Financial Outlook and Margins
Q: How confident are you in your guidance and what's driving margin increases?
A: We are reiterating our constant currency growth at 15.9%. " In dollar terms, it's 15.2% due to currency depreciation in Colombia, Mexico, and a bit in Brazil. " This depreciation impacts revenue guidance but benefits our cost side, leading to higher operating and gross margins in the second half. " Part of the margin increase comes from FX and a better-than-expected revenue per head, which has grown nicely this quarter. " Our pipeline remains strong, and bookings too, so we are confident in the guidance provided. "

AI Projects and Growth
Q: How are generative AI projects scaling and impacting your business?
A: We've seen 130% year-over-year growth in AI-related projects. " Many clients are still analyzing use cases and building labs around AI. " Implementing AI projects for demos is easy, but enterprise-class implementations are more complex, requiring data projects, supervision, and curation. " These processes are long by definition, but we're starting to see some clients ramp up plans for longer-term investments. " We are implementing live and productive projects in both generative AI and traditional AI, including streamlining operations and using AI agents. "

Top Customer Performance
Q: What are you seeing in your top customer cohort?
A: Our top customer, Disney, showed strong performance with sequential growth and 11% year-over-year growth. " We expect a strong second half of the year with them. " In the 2 to 5 customer cohort, there's one customer in the professional services sector impacting results, as that sector has lagged. " Beyond that, we're seeing better numbers in the 6 to 10 and 11 onwards cohorts. "

Revenue per Head and Pricing Power
Q: Is pricing power strong, and how is revenue per head trending?
A: Despite a tough market, we've achieved low single-digit pricing growth. " Combined with a different service mix, including growth in our GUT creative network with higher revenue per head, and increased on-site presence in Europe, we've achieved almost 9% year-over-year revenue per head growth. " We're still able to get positive pricing in some customers and relationships. "

Headcount Growth and Regions
Q: Do you expect growth in billable headcount, and any regional call-outs?
A: We're expecting to continue sequential growth in headcount. " In Q2, IT professionals grew by about 200 net additions. " We expect positive net additions for the rest of the year. " In terms of regions, we're seeing growth in Argentina, Colombia, and India. " In the U.S., headcount varies by quarter out of a small base, but nothing in particular to call out. "

Market Outlook and Industry Growth
Q: How do you view industry growth rates improving, and why is Globant outperforming?
A: The main reason we're growing while the industry is around 0–5% is due to decisions we've made in the past. " Our vision to leverage relationships and expand what we sell to customers is powerful when taken long term. " We're expanding into new markets like the Middle East, Oceania, and Asia, providing additional growth fuel. " We're gaining market share and seeing healthy organic growth from our largest customers. " Our increasing revenue per head testifies to the value we're delivering. "

Bookings Growth vs. Revenue Growth
Q: With bookings growth faster than revenue growth, should we expect acceleration next year?
A: It's still early to talk about 2025 in detail, given global uncertainties like elections and rates. " We're seeing sequential growth into Q3 and Q4, and we need to focus on strengthening our service offerings and expanding globally. " This will help us continue delivering industry-leading growth. "

Attrition Rate and Utilization
Q: Could there be an increase in attrition rates or developer demand?
A: Our attrition rates are currently pretty low, having risen slightly from last quarter but still at very low levels. " Demand remains very high for us. " We're continuing to hire in countries like Latin America and India. " Our culture is appealing to new generations, and people are staying and are very happy, as seen in polls and interviews. " We expect these numbers to remain stable. "

Travel and Hospitality Vertical Growth
Q: How is the travel and hospitality segment transitioning?
A: Travel and hospitality is one of the fastest-growing verticals for us. " We've closed a big transformational deal with a large airline in Europe. " Our Airline Studio is solid in the segment. " Additionally, our Connected Experiences AI Reinvention Studio is contributing, with significant business in the MENA region from the hospitality vertical. "

Productivity Improvements from AI Tools
Q: What productivity improvements are you seeing from AI tools?
A: For developers, tools like Copilot offer improvements, but in productive environments, the impact is less than publicly communicated. " We've seen significant improvements in junior developers, while senior developers rely less on these tools. " For tasks like unit testing, we've seen up to 40% improvement. " Overall, tooling gives an improvement that's actually lower than 15% for code generation. " We can confirm what we discussed a few quarters back. "

Generative AI Project Cycles
Q: How do you envision the cycle for generative AI projects?
A: Clients are spending time finding and validating use cases. " Once validated, implementing enterprise-grade AI solutions takes longer than expected, often requiring data projects and maturing processes. " This might take 1 to 2 years. " We believe this cycle will be shorter than previous ones, but it's still unclear when large-scale adoption will happen. " We're helping clients by identifying industry solutions and addressing industry pains with AI. "

Direct-to-Consumer Streaming Trend
Q: Is there a second investment wave in direct-to-consumer streaming?
A: Direct-to-consumer is a trend within media and entertainment. " Companies like Disney are doing this, even while consolidating channels. " In sports, organizations like FIFA and Formula 1 (both our clients) are exploring DTC streaming. " Demand is looking for consolidation, and we'll see how these factors play together. "