Revenue during the quarter grew 21.02 percent to $88.74 million from $73.33 million in the previous year period. Gross margin for the quarter contracted 613 basis points over the previous year period to 37.47 percent. Total expenses were 89.46 percent of quarterly revenues, up from 80.64 percent for the same period last year. That has resulted in a contraction of 882 basis points in operating margin to 10.54 percent.

Operating income for the quarter was $9.35 million, compared with $14.20 million in the previous year period.

However, the adjusted operating income for the quarter stood at $10.23 million compared to $14.69 million in the prior year period. At the same time, adjusted operating margin contracted 851 basis points in the quarter to 11.53 percent from 20.04 percent in the last year period.

"Q1 resulted in another strong set of financial results. Our revenues for the quarter amounted to $88.7 million, representing a robust 21.0% year-over-year growth. Our 50 squared initiative continues to perform according to our expectations. Our European operations expanded aggressively compared to Q1 2016 and with the recent acquisition of Ratio, we are creating a new hub in Seattle to complement our operations in the United States. This quarter we added a number of high potential accounts in the financial industry and the media and entertainment industry, among others," said Martín Migoya, Globant’s chief executive officer and co-founder.

For fiscal year 2017, Globant forecasts revenue to be in the range of $386 million to $394 million The company expects diluted earnings per share to be in the range of $1.22 to $1.30 on adjusted basis.

For the second-quarter 2017, Globant forecasts revenue to be in the range of $95 million to $97 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.26 to $0.28.