GDYN - Earnings call transcript Q2 2021 | Grid Dynamics Holdings, Inc.

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Operator

Welcome to the Grid Dynamics Holdings Inc.

Second Quarter 2021 Earnings Call.

As a remainder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions] I would now like to turn the conference over to Lilia Chernova, Head of Investor Relations. ahead. go Please

Lilia Chernova

to Call. Welcome Second XXXX Quarter Good Grid Conference Earnings afternoon. Dynamics'

Before that and expectations, remind contain me Dynamics forward-looking financial we let begin, statements. of growth everyone as our quarter based Grid well our guidance other the including our forward-looking on today's strategies, current beliefs, assumptions, objectives and business, third XXXX business statements will discussion as

the SEC company's today to All that the occur our call. information on filed disclosure earnings of press update we and events refer end X-K made release expectations no can current statements You with statements will forward-looking obligation any the the for about be this reflect reflect that to after Form and them at of only undertake made will today, call. this to

filed risk section more You our the results the to can learn discussion periodic the reports the materially the of company Risk and company's May actual that files SEC. about in that cause with today's XX-Q X, from XXXX on differ in Factors subsequent could factors specific Form

will filed we The is financial in discuss information also press by provided non-GAAP the performance. GAAP measures call, SEC. to and non-GAAP are this During the and our webcast. release supplemental with about the financial X-K reconciliations certain available call

Dynamics find information, Grid Investor website. I of all can section You have the just in Relations described

Doradla. on today Livschitz; call CFO, are the us Anil Leonard Joining CEO, and

the will remarks, turn prepared their your open call we to Leonard. the that, questions. to Following me call With over let

Leonard Livschitz

am with second you this for months results quarter and our front, speaking highlights our fronts. our quarter trends with the our you that quarter We Lili. joining results, Consistent business across a we across I that provide afternoon, results, provided and excited great call our are three guidance all us. shaping third to all what update shaping everyone, will about since three you, demand with on for we positive On quarter you you to trends witnessing second were progress, talk ago, XXXX. to Good and ago. today, you the Thank strong and on are our share I thank comment many the months multiple had

environment industry customers More the to this services the increasingly backdrop and our demand of digital current Digital continues a strong verticals. is the has seeking robust central importantly, transformation for a year. and theme be for across remainder transformation different projects, strategic positive

all million of am XX revenues our million. accomplished. improved And thank employees like would what record organic $XX our Now, we doubled I I the history. I quarter we than company's to the more of coming as in margins. our $XX substantially months, the very reporting highest And well. to in quarter, range higher to for In and revenue pleased we ones. proud in their guidance company's and the of very our was $X.X share Moreover, to results, $XX.X There performance am second I in you the for second our revenues work many Tacit to of is revenue of Knowledge. grew it million, from hard were with trust customers some trends QX. the In revenue and want the is and Daxx quarter excluding all of and report a our organically the highest also their organic dedication, their This quarter, in history Grid acquisitions positive notable Dynamics. recent million

been improving quarter customers, second has spending the with who and held in the last with same a Like way our consumer guidance. are while combined quarter, verticals, back to some the in exceeded XXXX as relative in we across sentiment quarter. catch key outperformance our last We strength the it's robust our witnessing has highlighted trends expectation, of discontinuation that demand The evident reason. all in up our

More importantly, engagements. pipeline, new favorable Based business of XXXX. see transformation digital on customers for bullish business become a essential. as We more remain remainder in our existing spending, expansion we customer of initiatives the IT trend aggressive are with the

was profitability the than greater It combination by tailwinds. business front, by execution accomplished even On aided our good outperformance expected. a was favorable of

long-term More of importantly, non-GAAP and we achieved XX% our gross margin target XX% EBITDA.

witnessing training help hiring the we delivering persist in program, Demand talent strong offshore constraints, for into the COVID-related is investing a retraining This some trend engineering highlighted supply quarter. geographies. quarter, To favorable Dynamics internship the new of something, universal and and our since of During an employees, from expand such industry-wide stronger-than-expected already with us Grid margin aggressive benefited year. beginning mix in a quarter. continue we savings still remains last side that and

the second headcount we XXX of quarter, added X,XXX total During people, a employees. our exceeded

and over with Tacit strong and CPG built logo and high in Kingdom, a During transaction. focuses quarter, Tacit has organic revenue of one with a of is companies wellness, contributing in company's the company system. the retail of in the made a them of based same five in Out fintech, our is during and reputation May acquisition the with Moldova e-commerce acquisition are the Tacit space. cost The our cloud-based capabilities, we with The Knowledge XXX. mark all primary enterprises mobile On XX, Mexico. an was total we time one delivery and new the the Including the all-cash locations five are dynamic recent a the provider technology logos added large in and management Daxx organic our end count customer the like in business, quarter two one specialized on industry quarter. global in United consultant of final clients business leading the the announced UK a the cloud enterprise secure communications, has is Knowledge,

areas SAP commerce capabilities others. expertise our our Europe enterprise – digital were new of and deepen commerce presence our synergies, for with market tools, the the Regarding reasons enhance and acquisition key to in as to commerce hybrids

Tacit, Mexico, have presence leverage in now acquisition the initial an with we of we Additionally, to expect which expand over time. the

looking top partnership Dynamics we of happy and Google new Tacit. two are logos, implementation existing I Google cross-selling with to growing acquisition clients same Grid Cloud in an driven up to the opening a renting working are by issued implement Knowledge Retail. are work five was with with XX%. Last ago. excited deeper Grid are excited was as retail combination Daxx. about our clients and together. continued interest success Tacit and partner XX% We TMT opportunity platforms in the from releases continue Tacit Dynamics the also The diversification with and of very week customer times with and Within Google. forward in in core revenues from our have press customers that year to revenues the separate search recent five highlighted that were largely down Grid Tacit announcement Google deeper am the build in our a Google's cloud retail. the announce for by to Dynamics Grid Earning with selected will am for quarter being express business of to in of Dynamics exciting two two This retail. joining I space, clients, and quarter team were one top CPG

improve experience. continue in and industry. the is customer to partnership, experience discovery solutions brands will to leading around And Our for we with help their product expertise large well-known this enterprises

Now second largest coming TMT commentary. vertical. revenues, to quarter remained XX% segment some of our our

first focus Our sequential quarter. TMT on delivery growth top and continue the healthy to in a and over offshore offices customers expanding this resulted

business expect to continue in contribution our we our revenue growth recent retail our of vertical. TMT Knowledge. the over forward, Going of At strong combined of largest acquisition to organic business Tacit largely last to to quarter continued witness XX% second retail due quarter, remain with strength

logos continue said, our to dominate witnessed On services. across this show roll of our that customer one XX% to the preparing in historic the out second the year-over-year of on brands largest set of half second At CPG client, of growth engaging onwards. clients top board growth we continued the a and composition quarter with contributed a revenue XXXX brick-and-mortar expected e-commerce and and Knowledge. meaningfully new from CPG friendly initiate largest these revenue projects from outside are our we customers, the our CPG this a basis. increasingly Tacit organic our Underpinning manufacturing are segment to during quarter. sequential significant front pickup and to both That was

services. time rapid two, on of design we tens that and with to micro Number has of management four, access and created turn data and initiative the system have deliver strike client QX new integer to manage that world's X,XXX and as for advisors two to Grid Grid and search as largest a built This fulfillment This and three, during With been by the thousands and increase to During outdated loss Anil? more of data who mere new we XX%. and one, more decrease completely retrieval engineers optimize the tool application, large enabled online based by and worked using minutes. order and onboarding the Dynamics and simultaneously led big of company, discuss the the onboarding order modular a of Dynamics to implemented handle US-based portal which business service deal US experimentation for platform. quarter, projects. the manage by a the impact. linear Allowed techniques, expandable implemented direct-to-consumer XX application, we a CPG revenue. An intelligence, a across savings The an by solution to process Anil, learning-based environmental engines the traditional and The interface delivered its on largest client data a revenue companies a a will effective solution developers system. time. was allowing their financial order for some notable we the of a annual minimize programming. business annual retailer, for more company, a algorithm over Number resulted revamp advisers Grid to projects provides global detail. the in call This of significant weeks science analytics optimization me clients split had global one significant platform used rapid coordinated reduction system, company, than with developing let single of from results positive boosted closing operational and intelligent one wealth is model a the single client. used management discovery. client product Number for creating globe. allocation platform a machine tool enabled an is Dynamics to Number technology on deployed

Anil Doradla

everyone. Leonard. Good afternoon, you, Thank

and basis range million to of on basis. quarter on sequential $XX.X revenue million our a million XX% year-over-year Our and exceeded second up $XX guidance XXX% of was a $XX.X

Excluding our and the a Coming to with a and contributed XX% board came with large revenues basis across the TMT retail Daxx $XX.X $X.X year-over-year from It million a verticals. their the XX% revenue the TMT our to some driven from couple stronger-than-expected contribution Growth which XX% of on Tacit, quarters, acquisitions of of in the mostly XX% Similar across vertical customers guidance operations quarter year-over-year of the was from and our TMT quarter, who in The and offshore was on on exceeded vertical. $XX.X of second basis million and us. quarter grew ramp in was and sequentially industry our $XX last million. by our greater revenue TMT quarter was strength XX% of million revenues vertical. to organic our basis. the verticals sequential up largest

a segment, retail of sequential representing more During our spending. XX% in XX% they became digital the transformation-related pickup with basis. many this business we vertical, on revenues across our Within as quarter, second aggressive witnessed grew customers

of e-commerce basis year-over-year Our of representing a quarter meaningfully on revenues our and our pickup combined the XX% friendly contributed on a customers non-retail retailers to second In growth. with business was sequential XX% now our the the some quarter at top basis. XX% brick-and-mortar up

revenue the details other of verticals. are of the some Here mix

the customers customers, revenue and a vertical X% second at basis. and and revenue basis. headcount financial our contributions client grew the of combined driven a XXX% sequential quarter than our with CPG second quarter of Tacit. and employees. extent improving quarter of increase our finally, came with increase from demand, XX% XXXX. XX% the programs from revenue up manufacturing first of on ramp combination a the on and of Our sequential and and lesser added XX% the primarily from largely a quarter of XXXX was basis segment of in XX% of from growth from grew XXX We wins. sequential the recent other which in during The The XX% a a on basis, largely the employees and second was by of some on basis resulting Tacit. Finance sequential growth from on ramps quarter represented Tacit our up new a sequential faster exited in largely X,XXX ramp represented of recent a XXX XX% X,XXX due in represented year-over-year acquisition headcount And contributions of up the in added in or quarter was XX% and expected The Knowledge, X,XXX, to from recently employees total year-over-year to

headcount a on quarter total headcount. of US XX% Tacit, sequential At headcount quarter. from or XXX down was or of company's end from people the basis. second XXXX, This slightly the quarter the in XX% of XX% increase the total Excluding and first the in was was down XX% significantly our the of ago year XXX increase

Our the In and Netherlands the non-US in XX% five Mexico sometimes second and or was XX% as the respectively. customers located of XX% XX offshore, we total to from headcount, Europe, quarter, the Central Eastern top revenues refer top headcount. and and our UK, X,XXX were which

continued ago, period was of same acquisitions XX% logo concentrations a our combination Tacit. by year five driven a and Daxx diversification respectively. XX of The the and top and new were During and XX% top customer decline industry ramp,

had we customers, business our from XXX XXX acquisitions. our organic the Tacit XX of quarter, and During with remaining total from a coming Daxx the and

customer the second XX first of business organic from from and Our was the count up of up in XX, of quarter XX in quarter XXXX. XXXX

quarter, vertical, the two not inactive As reminder, the only were a and were and added include two do customers, in in Relative finance the revenue-generating logos, quarter. customers first in five who one was to the we TMT new we count quarter vertical. the during vertical; in the other the

income Moving the to on statement.

or quarter, Non-GAAP in as $X.X from amortization, up was the a was offshore was basis, million up of Our the stock-based percentage percentage higher in the million $XX.X gross quarter XX.X% or and or the both from and or year costs, EBITDA, quarter XXXX our in more related sequential increase up of as factors acquisition increase in gross $XX.X Knowledge. XX.X% from to quarter. margin or a up XX.X% The during quarter. a combination working XXXX XX.X%, EBITDA driven The ago days, $X.X in in XX.X% the from combined non-GAAP the GAAP gross million largely quarter. expenses. gross by offshore margin, quarter XX.X%, favorable and operating $X.X XX.X% and revenue, up ago as other included the during revenue non-GAAP a gross margins of $X.X $XX.X year the highlighted tailwinds first from strong XX.X% above. of of margin, and that million ago for million factors due depreciation Tacit from tailwinds On million million sequential was on flattish leverage that sequential same was recent first from mix in the or On million $XX.X mix, $X.X percentage, compensation, excluded quarter basis, our from million first the with a a increase year in levels and or or the in of XXXX of or margin favorable X.X% transaction

both headwinds, quarter, of Additionally, percentage. low pandemic-related our in EBITDA, as was resulting terms a impacted dollar in ago and levels in business the year by

guidance, of increased, first the the in organic or equivalents revenue based diluted XX, investments down increased million, income quarter million flattish XXXX. days the XX Tacit to cash, contribution and be million comparison diluted operating GAAP sequential the shares of and totaled of all-cash net on decrease in XXXX $X.X in share and number The based the $X.XX of the ago or This loss to smaller of $XX in current Coming higher from share, an our increase to million by basis, was per $X.X On and loss quarter. was second income first largely both quarter $X.XX in share, acquisition based first to our second the in offset due June factors a non-GAAP loss operating million quarter was decline we revenues $X.X net the million Daxx a and of were acquisition, in The loss or was on in organic revenue share, in million acquisition million, based in year from $X.X $X.XX working or first million million $XX.X a or to million. $XX million million due of levels $X.XX a per Our $X.XX primarily GAAP quarter, combined. on count expect million the XX shares short-term which net on net expenses. non-GAAP million Tacit shares compared ago $X.X shares compared higher per Contributing the On expenses the the includes of of to diluted year per $X.X sequential quarter. XX quarter and quarter third shares range per or XX to loss Knowledge, the based quarter quarter, revenue, non-GAAP in from of non-GAAP in share, $XXX comparison the quarter. XX and a shares $X.XX revenue deal. the to diluted income cash diluted share on million based net in in first XX $XX on quarter to totaled Tacit, million

$X.X range third in our be to expect million. to $X.X the million quarter the We of EBITDA non-GAAP in

to our year least includes our Tacit $XXX at we of XXXX, revenues be and a expect $XX For the million from contribution of Daxx. million. This acquisition full

For to XX the my share our in diluted range of million to of the expect third in to to be prepared XX XX million basic concludes take share quarter, we our we million the count That to and ready questions. remarks. shares. range count million XX Operator, are be

Operator

Thank you.

session. comes begin Tandon first Needham. Instructions] from go Our ahead. now Mayank will Please question the We question-and-answer of [Operator

Mayank Tandon

evening on you. Anil, Congrats Leonard, and Lili. Thank the Good quarter.

Anil Doradla

you. Thank

Mayank Tandon

more clients? I for -- then expectations balance your What And demand hearing given XXXX? from just pricing? speak impacting are is could wanted now the the how with you XXXX to to you start that they of pricing backdrop Are to increments? into receptive and

Leonard Livschitz

Thanks Mayank.

So, say pricing. I situation our we that of there's in general the that more trend Customers with lot would and some also understand see of competitive positive inflationary behavior. a the market

more So, we than in -- our work say when with favorable existing a that the little it's flexible us. is in by I They're new and would KPIs terms they business usual more are sense negotiation their pricing customers. driving driven and bringing some of demand their bit with

Mayank Tandon

to helpful sort Got quarter. it, then and question your second margins that's expectations would EBITDA so And gross margins Leonard. around in the be strong of just being that related

we takes helpful. XXXX? margin margins think same we all the be on about you. of and the Thank puts And about the the sort when of balance XXXX, So, the the margins, trend would question then on into think how over the trajectory should

Leonard Livschitz

reflect want I more year-long I journey. maybe to and moment to details, this am to a Anil going on the start just give but little can then take bit

days mentioned going As time, horse early pressure. of be of accelerating COVID, and were we then of our QX ourselves then financial we facing with drive again to we by QX that lot would which the I of on was through you'll of going quarter end that got us that we're revenue. business a you the just and QX deal performance. And recall white And a our I quarter all told the a did

really talk health the I non-GAAP Now, about company. between and to of fundamentally, to I maintaining will But we are EBITDA positioning XX-XX speaks let the on gross what Anil which details. margin our call

to Dynamics margin you to As has the and which would details. finalize the what I delivers. Grid let Anil But gross clients the I'm some focused of driven respect appreciation of can very on the imagine capabilities the

Anil Doradla

Thanks Leonard. Mayank. Thanks

gross But you have through prepared had QX and all you so obviously, on the to as So, from the trends profit I them that to bottom-line the bottom-line. And look increase between nice pickup saw must of if the we remarks, dollar a seen shared QX QX at is we won't fell go QX. you OpEx a here again. flattish and the some

we're look so talking for investing. is go growth that stage into interval, So, and sometimes about us tricky gets a in it we as a QX company and remember XX-day like little a --

We are investing.

continue to We invest.

things of Some around. move the timing

and to as as sales on that. going go like So, recently to the well be investing which we're we're we front as into things be our going is QX initiatives hiring R&D investing, on marketing

Leonard pointed be that is the to continue of come the So, you the guidance think as playing big out I million our us front. again, $X.X growth. that you -- show that to some on you'll the have To see as gross you'll can to to investment we up. see as But QX balance million from we EBITDA, saw $X.X and look on that some extent, of back But our showing -- was will some see and margin important of very our with for out, long-term. XX-XX picture

give little the and to As balanced bit more growth XXXX, far back be color. wrap our come as has we strategic up let's we'll investments. remember get Mayank, some into XXXX But of a with

Mayank Tandon

Thank Congrats responses. much. so you Totally the understand. Appreciate again.

Anil Doradla

Mayank. Thanks

Leonard Livschitz

you. Thank

Operator

next of go Our ahead. Puneet JPMorgan. comes question Jain from Please

Puneet Jain

Dynamics? you But like firms results. long-term which coming taking Hey, Anil thanks Grid and growth changing Leonard the how pent-up over or pandemic imperative is behavior could from digital seeing of there the question comps about client among while are spend can customers, guys. XQ like talk is obviously higher quarter easy you drive enterprise increased out benefit my a for in good for

Leonard Livschitz

you, Thank welcome power Puneet and to excited. I'm grid.

substantially. and enterprises obviously, accelerate it's to some clients with the of very situation So, same the approach the hard with the measure

overall very Some environment. careful healthy a a more bit But investing are them mode. of it's little

more to at months, clients. I the ourselves at in the is general important and aggressive proven much Dynamics solution have larger solution not Grid the models, than but been believe and think increase we more more the done more more capabilities. between have much more multiple part diverse and projects trend taken we approach the We be comfortable look not the like over we introduced we I relationships entire now to clients. look before, deliver our stronger and past way more feel with and XX it's

the more very top scaling So, even Grid strategic very, clients are and approach bullish relationship on with now project taking I financial very much Dynamics. with am a that. the

Puneet Jain

peers of seeing wage Europe? attrition many supply inflation And about supply you Central Understood. you talk how are rate. your Eastern during in across countries seeing various talked Can and quarter about seeing challenges the higher

Leonard Livschitz

probably mean to asking I you've course. been call question representative. of this Yes, every

situation across the similar. pretty the much demand. countries think There's all I of are a lot

have strong we of very And to some our able in IT other build built our companies, loyalty program. the Unlike noticed. And of some has programs, we been supply training university, our retraining the perhaps very, constraints the have with been legacy regions. the the

that -- see rates attrition you we been would the increase would increase general much I have the unchanged last our very in look So quarter. say of industry, at while from statistical

a the we headcount at total we number If acquired quite of the you quarter, increased look this bit. people

sound doesn't it's Of stable. some other course, on purely even for the is organic to us it but over huge very companies, of a due people, for XXX acquisition. basis, part But it's it

are, challenge much stay continue a United all in the for and that we and legacy, Central continue Eastern always States to our to pretty we all demonstrate the behavior. across the relationship our that at processes European in our think we attrition, which lease the nice are matter internal the able pickup centers the using able So while hiring have of I the of our are front to countries

Puneet Jain

you. Thank you. Got

Anil Doradla.

Thanks.

Leonard Livschitz

Puneet. Thanks,

Operator

Our of Cowen. Bryan Please ahead. go comes next from question Bergin

Zack Ajzenman

for This Thanks. Zack is Hi. Ajzenman Bryan. on

update on anything just the as $XXX balance us you today. It M&A us there, sheet. it's in so on Can it kind the stands cash of to near-term? for sounds your we see just or strategy million about like should question First expect in thoughts

Leonard Livschitz

All right. Yeah.

up you few picked So things. a

balance right from ago. balance the because QX, First we obviously the finished the at of successfully of follow-up months just is all, different our fundraising the secondary today short end

cash kind more our some situation. of there cash. public the that warrant is more through -- coming finalization So There's -- of the

remedy of but going to So end of that's last August. pretty came it's much the by be the how we way gone the public,

So extremely sit we excited acquisitions as cash. have chunk on model. repeated know continue nice The in do two it, and our have in because acquisition I'm flavors, of been we a about the come expand which new three to you the that And one. expand past. very to capabilities would three key on continue skills as number and new It's new be is Number on overall people. I the we verticals, right. is geographies. number mean, it's the

with Tacit. then So of our testament reacquisition we're trying to present being continue strongly to diversify especially in most not verticals where a we're

we are in I integration be. try future. to look acquisitions with suggest the kind mirror the near rearview front. upcoming guess we to for what's additional at think would strong I the But of our size, by will on will continue So acquisitions not balancing of our next

Zack Ajzenman

follow-up now to footprint. investment of scale philosophy you kind just recent note. and And these new on have to obviously you've the up expand you M&A, Can maybe get to regions looks about helpful. such picked the that like operating regions of just time? The it Singapore some That's up over as that you're talk Mexico, in those

Leonard Livschitz

be do sectors some company. as of the have they still the service the clients. and Knowledge They the to sounds North Mexico gravity By retail customers. have additional said center. way our central Tacit the the European CPG remain the software centers the primarily other for EGM was partnership in to two and have you acquisition and core also of financial a capabilities story but in the straight America a SAP around center UK Moldova in gravity core they UK-based with Well, products. key, And It's

So we of already the the jumped partnerships. bandwagon on

a our great our I -- They like Tacit. already by in Mexico. to and B on culture it opportunity to together both of the we're with We nearshoring. project have comes Mexico, it's work their for in business our acquisition need team. of expand, fully When going Europe It's relation generally a relationships. in customer scale we and strategy have understand to projects it's to make group we just working behavior which need our sure us to first front. So a almost mean, very course the with rich be we're and Again, some careful. lend with US it of

But it. we So to we little in too for point. we look to the Grid say will When too this early talk. our not want It's East. I need about to bit Far excited are a complement But it would to Singapore zero just -- at it's strategy fast. stepping the comes at without

Zack Ajzenman

Got you. Thank it.

Leonard Livschitz

Zack. Thanks,

Operator

Our Joseph of Canaccord. question Vafi comes next ahead. Please go from

Joseph Vafi

Hey, Good afternoon. guys. Nice results.

could the secondly, for hiring then wins Thanks in on logo me. couple front? a Just And One your quarter potential and very new comment that now just you size? of is much. and their update force on sales in on terms your where an

Leonard Livschitz

Of Thank course, you. course. of

So questions. to the answer your first of part

that. say a in larger as logos No, little on know would side. tend much general bit our I no there's typically deviation you on So to be

playing clients do we of some innovative with I some relationship of observe clients. However, the what call up are to roles they midsized would because the enterprise instrumental pick the

the QX similar we a a acquired same mix match of for maintain bit it's between we of in position kind the and and So preview guys QX.

clients, smaller acquisition as smaller clients know Moderna the have was we which done start-up late you Daxx year. be last the For

it on they organic second was what reporting the repeat. sorry call part mid you the side. smaller from And acquisition clients. of to organic growth When tend to Daxx, comes -- large be have without it's we to a to So

Joseph Vafi

Sales force.

Leonard Livschitz

The sales force. Yeah.

Sorry.

Okay.

areas Anil right. of investment, Dynamics one the that the mentioned of two to that's main we're So do continuing Grid that. already

specialization. boost industry in on fact kind we our more I'm the We CTO the So it onboard, from recently to brought press the solution which the invest When added comes making a clients, senior of our sales more a the QX. technology build and we in with key I our which we're consulting bit industry side artifacts few mobility reserved regional people. upward team. and to people experience we recognize capabilities, the some relation mean that to also drive releases with relationship. continue about a add loud new with trying management technology supports side,

the all salespeople side the their mastered as the tell can country sales see regions from been in to York see area. then pickup the by clients especially region. that I believe proven see will clients the the to resources you a Southwest of New delivery are that. But On Southeast we the Texas on on two invest I on in across the East And we've growth way Northwest exponential relationship sales and Coast around additional you we

Joseph Vafi

you Thank much. very

Leonard Livschitz

Okay.

Operator

Nolan next Blair. of comes [Operator Instructions] William from Maggie Our question

Maggie Nolan

Thanks. Hi,

On additions going clients delivery more are client or onshore? should global expecting five any serving offshore forward? or delivery organic with of then tech your customers And additional model, out customer the you large a primarily other new these expansion are we starting from from them be

Leonard Livschitz

are still the our directly demand directly some teams expand engagement offshore diverse occasional the and but most current in them quite lend environment the the dealing proceed very on of in the face-to-face clients of new some we because have been the I the deployment case say, with mean which of directly with Even is in meeting Maggie. start I And would this you, offshore. with from do engagements Thank those state. virtual. customer in they Well. rapid

Those tend back On the be within core our with just Again on-site we they we this other not some one less would we proper locations. scale. clients will and area. offshoring expanding scaling The in the of premises. to and but within momentum, day they our to the come people their be the broader all local offices will terms of the adding to or it's particular across leadership the there plan more like people virtually virtual hand offices client a a are able to background are in to our a It's be offices core have, absolutely. field huge

if and places the we incrementally cities we think we people where of are is look really work the while have our we I on the map located. cities increased marked still countries the physical have where the office our at core number

the from been the adding within region. offices virtual We people have

Maggie Nolan

in of the you at your with increases, reduction Are examples revenue Leonard material client clients supplement outcomes that would like closing and time, Okay. in reductions, And compensation expense then you of all referencing you talking about things. arrangements were engagements types annual several outcome-based measurable that those time have?

Leonard Livschitz

Well water which it's reward say customers, There us. would I more obviously, test getting some than and is too. The are relationships are popular. more with material. time the the bids fixed project-based outcome-based There and

entire go outcome specific So criteria. but some they call But people across the on different different based don't projects. the platform

may still call still of So the how there based it's way standard works outcome it but cancellation way -- then the are payment. a of they more

through will when more say one But more our in of become would you with measurable But the been would the those ways have based he dig other we I you a on engagement say I go So we I most as many grow would KPIs. which walk the generically, on long-term, way our modern projects. say of we offline relationship examples. recently results settlement includes produced or another Anil,

it's it's a easier more we of way or us whether and implemented. relationship. monetary reward the measuring because parts do become that to have progress the The So for more

it's metrics ownership easier our Grid So the to performance with drive project Dynamics. there's associated on from side more contribution the

Maggie Nolan

right. Thanks, All Leonard.

Leonard Livschitz

Thanks.

Operator

from Our comes ahead. Siegler Josh of Cantor Please next go Fitzgerald. question

Josh Siegler

transformation results sentiment seeing we in force? quarter. Hi, you segment. your wondering they still pursuing Leonard in were in from spreads, customers, And and the see of are Anil. the some such digital the Congratulations to initial are any variant retail Really or on delta as nice strong change fantastic retail

Leonard Livschitz

kind for Josh words. Thanks

the they space space, the they think longer believes in that consumer -- CPG goods who without across can retail all deal and and probably business. I anybody digital commerce So no other

of think stores. e-commerce in brick-and-mortal legacy more the see because right? But one say traffic their drives in re-openings foot reliance some of would business, less I successful or still in happened we the terms in the their the and pure-play So that growth. their I practice sense digital it's the implementation more of on digital the months, last

the pickup is in but coming So I digital. of the investment investment would their more brick-and-mortar broad-based say even still from that there stores a

words hard-earned corresponding business. their platforms digital in dollars put their So all for the driving they other into

Josh Siegler

it you. Cloud Google Thank bit, contributor. helpful. little that the gears That's could Great. be very Shifting like seems a a strong partnership

provide forward? more business a speak little on deal So color more can the a moving may you impact little and and the how it

Leonard Livschitz

Well, things. the into obviously, go details But few we way how things you are give don't I'll implemented. -- of it's a the

in development. the project the our some R&D First conceived It was multiyear ideation work. Grid it's of of all, and ideas a

the press those all Now our in It's actually big mentioned in graciously of retail. A appreciate us it expertise you course our is tells But they too belong release part release the main Google being to contribution. their Grid giving putters that to press things. citation of client. own by one Dynamics' and of of

on don't just ideation create cloud You side. the

You don't just create the transformation.

legacy back the go the You the from combination, the the public automation. migration, the on-premise, private, cloud,

of So Grid in-depth by implementation just XX, multiple a XX readiness within to partners, Dynamics the Cloud Google a a putting very customers in and testament comprehensive a it's years. -- side-by-side past with successful with capabilities enroll over retail it's

Josh Siegler

Leonard, and Thank congratulations Excellent. again. very you much

Leonard Livschitz

so you much. Thank

Operator

conference turn question-and-answer concludes any over I This closing like Mr. for the the to session. remarks. to Livschitz back would

Leonard Livschitz

today. joining Thank us the call on you everybody for

we second Dynamics' well with proud in we of have Our June revenue. X.X enhancing eventful the entire QX, offering its balance with follow-up am meaningful able that the public targets achieving March and completed had the doubled In and company's second since XX Grid our work long-term we sheet were Furthermore, on deliver against years executed past highlight, future months, our a quarter and a a goals. flow consistent in and their to our in the cash team strong our the for quarter going growth. second an More we profitable lot In hard in I the we very acquisition. results continued were than accomplished pre-pandemic. substantial important level conducted guidance. successful We've XXXX. resulted

the July this our XX recent will warrants. be capital we As completed as all public redemption will redemption announced streamline of and remaining XX, structure. by The August

to XXXX, As enter to in of demand continue we work environment forward excited update digital second prioritize months. ensure robust, business very we a the I'm to and us, new ahead our lay that opportunities half and of their resources. is hard look to that three you. continue with we capabilities the Thank the engineering into give expand transformation initiatives and customers

Operator

This concludes today's conference call.

for lines. participating your have Thank pleasant disconnect you a and may day. You

Grid Dynamics (GDYN) 8 Aug 212021 Q2 Earnings call transcript