Grid Dynamics (GDYN) 10-Q 4 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Nov. 02, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-38685
Entity Registrant Name	Grid Dynamics Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-0632724
Entity Address, Address Line One	5000 Executive Parkway
Entity Address, Address Line Two	Suite 520
Entity Address, City or Town	San Ramon
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94583
City Area Code	650
Local Phone Number	523-5000
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	GDYN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		65,251,896
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001743725
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 199,297	$ 112,745
Accounts receivable, net of allowance of $254 and $418 as of September 30, 2021 and December 31, 2020, respectively	30,773	16,890
Unbilled receivables	4,883	1,799
Prepaid income taxes	694	821
Prepaid expenses and other current assets	5,301	2,361
Total current assets	240,948	134,616
Property and equipment, net	5,395	4,095
Intangible assets, net	19,729	8,125
Deferred tax assets	3,258	5,609
Goodwill	35,358	14,690
Total assets	304,688	167,135
Current liabilities
Accounts payable	1,772	757
Accrued liabilities	1,148	628
Accrued compensation and benefits	11,222	7,479
Accrued income taxes	2,302	1,248
Other current liabilities	7,775	3,206
Total current liabilities	24,219	13,318
Deferred tax liabilities	4,903	2,093
Total liabilities	29,122	15,411
Stockholders’ equity (Note 9)
Common stock, $0.0001 par value; 110,000,000 shares authorized; 65,121,241 and 50,878,780 issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	7	5
Additional paid-in capital	256,936	128,930
Retained earnings	18,699	22,793
Accumulated other comprehensive income/(loss)	(76)	(4)
Total stockholders’ equity	275,566	151,724
Total liabilities and stockholders’ equity	$ 304,688	$ 167,135

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Mar. 05, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 254	$ 418
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	110,000,000	110,000,000
Common stock, shares issued (in shares)	65,121,241	50,878,780
Common stock, shares outstanding (in shares)	65,121,241	50,878,780

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Statements of Loss and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenue	$ 57,933	$ 26,332	$ 144,743	$ 81,157
Cost of revenue	32,667	15,178	84,343	51,799
Gross profit	25,266	11,154	60,400	29,358
Operating expenses
Engineering, research, and development	2,132	2,076	5,687	7,193
Sales and marketing	4,073	2,245	9,942	7,451
General and administrative	17,091	8,504	43,195	26,606
Total operating expenses	23,296	12,825	58,824	41,250
Income/(loss) from operations	1,970	(1,671)	1,576	(11,892)
Other income/(expenses), net	114	455	(1,015)	419
Income/(loss) before income taxes	2,084	(1,216)	561	(11,473)
Provision/(benefit) for income taxes	2,633	(99)	4,655	(3,594)
Net loss	(549)	(1,117)	(4,094)	(7,879)
Foreign currency translation adjustments, net of tax	(86)	0	(72)	0
Comprehensive loss	$ (635)	$ (1,117)	$ (4,166)	$ (7,879)
Loss per share
Basic (in dollars per share)	$ (0.01)	$ (0.02)	$ (0.07)	$ (0.18)
Diluted (in dollars per share)	$ (0.01)	$ (0.02)	$ (0.07)	$ (0.18)
Weighted average shares outstanding
Basic (in shares)	62,610	49,651	56,280	43,074
Diluted (in shares)	62,610	49,651	56,280	43,074

Unaudited Consolidated Statemen

Unaudited Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Previously Reported	Adjustment	Convertible Preferred Stock	Convertible Preferred StockPreviously Reported	Convertible Preferred StockAdjustment	Common Stock	Common StockPreviously Reported	Common StockAdjustment	Additional paid-in capital	Additional paid-in capitalPreviously Reported	Additional paid-in capitalAdjustment	Retained earnings	Retained earningsPreviously Reported	Accumulated other comprehensive income/(loss)	Accumulated other comprehensive income/(loss)Previously Reported
Beginning balance (in shares) at Dec. 31, 2019				1,048	622	426	21,644	12,847	8,797
Beginning balance at Dec. 31, 2019	$ 54,044	$ 54,044	$ 0	$ 9,187	$ 9,187		$ 2	$ 8,117	$ (8,115)	$ 18,650	$ 10,535	$ 8,115	$ 35,392	$ 35,392	$ 0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(4,596)												(4,596)
Stock-based compensation	4,804									4,804
Conversion of convertible units (in shares)							53
Conversion of convertible units	530									530
Conversion of preferred stock (in shares)				(1,048)			1,048
Conversion of preferred stock	9,188			$ (9,187)			$ 1			9,187
Consideration paid to Grid shareholders	(123,865)									(123,865)
ChaSerg shares recapitalized, net of transaction costs of $4,142 (in shares)							28,088
ChaSerg shares recapitalized, net of transaction costs of $4,142	204,325						$ 2			204,323
Ending balance (in shares) at Mar. 31, 2020				0			50,833
Ending balance at Mar. 31, 2020	144,430			$ 0			$ 5			113,629			30,796		0
Beginning balance (in shares) at Dec. 31, 2019				1,048	622	426	21,644	12,847	8,797
Beginning balance at Dec. 31, 2019	54,044	$ 54,044	$ 0	$ 9,187	$ 9,187		$ 2	$ 8,117	$ (8,115)	18,650	$ 10,535	$ 8,115	35,392	$ 35,392	0	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(7,879)
Foreign currency translation adjustments, net of tax	0
Ending balance (in shares) at Sep. 30, 2020				0			50,860
Ending balance at Sep. 30, 2020	150,005			$ 0			$ 5			122,487			27,513		0
Beginning balance (in shares) at Mar. 31, 2020				0			50,833
Beginning balance at Mar. 31, 2020	144,430			$ 0			$ 5			113,629			30,796		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(2,166)												(2,166)
Stock-based compensation	3,654									3,654
Exercise of stock options (in shares)							6
Exercise of stock options	59									59
Ending balance (in shares) at Jun. 30, 2020				0			50,839
Ending balance at Jun. 30, 2020	145,977			$ 0			$ 5			117,342			28,630		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(1,117)												(1,117)
Stock-based compensation	5,126									5,126
Exercise of stock options (in shares)							6
Exercise of stock options	19									19
Foreign currency translation adjustments, net of tax	0
Issuance of shares in connection with vested RSUs (in shares)							15
Ending balance (in shares) at Sep. 30, 2020				0			50,860
Ending balance at Sep. 30, 2020	150,005			$ 0			$ 5			122,487			27,513		0
Beginning balance (in shares) at Dec. 31, 2020				0			50,879
Beginning balance at Dec. 31, 2020	151,724			$ 0			$ 5			128,930			22,793		(4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(2,062)												(2,062)
Stock-based compensation	5,671									5,671
Conversion of convertible units (in shares)							2,221
Exercise of stock options (in shares)							41
Exercise of stock options	162									162
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares)							1,030
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards	(15,297)									(15,297)
Foreign currency translation adjustments, net of tax	49														49
Ending balance (in shares) at Mar. 31, 2021				0			54,171
Ending balance at Mar. 31, 2021	140,247			$ 0			$ 5			119,466			20,731		45
Beginning balance (in shares) at Dec. 31, 2020				0			50,879
Beginning balance at Dec. 31, 2020	151,724			$ 0			$ 5			128,930			22,793		(4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(4,094)
Foreign currency translation adjustments, net of tax	(72)
Ending balance (in shares) at Sep. 30, 2021				0			65,121
Ending balance at Sep. 30, 2021	275,566			$ 0			$ 7			256,936			18,699		(76)
Beginning balance (in shares) at Mar. 31, 2021				0			54,171
Beginning balance at Mar. 31, 2021	140,247			$ 0			$ 5			119,466			20,731		45
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(1,483)												(1,483)
Stock-based compensation	6,675									6,675
Conversion of convertible units (in shares)							271
Conversion of convertible units	918									918
Exercise of stock options (in shares)							138
Exercise of stock options	254									254
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares)							149
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards	(3,564)									(3,564)
Foreign currency translation adjustments, net of tax	(35)														(35)
Ending balance (in shares) at Jun. 30, 2021				0			54,729
Ending balance at Jun. 30, 2021	143,012			$ 0			$ 5			123,749			19,248		10
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	(549)												(549)
Stock-based compensation	9,113									9,113
Conversion of convertible units (in shares)							4,188
Conversion of convertible units	48,206						$ 1			48,205
Exercise of stock options (in shares)							656
Exercise of stock options	203									203
Issuance of common stock in July 2021 offering, net of transaction costs of $498 (in shares)							5,470
Issuance of common stock in July 2021 offering, net of transaction costs of $498	77,813						$ 1			77,812
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares)							78
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards	(2,146)									(2,146)
Foreign currency translation adjustments, net of tax	(86)														(86)
Ending balance (in shares) at Sep. 30, 2021				0			65,121
Ending balance at Sep. 30, 2021	$ 275,566			$ 0			$ 7			$ 256,936			$ 18,699		$ (76)

Unaudited Consolidated Statem_2

Unaudited Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Statement of Stockholders' Equity [Abstract]
Recapitalized transaction costs	$ 4,142

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities
Net loss	$ (4,094)	$ (7,879)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	3,520	1,896
Bad debt	(17)	398
Deferred income taxes	2,663	(4,519)
Stock-based compensation	21,459	13,584
Change in fair value of warrants	979	0
Changes in assets and liabilities:
Accounts receivable	(10,549)	(2,139)
Unbilled receivables	(1,257)	2,973
Prepaid income taxes	127	(822)
Prepaid expenses and other current assets	(2,062)	10
Accounts payable	676	(250)
Accrued liabilities	16	(576)
Accrued compensation and benefits	1,533	348
Accrued income taxes	848	110
Other current liabilities	813	(136)
Net cash provided by operating activities	14,655	2,998
Cash flows from investing activities
Purchase of property and equipment	(3,016)	(1,607)
Acquisition of Tacit, net of cash acquired (Note 4)	(30,585)	0
Net cash used in investing activities	(33,601)	(1,607)
Cash flows from financing activities
Cash received from ChaSerg	0	208,997
GDI shares redeemed for cash	0	(123,865)
Equity issuance costs	0	(2,264)
Payments of tax obligations resulted from net share settlement of vested stock awards	(21,007)	0
Proceeds from exercises of stock options, net of shares withheld for taxes	619	78
Proceeds from exercise of public warrants	48,145	0
Proceeds related to issuance of Common Stock from July 2021 Offering	78,311	0
Payments for professional fees related to issuance of common stock from July 2021 Offering	(498)	0
Net cash provided by financing activities	105,570	82,946
Effect of exchange rate changes on cash and cash equivalents	(72)	0
Net increase in cash and cash equivalents	86,552	84,337
Cash and cash equivalents, beginning of period	112,745	42,189
Cash and cash equivalents, end of period	199,297	126,526
Supplemental disclosure of cash flow information:
Cash paid for income taxes	1,403	1,370
Supplemental disclosure of non-cash activities
Conversion of preferred stock to common stock	0	9,187
Conversion of private warrants	979	0
Contingent consideration for acquisition of businesses	$ 2,979	$ 0

Background and nature of operat

Background and nature of operations	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Background and nature of operations	Background and nature of operations Grid Dynamics Holdings, Inc. (the “Company” or “GDH”) provides enterprise-level digital transformation in the areas of search, analytics, and release automation to Fortune 1000 companies. The Company’s headquarters and principal place of business is in San Ramon, California. The Company was originally incorporated in Delaware on May 21, 2018 as a special purpose acquisition company under the name ChaSerg Technology Acquisition Corp. (“ChaSerg”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving ChaSerg and one or more businesses. On March 5, 2020 (the “Closing”), the Company consummated its business combination with Grid Dynamics International, Inc. (“GDI”) pursuant to the Agreement and Plan of Merger (the “Merger Agreement”), dated November 13, 2019 (the “Business Combination”). In connection with the Closing, the Company changed its name from ChaSerg Technology Acquisition Corp. to Grid Dynamics Holdings, Inc. The Company’s common stock is now listed on the NASDAQ under the symbol “GDYN” and warrants to purchase the common stock at an exercise price of $11.50 per share were listed on the NASDAQ under the symbol “GDYNW” until they all were delisted on August 30, 2021 following redemption. Unless the context otherwise requires, the “Company” refers to the combined company and its subsidiaries following the Business Combination, “ChaSerg” refers to the Company prior to the Closing, and “GDI” refers to GDI prior to the Closing. Refer to Note 3 for further discussion of the Business Combination.

Basis of presentation and summa

Basis of presentation and summary of significant accounting policies	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of presentation and summary of significant accounting policies	Basis of presentation and summary of significant accounting policies The following is a summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements. Unaudited Interim Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. These interim financial statements should be read in conjunction with GDH’s audited financial statements for the year ended December 31, 2020 included in the Company’s annual report on Form 10-K that the Company filed with the SEC on March 5, 2021. Basis of presentation The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Although ChaSerg was the legal acquirer, for accounting purposes, GDI was deemed to be the accounting acquirer. GDI was determined to be the accounting acquirer based on evaluation of the following facts and circumstances: • GDI holds executive management roles for the Company and those individuals are responsible for the day-to-day operations; • GDI’s former owners have the largest minority voting rights in the Company; • From a revenue and business operation standpoint, GDI was the larger entity in terms of relative size; • GDI’s San Ramon, CA headquarters are the headquarters of the Company; and • The intended strategy of the Company will continue GDI’s strategy of driving enterprise-level digital transformation in the Fortune 1000 companies. In conjunction with the Business Combination, outstanding shares of GDI were converted into common stock of the Company, par value $0.0001 per share, shown as a recapitalization, and the net assets of ChaSerg were acquired at historical cost, with no goodwill or other intangible assets recorded. GDI was deemed to be the predecessor of the Company, and the consolidated assets and liabilities and results of operations prior to the Closing (for the years ended December 31, 2019 and 2018 and the period from January 1, 2020 to March 5, 2020) are those of GDI. ChaSerg’s assets and liabilities, which include net cash from the trust of $85.1 million, and results of operations were consolidated with GDI beginning on the Closing. In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparative periods up to the Closing Date, to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to GDI shareholders in connection with the recapitalization transaction. As such, the shares and corresponding capital amounts and earnings per share related to GDI preferred and common stock prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio established in the Business Combination. Principles of consolidation The accompanying condensed financial statements include the accounts of the Company and all of its subsidiaries that are directly or indirectly owned or controlled. Intercompany transactions and balances have been eliminated upon consolidation. Use of estimates The preparation of the consolidated condensed financial statements in accordance with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and such differences could be material. Significant estimates include allowances for receivables, calculation of accrued liabilities, capitalization of internally developed software, stock-based compensation, contingent consideration payable, determination of fair value, useful lives and recoverability of intangible assets and goodwill, determination of provision for income taxes and uncertain tax positions. Certain significant risks and uncertainties The Company is subject to risks, including but not limited to customer concentration, concentrations of credit and foreign currency risks. Refer to the section below for additional information. Additionally, the Company has been impacted by the coronavirus (“COVID-19”) pandemic. The global pandemic of COVID-19 has negatively affected the U.S. and global economy, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to “shelter-in-place,” and created significant disruption of the financial market. In 2020 the COVID-19 pandemic impacted the Company’s revenues, and the Company’s business continues to be exposed to risks and uncertainties related to the pandemic. The impact of the COVID-19 pandemic had been more pronounced with the Company’s retail customers, which depended on keeping their stores open. Additionally, in situations where the Company’s customers encountered financial difficulties, there was a risk associated with the Company’s inability to collect money from customers. In 2020 the Company took several actions to deal with the COVID-19 pandemic. These included enabling its employees to work from home, company-wide salary and compensation cuts, hiring freezes, and suspending all non-essential travel. Some of these actions such as working from home as well as suspending all non-essential travel continues to be currently in place. As the Company's business recovered in 2021, the Company discontinued some of the cost saving measures such as compensation cuts and hiring freezes. The Company now is facing the opposite challenges including employee retention and shortage of talent on the job market. The ultimate impact and the extent to which the COVID-19 pandemic will continue to affect the business, results of operation and financial condition is difficult to predict and depends on numerous evolving factors outside of the Company’s control including: the duration and scope of the pandemic, including from renewed waves and new variants; government, social, business and other actions that have been and will be taken in response to the pandemic; and the effect of the pandemic on short and long-term general economic conditions. Concentrations of credit risk and significant customers The Company records its accounts receivable and unbilled receivables at their face amounts less allowances. Accounts receivable and unbilled receivables are generally dispersed across the Company’s customers in proportion to their revenue. Two customers individually exceeded 10% of the Company’s accounts receivable balance as of September 30, 2021 and three customers individually exceeded 10% of the Company’s accounts receivable balance as of December 31, 2020. Two customers individually exceeded 10% of the unbilled receivables as of September 30, 2021 and three customers individually exceeded 10% of the unbilled receivables as of December 31, 2020. Two customers individually accounted for greater than 10% of the sales for the three and nine months ended September 30, 2021 and 2020, respectively. Cash and cash equivalents The Company considers cash equivalents to be highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents are stated at cost, which approximates fair value. At times, cash deposits with banks may exceed federally insured limits. Accounts receivable and allowance for doubtful accounts Accounts receivable, less allowance for doubtful accounts, reflect the net realizable value of receivables and approximate fair value. The Company maintains an allowance against accounts receivable for the estimated probable losses on uncollectible accounts. The allowance is based upon historical loss experience, current economic conditions within the industries the Company serves as well as determination of the specific risk related to certain customers. Accounts receivable are charged off against the reserve when, in management’s estimation, further collection efforts would not result in a reasonable likelihood of receipt. As of September 30, December 31, (in thousands) Trade accounts receivable $ 31,027 $ 17,308 Allowance for doubtful accounts (254) (418) Total trade accounts receivable, net $ 30,773 $ 16,890 Unbilled receivables Generally, the Company will not bill customers until the services have been completed. From time-to-time, a service period may overlap with a period-end and the unbilled receivables represent amounts for services performed through period-end, but not yet billed. The unbilled receivable represents the amount expected to be billed and collected for services performed through period-end in accordance with contract terms. The unbilled receivables balances were $4.9 million and $1.8 million as of September 30, 2021 and December 31, 2020, respectively. Goodwill Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. On an annual basis, the Company makes a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If the Company determines that the fair value of the reporting unit is less than its carrying amount, it will perform a quantitative analysis; otherwise, no further evaluation is necessary. For the quantitative impairment assessment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company uses the discounted cash flow method of the income approach and market approach to determine the fair value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired, and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company will recognize a loss equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. Impairments, if any, are charged directly to earnings. As of September 30, 2021, the Company has a single reporting unit and determined there were no indicators of impairment. Intangible assets Finite-lived intangible assets are stated at cost less accumulated amortization. Amortization is computed on the straight-line basis over the asset’s useful lives ranging between 2 and 12 years. Intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be fully recoverable. If facts and circumstances indicate that the carrying value might not be recoverable, projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives is compared against their respective carrying amounts. If an asset is found to be impaired, the impairment charge will be measured as the amount by which the carrying amount of an entity exceeds its fair value. As of September 30, 2021, the Company determined there were no indicators of impairment. Revenue recognition The Company accounts for a contract with a customer when 1) the parties to the contract have approved the contract and are committed to performing their respective obligations, 2) the contract identifies each party’s rights regarding the goods or services to be transferred, 3) the contract identifies the payment terms for the goods or services to be transferred, 4) the contract has commercial substance, and 5) collection of substantially all consideration pursuant to the contract is probable. The Company derives its revenue from offering a suite of digital engineering and information technology (“IT”) consulting services, including digital transformation strategy, emerging technology, lean labs and legacy system replatforming. For most contracts, the Company uses master agreements to govern the overall relevant terms and conditions of the business arrangement between the Company and its customers. When the Company and a customer enter into a Master Services Agreement (“MSA”), purchases are generally made by the customer via a statement of work (“SOW”) which explicitly references the MSA and specifies the services to be delivered. Fees for these contracts may be in the form of time-and-materials or fixed-fee arrangements. The majority of the Company’s revenues are generated under time-and-material contracts which are billed using hourly rates to determine the amounts to be charged directly to the customer. Fees are billed and collected as stipulated in the contract, and revenue is recognized as services are performed. If there is an uncertainty about the receipt of payment for the services, revenue is recognized to the extent that a significant reversal of revenue would not be probable. Consulting services revenue is a single performance obligation earned through a series of distinct daily services and may include services such as those described above. The Company recognizes revenue for services over time as the customer simultaneously receives and consumes the benefits as the Company performs IT consulting services. For revenue contracts, the customer derives value from the Company providing daily consulting services, and the value derived corresponds to the labor hours expended. Therefore, the Company measures the progress and recognizes revenue using an effort-based input method. For fixed fee contracts, the Company recognizes revenue as the work is performed, the monthly calculation of which is based upon actual labor hours incurred and level of effort expended throughout the duration of the contract. For time-and-material contracts, the Company applies the variable consideration allocation exception. Therefore, instead of allocating the variable consideration to the entire performance obligation, the Company determined the variable consideration should be allocated to each distinct service to which the variable consideration relates, which is providing the customer daily consulting services. The Company also offers volume discounts or early settlement discounts. Volume discounts apply once the customer reaches certain contractual spend thresholds. Early settlement discounts are issued contingent upon the timing of the payment from the customer. If the consideration promised in a contract includes a variable amount, the Company only includes estimated amounts of consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. These estimates may require management to make subjective judgments and to make estimates about the effects of matters inherently uncertain. The determination of whether to constrain consideration in the transaction price are based on information (historical, current and forecasted) that is reasonably available to the Company, taking into consideration the type of customer, the type of transaction and the specific facts and circumstances of each arrangement. Although the Company believes that its approach in developing estimates and its reliance on certain judgments and underlying inputs is reasonable, actual results may differ from management’s estimates, judgments and assumptions. These estimates have historically not been material to the consolidated financial statements. Remaining performance obligation ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 30, 2021. This disclosure is not required for: 1) contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty, 2) contracts for which the Company recognizes revenues based on the right to invoice for services performed, 3) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or 4) variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property. All of the Company’s contracts met one or more of these exemptions as of September 30, 2021. Stock-based compensation expense Stock-based compensation expense is measured based on the grant-date fair value of the share-based awards. Forfeitures are recognized as incurred. The Company estimates stock options grant-date fair value using the Black-Scholes-Merton option pricing model. The model requires management to make a number of key assumptions including expected volatility, expected term, risk-free interest rate, and expected dividends. The Company evaluates the assumptions used to value its share-based awards on each grant date. The fair market value of Grid Dynamics stock is determined based on the closing price on NASDAQ on the measurement date. The Company amortizes the grant-date fair value of all share-based compensation awards over the employee’s requisite service period for the entire award on a straight-line basis, which is generally the vesting period. For an award with graded vesting that is subject only to a service condition (e.g., time-based vesting), the Company uses the straight-line attribution method under ASC 718 under which they recognize compensation cost on a straight-line basis over the total requisite service period for the entire award (i.e., over the requisite service period of the last separately-vesting tranche of the award). Additionally, the Company applies the “floor” concept so that the amount of compensation cost that is recognized as of any date is at least equal to the grant-date fair value of the vested portion of the award on that date. That is, if the straight-line expense recognized to date is less than the grant date fair value of the award that is legally vested at that date, the company will increase its recognized expense to at least equal the fair value of the vested amount. Refer to Note 10 — Stock-based compensation for additional information. Income taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. The determination of the provision for income taxes requires significant judgment, the use of estimates and the interpretation and application of complex tax laws. The provision for income taxes reflects a combination of income earned and taxed in the various U.S. federal and state, international and other jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax contingencies or valuation allowances, and the change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Management considers all available evidence, both positive and negative, in determining whether a valuation allowance is required. Such evidence includes prior earnings history, the scheduled reversal of deferred tax liabilities, projected future taxable income, carryback and carryforward periods of tax attributes, and tax planning strategies that could potentially enhance the likelihood of realization of a deferred tax asset in making this assessment. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. The Company evaluates for uncertain tax positions at each balance sheet date. When it is more likely than not that a position will be sustained upon examination by a tax authority that has full knowledge of all relevant information, the Company measures the amount of tax benefit from the position and records the largest amount of tax benefit that is greater than 50% likely of being realized after settlement with a tax authority. The Company’s policy for interest and/or penalties related to underpayments of income taxes is to include interest and penalties in income tax expense. Recently adopted accounting pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (the “FASB”), in the form of Accounting Standards Updates (“ASUs”), to the FASB’s ASC. The Company has elected not to opt out of the extended transition period and thus when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The update is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020, and early adoption is permitted. The Company adopted the standard as of January 1, 2021 and has determined that the adoption of this guidance did not have a material effect on the consolidated financial statements. Recently issued accounting pronouncements The Company considered the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-2, Leases . ASU 2016-2 requires lessees to put most leases on their balance sheet while recognizing expense in a manner similar to existing accounting. ASU 2016-2 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard allows for two methods of adoption to recognize and measure leases: retrospectively to each prior period presented in the financial statements with the cumulative effect of initially applying the guidance recognized at the beginning of the earliest comparative period presented or retrospectively at the beginning of the period of adoption with the cumulative effect of initially applying the guidance recognized at the beginning of the period in which the guidance is first applied. Both adoption methods include a number of optional practical expedients that entities may elect to apply. The Company will adopt the standard retrospectively at the beginning of the period of adoption with the cumulative effect of initially applying the guidance recognized at the beginning of the period in which the guidance is first applied. The new accounting guidance is effective for the Company for fiscal periods beginning after December 15, 2021. The Company expects the impact to be material but has not yet determined the impact that the adoption of this guidance will have on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments . Topic 326 was subsequently amended by ASU 2019-4, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, ASU 2019-5, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief, and clarified the guidance with the release of ASU 2020-2 Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842). These ASUs replace the current incurred loss impairment methodology with a methodology that reflects expected credit losses measured at amortized cost and certain other instruments, including loans, held-to-maturity debt securities, net investments in leases, and off-balance sheet credit exposures. The update is effective for fiscal years beginning after December 15, 2022, and interim periods with fiscal years after December 15, 2022. The Company has not yet determined the impact that the adoption of this guidance will have on the consolidated financial statements. In March 2020, FASB issued ASU No. 2020-3, Codification to Financial Instruments. This ASU improves and clarifies various financial instruments topics, including the current expected credit losses standard issued in 2016. The ASU includes seven different issues that describe the areas of improvement and the related amendments to U.S. GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 3, Issue 4, and Issue 5 were effective upon issuance of this update. The new guidance did not have a material impact on the consolidated financial statements. The amendments related to Issue 6 and Issue 7 are effective for the Company the earlier of January 1, 2023 or when the Company adopts ASU 2016-13, if early adopted. The Company is currently evaluating the impact these topics will have on the consolidated financial statements.

Business combination

Business combination	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Business combination	Business combination On March 5, 2020, ChaSerg consummated its business combination with GDI pursuant to the Merger Agreement. Immediately following the Business Combination, there were 50.8 million shares of common stock with a par value of $0.0001, and 11.3 million warrants outstanding. GDI began operations in September 2006 to provide next-generation e-commerce platform solutions in the areas of search, analytics, and release automation to Fortune 1000 companies. Under ASC 805, Business Combinations, GDI was deemed the accounting acquirer, and the Business Combination was accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded in accordance with U.S. GAAP. ChaSerg was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of GDI issuing stock for the net assets of ChaSerg, accompanied by a recapitalization. The net assets of ChaSerg were stated at historical cost, with no goodwill or other intangible assets recorded. Reported shares and earnings per share available to holders of the Company’s common stock, prior to the Business Combination, have been retroactively restated as shares reflecting the exchange ratio established in the Business Combination (approximately 1.685 GDH shares to 1.0 GDI share). The aggregate consideration for the Business Combination was $396.5 million, consisting of $130.0 million in cash and 27.0 million shares of ChaSerg’s common stock valued at $10.19 per share, less a post-Closing share adjustment amount of 0.9 million shares which were placed in escrow post-Closing. The shares transferred at Closing included 4.3 million options to purchase the Company’s shares that were vested, outstanding and unexercised, which were determined using 1.7 million vested options at Closing converted at an exchange ratio of approximately 2.48. Additionally, 0.4 million options to purchase the Company’s common stock that were unvested, outstanding and unexercised were assumed by the Company, which were determined using 0.1 million unvested options at Closing converted at an exchange ratio of approximately 2.48. The following represents the aggregate consideration for the Business Combination ( in thousands except for per share amount): Shares transferred at Closing 27,006 Less: Post-Closing share adjustment (857) Total shares transferred at Closing 26,149 Value per share $ 10.19 Total share consideration $ 266,459 Plus: Cash transferred to GDI stockholders 130,000 Closing merger consideration $ 396,459 In connection with the Closing, 0.1 million shares of common stock were redeemed at a price per share of approximately $10.21. In connection with the Business Combination, the Company incurred direct and incremental costs of approximately $4.7 million, consisting of legal and professional fees, of which $4.1 million were related to equity issuance costs and recorded to additional paid-in capital as a reduction of proceeds and $0.6 million were recorded to general and administrative expenses. In connection with the Business Combination, all outstanding retention bonus obligations from a 2017 acquisition totaling $3.4 million were accelerated and paid in full to Grid Dynamics’ personnel immediately prior to the Closing and were recorded in cost of revenue and operating expenses in the consolidated financial statements.

Acquisition of Tacit Knowledge

Acquisition of Tacit Knowledge Inc.	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisition of Tacit Knowledge Inc.	Acquisition of Tacit Knowledge Inc. On May 29, 2021, the Company acquired 100% of the equity interest of the global consultancy company Tacit Knowledge Inc. (“Tacit”). Founded in 2002, Tacit is a global provider of digital commerce solutions, serving customers across the UK, North America, Continental Europe, and Asia. The acquisition of Tacit added approximately 180 employees to the Company's headcount. The acquisition will augment the Company's service offerings and will strengthen its competitive position within the market. Additionally, the acquisition will also enable the Company to leverage near-shore capabilities with Tacit’s presence in Mexico. The total purchase consideration is $37.0 million and consists of cash consideration of $33.6 million paid at closing and fair value of the contingent consideration at the date of the acquisition of $3.4 million. The maximum amount of potential contingent cash consideration is $5.0 million. The contingent consideration is payable based on revenue and EBITDA metrics to be achieved by Tacit within 12 months. The Company recorded a liability for the contingent consideration amount based on the Company’s best estimate of the fair value of the expected payout. The primary areas of the preliminary purchase price allocations that have not been finalized relate to the finalization of working capital, the valuation and useful lives of intangible assets, the valuation of the contingent consideration ("earn-out"), and the deferred tax liabilities. Upon completion of the fair value assessment, the Company anticipates that the ultimate intangible assets may differ from the preliminary assessment outlined above. Any change in the finalization of working capital will reduce or increase the cash consideration. Any changes to the preliminary estimates of the fair value of the and intangible assets or contingent consideration ("earn-out") will be adjusted to goodwill during the measurement period, with subsequent changes in estimates recorded in the Company’s Consolidated Statements of Loss and Comprehensive Loss. The purchase price of Tacit has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated respective fair values as of May 29, 2021 with the excess purchase price allocated to goodwill. The Company’s preliminary allocation of the purchase price to the net tangible and intangible assets acquired and liabilities assumed is as follows (in thousands): Fair market values Current assets (including $2,967 of cash) $ 9,145 Property, plant and equipment 466 Customer relationships 11,737 Tradename 1,176 Goodwill 20,603 Total assets acquired $ 43,127 Accounts payable and accrued expenses $ (3,675) Deferred taxes (2,500) Total liabilities assumed $ (6,175) Purchase price allocation $ 36,952 The preliminary fair value of identifiable intangible assets as of the date of acquisition is as follows: (In thousands) Fair Value Useful Life Amortization Customer relationships $ 11,737 12 years Straight-line Tacit tradename 1,176 4 years Accelerated Total identified intangible assets $ 12,913 As a result of the acquisition, the Company recognized a total of $20.6 million of goodwill. The purchase price was assigned to assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition, and any excess was allocated to goodwill, as shown in the table above. Goodwill represents the value the Company expects to achieve through the implementation of operational synergies and growth opportunities as the Company expands its global reach. The goodwill is not deductible for income tax purposes. The Company used various valuation techniques to determine fair value, with the primary techniques being discounted cash flow analysis, relief-from-royalty, and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or Level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, the Company is required to make estimates and assumptions about sales, operating margins, growth and attrition rates, royalty rates and discount rates based on budgets, business projections, anticipated future cash flows, and marketplace data. The acquisition of Tacit was accounted for using the acquisition method of accounting, and consequently, the results of operations for Tacit are reported in the consolidated financial statements from the date of acquisition. Tacit revenue was approximately $9.5 million and net income was approximately $1.7 million from the date of acquisition to September 30, 2021. The following unaudited pro forma information presents the combined results of operations as if the acquisition of Tacit had occurred at the beginning of 2020. Tacit pre-acquisition results have been added to the Company’s historical results. The pro forma results contained in the table below include adjustment for amortization of acquired intangibles. Any potential cost savings or other operational efficiencies that could result from the acquisition are not included in these pro forma results. The 2021 pro forma results include transaction related expenses incurred by the Company prior to the acquisition of $0.6 million including items such as consultant fees and other deal costs. These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor are they necessarily an indication of future operating results. Nine Months Ended (Unaudited) 2021 2020 Revenue $ 152,775 $ 92,462 Net loss $ (2,304) $ (8,156) Diluted loss per share $ (0.04) $ (0.19)

Property and equipment, net

Property and equipment, net	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment, net Property and equipment consist of the following (in thousands): Estimated As of September 30, December 31, Computers and equipment 2-5 $ 9,241 $ 6,447 Machinery and automobiles 5 631 551 Furniture and fixtures 3-7 1,012 643 Software 5 513 554 Leasehold improvements 3-12 526 236 11,923 8,430 Less: Accumulated depreciation and amortization (7,798) (5,622) 4,125 2,809 Capitalized software development costs 2-3 4,394 3,531 Less: Accumulated amortization (3,124) (2,245) 1,270 1,287 Property and equipment, net $ 5,395 $ 4,095

Intangible assets, net

Intangible assets, net	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, net	Intangible assets, net Intangible assets consist of the following (in thousands): Estimated As of September 30, December 31, Customer relationships 8-12 $ 15,971 $ 4,234 Tradename 4-10 4,676 3,500 Non-compete agreements 2 440 440 21,087 8,174 Less: Accumulated amortization (1,358) (49) Intangible assets, net $ 19,729 $ 8,125

Other current liabilities

Other current liabilities	9 Months Ended
	Sep. 30, 2021
Other Liabilities, Current [Abstract]
Other current liabilities	Other current liabilities The components of other current liabilities were as follows (in thousands): As of September 30, 2021 December 31, 2020 Customer deposits $ 781 $ 731 Other liabilities 2,068 528 Contingent consideration payable 4,926 1,947 Total other current liabilities $ 7,775 $ 3,206 In connection with the acquisition of Daxx Web Industries B.V.("Daxx") on December 14, 2020, the Company recorded a contingent consideration payable, which is a post-closing earn-out consideration, estimated based on fair value of $1.9 million. During the third quarter of 2021 the Company made an adjustment to the fair value of the earn-out consideration that resulted in recognition of $0.4 million of income that was classified as Other income/(expenses), net in unaudited condensed consolidated statement of loss and comprehensive loss. In connection with the acquisition of Tacit on May 29, 2021, the Company recorded a contingent consideration payable, which is a post-closing earn-out consideration, estimated based on fair value of $3.4 million. As of September 30, 2021 the Company had payable to one of its related parties in the amount of $1.1 million that was classified as Other current liabilities in unaudited condensed consolidated balance sheet.

Income taxes

Income taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income taxes	Income taxesThe Company recorded income tax expense of $2.6 million and income tax benefit of $(0.1) million for the three months ended September 30, 2021 and 2020, respectively. The Company’s effective tax rate was 126.3% and 8.1% for the three months ended September 30, 2021 and 2020, respectively. The increase in effective tax rate for the three months ended September 30, 2021, as compared to the same periods in 2020 was attributable mainly to Section 162 (m) compensation deduction limitations partially offset by stock-based compensation excess tax benefit. The Company recorded income tax expense of $4.7 million and income tax benefit of $(3.6) million for the nine months ended September 30, 2021 and 2020, respectively. The Company’s effective tax rate was 829.8% and 31.3% for the nine months ended September 30, 2021 and 2020, respectively. The increase in effective tax rate for the nine months ended September 30, 2021, as compared to the same periods in 2020 was attributable mainly to Section 162 (m) compensation deduction limitations partially offset by stock-based compensation excess tax benefit. Additionally, the United Kingdom’s (“UK”) recently enacted Finance Act 2021 has increased its corporate tax rate to 25% for companies with profits exceeding 250,000 pounds, effective beginning April 1, 2023. As a result of this change in tax law, the Company remeasured its UK deferred taxes which resulted in a $0.5 million discrete tax expense in the nine months ended September 30, 2021. For the three and nine months ended September 30, 2021, the Company used a discrete effective tax rate method to calculate income taxes due to sensitivity of the forecast. Through June 30, 2021, the Company determined that small changes in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate causing material distortion in the year-to-date tax provision. As of September 30, 2021, the Company is unable to produce a reliable estimate of ordinary income for the quarter and year ending 2021 due to the inability to reliably or accurately forecast fourth quarter 2021 operating expenses. Similarly, for the three and nine months ended September 30, 2020, due to uncertainties created by the COVID-19 pandemic, the Company’s estimated annual effective tax rate method would not provide a reliable estimate and therefore was not used.

Stockholders' equity

Stockholders' equity	9 Months Ended
	Sep. 30, 2021
Stockholders' Equity Note [Abstract]
Stockholders’ equity	Stockholders’ equity The following description summarizes the material terms and provisions of the securities that the Company has authorized. Common stock The Company is authorized to issue 110.0 million shares of common stock. At Closing, March 5, 2020, the Company had issued 50.8 million shares of common stock. As of September 30, 2021 the Company had 65.1 million shares of common stock that were outstanding. On July 6, 2021, the Company concluded a follow-on public offering of 11.6 million shares of its common stock, which included 5.5 million shares offered by Grid Dynamics and 6.1 million shares offered by certain selling stockholders, at a price to the public of $15.03 per share. These amounts included shares sold upon exercise in full of the underwriters' option to purchase additional shares. J.P. Morgan Securities, LLC, William Blair & Company, L.L.C. and Cowen and Company, LLC acted as joint book-running managers for the offering. Needham & Company, LLC and Cantor Fitzgerald & Co. acted as co-managers for the offering. The net proceeds from this offering for the company, after deducting underwriting discounts and commissions and estimated offering expenses, were $78.3 million. The Company did not receive any proceeds from the sale of the shares by the selling stockholders. Preferred Stock As of December 31, 2019 GDI had 1.0 million shares of no par value shares of preferred stock outstanding convertible on a 1:1 basis with GDI’s common stock. At the Closing, the preferred stock outstanding was converted into common stock of the Company, par value $0.0001 per share. Founders and underwriter shares subject to earnout provisions At the Closing, the Company had 1.2 million shares of common stock issued and outstanding subject to earnout provisions (the “Earnout Shares”). The Earnout Shares were subject to transfer restrictions and the owners of the Earnout Shares could not sell, transfer, or otherwise dispose of their respective shares until the respective earnout provisions were achieved as described further below. The Earnout Shares have full ownership rights including the right to vote and receive dividends and other distributions thereon. Dividends and other distributions are not subject to forfeiture in accordance with the Amended and Restated Sponsor Share Letter filed with the SEC on January 26, 2020. The Earnout Shares were eligible to vest and were no longer subject to the transfer restrictions as follows: 399,999; 400,000; and 400,001 Earnout Shares would vest if the closing price of the Company’s common stock on the principal exchange on which the securities are listed or quoted have been at or about $12.00; $13.50; and $15.00 per share, respectively, for 20 trading days (which need not be consecutive) over a thirty As of December 31, 2020, none of the Earnout Shares were vested. On January 20, 2021, 399,999 Earnout Shares vested and are no longer subject to transfer restrictions. On March 2, 2021, 400,000 Earnout Shares vested and are no longer subject to transfer restrictions. On March 29, 2021, 400,001 Earnout Shares vested and are no longer subject to transfer restrictions. Accordingly, as of March 29, 2021, all of the Earnout Shares have vested. Warrants On April 12, 2021, the Staff of the SEC issued the “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “Staff Statement”). The Staff Statement provided new guidance for all SPAC-related companies regarding the accounting and reporting for their warrants that could result in the warrants issued by SPACs being classified as a liability measured at fair value, with non-cash fair value adjustments reported in earnings at each reporting period. The Company reviewed the accounting for both its public warrants and private warrants following the Staff Statement. The Company determined that the accounting for its public warrants as equity was consistent with the Staff Statement. The Company determined that its private warrants should be accounted for as liabilities but that the related accounting errors during the year ended December 31, 2020 were not material to the required financial statements and disclosures included in its annual report on Form 10-K filed on March 5, 2021. In the three months ended March 31, 2021, the Company began accounting for the private warrants correctly, as disclosed in its quarterly report on Form 10-Q filed on May 6, 2021. During the second and third quarter of 2021, all remaining private warrants were exchanged to common stock. From July 23, 2021 to July 26, 2021, 1.4 million public warrants were exercised with cash proceeds of $16.4 million. On July 28, 2021, the Company announced the redemption of its 2.8 million then outstanding public warrants. Any public warrants not exercised prior to 5:00 p.m., New York City time, on August 30, 2021 were redeemed at that time for $0.01 per warrant. The public warrants were exercisable at a price of $11.50 per share. Of the total of 2.8 million warrants outstanding on July 28, 2021, 2.75 million were exercised and cash proceeds generated from these exercised warrants were approximately $31.7 million. Pursuant to the terms of the agreements governing the rights of the holders of the public warrants, the Company redeemed the remaining unexercised and outstanding 19,744 public warrants on August 30, 2021 for a redemption price of $0.01 per public warrant.

Stock-based compensation

Stock-based compensation	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-based compensation	Stock-based compensation 2018 Stock Plan GDI had previously adopted a stock plan in 2018 (the “2018 Stock Plan”). Under the terms of the 2018 Stock Plan, certain option grants were accelerated in full or by an additional 12 months as a result of the Business Combination. Therefore, on the date of Closing, the acceleration of vesting for 2.6 million stock options resulted in a stock compensation charge and corresponding increase to additional paid-in capital of $2.5 million. Additionally, at Closing, a percentage of outstanding vested GDI stock options were settled in exchange for cash consideration, pursuant to the terms of the Merger Agreement. The remaining portion of outstanding vested options totaling 1.7 million and all unvested options totaling 0.1 million were automatically assumed and converted into options to purchase the Company’s common stock as of the Closing. The number of each participant’s assumed options and the exercise price were adjusted as provided in the Merger Agreement. There was no incremental compensation cost attributable to the incremental fair value of the modified options compared to the original options on the modification date. The assumed stock options will continue to be subject to the same terms and conditions, including vesting schedule terms, in accordance with the 2018 Stock Plan. Exercise prices for 2018 Stock Plan options range between $3.51 and $3.54 per share. The following table sets forth the activity for the 2018 Stock Plan, including the conversion of the vested and unvested options, for the nine months ended September 30, 2021: Options Balance at December 31, 2019 2,734 Cashed out (829) Forfeited (19) Balance at March 31, 2020 (prior to exchange ratio conversion) 1,887 Converted vested balance 4,314 Converted unvested balance 364 Balance at March 6, 2020 (post to exchange ratio conversion) 4,678 Exercised in 2020 (28) Forfeited/Cancelled in 2020 (50) Options Outstanding as of December 31, 2020 4,600 Exercised in quarter ended March 31, 2021 (37) Forfeited/Cancelled in quarter ended March 31, 2021 (11) Options Outstanding as of March 31, 2021 4,552 Exercised in quarter ended June 30, 2021 (257) Forfeited/Cancelled in quarter ended June 30, 2021 (3) Options Outstanding as of June 30, 2021 4,291 Exercised in quarter ended September 30, 2021 (687) Forfeited/Cancelled in quarter ended September 30, 2021 (1) Options Outstanding as of September 30, 2021 3,603 As of September 30, 2021, a total of 0.07 million shares were forfeited, and 1.01 million shares were exercised for the total proceeds of $2.1 million in cash and 0.25 million shares net withheld for exercise price and taxes. The number of shares exercisable as of September 30, 2021 was 3.5 million with the average exercise price $3.54 per share. The intrinsic value of the 3.6 million total outstanding shares of 2018 Plan Options as of September 30, 2021, was $92.5 million with the remaining contractual term of 7.23 years. The unrecognized compensation expenses related to 2018 Plan options as of September 30, 2021 was $0.2 million, net of forfeitures, to be expensed on a straight-line basis over 1.93 years. 2020 Equity Incentive Plan Effective March 5, 2020, our board of directors approved an equity incentive plan (the “2020 Plan”). The 2020 Plan permits the Company to grant a maximum aggregate amount of 16.3 million Incentive Stock Options, Non-Statutory Stock Options (“NSOs”), Restricted Stock, Restricted Stock Units (“RSUs”), Stock Appreciation Rights, Performance Units (“PSUs”), and Performance Shares (“PSAs”) (collectively, the “Awards”) to employees, directors, and consultants of the Company. Our board of directors or any committee appointed by the board has the authority to grant Awards. During the quarter ended September 30, 2021, our board of directors granted 0.32 million NSOs and 0.04 million RSUs. The following table represent the number of shares available for grants from 2020 Equity Incentive Plan (in thousands): Available Available for grant, December 31, 2020 9,881 Options granted (546) RSU granted (47) PSU granted (100% target) (566) Options, RSUs, and PSUs forfeited 669 Traded for taxes (returned to the pool) 1,513 Available for grant, September 30, 2021 10,904 Stock Options The total of 0.32 million NSOs shares granted during the quarter ended September 30, 2021 from 2020 Equity Incentive Plan are subject to the following time-based vesting conditions: one-fourth of the NSOs will vest on one year after the grant date; and thereafter one-sixteenth of the NSOs will vest each subsequent three-month anniversary. The NSOs have a 10-year expiration term, and once the NSOs are vested, the recipients have the right to purchase the Company’s stock at a fixed exercise price. The grant date fair value of each NSO was estimated on the date of grant using the Black-Scholes-Merton option pricing model. The key assumptions for 2021 grants are provided in the following table. 2021 Dividend yield 0 % Expected volatility 40 % Risk-free interest rate 0.87 % Expected term in years 6.11 Grant date fair value of common stock $ 18.60 The Company used a zero percent dividend yield assumption for all Black-Scholes-Merton stock option-pricing calculations. Since the Company’s shares were not publicly traded prior to the Closing and its shares were rarely traded privately, expected volatility is estimated based on the average historical volatility of similar entities with publicly traded shares. The risk-free rate for the expected term of the options is based on the U.S. Treasury yield curve at the date of grant. Expected term is estimated using the simplified method, which takes into account vesting and contractual term. The simplified method is being used to calculate expected term instead of historical experience due to a lack of relevant historical data resulting from changes in option vesting schedules and changes in the pool of employees receiving option grants. The following table summarizes option activity for the nine months ended September 30, 2021 (shares in thousands): Shares Price (1) Term (2) Options outstanding as of December 31, 2020 (2020 Plan) 1,942 $ 8.38 9.22 Options granted 546 $ 18.60 Options exercised (102) $ 8.20 Options forfeited (345) $ 8.67 Options outstanding as of September 30, 2021 (2020 Plan) 2,041 $ 11.08 8.85 (1) Represents the weighted average exercise price (2) Represents weighted average remaining contractual term 0.49 million shares of 2020 NSO grants were vested and outstanding as of September 30, 2021. The aggregated fair value of 0.55 million NSOs granted during the nine months ended September 30, 2021 was $4.0 million or $7.35 per share. The intrinsic value of the 2.0 million total outstanding shares of 2020 Plan Options as of September 30, 2021, was $37.0 million. The total unrecognized compensation expenses related to 2020 Stock Plan options as of September 30, 2021 was $6.9 million to be expensed on a straight-line basis over the remaining 2.97 years. Restricted Stock Units The RSUs granted to employees generally are subject to the following time-based vesting conditions: one-fourth vest on the first anniversary of the grant; and thereafter one-sixteenth of the RSUs will vest each subsequent three-month anniversary. RSUs granted do not participate in earnings, dividends, and do not have voting rights until vested. RSUs granted to the Board in lieu of the quarterly payments vest immediately. For the quarter ended September 30, 2021, approximately 0.08 million shares were issued upon vesting of the RSUs to the executives and 0.08 million shares were withheld to cover $2.1 million of employees’ tax obligations. The following table summarizes RSU activity for the nine months ended September 30, 2021(in thousands): Shares RSUs outstanding as of December 31, 2020 (2020 Plan) 2,996 RSUs granted 47 RSUs released (1,068) RSU forfeited (291) RSUs outstanding as of September 30, 2021 1,683 The total unrecognized compensation expenses related to 2020 Stock Plan RSUs as of September 30, 2021 was $13.6 million to be expensed on a straight-line basis over 1.9 years. Performance Stock Units On March 2, 2021, the Company granted 0.5 million Performance Stock target shares under the 2020 Stock Plan with the maximum payout capped at 300%. The performance goals for these grants consist of: 1) Year-over-year growth in non-retail revenue for the Performance Period, which is Fiscal Year 2021, expressed as a percentage increase over the fiscal year 2020 non-retail revenue (“Revenue Growth”), and 2) Contribution Margin for the Performance Period as a percentage of Non-Retail revenue for the Performance Period. Fifty percent (50%) of the target number of performance shares granted will vest (if at all) based on the extent of achievement of Revenue Growth for the Performance Period and the remaining fifty percent (50%) of the target number of performance shares granted will vest (if at all) based on the extent of achievement of the Contribution Margin. Additionally, 0.02 million shares of PSU were granted on June 16th, 2021, per a consulting agreement with a former executive with the performance goals being consistent with those described above. Performance shares will be certified and vested no later than March 1, 2022 with the payout shortly after. As of September 30, 2021, the Company assessed the vesting of the Performance Share Units as probable and the payout is estimated at 272% of the target goal. Stock-based compensation expense related to Performance Stock Units granted in 2021 was $13.1 million for the nine months ended September 30, 2021. The unrecognized expense for PSUs as of September 30, 2021, was $9.7 million. Stock-Based Compensation Expense The Company classifies awards issued under the stock-based compensation plans as equity. Total compensation expense for the three months ended September 30, 2021 and 2020 was $9.1 million and $5.1 million respectively. Employee stock-based compensation recognized was as follows (in thousands): Three months ended September 30, 2021 Nine months ended 2021 2020 2021 2020 Cost of revenue $ 173 $ 66 $ 433 $ 740 Engineering, research, and development 799 621 1,970 1,678 Sales and marketing 963 808 2,207 2,545 General and administrative 7,178 3,631 16,849 8,621 Total stock-based compensation $ 9,113 $ 5,126 $ 21,459 $ 13,584 As of September 30, 2021, there was approximately $30.3 million of unrecognized stock-based compensation expense.

Earnings per share

Earnings per share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Earnings per share	Earnings per share The Company computed earnings per share (“EPS”) in conformity with the two-class method required for participating securities. Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. The Company allocated income between its common and preferred shareholders only for the periods the preferred stock was outstanding, which was January 1, 2020 to March 4, 2020. There was no preferred stock outstanding from March 5, 2020 to September 30, 2021. As the Company was in a net loss position for the periods between January 1, 2020 to March 4, 2020 and March 5, 2020 to September 30, 2021, the net loss was allocated entirely to common shareholders. All participating securities are excluded from basic weighted-average number of common shares outstanding. Diluted EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, restricted stock units, performance stock units, warrants, and convertible preferred securities. The dilutive effect of potentially dilutive securities is reflected in diluted EPS in order of dilution and by application of the treasury stock method and the if-converted method for stock-based compensation and convertible preferred securities, respectively. The following table sets forth the computation of basic and diluted EPS of common stock as follows (in thousands except per share data): Three months ended Nine months ended 2021 2020 2021 2020 Numerator for basic and diluted loss per share Net loss $ (549) $ (1,117) $ (4,094) $ (7,879) Denominator for basic and diluted loss per share Weighted-average shares outstanding – basic and diluted 62,610 49,651 56,280 43,074 Net income/(loss) per share Basic $ (0.01) $ (0.02) $ (0.07) $ (0.18) Diluted $ (0.01) $ (0.02) $ (0.07) $ (0.18) The following table represents the number of share equivalents outstanding during the period that were excluded from the calculation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect. Three months ended Nine months ended Potential common shares (in ‘000s) 2021 2020 2021 2020 Convertible preferred stock — — — 1,048 Stock options to purchase common stock 6,486 6,467 7,088 8,676 Restricted stock units 1,840 2,963 3,042 2,993 Performance stock units 1,452 1,292 1,452 1,292 Warrants to purchase common stock 4,208 11,347 11,347 11,347 Total 13,986 22,069 22,929 25,356

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Legal Matters The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. Management evaluates each claim and provides for potential loss when the claim is probable to be paid and reasonably estimable. While adverse decisions in certain of these litigation matters, claims and administrative proceedings could have a material effect on a particular period’s results of operations, subject to the uncertainties inherent in estimating future costs for contingent liabilities, management believes that any future accruals with respect to these currently known contingencies would not have a material effect on the financial condition, liquidity or cash flows of the Company. There were no amounts required to be reflected in these consolidated financial statements related to contingencies.

Subsequent events

Subsequent events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent events	Subsequent eventsThe Company performed its subsequent event procedures through November 4, 2021, the date these condensed consolidated financial statements were issued. In October 2021 the Company finalized its Business Combination post-Close share adjustment. As a result of this additional 0.1 million shares were issued and 0.9 million shares were released from escrow. Please refer to Note 3 for details.

Basis of presentation and sum_2

Basis of presentation and summary of significant accounting policies (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP. Although ChaSerg was the legal acquirer, for accounting purposes, GDI was deemed to be the accounting acquirer. GDI was determined to be the accounting acquirer based on evaluation of the following facts and circumstances: • GDI holds executive management roles for the Company and those individuals are responsible for the day-to-day operations; • GDI’s former owners have the largest minority voting rights in the Company; • From a revenue and business operation standpoint, GDI was the larger entity in terms of relative size; • GDI’s San Ramon, CA headquarters are the headquarters of the Company; and • The intended strategy of the Company will continue GDI’s strategy of driving enterprise-level digital transformation in the Fortune 1000 companies. In conjunction with the Business Combination, outstanding shares of GDI were converted into common stock of the Company, par value $0.0001 per share, shown as a recapitalization, and the net assets of ChaSerg were acquired at historical cost, with no goodwill or other intangible assets recorded. GDI was deemed to be the predecessor of the Company, and the consolidated assets and liabilities and results of operations prior to the Closing (for the years ended December 31, 2019 and 2018 and the period from January 1, 2020 to March 5, 2020) are those of GDI. ChaSerg’s assets and liabilities, which include net cash from the trust of $85.1 million, and results of operations were consolidated with GDI beginning on the Closing. In accordance with guidance applicable to these circumstances, the equity structure has been restated in all comparative periods up to the Closing Date, to reflect the number of shares of the Company’s common stock, $0.0001 par value per share, issued to GDI shareholders in connection with the recapitalization transaction. As such, the shares and corresponding capital amounts and earnings per share related to GDI preferred and common stock prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio established in the Business Combination.
Principles of consolidation	Principles of consolidation The accompanying condensed financial statements include the accounts of the Company and all of its subsidiaries that are directly or indirectly owned or controlled. Intercompany transactions and balances have been eliminated upon consolidation.
Use of estimates	Use of estimates The preparation of the consolidated condensed financial statements in accordance with U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and such differences could be material. Significant estimates include allowances for receivables, calculation of accrued liabilities, capitalization of internally developed software, stock-based compensation, contingent consideration payable, determination of fair value, useful lives and recoverability of intangible assets and goodwill, determination of provision for income taxes and uncertain tax positions.
Certain significant risks and uncertainties	Certain significant risks and uncertainties The Company is subject to risks, including but not limited to customer concentration, concentrations of credit and foreign currency risks. Refer to the section below for additional information. Additionally, the Company has been impacted by the coronavirus (“COVID-19”) pandemic. The global pandemic of COVID-19 has negatively affected the U.S. and global economy, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to “shelter-in-place,” and created significant disruption of the financial market. In 2020 the COVID-19 pandemic impacted the Company’s revenues, and the Company’s business continues to be exposed to risks and uncertainties related to the pandemic. The impact of the COVID-19 pandemic had been more pronounced with the Company’s retail customers, which depended on keeping their stores open. Additionally, in situations where the Company’s customers encountered financial difficulties, there was a risk associated with the Company’s inability to collect money from customers. In 2020 the Company took several actions to deal with the COVID-19 pandemic. These included enabling its employees to work from home, company-wide salary and compensation cuts, hiring freezes, and suspending all non-essential travel. Some of these actions such as working from home as well as suspending all non-essential travel continues to be currently in place. As the Company's business recovered in 2021, the Company discontinued some of the cost saving measures such as compensation cuts and hiring freezes. The Company now is facing the opposite challenges including employee retention and shortage of talent on the job market. The ultimate impact and the extent to which the COVID-19 pandemic will continue to affect the business, results of operation and financial condition is difficult to predict and depends on numerous evolving factors outside of the Company’s control including: the duration and scope of the pandemic, including from renewed waves and new variants; government, social, business and other actions that have been and will be taken in response to the pandemic; and the effect of the pandemic on short and long-term general economic conditions.
Concentrations of credit risk and significant customers	Concentrations of credit risk and significant customersThe Company records its accounts receivable and unbilled receivables at their face amounts less allowances. Accounts receivable and unbilled receivables are generally dispersed across the Company’s customers in proportion to their revenue. Two customers individually exceeded 10% of the Company’s accounts receivable balance as of September 30, 2021 and three customers individually exceeded 10% of the Company’s accounts receivable balance as of December 31, 2020. Two customers individually exceeded 10% of the unbilled receivables as of September 30, 2021 and three customers individually exceeded 10% of the unbilled receivables as of December 31, 2020. Two customers individually accounted for greater than 10% of the sales for the three and nine months ended September 30, 2021 and 2020, respectively.
Cash and cash equivalents	Cash and cash equivalents The Company considers cash equivalents to be highly liquid investments with original maturities of three months or less from the date of purchase. Cash equivalents are stated at cost, which approximates fair value. At times, cash deposits with banks may exceed federally insured limits.
Accounts receivable and allowance for doubtful accounts	Accounts receivable and allowance for doubtful accountsAccounts receivable, less allowance for doubtful accounts, reflect the net realizable value of receivables and approximate fair value. The Company maintains an allowance against accounts receivable for the estimated probable losses on uncollectible accounts. The allowance is based upon historical loss experience, current economic conditions within the industries the Company serves as well as determination of the specific risk related to certain customers. Accounts receivable are charged off against the reserve when, in management’s estimation, further collection efforts would not result in a reasonable likelihood of receipt.
Unbilled receivables	Unbilled receivablesGenerally, the Company will not bill customers until the services have been completed. From time-to-time, a service period may overlap with a period-end and the unbilled receivables represent amounts for services performed through period-end, but not yet billed. The unbilled receivable represents the amount expected to be billed and collected for services performed through period-end in accordance with contract terms.
Goodwill	Goodwill Goodwill represents the excess of purchase price over the fair value of the net assets of businesses acquired. On an annual basis, the Company makes a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying amount, including goodwill. If the Company determines that the fair value of the reporting unit is less than its carrying amount, it will perform a quantitative analysis; otherwise, no further evaluation is necessary. For the quantitative impairment assessment, the Company compares the fair value of the reporting unit to its carrying value, including goodwill. The Company uses the discounted cash flow method of the income approach and market approach to determine the fair value of the reporting unit. If the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is not impaired, and no further testing is performed. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company will recognize a loss equal to the excess, limited to the total amount of goodwill allocated to that reporting unit. Impairments, if any, are charged directly to earnings. As of September 30, 2021, the Company has a single reporting unit and determined there were no indicators of impairment.
Intangible assets	Intangible assets Finite-lived intangible assets are stated at cost less accumulated amortization. Amortization is computed on the straight-line basis over the asset’s useful lives ranging between 2 and 12 years. Intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be fully recoverable. If facts and circumstances indicate that the carrying value might not be recoverable, projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives is compared against their respective carrying amounts. If an asset is found to be impaired, the impairment charge will be measured as the amount by which the carrying amount of an entity exceeds its fair value. As of September 30, 2021, the Company determined there were no indicators of impairment.
Revenue recognition	Revenue recognition The Company accounts for a contract with a customer when 1) the parties to the contract have approved the contract and are committed to performing their respective obligations, 2) the contract identifies each party’s rights regarding the goods or services to be transferred, 3) the contract identifies the payment terms for the goods or services to be transferred, 4) the contract has commercial substance, and 5) collection of substantially all consideration pursuant to the contract is probable. The Company derives its revenue from offering a suite of digital engineering and information technology (“IT”) consulting services, including digital transformation strategy, emerging technology, lean labs and legacy system replatforming. For most contracts, the Company uses master agreements to govern the overall relevant terms and conditions of the business arrangement between the Company and its customers. When the Company and a customer enter into a Master Services Agreement (“MSA”), purchases are generally made by the customer via a statement of work (“SOW”) which explicitly references the MSA and specifies the services to be delivered. Fees for these contracts may be in the form of time-and-materials or fixed-fee arrangements. The majority of the Company’s revenues are generated under time-and-material contracts which are billed using hourly rates to determine the amounts to be charged directly to the customer. Fees are billed and collected as stipulated in the contract, and revenue is recognized as services are performed. If there is an uncertainty about the receipt of payment for the services, revenue is recognized to the extent that a significant reversal of revenue would not be probable. Consulting services revenue is a single performance obligation earned through a series of distinct daily services and may include services such as those described above. The Company recognizes revenue for services over time as the customer simultaneously receives and consumes the benefits as the Company performs IT consulting services. For revenue contracts, the customer derives value from the Company providing daily consulting services, and the value derived corresponds to the labor hours expended. Therefore, the Company measures the progress and recognizes revenue using an effort-based input method. For fixed fee contracts, the Company recognizes revenue as the work is performed, the monthly calculation of which is based upon actual labor hours incurred and level of effort expended throughout the duration of the contract. For time-and-material contracts, the Company applies the variable consideration allocation exception. Therefore, instead of allocating the variable consideration to the entire performance obligation, the Company determined the variable consideration should be allocated to each distinct service to which the variable consideration relates, which is providing the customer daily consulting services. The Company also offers volume discounts or early settlement discounts. Volume discounts apply once the customer reaches certain contractual spend thresholds. Early settlement discounts are issued contingent upon the timing of the payment from the customer. If the consideration promised in a contract includes a variable amount, the Company only includes estimated amounts of consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. These estimates may require management to make subjective judgments and to make estimates about the effects of matters inherently uncertain. The determination of whether to constrain consideration in the transaction price are based on information (historical, current and forecasted) that is reasonably available to the Company, taking into consideration the type of customer, the type of transaction and the specific facts and circumstances of each arrangement. Although the Company believes that its approach in developing estimates and its reliance on certain judgments and underlying inputs is reasonable, actual results may differ from management’s estimates, judgments and assumptions. These estimates have historically not been material to the consolidated financial statements. Remaining performance obligation ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of September 30, 2021. This disclosure is not required for: 1) contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty, 2) contracts for which the Company recognizes revenues based on the right to invoice for services performed, 3) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or 4) variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property. All of the Company’s contracts met one or more of these exemptions as of September 30, 2021.
Stock-based compensation expense	Stock-based compensation expenseStock-based compensation expense is measured based on the grant-date fair value of the share-based awards. Forfeitures are recognized as incurred. The Company estimates stock options grant-date fair value using the Black-Scholes-Merton option pricing model. The model requires management to make a number of key assumptions including expected volatility, expected term, risk-free interest rate, and expected dividends. The Company evaluates the assumptions used to value its share-based awards on each grant date. The fair market value of Grid Dynamics stock is determined based on the closing price on NASDAQ on the measurement date. The Company amortizes the grant-date fair value of all share-based compensation awards over the employee’s requisite service period for the entire award on a straight-line basis, which is generally the vesting period. For an award with graded vesting that is subject only to a service condition (e.g., time-based vesting), the Company uses the straight-line attribution method under ASC 718 under which they recognize compensation cost on a straight-line basis over the total requisite service period for the entire award (i.e., over the requisite service period of the last separately-vesting tranche of the award). Additionally, the Company applies the “floor” concept so that the amount of compensation cost that is recognized as of any date is at least equal to the grant-date fair value of the vested portion of the award on that date. That is, if the straight-line expense recognized to date is less than the grant date fair value of the award that is legally vested at that date, the company will increase its recognized expense to at least equal the fair value of the vested amount.
Income taxes	Income taxes The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. The determination of the provision for income taxes requires significant judgment, the use of estimates and the interpretation and application of complex tax laws. The provision for income taxes reflects a combination of income earned and taxed in the various U.S. federal and state, international and other jurisdictions. Jurisdictional tax law changes, increases or decreases in permanent differences between book and tax items, accruals or adjustments of accruals for tax contingencies or valuation allowances, and the change in the mix of earnings from these taxing jurisdictions all affect the overall effective tax rate. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. Management considers all available evidence, both positive and negative, in determining whether a valuation allowance is required. Such evidence includes prior earnings history, the scheduled reversal of deferred tax liabilities, projected future taxable income, carryback and carryforward periods of tax attributes, and tax planning strategies that could potentially enhance the likelihood of realization of a deferred tax asset in making this assessment. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. The Company evaluates for uncertain tax positions at each balance sheet date. When it is more likely than not that a position will be sustained upon examination by a tax authority that has full knowledge of all relevant information, the Company measures the amount of tax benefit from the position and records the largest amount of tax benefit that is greater than 50% likely of being realized after settlement with a tax authority. The Company’s policy for interest and/or penalties related to underpayments of income taxes is to include interest and penalties in income tax expense.
Recently adopted accounting pronouncements and recently issued accounting pronouncements	Recently adopted accounting pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (the “FASB”), in the form of Accounting Standards Updates (“ASUs”), to the FASB’s ASC. The Company has elected not to opt out of the extended transition period and thus when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The update is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2020, and early adoption is permitted. The Company adopted the standard as of January 1, 2021 and has determined that the adoption of this guidance did not have a material effect on the consolidated financial statements. Recently issued accounting pronouncements The Company considered the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-2, Leases . ASU 2016-2 requires lessees to put most leases on their balance sheet while recognizing expense in a manner similar to existing accounting. ASU 2016-2 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard allows for two methods of adoption to recognize and measure leases: retrospectively to each prior period presented in the financial statements with the cumulative effect of initially applying the guidance recognized at the beginning of the earliest comparative period presented or retrospectively at the beginning of the period of adoption with the cumulative effect of initially applying the guidance recognized at the beginning of the period in which the guidance is first applied. Both adoption methods include a number of optional practical expedients that entities may elect to apply. The Company will adopt the standard retrospectively at the beginning of the period of adoption with the cumulative effect of initially applying the guidance recognized at the beginning of the period in which the guidance is first applied. The new accounting guidance is effective for the Company for fiscal periods beginning after December 15, 2021. The Company expects the impact to be material but has not yet determined the impact that the adoption of this guidance will have on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) — Measurement of Credit Losses on Financial Instruments . Topic 326 was subsequently amended by ASU 2019-4, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, ASU 2019-5, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief, and clarified the guidance with the release of ASU 2020-2 Financial Instruments—Credit Losses (Topic 326) and Leases (Topic 842). These ASUs replace the current incurred loss impairment methodology with a methodology that reflects expected credit losses measured at amortized cost and certain other instruments, including loans, held-to-maturity debt securities, net investments in leases, and off-balance sheet credit exposures. The update is effective for fiscal years beginning after December 15, 2022, and interim periods with fiscal years after December 15, 2022. The Company has not yet determined the impact that the adoption of this guidance will have on the consolidated financial statements. In March 2020, FASB issued ASU No. 2020-3, Codification to Financial Instruments. This ASU improves and clarifies various financial instruments topics, including the current expected credit losses standard issued in 2016. The ASU includes seven different issues that describe the areas of improvement and the related amendments to U.S. GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 3, Issue 4, and Issue 5 were effective upon issuance of this update. The new guidance did not have a material impact on the consolidated financial statements. The amendments related to Issue 6 and Issue 7 are effective for the Company the earlier of January 1, 2023 or when the Company adopts ASU 2016-13, if early adopted. The Company is currently evaluating the impact these topics will have on the consolidated financial statements.

Basis of presentation and sum_3

Basis of presentation and summary of significant accounting policies (Tables)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Schedule of accounts receivable and allowance for doubtful accounts	As of September 30, December 31, (in thousands) Trade accounts receivable $ 31,027 $ 17,308 Allowance for doubtful accounts (254) (418) Total trade accounts receivable, net $ 30,773 $ 16,890

Business combination (Tables)

Business combination (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of business acquisitions, by acquisition	The following represents the aggregate consideration for the Business Combination ( in thousands except for per share amount): Shares transferred at Closing 27,006 Less: Post-Closing share adjustment (857) Total shares transferred at Closing 26,149 Value per share $ 10.19 Total share consideration $ 266,459 Plus: Cash transferred to GDI stockholders 130,000 Closing merger consideration $ 396,459

Acquisition of Tacit Knowledg_2

Acquisition of Tacit Knowledge Inc. (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Schedule of business acquisition, assets acquired and liabilities assumed	The Company’s preliminary allocation of the purchase price to the net tangible and intangible assets acquired and liabilities assumed is as follows (in thousands): Fair market values Current assets (including $2,967 of cash) $ 9,145 Property, plant and equipment 466 Customer relationships 11,737 Tradename 1,176 Goodwill 20,603 Total assets acquired $ 43,127 Accounts payable and accrued expenses $ (3,675) Deferred taxes (2,500) Total liabilities assumed $ (6,175) Purchase price allocation $ 36,952
Schedule of business acquisition, finite-lived intangibles	The preliminary fair value of identifiable intangible assets as of the date of acquisition is as follows: (In thousands) Fair Value Useful Life Amortization Customer relationships $ 11,737 12 years Straight-line Tacit tradename 1,176 4 years Accelerated Total identified intangible assets $ 12,913
Schedule of business acquisition, pro forma information	These pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations as they would have been had the acquisitions occurred on the assumed dates, nor are they necessarily an indication of future operating results. Nine Months Ended (Unaudited) 2021 2020 Revenue $ 152,775 $ 92,462 Net loss $ (2,304) $ (8,156) Diluted loss per share $ (0.04) $ (0.19)

Property and equipment, net (Ta

Property and equipment, net (Tables)	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consist of the following (in thousands): Estimated As of September 30, December 31, Computers and equipment 2-5 $ 9,241 $ 6,447 Machinery and automobiles 5 631 551 Furniture and fixtures 3-7 1,012 643 Software 5 513 554 Leasehold improvements 3-12 526 236 11,923 8,430 Less: Accumulated depreciation and amortization (7,798) (5,622) 4,125 2,809 Capitalized software development costs 2-3 4,394 3,531 Less: Accumulated amortization (3,124) (2,245) 1,270 1,287 Property and equipment, net $ 5,395 $ 4,095

Intangible assets, net (Tables)

Intangible assets, net (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible assets	Intangible assets consist of the following (in thousands): Estimated As of September 30, December 31, Customer relationships 8-12 $ 15,971 $ 4,234 Tradename 4-10 4,676 3,500 Non-compete agreements 2 440 440 21,087 8,174 Less: Accumulated amortization (1,358) (49) Intangible assets, net $ 19,729 $ 8,125

Other current liabilities (Tabl

Other current liabilities (Tables)	9 Months Ended
	Sep. 30, 2021
Other Liabilities, Current [Abstract]
Schedule of other current liabilities	The components of other current liabilities were as follows (in thousands): As of September 30, 2021 December 31, 2020 Customer deposits $ 781 $ 731 Other liabilities 2,068 528 Contingent consideration payable 4,926 1,947 Total other current liabilities $ 7,775 $ 3,206

Stock-based compensation (Table

Stock-based compensation (Tables)	9 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of conversion of the vested and unvested options	The following table sets forth the activity for the 2018 Stock Plan, including the conversion of the vested and unvested options, for the nine months ended September 30, 2021: Options Balance at December 31, 2019 2,734 Cashed out (829) Forfeited (19) Balance at March 31, 2020 (prior to exchange ratio conversion) 1,887 Converted vested balance 4,314 Converted unvested balance 364 Balance at March 6, 2020 (post to exchange ratio conversion) 4,678 Exercised in 2020 (28) Forfeited/Cancelled in 2020 (50) Options Outstanding as of December 31, 2020 4,600 Exercised in quarter ended March 31, 2021 (37) Forfeited/Cancelled in quarter ended March 31, 2021 (11) Options Outstanding as of March 31, 2021 4,552 Exercised in quarter ended June 30, 2021 (257) Forfeited/Cancelled in quarter ended June 30, 2021 (3) Options Outstanding as of June 30, 2021 4,291 Exercised in quarter ended September 30, 2021 (687) Forfeited/Cancelled in quarter ended September 30, 2021 (1) Options Outstanding as of September 30, 2021 3,603
Schedule of share-based payment arrangement activity	The following table represent the number of shares available for grants from 2020 Equity Incentive Plan (in thousands): Available Available for grant, December 31, 2020 9,881 Options granted (546) RSU granted (47) PSU granted (100% target) (566) Options, RSUs, and PSUs forfeited 669 Traded for taxes (returned to the pool) 1,513 Available for grant, September 30, 2021 10,904
Schedule of estimated grant using the black-scholes	The key assumptions for 2021 grants are provided in the following table. 2021 Dividend yield 0 % Expected volatility 40 % Risk-free interest rate 0.87 % Expected term in years 6.11 Grant date fair value of common stock $ 18.60
Schedule of option activity	The following table summarizes option activity for the nine months ended September 30, 2021 (shares in thousands): Shares Price (1) Term (2) Options outstanding as of December 31, 2020 (2020 Plan) 1,942 $ 8.38 9.22 Options granted 546 $ 18.60 Options exercised (102) $ 8.20 Options forfeited (345) $ 8.67 Options outstanding as of September 30, 2021 (2020 Plan) 2,041 $ 11.08 8.85 (1) Represents the weighted average exercise price
Schedule of restricted stock unit activity	The following table summarizes RSU activity for the nine months ended September 30, 2021(in thousands): Shares RSUs outstanding as of December 31, 2020 (2020 Plan) 2,996 RSUs granted 47 RSUs released (1,068) RSU forfeited (291) RSUs outstanding as of September 30, 2021 1,683
Schedule of employee stock-based compensation recognized	Employee stock-based compensation recognized was as follows (in thousands): Three months ended September 30, 2021 Nine months ended 2021 2020 2021 2020 Cost of revenue $ 173 $ 66 $ 433 $ 740 Engineering, research, and development 799 621 1,970 1,678 Sales and marketing 963 808 2,207 2,545 General and administrative 7,178 3,631 16,849 8,621 Total stock-based compensation $ 9,113 $ 5,126 $ 21,459 $ 13,584

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted EPS of common stock as follows (in thousands except per share data): Three months ended Nine months ended 2021 2020 2021 2020 Numerator for basic and diluted loss per share Net loss $ (549) $ (1,117) $ (4,094) $ (7,879) Denominator for basic and diluted loss per share Weighted-average shares outstanding – basic and diluted 62,610 49,651 56,280 43,074 Net income/(loss) per share Basic $ (0.01) $ (0.02) $ (0.07) $ (0.18) Diluted $ (0.01) $ (0.02) $ (0.07) $ (0.18)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table represents the number of share equivalents outstanding during the period that were excluded from the calculation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect. Three months ended Nine months ended Potential common shares (in ‘000s) 2021 2020 2021 2020 Convertible preferred stock — — — 1,048 Stock options to purchase common stock 6,486 6,467 7,088 8,676 Restricted stock units 1,840 2,963 3,042 2,993 Performance stock units 1,452 1,292 1,452 1,292 Warrants to purchase common stock 4,208 11,347 11,347 11,347 Total 13,986 22,069 22,929 25,356

Background and nature of oper_2

Background and nature of operations (Details)	Sep. 30, 2021$ / shares
Accounting Policies [Abstract]
Exercise price (in dollars per share)	$ 11.50

Basis of presentation and sum_4

Basis of presentation and summary of significant accounting policies - Narrative (Details) $ / shares in Units, $ in Thousands	Mar. 05, 2020USD ($)$ / shares	Sep. 30, 2021USD ($)customer$ / shares	Sep. 30, 2020customer	Sep. 30, 2021USD ($)customerreportingUnit$ / shares	Sep. 30, 2020customer	Dec. 31, 2020USD ($)customer$ / shares
Concentration Risk [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001	$ 0.0001		$ 0.0001		$ 0.0001
Cash proceeds from trust account | $	$ 85,100
Allowance for doubtful accounts | $		$ 254		$ 254		$ 418
Unbilled receivables | $		$ 4,883		$ 4,883		$ 1,799
Number of reporting units | reportingUnit				1
Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Number of major customers | customer				2		3
Unbilled Receivables | Customer Concentration Risk
Concentration Risk [Line Items]
Number of major customers | customer				2		3
Sales | Customer Concentration Risk
Concentration Risk [Line Items]
Number of major customers | customer		2	2	2	2
Minimum
Concentration Risk [Line Items]
Intangible assets useful life				2 years
Maximum
Concentration Risk [Line Items]
Intangible assets useful life				12 years

Basis of presentation and sum_5

Basis of presentation and summary of significant accounting policies - Schedule of accounts receivable and allowance for doubtful accounts (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Trade accounts receivable	$ 31,027	$ 17,308
Allowance for doubtful accounts	(254)	(418)
Total trade accounts receivable, net	$ 30,773	$ 16,890

Business combination - Addition

Business combination - Additional Information (Details) $ / shares in Units, shares in Thousands, $ in Thousands	Mar. 05, 2020USD ($)$ / sharesshares	Sep. 30, 2021$ / shares	Dec. 31, 2020$ / shares
Business Acquisition [Line Items]
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001	$ 0.0001	$ 0.0001
Acquisition related costs | $	$ 4,700
Additional Paid-In-Capital, Reduction Of Proceeds
Business Acquisition [Line Items]
Acquisition related costs | $	4,100
General and administrative
Business Acquisition [Line Items]
Acquisition related costs | $	$ 600
ChaSerg
Business Acquisition [Line Items]
Stock redeemed, price per share (in usd per share) | $ / shares	$ 10.21
GDI | ChaSerg
Business Acquisition [Line Items]
Number of common stock shares acquired (in shares)	50,800
Common stock, par value (in dollars per share) | $ / shares	$ 0.0001
Number of warrants acquired (in shares)	11,300
Consideration transferred | $	$ 396,459
Payments to acquire business | $	$ 130,000
Shares transferred at closing (in shares)	27,006
Price per share (in usd per share) | $ / shares	$ 10.19
Post closing share adjustment (in shares)	857
Options, vested, outstanding and unexercised (in shares)	4,300
Earnout shares vested (in shares)	1,700
Options, vested, exchange ratio	248.00%
Options, nonvested, outstanding and unexercised (in shares)	400
Earnout shares, nonvested (in shares)	100
Options, nonvested, exchange ratio	248.00%
Stock redeemed (in shares)	100
GDI | ChaSerg | Adjustment
Business Acquisition [Line Items]
Exchange ratio	1.685
2017 Acquisition | Cost Of Revenue and Operating Expenses
Business Acquisition [Line Items]
Acquisition related costs | $	$ 3,400

Business combination - Schedule

Business combination - Schedule of consideration for business combination (Details) - GDI - ChaSerg $ / shares in Units, shares in Thousands, $ in Thousands	Mar. 05, 2020USD ($)$ / sharesshares
Business Acquisition [Line Items]
Shares transferred at closing (in shares) | shares	27,006
Less: Post-Closing share adjustment (in shares) | shares	(857)
Total shares transferred at closing (in shares) | shares	26,149
Value per share (in usd per share) | $ / shares	$ 10.19
Total share consideration | $	$ 266,459
Plus: Cash transferred to GDI stockholders | $	130,000
Closing merger consideration | $	$ 396,459

Acquisition of Tacit Knowledg_3

Acquisition of Tacit Knowledge Inc. - Narrative (Details) $ in Thousands	May 29, 2021USD ($)employee	Mar. 05, 2020USD ($)	Sep. 30, 2021USD ($)	Dec. 31, 2020USD ($)	Sep. 30, 2020USD ($)
Business Acquisition [Line Items]
Contingent consideration for acquisition of businesses			$ 2,979		$ 0
Goodwill			35,358	$ 14,690
Acquisition related costs		$ 4,700
Tactic Knowledge Inc.
Business Acquisition [Line Items]
Percentage of voting interests acquired	100.00%
Number of employees acquired | employee	180
Consideration transferred	$ 37,000
Payments to acquire business	33,600
Contingent consideration for acquisition of businesses	3,400
Maximum contingent consideration	$ 5,000
Estimated future operating results period	12 months
Goodwill	$ 20,603
Pro forma information, revenue of acquiree			9,500
Pro forma information, earnings of acquiree			$ 1,700
Acquisition related costs	$ 600

Acquisition of Tacit Knowledg_4

Acquisition of Tacit Knowledge Inc. - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2021	May 29, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 35,358		$ 14,690
Tactic Knowledge Inc.
Business Acquisition [Line Items]
Current assets (including $2,967 of cash)		$ 9,145
Property, plant and equipment		466
Identified intangible assets		12,913
Goodwill		20,603
Total assets acquired		43,127
Accounts payable and accrued expenses		(3,675)
Deferred taxes		(2,500)
Total liabilities assumed		(6,175)
Purchase price allocation		36,952
Cash and cash equivalents		2,967
Tactic Knowledge Inc. | Customer relationships
Business Acquisition [Line Items]
Identified intangible assets		11,737
Tactic Knowledge Inc. | Tradename
Business Acquisition [Line Items]
Identified intangible assets		$ 1,176

Acquisition of Tacit Knowledg_5

Acquisition of Tacit Knowledge Inc. - Intangible assets acquired (Details) - Tactic Knowledge Inc. $ in Thousands	May 29, 2021USD ($)
Business Acquisition [Line Items]
Total identified intangible assets	$ 12,913
Customer relationships
Business Acquisition [Line Items]
Total identified intangible assets	$ 11,737
Useful Life	12 years
Tradename
Business Acquisition [Line Items]
Total identified intangible assets	$ 1,176
Useful Life	4 years

Acquisition of Tacit Knowledg_6

Acquisition of Tacit Knowledge Inc. - Pro forma information (Details) - Tactic Knowledge Inc. - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Revenue	$ 152,775	$ 92,462
Net loss	$ (2,304)	$ (8,156)
Diluted loss per share (in usd per share)	$ (0.04)	$ (0.19)

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 5,395	$ 4,095
Property, Plant and Equipment, Excluding Capitalized Software Costs
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,923	8,430
Less: Accumulated depreciation and amortization	(7,798)	(5,622)
Property and equipment, net	4,125	2,809
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 9,241	6,447
Computers and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	2 years
Computers and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	5 years
Machinery and automobiles
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	5 years
Property and equipment, gross	$ 631	551
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,012	643
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	7 years
Software
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	5 years
Property and equipment, gross	$ 513	554
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 526	236
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	3 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	12 years
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,394	3,531
Less: Accumulated depreciation and amortization	(3,124)	(2,245)
Property and equipment, net	$ 1,270	$ 1,287
Capitalized software development costs | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	2 years
Capitalized software development costs | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (In Years)	3 years

Intangible assets, net (Details

Intangible assets, net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 21,087	$ 8,174
Less: Accumulated amortization	(1,358)	(49)
Intangible assets, net	$ 19,729	8,125
Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (In Years)	2 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (In Years)	12 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 15,971	4,234
Customer relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (In Years)	8 years
Customer relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (In Years)	12 years
Tradename
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 4,676	3,500
Tradename | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (In Years)	4 years
Tradename | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (In Years)	10 years
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (In Years)	2 years
Intangible assets, gross	$ 440	$ 440

Other current liabilities - Sch

Other current liabilities - Schedule of other current liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Other Liabilities, Current [Abstract]
Customer deposits	$ 781	$ 731
Other liabilities	2,068	528
Contingent consideration payable	4,926	1,947
Total other current liabilities	$ 7,775	$ 3,206

Other current liabilities - Nar

Other current liabilities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	May 29, 2021	Dec. 14, 2020	Sep. 30, 2020
Other Liabilities [Line Items]
Contingent consideration for acquisition of businesses	$ 2,979			$ 0
Other Current Liabilities
Other Liabilities [Line Items]
Due to related parties	1,100
Daxx
Other Liabilities [Line Items]
Contingent consideration for acquisition of businesses			$ 1,900
Daxx | Other Income (Expense)
Other Liabilities [Line Items]
Change in contingent consideration	$ 400
Tactic Knowledge Inc.
Other Liabilities [Line Items]
Contingent consideration for acquisition of businesses		$ 3,400

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Examination [Line Items]
Income tax expense (benefit)	$ 2,633	$ (99)	$ 4,655	$ (3,594)
Effective tax rate, percentage	126.30%	8.10%	829.80%	31.30%
United Kingdom
Income Tax Examination [Line Items]
Discrete tax expense			$ 500

Stockholders' equity (Details)

Stockholders' equity (Details)

Jul. 28, 2021USD ($)$ / sharesshares

Jul. 26, 2021USD ($)shares

Jul. 06, 2021USD ($)$ / sharesshares

Mar. 29, 2021shares

Mar. 02, 2021shares

Jan. 20, 2021shares

Dec. 31, 2020$ / sharesshares

Sep. 30, 2021USD ($)$ / sharesshares

Sep. 30, 2020USD ($)

Aug. 30, 2021$ / sharesshares

Mar. 05, 2021shares

Mar. 05, 2020$ / shares

Dec. 31, 2019$ / sharesshares

Stockholders' equity (Details) [Line Items]

Common stock, shares authorized (in shares)

110,000,000

110,000,000

Common stock, shares issued (in shares)

50,878,780

65,121,241

Common stock, shares outstanding (in shares)

50,878,780

65,121,241

Sale of stock, price per share (in dollars per share) | $ / shares

$ 15.03

Common stock, par value (in dollars per share) | $ / shares

$ 0.0001

$ 0.0001

$ 0.0001

Proceeds from exercise of public warrants | $

$ 48,145,000

$ 0

Exercise price (in dollars per share) | $ / shares

$ 11.50

GDI

Stockholders' equity (Details) [Line Items]

Preferred stock shares, outstanding (in shares)

1,000,000

Preferred shares, par value (in dollars per share) | $ / shares

$ 0

Preferred stock, conversion ratio

1

Common stock, par value (in dollars per share) | $ / shares

$ 0.0001

Follow On Public Offering

Stockholders' equity (Details) [Line Items]

Sale of stock, number of shares issued in transaction (in shares)

11,600,000

Follow On Public Offering - Shares From Parent

Stockholders' equity (Details) [Line Items]

Sale of stock, number of shares issued in transaction (in shares)

5,500,000

Sale of stock, consideration received on transaction | $

$ 78,300,000

Follow On Public Offering - Shares From Selling Shareholders

Stockholders' equity (Details) [Line Items]

Sale of stock, number of shares issued in transaction (in shares)

6,100,000

Sale of stock, consideration received on transaction | $

$ 0

Earnout Shares

Stockholders' equity (Details) [Line Items]

Shares issued subject to earnout provisions (in shares)

1,200,000

Contingent earnout shares expected to vest, threshold trading term

20 days

Contingent earnout shares expected to vest, trading period

30 days

Earnout shares vested (in shares)

400,001

400,000

399,999

0

Earnout Shares One

Stockholders' equity (Details) [Line Items]

Contingent earnout shares expected to vest (in shares)

399,999

Contingent earnout shares expected to vest, exercise price (in dollars per share) | $ / shares

$ 12

Earnout Shares Two

Stockholders' equity (Details) [Line Items]

Contingent earnout shares expected to vest (in shares)

400,000

Contingent earnout shares expected to vest, exercise price (in dollars per share) | $ / shares

$ 13.50

Earnout Shares Three

Stockholders' equity (Details) [Line Items]

Contingent earnout shares expected to vest (in shares)

400,001

Contingent earnout shares expected to vest, exercise price (in dollars per share) | $ / shares

$ 15

Public Warrant

Stockholders' equity (Details) [Line Items]

Warrants exercised (in shares)

2,750,000

1,400,000

Proceeds from exercise of public warrants | $

$ 31,700,000

$ 16,400,000

Warrants outstanding (in shares)

2,800,000

0

Redemption price (in dollars per share) | $ / shares

$ 0.01

Exercise price (in dollars per share) | $ / shares

$ 11.50

Warrants redeemed (in shares)

19,744

Private Warrant

Stockholders' equity (Details) [Line Items]

Warrants outstanding (in shares)

0

Common Stock

Stockholders' equity (Details) [Line Items]

Common stock, shares authorized (in shares)

110,000,000

Common stock, shares issued (in shares)

50,800,000

Common stock, shares outstanding (in shares)

65,100,000

Stock-based compensation - 2018

Stock-based compensation - 2018 Stock Plan - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Mar. 05, 2020	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Mar. 31, 2020	Mar. 06, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercises of stock options, net of shares withheld for taxes					$ 619	$ 78
2018 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accelerated vesting. number of shares (in shares)	2,600
Accelerated cost	$ 2,500
Stock options vested (in shares)	1,700
Shares options nonvested (in shares)	100
Exercise price range, lower limit (in dollars per share)					$ 3.51
Exercise price range, upper limit (in dollars per share)					$ 3.54
Options forfeited (in shares)					70
Exercise of stock options (in shares)		687	257	37	1,010		28
Proceeds from exercises of stock options, net of shares withheld for taxes					$ 2,100
Number of shares exercisable (in shares)		3,500			3,500
Average exercise price of shares exercisable (in dollars per share)		$ 3.54			$ 3.54
Options outstanding (in shares)		3,603	4,291	4,552	3,603		4,600	1,887	4,678	2,734
Options outstanding, intrinsic value		$ 92,500			$ 92,500
Remaining contractual term					7 years 2 months 23 days
2018 Stock Plan | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld (in shares)					250
Unrecognized compensation expense, options		$ 200			$ 200
Period for recognition					1 year 11 months 4 days

Stock-based compensation - Sche

Stock-based compensation - Schedule of conversion of the vested and unvested options (Details) - 2018 Stock Plan - shares shares in Thousands	Mar. 06, 2020	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2021	Dec. 31, 2020
Shares
Options outstanding, beginning balance (in shares)		4,291	4,552	4,600	2,734	4,600	4,678
Cashed out (in shares)					(829)
Forfeitures / cancelled in period (in shares)		(1)	(3)	(11)	(19)		(50)
Converted vested balance (in shares)	4,314
Converted unvested balance (in shares)	364
Exercised in period (in shares)		(687)	(257)	(37)		(1,010)	(28)
Options outstanding, ending balance (in shares)	4,678	3,603	4,291	4,552	1,887	3,603	4,600

Stock-based compensation - 2020

Stock-based compensation - 2020 Equity Incentive Plan - Narrative (Details) - 2020 Equity Incentive Plan - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Mar. 05, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)			16,300,000
Options granted (in shares)		546,000
Non-Statutory Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	320,000	550,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	40,000

Stock-based compensation - Sc_2

Stock-based compensation - Schedule of awards available for grant (Details) - shares shares in Thousands	Jun. 16, 2021	Mar. 02, 2021	Sep. 30, 2021	Sep. 30, 2021
Restricted stock units
Shares
Non-option awards granted (in shares)				(47)
Performance stock units
Shares
Non-option awards granted (in shares)	(20)
2020 Equity Incentive Plan
Shares
Available for grant, beginning balance (in shares)				9,881
Options granted (in shares)				(546)
Options, RSUs, and PSUs forfeited (in shares)				669
Traded for taxes (returned to the pool) (in shares)				1,513
Available for grant, ending balance (in shares)			10,904	10,904
2020 Equity Incentive Plan | Restricted stock units
Shares
Options granted (in shares)			(40)
Non-option awards granted (in shares)				(47)
2020 Equity Incentive Plan | Performance stock units
Shares
Non-option awards granted (in shares)		(500)		(566)

Stock-based compensation - Stoc

Stock-based compensation - Stock Options - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)shares	Sep. 30, 2021USD ($)$ / sharesshares
2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares) | shares		546
Total outstanding shares (in shares)	$ 2	$ 2
Options outstanding, intrinsic value	37	37
Unrecognized compensation expense, options	$ 6.9	$ 6.9
Period for recognition		2 years 11 months 19 days
Non-Statutory Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield		0.00%
Grant date fair value of common stock (in dollars per share) | $ / shares		$ 18.60
Non-Statutory Stock Options | 2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares) | shares	320	550
Exercise term	10 years
Options vested and outstanding (in shares) | shares		490
Options granted, fair value		$ 4
Grant date fair value of common stock (in dollars per share) | $ / shares		$ 7.35
Non-Statutory Stock Options | 2020 Equity Incentive Plan | One year after the grant date
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		25.00%
Non-Statutory Stock Options | 2020 Equity Incentive Plan | Subsequent three-month anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage		6.25%

Stock-based compensation - Sc_3

Stock-based compensation - Schedule of estimated grant using the Black-Scholes (Details) - Non-Statutory Stock Options	9 Months Ended
	Sep. 30, 2021$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%
Expected volatility	40.00%
Risk-free interest rate	0.87%
Expected term in years	6 years 1 month 9 days
Grant date fair value of common stock (in dollars per share)	$ 18.60

Stock-based compensation - Sc_4

Stock-based compensation - Schedule of option activity (Details) - 2020 Equity Incentive Plan - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Shares
Options outstanding, beginning balance (in shares)	1,942
Options granted (in shares)	546
Options exercised (in shares)	(102)
Options forfeited (in shares)	(345)
Options outstanding, ending balance (in shares)	2,041	1,942
Price
Options outstanding, beginning balance (in dollars per share)	$ 8.38
Options granted (in shares)	18.60
Options exercised (in dollars per share)	8.20
Options forfeited (in dollars per share)	8.67
Option outstanding, ending balance (in dollars per share)	$ 11.08	$ 8.38
Term
Options outstanding (in years)	8 years 10 months 6 days	9 years 2 months 19 days

Stock-based compensation - Rest

Stock-based compensation - Restricted Stock Units - Narrative (Details) - 2020 Equity Incentive Plan shares in Thousands, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021USD ($)shares	Sep. 30, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition		2 years 11 months 19 days
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued upon vesting (in shares) | shares	80
Shares withheld (in shares) | shares	80
Tax withholding obligation | $	$ 2.1
Unrecognized compensation expense, excluding options | $	$ 13.6	$ 13.6
Period for recognition		1 year 10 months 24 days

Stock-based compensation - Sc_5

Stock-based compensation - Schedule of restricted stock unit activity (Details) - Restricted stock units shares in Thousands	9 Months Ended
	Sep. 30, 2021shares
Shares
Outstanding, beginning balance (in shares)	2,996
Granted (in shares)	47
Released (in shares)	(1,068)
Forfeited (in shares)	(291)
Outstanding, ending balance (in shares)	1,683

Stock-based compensation - Perf

Stock-based compensation - Performance Stock Units - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	Jun. 16, 2021	Mar. 02, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 9,113	$ 5,126	$ 21,459	$ 13,584
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	20
Estimated payout percentage			272.00%		272.00%
Share-based compensation expense					$ 13,100
Unrecognized compensation expense, excluding options			$ 9,700		$ 9,700
Performance stock units | 2020 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		500			566
Maximum payout, percentage		300.00%
Vesting percentage, revenue growth					50.00%
Vesting percentage, contribution margin					50.00%

Stock-based compensation - Sc_6

Stock-based compensation - Schedule of Employee stock-based compensation recognized (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 9,113	$ 5,126	$ 21,459	$ 13,584
Unrecognized stock-based compensation expense	30,300		30,300
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	173	66	433	740
Engineering, research, and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	799	621	1,970	1,678
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	963	808	2,207	2,545
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Share-based compensation expense	$ 7,178	$ 3,631	$ 16,849	$ 8,621

Earnings per share - Schedule o

Earnings per share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator for basic and diluted loss per share
Net loss	$ (549)	$ (1,483)	$ (2,062)	$ (1,117)	$ (2,166)	$ (4,596)	$ (4,094)	$ (7,879)
Weighted average number of shares outstanding - basic (in shares)	62,610			49,651			56,280	43,074
Weighted average number of shares outstanding - diluted (in shares)	62,610			49,651			56,280	43,074
Net income/(loss) per share
Basic (in dollars per share)	$ (0.01)			$ (0.02)			$ (0.07)	$ (0.18)
Diluted (in dollars per share)	$ (0.01)			$ (0.02)			$ (0.07)	$ (0.18)

Earnings per share - Schedule_2

Earnings per share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	13,986	22,069	22,929	25,356
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0	0	1,048
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	6,486	6,467	7,088	8,676
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,840	2,963	3,042	2,993
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,452	1,292	1,452	1,292
Warrants to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	4,208	11,347	11,347	11,347

Subsequent events (Details)

Subsequent events (Details) - GDI - ChaSerg - shares shares in Thousands	Mar. 05, 2020	Oct. 31, 2021
Subsequent Event [Line Items]
Business acquisition, number of shares issued (in shares)	26,149
Subsequent Event
Subsequent Event [Line Items]
Business acquisition, number of shares issued (in shares)		100
Shares released from escrow (in shares)		900