot of things to the projects that were not present before, from data digestion to data analytics to understand more. And those projects that before were no kind of friends, now they are reviving, and they are kind of, you know, in a new era of development because it's needed for implementing AI, right? So that's something that we have seen in the past quarters, and we can keep on seeing it, and I think it will keep on growing moving forward. Thank you so much.

I still believe we have the best in class and by far.

Speaker Change: And as Linda and thank you Sir.

Speaker Change: Okay.

Both.

Speaker Change: Thank you surrender that will conclude the Q&A session for today. Thank you all for joining the call I will now ask Martin to provide some closing comments. Please go ahead Martin.

Proposed for 2024.

So even on the organic growth side.

I believe that we will keep on delivering that.

Martin: Thank you so much.

Martin: Thank you everyone for participating here.

Differential performance that characterized global in the past.

Martin: We're really happy about our performance 2023, and the outlook for 2024 and are really looking for.

So.

Okay. Thank you I mean, no disagreement that you guys are definitely up.

Martin: Two.

Martin: Keep on talking on the next quarters and thank you for your support and for patients and for your understanding. Thank you bye bye.

The highest or the strongest outlook for <unk>.

2024, so thank you.

Martin: Hi.

Everything is there.

Martin: Yeah.

Thank you sooner that will conclude the Q&A session for today. Thank you all for joining the call I will now ask Martin to provide some closing comments. Please go ahead Martin.

Martín Migoya: Thank you. See you. Bye. Thank you, Arvind. The next question comes from the line of Bryan Bergin from TD Cohen. Bryan, please go ahead. Hey, guys, good to see you. I guess my question is about the first quarter and maybe following up for some more color here. And as we think about it, as you go from 4Q to 1Q, can you just comment on whether there are any particular verticals or large client considerations that are driving that modest quarter over quarter decline? Just trying to think, is there any aspect of work, like the timing of work getting pushed out?

Hey, Thank you so much.

Thank you everyone for participating here, we're really happy about our performance 2023, and the outlook for 2024 and are really looking for.

Martin: Sure.

Two.

Keep on talking on the next quarters and thank you for your support and for your patience and for your understanding. Thank you bye bye.

Hi.

Yeah.

Martin: Okay.

Martin: [music].

Sure.

Martin: Okay.

Okay.

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Martin: Yes.

Martin: [music].

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Martin: Sure.

Yes.

Martin: Both.

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[music].

Yeah.

Martin: Okay.

Yeah.

[music].

Juan Urthiague: Yeah, part of the decline is mainly explained, as I mentioned before, by the one-off licenses that we had during Q4 that are not happening again in Q1. And the impact of the depreciation of the Argentinian currency that happened. It was 120% depreciation in December. Basically, that had an impact on those contracts that are in pesos, that they have indexes, but they go over time until you recover, basically, the same level of revenues that you had before. And then on other cases that are in dollars, we have seen some customers come in, approach us, and say, hey, you know, guys, I cannot pay 120% more tomorrow. So we have to engage in conversations, into negotiations to somehow apply those increases over time, right? So the impact of that is a much lower revenue for those Argentinian customers in Q1. Those are the main negatives.

Martin: When asked Hey.

Martin: Hi, everyone how are you.

Martin: Uh-huh Spanish.

Martin: I wasn't paying attention.

Yes.

Martin: So welcome to the second session of these giammarco come in if you like to Goad you are in the right place.

[music].

Martin: So.

Sure.

Martin: This second session, we're going to be talking about we're going to be doing more refractory.

This audio book on Amazon have made me over $20000 and I didn't even make it myself I just uploaded it and now I get paid whenever somebody downloads. It from Amazon practically anyone can do this and maybe an extra few thousand dollars. Every single month, you can do in your spare time and there is no special experience or text.

And in this particular session, we're going to be talking about.

Martin: How we can use the solid principles when we used when we the refractory and as always we will be doing live coding, which is the thing that we like to do the most.

Just a laptop and a willingness to follow simple instructions at that time give me two minutes and I'll show you how it work I'm Charlotte and we have everyday people make more money, but also getting your time back. So you can do more of what you love doing and the way. It works is simple nice people associate Amazon with physical products, but our new method of uploading.

Martin: So.

Speaker Change: Why don't we jump into the presentation.

Speaker Change: <unk>.

Speaker Change: We will be speaking a little bit about the solid refractory essentials.

Juan Urthiague: We are expecting some positive impact also coming from the acquisitions that we did. But all in all, that gives us around $570 million, which, you know, sequentially, it's 1.8% down. But when you look at it on an annual-over-year level, we are talking about 20.7%.

Amazon has none of the competition of physical products, we've take a hot topic on Amazon then get a short alibaba created on that topic, using AI or ghostwriter.

Speaker Change: Alright.

Speaker Change: So one of the best moments due to re factoring is when we have a piece of legacy code.

Here is the quality applauded as an E book and an audio book in a very specific way signals Amazon to sell it for US and this is the most important part that most people overlook because ebooks and audio books are digital they can be sold an unlimited amount of time. So just one audio book has massive earning potential.

Speaker Change: It needs to be modified in order to add new features right.

Juan Urthiague: And 20.7%, you know, year-over-year, is one of the strongest numbers in the last several quarters. Let me correct you. It's not the strongest number, but the strongest number of all our peers and everybody.

Speaker Change: So sometimes it's hard to find the time to actually modify legs.

Speaker Change: Legacy code because.

Speaker Change: Usually if it is working you don't want to touch it and you don't want to.

Juan Urthiague: But anyway, I appreciate the call. Thank you. Thank you, Bryan. Thank you. Thank you, Bryan. The next question comes from the lines of Maggie Nolan from William Blair. Maggie, please go ahead. Hi, how's it going?

You can all the time and just an hour a day and with no special skills or experience I am sorry. This is my own mom and now she covered most of our living expenses just a few audio books.

Speaker Change: Look at.

Speaker Change: Actual.

Speaker Change: You don't want to spend time.

Speaker Change: Fixing something that is still working so so you want to.

Better than getting a second John to make more money my husband Christian who is the one that discovered this audio book system.

Have a reason to actually modify it.

Juan Urthiague: Hey, Marty. Congratulations on 20 years and crossing two billion. That's pretty great to see. Yeah. Just one from me.

Speaker Change: And.

Retraining that you can attend right now when you click the link below inside you'll see step by step exactly how to earn from uploading audiobooks and getting Amazon to sell them for you you can rinse and repeat this process as much as you want so let's say you have done and how much you make is up to you click the button on this video to ask.

Speaker Change: A good reason to do this.

Speaker Change: Is.

Juan Urthiague: So on your pursuit to three, what's your appetite in 2024 for M&A? It was obviously an important part of the strategy this past year. Curious how you're thinking about future acquisitions. What, at this scale, do you define as a tuck in versus a more large-scale acquisition, and what are you evaluating in the market?

Speaker Change: We have to.

Speaker Change: I'm sorry, so one of the one of the reasons. We wanted to do this is because.

Speaker Change: We want to have some time to actually modify their goal that we're working on so if we want if we have to find that time and the resources to work on code.

Mr Free training and get started now.

Yes.

Okay.

Juan Urthiague: Yeah, our pipeline is strong, and we always see companies that can fit and complement what we do. And I believe that we'll keep on taking a look at companies. I believe we made a very strong effort last year to increase our digital marketing space and what it's called Globant Create. I see this year more going to the center of our business, rather than keeping on expanding. So I see things happening there. Although we may have also... Tucked in acquisitions here and there, but I believe that's the strategy for this year. Globant has grown mainly organically, and this is a very important point to make, but we always see companies because this game is about these 1,600 customers we have.

Speaker Change: The best way to annuities, when we have to add new features to it and also adding new features to the code.

Okay.

Speaker Change: We'll help you too.

Similarly, this is Neil heartburn.

Speaker Change:

To meet with you to discuss U K.

Speaker Change: We're adding new features to the gold.

Speaker Change: We'll help you justify the time.

With the prosecution has its pretty damning.

Speaker Change: Because adding new features to go there is no. Good it takes a lot of time, but if you can improve the code than adding new features to it will be easy.

I know that you have and offer details so don't leave anything out.

She was regardless when they are <unk>. So you believe this guy.

That's why we do these and remember if.

Speaker Change: If you haven't watched the last session you can always watch the last session in.

<unk> seen anything like it you always go with your gut.

This is my life and the Toronto ruling.

Speaker Change: Sure.

Speaker Change: In the there is a link that we're going to be sending we're going to share with you where you can watch the previous sessions and.

Your references iron Malloy, Okay alright.

First we're producing.

Speaker Change: The last session, we talked about how we can create tests to refractor in these.

<unk> you.

Juan Urthiague: It's about how we could provide them with as many services as possible connected to what we do, which is technology and technology is invading pretty much every aspect of the company, so we need to be able to keep on expanding as technology evolves into more and more places. So, we cannot pretend to be good at 100% of the things, so sometimes we need to do those TAC-IN acquisitions to acquire new abilities we didn't have before, and that's a very good use of capital, a very good use of money. We have demonstrated that in the past, so we hope we can keep on demonstrating that in the future. Now, if you ask me how much, I don't know. TAC-IN for us is still around 5% of our size, and so far, we've never done anything more than 5% of our size at that point in time, so that's how we would define TAC-IN.

Is Florida.

Speaker Change: New session, we're going to be using the solid principles to factor.

Yeah.

And your attorney I am not sure frame here.

Like the pull my hair and makeup.

Speaker Change: Alright, So we were talking about.

He was sadistic entrepreneurial losses through pleasure on homeowners choice.

Speaker Change: Doing these refractory in here and what we want to do is we want to use the solid principles to guide us.

Good evening.

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Okay.

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Speaker Change: And in the refractory in process.

The <unk> program.

Speaker Change: So.

Right.

Speaker Change: Why why would we use every fact solid principles and what are the solid principles.

Someone has been hovering of evidence.

Speaker Change: So the solid principles are.

<unk>.

Why would you leave a quote I don't know.

And those that.

DNA found in one of your paintings.

Speaker Change: That we follow in the design of good software.

You can do with <unk>.

Speaker Change: So when we're when we're building so good quality software, we always take into consideration these five principles.

You have no idea who he is.

Yes.

A snake has never violent when starting their prey.

Speaker Change: That are the singer responsibility principle. The open close principal this doses division interface segregation and dependency in version.

It's only when they get right into striking distance that they become fan.

Sure.

Speaker Change: All of them.

Speaker Change: Just very nice.

Juan Urthiague: All right, thank you very much. Thank you, Maggie. Thank you, Maggie. Thank you, Maggie.

Speaker Change: To summarize <unk>.

Yeah.

Speaker Change: Good.

Speaker Change: Good quality software design principles.

Juan Urthiague: Thank you very much. Our last question comes from the line of Surinder Thind from Jeffries. Surinder, please go ahead. Your line is open.

Speaker Change: That will help you agree better code that will be easier to maintain to work with to re factor et cetera.

Speaker Change: So.

Juan Urthiague: Thank you. I guess from my perspective, I'd like to focus on organic growth here. As I think about commentary, a quarter ago, maybe a bit before that, and I look at where organic growth is at this point in terms of your expectations, it's steadily come down. Can you talk about that? What's the cause of that? Because it seems like the environment has actually gotten better.

Speaker Change: We are going to be using these principles in our refractory so that we can.

Okay.

[music].

Speaker Change: Work together.

Speaker Change: And we can re factor a code that has been done in <unk>.

When asked Hey.

Hi, everyone.

Speaker Change: In the old fashion way and that Didnt use these principles.

Uh-huh Spanish.

I wasn't paying attention.

Speaker Change: And the reason we are going to do this is we have to have a new feature to these code.

So welcome to the second session of these giammarco camp.

Speaker Change: So I'm going to I'm not going to talk about the principles right now because I'm going to introduce them as we are looking at the code.

If you like to Goad you are in the right place.

Juan Urthiague: And so in 2023, it was a great year where you guys significantly outperformed all of your competitors, but that spread between your organic growth and what others are forecasting has started to compress, and it's a lot less than it was. I don't know what numbers you're seeing, but I don't see that compressing at all.

So.

This second session, we're going to be talking about we're going to be doing more refractory.

Speaker Change: Right.

Speaker Change: And.

Speaker Change: But what I will say is that we want.

And in this particular session, we're going to be talking about.

Speaker Change: To introduce editorial and we want to either new feature to this piece of software. So here's the here's editorial here's what we're going to be working on this is a he said.

How we can use the solid principles when we used when we the refractory and as always we will be doing live coding, which is the thing that we like to do the most so.

Juan Urthiague: Now, when we're looking at, for example, this morning, one of our peers reported about two and a half percent area growth, we're talking about 16, which is about 10 percent organic. So that and much, much bigger. But in any case, I think that we need to see how, again, people are talking about our interest rate decreasing much. Now it seems it's not going to happen, um, there is some more positive tone in terms of conversations, clearly, but again, we cannot control you know how and when people will completely change their minds and become very optimistic about the future. And I'm talking about growth again, and as such, we have to provide numbers that will feel comfortable that we can achieve and that we believe are still uh way ahead uh of the average of all our peers. But I mean, the market was expecting a bigger number back in November.

Speaker Change: <unk> is an example.

Speaker Change: A code that can be seen in <unk>.

Why don't we jump into the presentation.

Speaker Change: Martines folders bug refractory.

And.

We'll be speaking a little bit about the solid refractory essentials.

Speaker Change: And this code is available for all of us to take a look at and we're going to use this code as a base for our tutorial. So if you're watching online and you want to follow along.

Alright.

So one of the best moments due to re factoring is when we have a piece of legacy code.

Speaker Change: These tutorial.

Speaker Change: Then you can you can tell.

That needs to be modified in order to add new features right. So sometimes it's hard to find the time to actually modify.

Take a look at the link.

Speaker Change: And I choose checking.

Speaker Change: Send the link.

Speaker Change: And yes, we have the big Ehow repository there.

Speaker Change: So.

Legacy code because use.

Speaker Change: The team from global and has already shared with you.

Usually it is working you don't want to touch it and you don't want to.

Speaker Change: The guitar repository.

Speaker Change: So you'll be able to follow along I think.

Look at.

Actual.

Speaker Change: Could be that the repository 70, so I'm going to quickly.

You don't want to spend time.

Speaker Change: Quickly.

Fixing something that is still working so so you want to.

Speaker Change: Sure.

Speaker Change: I'm going to push this so that everyone can.

Have a reason to actually modify it.

Speaker Change: Download this.

And.

A good reason to do this.

Speaker Change: Yeah.

Speaker Change: So.

Speaker Change: I think I moved it to a different radiosurgery so now.

Yes.

We have to.

Speaker Change: You should be able to see.

I'm sorry, so one of the one of the reasons. We wanted to do this is because.

Speaker Change: The code in the repository and so download the gold loan that we'd have repository and then.

We want to have some time to actually modify that go that we're working on so if we want if we have to find that time and the resources to work on code.

Juan Urthiague: I think that everybody was expecting the economy also to be, you know, again, much stronger by now, with interest rates coming down. That hasn't happened. Yesterday, inflation yesterday came above what people were expecting. So again, we think that starting the year at 10% plus organic growth is a very good number. Of course, we would like to do much more than that. We would like to put 20, 25, whatever.

Speaker Change: We will also.

Speaker Change: Let's start working on these software, but let me let me tell you first what this dose.

The best way to annuities, when we have to add new features to it and also adding new features to the code.

Speaker Change: This software is very simple.

Speaker Change: Software.

Speaker Change: Used by a theater.

We'll help you too.

Speaker Change: That.

Speaker Change: Yeah.

Speaker Change: To pay to the actors that played a particular role in their place. So we have some actors for example, John and Mary.

We're adding new features to the gold.

We'll help you justify the time.

Because adding new features to go there is not good it takes a lot of time, but if you can improve the code than adding new features to it will be easy.

Speaker Change: They participate in different plays for example, John plays.

Juan Urthiague: But that's what we can, we can, you know, guide responsibly at the beginning of the year. Okay, no, that's fair. I don't disagree. I mean, 10% is an excellent number in the environment, on a relevant basis.

Speaker Change: Uh huh.

Speaker Change: He plays in hamlet and he also plays in as you like it.

That's why we do these and remember if.

Speaker Change: Mary placing hotel.

If you haven't watched the last session you can always watch the last session in.

Speaker Change: And as you like it so.

Speaker Change: And they have multiple presentations so they could have two brits and they use in hamlet and one in as you like it and so on so.

Juan Urthiague: Yeah, and again, you know, we're starting the year; it's the moment to adjust any expectations and to be able to generate the space for us to keep on growing, right? And this is what we have been doing in every single quarter since the last, you know, many, many years. So I strongly believe that we may surpass that number.

In the there is a link that we're going to be sending we're going to share with you where you can watch the previous sessions and.

Speaker Change: And different presentations have different amount of audiences.

The last session, we talked about how we can create tests to re factor in this.

Speaker Change: Depending on how many audience.

Juan Urthiague: But this is what we want to guide at this very moment. And by the way, on your comment, I totally agree that there are a lot of competitors out there. But I still believe we have the best-in-class and, by far, growth, you know, proposed for 2024.

Speaker Change: Was in that presentation that performance.

New session, we're going to be using the solid principles to the factor.

Speaker Change: Then they'll pay more or less and also depending on the type of the play they will be paid.

Alright, So we were talking about.

Doing these refractory in here and what we want to do is we want to use the solid principles to guide us.

Speaker Change: More or less so.

These type of plays a tragedy so that base.

Speaker Change: With a different formula than these one which is a comedy.

Juan Urthiague: So, even on the organic growth side, and I believe that we will keep on delivering that differential performance that characterized Globant in the past. Okay, thank you. I have no disagreement that you guys definitely have the highest or the strongest outlook for 2024.

And in the refractory in process.

Speaker Change: Right. So that is basically our detore, it's a very simple piece of software but.

So.

Why why would we use every fact solid principles and what are the solid principles.

Sure.

Speaker Change: So what it does is it will calculate how much he has to pay to the different actors and then.

So the solid principles are.

It does.

Speaker Change: It will be.

Juan Urthiague: So thank you. Thank you, Surinder. Thank you. Thank you, Surinder.

Speaker Change: Print that into a text.

That we follow in the design of good software.

Speaker Change: Raymond.

So when we're when we're building so good quality software, we always take into consideration these five principles.

Speaker Change: But we.

Juan Urthiague: That will conclude the Q&A section for today. Thank you all for joining the call. I will now ask Martin to provide some closing comments. Please go ahead, Martin. Hey, thank you so much.

Speaker Change: We don't want to printed just does it so.

Speaker Change: So we don't we want to change the format, we don't want to bring dataset text, we want to print. It also assay, Jason So how do we do that.

That are the single responsibility principle the open close principal Miss doses addition interface segregation and dependency in version.

Martín Migoya: Thank you, everyone, for participating here. We are really happy with our performance in 2023 and the outlook for 2024. I'm really looking forward to keeping on talking about the next quarter.

Speaker Change: That's what we are going to do we're going to refractory code. So that we can do that change and then we can.

All of them.

Speaker Change: We can add the new functionality.

Just very nice.

Speaker Change: Right.

To summarize <unk>.

Good.

Speaker Change: So I.

Good quality software design principles.

I think we've sold the requisite DMT repository problem, but you can let us know if you still have that problem.

Martín Migoya: And thank you for your support and for your patience and for your understanding. Thank you. Bye bye. Bye. www.globalonenessproject.org, Thanks for watching! Thank you for watching!

And that will help you create better code that will be easier to maintain to work with to re factor et cetera.

Speaker Change: But if not.

Speaker Change: Let me show you what you find in these retrofits.

So.

We are going to be using these principles in our refractory so that we can.

Speaker Change: So.

Speaker Change: First thing we have.

Speaker Change: Our repository.

Work together.

Martín Migoya: Thanks for watching! Hey! Hey, everyone. Sorry about that, Spanish. I wasn't being a...

Speaker Change: This class.

And we can re factor a code that has been done in <unk>.

Speaker Change: All the same and bring third test.

Speaker Change: And in this class.

I mean old fashion way and that Didnt use these principles.

Speaker Change: We will have.

Speaker Change: A few tests that we can use.

Martín Migoya: So welcome to the second session of this JavaCode, and if you like to code, you're in the right place. So in this second session... We're going to be talking about refactoring. And in this particular session, we're going to be talking about how we can use the solid principles when we use them when we do. And, as always, we will be doing live coding, which is the thing that we like to do the most. Why don't we jump into their breasts and teeth?

And the reason we are going to do this is we have to have a new feature to this code.

Speaker Change: The desk our functionality.

So I'm going to I'm not going to talk about the principles right now because I'm going to introduce them as we are looking at the code.

Speaker Change: And so here's what I was telling you.

Speaker Change: This this is a this is a the plays that.

Right.

And.

Speaker Change: That's.

But what I will say is that we want.

The theater works with.

Speaker Change: Here's an in boys with the with the audience on the play.

To introduce editorial and we want to either new feature to this piece of software. So here's the here's editorial here's what we're going to be working on this is a he said.

Speaker Change: And.

Speaker Change:

Speaker Change: In here.

Speaker Change: We send these in boys with the different performances.

Speaker Change: And we send it to these classic Sustainment printer and this glass will bring.

<unk> is an example of it.

A code that can be seen in.

Speaker Change: This statement.

Martines folders bug refractory.

Martín Migoya: I will be speaking a little bit about the solid rock. So, one of the best moments to do reflections when we have a piece of legacy that needs to be modified in order to add new features. So sometimes it's hard to find the time to actually modify Legacy. Usually, if it is working, you don't want to touch it, and you don't want, [inaudible] look at the For more UN videos, visit www.un.org. You don't want to spend time fixing something that still works.

Speaker Change: And then we compare it with the expected statement so.

And this code is available for all of us to take a look at and we're going to use this code as a base for our tutorial. So if you're watching online and you want to follow along.

Speaker Change: We are expecting these result.

Speaker Change: And the same happens here so in this case.

Speaker Change: We have three plays and we have three performances one for each play.

This tutorial than using you can tell.

Right.

Take a look at the link.

Speaker Change: And.

Speaker Change: So we send it to the same membrane that Brenda.

And I choose checking.

Send the link.

Processes, the invoice with the three plays.

Yes, we have the big east have repository there.

Speaker Change: And finally.

So.

Speaker Change: Uh huh.

The team from global has already shared with you.

Speaker Change: It gives you a statement and that statement will have many lines.

The guitar repository.

Speaker Change: One fair play.

So you'll be able to follow along I think.

Speaker Change: So.

It could be that the repository 70, so I'm going to quickly.

It's pretty easy to understand but let's take a look at the actual code of this statement Brendan.

Martín Migoya: So you want to have a reason to actually model, and a good reason to do this is that we had to... One of the reasons we want to do this is that we want to have some time to actually modify the code that we're working on. If we have to find that time and the resources to work on code, and the best way to do it is when we have to add new... And also, adding new features to the code will help you to... are the new features to the code, will help you justify the time? Because adding new features to code that is not good takes a lot of time, but if you can improve the code, then adding new features to it will be easier.

Quickly.

Sure.

Speaker Change: Oh.

I'm going to push this so that everyone can.

Speaker Change: Yeah.

Brendan: Right. So the same printer.

Download this.

Brendan: As one method.

Brendan: And this method.

Yeah.

Gold print.

So.

Brendan: Which makes sense it brings these statement.

Think I moved it to a different radiosurgery so now.

Brendan: So.

Brendan: Let's see.

You should be able to see.

Brendan: What do we have here.

Brendan: Alright, so we have it receives an invoice, let's take a look at the invoice glass on the invoice plus handset customer.

The code in the repository and so download the gold loan that we'd have repository.

And then we.

We will also.

Brendan: On a house that performance. So it has the least of all their performances.

To start working on these software, but let me let me tell you first what this does this software is very simple.

Brendan: If we look at this is the arrows in the Xyrem.

It's a software.

Brendan: So these arrows are differing performances.

Used by a theater.

Brendan: So these guy this is let's say John.

That.

To.

To pay to the actors that played a particular role in their place. So we have some actors for example, John and Mary and they participate in different plays for example, John plays.

Brendan:

John: He performed.

John: Three times. So he has three performances. So he sends an invoice to the theater, saying, Okay. You have to pay me for these three performances.

Martín Migoya: So, that's why we. And remember, if you haven't watched the last session, you can always watch the last one. And there is a link that we're going to be sending, that we're going to share with you, where you can watch the previous session. And in the last session, we talked about how we can create, to. In this new session, we're going to be using the solid... All right, so we were talking about... doing this refactoring here. And what we want to do is we want to use the solid principles to guide us in the. So, why would we use this solid?

Uh huh.

He plays in hamlet and he also plays in as you like it.

John: Okay.

And the performance is as we saw it they have the idea of the play that John did.

Mary Blazing hotel.

In as you like it so.

John: For example, hamlet.

And they have multiple presentations so they could have two bricks and they're using hamlet and one in as you like it and so on so.

John: And then.

John: He also has the audience so how many people actually attended to their performance.

John: So.

John: We are going to.

And different presentations have different amount of audiences, so depending on how many audience.

John: See again here.

John: The code and where we see this first well.

Was in that presentation that performance.

John: These statements printer.

Then they'll pay more or less and also depending on the type of the play they will be paid.

John: Going to calculate.

Martín Migoya: What are the... So the solid principles that um, we follow in the design of good software. So when we're building good quality software, we always take into consideration these five principles, that are the Single Responsibility Principle, the Open-Close Principle, Nisga'a. Interfaith Segregation and Dependency. All of them are just very nice.

John: Yeah.

John: The different amounts.

John: Owed to the to the player to the actor.

More or less so.

These type of plays a tragedy so that base.

And we'll see here, we have the total amount and he also calculate something called the credits.

With a different formula than these one which is a comedy.

John: And then he goes through the different performances.

Right. So that is basically our editorial it's a very simple piece of software but.

John: And we see we fetch the performance.

John: Around the <unk>.

Sure.

So what it does is it will calculate how much he has to pay to the different actors and then.

Performance AWS, let's call it.

Martín Migoya: Ways to summarize. Good. Good Quality Software Design Principles that will help you create better software that will be easier to maintain, to work with, to refactor.

John: And then.

John: At.

It will Ah <unk>.

John:

Print that into a text.

John: It will for each.

John: For each performance he will check the type of the play.

Payment.

But we.

We don't want to bring that just does it so.

So we don't we want to change the format, we don't want to bring the message text, we want to bring it also assay, Jason So how do we do that.

John: The type of the of the actual play.

John: And if it is a tragedy he will do this.

John: So which is the calculation.

Martín Migoya: So, we are going to be using these principles in our refactoring through that weekend's work together. And we can refactor code that has been done in an old-fashioned way that didn't use this principle. And the reason we are going to do this is that we have to add a new feature. So I'm not going to talk about the principles right now because I'm going to introduce them. We are looking, and...

John: And then.

That's what we are going to do we're going to a refractor. The code. So that we can do that change and then we can.

John: If it is a comedy it will do this.

Speaker Change: Right otherwise it will throw an exception.

We can add the new functionality.

Speaker Change: And an awful error.

Undo and this has been saved.

Speaker Change: And then we have.

Save hundreds will leave anybody Doug and Lima, what did he say.

Speaker Change:

Speaker Change: We are adding everything together.

Right.

So.

Speaker Change: So we add.

I think we've sold the requisite DMT rubber C. III program, but you can let us know you still have that problem.

Speaker Change: All the different.

Speaker Change: Credits.

Speaker Change: And we also add the total amount.

But if not.

Speaker Change: Okay, and we do something else if it is comedy we do something else with Gs.

Let me show you what you find in these rebels ctrip.

Martín Migoya: But what I will say is that we won, to introduce our tutorial, and we want to add a new feature. Here's a tutorial, here's what we're doing. This is a sample of code that can be seen in Martin Fowler's book. And this code is available for all of us to take a look at, and we are going to use this code as a base or our own. So if you're watching online and you want to follow along, then you can take a look at the link. Yes, we have the Ripofitri.

Speaker Change: Some volume credits that exciting.

So.

First thing we have.

Speaker Change: Yeah.

Our repository.

Speaker Change: So we can see already that a lot is going on in this method. It is this is not only printing.

This class.

All the same and bring third test.

And in this class.

We'll have.

Speaker Change: So if it is not only printing.

A few tests.

Speaker Change: Then.

Now we can use.

Speaker Change: This method.

Speaker Change: It seems to be doing more than it actually says.

The desk our functionality.

And.

Speaker Change #100: I would say okay.

So here's what I was telling you.

Speaker Change #100: Give me an invoice and he will bring the statement, but it's actually also calculating the the amount in <unk>.

This is a this is a the plays that.

Martín Migoya: The team from Globant has already shared it. So you'll be able to follow along, I think. C370, so I'm going. I think I moved it to a different repository, so now you should be able to, www.

Yeah.

Doug.

Diesels are fetching everything from the database.

The theater works with.

And here's an invoice.

Speaker Change #100: So there's a lot going on here is not just breathing.

With the with the audience on the play.

Speaker Change #100: And here's where we want to talk about the.

And.

Martín Migoya: TheBusinessProfessor.com, And so download the code clone.github.com. We will also... are working on this. Let me, let me tell you first what this software is. This software is very... It's software used by a theater to pay the actors that play.

Hmm.

Speaker Change #100: Different.

Speaker Change #100: Sure.

In here, we send these in boys.

Solid principles and how this can help us.

With the different performances.

Speaker Change #100: Refractories go because.

And we send it to this class of Sustainment printer and these glass will bring.

Speaker Change #100: Now.

Speaker Change #100: This image and here we are breathing everything.

The the statement.

But its printing.

Martín Migoya: We have some actors, for example, John and Maggie. They participate in different plays. For example, John plays. He plays in Hamlet. He also plays, and Mary Blazin-Otello.

Speaker Change #100: You see here.

And then we compare it with the expected statements. So.

Speaker Change #100: Here, we are formatting everything in the stream.

We are expecting these result.

Speaker Change #100: Okay. So we wanted to format things.

Speaker Change #100: But in different formats, not just string we can we can create a jason we can create an XML we can we can switch formats formats, because not every client will use the same format maybe.

And the same happens here so in this case.

We have three plays.

Martín Migoya: And they have multiple presentations. So they could have two presentations in Hamlet, one, and as you like it, and different presentations have different numbers of audience members. So depending on how many albians were in that presentation, that performance.

And we have three performances one for each play.

Right.

And.

So we send it to the same in printer that Brenda.

Speaker Change #100: There is one client.

Speaker Change #100: That will use Jason for example.

Processes, the invoice with the three plays.

And finally.

So.

Martín Migoya: Then they'll pay more or less. And also, depending on the type of... They will be paying more. This type of play is a tragedy, so that's... with a different formula than this one. So that is basically our very simple formula. Bye.

Uh huh.

Speaker Change #100: While we can see here.

It gives you a statement and that statement will have many lines.

Speaker Change #100: Is that.

Speaker Change #100: If we want to change these two bring in Jason we would need to come here and say for example.

One fair play.

So.

Speaker Change #100: <unk>.

It's pretty easy to understand but let's take a look at the actual code of this statement breather.

Speaker Change #100: So and here we have the result.

Speaker Change #100: In the result, we would need to say something like.

Martín Migoya: So what it does is it will calculate how much it has to pay for the different... He will print it onto a deck. But we don't want to print it just as it is, so we don't, we want to change the format. We don't want to print it as it is. We want to print it also as a J.

Oh.

Speaker Change #100: <unk>.

Yeah.

Speaker Change #100: If.

Right. So the same printer.

Speaker Change #100: Let's say brand.

As one method.

And this method.

Speaker Change #100: Jason Let's say this is the volume that we send us parameter here.

Bold print.

Which makes sense it brings these statement.

Speaker Change #100:

So.

Let's see.

What do we have here.

Alright, so we have it receives an invoice and let's take a look at the invoice glass on the invoice plus handset customer.

Speaker Change #100: So we would say is bring them Jason.

Speaker Change #100: Then.

Speaker Change #100: We would.

Speaker Change #100: We will have to move.

On.

Speaker Change #100: This logic inside here.

The performance and so it has the least of all the performances, which if we look at this is the arrows in the Xyrem.

Martín Migoya: How do we do that? That's what we are going to do. We're going to refactor the code so that we can do that. And then we will. So I think we've solved the anti-repository problem, but you can let us. Do you have that program?

Speaker Change #100: <unk>.

Speaker Change #100: Adding to their resolved.

So these arrows are different performances.

Speaker Change #100: So we would.

Speaker Change #100: We would actually.

Speaker Change #100: Well.

So these guy this is let's say John.

Speaker Change #100: This whole line for example here.

Hum.

Speaker Change #100: Els and.

He performed.

Speaker Change #100: And we would say.

Three times so he has three performances.

He sends an invoice to the theater, saying, Okay. You have to pay me for these three performances.

Speaker Change #100: So and here, we would we would actually say.

Speaker Change #100: Or.

Speaker Change #100: Line.

Speaker Change #100: Soon.

Okay.

Speaker Change #100: Let's say, we we we can create a massive here.

And the performance is as we saw it they have the idea of the play.

Martín Migoya: Ummm, but if not... I'll show you what you'll find in... The third thing we, in our repository is... and Indy, a few. Weekend. You, to test our... So here's what I was doing. This is a, this is a, the place that the

Speaker Change #100: And then the line.

John did.

Speaker Change #100: Which is that performance.

Ample hamlet.

And then.

Speaker Change #100: And this is this would be and then the amount that has accumulated.

He also has the audience so how many people actually attended to their performance.

Speaker Change #100: So this is really.

So we.

We are going to see again here.

Speaker Change #100:

Speaker Change #100: Getting more and more complicated because we have a new.

The code and where we see first.

Martín Migoya: Here's an invoice, with the audience and the players. Here, we send this invoice. And we send it to this class, the statement..., and this class will bring. And then we compare it with the expected. We are expecting the same thing to happen here. So in this case, we have three plays. 1, 3.

Speaker Change #100: A different format will have two other second parameters, saying for example, brain does X M L.

Will the statement printer is going to calculate.

Speaker Change #100: So on that's not why we want.

For an amount that is owed.

Speaker Change #100: Because we are where we're having.

<unk> to the to the player to the actor.

Speaker Change #100: Two different concerns.

And we'll see here we have the total amount that he also calculate something called the credits.

Speaker Change #100: The mixed in the same class.

Speaker Change #100: And what.

Speaker Change #101: What are those concerns.

Speaker Change #101: Let's go back.

And then he goes through the different performances.

Speaker Change #102: Thank you.

And we see we pledged their performance.

Martín Migoya: So we send it to the statement printer; the printer processes the invoice with the three, and finally..., gives you a. And that statement will have many lines, 1..............

We can identify multiple concerns.

Rhonda.

Performance AWS, let's call it.

Speaker Change #102: These classes tackling.

And then.

Speaker Change #102: And how this becomes a problem for the solid principles.

<unk>.

It will for each.

Speaker Change #102: Remember the solid principles. The first one single responsibility principal okay.

For each performance he will check the type of the play the type of the of the actual play.

Martín Migoya: It's pretty easy to understand, but let's take a look at the actual code of the program. One. Math. Math. Math. Math. Math. Mike, print The So we have it, it receives an invoice. Let's take a look at the images. That's the least of all the... And if we look at this, it's the arrow. These arrows are the... So this guy here is, let's say, John. He performed three times, so.

Speaker Change #102: So single responsibility principles says.

And if it is a tragedy you will do this.

Speaker Change #102: <unk>.

Speaker Change #102: A glass should have a single responsibility and issue didn't do more than that because that makes the class more complex and harder to understand and harder to modify harder to extend and so on and so on.

So which is the calculation.

And then <unk>.

It really is a comedy it will do this.

Right.

Wise it will throw an exception.

And an awful error.

Speaker Change #102: So.

Speaker Change #102: We identified two responsibilities and we could also say three but.

And then we have.

Martín Migoya: So he sends an invoice to the CFA and Payme for these three performers. The performances, as we saw, have the idea of the play. John Lee.

<unk>.

We are adding everything together.

Speaker Change #102: Let's start with two first.

Speaker Change #102: The first responsibilities the class is calculating the different amounts.

So we add.

Martín Migoya: Hamlet, he also has the audience, so how many people actually attended? We are going to... See you next time. Bye. The code, and what we see first... Will the statement print? different amounts, ode to the, And we'll see here we have the total amount, and it also calculates something called the credit. And then it goes through the different performances. See, we fetch the performance. The performance database, It's... For each performance, we will... Play, type of the actual place. If it is a tragedy, it will do..., which is the calculation. If it is a comedy... I will do it.

All the different.

Credits.

Speaker Change #102: Four.

And we also add.

Speaker Change #102: Or this statement. So so basically is doing the business logic calculating how much we owe to these actor.

The total amount.

Okay, and we do something else if it is comedy we do something else with Gs.

Speaker Change #102: On the other hand the.

Some volume credits that HIV.

Speaker Change #102: The glass is also.

Yeah.

So we can see already that a lot is going on in this method right. It is this is not only printing.

Speaker Change #102: Our mounting.

Speaker Change #102: The output so it's basically.

Speaker Change #102: Creating a.

So if it is not only printing.

Speaker Change #102:

Speaker Change #102: And output in the text format in a plain text format.

Then.

This method.

Speaker Change #102: And.

It seems to be doing more than it actually says.

Speaker Change #102: And on the logic and the worst parties at the logic for for all these is mixed up.

I would say okay.

Martín Migoya: Otherwise, it will throw an error, And then we have... We are adding everything together. We are, and we also. Transcribed by https://otter.ai. And we do something else. If it is comedy, we do something else.

Give me an invoice and he will bring the statement, but it's actually also calculating the the amount.

Speaker Change #102: So we can see things that have to do with the calculation here.

Speaker Change #102: And for example, it's also in here.

Diesels are fetching everything from the database.

So there's a lot going on here is not just branding.

Speaker Change #102: But we can also see <unk>.

Speaker Change #102: In the middle that has to do with the actual format being for example here.

Martín Migoya: Volume. So, we can see already that a lot is going on in...

And here's where we want to talk about the.

Different.

Speaker Change #102: And then here and here.

Solid principles and how this can help us.

So if we have those those things.

Martín Migoya: This is not only printing. So if it is not only printing, it seems to be doing more than it actually is. I would say, give me an invoice, and it will print the statement. But it's actually also calculating the amount, and it's also fetching everything from the database.

Speaker Change #102: In the middle that means where we're mixing concerns.

Refractories go because.

Now.

This image and here we are breathing everything.

Speaker Change #102: Together.

Speaker Change #102: So the single respond so really the principal remember it says he says that we shouldn't be doing this.

It's printing.

You see here.

Here, we are formatting everything in the stream.

Martín Migoya: So there's a lot going on, and here's where we want to talk about the different. Solid, how this can help. And this, imagine, here we are printing everything, but it's free, here. Here we are formatting everything in. Okay, so we want to format everything, but in different formats, not just JSON. We can create a JSON file, we can create an XML file, we can switch, because not every client will use... For more information, visit www. FEMA.gov, There is one client that will use J-G-E-N-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-N-G-I-

Speaker Change #102: Yes.

Okay. So we wanted to format things.

Speaker Change #102:

Speaker Change #102: As we should be having.

But in different formats, not just string we can we can create a jason we can create an X M. L. We can we can switch formats formats, because not every client will use the same format maybe.

Speaker Change #102: The class do one thing.

Speaker Change #102: If we want a glass to calculate and produce this the calculation. So the statement that's great we should create a.

Speaker Change #102: Classical for example, the statement generator.

Speaker Change #102: And then we could have another class coldest day ma'am printer.

There is one client.

That will use Jason for example.

Speaker Change #102: Which is this one really.

So.

Speaker Change #102: So the statement Brenda we'd only printed.

While we can see here is that.

If we want to change these two bring in Jason we would need to come here and say for example.

Speaker Change #102: In.

Speaker Change #102: The text format and then the same engineering Duluth produces statement and what is the advantage of doing that.

<unk>.

So and here we have the result.

Speaker Change #103: We do it if we do it like that.

Martín Migoya: We want to change this to print in J. We will need to come here. And here we have the results. In the result, we would need to say something like..., friend say this is a Boolean that we would, So we would say, if Brendan Jay..., and we would. We will have to move, slide, here, to their results, would say we can create a method, and a lot. And this is, this would be, and the amount. So, this is really... getting more and more complicated because if we have a new..., different, we'll have to add a second parameter. And that's not why we were; because we are.

In the result, we would need to say something like.

Then we would be able to create different statement blenders because if we have a class that creates sustainment for example, one class creates a.

Uh huh.

If.

Let's say brand.

Speaker Change #103:

Jason Let's say these are all in there we said that parameter here.

Speaker Change #103: Yeah, Yeah that generates a whole stamen assay Java object and then.

Speaker Change #103: We have multiple stay membrane does we can have a jason's team member in there. We can have a tax payment being there. We can have a X M. L. A the same printer and so on.

So we would say is bring them Jason.

Then.

Speaker Change #103: So that's a great advantage.

We would.

Speaker Change #103: And that is the what this thing what by following the single responsibility principle, we can get that level of abstraction.

We will have to move.

This logic inside here.

And added to their resolved.

Speaker Change #104: I don't know if there are any questions. So far it seems like everything is going okay.

So we would.

We would actually.

Well.

Uh huh.

This whole line for example here.

Speaker Change #105: I'm checking also if there are any questions.

Els.

Martín Migoya: We're having two different concerns mixed in the. And what are those? go We can identify, multiple ways the becomes a problem for the study. Remember... The solid principle, the first one, single responsibility, single responsibility. A class should have a single responsibility, and it shouldn't do more than that, because that makes the class more complex, harder to understand, and harder to modify, harder to extend, and We can identify to, and we could also say three. Let's start with... The first responsibility is the class is calculating... for... for the statement. So basically, he's doing the business, calculating how much we owe to each other, and the other class is also. Foreman. It's based on a true story; for more information,

And we would say.

Speaker Change #106: But it seems like everything is fine for now.

Speaker Change #106: Alright.

So and here, we would we would actually say for my line.

Speaker Change #106: So.

Speaker Change #106: The other thing that we need to bear in mind.

Jason.

Speaker Change #106: Is that.

Let's say, we we can create a massive here.

Speaker Change #106: There are all the principles and the other principle that I can see.

And then the line.

Speaker Change #106: In here that is not being followed.

Which is that performance.

Speaker Change #106: One called the open closed principal.

And this is this would be and then the amount that has accumulated.

Speaker Change #106: What what would be a violation of the open close principle.

So this is really.

Speaker Change #106: There are two basically.

Getting more and more complicated because we have a new.

Speaker Change #106: Remember I said I want to extend this so that I can.

A different format will have to add a second parameters, saying for example, bringing does X M L.

Speaker Change #106: Have a Jason Brie.

Speaker Change #106: <unk>.

Speaker Change #106: I cannot do that I would need to put the logic for Jason branding in here.

So on that note why we want.

Because we are where we're having.

So if I had to do this.

Two different concerns.

Speaker Change #106: That means I need to.

The mixed in the same class.

Getting the middle of the code and to start checking if it is if I want to bring the Jason or if we wanted to bring the indexed.

What are those concerns.

Martín Migoya: For more information on the United States Department of State, please visit the U.S, and now put in the text... Blaine, And the logic, and the worst part is that the logic... For all these, it's me. So we can see things, to do with the calculation. But we can also see.., is in the middle, have to do with the actual format. And then here...

Let's go back.

Speaker Change #106: So this is not easily.

I'm here.

Speaker Change #106: And what what.

Speaker Change #106: And why.

We can identify multiple concerns that.

Speaker Change #106: Do we say this violates the open close principle.

Speaker Change #107: Let me.

These classes tackling.

Open close stands for.

And how this becomes a problem for the solid principles.

Martín Migoya: So if we have those... This means we're mixing content. So the single responsibility. Remember, it doesn't matter who you are.

Speaker Change #107: A glass should be open.

Remember the solid principles. The first one single responsibility principal okay.

Speaker Change #107: For an extension and closed four modifications so.

Martín Migoya: You can be who you are. And remember it doesn't matter who you are, that we shouldn't be doing The, should be having. Class, do one, want a class to calculate and produce this calculation of the state, Let's. Shukri to, Sustainability, could have another, called the statement, statement printer with only print, and then the same engineer that would produce. And what is the advantage of...

Speaker Change #107: Usually you don't want to modify your glasses too much.

So single responsibility principles says.

Speaker Change #107: You should be able to extend the behavior of your classes.

<unk>.

A glass should have a single responsibility and issued a new more than that because that makes the class more complex and harder to understand and harder to modify harder to extend and so on and so on.

Speaker Change #107: So if you want to modify something then you should have the appropriate interfaces.

Speaker Change #107: So that you can extend that.

Speaker Change #107: Instead of modifying the classes.

Speaker Change #107: So for example.

So.

We identified two responsibilities and we could also say three but.

Speaker Change #107:

Speaker Change #107: You have a if you have an interface.

Martín Migoya: If we do it like this... And then we would be able to create different, We have a class that creates, for one class. Yeah, it generates a whole statement as a Java. We have multiple statement printers. We can have a JSON statement printer. That's great advice.

Let's start with two first.

Speaker Change #107: By by having an interface you can.

The first responsibilities the glass is calculating the different amounts.

Speaker Change #107: Create new implementations of that interface, so that would that would be in alignment with the open close principle, because it saying. Okay. You can you have this interface you can grade new implementations and you can switch different implementations and that would be okay.

Four.

Or this statement. So so basically is doing the business logic calculating how much we owe to these actor.

Martín Migoya: That is. And by following the Single Responsibility Principle, we can get that level of accountability. I don't know if there are any. So far, it seems like everything is going well.

On the other hand the.

Speaker Change #107: So these glass.

Martín Migoya: Everything is fine. The other thing that we need to bear in mind. The other principle that I can think of here that is not being followed, and the one called the Open Close. What would be a violation of the OPA? There are two.

The glass is also.

Speaker Change #107: Violates the open close principle in many ways.

Mounting.

The output so it's basically creating a.

Speaker Change #107: One of the ways is the different formats. For example, I cannot change the format I had to modify the code a lot sooner.

And output in the text format in a plain text format.

Speaker Change #107: So that I can I can bring this is Jason.

Martín Migoya: Remember, I said I wanted to extend so that I can, have a J, cannot do that. I would need to put the logic for Jason in here. If I had to do this... What does that mean? Do I need to get in the middle of the code and start printing in Google Notebook?

Speaker Change #107: Another way in which these violates the principle is the switch statement.

And.

And on the logic and the worst parties at the logic for for all these is mixed up so we can see things that have to do with the calculation here.

Speaker Change #107: These switch statement.

Speaker Change #107: Has.

Speaker Change #107: It forces me to boot here, a new case.

For example, it's also in here.

So if I wanted to create a new.

But we can also see things in the middle that has to do with the actual format being for example here.

Speaker Change #107: A new type of play, let's say Romans.

Martín Migoya: So, this is not easy... and you will understand what it was. Do we say this violates the open clause? OPENCLOSED stands for... The glass should be open.

Speaker Change #107: I would need to.

And then here and here.

Have here the logic, so I would need to keep adding lines of code to these glass.

So if we have those those things.

In the middle that means where we're mixing concerns.

Speaker Change #107: And that.

Speaker Change #107: It's probably a lot of lines of code for a single class.

Martín Migoya: So, usually, you don't want to modify your... To, you should be able to extend the... So, if you want to modify..., then you should have the proper interface, so that you can extend it. So, for example... If you have an interest in this topic, please contact me. I would be happy to help you.

Together.

Speaker Change #107: What I'm, saying is wrong do you switch statements because sometimes they are good.

So the single restaurants are really the principal remember it says he says that we shouldn't be doing.

Speaker Change #107: But in many cases, we can also modify these behavior.

These.

Speaker Change #107: In weekend segregate this interface.

We should be having the class do one thing.

Speaker Change #107: By using <unk>.

A refractory technique.

If we want a glass to calculate and produce this the calculation. So the statement, let's we should create a.

Speaker Change #107: Cold.

Martín Migoya: By having an interface, you can... create new implementations. So that would be in alignment with the open-close principle because it's saying, okay, you have this interface. You can create new implementations, and you can switch..., implementations, and that would be a violation of the open-close principle in many ways. One of the ways is a different form. I cannot change the format; I have to modify the code so that I can print this.

Speaker Change #107: Replays.

Speaker Change #107: Conditionals.

Speaker Change #107: With.

Classical for example, the statement generator.

Speaker Change #107: Polymorphism, so what we would end up having is.

And then we could have another glass coldest Damian printer.

Speaker Change #107: What is this doing this is calculating.

Which is this one really.

So the statement Brenda we'd only printed.

Speaker Change #107: The.

Speaker Change #107: He is calculating the amount that has to be paid.

In.

The text format and then the same engineering the world produces statements.

Speaker Change #107: Depending on the different place.

Speaker Change #107: So we could create an interface called the among.

And what is the advantage of doing that if we do it if we do it like that.

Speaker Change #107: Our mountain calculator for example, the or the play type calculator.

Then we would be able to create different statement printers.

Martín Migoya: Another way in which this violates the principle is... forces me to put in a new case. If I want to create a new..., new type of play, let's say. I would need to, here the logic, so I would need to keep adding lines of code, probably a lot of lines of code for a. It is wrong to use a switch statement. Sometimes they are. In many cases, we can also modify this, and we can separate this... by using. Factoring in

Speaker Change #107: And that.

Because if we have a closet creates sustainment for example, one class creates a.

Speaker Change #107: We'll basically.

Speaker Change #107: Give us.

Hmm.

The ability to modify that in there so we'll have an interface.

Yeah, they generate the whole statement as a Java object.

And then.

Speaker Change #107: And then we'll have different implementations and we can have for example, an implementation will drive today, we could have an implementation for comedy and if we need to add in.

We have multiple stay membrane does we can have a jason's team member in there. We can have a tax payment brain. There. We can have a X M. L. A the same printer and so on.

Speaker Change #107: A new type of play in the future.

Speaker Change #107: Which is to add a new type of calculator, but we wont have to modify these class at all.

So that's a great advantage.

Martín Migoya: Conditional, with..., polymorphism. So what we would end up having is the following: This is CALCULATE. The method for calculating the amount, depending on the. So, we could create an interface called..., amount calculator, for example, or the play type calculator, and give us the ability to modify that interface.

And that is the what they're seeing what by following the single responsibility principle, we can get that level of abstraction.

Speaker Change #107: We just need to add the new interface and that's it.

So that that is the that is why we want to follow the open close principle, because we want to have the ability to extend their behavior without modifying existing classes.

I don't know if there are any questions. So far it seems like everything.

Okay.

I'm checking also if there are any questions.

Speaker Change #107: Another.

But it seems like everything is fine for now.

Speaker Change #107: Another way in which this is not following the principle of open and close is.

Alright.

So.

Martín Migoya: So we'll have an interface. And then we'll have different implementations. And we can have, for example, an implementation for triage. We could have any comedy, and if we need to add... Neal Guy, which is on a new time.

Speaker Change #107: On the access to the to the data.

The other thing that we need to bear in mind.

Speaker Change #107: So this is accessing the D.

Is that.

Speaker Change #107: Data here.

Speaker Change #107: Here.

There are all the principles and the other principle that I can see.

Speaker Change #107: But maybe we can have.

In here that is not being followed.

Speaker Change #107: A different layer for accessing the data, we won't be doing that refractory, but and and it's it's receiving the data as a parameter so that is not as bad.

One called the open closed principal.

Well what would be a violation of the open close principle.

Martín Migoya: We won't have to modify, choose me. The New Interface, and that's it. So that is why we want to follow the open-close principle, because we want to have the ability to extend the..., without modifying. Another way in which this is..., not following the principle of open-close, access to the data. So this is. They are here, but maybe, a different layer.

There aren't two basically.

Speaker Change #107: For example, if we would have the data here.

Remember I said I want to extend this so that I can.

Speaker Change #107: Awesome.

If we would have the data as a field for example.

Have a Jason.

Speaker Change #107: And and.

And it's it's a month.

<unk>.

I cannot do that I would need to put the logic for Jason breathing in here.

Speaker Change #107: And it's not a.

Speaker Change #107: Let's say an interface that we can access data.

So if I had to do this.

Speaker Change #107: That would be better that would be.

That means I need to.

Speaker Change #107: More oddly loads.

Getting the middle of the code and start checking if it is if I want to bring in Jayson or if we wanted to bring indexed.

Martín Migoya: We won't be doing that, receiving the data as a parameter. So that is it. For example, if we had the data here... We would have the data as a field, not an Interphase that we... Page. That would be better. That would be great. Since it's receiving it as a parameter, we could say that. Database, stay beyond, No. So our objective is to refactor this so that we can add our new JSON. So I'm going to try it.

Okay.

Speaker Change #107: It's easy to receive any of that parameter, we could say that.

These data could have come from a database or.

So this is not easily.

Speaker Change #107: And arrest API or whatever.

Able to say what one.

And why.

Speaker Change #107: So it's not it's not bad.

Do we say this violates the open closed principal.

Okay.

Let me <unk>.

So.

Open close stands for.

Speaker Change #107: Okay. So our objective is to re factor. These so that we can add our new Jason statement.

And a glass should be open.

For an extension and close for a modification so.

Speaker Change #107: And his team and bring them.

Usually you don't want to modify your glasses too much.

Speaker Change #108: So I'm going to start.

Speaker Change #108: Bye.

You should be able to extend the behavior of your classes.

Speaker Change #108: Are you changing the name of this.

Speaker Change #108: I'm going to say this is going to be simple.

So if you want to modify something then you should have the appropriate interfaces.

Speaker Change #108: Thanks.

Same in printer.

Martín Migoya: I have a test, so that means... I wouldn't be able to run this test. It wouldn't... because it was a simple renaming, I know it.

Speaker Change #108: I'm just renaming.

So that you can extend that instead.

Speaker Change #108: Okay.

You can see though modifying the classes.

So for example.

And I have a test so that means if I broke anything.

If you have a if you have an interface.

Speaker Change #108: I would I wouldn't be able to run these days.

Bye bye, having an interface you can.

Wouldn't bus so, but because he wasn't simple renaming I know it wasn't a this is not going to cause any problems.

Create new implementations of that interface, so that would that would be in alignment with the open closed principal because it's saying okay. You can you have this interface you can grade new implementations and you can switch.

Speaker Change #108: After the arena.

Different implementations and that would be okay.

So these clos.

Violates the open close principle in many ways.

One of the ways is the different formats. For example, I cannot change the format I had to modify the code a lot.

So that I can I can bring basing Jason.

Another way in which these violates the principle is the switch statement.

This switch statement.

Hum.

The forces me to boot here, a new case.

So if I want to create a new.

A new type of play, let's say Romans.

I would need to.

Have here the logic, so I would need to keep adding lines of code to these glass.

And that.

It's probably a lot of lines of code for a single class.

What I'm, saying is wrong these such statements because sometimes they are good.

But in many cases, we can also modify these behavior in weekend segregate this interface.

By using <unk>.

<unk>.

In refractories technique.

Cold rig.

Plays.

Conditionals.

With.

Polymorphism, so what we would end up having is.

What is this doing this is calculating.

The.

This calculating the amount that has to be paid.

Depending on the different place.

So we could create an interface called the <unk>.

Mount Calculator for example, the or the play type calculator.

And that.

Will.

Basically.

Give us.

The ability to modify that in there so we'll have an interface.

And then we will have different implementations and we can have for example, an implementation with tragedy, we could have an implementation for a comedy and if we need to add.

A new type of play in the future.

Which is to add a new type of calculator, but we won't have to modify these class at all.

We just need to add the new interface and that's it.

So that that is the that is why we want to follow the open close principle, because we want to have the ability to extend their behavior without modifying existing classes.

Another.

Other way in which this is not following the principle of open close is.

On the access to the to the data.

So this is accessing the data here.

Here.

But maybe we can have.

A different layer for accessing the data, we won't be doing that refractory, but and and it's receiving the data as a parameter so that is not as bad.

For example, if we would have the data here.

Awesome.

If we would have that either as a field for example.

And in.

And if it's a month.

And it's not a.

Let's say an interface that we can access data.

That would be better that would be.

More oddly loads.

Hey.

It's easy to receive any of that parameter, we could say that.

These data could have come from a database or.

And arrest API or whatever.

So it's not it's not bad.

Okay.

So.

Okay. So our objective is to re factor. These so that we can add our new Jason statement.

Steam and bring them.

So I'm going to start.

Bye.

Are you changing the name of this.

I'm going to say this is going to be simple.

Thanks.

Damon printer.

I'm just renaming.

Okay.

Yeah.

And I have a test so that means if I broke anything.

I would I wouldn't be able to run these days.

Wouldn't bus so, but because he wasn't simple renaming I know it wasn't a this is not going to cause any problems.

After the renaming.

We'll start looking for the different things that we can extract.

Alright, so we have.

This calculation here over here.

And so.

These variable here these amount.

This is a counter basically it's accumulator in eastern accumulates an accumulator value.

So we should probably put this.

Why why do you see the accumulating.

Right.

It is set to zero each time right.

And depending on the value.

And depending on the on the on the on the case basically.

It's returning a different amount.

So what we'll do is.

To make it easy these basically saying.

The only output for the season the amount right. These amount so we're going to extract this.

Remember, we want to extract code, we do option command and EM.

In Mac and if you are in Windows, you would do control old and EM.

And that's a cow you made.

Okay. So now we have at least extra.

Extracted that piece of code.

And we can go to our statement printing test.

And Randall this and make sure that everything is still running.

That should be the case, which is D day automatic refractory.

So we'll see.

Hum.

Some pain.

I think something's wrong with daily Jeremy to restart it.

Let me just.

Close this project.

And reopening it again sorry.

Hum.

Yeah.

I'm going to put it here.

Okay.

Yeah.

Okay. So now it seems to me.

Okay.

Something was wrong with my intelligently I see a question in the meantime.

So it says I have seen that that go doesn't define a variable type.

That's a good practice in upper jumbo versions or is that.

What we are trying to organize.

Actually.

I've seen.

I've seen it work both ways some people prefer to declare the the time some people don't.

And.

I usually use these these methods.

Having the virals without type.

Does it makes the coach shorter and you don't really usually with the new Ids, you don't really need to.

Go to the declaration to know the tide. If you if you step over the wire for example, he would tell you that it's a stream or you will tell you.

The variable is an integer like this like what I'm doing here.

So that shouldn't be a problem.

Alright, so now, let's try and run the test again.

But I promise he was running before.

Okay. So everything is running now.

Right.

So I did that refractory for the <unk>.

In here for the calculation of the amount.

And everything's still runs as it as it was working.

So now I'm going to ask I would still need to add if we if we want to either new.

Type I would still need to.

Are they like this and then.

Do these with the amount and so on so if I really want to do it.

What I would need to do if I, if I want to make this follow the open closed principal.

I would need to.

Put this.

In an interface.

So I'm going to do just that.

Let's do it.

And the idea in here would be.

Let's create these in their phase here.

Sure.

New Java class.

These would be called.

Uh huh.

This fiscal year.

Play time.

Mt.

See you later.

Okay.

And he's going to be any difference.

And.

By doing these in an interface, where weird trying to do as well is doing something called the.

Where we're following the interface segregation.

So we're trying to segregate different interfaces, so that we don't have.

One interface that does everything we can have multiple interfaces.

And.

And usually that's what we what we want.

Okay. So let's.

To implement this.

And this interface will simply.

Have these method.

It will have a method.

Yeah.

Groups.

Like here.

And.

We are going to.

Put this method in our new interface.

Yeah.

And now we can create implementations for into four these interface. So how do we do that.

If we if we want to make it very quickly we can do it with the E bike leaking.

In in Mac option enter or in Windows Alt enter.

And he will prompt these and you can say implement interface.

And weekend.

Name our interface for example, and see the play di will replace Playtime, which is a generic term.

With.

Tragedy.

Which was one of the times.

And in here bronze the different methods that we want to implement so this interface has only one method. So we will maintain.

And here.

And now a returns zero.

So now we would mean too.

Go in here.

And basically copy this bar.

Yeah.

If we go to the tragedy here.

Alright.

So.

Let's declare the viral illness.

His name is really bad so we're refractories as well.

Let's just call it amount.

Yeah.

And we want to return Dynamo.

Okay.

And now also.

Let's go back to the amount of calculator and implement.

The interface, a second time, but this time for.

<unk> comedy.

And then again implement.

We go to through the statement printer and we co pay this next year.

Yeah.

So we have a.

And you are you will here and we will.

Thanks to the name.

Maybe that's a mountains.

And that's the return.

Uh huh.

Fine.

Good.

Alright.

Yeah.

Let's see.

Okay. So now.

We can have.

Our calculators in here.

So we could have a month.

The map and the key of demand will be the type of the play.

And.

The value of demand will be.

The actual calculator. So for example, these would be.

Lead time and.

And we use a generic type here.

The interface.

And let's just call them among calculators.

And the grid is mob will do it very quickly unless you say vinyl private.

Sorry private.

Final.

And then here.

A month.

Sure.

And here we'll.

Carl maybe.

And these will be new comedy among calculator.

And.

Try Judy.

And in here, we would say new tragedy.

Mound calculate.

We're good.

Fine so now we can replace this.

Whole thing.

Almost.

With.

Our calculator them up so we're going to say go.

<unk>.

These would be.

Yeah.

Calculators.

This is a static I need to change it to non static.

And my own calculators I can access it now unless you say again.

Good.

And we will have two axis by the play type because remember the key is at play type.

This will return a calculator right.

Let's just call it among calculator, we could even.

Not putting into Avaya will if we want we will do it later.

And the amount calculator will say.

Calculate a mound.

And we'll have to send the performance on the play.

And Richard.

And these checks here, we would need to.

To check we don't have a calculator for these we would need to say for example.

Yes.

Our mountain calculator.

If it is now.

Then we will these are let's say.

Just leave it as we have it for now.

Alright.

So and we can actually get rid of these variable.

And you can see.

How.

E C.

Please go becomes.

Right.

So now.

If I run the test.

And.

Go to the desk glass.

I should be able to run this test and everything should work the same.

Success.

We've done it.

So now.

We have our calculator.

Interface.

And you can see how E C that was.

That's extremely easy going.

And now you can also see how this code is starting to take shape.

And we're seeing how how actually.

Things are.

Starting to get separated so.

What else.

So.

What else can we do.

Do in order to.

To improve the scope.

So we have separated.

The different.

The different regulators and now we have.

We still have this this thing that I don't like the result, right. So the result.

Is printing.

Yeah.

But the breathing is done with.

It uses the invoice and it also yeah.

Uses the calculation here so in here, we have some more some more calculation right.

David.

It's to grabbing the amount.

And it's divided by 100 for some reason.

Why is that.

It's providing.

Yeah.

Currency instance.

Right. This is probably because of the currency.

Thing going on.

Yeah.

So these calculation here we want to.

So you see how the calculation diffusion we missed this.

This should be in the calculator.

Up here.

So we had to separate this.

Cause.

We are always doing this.

Four format thing, but its only four formally.

We're not using these for.

Or another thing for.

For the total amount was still use.

This amount.

Right.

You can see how everything is being.

Mixed up here.

Alright.

So to fix this.

And we are doing this format being in the middle of their calculation, Brian because here we're.

Calculating so.

We will have to.

We'll have to move these calculations away.

But before doing that we also have this this thing here we don't like.

If comedy.

Under this.

Right and if it is tragedy, where do we do what.

What if we have some.

All the things that we wanted to do in the future for tragedy.

I think we should do the same there waiting for.

For the amount.

But in this case with calculators.

So with the with the credits right. So.

Let's just.

At least put everything everything regarding grid is that's.

Let's just put it in.

Extract these into a method.

Right.

Enable why now.

Yeah.

Alright.

Sundar.

It's adding to the grille is alright, so let's do this.

Just to make it more reasonable.

Let's say these grades.

And there should be zero.

So we should say these mandates.

And.

And in here this.

Brett is.

And finally, we would say.

Volume credits.

Plus equals.

This.

Great.

Okay, which is as saying that we were doing with demand.

In here.

Alright.

So now we should be able to at least this drug based credits.

Yeah.

Right. So now we're good say gong.

<unk>.

Great.

Again, we're getting rid of logic that we don't want in the printer.

So let's move.

Again, we could okay.

We could run the test everything should be fine because there wasn't an automated.

Almost automatic.

Reflector, let's just check just in case.

We don't want to move a lot of pieces and then there's this move small business days, there's more pieces in desk.

Hey.

Right Everythings working so now we were just.

Uh huh.

Yeah.

We could move this.

Also in a different class.

Reason being is that the calculation of the credits.

Can vary.

By type.

For now, let's just leave it here.

So we have the credit is we have the amounts.

Right.

And.

Still have these which is bothering me.

They're resolved.

So if we want to bring this in different formats.

The resold shouldn't be a string.

Right they're resolved.

B E.

An object that can be turning to stream. Eventually so we could we could create these object that we want to.

Two.

We won the object to represent the statement because in the endless string thesis statement okay.

So let's just create.

The new object in our model here.

And we'll say.

Statement.

Okay.

Good.

So the sustainment.

We will see the same and we will have.

A customer.

So we grew.

We could have this is a stream okay. So it will have in the statement, we will have a customer.

Actually let's use record.

We'll see but we can use it.

If we can lets use it.

So these would be string.

Customer.

Then we will use what else do we have in the statement.

Let's see let's see.

Where are we seeing them.

On the customer.

And then we have one nine per performance okay.

If we look at this same man printer, sorry, or the output in the desk.

At least one.

We have the name of the client and then we will have <unk>.

Were they for and performances.

And then we have a total amount.

On the credits.

Right.

So.

We will have definitely will have the total amount and the credits we could put it as part of this statement.

So we could say.

And total Mt.

And.

Credits.

And the other thing that I mentioned.

As the lines right.

So every line will have.

The name of the play and also the <unk>.

He has.

The value the amount and also the audience.

So we can put that in this statement so.

Actually will need any will need at least.

We'll need a list of lines.

So we could create a new class called statesman.

Fine.

Right.

Okay.

I see there is another question.

Which says for more complex interfaces do you use any tool to make it quicker.

Or do you prefer to keep your interfaces as simple as you can.

Always keep it as simple as you can.

Definitely I'm, not sure, which tools youre referring to.

But I don't I don't use any tools for creating interfaces other than my idea.

Whenever I eating identify and.

And interface I would just created and then.

Star using the grading there.

The implementation.

I don't know if you're referring to.

Which kind of indifferent youre, referring to if you're referring to let's say arrest interface or that kind of things in those cases, you do use tools or you can use tools like <unk>.

Spring M a C.

Or you can use.

Jersey.

But this is a different kind of interface.

I'm speaking about now.

So yeah just.

Keep it simple.

So it will grade these statement line.

In our model.

And the statement line will represent I wanted us a record sorry.

This statement line will represent.

Single line, which is going to have an amount.

A number of audience.

I think that's all we have.

Okay.

Now we imported the lease to here.

So we should be able to start creating this.

This.

Sure.

These statements.

So for example in here.

We.

Wanted to foods.

We'll let let's just.

Create here in your statement.

Actually no I don't want this.

I want.

I wanted to create a new list.

Overstatement lines.

Let's just do a new horizons.

No.

Yeah.

Okay.

Each line.

So for each will just produce a stamen late so that's a new statement.

Line.

And every statement line will have.

Amount, which is the this amount.

And it will also have the audience so.

Hey.

Oh and also will have to add the play name.

Stream.

Okay.

We could have the whole play for one.

Okay.

And we can use all the data on the page.

On the plane.

If we want.

So we would say.

And these.

Performance the audience.

So now we have created a statement and we can add it to our statement lines. So.

Line.

So we are we're adding.

Yeah, Arnie, we want to make this even ensured their weekend.

We can get rid of these amount and put it in here.

Okay.

And we can also get rid of these credits.

And we good to say, adding to the accumulator likeness.

Okay.

And.

The total amount is something that will calculate later, we don't really need it now.

Okay.

Yeah.

We could.

Or just to keep everything working for now let's just put this statement.

Into a variable.

And we can use it in here.

Just to keep everything working.

So now we have statement lines.

Yeah.

And.

Let's just see if everything keeps running even though it doesn't make a lot of sense. These glass for now that's just test.

Okay.

And everything keeps working.

Lynn.

So that's.

Let's move on.

Now we have.

To move.

So we have the staying in line here.

Misused.

Let's just create these statement Albion.

New statement.

And the statement we said he has.

This.

The customer.

He has.

The total amount.

He has the grid needs.

Yeah.

And he has.

This statement lines.

Okay.

That's brilliant.

Alright.

So now.

We need to start.

Now that we have a statement.

We can we can reorganize the code in a way that everything done.

He is regarding this day many of them somewhere and everything that is not related to this day many somewhere else.

So how do we do that.

If we can get rid of this line in here.

We would have everything there has really is related to the statement in here basically.

But we just need to get rid of this line. So how do we do that.

The lease line.

<unk> brings the result.

For each line.

So.

What we could do.

Yes.

We will have.

We will have here.

I'm going to be using a bit of functional programming.

So we're going to.

If you haven't watched.

The Java go compound function of programming you can watch it.

That was our previews gogan, which was would be where we learn all of the functional tools and Java.

So I'm going to be using that at the moment.

To simplify this into.

We'll use his statement lines.

That statement lines.

And I'm going to.

The same stream.

So a month.

So I'm going to be.

<unk>.

The statement lines, using the phone or pattern that we learned.

And we're going to be.

Mapping a statement line.

Into.

Groups.

We're going to be mapping this.

Staying in line.

Yeah.

Format.

Great.

Which has happened.

I I believe is something that I shouldn't have.

Yes.

That was a problem.

Yeah.

I'm going to do it here.

So.

Hello Lana.

We have statement line.

Stream.

Then mark.

And we're going to Mark a statement line Mr. Scott S L.

Using this.

Okay.

So remember we have.

Porridge.

We're staying in line.

The play.

Oh, sorry, it's called S L.

The play.

And then we have.

Ill.

Round and then we have <unk>.

The audience.

<unk>.

Staying aligned do we have any entertainment lines the audience.

Okay.

Yes.

Maybe there's a spelling issue there.

That was a barrel.

Okay.

Alright.

So now we can.

<unk>.

We can do a join.

And we can put everything into.

The result.

Yeah.

So what we're doing here basically is.

We're transforming.

These lines.

Into.

The.

We're processing each line and we internally need into a forum where format being it using the tax form a thing.

Right now.

Now if we can see everything there has that is related to former thing he's here.

And everything related to Sustainment is here so.

So we could.

What I received from both my Undergrad and my MBA was absolutely amazing without the flexibility of a program like AMU. There are so many things that I won't be a part of it is open up doors that wouldn't have been open had I not had that education.

More days and probably this.

And.

We can see that everything that we actually need is in this statement. So the thing that we need to export at the Emmys This statement Bakken.

If I can I can show you this right.

Right, you're saying instead of calling the lines directly I will call <unk>.

Damon Don.

Statement lines.

And then the same is going to happen with the with these amounts sustainment.

Amount or total amount.

And then staying lindahl credits.

So now everything comes from this statement.

So I don't really need these variables.

For processing.

And I can I can show you these by running the test.

Okay.

Yeah.

And everything's still runs right.

Oh rounding error.

What was the era.

Yeah.

Yes.

Yeah.

I think I added.

Yeah.

I should remove these enter from here.

That's the good thing about having deaths I had two enters added into my.

My mapping so now that I can.

Remove it.

Let's see if it works good or it could not work yes.

So I need that enter here.

And I will join.

Without using our the limiter.

So that will make the trick.

Then we'll have it working.

Right. That's good right you sell when it happens.

And they're right here was been input twice in the joining adding here.

So because we didn't want we are using in here, we don't want to hear.

And that's that's that's it.

That's the good thing about having tests, we can play around and with still.

Sure that we haven't.

Have a problem with our code.

Right so.

Now we could.

We could have these.

Into something called our stamen generator.

So we would say.

Or.

January.

Statement.

Okay.

And again these generate statement.

We can move this method.

Into our into our new glass.

We could call. It for example.

State.

State men Gen.

Generator.

In this class.

Well basically have this method.

These two methods.

Really.

Let's go to our statement generator.

Okay.

And let's make this public.

And also they calculate amount.

So.

In our printer, we have the calculate them on method as well so we will put it away.

And we'll put it in the statement generate there as well.

And also we had to move from this payment printer.

Our calculators.

So we go to the same and generator.

And we have our calculators here in the tub.

And.

Finally.

We'll add.

And you feel here I know.

Private vinyl.

Damon generator.

And we will.

Initially I see it as a constructor.

Right.

We need your licensees in the constructor.

And.

We will use these guy here.

And also in our test now will have to go.

And thinks the constructor.

Yeah.

So we can say.

<unk> statement generator.

And the same.

In here.

Okay.

Now everything is working so now you can see.

How small the SCOTUS.

And this E Z also everything.

He's related to printing.

This is all about format thing.

So we have a glass the.

Now we created by just moving coda around in refractory.

And we have another class that only brands.

By around this test now.

Everything should still work.

You see.

This is.

This is what we're doing by just a plain.

Solid principles.

So what I'm going to do now is I'm going to create.

Okay.

And we integrated package.

So I'm going to say.

Printers.

Right.

And in this package I'm going to move these screens are here.

So that brings.

I guess.

The.

The printer doesn't really need to know the invoice and the plays.

We could we good.

We can make the printer actually receive only statement. So if we would say.

Statement.

Like that.

And we could say stay men.

Customer.

We remove all days.

So we can remove this statement generator again.

And if we go to our test.

Let's go to our desk.

So lets remove these payment generator.

From the variable.

And let's just put it outside.

And we would go.

Statement generator.

Generates statement.

In boys and plays.

And we would pass these statements as a parameter here.

Sorry, no here.

Here.

In the brain method.

So we can actually use this code in the other test.

That all sounds the same problems.

And now everything is re factor okay. So.

You see what's going on here right. So we have.

Re factor the glass in a way that.

The printers that and really need to know about the generation it doesn't even generate anything it just a printer.

So now if I run this test.

Everything should be the same.

Okay.

And everything still works.

Now, let's move quick.

And that's going to I'm going to create.

Hum.

Going to create in the printers package that I am going to move one my printer here.

Okay.

And <unk>.

I'm going to create a new interface.

And he's going to recall statement printer.

Yeah.

And it will have this method brand.

And now I'm going to create a new implementation.

And I'm going to call. These.

Jason stay membrane too.

Okay.

And the adjacent Tainment printer.

Going to take advantage of it.

A library.

Michael Jackson.

So I'm going to be adding.

Jackson do our palm file.

Hum.

Jackson to our bond file.

We are going to.

I have to look for the.

Dependency I'm looking further dependency now.

Where is it.

Just bear with me guys.

And.

Okay.

Okay I'm here.

So we're going where we're in the bonfire here.

And.

We are adding.

Okay.

We're going to add.

Why isn't it.

Yes.

I'm trying to add a dependency here there it is.

So we are adding these dependency.

And <unk>.

I'm going to copy.

These so that the.

Team from global and gun put it in the chart as well.

So these dependency will allow us to serialize.

The statement into adjacent.

So.

He is a desk that we're going to do.

Let's create a new test.

Okay.

Or the Jason Brenda.

Okay.

And the cool thing that now that we have divided the printer from the generators that we don't really need the desk. The actual generation of statements. We know it works so.

So we we can do a printing.

Without testing the generation and that's a single responsibility principle in action.

We don't have the responsibility to generate statements. So we don't need to create a statement from scratch we can use.

We can simply say new statement.

Okay.

And on some stuff here like for example customer Marty.

Then.

What else do we have.

And the same and we have the total amount, let's just say.

<unk> thousand.

We have the Greenwich lets say 50.

And we have this statement line so.

We can say leased or.

And it's just that one.

Let's just say that.

<unk> should be.

Hey.

So first in your statement.

Line.

And the same in line has a play and has.

Ah the Audi the amount.

And he has the audience.

Let's just say 40, okay.

And the play will have.

The name which is hamlet.

And what else.

He hasn't died.

Which is strategy.

Okay. So now we have a statement and we don't have to test the whole generation of this statement because we have separated those concerns and we dressed that our glasses statement generator was already tested.

And it would be good to grid separated tests for these eventually so we can we can re factor our desk our original test to test.

Two things in separate.

But let's go back to our desks.

We have this statement and we want to bring data to Jason So.

What I'd say.

Ah stay now.

New Jason Simon.

Same in printer.

And we would say Jason stay membrane there the brain.

And these statements.

And these will return.

A strained.

Jason stream.

Yes.

And what we'll do is we'll transform.

We'll use object mumper.

Uh huh.

Which is a Jackson glass.

Okay.

And we will use these object mapper to.

We value.

And we will read this statement.

Now, we just generated as a string.

Into the statement.

So Jackson can do that if it is appropriately.

Formatted Jason we can do that.

I'm sure.

And then.

And we'll throw these assumption.

Now.

And then we'll say.

Asset equals.

For example.

Thanks.

Statement.

The customer.

Is actual statement the customer.

And then we could say we can compare something else we could say for example.

Ah stay man total amount.

And the actual one and they showed much.

Right.

And so that we can see that we can we have actually bring did it.

So the Union you believe me.

Yeah, we have printed this into adjacent let's just say Jason.

Strange statement and these would be printed in their controllable.

So these one word right.

In one word because.

We haven't implemented this method this method returns no that brings.

So these will.

This will be in red.

They will throw a no point their reception.

So.

We will have to implement this.

Yeah.

We will use object mapper.

And we will say.

Right value us a stream.

Would transform this industry.

And.

Well surrendered win yeah and rule.

This is something that we will have to reflector, but.

We'll just leave it for now as a run time assumption okay.

So now.

Let's see if this works.

These storms this through the statement into adjacent stream.

So this should work.

It didn't.

Right.

This the blade glasses.

Making troublesome so.

The problem here is that we don't have.

Uh huh.

Let's just put a business driver.

Great.

Whereas these being used.

This turned these glass into a regular.

That's removed this from here.

So these glasses are regular now we don't need this constructor.

And we are using the play.

In this demand generator.

So we would say blade time.

Let's say we.

Any other <unk> compile issues with that but.

It seems like we fixed it.

There's one more.

Name.

So now we should see that Jason being generated.

In our desk.

We run this test and there are no more combined issues.

Okay.

A word.

So now the <unk>.

Jason was screened so now we see that we have printed the same statement in Jason.

And we can we can bring the same statement if I can if I say for example, new.

Thanks.

Sorry simple.

Thanks.

And I generate this statement.

Simple DEXTENZA brynn.

Brent.

Same statement.

Simple things.

Brent.

And I put this in the system Albert as well.

Yeah.

We will have two statements one in Jason and one in simple text.

Yes he.

Here's a Jason one.

With the play and everything and here's the.

Symbol next one.

That's the power of applying the solid principles when refractory.

How how long did it take me to create the Jason version nothing literally nothing.

And to do it as a desk.

It took me nothing I just had to re factor.

So that I could extend it quickly.

And and I could now grade even more implementations of their brain there I could read in X M. L version I could create.

Another Ah in H T M L for Buda needing to a webpage for example.

And he put it into a table a P D F printer I could do.

Whatever they want.

And that was all achieved by using the solid principles.

So I don't know if you guys have any more questions.

But.

This was all that I had for today.

And I hope.

This was.

That's useful and S. Entertaining for you as it was for me.

Of course, there as there are many things that can be re factored into into these.

There are things that are still are not good in that version of the.

The code, we can still improve it and it's good to always be improving your code and make any more extendable, but if you have any questions. Now if you have any comments whatever feel free due to common here or feel free to reach to us and.

Remember also.

That we.

<unk> have.

Our.

The next session.

Next week next Tuesday.

So if you haven't signed up yet use these QR code. It will it will lead you to a sign up page, where you can sign up for the following sessions.

And also if you haven't watched these session completely and you want to watch it from the beginning.

This will mean Youtube the same as all the other sessions that we had.

So you can watch and you can watch all decisions.

As many times you won and the code for.

For the solution will be pushed into a different branch call solutions. So you can you can see that solution on your own and compare it and you can come up with new refractory <unk>. This is not the only solution you can come up with your own and you can improve it even.

So if you enjoy to these.

<unk> please.

Leave a common reached to me you can reach to me on.

On Youtube or in and Linkedin on and you can reach to blow in as well.

So that's all we have for today.

And.

Thank you for watching.

And now the scene you niche next Tuesday.

Bye.

Okay.

[music].

Oh.

Okay.

[music].

Okay.

[music].

Hello, Hello, everyone welcome to the July go camp if.

If you lie goading youre in the right place.

My name is Matti Mattila said I don't know I am your host and your.

Your Java Cocom coach.

I am a subject matter expert here at global and.

And over the last four weeks, we have been doing a series of.

Episodes, where we have been learning about how to refractor.

And applying different special techniques for refractory. So we have seen so many things over this call.

A couple of days, we have seen how to test an application that doesn't have any deaths than it's a legacy application. So it's hard to get into it.

We also have been seen how to do solid refactoring, so using the solid principles to guide us in our refractory now the code.

We've seen also helped.

How to do domain driven design refractory so using these principles as well due to the re factoring.

And now we're going to put it all together.

Into.

One very very challenging piece of code.

So we're going to be sharing with you.

The code, which is in the Guija repertory.

As always I.

I Hope you have enjoyed D series.

And.

Hopefully this is not the the the.

The last series that we have we'll have many more so.

Let's.

Start, though again a little bit.

Well, what we're going to do today, so I'm going to.

Sure My screen here.

And yes, we're going to reboot in everything together.

So.

We'll just have a brief recap of everything we've seen there in these couple of sessions and remember if you haven't seen the last sessions. They all available in Youtube for you to look as many times as you want so you can watch it and reward CIT and practice.

You also have.

The Guija repository is where you can download a code in practice as much as you want and you can even drive things that are that we haven't tried it in our ethics exercises.

And also at the end of the talk of the of these session we will have.

We will share with you.

Formation of our global and careers and also will share with you.

A feedback form which would be also maybe you can fill.

Because it will help us a lot.

In our understanding what we have to do how do we have to improve what things you like one of the things you didn't like and so.

Alright, So let me recap.

So one of the things that we've seen.

From.

During this the last couple of days is.

With.

We've talked about the solid principles.

And these solid principles.

We're seeing the singers one so really the green principal the open close principal and all of these.

The principle we've used.

In order to do re factoring.

So.

In this episode will also going to be using.

Or two of these principles, mostly their singer responsibility brain simple the open close principle the interface aggregation as well we'll see.

Now all these principles are going to be helping us in today's episode.

Another thing and I cannot find the slide for it now but.

Another thing that we saw in the first episode was.

How do we test an obligation that is legacy.

And he doesn't have many desks and we want to refractory and we won't do a new features on it as well, but we don't know.

If we can touch it.

So.

How do we do that how how do we do that.

And we we enter the use the library called desk on Dana's that was really helpful to create a a containerized version of mice equal in all the dependencies of the obligation and in this case, we will also be using desk containers for our desk.

And then we also spoke about our domain driven design or D. D D.

And how we can use the principles of domain driven design in our coding for refractory.

Because we're factoring it's also.

The art of making our KOL data, it's a way of making our code more reusable more easy to understand and so on.

So.

We will be using as well.

Some of the principles here like the repository as principal.

The <unk> language, so we're going to try and impose the language now we need to use.

Our tutorial.

And.

So if we move forward I'm going to be talking about our tutorial today.

Because our editorial today is a very interesting application eaten all obligation.

And it was used by some shops.

To you do a M.

Layette loyalty program right. So those programs, where you buy things on a shop and then.

Or in a store and then you get points and you can redeem those points to get discounts. So that you can.

So that so that you get the customer.

<unk>, a reward for being loyal a loyal customer in and because they come back.

And this is an old program, so it's using very old technology.

For example.

So what we having in this obligation is.

The shops.

Their stores.

I would send all the transactions at their users were making.

They would put those transactions into a necessity be server.

For those of you who don't know what NSF DB server is it's basically a an application.

It helps you manage the desk of a computer or any any server right. So if we install a N S FTP server.

In your laptop you will be able to see all the files and you'll be able to add new files on it. So if you store and is it an SMTP server into a remote server then you will be able to send.

Send files to that server and you will be able to.

Send them securely so SMTP servers have.

Users and passwords and all that so you can manage the access studio to defiance.

So that's the whole point of having SMTP.

It's a secure way of sharing files between obligations is in Norway.

You will see these in the banking industry in the airline industry and in many or there are many industries that have been around for a long time, they would still use these technology.

Though they are moving away from it because it's a it's it's an old technology that doesn't allow for.

Real time.

Operations.

So for example, now so the shops the stores would send the debt transactions into the server.

And put them into a file.

And then there is a Java program that is a schedule.

That runs every every day and it will process their transactions and based on the transaction as it would create a new.

A wood grade points for the user.

And if the user has gross any sort of threshold between the time that they have been storing those points, though they have a two bonds.

The time for starting the points.

And is that two months are over then the points are redeemed and you get rewards. So for example, a discount of five or 10 or 15% depending on how many points you you accumulated over those two years does two months sorry.

Alright.

So this is the obligation that we have and I'm going to show you know what we want to do with this application.

So this is our target obligations.

Now customers will go to the stores and the stores will send.

To our application.

Using rest Apis.

Customer transactions. So this will be a lie process. So this will happen.

In real time.

Is there a store.

<unk> has a has a that.

Transaction that transaction will go directly to our our.

Our obligation through arrest API.

And also.

We will add in our.

We will also have a rest API for customers to redeem their own rewards. So in the in the old obligation the customer needed to wait for two months until the reward was automatically.

Redeemed.

But in this case or the points were redeemed.

But in this case, we're going to change it so that they can.

They can do there.

They're they're redeemed the redemption immediately in real time.

That is really cool and to do that we're going to put another rest API on top of this which can be used by a mobile obligation or buy a web browser.

So usually mobile obligations and web browsers cannot send things through SMTP.

Cause F D. B is not a protocol that mobile users in general.

So.

To do this we're going to use a http and we're going to use air rest API.

And everything a stored in mice equal right. So the rewards will be creating mice equaled and so on there that doesn't change because we also has rewards in mice equaling the old case.

Alright.

So that's why we're going to do.

Theres a lot of work already done. So if you have downloaded the kohl's we have grown the code you will see this.

Let's take a look at all the code and it will see.

These are project and this project will have.

These service. This is the main surveys of your loyalty points service.

Which has a these giant method.

Like we want to the kind of message that we want to tear apart.

And and never see again.

But we want to re factor into a better thing because we want we need to this is this a ski we need two refractory because we want to.

New functionality and these kinda co doesn't allow for new functionality.

And.

You will see that ongoing to be.

Moving things very fast because it is a long refractory I mean, its not huge its not like you cannot do it.

In a couple of hours, but I'm going to be moving really fast because a they are things are already done but.

But I want to show you at least what are those things.

And then.

Or are we also have.

A desk for this class.

So this class I have really created a test called the loyalty points <unk> service desk.

And so these these test basically.

Yes.

Testing three different scenarios is scenario, where the user doesn't.

It doesn't have any points in their database.

And then we send the file will only these content. So the fila with Sam has a user a D and the amount of points that the user has been awarded it's very simple.

And it could be multiple files, sorry could be.

Multiple I'm not files are how do you say it could be multiple users. So multiple customers. So we have a case where.

Where the owner who had it we don't have any case for multiple customers are alright, but we can have multiple customers. So we can have here.

<unk> three and.

40 for example.

So that's densify content.

Okay.

And so their user 80, and then the amount of points.

So we want to process that so we send it and the result is a reward so how are you.

How is a reward that a user has one if there is any because it could be the case that there was no reward at all.

Because the users may not have any any reward the drinking part here is that we have mice equal and we have the SMTP server.

How do we walk.

Walk around all that with.

With desk containers are all good friend desk.

Containers are these going to help us.

So we created a container for my sequel, and we graded a container for a N S. FTP server. So basically these allows us to create an actual SMTP server in our laptop.

Well by using Docker.

This is amazing.

And what we do in our test I agree. It is also a class called SMTP Youtube's.

And these will upload.

The file.

Into the SMTP. So this is emulating being the store right.

So the store will upload this file.

And then.

Are we.

Over time, when the time comes that process will start.

It will it will download the file.

Here it will download the file.

And he will.

Star processing right.

So.

I can I can run all the tests just to show you that everything is running.

And while we do that.

Let's see.

I'm just checking if there are any questions or anything like that and hi, everyone.

And really the the Commons.

And.

Alright.

So let's see.

Everything should be running in the meantime, when everything runs, let's just take a look at the code.

And you will see.

A very very upsetting things here.

We will see for example.

Of course, these glass weekend now that we know.

What why the principles are for refractory and and all that.

Weekend immediately.

Tell that these class does not.

Currency, there any solid principles at all.

So there is a S F to be reading in the glass.

Then there is.

What else.

Yeah, its MTBE old news.

After all these we have also.

Our prepared statement, so basically were going through the database.

And after the database we.

The.

What else.

We start preparing the updates for the database and in here, we have some business logic I guess so.

And here, we are we get data from the database.

Alright, so here's where we are actually seeing if we redeem any any.

Yeah.

If we are redeeming any of the work of all of the points. So their points are between 150 and 300.

And they the sequel to Blah blah.

So then the reward.

These days and the points go to zero right because if.

If you redeem your points than you have seen already worse.

Alright, the deaths are done and everything is working.

So that's a good sign.

We need to make sure that we don't break any of these tests.

In our refractory so.

Then what else.

There are either reward was no is there why is not know then added to the list of rewards.

And added to their budge, so that he can be updated so this is zane third batch.

So that we update the database.

And in here the same goes for the points.

We are updating the point, though we're going to insert the new ones. So there could be a customer that didn't have any bonds in the database. So we need to create a new record for that customer.

Alright.

So everything.

Is good.

Okay.

This is good.

So this is a huge mess and while we're going to do is start.

By applying the some of the basic principles so.

Any of you have any idea of what to do here.

I'd say.

We issued probably.

Get a.

The stuff of the.

S FTB out of this right because they.

This is a service glass, where we wanted to have a business logic, let's say so let's let's just remove.

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