GDYN - Earnings call transcript Q3 2021 | Grid Dynamics Holdings, Inc.

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Operator

Greetings. Welcome to the Grid Dynamics Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note that this conference is being recorded. the Investor to Relations. turn Chernova, host, now of Head will conference your over Lilia I

You begin. may

Lilia Chernova

Good afternoon. Welcome earnings conference to Grid Dynamics third call. quarter XXXX

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

the the and disclosure press at You company’s can of filed Securities earnings and end the refer Exchange X-K Form to release the today. with Commission

about be undertake the call. will occur All current call. statements of obligation information For reflect only, events that expectations forward-looking any that reflect no made on our to this today made will after to this we and update statements them

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

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

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

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

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

Leonard Livschitz

results. another positive for Dynamics everyone, Good us Lilia. you record categories today. with had afternoon, you, quarter Thank multiple joining shaping our thank Grid and

term. significant underlying in long the into near the With three insights positioned progress leverage our and multiple to across fronts how we is made our talk excited key provide about trends business transformation importantly, results quarter have opportunities, business. speaking I’m ago, More months backdrop, share for with digital the to all highlights of since company and well you that third solid both

quarter, partner our positive and of the Customers outperformance ones. expect our trends across the rates without and the many a share I and are are quarter transformation coming We demand work In the most Furthermore, our a This with and digital million being in There consecutive on $XX as in extend of the Now $X.X deep million. company’s very $XX.X revenue acquisitions This I’m The recurring as of entered initiatives double-digit record initiatives verticals. our all witnessed to some company preferred aggressively to notable urgency. robust was hard for relative dedicated thank These sequential history. the witnessed of recent revenue quarter incremental expectations. our $XX.X revenue. our third report highlighted customers. was Based to the demand of and another you services our quarter with across investing want reporting transformation efforts our interest of our higher of accomplishments third million quarter, the exceeded expectation than not our million in base quarter, strong dedication. and of for third XXXX I by third would the of In our exceeded have continue growth work. like trends to revenue revenue record the fourth to million across continuous possible the million the range results. confidence across organic would digital $XX.X enterprise our quarter of trends, their strong by highlighted expectations, them customer with we employees, of we engaging priority stage of in pleased guidance sense been our business. a exceeded to marks $XX forecast. the to

organization, we digital that business factors who to shift and include in customer again, improving catch efforts to in be by continue As included quarter, capacity sentiment, around in over geographic on. in and and the greater hiring University, customers with locations several this XXXX aggressively the Partner up on our as with This we expanding driven over that commerce than held engagement paying year of continue detailed ramping scaling the Based we to momentum and internship during XXXX. started some we acquisitions XXXX of past, pipeline been see skill put The up place entered the exit to double to XXXX. of number highlighted program. robust. interims expect and it’s in more will And our strong, customer the spending incremental recurring engineering increasing network XXXX our be the in double back sets were cover.

added XX momentum CPG clients, and quarter the we of in The on retail. total front, During Within This our TMT the logo we We the new of logo logos Fortune account in decline people new pharma Of higher reached our resins. total and of new in the third as reached headcount and with XXX global added over XXX a of deli and was two quarter, employees. that’s entire one X,XXX our addition with three general seven to to XXXX. were brings organic year-to-date the the company. logos than second the business two space, XX our contributing up new all picked XX. them quarter

acquisitions. leverage clients customers as to continue our Our with concentration expand continue new top our our we customers, new to business with existing in deeper decline and go

was the During in customers a quarter down the revenues same our top of year five from quarter, ago. XX% from XX%, revenue our

around and were new paying logos ramp off. efforts up verification customer continued even Our

across United During the the we on hires strategic quarter, made some sales States. front the

around The an clients. acquisitions innovative our recent be continues business. by sales organic integrating strategy partnering Additionally, we enhanced made to across around organization have with progress and focus our implementing value

customers seeing as started skill synergies cross-selling the from value sets. technical benefited combined we quarter, the of During and

services status. deeper In a a experienced executing we the providers. building better cloud differentiation status autonomous quarter, Grid scaling of are Premier [inaudible] Google Premier partner POD and started Multiple crucial team our we’re working many logo client to release engaged. customers. acquisitions. clients. same On rolling Dynamics and out the new accelerating that engagement relationships of many, the business pod parts cost plan and part partnerships deliver testament highlighting the leader. efficiencies, with model are is better that its There earning our dedicated major transfunctional by managed in the be Each Dynamics we the includes for control third with in could proves. is partnership benefits Partner team enterprise the an Grid Recently, to created a flexibility press the issued model Cloud front, our

During we pot expect continue engagement this form the started we quarter, of some rolling the at of the increasing. model forward, third going larger to And out customers.

some quarter quarter. to of quarter sequential the the the commentary. growth At with our our business strong revenue. in coming Now knowledge vertical business retail in organic revenue, segment XX% the our merged Underpinning third largest of asset and fourth

quarters, online. the positioned customers XX% aggressively this annual technology online to revenue, the specialists robust Underpinning And center customers home from retailers of ourselves was customer across basis. quarter base At During reputation TMT intelligence and platforms. growth they strategy the for couple customers expanding strong continued growth CPG presence. quarter XX%, top cloud focus is delivery our transformation to and and product In where fueling retail on year-over-year Similar traditional toward of top building sequential a on with third to are and third revenue our our increasingly both the our of a industry last was grew as with in manufacturing growth, centers. the machine on continue with basis built logos their platforms solutions is customers CPG across invested our offshore an expertise. are consumer online shifting with industry-leading retail our roll placements, large our specialized on strong show vertical. vertical, are focused that ways, customers expected quarter and industry better across the to e-commerce press second engaged robust Knowledge improvement be continue areas Within TMT was e-commerce-friendly CPG The have the ranging the their large Retailers XXXX. and XX% we quarter outside spending coming growth brick-and-mortar strong we from to many a largest revenue quarter, learning Tacit out direct artificial apparel customers largest from into optimal undergoing weed global in projects new In QX as and brands full brands, were involved we contribution the that enhancing our largest in acquisition. of this growth. significant

activities. global negative from a reactive a and situation. ad room technology for of built we’re Grid home US The scaled tool the due subsystem retailers, time very some fraudulent two, Dynamics improvement provides renovation growth. fraction successfully significant quarter, detecting material discovery. event delivered a to from in to savings the Number the rating largest system substantial one The projects. visualization system for orchestrated a notable provide improvement at to one, of advertising with is decision and previous Number a company, Grid creation for During

Grid eliminating that four, Number key product every segment. the we allow AWS. have are choice for believe maintenance designing DNA initial out sets relevant influencing The one make fastest-growing products a to the robust to and data Dynamics platform is necessity of implemented high-quality as online on how one been business. doctor as implemented costs a tool shaping sales support developed reduced communication will growth and on well to the environment-specific largest central store. for accelerate solutions building is strategy. today digital has a We customers’ ourselves the of built enterprise US analytical on ask to with manufacturing our and roles control. based how a commerce our customer and platform environment, purchases. has new adaptable we physically do questions such customer a visualization, conversion in for maximizing environment. the jointly that effective balance finding single under in rolled Dynamics scalable, for version key color company, Grid stay these light finally, This implementing that around use tools the reliable. Our Number playing business portal the customer of presence rely platform a purchase solution, team speed we’re of already where patient and to deployed to platform [inaudible] a we’re solutions. And features This the the market integrates response in in marketing and keep rate easier core and scale in increase implemented it that an enterprise, question, major and and united specific new a three, increasingly telemedicine The unified we of designed allows enter making significantly led consumer

XXXX, approach strengthen discuss will the QX With DNA in and we Dynamics that, business to scale market. Anil, call over positioning will in propel Grid Thank to the our detail. and who As me turn you. results more reputation let our

Anil Doradla

afternoon, Leonard. Thanks, everyone. Good

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

The Excluding the and verticals. our million. organic $XX.X our our basis year-over-year $XX driven XX.X% DAXX contributed quarter, by guidance $XX.X sequentially of of million up strong a was million in million demand across Knowledge, in exceeded of was on and better-than-expected the revenue industry services revenues Tacit which and quarter from for to acquisitions $XX.X revenue XX.X% our

strong During XXX.X% the friendly year-over-year and basis a growth customer and a our across was sequential on by retail, year-over-year on vertical representing largest retailers grew XX.X% our with continuing transformation on strength digital initiatives. e-commerce revenues, XX.X% third The sequential quarter, our and base focusing brick-and-mortar basis. driven of

from which quarter fourth a combined the full onwards. contribution Tacit the Knowledge. we by On with a from year-over-year from revenue basis, in retail from driven benefited we our our made growth Additionally, revenue was continued acquisitions, vertical quarter improvements contributions of

revenues to a quarter our the grew continue sequential vertical some and basis. TMT and was basis operations represented of large our our a came Growth and from their on Our who year-over-year vertical X.X% of largely second XX.X% with XX.X% third offshore ramp on quarter us. TMT largest in customers

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

on combined was had We third from to DAXX. total acquisitions total exited due a the This a increase, represented headcount The XX.X% the of of ramping third of revenue XXXX, or quarter and XX% The the a our XXX was segment a XX.X% grew year-over-year by end year-over-year in XXX.X% down down came headcount financial recent and this third XX% customers driven from from engineering a largely and we X,XXX employees and from with customers sequential represented large come The was with Knowledge. US XXXX. quarter increase XX.X% our second our headcount the on basis. vertical And grew new the of second XXXX slightly of our CPG and basis. continued third improving the ago basis from headcount. on manufacturing in largely finally, quarter. of the represented programs our The basis financial XX% combined XXXX company’s combination growth with XX.X% added due of sequential on and in in to was during sequential the the increase Knowledge growth primarily basis. up employees resulting demand, was quarter XX.X% year X% customers. the ramps a demand. XX% from quarter significantly contributions of with At a in sequential was up of Tacit combined of Tacit improving recently of from of quarter from employees the from combination X,XXX, or employees and client and up the third Our revenue vertical, our and revenue total largely of Finance of Within a from quarter at in X.X% X,XXX in quarter growth of quarter sequential witnessed increase on some wins. in other XXX ramp

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

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

business During a quarter, had XX% the Tacit and coming we the XXX DAXX of with remaining and organic acquisitions. our third customers XXX total firm or Knowledge from

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

vertical and quarter, quarter. added As only we four to other a include in revenue-generating who the Relative in and customers vertical quarter the financial new two reminder, included during seven do the verticals, in the in count not customers two companies. inactive second the the were we logos, to TMT which global pharma

to income statement. Moving the

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

recovering our dollar percentage. pandemic-related headwinds well quarter, was of both as in in resulting lower from as year levels in Additionally, ago terms EBITDA, business the

which revenue, a or loss million the acquisition, year $X.X to shares a a million loss of third from of GAAP revenues XX of for based and quarter. and in and higher million $X.XX or on On Tacit basis, of non-GAAP based XXXX. $X.XX quarter $X.X on $X.X non-GAAP $XX and balance revenues organic shares based non-GAAP Our revenue. revenues based diluted net September in quarter share The million levels This to expenses. a the share income operating in net million in expect the The in includes be net quarter loss quarter, increase loss $X.XX to leverage of million similar from second our a of shares Sequential in XX offering net sequential acquisition non-GAAP totaled or million short-term per our was income totaled or to net compared shares offset fourth and net the million year loss in Coming secondary in from increases second warrants. $X.XX included $X.XX shares the of of increases share the was on on a and full ago million, GAAP redemption the the a range XXXX, ago investments $X.XX both based count we offset On third in $X.X $XXX XX per on equivalents Knowledge largely decrease loss cash of higher was was million GAAP increase loss cash based income share shares diluted our quarter of expenses. due of to million. position $XX by by the cash, up XX $XX.X XX, XX to in XX to or $X.X of $XX per guidance, quarter million $X.X per in million quarter on share income, our reason the million sheet. Coming million compared the key second in million smaller or share diluted quarter. per million operating to

fourth non-GAAP EBITDA $XXX quarter This $XX in million. our of range range the year a $XXX full expect the million to for to be the on our fourth revenues million We $X.X acquisitions. quarter of our to guidance, in $X be of to we XXXX, our expect contribution in includes Based million from million.

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

Operator

first At this Co. & session. of the Needham a conducting comes you. question with will Thank Our [Operator be from we time, Instructions] line Mayank question-and-answer Tandon

with proceed question. may You your

Mayank Tandon

evening. you. on Thank Good strong Anil, quarter. Congrats, a Leonard and

Leonard Livschitz

Thanks, Mayank.

Mayank Tandon

on to run to about and juncture? Wanted of pace deal that the does your thinking at the this just you And into off activity, continue can above how kick do trend? believe pipeline growth XXXX based things play that

Leonard Livschitz

and the thank words. Mayank, you, kind Thank you for

I successfully well. on with the existing and our forward. relationship as We would have in the pipeline actually momentum So QX also scaling growing. look expanding XXXX, we going believe have like if strategy the car nine clients strong with to a been new see you months that the at future and building executing but customers, our we

general. there’s but cautiously line market a necessarily just because not general We’re bit headwinds, now in of optimistic business, of still

this kind something believe growth believe to look so-called looking point. is right the it’s be we to path XX-plus that forward, going So at our we of

to XXXX. have will think this when and be clients. there a more point February, we relationship time, year clarity of end our on back At strong position expanding with we I get

Mayank Tandon

Thank new Are you it. demand Just do and challenges you. looking That’s supply meet how addressing challenges then you climate. at are side you And Got hubs? helpful. just around to a delivery as very those some address thoughts the maybe strong of retaining follow-up. quick How recruiting talent? the

Leonard Livschitz

the Sure. continues and to grow. demand Well, very well From ignore it’s of I business [inaudible] Sure. industry across we’re hard believe entire the the Yeah. perspective, scale to prepared.

have very time, but capabilities We facilities, also built and locations. training virtual expanded strong our both in multiple we place on recruiting

add ever. Our engineering university continue centers, more. programs are acquisitions, our broadening than and we internship faster With growing are we to

a tuned. with at So look places engineering university and Obviously, talent stay skills. high-quality very great we strong

still smaller. point. And I capability So, the we’re are and this demand, positioning we and think at capacity good

Mayank Tandon

Thank Great. again. my taking questions. for much you Congrats so

Leonard Livschitz

Thank you.

Anil Doradla

Mayank. Thanks,

Operator

comes question the of next Maggie with Our Nolan line William from Blair.

your may proceed with You question.

Maggie Nolan

Hi, Anil. Leonard. Hi,

Leonard Livschitz

Hi, Maggie.

Maggie Nolan

to overall or a kind offshore that more to should at work ask them? accounts there largest closely more the scale you the more with at client-by-client about key mix potential for onshore mix? on your wanted matching Or where of clients. it basis closely Is I move be offshore matching as is still company

Leonard Livschitz

a Yes. broader This question. is

in of a expanded First know, we outside confusing bit the business of report especially with acquisitions, the you case, all, numbers, which some we United greatly States. because, as

it’s not So if States, the the now you United onshore total far. presence by look XXX% in at

So are unsure we the for additional UK. actively hopefully accustomed customers growing other think on our hire increase more in more presence and are good have actually like irritation the dynamics opportunities example, mix specifically if United a I bring will we’re as locations, in assignment concentrate and people some we’ll we’re so-called you will the more States, but and But capabilities. on becoming to And global here, our with we get people states.

model, our the pod business is describe which So we relationship. actually enhancing as

customers compositions the are project So leadership, across globe. technology, of management offshore our in technical terms team quite onshore knowledgeable the on

whole think kind becomes between division visible less capability standpoint. I of the from onshore/offshore this delivery So

capability We’re Syndrome also bringing the our Mexico. near-shoring with

I okay, our is think except... balance as about read our expectations would just believe the well but with it I balance looks and customers’ them I our So how today, And numbers not the that positioning.

Maggie Nolan

looking bump attrition the from more level feel the bit offshore do gross trends Thanks then Leonard. and on I’m talked the like are the we gross how bump that color, a mix. Okay. you trends at Tacit for little of about the forward? the about business? for kind And margin, And items? I what’s structural you’re And utilization into right that the thinking going be from know wondering and normalized factoring kind margin how of should you’ve

Anil Doradla

Sure.

as pickup of concerned, did see Maggie, we far the some a trends, as XXX increase, in So utilization some is you bps So the saw QX right? offshore.

you we little some in rightly And As pointed better. out, had there. QX of terms days course, a of taste working was bit mix

As engineering look we get model I question of utilization is us, But our XXX. at around resources. key the of into target QX, we’re think our I you long-term think when maintaining still

So how the model term? a say. function should our we think utilization target it’s there. macro of I be out, comfortable all at in is how near feel again, environment I the But plays to

So come update take into revisit of moving that view. right from in we XXXX, as again we’re But whether everyone once have a on look the we long-term now, and point I direction. we’ll a to think for

Maggie Nolan

both. you, Thank

Leonard Livschitz

you. Thank

Anil Doradla

Thanks, Maggie.

Operator

Bryan from with comes question Cowen. next Our Bergin

question. may your proceed with You

Bryan Bergin

here Good I more a you’re in guys. Leonard, about. bit talking was little Hi, on that afternoon. could you hoping dig model pod the

benefits can So really you go benefits that that scale And give operational structure can financial as you gives the it? also around potentially grid? into as well as you that, the the details

Leonard Livschitz

Right. question ask I Thank you, somebody like you. If should Bryan. would the be

sense cloud our for a development. for product-oriented model. The with execution combining becomes micro the can make make would at do data data sense do services, sense servicing clients, we as terms a question we’ve structure So lot been mean lot it’s company of clients long makes of it where of cetera. We migration, global question model us. science, we position point to our very I because becomes And essentially, business would versus custom it call for a one business time. a insightful engineering, our what time, of et in it

on the to durables. and we be So more and are specific essentially, more grid than clear helping client

of instead better the deliverables. project of a It of of T&M a we led customer gives by the gives project a combination the variety business relationships. our leads, So arrangement, the on skills understanding traditional which bring better experienced

Dynamics, better positioning clients Grid financial obviously, the better resources. This from On should with have ROI from a that be understanding mutually the Grid side, proper it a level beneficial. relation investment return gives deploy it of of the to Dynamics means and

XX. product-oriented the one our it’s delivery, So of

more We’re little in full now with. aware just a customers bit be to putting the way let

Bryan Bergin

And follow-up macro then Okay. impact chain for supply of a a you. question here, more

of supply more any chain magnitude CPG you’re interested verticals. global opportunity this retail given actually issues, in creating budgets. curious if in for I’m just impact seeing and client your you So if is the more

Leonard Livschitz

Well, demand is I demand verticals. in other terms CPG say everywhere. would of versus supply, and would not retail from I differentiate the

expert We and global. delivering are experience a commerce notable the digital the as a

So these particularly to Grid continue two verticals, build the with relationship Dynamics. others just

the So are it’s what major are not across about. there supply chain we issues But globe.

capabilities, clients. technical we’re and the about We’re the excellence integration system delivering to their

full their service talent. capability. So partnership, to us obviously, and growing coming a consultancy, implants in when decisions, deliverables which the they come certain They to is from with us, it’s not just for struggle because delivery they business are technical may

with influential. senses they’re getting I the more that relationship becoming our strengthened would global say as grows, much because is struggle So demand a tones they because

Bryan Bergin

Okay. Thank you.

Leonard Livschitz

Sure.

Operator

line Josh Siegler of Fitzgerald. next Cantor the from question Instructions] [Operator comes with Our

You question. your proceed with may

Josh Siegler

stellar first Hi. pricing. on on afternoon. My the Good results. Congratulations is question

recently? your been receptive clients have price in So for negotiations how incremental movements

Leonard Livschitz

Hi, every Josh. give Well, more would customer love to us money.

a with excellence engineering always the to and value enhance in Look, combined but project Grid the the again, note, an is the obviously the inflation high-quality the and pricing more a bring resources performance. business. the on more of serious Dynamics market capabilities there case, customer it’s it’s important, So not inflation

a business our So it’s are is, aligned a margins it’s the returns. to are healthy, me with whether T&M model, bad whether offering, pricing model, customer obviously, but bid aligning model whether and it’s we because the it’s fixed

a always it’s So win. wind

relation beneficial which factor continued centers, of just capabilities, we and we not the is prices more that understand And organization, price that of enhance a relationship. that multiple where kind that’s or customers. value disproportional. just bringing feel crazy other We’re comfortable They and the the more become something doing service mutual we’re have our checking partnership. to multiple broader business And be of this

Josh Siegler

Great. this force sales talking I’d side. of That’s And for We’ve build-out been quarters the color. address then force. very sales to a of the about couple like helpful of

of made there. you to be in And ramp You’ve think we Are pay new will bring that starting you as that strategic logos? a like Are do see they move into what hires XXXX? couple starting off? to

Leonard Livschitz

actually That’s good it’s you. a point. – Thank

organization, organization. We itself, right? only of it’s technical increase continue have sales increase, been our organization CTO strongly leadership. very part the But technology one to driven in We sales investing by enhance and metal, by our

We’re enhancing architects. our

accelerate are in-depth enhancing as technical our acumen, we presales. enhancing which helps the our We’re with of kind

Now very client in targets existing verticals. we for in the and aggressive acquisitions both new XXXX, have

So I would rather be would absolutely, awesome. say that say it

Let’s the proven see wait to putting. in

manic I’m So I’m aggressive good. satisfied. far, is person and the led team. talented an a very never by But

So the large. are investments

mentioned investments the little a expect profile. on as when sales Obviously, margin our the But conservative returns. You are we to bit we in made on we you utilization, our numbers. for mentioned, and and grow, December the just but QX, continues technology

Josh Siegler

That’s again. And Great. congratulations very helpful.

Anil Doradla

Thanks.

Leonard Livschitz

you. Thank

Operator

of Citi. question the Our from line Ryan Potter with comes next

You proceed with your may question.

Ryan Potter

congrats on the quarter. Hi, Leonard and good Anil, and

to Just it’s like rate. retail its the on looks vertical back pre-pandemic here. It run

kind their win prefund should into new have levels clients to back the clients to of level rate? have or year? next cross that as that growth to What if through vertical here got able wondering you recover retail vertical yet. secondly, sales? overall now So Or some towards heading I most provide haven’t pre-pandemic back work to continues was of And run in you means those been the the its tailwind either incremental logos returned

Leonard Livschitz

Yes.

view. think, Ryan, a of I it’s comprehensive very So point

got you jump a look we months, retail. If big the at on three

lead. growth has I CPG. the a continued believe still the the you If technology X solid a in there on retail there’s and the look recovery months, is at

jump the that on market. of it was One the of did doing old the very been our the pandemic. client, yesterday reporting well and that one which fact, by very on is well affected

catch-up clients some retail there And gain as So well. going the a we into is international have e-commerce.

good. healthier. want trap. the is So I But think the Dynamics fall doesn’t segment into to It’s back Grid

digital on right it commerce. enjoy Let’s the

pharma. We’re enhancing a in our other verticals thing. notice big That’s

enhancing we’re business. We’re our insurance doing BXB business,

scope. technology our growing are We

announced relationship be recently of our with We Our the enhanced. partnership cloud one level has major grown provider tremendously. to

so are against tune that. ones doing other a well, The for

growth. big a it’s So

in we us and course, historically. notably digital experts are strong Of retail being for a and segment commerce recognized leaders

take means, we’ll by the no gravity. So central the or but becomes business,

continue I think we’ll drive. we’re Knowledge, about, the and excited Tacit something expansion to

Ryan Potter

now, to it. opportunities can provide looks then synergies able the then Can in update gain words And an you balance integrations have you to Tacit update or also how have how cross-sell been progressing? provide you like the ask been level from or, incremental of on clients question in other or M&A. overview cash And you on pipeline on And with I’d an on M&A a sheet you Got that the healthy for revenue and this? any guys the currently? DAXX have

Leonard Livschitz

like Sure, question, almost the Very asked I mean sure. good. would to you answer. I

terms bit Europe. of and of others, So different different work first dynamics kind of of us all, DAXX Green little in partnership. ecommerce two different kind technical with with verticals, has in Tacit companies. especially Knowledge two similar are partnership complementing their little a various is positioning Tacit and a very They’re very bit a

are is definitely the reporting. the which quarter quarter in So one the on during global, of report projects especially next we synergies, big this there as

sales. becoming and a relationship of on of smaller more global Tacit close it integration. situation commercial the it’s think a the driver expertise they as people XXX more what a and type and clients in DAXX, on looks enterprise globally. a the With for at would commercial technology, help And project especially very with traditional point, our very the side relationship. small us I group this lot than of we thought we A to leadership. good, call full continue like Basically, with see on So now based

both. So we’re happy with

the not pushing But of a tax on margins, which maybe can we to but only it customers we about, that’s the but next going more need progress. more but be the in higher as to strongly on I seems to something generator talk work business. We’re are well on being again, notable. is a relationship deliver we couple leads, actually, believe well. that to there’s And that quarter scalable new which

have far M&As, As as new cash. obviously, we

so of has even tuned. very the was We’re are just strong to looking in next And pipelines. year, there more upside, we one our lot opportunities. expect our add earlier see We to more obviously, say didn’t we look a in guys I of would but guess to some go from maybe stay you segments I our very experience company, due if acquired supposed that would we’ll largest the sooner. our M&A segment, But at the strong he what pipeline. talent, carefully to which public acquisition can a segment.

We for the differentiation in continue look to verticals. the

on engineering. supply, to full broaden course, of the positioning were perspective, and drilling partnerships less from and service which our location outside continue the things market including of We

So it to me. looks very exciting

Ryan Potter

Okay. Thank you.

Leonard Livschitz

Thanks.

Operator

for we I’ll time, call remarks. question-and-answer to of this have Leonard session. now reached the the back closing the turn Lisa over At end

Leonard Livschitz

Thank for joining us the you, on call everybody, today.

quarter third the of across superior we’re ahead significantly expectations. results were and Our board our

the a we continues XXXX quarter, giving I you. entered business to environment be As the we and in three enthusiasts. into renewed months. fourth demand to look you with Thank enter robust, in forward update

Operator

conference. This today’s concludes

time. your disconnect and Thank day. this your lines may you a great at You for have participation,

Grid Dynamics (GDYN) 7 Nov 212021 Q3 Earnings call transcript