Grid Dynamics Reports Third Quarter 2024 Financial Results
Grid Dynamics (GDYN) reported record Q3 2024 revenues of $87.4 million, exceeding their guidance of $84.0-86.0 million. The company achieved GAAP net income of $4.3 million ($0.05 per share). Retail and TMT were the largest verticals at 34.1% and 27.7% of revenues respectively, while Finance vertical grew 94.0% year-over-year. The company's AI initiatives pipeline grew 50% from last quarter to over 100 opportunities. For Q4 2024, Grid Dynamics expects revenues between $95.0-97.0 million and Non-GAAP EBITDA of $13.5-15.5 million.
Grid Dynamics (GDYN) ha riportato entrate record per il terzo trimestre del 2024 di 87,4 milioni di dollari, superando le stime di 84,0-86,0 milioni di dollari. L'azienda ha raggiunto un utile netto GAAP di 4,3 milioni di dollari (0,05 dollari per azione). I settori Retail e TMT sono stati i più significativi, rappresentando rispettivamente il 34,1% e il 27,7% dei ricavi, mentre il settore Finance è cresciuto del 94,0% rispetto all'anno precedente. Il portafoglio di iniziative AI dell'azienda è aumentato del 50% rispetto allo scorso trimestre, superando le 100 opportunità. Per il quarto trimestre del 2024, Grid Dynamics prevede ricavi tra 95,0-97,0 milioni di dollari e un EBITDA non GAAP compreso tra 13,5-15,5 milioni di dollari.
Grid Dynamics (GDYN) reportó ingresos récord de 87,4 millones de dólares en el tercer trimestre de 2024, superando su guía de 84,0-86,0 millones de dólares. La compañía logró un ingreso neto GAAP de 4,3 millones de dólares (0,05 dólares por acción). Los sectores Retail y TMT fueron los más grandes, representando el 34,1% y el 27,7% de los ingresos respectivamente, mientras que el sector Financiero creció un 94,0% interanualmente. La cartera de iniciativas de IA de la compañía creció un 50% respecto al trimestre anterior, superando las 100 oportunidades. Para el cuarto trimestre de 2024, Grid Dynamics espera ingresos entre 95,0-97,0 millones de dólares y un EBITDA no GAAP de 13,5-15,5 millones de dólares.
Grid Dynamics (GDYN)는 2024년 3분기에 8740만 달러의 기록적인 수익을 보고하여 8400-8600만 달러의 예측을 초과했습니다. 회사는 GAAP 순이익으로 430만 달러(주당 0.05달러)를 달성했습니다. Retail과 TMT는 각각 34.1%와 27.7%의 비율로 가장 큰 수익을 차지했으며, Finance 부문은 전년 대비 94.0% 성장했습니다. 회사의 AI 이니셔티브 파이프라인은 지난 분기 대비 50% 증가하여 100개 이상의 기회를 넘었습니다. 2024년 4분기 동안 Grid Dynamics는 9500-9700만 달러 사이의 수익과 1350-1550만 달러의 비 GAAP EBITDA를 예상하고 있습니다.
Grid Dynamics (GDYN) a annoncé des revenus record au troisième trimestre 2024 de 87,4 millions de dollars, dépassant ses prévisions de 84,0-86,0 millions de dollars. L'entreprise a réalisé un chiffre d'affaires net GAAP de 4,3 millions de dollars (0,05 dollar par action). Les secteurs de la vente au détail et des TMT étaient les plus importants, représentant respectivement 34,1 % et 27,7 % de revenus, tandis que le secteur financier a connu une croissance de 94,0 % d'une année sur l'autre. Le pipeline des initiatives d'IA de l'entreprise a augmenté de 50 % par rapport au trimestre dernier, dépassant les 100 opportunités. Pour le quatrième trimestre 2024, Grid Dynamics prévoit des revenus entre 95,0-97,0 millions de dollars et un EBITDA non GAAP de 13,5-15,5 millions de dollars.
Grid Dynamics (GDYN) berichtete von Rekordumsätzen im 3. Quartal 2024 in Höhe von 87,4 Millionen Dollar, was über der Prognose von 84,0-86,0 Millionen Dollar liegt. Das Unternehmen erzielte einen GAAP Nettogewinn von 4,3 Millionen Dollar (0,05 Dollar pro Aktie). Der Einzelhandel und TMT waren mit 34,1% bzw. 27,7% die größten Bereiche, während der Finanzbereich im Jahresvergleich um 94,0% wuchs. Die Pipeline der AI-Initiativen des Unternehmens wuchs im Vergleich zum letzten Quartal um 50% auf über 100 Möglichkeiten. Für das 4. Quartal 2024 erwartet Grid Dynamics Umsätze zwischen 95,0-97,0 Millionen Dollar und ein Non-GAAP EBITDA von 13,5-15,5 Millionen Dollar.
- Record quarterly revenue of $87.4 million, up 12.9% year-over-year
- Finance vertical grew 94.0% year-over-year
- GAAP net income increased to $4.3 million from $0.7 million in Q3 2023
- Non-GAAP EBITDA improved to $14.8 million from $10.7 million year-over-year
- Strong Q4 2024 guidance with revenue projected at $95.0-97.0 million
- Cash and cash equivalents decreased to $231.3 million from $257.2 million at year-end 2023
- Operating cash flow declined to $23.1 million from $33.5 million year-over-year for the nine months period
Insights
Grid Dynamics delivered strong Q3 2024 results with
The financial vertical's
The significant expansion in AI initiatives, with over 100 pipeline opportunities, marks a important transition from experimental to enterprise-scale AI implementations. The strategic acquisition of JUXT strengthens the company's fintech capabilities, while Mobile Computing enhances Latin American presence. The company's success in the TMT vertical, contributing
The focus on digital transformation and AI-driven solutions aligns with current enterprise priorities. The growth in partnership-influenced revenues suggests successful ecosystem development. The company's ability to attract both new and existing customers indicates strong technical differentiation in a competitive market.
Record Revenues of
We are very pleased to report third quarter 2024 revenues of
“The third quarter was another milestone in the Company’s history. We reported record revenues and profitability, scaled partnership influenced revenues, and set a new record with the highest number of billable engineers. Customers, both existing and new, are contributing to our strong results, which is a testament to our technology differentiation and delivery excellence. The strong demand we witnessed in the third quarter was built on steady improvements in the first half of the year.
I am thrilled to welcome JUXT and Mobile Computing to Grid Dynamics. Each company brings in a unique set of capabilities.
Our AI initiatives continue to gain significant traction across our customer base. Our pipeline of AI opportunities has grown to more than 100, representing a
We approach the end of 2024 with strong business momentum and confident of the foundations of the Company as we enter 2025,” said Leonard Livschitz, CEO.
Third Quarter of 2024 Financial Highlights
-
Total revenues were
$87.4 million 5.3% on a sequential basis and12.9% on a year-over-year basis.
-
GAAP gross profit was
$32.7 million 37.4% of revenues, in the third quarter of 2024, compared to$28.2 million 36.4% of revenues, in the third quarter of 2023. Non-GAAP gross profit was$33.3 million 38.0% of revenues, in the third quarter of 2024, compared to$28.7 million 37.0% of revenues, in the third quarter of 2023.
-
GAAP net income attributable to common stockholders was
$4.3 million $0.05 $0.7 million $0.01 $8.1 million $0.10 $5.9 million $0.08
-
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
$14.8 million $10.7 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
$23.1 million $33.5 million
-
Cash and cash equivalents totaled
$231.3 million $257.2 million
- Total headcount was 4,298 as of September 30, 2024, compared with 3,823 employees as of September 30, 2023.
Financial Outlook
-
The Company expects revenue in the fourth quarter of 2024 to be in the range of
$95.0 million $97.0 million
-
Non-GAAP EBITDA in the fourth quarter of 2024 is expected to be between
$13.5 million $15.5 million
- For the fourth 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 80.0 - 81.0 million range.
Grid Dynamics is not able, at this time, to provide GAAP targets for net income/(loss) for the fourth 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, October 31, 2024 to discuss its third 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 $Q3@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 October 31, 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
|
|
Nine Months Ended
|
|||||||||||
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
87,435 |
|
$ |
77,419 |
|
|
$ |
250,289 |
|
|
$ |
234,841 |
|
Cost of revenues |
|
54,706 |
|
|
49,267 |
|
|
|
160,332 |
|
|
|
149,809 |
|
Gross profit |
|
32,729 |
|
|
28,152 |
|
|
|
89,957 |
|
|
|
85,032 |
|
|
|
|
|
|
|
|
|
|||||||
Operating expenses |
|
|
|
|
|
|
|
|||||||
Engineering, research, and development |
|
4,446 |
|
|
3,402 |
|
|
|
12,945 |
|
|
|
10,878 |
|
Sales and marketing |
|
6,817 |
|
|
6,132 |
|
|
|
21,395 |
|
|
|
17,729 |
|
General and administrative |
|
19,330 |
|
|
18,475 |
|
|
|
58,983 |
|
|
|
60,940 |
|
Total operating expenses |
|
30,593 |
|
|
28,009 |
|
|
|
93,323 |
|
|
|
89,547 |
|
|
|
|
|
|
|
|
|
|||||||
Income/(loss) from operations |
|
2,136 |
|
|
143 |
|
|
|
(3,366 |
) |
|
|
(4,515 |
) |
Other income/(expense), net |
|
3,466 |
|
|
3,159 |
|
|
|
8,656 |
|
|
|
7,849 |
|
Income before income taxes |
|
5,602 |
|
|
3,302 |
|
|
|
5,290 |
|
|
|
3,334 |
|
Provision for income taxes |
|
1,320 |
|
|
2,626 |
|
|
|
5,773 |
|
|
|
8,001 |
|
Net income/(loss) |
$ |
4,282 |
|
$ |
676 |
|
|
$ |
(483 |
) |
|
$ |
(4,667 |
) |
|
|
|
|
|
|
|
|
|||||||
Foreign currency translation adjustments |
|
214 |
|
|
(561 |
) |
|
|
(91 |
) |
|
|
1,337 |
|
Comprehensive income/(loss) |
$ |
4,496 |
|
$ |
115 |
|
|
$ |
(574 |
) |
|
$ |
(3,330 |
) |
|
|
|
|
|
|
|
|
|||||||
Income/(loss) per share |
|
|
|
|
|
|
|
|||||||
Basic |
$ |
0.06 |
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.06 |
) |
Diluted |
$ |
0.05 |
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
|||||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
|||||||
Basic |
|
76,697 |
|
|
75,464 |
|
|
|
76,485 |
|
|
|
75,026 |
|
Diluted |
|
78,837 |
|
|
77,339 |
|
|
|
76,485 |
|
|
|
75,026 |
|
Schedule 2: GRID DYNAMICS HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Unaudited (In thousands, except share and per share data) |
|||||||
|
As of |
||||||
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
231,261 |
|
|
$ |
257,227 |
|
Accounts receivable, net of allowance of |
|
64,320 |
|
|
|
49,824 |
|
Unbilled receivables |
|
5,737 |
|
|
|
3,735 |
|
Prepaid income taxes |
|
10,292 |
|
|
|
3,998 |
|
Prepaid expenses and other current assets |
|
11,385 |
|
|
|
9,196 |
|
Total current assets |
|
322,995 |
|
|
|
323,980 |
|
|
|
|
|
||||
Property and equipment, net |
|
13,965 |
|
|
|
11,358 |
|
Operating lease right-of-use assets, net |
|
12,329 |
|
|
|
10,446 |
|
Intangible assets, net |
|
42,451 |
|
|
|
26,546 |
|
Goodwill |
|
73,875 |
|
|
|
53,868 |
|
Deferred tax assets |
|
7,515 |
|
|
|
6,418 |
|
Other noncurrent assets |
|
4,122 |
|
|
|
2,549 |
|
Total assets |
$ |
477,252 |
|
|
$ |
435,165 |
|
|
|
|
|
||||
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
3,717 |
|
|
$ |
3,621 |
|
Accrued compensation and benefits |
|
22,986 |
|
|
|
19,263 |
|
Accrued income taxes |
|
13,191 |
|
|
|
8,828 |
|
Operating lease liabilities, current |
|
5,179 |
|
|
|
4,235 |
|
Accrued expenses and other current liabilities |
|
9,161 |
|
|
|
6,276 |
|
Total current liabilities |
|
54,234 |
|
|
|
42,223 |
|
|
|
|
|
||||
Deferred tax liabilities |
|
7,621 |
|
|
|
3,274 |
|
Operating lease liabilities, noncurrent |
|
7,649 |
|
|
|
6,761 |
|
Contingent consideration payable, noncurrent |
|
7,501 |
|
|
|
— |
|
Total liabilities |
$ |
77,005 |
|
|
$ |
52,258 |
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock, |
$ |
8 |
|
|
$ |
8 |
|
Additional paid-in capital |
|
415,425 |
|
|
|
397,511 |
|
Accumulated deficit |
|
(16,369 |
) |
|
|
(15,886 |
) |
Accumulated other comprehensive income |
|
1,183 |
|
|
|
1,274 |
|
Total stockholders’ equity |
|
400,247 |
|
|
|
382,907 |
|
Total liabilities and stockholders’ equity |
$ |
477,252 |
|
|
$ |
435,165 |
|
Schedule 3: GRID DYNAMICS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited (In thousands) |
|||||||
|
|||||||
|
Nine Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net loss |
$ |
(483 |
) |
|
$ |
(4,667 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
9,579 |
|
|
|
6,255 |
|
Operating lease right-of-use assets amortization expense |
|
3,301 |
|
|
|
2,295 |
|
Bad debt expense |
|
1,077 |
|
|
|
674 |
|
Deferred income taxes |
|
(1,516 |
) |
|
|
(2,451 |
) |
Change in fair value of contingent consideration |
|
— |
|
|
|
(4,220 |
) |
Stock based compensation |
|
25,969 |
|
|
|
27,677 |
|
Other (income)/expenses, net |
|
(890 |
) |
|
|
98 |
|
Changes in assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(8,649 |
) |
|
|
3,085 |
|
Unbilled receivables |
|
(1,027 |
) |
|
|
(1,509 |
) |
Prepaid income taxes |
|
(5,866 |
) |
|
|
(5,295 |
) |
Prepaid expenses and other current assets |
|
(2,894 |
) |
|
|
28 |
|
Accounts payable |
|
(740 |
) |
|
|
(471 |
) |
Accrued compensation and benefits |
|
3,293 |
|
|
|
6,554 |
|
Operating lease liabilities |
|
(3,352 |
) |
|
|
(2,119 |
) |
Accrued income taxes |
|
4,363 |
|
|
|
5,638 |
|
Accrued expenses and other current liabilities |
|
965 |
|
|
|
1,965 |
|
Net cash provided by operating activities |
|
23,130 |
|
|
|
33,537 |
|
Cash flows from investing activities |
|
|
|
||||
Purchase of property and equipment |
|
(9,126 |
) |
|
|
(5,593 |
) |
Acquisition of business, net of cash acquired |
|
(32,144 |
) |
|
|
(17,830 |
) |
Other investing activities, net |
|
(44 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(41,314 |
) |
|
|
(23,423 |
) |
Cash flows from financing activities |
|
|
|
||||
Proceeds from exercises of stock options, net of shares withheld for taxes |
|
867 |
|
|
|
491 |
|
Payments of tax obligations resulted from net share settlement of vested stock awards |
|
(8,635 |
) |
|
|
(14,958 |
) |
Net cash used in financing activities |
|
(7,768 |
) |
|
|
(14,467 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
(14 |
) |
|
|
1,337 |
|
Net decrease in cash and cash equivalents |
|
(25,966 |
) |
|
|
(3,016 |
) |
Cash and cash equivalents, beginning of period |
|
257,227 |
|
|
|
256,729 |
|
Cash and cash equivalents, end of period |
$ |
231,261 |
|
|
$ |
253,713 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
||||
Cash paid for income taxes |
$ |
8,993 |
|
|
$ |
9,936 |
|
Supplemental disclosure of non-cash activities |
|
|
|
||||
Acquisition fair value of contingent consideration issued for acquisition of business |
$ |
7,480 |
|
|
$ |
932 |
|
Schedule 4: GRID DYNAMICS HOLDINGS, INC. RECONCILIATION OF NON-GAAP INFORMATION Unaudited (In thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
|
Nine Months Ended
|
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
87,435 |
|
$ |
77,419 |
|
$ |
250,289 |
|
$ |
234,841 |
||||
Cost of revenues |
|
54,706 |
|
|
49,267 |
|
|
160,332 |
|
|
149,809 |
||||
GAAP gross profit |
|
32,729 |
|
|
28,152 |
|
|
89,957 |
|
|
85,032 |
||||
Stock-based compensation |
|
525 |
|
|
502 |
|
|
1,517 |
|
|
1,482 |
||||
Non-GAAP gross profit |
$ |
33,254 |
|
$ |
28,654 |
|
$ |
91,474 |
|
$ |
86,514 |
||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net income/(loss) |
$ |
4,282 |
|
|
$ |
676 |
|
|
$ |
(483 |
) |
|
$ |
(4,667 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
3,424 |
|
|
|
2,478 |
|
|
|
9,579 |
|
|
|
6,255 |
|
Provision for income taxes |
|
1,320 |
|
|
|
2,626 |
|
|
|
5,773 |
|
|
|
8,001 |
|
Stock-based compensation |
|
7,139 |
|
|
|
7,267 |
|
|
|
25,969 |
|
|
|
27,677 |
|
Transaction and transformation-related costs(1) |
|
1,571 |
|
|
|
436 |
|
|
|
2,238 |
|
|
|
1,519 |
|
Geographic reorganization(2) |
|
316 |
|
|
|
306 |
|
|
|
1,262 |
|
|
|
1,528 |
|
Restructuring costs(3) |
|
227 |
|
|
|
103 |
|
|
|
1,157 |
|
|
|
1,086 |
|
Other (income)/expense, net(4) |
|
(3,466 |
) |
|
|
(3,159 |
) |
|
|
(8,656 |
) |
|
|
(7,849 |
) |
Non-GAAP EBITDA |
$ |
14,813 |
|
|
$ |
10,733 |
|
|
$ |
36,839 |
|
|
$ |
33,550 |
|
__________________________ |
|
(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 are comprised of severance charges and respective taxes, and are included in General and administrative expenses in the Company’s unaudited condensed consolidated statement of income (loss) and comprehensive income (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 consisting primarily of interest on cash held at banks and returns on investments in money-market funds. |
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net income/(loss) |
$ |
4,282 |
|
|
$ |
676 |
|
|
$ |
(483 |
) |
|
$ |
(4,667 |
) |
Adjusted for: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
7,139 |
|
|
|
7,267 |
|
|
|
25,969 |
|
|
|
27,677 |
|
Transaction and transformation-related costs (1) |
|
1,571 |
|
|
|
436 |
|
|
|
2,238 |
|
|
|
1,519 |
|
Geographic reorganization (2) |
|
316 |
|
|
|
306 |
|
|
|
1,262 |
|
|
|
1,528 |
|
Restructuring costs(3) |
|
227 |
|
|
|
103 |
|
|
|
1,157 |
|
|
|
1,086 |
|
Other (income)/expense, net(4) |
|
(3,466 |
) |
|
|
(3,159 |
) |
|
|
(8,656 |
) |
|
|
(7,849 |
) |
Tax impact of non-GAAP adjustments(5) |
|
(1,982 |
) |
|
|
232 |
|
|
|
(2,132 |
) |
|
|
86 |
|
Non-GAAP net income |
$ |
8,087 |
|
|
$ |
5,861 |
|
|
$ |
19,355 |
|
|
$ |
19,380 |
|
Number of shares used in the GAAP diluted EPS |
|
78,837 |
|
|
|
77,339 |
|
|
|
76,485 |
|
|
|
75,026 |
|
GAAP diluted EPS |
$ |
0.05 |
|
|
$ |
0.01 |
|
|
$ |
(0.01 |
) |
|
$ |
(0.06 |
) |
Number of shares used in the non-GAAP diluted EPS |
|
78,837 |
|
|
|
77,339 |
|
|
|
78,301 |
|
|
|
77,298 |
|
Non-GAAP diluted EPS |
$ |
0.10 |
|
|
$ |
0.08 |
|
|
$ |
0.25 |
|
|
$ |
0.25 |
|
__________________________ |
|
(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 are comprised of severance charges and respective taxes, and are included in General and administrative expenses in the Company’s unaudited condensed consolidated statement of income (loss) and comprehensive income (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 consisting 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, except percentages) |
||||||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
|
|
(in thousands, except percentages of revenues) |
||||||||||||||||||
Retail |
|
$ |
29,825 |
|
34.1 % |
|
$ |
26,544 |
|
34.3 % |
|
$ |
81,233 |
|
32.5 % |
|
$ |
77,972 |
|
33.2 % |
Technology, Media and Telecom |
|
|
24,188 |
|
27.7 % |
|
|
23,732 |
|
30.7 % |
|
|
71,449 |
|
28.5 % |
|
|
74,639 |
|
31.8 % |
Finance |
|
|
14,158 |
|
16.2 % |
|
|
7,299 |
|
9.4 % |
|
|
36,967 |
|
14.8 % |
|
|
20,562 |
|
8.8 % |
CPG/Manufacturing |
|
|
9,807 |
|
11.2 % |
|
|
9,668 |
|
12.5 % |
|
|
29,209 |
|
11.7 % |
|
|
33,186 |
|
14.1 % |
Healthcare and Pharma |
|
|
2,510 |
|
2.9 % |
|
|
3,434 |
|
4.4 % |
|
|
8,677 |
|
3.5 % |
|
|
10,292 |
|
4.4 % |
Other |
|
|
6,947 |
|
7.9 % |
|
|
6,742 |
|
8.7 % |
|
|
22,754 |
|
9.0 % |
|
|
18,190 |
|
7.7 % |
Total |
|
$ |
87,435 |
|
100.0 % |
|
$ |
77,419 |
|
100.0 % |
|
$ |
250,289 |
|
100.0 % |
|
$ |
234,841 |
|
100.0 % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031031735/en/
Grid Dynamics Investor Relations:
investorrelations@griddynamics.com
Source: Grid Dynamics Holdings, Inc.
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