Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) Q1 2024 Earnings Call Transcript May 5, 2024
Grid Dynamics Holdings, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Cary Savas: Good afternoon, everyone. Welcome to Grid Dynamics’ First Quarter 2024 Earnings Conference Call. I’m Cary Savas, Director of Branding and Communications. At this time, our participants are in listen-only mode. Joining us on the call today are CEO, Leonard Livschitz; and CFO, Anil Doradla. Following their prepared remarks, we will open the call to your questions. Please note that today’s conference is being recorded. Before we begin, I would like to remind everyone that today’s discussion will contain forward-looking statements. This includes our business and a financial outlook, and the answers to some of your questions. Such statements are subject to the risks and uncertainty as described in the company’s earnings release and other filings with the SEC.
During this call, we will discuss certain non-GAAP measures of our performance. GAAP to non-GAAP financial reconciliations and supplemental financial information are provided in the earnings press release and the 8-K filed with the SEC. You can find all the information I just described in the Investor Relations section of our website. I now turn the call over to Leonard, our CEO.
Leonard Livschitz: Thank you, Cary. Good afternoon, everyone and thank you for joining us today. As you have seen from our published results, Grid Dynamics’ first quarter revenues were above our guidance range and we exceeded Wall Street expectations both on revenue and non-GAAP EBITDA. It was another quarter of solid execution. Our results clearly show that our focus is steadily paying off and we continue to move forward our stated goals of revenue growth and profitability. During the first quarter, we witnessed improving demand trends across the majority of our customers. While the demand environment is not back to support growth level that we and digital transformation industry have seen, science point out to the right direction.
Customers are increasingly willing to engage with us on their crucial and time sensitive programs and share their outlooks and roadmaps. In the first quarter, we witnessed a significant milestone. We’ve reached the highest number of billable engineers in the company’s history. And this is also reflected in the revenue outlook for the second quarter. During the first quarter, we also secured two multi-million dollar deals with enterprise customers, one of them a market leader in the specialty retail vertical and the other one is in insurance vertical, a key focus area of our GigaCube strategy. We continue to make progress in our joint go-to-market efforts with our partners. Partnership’s contribution is at an all-time high. And it has increased by more than 20% in comparison to the fourth quarter of 2023.
We continue to be very positive on our partnerships and expect continued contribution. I’m also happy to announce that we were recognized by the Everest Group as a leader in its Inaugural Google Cloud Services Specialists, which is PEAK Matrix Assessments report. This achievement validates our capabilities as a specialist in Google Cloud Services, an area of expertise for several years. This is a clear recognition of the differentiated capabilities we offer our clients to drive their digital transformation agenda. In the course of time, I’m confident that more independent third parties will recognize our strengths across other capabilities and service offerings. Coming to AI. Customers are increasingly incorporating AI in their projects and requirements.
See also 20 Most Urbanised Countries in Asia and 9 Largest Private Military Contractors in the World.
To continue reading the Q&A session, please click here.