Q3 2024 Globant SA Earnings Call
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Dr. Paret, Dr. Paret, Dr. Paret, Dr. Paret, Dr. Paret [inaudible]
Speaker Change: Good day, and welcome to GLOBAL's third quarter 2024 Earnings Conference.
I am Arturo Langa, Investor Relations Officer at Glowent.
Speaker Change: All participants on this call will be on listen-only mode. After today's presentation, there will be an opportunity to ask questions.
Speaker Change: Kindly refrain from raising hands, as we'll aim to address a select number of questions to ensure efficiency.
Speaker Change: Please note this event is being recorded and streamed live on YouTube. By now, you should have received a copy of the earnings release. If you have not, a copy is available on our website, investors.globant.com. Our speakers today are Martin Migoya, Co-Founder and Chief Executive Officer.
Speaker Change: Chief Financial Officer, Patricia Pomies, Chief Operating Officer, and Diego Tartara, Global Chief Technology Officer.
Speaker Change: Before we begin, I would like to remind you that some of our 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 risk and uncertainties as described in the company's earnings release and other filings with the SEC.
Speaker Change: Please note that we follow IFRS accounting rules in our financial statements. 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 published on our investor relations website, announcing this quarter's results.
Speaker Change: I'd now like to turn the call over to Martin Migoya, our CEO. Good afternoon, everyone. It is great to be back with all of you, and I'm really pleased to share that Clovan has had another strong quarter.
We have seen top-line growth, better margins, increased profitability.
I look forward to sharing our results with you.
Speaker Change: This quarter, we brought in $614.7 million in revenue. That's a 4.6% growth from the last quarter and 12.7% more than the same time last year.
Speaker Change: We see strong demand in our main sectors with our top clients and across different regions. We're growing our market share everywhere.
Speaker Change: For 2024, we're expecting the highest growth of any major IT service provider with an estimated of 15% increase in revenue.
Speaker Change: Our bookings are solid, with two of the biggest in our company's history secure in the last six months.
Speaker Change: For 2025, we're confident about double-digit revenue growth thanks to a strong pipeline and faster organic growth. As I mentioned during our last earnings call, AI is being adopted massively by our customers.
Speaker Change: They are using AI tools both personally and professionally. It is the biggest breakthrough since smartphones.
Speaker Change: As AI evolves, customers want more. Companies and governments need to keep up with these enhanced digital products.
Speaker Change: Last year, companies spent $15 billion on generative AI solutions. McKinsey predicts that spending could reach $175 billion to $250 billion by 2027.
At Globem, we're already capturing this opportunity.
in the first nine months of 2024.
Speaker Change: AI-related work generated over $250 million in revenue, up 120% from the same period last year. This growth is partially due to our AI power tools like Agur, Magnify, and GeneXus.
Speaker Change: With Global Enterprise AI, we can generate identical workflows to automate processes in every industry.
Speaker Change: At the same time, it can be a portal to connect to any LLM to both optimize costs or find the best possible answer between those LLMs.
Speaker Change: These tools speed up software development and improve the quality and security of the final product. Our clients are benefiting from these productivity gains. Recently, we helped a living bank to transform their COBOL-based system into Java microservices.
Speaker Change: In just 105 hours, we modernized over 11,000 lines of legacy code, reducing it to nearly 5,000 lines of state-of-the-art architecture.
We aim to expand our leadership as this business grows.
Speaker Change: Some analysts predict AI applications could add over $1.5 trillion to global GDP by boosting productivity by up to 30%.
Speaker Change: Organizations need sophisticated consultancy for AI adoption. Three years ago, we established our AI Reinvention Studios to meet this demand. We now have studios for 15 industries, with strong growth in airlines, finance, and connected experiences.
Speaker Change: For example, digital technologies are enhancing the fun experience at live events. People expect more from their favorite artists or sport teams.
This is evident in our partnership with the L.A. Clippers.
Speaker Change: Their new stadium, the Intuit Dome, is now open and offers the most advanced fan experience in the world. Fans can enter the arena and buy food and merchandise using facial recognition, which means shorter lines.
Speaker Change: Our AI technology powers some interactive promotional experiences, allowing fans to participate directly from their seat.
Speaker Change: It is the first time such technologies are used in a stadium this size. We are excited to bring this concept to more stadiums globally. The entry dome also houses our newest office.
Speaker Change: Keeping us close to our clients, it is just steps away from the basketball court. We're also working on groundbreaking projects in the Middle East, our newest business region.
Speaker Change: We have partnered with Kidilla Investment Company to develop the Playlife Connected Experience at Kidilla City.
Speaker Change: It will be a state-of-the-art digital ecosystem, a global destination for entertainment, sports, and culture focused on the art of play.
Speaker Change: Playlife Connected Experiences will offer visitors a seamless, personalized interface to Wikibands and manage itineraries with real-time updates and recommendations.
Speaker Change: We're growing in our established markets too. In Europe, our fastest growing region in revenue this year, we have opened new offices in Madrid and Milan.
Speaker Change: These offices will host AI innovation hubs, with Milan becoming our headquarters in Italy. Regarding M&A, we want to be a growth vehicle for ambitious entrepreneurs.
Speaker Change: We offer a unique startup culture valuing transparency and autonomy over corporate bureaucracy.
Speaker Change: In the U.S., we recently acquired Blamfactor, a specialist in financial services. We're excited to integrate their expertise in payments, banking, and capital markets.
Speaker Change: They work with six of the top ten payment processors and major banks.
Speaker Change: Finally, I invite you to our annual CONVERGE event. This year's theme is AI Disrupts, Delight, Connect.
Speaker Change: It is on November 21st, featuring speakers like Whitney Paltrow of Goop, Marcos Alperín of MercadoLibre, and Chris Young of Microsoft. You can register via the QR code on the screen.
Diego Tartara: Now, I hand it over to Diego for more on our technology focus.
Diego Tartara: Thank you very much. Diego, please. Thank you, Martin. For organizations to fully adopt artificial intelligence, they must integrate it into their products, strategies, and cultures.
Diego Tartara: To explore AI's impact on software development, we collaborated with the Massachusetts Institute of Technology for their publication, MIT Technology Review Insights.
Diego Tartara: Findings reveal that while generative AI is modernizing processes, its most significant impact is still forthcoming. Currently, only 20% of respondents consider it a well-integrated part of their software development life cycle. You can access the full report through the link on the screen.
Diego Tartara: AI agents represent a new frontier, transforming software creation. We are utilizing these agents throughout the entire development cycle, from product definition to back-end prototyping and application design, including BA agents and code fixer agents.
Diego Tartara: Our studio networks are central to these innovations. We are excited to announce the launch of the Digital Twin Studio within our digital network. This studio aims to enhance design and operations by creating digital twins that simulate and analyze physical processes in real time, thereby streamlining decision-making.
Diego Tartara: Additionally, we've introduced the Legal AI Studio, focusing on providing tailor-made technology and AI tools for corporate legal teams, law firms, and public administrations.
Diego Tartara: AI enhances efficiency and accuracy across various legal processes, from data management to intellectual property protection, facilitating digital transformation in the legal sector.
Diego Tartara: Globent is committed to helping leading brands enhance their customer experiences.
Speaker Change: Our partnership with Formula One is progressing well, similar to our collaboration with FIFA. In addition to innovating race technology and fan experiences, Formula One offers a significant platform for elevating our brand recognition.
Speaker Change: Regarding our client work, we are collaborating with Topgolf Callaway to drive strategic transformation for Callaway Golf. Utilizing our Magnify platform and generative AI accelerators, we are enhancing productivity and efficiency in quality assurance.
Our Globant Gut Network is also making waves globally.
Speaker Change: In the Netherlands, Gutt suggested that Kraftheins innovate their iconic product by creating Hagelchup.
Speaker Change: The first sprinklable ketchup inspired by Hagelslag. This agile initiative utilized earned media and organic buzz, generating excitement with a limited supply and a pop-up in Amsterdam.
Speaker Change: Moreover, we were selected by Stellantis and you to run a digital transformation program across their dealer network in Europe. Our focus is on simplifying processes and automating operations to improve efficiency and reduce costs.
Speaker Change: Our expertise in the automotive sector and our technology stack, including Globe and X-Tools, were key to our selection.
Speaker Change: This quarter, within the Enterprise Studio Network, we launched a new product in partnership with Quick Play, enhancing our advanced video search tool developed with Google. This product enriches and tags extensive content, enabling creators and broadcasters to craft dynamic, personalized channels.
Speaker Change: Lastly, I invite you to explore our new website, featuring an interactive AI assistant that guides you through Globant services, showcasing how we can elevate your organization.
Speaker Change: With that I will hand it over to Patricia Pomies, our COO. I look forward to seeing you at the Q&A session shortly. Thank you.
Patricia Pomies: Thank you, Diego. Globin's growth continues to thrive thanks to our commitment to quality and the strong relationships we've built with clients over the years.
Patricia Pomies: Currently, we have 21 clients generating over $20 million in annual revenue and 331 clients contributing more than $1 million annually.
Patricia Pomies: Notably, revenue from our largest client, the Walt Disney Company, increased by 17.5% year over year and 14% quarter over quarter.
Patricia Pomies: Our strongest growth this quarter came from new markets in the Middle East and APEC, with a remarkable 35.3% sequential growth and 53.1% year-over-year. We are optimistic about the prospects in this region.
Patricia Pomies: Year over year, our revenue growth was 24.8% in Europe, 13.9% in Latin America, and 6.6% in North America.
Patricia Pomies: As our revenue diversifies, North America accounts for 55.7% of our top line, followed by Latin America at 21.8%, Europe at 17.6%, and the Middle East and APAC at 4.9%.
Patricia Pomies: This quarter, 7 out of 8 industry verticals experienced sequential growth, reflecting a broadening of our business.
Patricia Pomies: We're also pleased to report growth in the technology and telecommunications and professional services verticals, which posted sequential growth of 5.2% and 1.6% respectively.
Patricia Pomies: As of Q3, our total headcount stands at 29,998 GLOBERs, a 9.1% increase year-over-year, with 27,927 being IT professionals.
Patricia Pomies: Our utilization rate is currently at 79.8%, showing a slight increase.
Patricia Pomies: and our attrition rate has decreased to 9%, down from 9.5% in Q3 2023.
to sustain Globin's growth trajectory.
We are continually assessing how to better support our teams.
enhancing their effectiveness and creativity for clients.
Speaker Change: As Martin mentioned, our clients' need for industry-specific consultancy has provided an opportunity to empower our studios. We aim to blend creativity with industry-specific knowledge, ensuring our teams can deliver applicable expertise.
Speaker Change: Consequently, our local portfolios will now feature more industry experts, irrespective of geography. Our AI reinvention studios are now crucial, contributing over 20% of the company's revenue and marking one of the fastest growth areas for us.
Speaker Change: Applying AI in a smart way, focusing on critical processes, is key both for us and our clients.
Speaker Change: With that in mind, we are incorporating AI agents into our delivery process to optimize quality and speed. They take on different tasks alongside our delivery managers as they define and onboard the team, execute the delivery and monitor the overall project status.
We are adapting our structure to facilitate quicker local decision-making.
Speaker Change: Latin America has been subdivided into two regions to strengthen our focus in Mexico and Brazil. Additionally, to support our growing business in the Middle East, we will open a new office in Riyadh for transformational projects like Qidiyah.
Speaker Change: Globin's commitment to community work is gaining recognition. We ranked 6th on Fortune's 2024 Change the World list, noted for our sustainability initiatives.
Speaker Change: Projects like Coriconcha in Peru helped prevent the release of 12,000 tons of CO2 equivalents and our green energy farming project in India improved the quality of life for over 6,500 beneficiaries while preventing 10 tons of wood from deforestation.
Speaker Change: In October, we were honored as the Company of the Decade by the Council of the Americas for our global growth and commitment to developing local communities, particularly in emerging markets.
Speaker Change: We hope this recognition inspires more companies in Latin America to dream big and expand globally. Our Women That Build initiative has successfully completed its fifth edition. Since 2020, we've evaluated over 6,500 candidates.
Speaker Change: partnered with 270 judges globally, and collaborated with organizations like AON, AWS, and KPMG.
Speaker Change: We proudly recognize trailblazing women from 12 regions with three global winners, reinforcing our commitment to narrowing the gender gap in the industry and fostering inclusive growth. Thank you all for your time. I will now hand it over to Juan to discuss our financials.
Juan: Thank you, Pato, and good afternoon, everyone. I am pleased to be here with you today to discuss our third quarter results.
During this period, we achieved strong sequential revenue growth.
Juan: driven by robust performance from our top client and several key accounts, along with recent new wins across different geographies and verticals.
Juan: We managed to grow our business while enhancing profitability and generating free cash flow, all while maintaining a prudent and healthy balance sheet.
Our revenues reached a record level of $614.7 million.
Juan: up 12.7% year-over-year and 4.6% sequentially, in line with our guidance. Excluding the negative impact of foreign exchange, revenue growth stood at 13.7% year-over-year.
Juan: We estimate a 9% year-on-year revenue growth in organic constant currency terms for Q3. Additionally, from a quarter-on-quarter growth perspective, we are experiencing initial signs of recovery in specific verticals that faced headwinds in the first half of the year.
Juan: Q3 also experienced a robust growth in our top account. We had a strong quarter from the profitability perspective.
Juan: We closed Q3 with an adjusted gross profit margin of 38.5%, up 40 basis points sequentially, and 30 basis points year-over-year.
Juan: Our adjusted operating margin reached 15.6%, reflecting an increase of 50 basis points sequentially and 30 basis points year-over-year. These margins are the highest recorded over the past two years.
Juan: In addition, this quarter we managed to dilute S, G, and A by 20 basis points sequentially.
Juan: Our effective tax rate stood at 20% for the quarter, resulting in an adjusted net income of $72.4 million with an 11.8% adjusted net profit margin, up 40 basis points sequentially.
Juan: Adjusted diluted EPS was $1.63, up 10.1% year over year. Our balance sheet remains strong, ending the quarter with $213.5 million in cash and short term investments, or $27.2 million in net cash.
Juan: With $165 million drawn from our $725 million revolving credit facility, we have ample liquidity to support our growth initiatives.
Juan: During the third quarter, we generated $69.7 million of free cash flow versus $60.6 million in the same period last year, achieving a free cash flow to adjusted net income ratio exceeding 96%.
Juan: As always, our free cash flow generation is much stronger in the second half of the year.
Now let's discuss guidance.
Juan: In organic constant currency terms, we continue to expect growth of close to 10% for the full year 2024.
Juan: We project Q4 2024 revenues in the range of $642 million to $648 million.
Juan: representing an 11.1% year-over-year increase at the midpoint of the range with adjusted operating margins between 15% and 16%.
Juan: The IFRS effective income tax rate is expected to be in the 20% to 22% range. Adjusted EPS for the fourth quarter is now expected to be between $1.71 to $1.75, assuming an average of 44.7 million diluted shares.
Juan: For the full year, we are raising the lower end of our prior guidance, which is now estimated to range from $2,415,000,000 to $2,421,000,000.
Juan: We now forecast 80 basis points of FX headwind in our full year guidance, as currencies in Latin America continue to depreciate against the dollar.
Juan: We anticipate adjusted operating margins in the range of 15% to 15.5%. The 2024 IFRS effective income tax rate is expected to be in the 20% to 22% range.
Juan: Finally, our adjusted EPS is expected to be between $6.37 to $6.43, assuming an average of 44.5 million diluted shares outstanding for the year.
Juan: To conclude, we are very pleased with our year-to-date financial performance, which reflects our unique position in the industry.
Juan: Our leading indicators remain positive, reinforcing a strong end to the year and setting a solid start to 2025, with organic growth showing signs of improving relative to 2024.
Juan: Thank you for your continued support, and we look forward to sharing more updates on our growth and achievements in the coming months.
Speaker Change: Thank you, Juan, and hi everyone. It's good to see you again. Unfortunately, Martin will not be able to join us today. He was stuck on a flight delay.
Speaker Change: So with that in mind, I will call your name, and then I will please ask you to unmute your line and ask your question. After your question is done, please mute your line. And we also like for you to limit yourself to one question, please, to give everybody a chance to ask.
Speaker Change: With that in mind, the first question comes from the line of Tien-Hsien Huan from J.P. Morgan. Tien-Hsien, please go ahead.
Speaker Change: Arturo, thank you. So yeah, I'll ask on the visibility on the faster organic growth for next year. I think both Martin and Juan, you just mentioned there's some signs of that. How much of that is driven by
Speaker Change: the large backlog that you have versus maybe what the macro is telling you or even what the larger clients are perhaps telling you, just a little bit more insight on that statement of faster organic growth.
Speaker Change: Okay, thank you, Ting-Jin. Good morning, good afternoon, everyone, depending on where you are. Look, what we're seeing about 2025, I think, is a reflection of the performance of, you know, some of the large deals that we are ramping up.
Speaker Change: some of the deals that we are closing in the Middle East.
There is also a component of a strong performance.
Speaker Change: in our top account, and in media and entertainment in general, including sports as well. And finally, I would also add that there is some kind of an acceleration in the number of deals that are AI-related or with AI components.
Speaker Change: That's the majority of improvement that we are seeing, that we've been seeing over the last.
few months. There is some, of course, also some macro...
things that are getting, you know...
Speaker Change: that are more clear now, you know, we now have the elections behind.
Speaker Change: We have interest rates coming down, inflation is under control. So I think that on the macro front, some of the variables that were making some noise are starting to clear, but I would mainly assign the visibility to the first few points that I mentioned before.
Speaker Change: Thank you, Xinxin. The next question comes from the line of Jim Schneider from Goldman Sachs. Jim, please go ahead.
Thank you. Thank you. Thank you.
Jim Schneider: Good afternoon. Thanks for taking my question. Relative to the work you talked about in AI and the acceleration you're expecting for next year,
Jim Schneider: How do you see your work for clients changing into 2025? Is there a greater emphasis on certain practice areas like data? And are you seeing the AI projects getting larger in size or scope or not? Thank you.
I will take that, Juan. Thank you for your question.
Speaker Change: What we've seen, and it's compared to last year, to 2023, is...
Speaker Change: There's definitely a different approach to incorporating AI within companies. Last year, there was a lot of the work that was exploratory.
Speaker Change: analyzing, you know, the technology, getting deep dive into it, assessing impact in many different places. So typical booking was very small. The pipeline compared to the work we were executing was actually very small.
Speaker Change: because it's studied as POC and that can extend it and extend it. What we've seen this year in comparison, like I said, with last year
Speaker Change: is that the work is much more intentional. So there's an end goal we need to reach.
Speaker Change: So, and that's why we see Vigor Pipeline, there's a mission, that mission has to provide an enterprise and business result.
Speaker Change: And as a result of that, the type of work mandates we have, have a different level of maturity. There's a good...
Speaker Change: Last year there was an imbalance between Gen-AI and traditional, and other models, sorry.
Speaker Change: And this year is about producing impact, you know, Gen-AI when it makes sense, traditional other models, and in some optimizations, etc. So...
Speaker Change: What I'm foreseeing for 2025 is a continuity of this line. So I think investments are now much more directed, like they have an objective.
Speaker Change: AI is definitely a factor into the forecasting of every company as results that it needs to bring. And that gives us, you know, more visibility on what's coming, larger projects.
etc. So overall that's the visibility we have.
Speaker Change: Thank you, Jim. The next question comes from the line of Brian Bergen from TD Cohen. Brian, please go ahead.
Brian Bergen: Hey guys, thank you. Good afternoon. So I wanted to actually ask the Middle East, can you just talk about the potential of this region for you? You know, we saw the deal announcement a week ago, making it official there on that project. Just in the context of kind of the historically larger deals that you have had, how can these potentially compare?
Speaker Change: So, I'll take that one. So, Brian, you know, we're starting from a very small base, so, you know, it's easy to see growth.
Speaker Change: in our the coming quarters. Typically the size of the deals
Speaker Change: magnificent, like very very large, including massive investments in real estate, massive investments in technology, you know, they are trying basically to create
Speaker Change: new experiences and to attract people from Asia and from other regions to visit those countries to visit those new locations and as they are starting from serum in many cases you know they are starting from
Basically from nothing, there is a lot to be built.
Speaker Change: That's going to take time, you know, it's going to be an evolution, there was going to be an evolution. They're going to start with certain assets, then you're going to keep on expanding.
Speaker Change: But, you know, it's one of these, I mean, we've been talking about this for a few quarters, it's one of these regions.
Speaker Change: that is moving, you know, with a different economy or with a different macro, right? There is a lot of money that they want to invest.
Speaker Change: They are trying to diversify the sources of income of their economies.
Speaker Change: and a lot of it is related to experience, to creating an experience.
Speaker Change: I think it's extremely well positioned to build software on that area. And, you know, we are seeing very good traction in many of the deals over there, including of course, the one that was announced a couple of weeks ago.
Speaker Change: Adding to that, I think that it's interesting to say that we've just opened an office there. So we are still putting people there, training people, helping in order to achieve those goals and growing.
Speaker Change: in Newmarket's area. I think it's very interesting for us and Newmarket, as Juan was mentioning, so we are still designing with the region, I mean, all the strategy there, and opening an office, of course, was one part of the strategy. I think that that is going to continue growing, and that is what we are planning, but
Speaker Change: Of course, as many other markets in Globant, you know that we have many other markets also, we are taking care, we're putting a specific team there with a specialist and trying to be very close to our clients.
Speaker Change: Thank you, Brian. The next question comes from the line of Maggie Nolan from William Blair. Maggie, your line is open.
Thank you.
Maggie Nolan: Thank you. I was interested in the commentary about incorporating AI agents into the delivery process. Is this IP that you have, is it unique in the services industry, and then to what degree, if any, is this replacing human labor, and how do you factor that into the economics of the engagement?
Speaker Change: Well, I take that one. Thank you, Maggie, for your question. It's not that we are replacing people, it's more that, as we have been mentioning in the last quarter, we have been using AI for the last 10 years in different kinds of processes internally in Globant, in the way we are recruiting people, in the way we are training people. And now in the delivery framework, it has to do with using agents in order to work with our delivery people, with the engagement partners, in order to try to define a scope or help to check on the health of the project.
Speaker Change: So we are using AI in all the projects. So that means that these kind of agents that we are using for many of our clients is one of the things that we are using internally for our teams also. And that is giving us results or the health of the project. I mean, where we are trying this kind of agent is really good and the results have been amazing. We are working together with the clients in order to show what we are doing. And I think this is the kind of way that
Speaker Change: Globen is doing business, right? We are also, of course, talking about AI projects, but internally, as a company, we have been using this for many, many years, and this is one of other examples.
Speaker Change: Thank you, Maggie. The next question comes from the line of Leonardo Olmos from UBS.
Leo, your line is open.
and Juan Urthiague.
Hi, everyone.
Speaker Change: Thank you for taking my question. So, you mentioned previously that local portfolio with future more industry experts. You also mentioned maybe shifting some people to the Middle East.
Speaker Change: and, of course, you're growing a lot sequentially. So how should you think about employee growth going forward and their utilization rates? Thank you.
The End
Speaker Change: Okay, so in terms of employee growth, you're going to see another quarter of net additions in Q4.
We are hiring.
Uh.
Probably.
Speaker Change: mostly in Latin America, in India, and a little bit less in Eastern Europe, but overall we are hiring in the three regions.
Speaker Change: Again, you should keep on expecting positive net additions in terms of...
Speaker Change: it a little bit of faster than Q3, in terms of utilization. This quarter we ended up 79.8% compared to 79.5 in Q3. I think that's still below our targets.
As you know, we target...
Typically target 81-82%.
We have done...
Speaker Change: Even more than that in the past, you know, we have had quarters of
Speaker Change: 83 or 84 percent, but I think that 81 to 82 is a good target, and we will continue to look for that target. I think as the industry, you know,
Speaker Change: accelerates over time, you know, we are going to be able to take utilization a little bit higher. I don't expect big changes in the very near future, but we do continue to target a higher number.
Speaker Change: We want to be next to our clients and we have the expertise. So we are training also people internally. I think next week we are launching our first hub of AI. And that means that this digital hub where we're going to train people in AI and industry experts.
Speaker Change: I think that those kind of movements is a thing that globalists all the time do invite.
and many more. Thank you. Thank you.
Speaker Change: One additional comment with regards to going deeper into industries, I think there has been so much change in the technological landscape that domain expertise becomes
Speaker Change: Super important to be proactive with your offering to the client.
Speaker Change: And we want to provoke our clients with every single technology that comes to play. So, we're thinking about AI, we're thinking about spatial computing, we're thinking about digital twins.
Speaker Change: Instead of waiting for the industry maturity, for getting the opportunities, we want to provoke. We want to explore before that. And that's why this is a natural evolution for us. We continue, of course, to be...
Speaker Change: deeply technical company but this is a part of our you know sales channel strategy.
Very good. Thank you so much. Good evening. Thank you.
Speaker Change: Thank you, Leo. The next question comes from the line of Jonathan Lee from Guggenheim. Jonathan, please go ahead.
Jonathan Lee: Hey guys, thanks for taking our question and tremendous to hear about your commitment to double-digit revenue growth next year. As we think about the remainder of the year into 2025, are you seeing any sales cycle elongation or perhaps deal delays? And if so, how much of that contracted backlog is being pushed into next year?
Thank you. Thank you.
Hi, Jonathan. No, we are seeing a similar scenario.
Jonathan Lee: like the one we've seen over the last few quarters. That's why, you know, the numbers are pretty much not changing. I think that the type of conversation remains improving in terms of revenue.
Jonathan Lee: kind of revenue-oriented projects relative to productivity or efficiency type of project and that is something that we continue to see, you know, a more balanced approach.
Jonathan Lee: We are also not seeing deterioration in budgets for 2025 at our customers.
I mean
Jonathan Lee: It doesn't mean that they're growing a lot, but it's unlikely, I mean, we see pretty much no customers targeting a lower number for next year in their investment in technology.
Jonathan Lee: So, in general, I would say that we're not seeing elongated closing cycles, we're not seeing any further, any deterioration, and I would say that on the macro we're actually seeing more stabilization, and as I was saying at the very beginning,
Jonathan Lee: variables are getting more clear. So we are optimistic for next year and I think...
Jonathan Lee: That's what we're looking for after, you know, two or three years of an industry where, you know, growth was scarce. You know, we did quite well, but it was a tough industry, and it looks like things are stabilizing or getting a little bit better.
Speaker Change: Thank you, Jonathan. So the next question comes from the line of Jason Kopferberg from Bank of America. Jason, please go ahead.
Jason Kopferberg: Hi, thank you. So I'd set a two part question about 2025. You talked about the organic growth rate accelerating off the 10% number. You've got M&A looks like maybe a two to three percent contributor next year based on the deals you've announced already. So I just wanted to confirm that. And just on the adjusted operating margins, if we look at 2023 and 2024, I think we've been closer to the lower part of your typical 15 to 17%.
Jason Kopferberg: annual target range. So what are the puts and takes we should be considering on that line?
for 2025.
I'll take the two questions, Jason.
So, you know, in terms of 2025,
As we mentioned during the call, you know, we are...
Jason Kopferberg: We are looking at some small acceleration in terms of organic growth. This year we are closing at about...
Almost 10% constant currency growth.
Jason Kopferberg: We're seeing a little bit of a small acceleration there. Plus at this point, we can say two to three points of.
You know, the impact of the M&A.
Jason Kopferberg: So, I would say that for next year, we are looking at something into low double-digit to mid-double-digit.
As of today, of course, we will provide an update.
in February, but those are our numbers.
As of now, for 2025.
Jason Kopferberg: In terms of operating income, as you remember, you know, during 2022, second part of 22, a little bit in 23, and the beginning of 24.
Pretty much all Latin American currencies.
Jason Kopferberg: appreciate it significantly relative to the dollar. That put some pressure at the margin level. We have been able, you know, to make a number of actions, a number of efficiencies.
Jason Kopferberg: And of course, in the second half of the year, we started to see some depreciation of currencies in Latin America. When you look at the Mexican peso, when you look at the Colombian peso, the Chilean peso, the Brazilian real, all those...
[inaudible]
around July started to depreciate.
that did have an impact.
Jason Kopferberg: on the revenue front, of course, because we do have some revenues in those currencies.
but the impact
and we are seeing now some tailwinds.
Jason Kopferberg: coming from effects. So again, actions that we took to be more efficient.
Jason Kopferberg: improving a little bit utilization, continue to work on the revenue per head that has been going up.
Jason Kopferberg: Thank you, Jason. The next question comes from the line of Surinder Singh from Jeffries. Surinder, please go ahead.
Thank you.
Diego, I think this question is for you.
Jason Kopferberg: Can you talk a little bit more about the MIT Review article and the underpenetration in some of the newer technologies? And then maybe put that into perspective of where you guys are on that journey in terms of how aggressive have you been in deploying the AI and those kinds of things internally?
Speaker Change: what you've seen from that deployment and how much more you can do at this point.
Speaker Change: Good. This is actually a long question. I'll try to make it short.
Speaker Change: The work we've done and conducted had actually two aspects to it. One was...
Speaker Change: positioning, but one that was super important is to be able to compare with the industry and get an industry baseline. What we have done internally,
Speaker Change: tops with what's best in the industry. We've developed our own tools, as you probably know.
Speaker Change: for doing code-fixing, aka bug-fixing, for doing testing, business analysis, estimations.
Speaker Change: promising on some of the areas. There's still a lot to be done on other areas and let me give you an example. LLMs are super good when it comes to translating and writing code.
While you may maintain...
Speaker Change: your job within a certain specific domain. When you have to do architecture at scale, things become more complicated.
Speaker Change: you know, it's super difficult to factor in, you know, reuse, medical, coherent, etc, etc. So, and that's our typical job. And there was when things you know, get a little bit more complicated. We have been
super aggressive.
with regards to adopting...
Every single tool, whatever it makes sense to bring efficiencies.
Speaker Change: to our clients. And we've been very effective. Some of those tools, we're actually charging for them. Some others are, you know, adopting either our own or third-party tools to make the processes more efficient. One of the things that happened
Speaker Change: in AI nowadays is that, you know, models are coming to a plateau and there's an agreement on this, so
Speaker Change: You're seeing incremental benefits from, you know, increasing the number of parameters, et cetera, et cetera. Do not bring actual reasonable results.
So now it's time for working with...
Speaker Change: You know, the models, the Asians, the mixture of experts, et cetera, et cetera, to get the most out of it. And that's what...
what we are doing.
Speaker Change: I know that the typical question is, like, well, will you able are you actually replacing, you know, people with it? We're making our systems more efficient. And this has been happening forever. Like, integrated development environments are all about that. I mean, a developer nowadays called
Speaker Change: Trust me two times as fast as I used to code 15 years 10 years ago. So so and this is
Speaker Change: We need to understand, we as a company need to embrace that and bring those efficiencies and the best of it to our clients. So that's what we're doing.
Speaker Change: Thank you, Sorinda, for your question. The next question comes from the line of Brian Keane from Deutsche Bank. Brian, please go ahead.
Brian Keane: Hi guys, thanks for taking my questions. Just on the two acquisitions, Blank Factor and Excucia, the recent two acquisitions, I think they closed recently here. So do they add and how much did they add to the fourth quarter revenues?
Brian Keane: for this year. And then just a follow-up question, those specific verticals that you talked about with the headwinds, which that are showing a recovery, what sign are you seeing in those in those verticals that are showing that recovery?
Speaker Change: So, I mean, I'll start by the second part of the question and then I will continue with the first part.
Speaker Change: So, in terms of verticals, you know, clearly we had a very good quarter in travel and hospitality, which have been
have been doing really, really well throughout the year.
Consumer Retail Manufacturing has also been doing well.
We have seen some improvements in BFSI.
Speaker Change: You know, some of the financial institutions, especially in Europe, are, you know,
Speaker Change: grown with us. We are expanding our business. For example, in Ireland, we mentioned about a customer over there, and we're expanding the business in Spain as well. We're also seeing, if you look at professional services, and if you look at technology, this quarter was a decent quarter, and those are two sectors.
Speaker Change: that have been struggling for a while. So in general, I would say that it's been a good quarter across the board in terms of the industries.
You mentioned about the acquisitions. Excuse your closed.
At the very end of Q3, Plan Factor closed.
Speaker Change: a couple of weeks ago, so it's going to have some impact in Q4.
Speaker Change: The number that we guided for Q4 is 11.1% total growth at the midpoint. There is also another 150 basis points.
of FX Impact year-over-year. So if we were to take
a full year, sorry, a year-over-year Q4 growth.
and many more. Thank you. Thank you.
Speaker Change: Thank you, Brian. The next question comes from the line of Divya Goyal from Scotia. Divya, please go ahead.
Good afternoon, everyone.
Divya Goyal: I wanted to get a little bit more color on the growth in Latin America and Europe specifically. So, if you could potentially help us understand how are these two geographies doing, and do you have any potential M&A in the pipeline, and what are some of the gaps you are looking to fill across these regions in order to maintain the growth momentum there? Thank you so much.
Speaker Change: And I can explain that the thing about, well, in terms of LATAM, as we have been explaining before, we split the region in two. Right now, we put two heads there.
Speaker Change: in Brazil and the other one in Mexico. What we are seeing there is that we are slightly growing year over year. Now we start growing faster in terms of the financial vertical is getting better there and some other consumer and retail...
for Rolling Fast.
Speaker Change: In Europe, as you know, I mean, we have been expanding, we just opened a new office in Spain, in Milan, we have markets in France.
Speaker Change: We have in Germany there also, of course UK and there we have different kind of industry most of them are there are just lodging and growing fast. [inaudible]
Speaker Change: And in terms of the M&A strategy, as you know, we are all the time looking for the best talent and opportunities. Right now, what we are seeing is what we have is in the pipeline. It's okay.
Speaker Change: We are right now great in a great scenario. Probably, I mean, we are looking for some new spaces all the time. Of course, also a lot of time in Europe, but mainly what we are focusing these days is in organic growth. There also, the teams are more than ready to grow. Europe is the most growing region that we have been doing awesome the last couple of quarters, and I think that it continues that way. We have a great team there, and we still are designing and empowering people there. So I think those are regions that are starting to show that the growth is amazing. And finally, well, as U.S. has been all the time our market, our biggest market,
Speaker Change: We keep growing in other regions and, of course, new markets, as we mentioned later.
Speaker Change: I can add a little bit there, Divya, the pipeline of Fremont A usually has
Speaker Change: different regions, different technologies, different industries. So there is a combination of
Speaker Change: of different factors that we take into consideration. We follow companies and, you know, sometimes when we're able to close those deals, we get them done.
You should expect more growth coming from Europe.
Speaker Change: more growth coming from the Middle East and from new markets, what we call new markets. Those are going to be the fastest growing regions and then we are seeing some recovery, some nice recovery in the U.S. and Latin America, you know, a little bit.
Speaker Change: less, you know, with less acceleration. And I think it's a little bit related also to the fact that
If we look at all Latin America,
You know...
Speaker Change: Currencies have been impacting a little bit the growth, so there is some effects impact there. There are some countries that went through elections recently and those are still, you know, trying to understand, you know, the economic environment for the following, for the future. But again, Europe and new markets are going to be leading the growth.
Speaker Change: The first time I've seen this video, I've seen it in the video.
Speaker Change: Thank you very much, Divya. The next question comes from Sean Kennedy from Itsuho. Sean, please go ahead.
Sean Kennedy: Hi, everyone. Thank you for taking my question. So, congratulations on the impressive Disney growth this quarter. I was wondering what sort of projects are driving this growth and how sustainable are those trends as we head into 2025?
Yeah, as you probably know, I mean,
Speaker Change: Disney is well differentiated between experiences, a.k.a. parks and media. On the media side, we are generating traction on both of them.
Speaker Change: In media, the plan has been always to come to a single platform.
Speaker Change: And that's what we're working on nowadays. And it's a combination of, you know, we did the merge between Disney Plus and Hulu. Now we're doing the same for ESPN. But on top of that, there's a ton of
Speaker Change: Their strategy is maximizing revenue and driving more engagement, bringing new sources of revenue. So we have a strong pipeline there. On the park side...
Speaker Change: On the other hand, we have a clear indication of what's the strategy. Still that needs, we have now, we don't have such a good visibility as we have on the media side still.
Speaker Change: The strategy has to do with operational efficiency, but now it speaks a lot about
Speaker Change: improving the experience. And as you all probably know, we are there and super strong. So based on that, as a guiding principle, I think we're very good position.
Great, thank you.
Speaker Change: Thank you, Sean. The next question comes from the lines of John Knott from Piper Sander. John, please go ahead.
Speaker Change: I believe John might be having problems. I will move on to the next question. The next question comes from the lines of Tiago Kapuskis from Itaú. Tiago, please go ahead.
Speaker Change: Hi everyone, thanks for squeezing me in. So, just one question on your headcount.
Speaker Change: We've been seeing you gaining or getting more and more share in India.
Speaker Change: in this quarter, another two points. And it's almost the size as your headcount in Argentina, right? So just wondering how you're thinking about your headcount, geographical mix, and if India should continue to gain share and even become larger than your historical hubs, which are Colombia and Argentina going forward.
Speaker Change: This quarter, you know, part of the growth that you see in India...
came from the acquisition of Exsusia.
Speaker Change: But it's also correct that India has been growing throughout the year, and we continue to grow. We started in India back in 2014.
So it's more than 10 years.
operating in the region and expanding
Our business and integrate, you know, it's completely integrated.
for our operation, every studio that we have.
Speaker Change: in the company has a meaningful presence in India and at the same time, you know, we expanded our revenues from being mostly in the U.S.
towards the Middle East and APEC.
So, that creates...
Speaker Change: even more opportunities to expand our operation in India and not just in India, you know, we are expanding in the Philippines and we're expanding in Vietnam as well. So Asia for us is a priority as our business becomes more global. Europe takes a larger share as well as the new markets.
Speaker Change: Again, Latin America is our home market. It will continue to be our main region.
I mean, we are going to be more balanced.
Speaker Change: going into the future with a larger Asia and eventually with a larger Eastern Europe, which today is a very, very small part of our business.
Speaker Change: Well, adding to that, I just want to congratulate our team from Colombia. We just hit the 6,000 people there and I think it's an amazing milestone. So, I mean, this shows also the commitment that we have in continuous growing around the world. And adding what Juan was mentioning before, of course, I mean, India is growing because all our markets are growing. India is serving globally. It's a hub that is not only serving the US or Latin American market, it's serving more new markets also in Europe. And I think that is an amazing thing. So, we keep growing in mostly all the people that we said all the time, global everywhere. So, that is where
Speaker Change: Arturo Langa, Diego Tartara, Juan Urthiague, Martin Migoya, Patricia Pomies, Juan Urthiague, Martin Migoya, Diego Tartara, Juan Urthiague, Martin Migoya, Diego Tartara, Juan Urthiague,
The beautiful thing is that...
Speaker Change: The structure of our pods is so mixed, and we have been able to put teams that are from everywhere. So in the same team are working people from different kinds of countries, and that is something that is really important in terms of the framework of the delivery. So we are putting the best people around the globe that we have for the best team ever. So for us, always, it has to do with giving the best to our clients and the best talent that we have.
Great, thank you very much.
Speaker Change: Thank you very much, Thabo. I believe Martin was able to join just for a closing remark. He's here on the line. We're going to try to pass the line to him and see if he's available. And if not, I'll pass the line over to Juan. Martin, are you there?
The End
Speaker Change: Hello, can you hear me? Hi Martin, we can hear you. Hello, can you hear me?
Yes, how are you? Yeah, great.
Connect from here.
Thank you.
Great.
Speaker Change: Well, Martin, we are closing remarks for the call, but thank you so much for joining. I'm going to pass the line over to Juan to conclude the call. But thank you, everybody, for joining. Juan, please go ahead.
Juan Urthiague: Okay. Well, thank you guys for joining us today. Thank you, as always, for your continued support, and we'll see you soon. Thank you very much. Have a nice evening. Bye.
Thank you.
Almost done.
Closing Music
Juan Urthiague: Presidente del Camino Artesanal, Pata de Gallo, Santiago Teneraca, Primera Etapa, la Presidenta Constitucional de los Estados Unidos Mexicanos.
Speaker Change: and Dr. Claudia Sheinbaum Pardo. My name is Claudia Sheinbaum Pardo, and I am the Executive Director of Arturo Langa. I am very happy to be here in Mexico City with Dr. Claudia Sheinbaum Pardo.
Speaker Change: and the constitutional governor of the state of Durango, Esteban Alejandro Villegas Villarreal.
Hamum Obtuyan
Diego Cam, Corian Cam, Dr. Esteban Alejandro Villegas Villarreal
Speaker Change: The traditional governor of Santa Maria de Ocotan, Severo Santana Cervantes.
Guhishkai Hukdurkam Severo Santana Cervantes
Speaker Change: The Secretary of Infrastructure, Communications and Transport, Jesus Antonio Esteva Medina.
Yigokam Nahishmat Natuhashumdu, Jesus Antonio Esteva Medina
Speaker Change: The Director General of the National Institute of Indigenous Peoples, Adelfo Regino Montes.
The Coordinator of Governmental Affairs, Leticia Ramirez Amaya
El Subsecretario de Infraestructura, Ingeniero Juan Carlos Fuentes Orrala
and Juan Urthiague. Thank you.
Yigokam Nahishmat Natuhashumdu, Ingeniero Juan Carlos Fuentes Orralla
Speaker Change: Also, we welcome the representatives of the media and those who follow us on social media. All of you are welcome. Please take your seats.
andGuillermo Del Toro. Got a question ?
Chichuhok Hojabim, Yoab Chikayabim, Natu Tumagam, Shiv
Speaker Change: Procedemos con el mensaje de bienvenida a cargo del gobernador constitucional del estado de Durango, Dr. Esteban Alejandro Villegas Villarreal.
Chicaya, Yigokam, Natutuma, Koryankam, Dr. Esteban Villegas, Villareal.
Bienvenida, Presidenta, a su casa, a Durango.
Speaker Change: al Mesquital, y permítame saludar al Maestro Jesús Antonio Esteva, Secretario de Infraestructura, a Adelfo Regino, que...
Speaker Change: Let's give a round of applause to Adelfo, who is also here. He has been walking with the whole community for years.
Speaker Change: to Ms. Leti Ramirez, thank you very much for your presence, Leti, and of course, the traditional governor, Severo Santana Cervantes, and to all of you, our friend Ivan, our municipal president, Ivan, thank you very much for your presence.
Saludo a todos los...
A los senadores, senadoras.
Speaker Change: deputados, diputadas federales que el día de hoy nos acompañan, a las diputadas y diputados locales, a las autoridades que el día de hoy nos acompañan de las diferentes comunidades, a todas y a todos muchas gracias.
Speaker Change: Thank you, President, for joining us at the inauguration of the work of the Artisanal Path of Rooster Santiago Teneraca. And thank you for your presence in our entity.
Speaker Change: Mrs. President, she is and will always be welcomed in Durango with all the love and support she deserves, as we also gave to our President, Andres Manuel López Obrador.
Speaker Change: Reconozco, Presidenta, en usted su liderazgo en beneficio de todas las familias duranguenses.
Speaker Change: Today, in this community, this moment will be engraved in our hearts as the first event that you carry out in the State of Durango, just a month after you took protest as President of Mexico.
Speaker Change: continuously promoting union, collaboration, teamwork between all Mexicans. But above all, I see a government...
who defend dialogue, open and respectful consensus.
Speaker Change: donde las voces son escuchadas y tomadas en cuenta con el mismo valor.
Speaker Change: A whole government, a government that is close, sensitive, and compassionate with the needs of the people, especially with the most discriminated and historically excluded groups in society.
Las Mujeres
las y los infantes.
Lasti Los Adultos Mayores
Speaker Change: Las y los Afro-Mexicanos y nuestros hermanos indígenas con los que estamos el día de hoy.
Speaker Change: As a state government, we will continue to work shoulder to shoulder with the federal government to defend the well-being of all citizens, always prioritizing common interest over individual, political or economic interests.
Quiero que quede muy claro.
and the government of Durango.
Seguirá siendo un gobierno ético.
Speaker Change: Democratic, with an irresistible attachment to human rights and our Constitution.
Speaker Change: and with the complete willingness to contribute to the present and future of our nation. And we will remain united with the causes that defend the interests of the Durangu people and Mexicans.
Que Orgullo!
Speaker Change: to be part of this new stage for Mexico. A stage where power does reside in the Mexican people, and where our peoples can legitimately govern, as is the case with our indigenous communities.
Speaker Change: For this reason, I want to thank you, Mrs. President, for coming to the O'odham people to give continuity to the program of artisanal roads.
Speaker Change: in the Justice Plan and inaugurate the Silver Way of Rooster Santiago Teneraca.
Dentro de este programa.
Nosotros
Speaker Change: Junto con el gobierno municipal, estamos haciendo lo que nos compete.
trying to rehabilitate eight rural roads in this municipality.
en tronca de los charcos, las flores a tierras coloradas.
and Sally Tita.
Las Cruces.
Santiago Teneraca
Speaker Change: and El Entronque Cruces Santiago Teneraca a San Miguel de las Mesas.
Speaker Change: La Flor a Las Espinas, Las Espinas a Guacamilla, Charco Verde, San Jose del Bajio a Mesa de Gloria, Laguna de Chivo a Mesa de Antonio, En el entronque Durango-Tepic, San Jose de Llano, Puerto Milpas, al igual que el camino Maypura-Banco de Calitique, trabajos de rehabilitación de caminos y carreteras que vendrán
Speaker Change: to contemplate as well, and here I want you to give a big round of applause to the President because Durango is one of the first to enter the machetón and the arrangement of our roads.
Switching off.
Speaker Change: I won't let my moderate to severe plaque psoriasis symptoms define me. Emerge as you. With Tremfaya, most people saw 90% clearer skin at 4 months, and the majority stayed clearer at 5 years. Serious allergic reactions may occur. Tremfaya may increase your risk of infections and lower your ability to fight them. Tell your doctor if you have an infection or symptoms, or if you had a vaccine or plan to. Emerge as you. Emerge Tremfaya. Ask your doctor about Tremfaya.
Speaker Change: This way, our people will travel in a safer, more comfortable, and faster way. Returning home with peace of mind.
de reencontrarse con sus seres queridos.
Además...
Speaker Change: the presence of the state and federal authorities in this indigenous area of the Mezquital
Speaker Change: It has a very important meaning for our indigenous brothers and sisters, to tell them that they are not alone.
Speaker Change: that are seen, that are important in all sectors of our population.
Ya lo vimos.
Speaker Change: desde el primero de octubre, cuando las mujeres indígenas le entregaron el bastón de mando, que por cierto precedenta a quime de tengo un poco para decirle.
Speaker Change: that the indigenous woman who gave the speech on the meaning of the baton de mando is Virginia Flores Flores Duranguense and former traditional governor of the O'odham community of Choconostle.
de este maravilloso municipio del Mezquital.
Thank you.
Thank you.
Speaker Change: But also, Virginia was not the only Duranguese to represent Durango. Also, the Cabo, Juana Yasmina Costa Torres, was the one who put the presidential band and is native of Pueblo Nuevo, Durango. This is how women are participating.
Thank you. Thank you.
en los mejores espacios en México.
Here we feel proud and honored.
Speaker Change: of having women and men, children and girls, older adults and young people from indigenous communities so brilliant, so willing to raise Durango in Mexico and the world. Because what I expect
Speaker Change: In the next six years, we will be able to see more women leaving an important mark in our country.
Presidenta
Siempre encontrará en mí a un aliado.
Speaker Change: to a friend, and you will always find in Las and Los Duranguenses a people that supports you in all your actions.
God bless you, President, in all your sexiness.
que la iluminen cada desafio.
Speaker Change: and give them the wisdom to make the best decisions for Mexico.
The opportunity of Durango is here!
En unidad.
en armonía.
El Tiempo de las Grandes Mujeres
and the indigenous peoples.
ha llegado y cuente conmigo en lo personal.
y con mi gobierno para que siempre sus políticas públicas...
Sus Planes de Gobierno!
Speaker Change: be the first to put up the sign that we are the Durango people. That size is the support of Durango to its government, to the first female president of this country. God bless you and congratulations. Welcome! Long live the president! We continue to listen to the traditional governor of Santa Maria de Ocotan, Severo Santana Cervantes.
Thank you.
Chikayait Guhishkai, Gupterkam Severo, Cervantes Santana
Thank you.
Chiwet Ngurwut
Thank you very much!
Now yeah
It was a dark door.
Yeah...
Speaker Change: I'm nine years old and learn to speak Korean with my back and forehead My voice is key to keep my place in our culture
Speaker Change: Muy buenos días, muy buenas tardes, perdón. Le doy la cordial bienvenida a nuestra Presidenta Claudia Chen Bampardo, a estas tierras del pueblo O'odham. Estamos muy contentos.
contentos porque usted vino hasta acá en nuestras montañas.
que nos heredaron nuestros antepasados.
Speaker Change: On behalf of the traditional authorities, we would like to ask you...
Speaker Change: Diego Tartara, Juan Urthiague, Martin Migoya, Patricia Pomies, Juan Urthiague, Martin Migoya,
that our justice plans are Stable,
El año dos mil veintidós
We agree with President López Obrador.
In a special way, today we are...
Tomás Ocampo
Jose
¿Qué?
We have built from scratch.
Hasta
Localidad de los Frijoles
We have done
Good afternoon.
Sodor con mucho esfuerzo y sacrificio.
de Mujeres y Hombres
And we have...