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Globant Reports 2024 Third Quarter Financial Results

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Strong, Broad Based Results

Third quarter revenues of $614.7 million, up 12.7% year-over-yearIFRS Diluted EPS of $0.98 for the third quarter Non-IFRS Adjusted Diluted EPS of $1.63 for the third quarter

LUXEMBOURG, Nov. 14, 2024 /PRNewswire/ — Globant (NYSE: GLOB), a digitally native company focused on reinventing businesses through innovative technology solutions, today announced results for the three and nine months ended September 30, 2024.

Please see highlights below. Note that reconciliations between IFRS and Non-IFRS financial measures are disclosed at the end of this press release.

Third Quarter 2024 Financial Highlights

Revenues rose to $614.7 million, representing 12.7% year-over-year growth.IFRS Gross Profit Margin was 36.2% compared to 36.4% in the third quarter of 2023.Non-IFRS Adjusted Gross Profit Margin was 38.5% compared to 38.2% in the third quarter of 2023.IFRS Profit from Operations Margin was 10.6% compared to 9.7% in the third quarter of 2023.Non-IFRS Adjusted Profit from Operations Margin was 15.6% compared to 15.3% in the third quarter of 2023.IFRS Diluted EPS was $0.98 compared to $0.98 in the third quarter of 2023.Non-IFRS Adjusted Diluted EPS was $1.63 compared to $1.48 in the third quarter of 2023.

Nine months ended September 30, 2024 Financial Highlights

Revenues rose to $1,773.2 million, representing 17.0% year-over-year growth.IFRS Gross Profit Margin was 35.8% compared to 36.1% in the first nine months of 2023.Non-IFRS Adjusted Gross Profit Margin was 38.2% compared to 38.2% in the first nine months of 2023.IFRS Profit from Operations Margin was 9.4% compared to 9.5% in the first nine months of 2023.Non-IFRS Adjusted Profit from Operations Margin was 15.2% compared to 15.1% in the first nine months of 2023.IFRS Diluted EPS was $2.88 compared to $2.68 in the first nine months of 2023.Non-IFRS Adjusted Diluted EPS was $4.67 compared to $4.12 in the first nine months of 2023.

Other Metrics as of and for the quarter ended September 30, 2024

Cash and cash equivalents and Short-term investments were $213.5 million as of September 30, 2024, a decrease of $109.8 million from $323.3 million as of December 31, 2023, driven mainly by the expansion into new geographies and a number of M&A earnout payments. As of September 30, 2024, we had a total amount of $165 million drawn from our credit facility.Globant completed the third quarter of 2024 with 29,998 Globers, 27,927 of whom were technology, design and innovation professionals.The geographic revenue breakdown for the third quarter of 2024 was as follows: 55.7% from North America (top country: US), 21.8% from Latin America (top country: Argentina), 17.6% from Europe (top country: Spain) and 4.9% from New Markets1 (top country: Saudi Arabia).Globant’s top customer, top five customers and top ten customers for the third quarter of 2024 represented 9.1%, 21.0% and 30.1% of revenues, respectively.During the twelve months ended September 30, 2024, Globant served a total of 969 customers (with revenues over $100,000 in the last twelve months) and continued to increase its wallet share, with 331 accounts generating more than $1 million of annual revenues, compared to 305 for the same period one year ago.In terms of currencies, 66.6% of Globant’s revenues for the third quarter of 2024 were denominated in US dollars.

“As we reflect on another remarkable quarter, I am thrilled to share that Globant continues on a trajectory of strong growth, solidifying our role as an industry leader. The level of demand we are witnessing across verticals and markets fuels our optimism for continued expansion in 2024. Our strategic investments in AI have lead to year-to-date AI-related initiatives increasing by 120% compared to the same period last year, enhancing our capabilities and driving productivity gains that translate into unique client experiences. With a strong pipeline and a commitment to redefining industries through our Studios, we are well-positioned to lead in this new era of digital innovation,” said Martín Migoya, Globant’s CEO and co-founder.

“As we conclude this quarter, I am pleased to report that Globant has achieved another quarter of record revenues, at $614.7 million, reflecting strong sequential growth driven by our top client and several key accounts. This performance aligns with our guidance and showcases our ability to enhance profitability while maintaining a prudent balance sheet. Our healthy margins are a reflection to our focus on profitability, while we see early recovery signs in specific verticals that previously faced headwinds. We are confident in our ability to sustain this momentum and build on our strong performance as we approach 2025,” explained Juan Urthiague, Globant’s CFO.

2024 Fourth Quarter and Full Year Outlook

Based on current market conditions, Globant is providing the following estimates for the fourth quarter and the full year of 2024:

Fourth quarter 2024 Revenues are estimated to be in the range of $642.0 million to $648.0 million, or 10.6% to 11.6% year-over-year growth.Fourth quarter 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15.0% to 16.0%.Fourth quarter 2024 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $1.71 to $1.75 (assuming an average of 44.7 million diluted shares outstanding during the fourth quarter).Fiscal year 2024 Revenues are estimated to be in the range of $2,415.0 million to $2,421.0 million, implying a 15.2% to 15.5% year-over-year revenue growth.Fiscal year 2024 Non-IFRS Adjusted Profit from Operations Margin is estimated to be in the range of 15.0% to 15.5%.Fiscal year 2024 Non-IFRS Adjusted Diluted EPS is estimated to be in the range of $6.37 to $6.43 (assuming an average of 44.5 million diluted shares outstanding during 2024).

Conference Call and Webcast

Martin Migoya, Globant’s CEO and co-founder, Juan Urthiague, Globant’s CFO, Patricia Pomies, Globant’s COO, and Diego Tártara, Globant’s  CTO, will discuss the third quarter 2024 results in a video conference call today beginning at 4:30pm ET.

Video conference call access information is:
https://more.globant.com/F3Q24EarningsCall
Webcast http://investors.globant.com/ 

About Globant (NYSE:GLOB)
At Globant, we create the digitally-native products that people love. We bridge the gap between businesses and consumers through technology and creativity, leveraging our expertise in AI. We dare to digitally transform organizations and strive to delight their customers.

We have more than 29,900 employees and we are present in more than 30 countries across 5 continents working for companies like Google, Electronic Arts and Santander, among others.

We were named a Worldwide Leader in CX Improvement by IDC MarketScape report. We were also featured as a business case study at Harvard, MIT and Stanford. We are a member of the Cybersecurity Tech Accord.

For more information, please visit www.globant.com

Non-IFRS Financial Measures

While the financial figures included in this press release have been computed in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”), applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” nor a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements”. The financial information in this press release has not been audited.

Globant provides non-IFRS financial measures in addition to reported IFRS results prepared in accordance with IFRS. Management believes these measures help illustrate underlying trends in the company’s business and uses the non-IFRS financial measures to establish budgets and operational goals, communicated internally and externally, for managing the company’s business and evaluating its performance. The company anticipates that it will continue to report both IFRS and certain non-IFRS financial measures in its financial results, including non-IFRS measures that exclude share-based compensation expense, depreciation and amortization, acquisition-related charges, and the related effect on income taxes of the pre-tax adjustments. Because the company’s non-IFRS financial measures are not calculated according to IFRS, these measures are not comparable to IFRS and may not necessarily be comparable to similarly described non-IFRS measures reported by other companies within the company’s industry. Consequently, Globant’s non-IFRS financial measures should not be evaluated in isolation or supplant comparable IFRS measures, but, rather, should be considered together with its condensed interim consolidated statements of financial position as of September 30, 2024 and December 31, 2023 and its condensed interim consolidated statements of comprehensive income for the three and nine months ended September 30, 2024 and 2023, prepared in accordance with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting”.

Globant is not providing a quantitative reconciliation of forward-looking Non-IFRS Adjusted Profit from Operations Margin or Non-IFRS Adjusted Diluted EPS to the most directly comparable IFRS measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, share-based compensation expense, acquisition-related charges, and the tax effect of non-IFRS adjustments. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.

Forward Looking Statements

In addition to historical information, this release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to maintain current resource utilization rates and productivity levels; our ability to manage attrition and attract and retain highly-skilled IT professionals; our ability to accurately price our client contracts; our ability to achieve our anticipated growth; our ability to effectively manage our rapid growth; our ability to retain our senior management team and other key employees; our ability to continue to innovate and remain at the forefront of emerging technologies and related market trends; our ability to retain our business relationships and client contracts; our ability to manage the impact of global adverse economic conditions; our ability to manage uncertainty concerning the instability in the current economic, political and social environment in Latin America; and other factors discussed under the heading “Risk Factors” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission and any other risk factors we include in subsequent reports on Form 6-K.

Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

 

Globant S.A.
Condensed Interim Consolidated Statements of Comprehensive Income
(In thousands of U.S. dollars, except per share amounts, unaudited)

Nine Months Ended

Three Months Ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

Revenues

1,773,206

1,515,234

614,667

545,282

Cost of revenues

(1,139,161)

(967,794)

(392,392)

(346,980)

Gross profit

634,045

547,440

222,275

198,302

Selling, general and administrative expenses

(460,877)

(390,064)

(154,178)

(142,531)

Net impairment losses on financial assets

(8,994)

(13,979)

(3,667)

(2,621)

Other operating income and expenses, net

2,738

614

777

Profit from operations

166,912

144,011

65,207

53,150

Finance income

3,876

3,500

1,349

1,324

Finance expense

(20,536)

(15,063)

(7,034)

(5,661)

Other financial results, net

7,341

11,473

1,735

3,044

Financial results, net

(9,319)

(90)

(3,950)

(1,293)

Share of results of investment in associates

161

185

105

170

Other income and expenses, net

6,142

4,075

(4,464)

2,774

Profit before income tax

163,896

148,181

56,898

54,801

Income tax

(34,401)

(31,067)

(11,357)

(10,978)

Net income for the period

129,495

117,114

45,541

43,823

Other comprehensive income, net of income tax effects

Items that may be reclassified subsequently to profit and loss:

– Exchange differences on translating foreign operations

(20,458)

(28,761)

22,555

(30,013)

– Net change in fair value on financial assets measured at FVOCI

1,019

(2,316)

15

– Gains and losses on cash flow hedges

(12,768)

117

365

(3,762)

Total comprehensive income for the period

97,288

86,154

68,461

10,063

Net income attributable to:

Owners of the Company

127,324

116,405

43,606

42,993

Non-controlling interest

2,171

709

1,935

830

Net income for the period

129,495

117,114

45,541

43,823

Total comprehensive income for the period attributable to:

Owners of the Company

94,864

85,278

64,266

10,251

Non-controlling interest

2,424

876

4,195

(188)

Total comprehensive income for the period

97,288

86,154

68,461

10,063

Earnings per share

Basic

2.94

2.74

1.00

1.01

Diluted

2.88

2.68

0.98

0.98

Weighted average of outstanding shares (in thousands)

Basic

43,248

42,474

43,419

42,696

Diluted

44,271

43,442

44,442

43,664

 

Globant S.A.
Condensed Interim Consolidated Statements of Financial Position as of September 30, 2024 and December 31, 2023
(In thousands of U.S. dollars, unaudited)

September 30, 2024

December 31, 2023

ASSETS

Current assets

Cash and cash equivalents

199,031

307,223

Investments

14,425

16,070

Trade receivables

631,632

499,283

Other assets

24,033

31,753

Other receivables

60,417

54,786

Other financial assets

3,795

15,418

Total current assets

933,333

924,533

Non-current assets

Investments

2,212

1,833

Other assets

6,358

4,088

Other receivables

28,634

26,475

Deferred tax assets

67,528

60,777

Investment in associates

1,587

1,426

Other financial assets

37,010

34,864

Property and equipment

152,440

162,736

Intangible assets

286,161

285,661

Right-of-use assets

124,159

119,400

Goodwill

1,259,622

1,105,073

Total non-current assets

1,965,711

1,802,333

TOTAL ASSETS

2,899,044

2,726,866

LIABILITIES

Current liabilities

Trade payables

102,202

124,545

Payroll and social security taxes payable

225,193

221,843

Borrowings

186,284

156,916

Other financial liabilities

105,473

68,750

Lease liabilities

29,744

47,852

Tax liabilities

25,858

33,229

Income tax payable

11,043

11,287

Other liabilities

465

896

Total current liabilities

686,262

665,318

Non-current liabilities

Trade payables

2,627

2,981

Borrowings

1,220

2,191

Other financial liabilities

117,132

135,238

Lease liabilities

90,421

70,884

Deferred tax liabilities

18,381

21,098

Income tax payable

6,526

Payroll and social security taxes payable

5,050

5,139

Provisions for contingencies

17,367

28,336

Total non-current liabilities

258,724

265,867

TOTAL LIABILITIES

944,986

931,185

Capital and reserves

Issued capital

52,286

51,705

Additional paid-in capital

1,087,711

1,022,918

Other reserves

(74,508)

(42,048)

Retained earnings

824,413

697,089

Total equity attributable to owners of the Company

1,889,902

1,729,664

Non-controlling interests

64,156

66,017

Total equity

1,954,058

1,795,681

TOTAL EQUITY AND LIABILITIES

2,899,044

2,726,866

 

Globant S.A.
Selected Cash Flow Data
(In thousands of U.S. dollars, unaudited)

Three Months Ended

September 30, 2024

September 30, 2023

Net Income for the period

45,541

43,823

Non-cash adjustments, taxes and others

76,819

53,723

Changes in working capital

(31,823)

(10,141)

Cash flows from operating activities

90,537

87,405

Capital expenditures

(20,810)

(26,758)

Cash flows from investing activities

(89,596)

(140,663)

Cash flows from financing activities

41,044

7,931

Net increase/decrease in cash & cash equivalents

41,985

(45,327)

 

Globant S.A.
Supplemental Non-IFRS Financial Information
(In thousands of U.S. dollars, unaudited)

Nine Months Ended

Three Months Ended

September 30, 2024

September 30, 2023

September 30, 2024

September 30, 2023

Reconciliation of adjusted gross profit

Gross profit

634,045

547,440

222,275

198,302

Depreciation and amortization expense

25,415

20,612

9,457

7,579

Share-based compensation expense – Equity settled

18,010

10,976

5,109

2,198

Adjusted gross profit

677,470

579,028

236,841

208,079

Adjusted gross profit margin

38.2 %

38.2 %

38.5 %

38.2 %

Reconciliation of selling, general and administrative expenses

Selling, general and administrative expenses

(460,877)

(390,064)

(154,178)

(142,531)

Depreciation and amortization expense

74,751

61,501

24,244

21,012

Share-based compensation expense – Equity settled

42,722

41,442

16,008

16,447

Acquisition-related charges (a)

17,230

14,488

1,646

5,370

Adjusted selling, general and administrative expenses

(326,174)

(272,633)

(112,280)

(99,702)

Adjusted selling, general and administrative expenses as % of revenues

(18.4) %

(18.0) %

(18.3) %

(18.3) %

Reconciliation of adjusted profit from operations

Profit from operations

166,912

144,011

65,207

53,150

Share-based compensation expense – Equity settled

60,732

52,418

21,117

18,645

Acquisition-related charges (a)

42,668

32,577

9,788

11,435

Adjusted profit from operations

270,312

229,006

96,112

83,230

Adjusted profit from operations margin

15.2 %

15.1 %

15.6 %

15.3 %

Reconciliation of net income for the period

Net income for the period

127,324

116,405

43,606

42,993

Share-based compensation expense – Equity settled

60,618

52,377

21,192

18,628

Acquisition-related charges (a)

41,334

30,639

14,954

9,878

Tax effect of non-IFRS adjustments

(22,516)

(20,380)

(7,399)

(6,720)

Adjusted net income

206,760

179,041

72,353

64,779

Adjusted net income margin

11.7 %

11.8 %

11.8 %

11.9 %

Calculation of adjusted diluted EPS

Adjusted net income

206,760

179,041

72,353

64,779

Diluted shares

44,271

43,442

44,442

43,664

Adjusted diluted EPS

4.67

4.12

1.63

1.48

(a)      Acquisition-related charges include, when applicable, amortization of purchased intangible assets included in depreciation and amortization expense line on our consolidated statements of comprehensive income, interest charges on acquisition-related indebtedness, external deal costs, acquisition-related retention bonuses, integration costs, changes in the fair value of contingent consideration liabilities, and other acquisition-related costs. We cannot provide acquisition-related charges on a forward-looking basis without unreasonable effort as such charges may fluctuate based on the timing, size, and complexity of future acquisitions as well as other uncertainty inherent in mergers and acquisitions.

 

Globant S.A.
Schedule of Supplemental Information (unaudited)

Metrics

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Total Employees

27,505

29,150

28,991

29,112

29,998

IT Professionals

25,575

27,116

26,933

27,133

27,927

North America Revenues %

58.9

57.4

56.0

56.3

55.7

Latin America Revenues %

21.6

22.9

22.9

23.0

21.8

Europe Revenues %

15.9

15.8

17.2

16.9

17.6

New Markets Revenues %

3.6

3.9

3.9

3.8

4.9

USD Revenues %

72.5

68.6

68.4

67.1

66.6

Other Currencies Revenues %

27.5

31.4

31.6

32.9

33.4

Top Customer %

8.7

8.2

8.3

8.3

9.1

Top 5 Customers %

22.5

21.4

21.8

21.0

21.0

Top 10 Customers %

32.2

30.8

30.1

30.3

30.1

Customers Served (Last Twelve Months)*

889

930

955

958

969

Customers with >$1M in Revenues (Last Twelve Months)

305

311

318

329

331

(*) Represents customers with more than $100,000 in revenues in the last twelve months.

 

Investor Relations Contact:
Arturo Langa, Globant 
investors@globant.com
+1 (877) 215-5230

Media Contact:
Wanda Weigert, Globant
pr@globant.com
+1 (877) 215-5230

1Represents Asia, Oceania and the Middle East.

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Tony Jaa Becomes GAC’s 30-Millionth Customer – GAC Wins Global Trust with “True Craftsmanship”

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GUANGZHOU, China, July 25, 2026 /PRNewswire/ — On July 16, at the roll-off ceremony for GAC’s 30-millionth vehicle, Feng Xingya, Chairman of GAC Group, handed over the key to the right-hand-drive GAC M8 PHEV (named GN8 overseas) to Tony Jaa. The milestone vehicle is headed straight for overseas markets.

Thai action superstar Tony Jaa’s choice reflects the trust of 30 million customers worldwide. That trust is built not on showmanship, but on GAC’s solid manufacturing “true craftsmanship.”

From Guangzhou to the world, there are no shortcuts – quality speaks for itself. While the industry runs standard “three-high” tests, GAC pushes further with “five-high, one-mountain, one-dust” extreme vehicle trials. New models undergo at least “two winters and one summer” of validation – a minimum 18 months of real-world road testing, covering 12 major categories and over 1,500 sub-items across wind tunnel labs and proving grounds.

For each overseas market, GAC conducts additional adaptive testing for local climate and road conditions – from Middle Eastern desert heat to Southeast Asia’s humidity and heavy rains.

Quality consistency starts at the smart manufacturing front. GAC’s AION Intelligent Eco-Plant is the world’s first “Lighthouse Factory” for new energy vehicles, featuring full-process digital quality monitoring. Automated robots with AI vision systems deliver millisecond response and millimeter-level precision – ensuring uniform quality whether vehicles roll off lines in Guangzhou or overseas plants.

Safety comes first. GAC’s magazine battery has been deployed in 1.5 million vehicles, accumulating over 160 billion kilometers of safe driving. The Starlink Safety Protection System serves nearly 2 million users, preventing 6.28 million potential incidents.

With this commitment to quality and safety, GAC has established a presence in 110 countries and won the trust of 30 million users. Standing at this new milestone, GAC will continue to refine its craftsmanship and deliver worry-free, high-quality mobility experiences to every customer worldwide.

For further information about GAC, please visit: https://www.gacgroup.com/en or follow us on social media.

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Alisira OÜ Publishes Findings on Why Most Marketing Dashboards Miss the Metrics That Matter

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Alisira OÜ has published a set of findings examining why so many marketing dashboards continue to fail to surface the numbers that actually shape decisions. The review looks at the gap between the volume of data modern platforms can collect and the amount that actually gets used when a marketing team sits down to figure out what is supposed to happen next.

TALLINN, Estonia, July 25, 2026 /PRNewswire-PRWeb/ — A Widening Gap Between Data Collection and Decision-Making

What there is often a shortage of, according to Alisira, is a dashboard that actually connects the numbers it displays to a decision someone in the room is genuinely trying to make. That distinction is where most measurement setups tend to fall apart quietly. A dashboard can be full of activity metrics, things like impressions, click volume, and session counts, without ever getting around to answering the question a budget owner is really asking. That question is usually some version of whether a given effort is working and whether more resources should be put behind it. Engagement is easy to display. Revenue contribution by channel takes more work to calculate correctly, particularly once multiple touchpoints and delayed purchases are involved, so it is the piece that tends to be most often left out of the weekly report. However, it is also the piece that leadership actually cares about when the conversation turns serious.

Where Standard Dashboards Fall Short

Alisira’s review identifies several categories of metrics that tend to be underrepresented on standard marketing dashboards, even in cases where the underlying data would in principle be accessible:

Cross-channel attribution, as opposed to last-click or single-platform creditCustomer lifetime value by acquisition source, rather than only first-purchase conversion ratesTime-to-conversion, which is frequently collapsed into a single count with no indication of the lag that is actually involvedAssisted conversions, where a channel contributed to a sale without being the final touchpointCohort-based retention figures, in place of a single blended retention % that has a tendency to hide which groups are actually staying and which are quietly leaving

Part of the difficulty is traceable back to how fragmented most measurement setups tend to be in the first place. Only 32% of marketers globally measure their media spending across both digital and traditional channels, according to Nielsen, which leaves the majority of teams working from a partial view before the dashboard-design questions have even come into play. Alisira’s findings suggest this is less a tooling problem than it is a structural one. What most organizations lack, more often than not, is a single point in the workflow where channel-level data is reconciled before it reaches a decision-maker in a usable form.

Alisira OÜ frames these findings as part of a broader shift away from dashboards built to display everything a platform can track, toward dashboards built around a smaller, more deliberate set of numbers tied to what a team actually decides to do next. The company plans to continue publishing analysis on measurement practices and marketing reporting in the months ahead.

Media Contact

Norman Drew, Alisira OÜ, 372 53687131, info@alisira.net, https://www.alisira.net/

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Hyundai Motor Group Executive Chair Euisun Chung Announces Physical AI Vision at San Francisco AI Summit

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Hyundai Motor Group shares roadmap for realizing its Physical AI vision and collaboration strategy with global tech leaders at the San Francisco AI Summit
Executive Chair Euisun Chung presented, “Hyundai Motor Group is evolving beyond the traditional boundaries of automotive manufacturing to become a Physical AI solution company,” adding, “The ultimate Physical AI vision we pursue is the realization of integrated intelligence at the city level”
The Group to leverage manufacturing competitiveness and leading robotics capabilities centered on Boston Dynamics, while establishing a data flywheel system connecting real-world operational data with continuous AI model advancement
The Group to leverage strategic partnerships with global technology leaders, including NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMind
The Group to collaborate with NVIDIA to develop a Robot Reference Platform that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities

… The initiative to support Korea’s Physical AI industry through an open ecosystem

The Group to cultivate strategic domestic hubs through investments in Saemangeum AI Valley and future advanced industries in Korea’s Yeongnam region

SAN FRANCISCO, July 25, 2026 /PRNewswire/ — Hyundai Motor Group (the Group) Executive Chair Euisun Chung today outlined the Group’s vision and strategy for Physical AI at the San Francisco AI Summit held in San Francisco, California.

The event brought together approximately 150 attendees, including Executive Chair Chung, business leaders from major Korean companies, executives from leading U.S. technology firms, startup representatives and students.

At the summit, Executive Chair Chung presented the Group’s roadmap for advancing Physical AI and outlined strategic collaboration plans with global technology leaders.

“Hyundai Motor Group is evolving beyond the traditional boundaries of automotive manufacturing by expanding into autonomous driving, robotics and AI Defined Factories, accelerating our transformation into a Physical AI solution company.” — Hyundai Motor Group Executive Chair Euisun Chung

Accelerating the Transition to a Physical AI Solution Company

Hyundai Motor Group’s Physical AI vision extends beyond intelligent devices such as vehicles and robots to intelligent spaces, including AI factories where AI seamlessly connects and optimizes entire operations. Ultimately, the Group envisions integrated intelligence at the city level, where urban infrastructure is organically connected and operated through AI.

A key differentiator for the Group is its ability to create a data flywheel that continuously connects real-world operations with AI advancement. Drawing on extensive experience in large-scale manufacturing, mobility, robotics and service operations, the Group is positioned to deploy, refine and scale Physical AI technologies in real industrial environments.

Executive Chair Chung also outlined strategic partnerships with leading technology companies, including NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMind, to further advance Physical AI capabilities.

By combining Hyundai Motor Group’s manufacturing competitiveness, mobility and robotics technologies and extensive operational data with the AI infrastructure and algorithm capabilities of global technology leaders, the Group aims to help foster a new innovation ecosystem for the Physical AI era.

Executive Chair Chung also introduced initiatives designed to support the growth of Korea’s robotics and AI ecosystem, including the development of a Robot Reference Platform with NVIDIA that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities, as well as investments in initiatives such as the Saemangeum AI Valley.

Physical AI Vision: From Intelligent Devices to Integrated Intelligence at the City Level

During the summit, Executive Chair Chung presented Hyundai Motor Group’s Physical AI vision.

“The ultimate Physical AI vision Hyundai Motor Group pursues begins with intelligent devices such as vehicles and robots, expands to intelligent spaces such as AI factories, and ultimately realizes integrated intelligence at the city level, where urban infrastructure is seamlessly connected and operated.” — Hyundai Motor Group Executive Chair Chung

The Group’s vision begins with intelligent devices, where AI capabilities enhance vehicles and robots. It then expands to intelligent spaces, including AI factories where AI autonomously integrates logistics, production and quality management across entire operations.

Ultimately, Hyundai Motor Group envisions city-level intelligence, where critical infrastructure and assets — including energy, mobility and robotics systems — are connected and optimized in real time.

Executive Chair Chung also highlighted the Group’s key strengths in realizing its Physical AI vision:

World-class manufacturing competitiveness: Hyundai Motor Group has built extensive expertise through decades of operating global manufacturing facilities, managing quality systems and optimizing supply chains. This foundation enables the Group to apply AI technologies to products, processes and services while rapidly validating and scaling innovations in real-world environments.
Leading robotics capabilities: Hyundai Motor Group has established robotics as a key pillar of its future business portfolio. Boston Dynamics’ quadruped robot Spot®, logistics robot Stretch®, and Hyundai Motor Group Robotics LAB’s next-generation mobile robot platform MobED are recognized for combining technological competitiveness with real-world applicability.

In particular, the humanoid robot Atlas® is emerging as a representative example of Physical AI, supporting and collaborating with people across manufacturing, logistics and mobility environments.

Establishing a data flywheel system: Hyundai Motor Group is establishing a data flywheel system that leverages data generated across manufacturing operations, vehicles, logistics systems and robotics demonstrations to continuously advance AI models. Enhanced algorithms are then reapplied to real-world operations, creating a virtuous cycle that improves performance and strengthens Physical AI capabilities.

Accelerating the Future of Physical AI Through Partnerships with Global Tech Leaders

Executive Chair Chung also outlined concrete initiatives to position Hyundai Motor Group as a leader in human-centered Physical AI through strategic collaborations with NVIDIA and Waymo, as well as Boston Dynamics’ strategic partnership with Google DeepMind.

“By combining Hyundai Motor Group’s strengths in manufacturing, robotics and data with the capabilities of global technology leaders, we can help create a new innovation ecosystem for the Physical AI era.” — Hyundai Motor Group Executive Chair Euisun Chung

NVIDIA – Advancing Physical AI infrastructure and talent development

Hyundai Motor Group is expanding collaboration with NVIDIA to strengthen Physical AI infrastructure and cultivate AI talent. Building on a supply agreement for 50,000 NVIDIA Blackwell GPUs and a memorandum of understanding signed last year to advance Korea’s Physical AI capabilities, the Group is pursuing a range of initiatives, including the establishment of Hyundai Motor Group Robot Application Center, as well as various collaborations aimed at strengthening Korea’s Physical AI infrastructure and AI talent ecosystem, including the NVIDIA’s AI Technology Center.

In manufacturing, the Group is leveraging NVIDIA’s platform to create more sophisticated digital twins of production facilities, enhancing process design, operational optimization and validation efficiency. The collaboration also includes the integration of NVIDIA’s autonomous driving solutions, including automotive semiconductors, sensors and architecture, with Hyundai Motor Group vehicle platforms.

Waymo – Strengthening autonomous driving collaboration

Hyundai Motor Group continues to strengthen its strategic partnership with Waymo in the autonomous driving sector to support the development of a safe and innovative autonomous driving ecosystem. Autonomous driving vehicles require a wide range of specialized capabilities, including redundant systems for steering, braking, power and communications, dedicated features such as power-operated doors, as well as enhanced functional safety and cybersecurity technologies.

Hyundai Motor Group plans to produce IONIQ 5 vehicles with specific autonomous-ready modifications at Hyundai Motor Group Metaplant America (HMGMA) in Georgia.

Google DeepMind – Accelerating next-generation humanoid robotics

Boston Dynamics has established a strategic partnership with Google DeepMind to accelerate the development of next-generation humanoid robots. Advanced AI models and training systems are essential for robots to perform complex tasks in real-world environments and collaborate effectively with people. Through this partnership, Boston Dynamics robots are expected to achieve greater autonomy and adapt more effectively to complex operating environments.

Hyundai Motor Group plans to establish a robot production facility in the U.S. with an annual capacity of up to 30,000 units by 2028. The Atlas humanoid robot will first be deployed at production facilities including HMGMA before broader deployment is expanded through phased validation.

Building an Open Ecosystem Through the Robot Reference Platform and Continued Investment in Korea’s Physical AI Future

Executive Chair Chung also outlined initiatives aimed at supporting the growth of Korea’s Physical AI ecosystem through open collaboration and continued investment.

“The outcomes of collaboration with global technology leaders should contribute to the growth of Korea’s Physical AI industry. To that end, Hyundai Motor Group plans to foster an open ecosystem that supports innovation in robotics and AI technologies.” — Hyundai Motor Group Executive Chair Euisun Chung

Key initiatives to build an open ecosystem for robotics and AI innovation include:

Robot Reference Platform: Hyundai Motor Group and NVIDIA are collaborating to develop a Robot Reference Platform that combines Hyundai Motor Group’s and NVIDIA’s Physical AI capabilities.

The platform will provide research robot models to universities, research institutes and startups, helping foster an open ecosystem that supports technological innovation and the development of Physical AI talent while contributing to the broader growth of Korea’s robotics and AI industries. 

Supporting universities, research institutes and startups: The Robot Reference Platform is expected to provide universities, research institutes and startups with a standardized hardware and software environment, enabling them to more easily develop and validate Physical AI technologies. The initiative aims to help address challenges faced by organizations with innovative ideas but limited access to commercialization opportunities and validation infrastructure.

Hyundai Motor Group is also continuing large-scale investments aimed at driving the next leap forward in Korea’s industrial and technology ecosystem. Continued investments in Korea’s industrial and technology ecosystem include:

Saemangeum AI Valley: In the Saemangeum region of Jeonbuk State, the Group is developing Saemangeum AI Valley, which includes an approximate KRW 9 trillion investment in AI data centers, robotics manufacturing clusters, electrolyzer plants and AI hydrogen city infrastructure. 

In particular, the robotics manufacturing cluster will serve not only as a production base for the Group’s own robotics products, but also as a robotics foundry that provides manufacturing services for small and medium-sized enterprises that lack manufacturing expertise.

Advanced industrial hubs in the Yeongnam region: Hyundai Motor Group plans to invest a total of KRW 42 trillion over the next decade to foster advanced industrial hubs focused on AI-driven manufacturing, future aerospace industries and sustainable energy infrastructure.

Through these initiatives, Hyundai Motor Group aims to strengthen key foundations for the Physical AI era, including data and energy infrastructure, robotics production capabilities and real-world validation capabilities. The Group also expects these investments to contribute to enhanced industrial competitiveness, balanced regional development, job creation and broader economic vitality in Korea.

About Hyundai Motor Group

Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT, and service. With about 250,000 employees worldwide, the Group’s mobility brands include Hyundai, Kia, and Genesis. Armed with creative thinking, cooperative communication, and the will to take on any challenges, we strive to create a better future for all.

More information about Hyundai Motor Group can be found at: http://www.hyundaimotorgroup.com or Newsroom: Media Hub by Hyundai, Kia Global Newsroom, Genesis Newsroom

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SOURCE Hyundai Motor Company

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