Good day and welcome to the Globant First Quarter 2015 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Juan Urthiague, Investor Relations Officer. Please go ahead.

Thank you, operator. And thank you all for joining us today on our call to review our 2015 first quarter financial results. By now you should have received a copy of the earnings release, if you have not, copies available on our Web site, investors.globant.com. Our speakers today are Martín Migoya, Globant's CEO; and Alejandro Scannapieco, Globant's CFO. Before we begin, I would like to remind you that some of the comments on our call today maybe 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 in the company's earnings release and other filings with the SEC. Please note that we follow IFRS accounting rules in our financial statements. In 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 in our Investor Relations Web site announcing this quarter's results. I would like now to turn the call over to Martín Migoya, our CEO. Martín Migoya: Thank you, Juan, good afternoon everyone and thanks for joining us in this call. I'm happy to be here today to share with you some of the important highlights that happened during the first quarter of 2015. We had another great quarter and a solid start of the year. Our Q1 revenues were $54.5 million, which represents 26.4% year-over-year growth. At the same time, adjusted EPS for this quarter were $0.22, 100% above the $0.11 for Q1 2014. This strong revenue growth together with a growth in EPS and operating income reflects the great opportunity…

Thanks Martín. Good afternoon everyone. I'm going to spend a few minutes taking you through the first quarter results then I will talk more about our Q2 and full year outlook. As detailed in the press release, quarter one was another quarter of robust results with revenues at $54.5 million implying 26.4% year-over-year growth and $0.22 as adjusted diluted EPS compared to $0.11 for the first quarter of 2014. This strong revenue growth was primarily driven by deeper penetration in our top accounts as we have indicated in the recent period. Our largest customer on our top accounts grew stunning 81.8% and 52.3% year-over-year respectively. This is a clear indicator of our ability to grow our largest customers by delivering digital, mobile, analytics and UX and UI project among other emerging technologies. Additionally, we added a number of strategic accounts through the portfolio including among others two very large consumer good companies, one global financial institution, a growing entertainment company, one huge energy producer, one U.S. based airline and a number of large technology companies. Finally, the vast majority of our first quarter revenue was generated from customers that were already working with us in the prior year. For the first quarter of 2015, our top one customer represented 10.2% of total revenue; top 5 customers represented 30.8%; and top 10 customers represented 47.8% of revenues compared to 7.1%, 25.4% and 39.8% of revenues respectively for the first quarter of 2014. The slight increase in concentration is due to the remarkable growth in our top one account, which is [hiring] [ph] additional and longer term projects. We believe that our portfolio is well diversified for a company of our size with marquee customers that could drive sustainable growth over the next five years. Compared to the first quarter of 2014,…

We will now begin the question-and-answer session. [Operator Instructions] The first question comes from Anil Doradla of William Blair. Please go ahead.

Hey, guys, congrats on the great results. Martín, I had a couple of questions, your top customers growth was very impressive, I think you said something like 80% year-over-year growth, can you share how much you could grow with this top customer and where I'm trying to go with this question is, should we be worrying about saturations at this customer say in a couple of quarters or do you think, there is quite a bigger opportunity of growth? Martín Migoya: Thank you, Anil for the questions. Well, the first reaction to your question is those customers that are in our top list are really very big. And I cannot estimate now – the answer to your question, all what I can say is that we are just scratching the surface of what we can do in those companies not because we are not being trading in the process we already have but because we have been elected like priority vendors for many things that they are doing in many other areas, just in the areas we are working now. So I think growth from those big accounts will come from two dimensions, first, keep on delivering on that and remember every time we are talking about projects of the king we are doing we are not talking about something that starts and ends, instead we are talking about continued creation growth that always demand new and new features coming from those vendors from those – I mean from us into those big customers. So that's the first I mentioned. The second I mentioned is going into another area or other areas of development and still – the expenditure that they have in Globant is very small compared to the whole budget that they have. So we are very positive about the idea of keeping on growing those accounts.

Great. As a follow up – you talk about margins being a little bit less than 2014 largely due to the investments and Martín and Alejandro, can you explain big picture as we over the next 12 to 15 months obviously there is a good pipeline and good demand environment, but you have to keep up with it, so this margin profile which we will see in 2015, as we look into 2016, will the growth requirements and investment requirements kind of outpace some of the margin upward trend so to speak or do you think this is what you do over the next couple of quarters will set you guys, so for the next a year or two?

Hey, Anil. This is Alejandro. Thank you. Thank you for the question. As you know, we are in the sweetest part of the demand of – the services that we provide, we will continue investing especially in the capacity of our studios, we will remain at the high-end of technology, cabinet of technology that proving to be very effective in terms of growing the accounts. Having said that, we will continue delivering levers through SG&A dilution that will help to have sustainable levels of operating margin and at the end also to expand EPS going forward. So having kind of -- further look into 2016. As for gross margin as I said probably 2016 margin is going to be a little bit below the level of 2014. But again, we are going to be a compensating part of that with SG&A dilution at the operating margin level.

Great. And once again, congrats guys.

Thank you. Martín Migoya: Thank you. Thank you.

[Operator Instructions] The next question comes from Tien-tsin Huang of JPMorgan. Please go head.

Hi. Great, thanks. Good afternoon. I guess on the – just on the guidance here, Alej, I'm curious, how much of the change is coming from the Clarice acquisition and has that deal actually closed? Just want to get clarity.

Okay. Hi, Tein-tsin. How are you? So the answer to your question in terms of the closing, yes, the transaction is closing in May. As far as for the guidance very little of that in Q2 as you can imagine, in the full year again, we are not splitting the number of organic vis-à-vis in organic that we have been doing in the past. We plan to do a very, very quick integration of the company. And if you compare the revenue from Clarice to Globant is not material at all. Having said that, we have blended and factored some synergies into the full year revenue guidance and that's the number that we guided for the full year. And in fact, that we have been doing in the past – we are confident that we can achieve. Martín Migoya: Yes. And the last thing Tien-tsin, I would like to add into Alej's comments. Just make your own mark, 250 employees within the Clarice team. The revenue per head is a little bit lower than our revenue per head. So you can do your own marks and if you want to include it, although we are not delivering the exact number.

All right. Martín Migoya: What we can also add to that Tien-tsin is that deal is going to be accretive for Globant both in terms of top line growth and margins.

Okay. Okay. That's good to know. And then just on the large client side, just to follow up the last question, is – I know obviously you are penetrating the clients – large clients are growing, is it the size of the digital projects themselves that are increasing or are you just getting broader adoption within the client, if you follow my question. Martín Migoya: Yes. There are two things – the two things – pretty much the two things are the same time, Tien-tsin. A portion of the growth belongs to going deeper into that same project for example, a project that used to be just online now is becoming more mobile oriented, so you need to go deeper into that direction, all right? And then, there are other areas that are being penetrated within that same customer from just one too many. So that's the trend we are seeing – that's the trend we are seeing in pretty much all the big customers. And it's very helpful by the way.

Yes. Okay. That's good to know. One more question from me, if you don't mind. Just the WPP related revenue, I heard you mentioned that – I don't know if you gave any numbers, how big is it, now, is it growing above corporate average any details there would be great. Thank you.

In terms of WPP, of course, you have the disclosure in the 20-S. It represents a little bit less than 5% of the total revenue for Globant. But, we have said in prior calls we have changed a little bit, the strategy now is not only growing after the company from the WPP group but also trying to lever on the WPP relationship. So that they can make interaction for us for large customers, while we can serve them on the digital space. So maybe Martín, if you want to add something to that. Martín Migoya: I think it's pretty much what Alejandro said. The only addition to that is that we see – although we see pretty flat revenue coming from the traditional WPP customers, the other revenue come from no relationship based on the WPP relationship is going. So I think that all-in-all it remains very positive for us although the direct relationship with WPP is not growing that fast.

If I may add that engine something that is – I think it's something to highlight on the WPP relationship is that they appointed a new Board member and the Board member that they appointed is the COO of digital strategy for the whole group of WPP. So that's a big reinforcement of the commitment from WPP to investment that they are having in Globant and the synergies that we can build up together.

All right. Now, that's great. That's good to hear. Good results. Thank you.

Thank you. Martín Migoya: Thanks Tien-tsin.

The next question comes from Avishai Kantor of Cowen. Please go ahead. Please go ahead with your question Avishai Kantor.

Can you hear me now?

Yes. Please go ahead.

Thank you. Can you please talk a little bit about hiring plans by regions for the year?

We have been very, very active in the Latin America region, we have been – we don't disclose the numbers of planned hiring by region, but, what I can tell you is that, we have been growing very fast in Mexico. In two cities on Colombia both in Bogotá and Leticia; Argentina also a very good place also for hiring. We continue to execute on our plans of grow in U.S., our onsite in U.S., we have been very, very active in U.S. I mean the headcount in U.S. was only 2% two years ago, now, its 5% of the total headcount of the company and growing. So you should expect that to continue growing in U.S. And of course, now with the acquisition of Clarice, India is going to be also a very interesting source of talent for us. That would be in a nutshell, our planning for growing the headcount across the regions.

Thank you very much.

Seeing that there are no other questions, this concludes our question-and-answer session. I would like to turn the conference back over to Martín Migoya, the CEO, for any closing remarks. Martín Migoya: Thank you very much operator and thanks everyone for participating in this call. For us – our pretty good results and we are very happy to have you here again to share that. Thank you. Thank you. And see you next quarter. Bye.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.