Grid Dynamics Reports Second Quarter 2024 Financial Results
Grid Dynamics (Nasdaq: GDYN) reported record Q2 2024 revenue of $83.0 million, surpassing their outlook range of $80.0-$82.0 million. The Retail and TMT sectors contributed the most, with 32.2% and 28.0% of revenues, respectively. The Finance vertical experienced significant growth, increasing 22.7% sequentially and 86.2% YoY. Despite the revenue achievement, the company reported a GAAP net loss of $0.8 million or $(0.01) per share. Non-GAAP net income was $6.0 million or $0.08 per diluted share. The GAAP gross profit was $29.6 million (35.6% of revenue) while non-GAAP gross profit was $30.1 million (36.2% of revenue).
Grid Dynamics' Q3 2024 revenue is projected to be $84.0-$86.0 million with non-GAAP EBITDA between $12.3 million and $13.3 million. The company reported $13.9 million in cash flow from operations for the first half of 2024 and ended Q2 with $256.0 million in cash equivalents. Total headcount was 3,961, indicating an increase from the previous year.
Grid Dynamics (Nasdaq: GDYN) ha riportato un record di entrate nel Q2 2024 di 83,0 milioni di dollari, superando le loro previsioni che oscillavano tra 80,0 e 82,0 milioni di dollari. I settori Retail e TMT hanno contribuito maggiormente, con il 32,2% e il 28,0% delle entrate, rispettivamente. Il verticale della Finanza ha registrato una significativa crescita, aumentando del 22,7% rispetto al trimestre precedente e dell'86,2% su base annua. Nonostante il risultato delle entrate, l'azienda ha riportato una perdita netta GAAP di 0,8 milioni di dollari o $(0,01) per azione. L'utile netto non-GAAP è stato di 6,0 milioni di dollari o $0,08 per azione completamente diluita. Il profitto lordo GAAP è stato di 29,6 milioni di dollari (35,6% delle entrate), mentre il profitto lordo non-GAAP è stato di 30,1 milioni di dollari (36,2% delle entrate).
Le entrate di Grid Dynamics per il Q3 2024 sono previste tra 84,0 e 86,0 milioni di dollari, con un EBITDA non-GAAP compreso tra 12,3 milioni e 13,3 milioni di dollari. L'azienda ha riportato 13,9 milioni di dollari di flusso di cassa dalle operazioni per la prima metà del 2024 e ha chiuso il Q2 con 256,0 milioni di dollari in equivalenti di cassa. Il numero totale di dipendenti era di 3.961, indicando un aumento rispetto all'anno precedente.
Grid Dynamics (Nasdaq: GDYN) reportó ingresos récord de Q2 2024 de 83,0 millones de dólares, superando su rango de pronóstico de 80,0 a 82,0 millones de dólares. Los sectores de Retail y TMT contribuyeron mayormente, con el 32,2% y el 28,0% de los ingresos, respectivamente. El vertical de Finanzas experimentó un crecimiento significativo, aumentando un 22,7% secuencialmente y un 86,2% interanual. A pesar de este logro en ingresos, la empresa reportó una pérdida neta GAAP de 0,8 millones de dólares o $(0,01) por acción. El ingreso neto no-GAAP fue de 6,0 millones de dólares o $0,08 por acción diluida. El beneficio bruto GAAP fue de 29,6 millones de dólares (35,6% de los ingresos) mientras que el beneficio bruto no-GAAP fue de 30,1 millones de dólares (36,2% de los ingresos).
Se proyecta que los ingresos de Grid Dynamics para el Q3 2024 sean de 84,0 a 86,0 millones de dólares, con un EBITDA no-GAAP entre 12,3 millones y 13,3 millones de dólares. La empresa reportó 13,9 millones de dólares en flujo de efectivo de operaciones para la primera mitad de 2024 y cerró el Q2 con 256,0 millones de dólares en equivalentes de efectivo. El total de empleados fue de 3,961, lo que indica un aumento con respecto al año anterior.
Grid Dynamics (Nasdaq: GDYN)는 2024년 2분기에 8,300만 달러의 기록적인 수익을 보고했으며, 이는 8,000만에서 8,200만 달러의 전망 범위를 초과한 것입니다. 소매 및 TMT 부문이 가장 큰 기여를 하여 각각 32.2% 및 28.0%의 수익을 차지했습니다. 금융 분야는 22.7%의 전분기 대비 증가 및 86.2%의 전년 대비 성장을 경험했습니다. 수익 달성에도 불구하고 회사는 GAAP 기준 순손실 80만 달러 또는 주당 $(0.01)을 보고했습니다. 비-GAAP 기준 순이익은 600만 달러 또는 주당 0.08달러였습니다. GAAP 기준 매출총이익은 2960만 달러 (수익의 35.6%)였으며, 비-GAAP 기준 매출총이익은 3010만 달러 (수익의 36.2%)였습니다.
Grid Dynamics의 2024년 3분기 수익은 8,400만에서 8,600만 달러로 예상되며, 비-GAAP EBITDA는 1230만 달러에서 1330만 달러 사이일 것으로 보입니다. 회사는 2024년 상반기 운영에서 1,390만 달러의 현금 흐름을 보고했으며, 2분기 말에는 2억5600만 달러의 현금 등가물로 종료했습니다. 총 직원 수는 3961명으로, 전년 대비 증가했습니다.
Grid Dynamics (Nasdaq: GDYN) a annoncé des revenus records de Q2 2024 s'élevant à 83,0 millions de dollars, dépassant ainsi leurs prévisions, qui étaient comprises entre 80,0 et 82,0 millions de dollars. Les secteurs Retail et TMT ont contribué le plus, représentant respectivement 32,2% et 28,0% des revenus. Le secteur Finance a connu une croissance significative, augmentant de 22,7% par rapport au trimestre précédent et de 86,2% par rapport à l'année précédente. Malgré ce résultat en matière de revenus, l'entreprise a déclaré une perte nette GAAP de 0,8 million de dollars, soit $(0,01) par action. Le revenu net non GAAP était de 6,0 millions de dollars ou 0,08 dollar par action diluée. Le profit brut GAAP était de 29,6 millions de dollars (35,6% des revenus), tandis que le profit brut non GAAP était de 30,1 millions de dollars (36,2% des revenus).
Les revenues de Grid Dynamics pour le Q3 2024 sont prévues entre 84,0 et 86,0 millions de dollars, avec un EBITDA non GAAP compris entre 12,3 millions et 13,3 millions de dollars. L'entreprise a rapporté 13,9 millions de dollars de flux de trésorerie provenant des opérations pour la première moitié de 2024 et a terminé le Q2 avec 256,0 millions de dollars en équivalents de liquidités. Le nombre total d'employés était de 3 961, ce qui indique une augmentation par rapport à l'année précédente.
Grid Dynamics (Nasdaq: GDYN) hat im 2. Quartal 2024 einen Rekordumsatz von 83,0 Millionen US-Dollar erzielt, was über ihrer Prognose von 80,0 bis 82,0 Millionen US-Dollar liegt. Die Sektoren Einzelhandel und TMT trugen am meisten bei, mit 32,2% bzw. 28,0% des Umsatzes. Der Finanzsektor verzeichnete ein signifikantes Wachstum, das im Vergleich zum Vorquartal um 22,7% und im Jahresvergleich um 86,2% zunahm. Trotz des Umsatzes berichtete das Unternehmen einen GAAP-Nettoverlust von 0,8 Millionen US-Dollar oder $(0,01) pro Aktie. Das nicht-GAAP-Nettoeinkommen betrug 6,0 Millionen US-Dollar oder 0,08 US-Dollar pro verwässerte Aktie. Der GAAP-Bruttogewinn betrug 29,6 Millionen US-Dollar (35,6% des Umsatzes), während der nicht-GAAP-Bruttogewinn 30,1 Millionen US-Dollar (36,2% des Umsatzes) betrug.
Die Umsätze von Grid Dynamics für das 3. Quartal 2024 werden auf 84,0 bis 86,0 Millionen US-Dollar geschätzt, mit einem nicht-GAAP EBITDA zwischen 12,3 Millionen und 13,3 Millionen US-Dollar. Das Unternehmen berichtete über 13,9 Millionen US-Dollar an Cashflow aus operativen Tätigkeiten für die erste Hälfte von 2024 und beendete das 2. Quartal mit 256,0 Millionen US-Dollar in liquiden Mitteln. Die Gesamtzahl der Mitarbeiter betrug 3.961, was einen Anstieg im Vergleich zum Vorjahr darstellt.
- Record revenue of $83.0 million, exceeding the outlook range.
- Significant growth in the Finance vertical (up 22.7% sequentially and 86.2% YoY).
- Non-GAAP net income of $6.0 million or $0.08 per diluted share.
- Cash flow from operations was $13.9 million for the first half of 2024.
- Highest billable engineers in the company’s history.
- GAAP net loss of $0.8 million or $(0.01) per share.
- Decline in GAAP gross profit margin from 36.6% to 35.6%.
- Non-GAAP gross profit margin decreased from 37.3% to 36.2%.
- Non-GAAP EBITDA decreased from $12.0 million to $11.7 million YoY.
Grid Dynamics' Q2 2024 results showcase a robust performance in a challenging economic environment. The company reported
The company's diversification strategy is paying off, with strong performances across multiple verticals. The Finance vertical, in particular, showed remarkable growth, up
However, there are some concerns. The GAAP gross profit margin decreased from
The shift from a GAAP net income of
Looking ahead, the company's Q3 2024 guidance of
Grid Dynamics' expansion into AI solutions is a strategic move that positions the company well in the rapidly evolving tech landscape. With approximately 30 AI-focused solutions and service offerings, they're clearly investing heavily in this transformative technology.
The company's approach to AI is particularly noteworthy. They're not just focusing on cost-cutting applications, which is a common initial approach for many businesses. Instead, they're targeting both revenue enhancement and cost reduction. This dual focus could provide a competitive edge, especially when targeting Fortune 500 clients who are looking for comprehensive AI solutions.
On the revenue side, Grid Dynamics is leveraging AI for innovative customer experiences, enhanced marketing and improved pricing and product decisions. These applications have the potential to directly impact top-line growth for their clients. On the cost side, their focus on efficiency improvements and better regulatory compliance addresses critical pain points for large enterprises.
However, it's important to note that the AI field is becoming increasingly crowded. While Grid Dynamics has a strong foundation in digital transformation, they'll need to continually innovate to stay ahead. The fact that they've developed such a broad range of AI offerings suggests they're committed to this space, which bodes well for their future competitiveness.
The company's ability to translate these AI capabilities into tangible financial results will be crucial. While the revenue growth is promising, investors should watch closely how these new AI offerings impact profit margins and client acquisition in the coming quarters.
Record revenue of
We are very pleased to report the second quarter 2024 revenues of
“I am happy to report that our second quarter revenue was the highest in the company’s history, and all of it was organic in nature. We also exited the second quarter with the highest billable engineers in the company’s history. These strong results were due to strength from both existing and new customers and are commendable given the recent backdrop of the economic cycle. It is a clear testament that our efforts to stay the course and maintain laser focus on delivering value to our clients is paying off. Our stated goals around the company’s growth, profitability, and becoming a billion-revenue company remain unchanged. In many ways, our second quarter revenue growth of
“We’ve expanded our AI capabilities considerably, and now have approximately 30 solutions and service offerings targeting Fortune 500 companies across various industries. These solutions focus on enhancing revenue and reducing costs for enterprises. On the revenue side, our solutions focus on innovative customer experiences and enhanced marketing, pricing and product decisions and on the cost side the focus is centered on efficiency improvements and better regulatory compliance. Our broad offerings position us well to positively impact the business results of our customers. I am excited about all the opportunities in the second half 2024, and I look forward to sharing all the exciting things in the next earnings call,” said Leonard Livschitz, CEO.
Second Quarter of 2024 Financial Highlights
-
Total revenues were
$83.0 million 4.0% on a sequential basis and7.4% on a year-over-year basis. -
GAAP gross profit was
$29.6 million 35.6% of revenues in the second quarter of 2024, compared to GAAP gross profit of$28.3 million 36.6% of revenues in the second quarter of 2023. Non-GAAP gross profit was$30.1 million 36.2% of revenues in the second quarter of 2024, compared to Non-GAAP gross profit of$28.8 million 37.3% of revenues in the second quarter of 2023. -
GAAP net loss attributable to common stockholders was
$0.8 million $(0.01) $2.6 million $0.03 $6.0 million $0.08 $7.0 million $0.09 -
Non-GAAP EBITDA (earnings before interest, taxes, depreciation, amortization, other income and expenses, fair value adjustments, stock-based compensation, transaction and transformation-related costs, restructuring costs as well as geographic reorganization expenses), a non-GAAP metric, was
$11.7 million $12.0 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
$13.9 million $22.6 million -
Cash and cash equivalents totaled
$256.0 million $257.2 million - Total headcount was 3,961 as of June 30, 2024, compared with 3,862 employees as of June 30, 2023.
Financial Outlook
-
The Company expects revenue in the third quarter of 2024 to be in the range of
$84.0 million $86.0 million -
Non-GAAP EBITDA in the third quarter of 2024 is expected to be between
$12.3 million $13.3 million - For the third quarter of 2024, we expect our basic share count to be in the 77.0 - 78.0 million range and diluted share count to be in the 79.0 - 80.0 million range.
Grid Dynamics is not able, at this time, to provide GAAP targets for net income/(loss) for the third quarter of 2024 because of the difficulty of estimating certain items excluded from Non-GAAP EBITDA that cannot be reasonably predicted, such as interest income, taxes, other income/(expenses), fair-value adjustments, geographic reorganization expenses, restructuring expenses, transaction-related costs 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 video conference call at 4:30 p.m. ET on Thursday, August 1, 2024 to discuss its second quarter financial results. Investors and other interested parties can access the call in the following ways: A webcast of the video conference call can be accessed 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/ with the passcode $Q2@2024.
About Grid Dynamics
Grid Dynamics (Nasdaq: GDYN) is a digital-native technology services provider that accelerates growth and bolsters competitive advantage for Fortune 1000 companies. Grid Dynamics provides a range of digital transformation consulting and implementation services that includes artificial intelligence, big data, analytics, search, cloud and DevOps. Grid Dynamics achieves high speed-to-market, quality, and efficiency by using technology accelerators, an agile delivery culture, and its pool of global engineering talent. Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the globe, including the
To learn more about Grid Dynamics, please visit www.griddynamics.com. Follow us on LinkedIn.
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 and Section 21E of the Securities Exchange Act of 1934 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. 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 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 under the “Risk Factors” section of the Company’s quarterly report on Form 10-Q filed August 1, 2024 and in other periodic filings Grid Dynamics makes with the SEC.
Schedule 1: GRID DYNAMICS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) AND COMPREHENSIVE INCOME/(LOSS) Unaudited (In thousands, except per share data) |
||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
83,037 |
|
|
$ |
77,342 |
|
$ |
162,854 |
|
|
$ |
157,422 |
|
Cost of revenues |
|
53,474 |
|
|
|
49,037 |
|
|
105,626 |
|
|
|
100,542 |
|
Gross profit |
|
29,563 |
|
|
|
28,305 |
|
|
57,228 |
|
|
|
56,880 |
|
|
|
|
|
|
|
|
|
|||||||
Operating expenses |
|
|
|
|
|
|
|
|||||||
Engineering, research, and development |
|
4,127 |
|
|
|
3,273 |
|
|
8,499 |
|
|
|
7,476 |
|
Sales and marketing |
|
7,286 |
|
|
|
5,963 |
|
|
14,578 |
|
|
|
11,597 |
|
General and administrative |
|
18,110 |
|
|
|
17,735 |
|
|
39,653 |
|
|
|
42,465 |
|
Total operating expenses |
|
29,523 |
|
|
|
26,971 |
|
|
62,730 |
|
|
|
61,538 |
|
|
|
|
|
|
|
|
|
|||||||
Income/(loss) from operations |
|
40 |
|
|
|
1,334 |
|
|
(5,502 |
) |
|
|
(4,658 |
) |
Other income/(expense), net |
|
2,665 |
|
|
|
3,008 |
|
|
5,190 |
|
|
|
4,690 |
|
Income/(loss) before income taxes |
|
2,705 |
|
|
|
4,342 |
|
|
(312 |
) |
|
|
32 |
|
Provision for income taxes |
|
3,522 |
|
|
|
1,715 |
|
|
4,453 |
|
|
|
5,375 |
|
Net income/(loss) |
$ |
(817 |
) |
|
$ |
2,627 |
|
$ |
(4,765 |
) |
|
$ |
(5,343 |
) |
|
|
|
|
|
|
|
|
|||||||
Foreign currency translation adjustments |
|
(127 |
) |
|
|
1,403 |
|
|
(305 |
) |
|
|
1,898 |
|
Comprehensive income/(loss) |
$ |
(944 |
) |
|
$ |
4,030 |
|
$ |
(5,070 |
) |
|
$ |
(3,445 |
) |
|
|
|
|
|
|
|
|
|||||||
Income/(loss) per share |
|
|
|
|
|
|
|
|||||||
Basic |
$ |
(0.01 |
) |
|
$ |
0.03 |
|
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
Diluted |
$ |
(0.01 |
) |
|
$ |
0.03 |
|
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|||||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
|||||||
Basic |
|
76,604 |
|
|
|
75,145 |
|
|
76,377 |
|
|
|
74,804 |
|
Diluted |
|
76,604 |
|
|
|
76,850 |
|
|
76,377 |
|
|
|
74,804 |
|
Schedule 2: GRID DYNAMICS HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (In thousands, except share and per share data) |
|||||||
|
As of |
||||||
|
June 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
256,042 |
|
|
$ |
257,227 |
|
Accounts receivable, net of allowance of |
|
50,663 |
|
|
|
49,824 |
|
Unbilled receivables |
|
5,075 |
|
|
|
3,735 |
|
Prepaid income taxes |
|
8,264 |
|
|
|
3,998 |
|
Prepaid expenses and other current assets |
|
10,368 |
|
|
|
9,196 |
|
Total current assets |
|
330,412 |
|
|
|
323,980 |
|
|
|
|
|
||||
Property and equipment, net |
|
13,093 |
|
|
|
11,358 |
|
Operating lease right-of-use assets, net |
|
10,618 |
|
|
|
10,446 |
|
Intangible assets, net |
|
24,517 |
|
|
|
26,546 |
|
Goodwill |
|
53,868 |
|
|
|
53,868 |
|
Deferred tax assets |
|
7,489 |
|
|
|
6,418 |
|
Other noncurrent assets |
|
3,625 |
|
|
|
2,549 |
|
Total assets |
$ |
443,622 |
|
|
$ |
435,165 |
|
|
|
|
|
||||
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
2,786 |
|
|
$ |
3,621 |
|
Accrued compensation and benefits |
|
21,118 |
|
|
|
19,263 |
|
Accrued income taxes |
|
12,076 |
|
|
|
8,828 |
|
Operating lease liabilities, current |
|
4,443 |
|
|
|
4,235 |
|
Accrued expenses and other current liabilities |
|
5,844 |
|
|
|
6,276 |
|
Total current liabilities |
|
46,267 |
|
|
|
42,223 |
|
|
|
|
|
||||
Deferred tax liabilities |
|
3,166 |
|
|
|
3,274 |
|
Operating lease liabilities, noncurrent |
|
5,740 |
|
|
|
6,761 |
|
Total liabilities |
$ |
55,173 |
|
|
$ |
52,258 |
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock, |
$ |
8 |
|
|
$ |
8 |
|
Additional paid-in capital |
|
408,123 |
|
|
|
397,511 |
|
Accumulated deficit |
|
(20,651 |
) |
|
|
(15,886 |
) |
Accumulated other comprehensive income/(loss) |
|
969 |
|
|
|
1,274 |
|
Total stockholders’ equity |
|
388,449 |
|
|
|
382,907 |
|
Total liabilities and stockholders’ equity |
$ |
443,622 |
|
|
$ |
435,165 |
|
Schedule 3: GRID DYNAMICS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited (In thousands) |
|||||||
|
Six Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(4,765 |
) |
|
$ |
(5,343 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
6,155 |
|
|
|
3,777 |
|
Operating lease right-of-use assets amortization expense |
|
2,113 |
|
|
|
1,419 |
|
Bad debt expense |
|
641 |
|
|
|
113 |
|
Deferred income taxes |
|
(1,179 |
) |
|
|
(1,203 |
) |
Change in fair value of contingent consideration |
|
— |
|
|
|
(2,554 |
) |
Stock based compensation |
|
18,830 |
|
|
|
20,410 |
|
Other (income)/expenses, net |
|
(413 |
) |
|
|
45 |
|
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(1,480 |
) |
|
|
1,418 |
|
Unbilled receivables |
|
(1,340 |
) |
|
|
(1,826 |
) |
Prepaid income taxes |
|
(4,266 |
) |
|
|
(4,791 |
) |
Prepaid expenses and other current assets |
|
(1,108 |
) |
|
|
(755 |
) |
Accounts payable |
|
(844 |
) |
|
|
1,187 |
|
Accrued compensation and benefits |
|
1,855 |
|
|
|
6,829 |
|
Operating lease liabilities |
|
(3,098 |
) |
|
|
(1,279 |
) |
Accrued income taxes |
|
3,248 |
|
|
|
3,116 |
|
Accrued expenses and other current liabilities |
|
(432 |
) |
|
|
2,016 |
|
Net cash provided by operating activities |
|
13,917 |
|
|
|
22,579 |
|
Cash flows from investing activities |
|
|
|
||||
Purchase of property and equipment |
|
(5,848 |
) |
|
|
(3,753 |
) |
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(17,830 |
) |
Other investing activities, net |
|
(995 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(6,843 |
) |
|
|
(21,583 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercises of stock options, net of shares withheld for taxes |
|
623 |
|
|
|
(56 |
) |
Payments of tax obligations resulted from net share settlement of vested stock awards |
|
(8,533 |
) |
|
|
(13,391 |
) |
Net cash used in financing activities |
|
(7,910 |
) |
|
|
(13,447 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(349 |
) |
|
|
1,898 |
|
Net decrease in cash and cash equivalents |
|
(1,185 |
) |
|
|
(10,553 |
) |
Cash and cash equivalents, beginning of period |
|
257,227 |
|
|
|
256,729 |
|
Cash and cash equivalents, end of period |
$ |
256,042 |
|
|
$ |
246,176 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
||||
Cash paid for income taxes |
$ |
6,239 |
|
|
$ |
8,142 |
|
Supplemental disclosure of non-cash activities |
|
|
|
||||
Acquisition fair value of contingent consideration issued for acquisition of business |
$ |
— |
|
|
$ |
932 |
|
Schedule 4: GRID DYNAMICS HOLDINGS, INC. RECONCILIATION OF NON-GAAP INFORMATION Unaudited (In thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
83,037 |
|
|
$ |
77,342 |
|
|
$ |
162,854 |
|
|
$ |
157,422 |
|
Cost of revenue |
|
53,474 |
|
|
|
49,037 |
|
|
|
105,626 |
|
|
|
100,542 |
|
GAAP gross profit |
|
29,563 |
|
|
|
28,305 |
|
|
|
57,228 |
|
|
|
56,880 |
|
Stock-based compensation |
|
510 |
|
|
|
520 |
|
|
|
992 |
|
|
|
980 |
|
Non-GAAP gross profit |
$ |
30,073 |
|
|
$ |
28,825 |
|
|
$ |
58,220 |
|
|
$ |
57,860 |
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net income/(loss) |
$ |
(817 |
) |
|
$ |
2,627 |
|
|
$ |
(4,765 |
) |
|
$ |
(5,343 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
3,241 |
|
|
|
2,132 |
|
|
|
6,155 |
|
|
|
3,777 |
|
Provision for income taxes |
|
3,522 |
|
|
|
1,715 |
|
|
|
4,453 |
|
|
|
5,375 |
|
Stock-based compensation |
|
7,491 |
|
|
|
7,153 |
|
|
|
18,830 |
|
|
|
20,410 |
|
Transaction and transformation-related costs(1) |
|
213 |
|
|
|
295 |
|
|
|
667 |
|
|
|
1,083 |
|
Geographic reorganization(2) |
|
445 |
|
|
|
531 |
|
|
|
946 |
|
|
|
1,222 |
|
Restructuring costs(3) |
|
304 |
|
|
|
540 |
|
|
|
930 |
|
|
|
983 |
|
Other (income)/expense, net(4) |
|
(2,665 |
) |
|
|
(3,008 |
) |
|
|
(5,190 |
) |
|
|
(4,690 |
) |
Non-GAAP EBITDA |
$ |
11,734 |
|
|
$ |
11,985 |
|
|
$ |
22,026 |
|
|
$ |
22,817 |
|
__________________________ |
|
(1) |
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. |
(2) |
Geographic reorganization includes expenses connected with military actions of |
(3) |
We implemented a restructuring plan during the first quarter of 2023. Our restructuring costs comprises of severance charges and respective taxes, and are included in General and administrative expenses in the Company’s unaudited condensed consolidated statement of loss and comprehensive loss. |
(4) |
Other (income)/expense, net consists primarily of gains and losses on foreign currency transactions, fair value adjustments, and other miscellaneous non-operating expenses, potential loss contingencies as well as other income consists primarily of interest on cash held at banks and returns on investments in money-market funds. |
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net income/(loss) |
$ |
(817 |
) |
|
$ |
2,627 |
|
|
$ |
(4,765 |
) |
|
$ |
(5,343 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
7,491 |
|
|
|
7,153 |
|
|
|
18,830 |
|
|
|
20,410 |
|
Transaction and transformation-related costs (1) |
|
213 |
|
|
|
295 |
|
|
|
667 |
|
|
|
1,083 |
|
Geographic reorganization (2) |
|
445 |
|
|
|
531 |
|
|
|
946 |
|
|
|
1,222 |
|
Restructuring costs(3) |
|
304 |
|
|
|
540 |
|
|
|
930 |
|
|
|
983 |
|
Other (income)/expense, net(4) |
|
(2,665 |
) |
|
|
(3,008 |
) |
|
|
(5,190 |
) |
|
|
(4,690 |
) |
Tax impact of non-GAAP adjustments(5) |
|
1,059 |
|
|
|
(1,142 |
) |
|
|
(150 |
) |
|
|
(146 |
) |
Non-GAAP net income |
$ |
6,030 |
|
|
$ |
6,996 |
|
|
$ |
11,268 |
|
|
$ |
13,519 |
|
Number of shares used in the GAAP diluted EPS |
|
76,604 |
|
|
|
76,850 |
|
|
|
76,377 |
|
|
|
74,804 |
|
GAAP diluted EPS |
$ |
(0.01 |
) |
|
$ |
0.03 |
|
|
$ |
(0.06 |
) |
|
$ |
(0.07 |
) |
Number of shares used in the non-GAAP diluted EPS |
|
77,899 |
|
|
|
76,850 |
|
|
|
78,134 |
|
|
|
77,046 |
|
Non-GAAP diluted EPS |
$ |
0.08 |
|
|
$ |
0.09 |
|
|
$ |
0.14 |
|
|
$ |
0.18 |
|
__________________________ |
|
(1) |
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. |
(2) |
Geographic reorganization includes expenses connected with military actions of |
(3) |
We implemented a restructuring plan during the first quarter of 2023. Our restructuring costs comprises of severance charges and respective taxes, and are included in General and administrative expenses in the Company’s unaudited condensed consolidated statement of loss and comprehensive loss. |
(4) |
Other (income)/expense, net consists primarily of gains and losses on foreign currency transactions, fair value adjustments, and other miscellaneous non-operating expenses, potential loss contingencies as well as other income consists primarily of interest on cash held at banks and returns on investments in money-market funds. |
(5) |
Reflects the estimated tax impact of the non-GAAP adjustments presented in the table. |
| Schedule 5:
GRID DYNAMICS HOLDINGS, INC. REVENUE BY VERTICALS Unaudited (In thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||
|
|
(in thousands, except percentages of revenues) |
||||||||||||||||||||||
Retail |
|
$ |
26,779 |
|
32.2 |
% |
|
$ |
26,032 |
|
33.7 |
% |
|
$ |
51,408 |
|
31.6 |
% |
|
$ |
51,428 |
|
32.7 |
% |
Technology, Media and Telecom |
|
|
23,228 |
|
28.0 |
% |
|
|
24,096 |
|
31.2 |
% |
|
|
47,261 |
|
29.0 |
% |
|
|
50,907 |
|
32.3 |
% |
Finance |
|
|
12,566 |
|
15.1 |
% |
|
|
6,748 |
|
8.7 |
% |
|
|
22,809 |
|
14.0 |
% |
|
|
13,263 |
|
8.4 |
% |
CPG/Manufacturing |
|
|
9,843 |
|
11.9 |
% |
|
|
10,872 |
|
14.1 |
% |
|
|
19,402 |
|
11.9 |
% |
|
|
23,518 |
|
14.9 |
% |
Healthcare and Pharma |
|
|
3,158 |
|
3.8 |
% |
|
|
3,706 |
|
4.8 |
% |
|
|
6,167 |
|
3.8 |
% |
|
|
6,858 |
|
4.4 |
% |
Other |
|
|
7,463 |
|
9.0 |
% |
|
|
5,888 |
|
7.5 |
% |
|
|
15,807 |
|
9.7 |
% |
|
|
11,448 |
|
7.3 |
% |
Total |
|
$ |
83,037 |
|
100.0 |
% |
|
$ |
77,342 |
|
100.0 |
% |
|
$ |
162,854 |
|
100.0 |
% |
|
$ |
157,422 |
|
100.0 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801994831/en/
Grid Dynamics Investor Relations:
investorrelations@griddynamics.com
Source: Grid Dynamics Holdings, Inc.
FAQ
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