The launch of Disney's (DIS 3.69%) Disney+ service has been a boon to Globant S.A. (GLOB 3.22%), an information technology services company that helps companies execute on digital transformation projects. Disney is Globant's biggest customer, representing almost 11% of revenue, and in the third quarter, Globant's Disney revenue increased more than 27% year over year because of work done to support the launch of Disney+ in November.
Optimism that Disney revenue and growing demand from other top customers will support sales growth again in 2020 helped lift Globant's shares 15.7% in January, according to S&P Global Market Intelligence. For perspective, the SPDR S&P 500 Trust ETF (SPY 3.18%) fell slightly, and Technology Select Sector SPDR ETF (XLK 3.59%) was up 4% in January.
Globant leverages small teams called Agile Pods to deliver better projects to customers faster. These teams are supported by the latest technology, such as artificial intelligence tools. Globant's goal is to create digital solutions that resonate with end users. For example, its projects make sure software, design, and user experience come together successfully for customers.
In addition to helping improve usability and content for Disney+, Globant is also working with Disney's parks and resorts, cruise line, and television units. But Disney isn't Globant's only customer.
Globant exited the third quarter with 744 active customers, including 104 clients that are generating over $1 million in annual revenues and 13 accounts that are generating over $10 million in annual revenues. Revenue from customers outside its 10 largest accounts grew 44% year over year in Q3 2019.
In 2020, Globant's top-line and bottom-line performance should benefit from the rollout of Disney+ in new international markets, and from projects designed to leverage Disney+ data in existing markets. There's also the possibility of additional business stemming from Disney's acquisition of Fox last year.
The Disney tailwind could help Globant deliver another year of double-digit revenue growth, boosting earnings. Globant's adjusted diluted earnings per share was $0.62 on revenue of $171.3 million in the third quarter, and Q4 2019 results are expected on Feb. 14.