Grid Dynamics Reports Fourth Quarter and Full Year 2024 Financial Results
Grid Dynamics (NASDAQ: GDYN) reported its fourth quarter and full year 2024 financial results. The company achieved Q4 revenue of $100.3 million, surpassing its October 2024 outlook of $95.0-$97.0 million and marking a 28.5% year-over-year increase. Full-year 2024 revenue reached $350.6 million, up from $312.9 million in 2023.
Key verticals included Retail (32.6% of Q4 revenue), Technology, Media, and Telecom (23.0%), and Finance (23.0%), with Finance growing 63.8% sequentially and 180.1% year-over-year. The CPG and Manufacturing vertical, contributing 11.2% of Q4 revenue, grew 14.8% sequentially and 16.4% year-over-year.
For Q4 2024, GAAP gross profit was $37.0 million (36.9% margin), Non-GAAP gross profit was $37.6 million (37.5% margin), and GAAP net income was $4.5 million ($0.05 per share). Non-GAAP net income was $10.3 million ($0.12 per share), with Non-GAAP EBITDA at $15.6 million.
Full-year 2024 saw GAAP gross profit of $127.0 million (36.2% margin) and Non-GAAP gross profit of $129.1 million (36.8% margin). GAAP net income was $4.0 million ($0.05 per share), while Non-GAAP net income was $37.2 million ($0.47 per share). Non-GAAP EBITDA reached $52.5 million.
For Q1 2025, the company expects revenues of $98.0-$100.0 million and Non-GAAP EBITDA of $12.9-$13.9 million. Full-year 2025 revenue is projected at $415.0-$435.0 million, representing 18.4%-24.1% growth.
- Q4 2024 revenue of $100.3 million, exceeding the outlook range of $95.0-$97.0 million.
- Full-year 2024 revenue of $350.6 million, up from $312.9 million in 2023.
- Finance vertical grew 63.8% sequentially and 180.1% year-over-year.
- GAAP net income for Q4 2024 was $4.5 million, up from $2.9 million in Q4 2023.
- Non-GAAP net income for Q4 2024 was $10.3 million, up from $7.5 million in Q4 2023.
- Non-GAAP EBITDA for Q4 2024 was $15.6 million, up from $10.7 million in Q4 2023.
- Full-year 2024 GAAP net income of $4.0 million, compared to a net loss of $1.8 million in 2023.
- Full-year 2024 Non-GAAP net income of $37.2 million, up from $31.7 million in 2023.
- Full-year 2024 Non-GAAP EBITDA of $52.5 million, up from $44.2 million in 2023.
- Cash provided by operating activities decreased to $30.2 million in 2024 from $41.1 million in 2023.
Insights
Grid Dynamics' Q4 results represent a significant inflection point in the company's growth trajectory. The achievement of
The revenue mix reveals important strategic progress. The Finance vertical's exceptional
The margin profile shows encouraging trends, with non-GAAP gross margins expanding to
The company's AI strategy appears to be gaining meaningful traction, with over 130 pipeline opportunities representing
The balance sheet has been significantly strengthened with
Looking ahead, the 2025 revenue guidance of
Fourth Quarter Revenue of
We are pleased to report fourth quarter 2024 revenues of
“Grid Dynamics’ revenues and profitability were the highest in the Company’s history, with the fourth quarter marking a significant milestone of
2025 is off to a great start with increasing demand for our services across our customer base. With this confidence, we are providing full-year 2025 revenue guidance, projecting
We are excited about the opportunities in 2025. Our foundation is strong, and I am confident that we will successfully execute our strategy,” said Leonard Livschitz, CEO.
Fourth Quarter of 2024 Financial Highlights
-
Total revenues were
$100.3 million 14.7% and28.5% on a sequential and year-over-year basis, respectively.
-
GAAP gross profit was
$37.0 million 36.9% of revenues, in the fourth quarter of 2024, compared to$28.1 million 36.0% of revenues, in the prior year period. Non-GAAP gross profit was$37.6 million 37.5% of revenues, in the fourth quarter of 2024, compared to$28.6 million 36.6% of revenues, in the fourth quarter of 2023.
-
GAAP net income was
$4.5 million $0.05 $2.9 million $0.04
-
Non-GAAP net income for the fourth quarter of 2024 was
$10.3 million $0.12 $7.5 million $0.10
-
Non-GAAP EBITDA (earnings before interest, taxes, depreciation, amortization, other income, net, fair value adjustments, stock-based compensation, and transaction and transformation-related costs as well as geographic reorganization expenses), a non-GAAP metric, was
$15.6 million $10.7 million
2024 Full Year Financial Highlights
-
Total revenues were
$350.6 million 12.0% year-over-year.
-
GAAP gross profit was
$127.0 million 36.2% of revenues, compared to GAAP gross profit of$113.1 million 36.2% of revenues, in 2023. Non-GAAP gross profit was$129.1 million 36.8% of revenues, compared to non-GAAP gross profit of$115.1 million 36.8% of revenues, in 2023.
-
GAAP net income was
$4.0 million $0.05 $1.8 million $(0.02)
-
Non-GAAP net income for the year ended December 31, 2024 was
$37.2 million $0.47 $31.7 million $0.42
-
Non-GAAP EBITDA (earnings before interest, taxes, depreciation, amortization, other income, net, fair value adjustments, stock-based compensation, and transaction and transformation-related costs as well as geographic reorganization expenses), a non-GAAP metric, was
$52.5 million $44.2 million
See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Information” below for a discussion of our non-GAAP measures.
Cash Flow and Other Metrics
-
Cash provided by operating activities was
$30.2 million $41.1 million
-
During the fourth quarter of 2024, we closed a follow-on public offering of common stock, generating
$107.6 million
-
Cash and cash equivalents totaled
$334.7 million $257.2 million
- Total headcount was 4,730 employees as of December 31, 2024, compared with 3,920 as of December 31, 2023.
Financial Outlook
First Quarter
-
The Company expects revenues in the first quarter of 2025 to be in the range of
$98.0 $100.0 million 22.8% to25.3% on a year-over-year basis. At the midpoint of$99.0 million 24.0% on an year-over-year basis.
-
Non-GAAP EBITDA in the first quarter of 2025 is expected to be between
$12.9 $13.9 million
- For the first quarter of 2025, we expect our basic share count to be in the 84.0-85.0 million range and diluted share count to be in the 89.0-90.0 million range.
Full Year
-
The Company expects full year 2025 revenues to be in the range of
$415.0 $435.0 million 18.4% to24.1% on a year-over-year basis. At the midpoint of$425.0 million 21.2% .
Grid Dynamics is not able, at this time, to provide GAAP targets for net income for the first quarter and full year of 2025 because of the difficulty of estimating certain items excluded from non-GAAP EBITDA that cannot be reasonably predicted, such as interest, taxes, other income/(expense), fair-value adjustments, geographic reorganization expenses, and charges related to stock-based compensation expense. The effect of these excluded items may be significant.
Conference Call and Webcast
Grid Dynamics will host a conference call at 4:30 p.m. ET on Thursday, February 20, 2025 to discuss its fourth quarter and full year 2024 financial results. Investors and other interested parties can access a webcast of the video conference call on the Investor Relations section of the Company’s website at https://ir.griddynamics.com/.
A replay will also be available after the call at https://ir.griddynamics.com/.
About Grid Dynamics
Grid Dynamics (NASDAQ: GDYN) is a leading provider of technology consulting, platform and product engineering, and advanced analytics services. Fusing technical vision with business acumen, we enable positive business outcomes for enterprise companies undergoing business transformation by solving their most pressing technical challenges. A key differentiator for Grid Dynamics is our 7+ years of experience and leadership in enterprise AI, supported by profound expertise and ongoing investment in data, analytics, cloud & DevOps, application modernization, and customer experience. Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the
Non-GAAP Financial Measures
To supplement the financial measures presented in Grid Dynamics press release in accordance with generally accepted accounting principles in
A “non-GAAP financial measure” refers to a numerical measure of Grid Dynamics historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Grid Dynamics provides certain non-GAAP measures as additional information relating to its operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity and profitability.
Grid Dynamics has included these non-GAAP financial measures because they are financial measures used by Grid Dynamics’ management to evaluate Grid Dynamics’ core operating performance and trends, to make strategic decisions regarding the allocation of capital and new investments and are among the factors analyzed in making performance-based compensation decisions for key personnel.
Grid Dynamics believes the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of core operations or do not require a cash outlay, such as stock-based compensation expense. Grid Dynamics believes these non-GAAP measures provide investors and other users of its financial information consistency and comparability with its past financial performance and facilitate period to period comparisons of operations. Grid Dynamics believes these non-GAAP measures are useful in evaluating its operating performance compared to that of other companies in its industry, as they generally eliminate the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.
There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies. Grid Dynamics compensates for these limitations by providing investors and other users of its financial information a reconciliation of non-GAAP measures to the related GAAP financial measures. Grid Dynamics encourages investors and others to review its financial information in its entirety, not to rely on any single financial measure, and to view its non-GAAP measures in conjunction with GAAP financial measures. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures attached to this release.
Forward-Looking Statements
This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are not historical facts, and involve risks and uncertainties that could cause actual results of Grid Dynamics to differ materially from those expected and projected. Grid Dynamics intends such forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “believes,” “estimates,” “anticipates,” “expects,” “intends,” “plans,” “may,” “will,” “potential,” “projects,” “predicts,” “continue,” or “should,” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include, without limitation, the quotations of management, the section titled “Financial Outlook,” and statements concerning Grid Dynamics’s expectations with respect to future performance, particularly in light of the macroeconomic environment and the Russian invasion of
These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected and projected results. Most of these factors are outside Grid Dynamics’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) Grid Dynamics has a relatively short operating history and operates in a rapidly evolving industry, which makes it difficult to evaluate future prospects and may increase the risk that it will not continue to be successful and may adversely impact our stock price; (ii) Grid Dynamics may be unable to effectively manage its growth or achieve anticipated growth, particularly as it expands into new geographies, which could place significant strain on Grid Dynamics’ management personnel, systems and resources; (iii) Grid Dynamics’ revenues are highly dependent on a limited number of clients and industries that are affected by seasonal trends, and any decrease in demand for outsourced services in these industries may reduce Grid Dynamics’ revenues and adversely affect Grid Dynamics’ business, financial condition and results of operations; (iv) macroeconomic conditions, inflationary pressures, and the geopolitical climate, including the Russian invasion of
Grid Dynamics cautions that the foregoing list of factors is not exclusive. Grid Dynamics cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Grid Dynamics does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Further information about factors that could materially affect Grid Dynamics, including its results of operations and financial condition, is set forth in the Company’s most recent Quarterly Report on Form 10-Q, particularly under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and in other periodic filings Grid Dynamics makes with the SEC.
Schedule 1: GRID DYNAMICS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME/(LOSS) AND COMPREHENSIVE INCOME/(LOSS) Unaudited (In thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
100,282 |
|
|
$ |
78,069 |
|
|
$ |
350,571 |
|
|
$ |
312,910 |
|
Cost of revenues |
|
63,234 |
|
|
|
49,955 |
|
|
|
223,566 |
|
|
|
199,764 |
|
Gross profit |
|
37,048 |
|
|
|
28,114 |
|
|
|
127,005 |
|
|
|
113,146 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Engineering, research, and development |
|
5,402 |
|
|
|
3,863 |
|
|
|
18,347 |
|
|
|
14,741 |
|
Sales and marketing |
|
7,227 |
|
|
|
6,422 |
|
|
|
28,622 |
|
|
|
24,151 |
|
General and administrative |
|
23,158 |
|
|
|
18,894 |
|
|
|
82,141 |
|
|
|
79,834 |
|
Total operating expenses |
|
35,787 |
|
|
|
29,179 |
|
|
|
129,110 |
|
|
|
118,726 |
|
|
|
|
|
|
|
|
|
||||||||
Income/(loss) from operations |
|
1,261 |
|
|
|
(1,065 |
) |
|
|
(2,105 |
) |
|
|
(5,580 |
) |
Interest and other income, net |
|
4,504 |
|
|
|
2,569 |
|
|
|
13,160 |
|
|
|
10,418 |
|
Income before income taxes |
|
5,765 |
|
|
|
1,504 |
|
|
|
11,055 |
|
|
|
4,838 |
|
Provision for/(benefit from) income taxes |
|
1,241 |
|
|
|
(1,398 |
) |
|
|
7,014 |
|
|
|
6,603 |
|
Net income/(loss) |
$ |
4,524 |
|
|
$ |
2,902 |
|
|
$ |
4,041 |
|
|
$ |
(1,765 |
) |
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
(4,095 |
) |
|
|
785 |
|
|
|
(4,186 |
) |
|
|
2,122 |
|
Comprehensive income/(loss) |
$ |
429 |
|
|
$ |
3,687 |
|
|
$ |
(145 |
) |
|
$ |
357 |
|
|
|
|
|
|
|
|
|
||||||||
Income/(loss) per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.06 |
|
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
(0.02 |
) |
Diluted |
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
80,386 |
|
|
|
75,690 |
|
|
|
77,465 |
|
|
|
75,193 |
|
Diluted |
|
83,808 |
|
|
|
78,033 |
|
|
|
79,974 |
|
|
|
75,193 |
|
Schedule 2: GRID DYNAMICS HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS Unaudited (In thousands, except share and per share data) |
|||||||
|
As of |
||||||
|
December 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
334,655 |
|
|
$ |
257,227 |
|
Trade receivable, net of allowance of |
|
69,371 |
|
|
|
53,559 |
|
Prepaid expenses and other current assets |
|
19,278 |
|
|
|
13,194 |
|
Total current assets |
|
423,304 |
|
|
|
323,980 |
|
Property and equipment, net |
|
14,018 |
|
|
|
11,358 |
|
Operating lease right-of-use assets, net |
|
12,108 |
|
|
|
10,446 |
|
Intangible assets, net |
|
47,918 |
|
|
|
26,546 |
|
Goodwill |
|
83,407 |
|
|
|
53,868 |
|
Deferred tax assets |
|
8,774 |
|
|
|
6,418 |
|
Other noncurrent assets |
|
2,663 |
|
|
|
2,549 |
|
Total assets |
$ |
592,192 |
|
|
$ |
435,165 |
|
|
|
|
|
||||
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
4,069 |
|
|
$ |
3,621 |
|
Accrued compensation and benefits |
|
21,677 |
|
|
|
19,263 |
|
Operating lease liabilities, current |
|
5,420 |
|
|
|
4,235 |
|
Accrued expenses and other current liabilities |
|
24,378 |
|
|
|
15,104 |
|
Total current liabilities |
|
55,544 |
|
|
|
42,223 |
|
Deferred tax liabilities |
|
8,914 |
|
|
|
3,274 |
|
Operating lease liabilities, noncurrent |
|
7,205 |
|
|
|
6,761 |
|
Contingent consideration payable, noncurrent |
|
2,700 |
|
|
|
— |
|
Total liabilities |
|
74,363 |
|
|
|
52,258 |
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock, |
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
532,578 |
|
|
|
397,511 |
|
Accumulated deficit |
|
(11,845 |
) |
|
|
(15,886 |
) |
Accumulated other comprehensive income/(loss) |
|
(2,912 |
) |
|
|
1,274 |
|
Total stockholders’ equity |
|
517,829 |
|
|
|
382,907 |
|
Total liabilities and stockholders’ equity |
$ |
592,192 |
|
|
$ |
435,165 |
|
Schedule 3: GRID DYNAMICS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In thousands) |
|||||||
|
Year Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net income/(loss) |
$ |
4,041 |
|
|
$ |
(1,765 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
14,228 |
|
|
|
8,926 |
|
Operating lease right-of-use assets amortization expense |
|
4,509 |
|
|
|
3,192 |
|
Bad debt expense |
|
2,301 |
|
|
|
945 |
|
Stock-based compensation |
|
34,167 |
|
|
|
35,516 |
|
Deferred income taxes |
|
(4,033 |
) |
|
|
(4,140 |
) |
Other income, net |
|
(3,071 |
) |
|
|
(3,896 |
) |
Changes in assets and liabilities: |
|
|
|
||||
Trade receivable |
|
(9,485 |
) |
|
|
2,084 |
|
Prepaid expenses and other assets |
|
(8,319 |
) |
|
|
(511 |
) |
Accounts payable |
|
(1,503 |
) |
|
|
(538 |
) |
Accrued compensation and benefits |
|
(274 |
) |
|
|
5,260 |
|
Operating lease liabilities |
|
(4,542 |
) |
|
|
(3,135 |
) |
Income tax, net |
|
415 |
|
|
|
(1,836 |
) |
Accrued expenses and other current liabilities |
|
1,764 |
|
|
|
991 |
|
Net cash provided by operating activities |
|
30,198 |
|
|
|
41,093 |
|
Cash flows from investing activities |
|
|
|
||||
Purchase of property and equipment |
|
(11,766 |
) |
|
|
(7,870 |
) |
Proceeds from sale of equity securities |
|
3,581 |
|
|
|
— |
|
Purchase of equity securities |
|
— |
|
|
|
(250 |
) |
Acquisition of business, net of cash acquired |
|
(43,072 |
) |
|
|
(17,830 |
) |
Other investing activities, net |
|
(44 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(51,301 |
) |
|
|
(25,950 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from common stock offering |
|
108,077 |
|
|
|
— |
|
Proceeds from exercises of stock options |
|
2,254 |
|
|
|
510 |
|
Payments of tax obligations resulted from net share settlement of vested stock awards |
|
(8,697 |
) |
|
|
(16,831 |
) |
Equity issuance costs |
|
(472 |
) |
|
|
— |
|
Net cash provided by/(used in) financing activities |
|
101,162 |
|
|
|
(16,321 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(2,131 |
) |
|
|
1,676 |
|
Net increase in cash, cash equivalents and restricted cash |
|
77,928 |
|
|
|
498 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
257,227 |
|
|
|
256,729 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
335,155 |
|
|
$ |
257,227 |
|
Schedule 3: GRID DYNAMICS HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Unaudited (In thousands) (Continued) |
|||||||
|
Year Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Supplemental disclosure of cash flow information: |
|
|
|
||||
Cash paid for income taxes |
$ |
10,967 |
|
$ |
12,365 |
||
Supplemental disclosure of non-cash activities |
|
|
|
||||
Acquisition fair value of contingent consideration issued for acquisition of business |
$ |
10,180 |
|
|
$ |
932 |
|
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets:
|
Year Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Balance sheet classification |
|
|
|
||||
Cash and cash equivalents |
$ |
334,655 |
|
$ |
257,227 |
||
Restricted cash in Prepaid and other current assets |
|
500 |
|
|
|
— |
|
Total cash, cash equivalents and restricted cash |
$ |
335,155 |
|
|
$ |
257,227 |
|
Schedule 4: GRID DYNAMICS HOLDINGS, INC. RECONCILIATION OF NON-GAAP INFORMATION Unaudited (In thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
100,282 |
|
$ |
78,069 |
|
$ |
350,571 |
|
$ |
312,910 |
||||
Cost of revenues |
|
63,234 |
|
|
|
49,955 |
|
|
|
223,566 |
|
|
|
199,764 |
|
GAAP gross profit |
|
37,048 |
|
|
|
28,114 |
|
|
|
127,005 |
|
|
|
113,146 |
|
Stock-based compensation |
|
561 |
|
|
|
477 |
|
|
|
2,078 |
|
|
|
1,959 |
|
Non-GAAP gross profit |
$ |
37,609 |
|
|
$ |
28,591 |
|
|
$ |
129,083 |
|
|
$ |
115,105 |
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net income/(loss) |
$ |
4,524 |
|
|
$ |
2,902 |
|
|
$ |
4,041 |
|
|
$ |
(1,765 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
4,649 |
|
|
|
2,671 |
|
|
|
14,228 |
|
|
|
8,926 |
|
Provision for/(benefit from) income taxes |
|
1,241 |
|
|
|
(1,398 |
) |
|
|
7,014 |
|
|
|
6,603 |
|
Stock-based compensation |
|
8,198 |
|
|
|
7,839 |
|
|
|
34,167 |
|
|
|
35,516 |
|
Geographic reorganization (1) |
|
365 |
|
|
|
330 |
|
|
|
1,627 |
|
|
|
1,858 |
|
Transaction and transformation-related costs (2) |
|
906 |
|
|
|
519 |
|
|
|
3,144 |
|
|
|
2,038 |
|
Restructuring costs (3) |
|
256 |
|
|
|
402 |
|
|
|
1,413 |
|
|
|
1,488 |
|
Interest and other income, net(4) |
|
(4,504 |
) |
|
|
(2,569 |
) |
|
|
(13,160 |
) |
|
|
(10,418 |
) |
Non-GAAP EBITDA |
$ |
15,635 |
|
|
$ |
10,696 |
|
|
$ |
52,474 |
|
|
$ |
44,246 |
|
__________________________ |
||
(1) |
|
Geographic reorganization includes expenses connected with military actions of |
(2) |
|
Transaction and transformation-related costs include, when applicable, external deal costs, transaction-related professional fees, transaction-related retention bonuses, which are allocated proportionally across cost of revenue, engineering, research and development, sales and marketing and general and administrative expenses as well as other transaction-related costs including integration expenses consisting of outside professional and consulting services. |
(3) |
|
We implemented a restructuring plan during the first quarter of 2023. Our restructuring costs comprised of severance charges and respective taxes and are included in General and administrative expenses in the Company’s consolidated statement of income/(loss) and comprehensive income/(loss). |
(4) |
|
Interest and other income, net consist primarily of gains and losses on foreign currency transactions, fair value adjustments, interest on cash held at banks and returns on investments in money-market funds, and other miscellaneous non-operating expenses. |
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net income/(loss) |
$ |
4,524 |
|
|
$ |
2,902 |
|
|
$ |
4,041 |
|
|
$ |
(1,765 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
8,198 |
|
|
|
7,839 |
|
|
|
34,167 |
|
|
|
35,516 |
|
Geographic reorganization (1) |
|
365 |
|
|
|
330 |
|
|
|
1,627 |
|
|
|
1,858 |
|
Transaction and transformation-related costs (2) |
|
906 |
|
|
|
519 |
|
|
|
3,144 |
|
|
|
2,038 |
|
Restructuring costs (3) |
|
256 |
|
|
|
402 |
|
|
|
1,413 |
|
|
|
1,488 |
|
Other income, net(4) |
|
(2,004 |
) |
|
|
(46 |
) |
|
|
(2,597 |
) |
|
|
(1,113 |
) |
Tax impact of non-GAAP adjustments (5) |
|
(1,961 |
) |
|
|
(4,457 |
) |
|
|
(4,573 |
) |
|
|
(6,338 |
) |
Non-GAAP net income |
$ |
10,284 |
|
|
$ |
7,489 |
|
|
$ |
37,222 |
|
|
$ |
31,684 |
|
Number of shares used in the GAAP diluted EPS |
|
83,808 |
|
|
|
78,033 |
|
|
|
79,974 |
|
|
|
75,193 |
|
GAAP diluted EPS |
$ |
0.05 |
|
|
$ |
0.04 |
|
|
$ |
0.05 |
|
|
$ |
(0.02 |
) |
Number of shares used in the non-GAAP diluted EPS |
|
83,808 |
|
|
|
78,033 |
|
|
|
79,974 |
|
|
|
75,193 |
|
Non-GAAP diluted EPS |
$ |
0.12 |
|
|
$ |
0.10 |
|
|
$ |
0.47 |
|
|
$ |
0.42 |
|
__________________________ |
||
(1) |
|
Geographic reorganization includes expenses connected with military actions of |
(2) |
|
Transaction and transformation-related costs include, when applicable, external deal costs, transaction-related professional fees, transaction-related retention bonuses, which are allocated proportionally across cost of revenue, engineering, research and development, sales and marketing and general and administrative expenses as well as other transaction-related costs including integration expenses consisting of outside professional and consulting services. |
(3) |
|
We implemented a restructuring plan during the first quarter of 2023. Our restructuring costs comprised of severance charges and respective taxes and are included in General and administrative expenses in the Company’s consolidated statement of income/(loss) and comprehensive income/(loss). |
(4) |
|
Other income, net consist primarily of gains and losses on foreign currency transactions, fair value adjustments, and other miscellaneous non-operating income and expense. During the fourth quarter ended December 31, 2024, the Company started to include interest (income)/expense, net in its calculation of non-GAAP net income. As a result, the Company has adjusted previously reported Other (income)/expense, net adjustment to include interest income, net of |
(5) |
|
Reflects the estimated tax impact of the non-GAAP adjustments presented in the table. |
Schedule 5: GRID DYNAMICS HOLDINGS, INC. REVENUES BY VERTICALS Unaudited (In thousands) |
|||||||||||||
|
Three Months Ended December 31, |
||||||||||||
|
|
2024 |
|
|
% of revenue |
|
|
2023 |
|
|
% of revenue |
||
Retail |
$ |
32,724 |
|
32.6 |
% |
|
$ |
24,579 |
|
31.5 |
% |
||
Technology, Media and Telecom |
|
23,599 |
|
|
23.5 |
% |
|
|
24,191 |
|
|
31.0 |
% |
Finance |
|
23,190 |
|
|
23.1 |
% |
|
|
8,280 |
|
|
10.6 |
% |
CPG/Manufacturing |
|
11,259 |
|
|
11.2 |
% |
|
|
9,675 |
|
|
12.4 |
% |
Healthcare and Pharma |
|
2,432 |
|
|
2.4 |
% |
|
|
3,361 |
|
|
4.3 |
% |
Other |
|
7,078 |
|
|
7.2 |
% |
|
|
7,983 |
|
|
10.2 |
% |
Total |
$ |
100,282 |
|
|
100.0 |
% |
|
$ |
78,069 |
|
|
100.0 |
% |
|
Year Ended December 31, |
||||||||||||
|
|
2024 |
|
|
% of revenue |
|
|
2023 |
|
|
% of revenue |
||
Retail |
$ |
113,957 |
|
32.5 |
% |
|
$ |
102,551 |
|
32.8 |
% |
||
Technology, Media and Telecom |
|
95,048 |
|
|
27.1 |
% |
|
|
98,830 |
|
|
31.6 |
% |
Finance |
|
60,157 |
|
|
17.2 |
% |
|
|
28,842 |
|
|
9.2 |
% |
CPG/Manufacturing |
|
40,468 |
|
|
11.5 |
% |
|
|
42,861 |
|
|
13.7 |
% |
Healthcare and Pharma |
|
11,109 |
|
|
3.2 |
% |
|
|
13,653 |
|
|
4.4 |
% |
Other |
|
29,832 |
|
|
8.5 |
% |
|
|
26,173 |
|
|
8.3 |
% |
Total |
$ |
350,571 |
|
|
100.0 |
% |
|
$ |
312,910 |
|
|
100.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220323868/en/
Grid Dynamics Investor Relations:
investorrelations@griddynamics.com
Source: Grid Dynamics Holdings, Inc.
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