GDYN - Earnings call transcript Q2 2022 | Grid Dynamics Holdings, Inc.

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Bin Chiang

Good afternoon, everyone. Welcome to Grid Dynamics Second Quarter 2022 Earnings Conference Call. I'm Bin Chiang, Head of Investor Relations. At this time, all participants anr in listen-only moder.

Joining us on the call today are CEO, Leonard Livschitz; and CFO, Anil Doradla. we the remarks questions. to prepared their will call open your Folowing note, recorded. being conference Please is today's

Before I includes earnings the discussion of the will with financial we risks that filings and release your contain everyone begin, outlook SEC. as are the forward-looking and would questions. like and Such other statements. subject to uncertainties company's This answers our statements and remind business some to to today's in described

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

will of Relations call over now You all the can Investor I to Leonard, in section our have find website. just CEO. our the I turn described of the information that, With

Leonard Livschitz

verticals. [indiscernible] the of exit Russia. all details Today, our I of Bin. this given you, to while client executed will XXXX QX $XX.X another five activities, committed expand our Thank you we thank the afternoon, the as over to diversified definitely company's and continuing will flawlessly world shortly. been the emphasize marked we circumstances I us results, eighth Dynamics Russian facing that as revenue million, Good months. for which report a and quarter geographically significant past more across exceptional, has these today. joining quarter go are Three the I Grid timely and transitioning history. like proportion I continuing record record of and in want revenue build into the the was everyone, consecutive in are to workforce, well projects manner. months industry now to ago, would

challenges. in More successfully geopolitical ability importantly, our future, our and the strength demonstrating confident our of despite navigate business to the faith the Grid Dynamics' in I'm unwavering capability. customers

also past resilience company locations, includes company's with global the our As we of global It ago. commitment our our word XX% This provide in the fronts new to progressed call, global due On fundamentals, Dynamics' shareholders. The with from expanding shown and solid expectations quarter. customers. the quarters true well insights of adding we shared our reported, multiple quarter the business operations to $XX million, factors. the a new our over business. We perpetuated the have of teamwork exceeded of scaling couple our Grid three outlook quarterly third several for of crisis the revenue of second incredible results partnerships second for which presence and we'll across million stronger our you in with better-than-expected performance from that the performance the and environment, first, bouncing revenue. is the by adjusted testament Russia. months strong is Again, and recently back a ended this and an quarter, the provide demand EBITDA pandemic into results second and $XX.X quarter financial an XXXX, the was

First, our customers. stronger we across verticals demand and industry witnessed

as our billability quarter. Russia. importantly, in we digital interested transition customer services to And Second, disruption engaging this out to we continue had minimum in strong engineering of be around more

with the operations facing will over Switzerland strategic footprint and to offer have office its our our large our To our partner convenient our clients, delivery Europe, welcome engineers talent continue an its to new grew Amsterdam excellent large strategy time in to an of presence. and of zone London the nearshore will world. while nearshore excellence. our across clients U.S.-based expressed interest offer pool in India with and serve operation. Mexican roles centers IT will advantage geographic long-term. headquarters, support will footprint country Europe. talent to presence operations During finally, quarter, one In in continue European will our in time. extensive in a scaling unmatched scale play with as with customer Mexico Poland, India, And in to the with strong our become Mexico and the being ability with Central of Poland, scale pool Europe largest as our

would such ramped the up a our countries also talent are growth Each majority second on by to several the hiring Demand positive were a quarter, share the ones. our engineering This clients. In our trends. global and was of We like was of there several advantage Serbia demand there others. strong. of quarter, the few notable Romania, all these our year-over-year across which in In and customers and with Armenia and you, the trends, growth. and countries offer as some sequential I across indicated and verticals industries unique

nature. reasons know, of are concern have customer on you witnessing macro has the clients no As Currently, we not mind, everyone's And current a are widespread exception. there for in our been recession couple been headwinds. It's more and specific this. still significant

in clients, many at our of and some higher the First, we're digital strategic initiatives are to project the transformation comparison importance involving experience. past given increasingly priority of

Second, new some more for go to to retail our exposure finally several customer, CPG recession-sensitive continuing XXXX continue our from logos we five we support we strategic Coming base. was across geographies. partner business, we industries. beverages up retailer. quarters programs, we're second retail in aggressively of of ramp as Within added our into Of bullish areas. was sensitive new service by of shifting Even momentum. now to a e-commerce our our in the and prospects our United additional the expand one delivery distributor the technology At healthy mix across Logo commentary. well. quarter, not to a friendly sequential and last resilient business, to those customer our as global growth our there larger and segment to customer the logos retail driven quarter a brick-and-mortar grow, In position largest it importantly, us more more to largest Similar One third, a continue strong new be some business. over within And was on away diversified company we retail are as enabled our with as key was this less this, largest States. for operation. several but One finalized the of one customers. year, footwear growth on leveraging We're just manufacturing many. quarter, pick

We also healthcare have and additional logos space. in technology

healthy, play partnerships important wins increasingly momentum I our pipeline our partnership healthy the pipeline saw quarter. front. we logo to third share growth significant In good Our in in some is on in a growth. and second We're roles next Partnerships. witnessing quarter, the quarter expect to and expect the

received from we Alliance quarter, the the During healthcare for project. an award MACH the best

turn, greater capabilities with three Our is competencies are ecosystems some on cloud finally, strengths providers. gaining one We're cloud specifically team the leading opportunities and across and to opportunities. new of enhancing And and focus new the specializations. launch by building the adding sales our this, provider largest our in also partners' a executive prominence enhance of will and our partners top to products senior

Grid the During Dynamics also projects. notable quarter, the some of delivered

we've a integration built centralized technology continuous a For platform. global company,

planned be platform best and work, transparency currently engineering practices Our productivity is to out teams the The speeds significantly system global wholesale order increases for rolled At a engineers also reduce will their not and a of solution only leadership. in manual amount basis. unified orders. on for serves engineering company, among fulfillment. for The a and but over company-wide processing the X,XXX CPG and collaboration standardized interface we system up implemented

the to next-generation build global technology to cybersecurity Dynamics As company, cloud event a a the with helped Grid partner and key security incident management. solution

that XXs solution near a to the the model built offering the and one We're We've the It quantify This process suggest marketplace delivery ecosystem. provides edge from a in company, velocity, cloud-based Our ingestion security potential turn manufacturing major utilizes of analytics. allows and offers. storage estimates. whole me supply and developed machine anomaly solution options to results detection intelligent predictive and and event cloud speed largest Currently, our and client volume, losses migrated competitive QX risk chain analytics. will infinite that, to more to who proper high Anil, of The scale, Anil? high by real-time we With across on-premise visibility across discuss globe. platform. pipeline, in manage the over covers mitigation details. the system uses cost call the the an big let behavior of planning entire to frankly and suppliers system data, cost the services X,XXXs low with the identify learning platform the enables

Anil Doradla

everyone. Leonard. afternoon, Good Thanks,

our services the second quarter on million and better-than-expected $XX.X and industry revenue of million a by verticals. revenue basis quarter up a Our exceeded driven $XX guidance on XX.X% The million in our for sequential was demand to strong was X.X% basis. of year-over-year across $XX.X

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

basis. our of was one a and We vertical across vertical technology second as strength of our customer TMT basis and Our and year-over-year a quarter, new X.X% aggressively largest customers expanded witnessed quarter grew we on second grow Initially, the largest geographies. XX.X% our into during base. XX.X% represented revenues on our sequential

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

we grew XX.X% a basis. X.X% the CPG X.X% X,XXX up offset X,XXX, addition revenue X,XXX a other in ramp quarter and well from a second on a hired in aggressively a new basis. factors. second customer. quarter total came represented our Europe, Our Finance a CPG of increased as XXXX. our the from In year-over-year India quarter XX.X% second of quarter, basis. segment a and on first manufacturing of from basis XXXX sequential was headcount finally, revenue, primarily on exited our our and sequential the up healthcare basis from We sequential revenue represents growth This America. and second the North X.X% headcount growth year-over-year as X.X% And represented up on couple grew in on in of XX.X% quarter locations customers. the across The quarter second during of the the came of and of and our with was by XX% quarter largest and the at The employees

overhead of included down there and were First, as administration exited we that reductions headcount personnel. ramp Russia,

Second, any engineers, down our bench for of war-related which have to grown supply we disruptions. scaled compensate

of we our X% by down headcount through XX% continue XXXX, XX%. driven expand. other and the As we we in respectively. offshore greater half the of or headcount and on second largely was expect a end of Netherlands total our and sometimes level to was XXX to Europe, headcount decline the the of -- year-over-year the of first to refer U.S. the mix percentage At our company's and and of non-U.S. total Eastern quarter. In top locations as The XX.X%, our progress year, year headcount, XXXX, Central the same was remain quarter compared the the X,XXX second to top and or in quarter Mexico were which our second U.S. headcount, customers revenues total quarter, from the XX and headcount non-U.S. U.K., XX.X% as five located ago

a driven have and five ago, XX of acquisition. by period and same top across industry factors ramp, our was respectively. and The XX.X%, the and our customer During was new XX combination top top diversification concentration our five lower diversification a XX.X% included year top

XXX quarter in from year our which in quarter. sequential our second down quarter, was first by had December the decline XXX total the XXXX. in our in acquired During of Daxx, we we the driven largely ago customers customers, and The of business, customers a customers commercial XXX

the generating count customers and quarter the in the a As were only revenue we include who quarter. do customers during not reminder, inactive

statement. income the to Moving

million of ago quarter. in Our or was our year-over-year up quarter XXXX, gross first the quarter profit was or the ago a $X.X million or On XX.X% the the or first other and of XXXX in of during EBITDA depreciation XX.X% levels or $XX.X in largely million GAAP and that sequential from or in from million $XX.X gross of from $XX.X a the million up XX.X% in Non-GAAP up The or geographic million costs $XX.X profit $XX.X from in higher up XXXX, quarter of sequential year XX.X% increase expenses. quarter. quarter. The year $XX from from XX.X% million transaction in during and XX.X%, combination non-GAAP stock-based basis, was the the $XX.X profit quarter XX.X%, excluded and in gross year increase and $XX.X up to million amortization, related related reorganization, or first second XX.X% expenses of operating compensation, XX.X% or and up million revenue was driven were due EBITDA flattish in ago to quarter by revenue, increase revenues. and the

or shares of ago XX based due quarter $XX.X shares of GAAP quarter. million million of to loss a share of of $X.X net geographic offset a revenue. stock-based of was a million costs, second million and per on of GAAP levels a the share increase quarter in organization and share on loss on loss $X.X totaled higher loss Our in of based loss loss compared the million XX shares $X.XX loss and year the count of loss or compensation The based levels largely in sequential year-over-year million or per net to higher $X.XX by $X.XX XX a first

the XX June second reorganization cash cash costs. our or basis in $X.XX and a XX, offset on shares quarter up to increase net our and increase partially a and in quarter XX diluted of per $X.X net from in non-GAAP million, $XXX based from The based were the diluted the $X.XX diluted million from per of million non-GAAP in higher net year of XXXX, largely On in on sequential the year fourth million expenses. the or the the by comparison income was or XXXX on in down non-GAAP levels higher share income to share net During for first we was shares equivalents XXXX. million geographic in per income key revenue $X.XX diluted million totaled the of reasons operating incurred of On expenses. $X.X based the second million quarter quarter. ago basis, flattish first shares revenue, XX $XXX.X $X.X levels XXXX the $XXX.X diluted in non-GAAP million million million income and quarter, ago on of $X compared quarter, quarter non-GAAP operating The share higher

$X quarter, During second credit million. the to we down of of amount line our paid the

in $X the out we to pay the that third accrued quarter. Additionally, quarter, liabilities second roughly in we of expect million short-term

invested $X guidance, a to of in company. the range we Coming quarter be third expect to into million. We the million $XX.X technology also $XX to million revenues

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

count million prepared we XX the range in to XXXX, QX questions. For million range. diluted share the our Bin, expect take XX our count XX my concludes million basic be to and share we're ready be to in to remarks. to XX That million

Bin Chiang

Thank you, Anil.

As of camera. announce turn call, point, at first I that your and to the line Q&A will unmute please name we this go the session on your

comes from from question first Puneet Our Morgan. Jain JP

is line Your open.

Puneet Jain

can Hey, hear me? you

Bin Chiang

please you Can on Puneeth. your Hey, camera? Yes. turn

Puneet Jain

And you state relocation we like should Sorry, completely [indiscernible] nice Eastern of here active like question. really not steady quarter, just a I It's employees from to. to operate now? Europe a onwards? projects Like, behind in is from you away Trying nice like had quarter. or quick expect

Leonard Livschitz

the Ukraine to of from We as area. and of from we scalable a is you. say, very course, diversity behind question, I work reaction look our outside And as optimistically we Russia feel a still a Good as over. more in I from mean Ukraine. very grow workforce and a is in, uncertainties position We traditional bit our from very lot us. operate is Yes, to committed clients. Jain. positive still capability, the than you far region, of a the risk see would the of continue hear there It's know, to statement with

Puneet Jain

months, any priorities might are vertical be have their across the changes or other of from to behavior like more Like, the client clients or client any tech impacted pattern spending seen maybe there in as or retail, we verticals, over different the macro then behavior few verticals? verticals? different think inflation like type in versus you And differences Understood. last environment, projects execute CPG, across specifically about

Leonard Livschitz

There immune, customers of XXX% mean, where There feel diversified to not several We've the We're we world. Sure. considering the customers the we the seen is reality softness. seen we tighten budgets We're but which will other were. tightened which good more a where some already. be We've very difference. are are. budget. I have some is this

If growth. you notice, we're delivering our

not I are because strategically how And before. retail I'm with positioned related brick-and-mortar is who We on also believe on thing the variance than more The One than or are the driven come but to more about back enterprises ever, much again. strategy. will importance the customer is market generally, before, you're sure withstand in execution e-commerce entrenched that question dependent. more deeply somebody e-commerce the the more CPG retail capable this the space

Puneet Jain

sir. you. Thank Yes,

Leonard Livschitz

Of course. Thank you.

Bin Chiang

Thanks, Puneet.

from Tandon Needham. Next Mayank Please question a go from comes ahead.

Mayank Tandon

and Congratulations Leonard to performance. quarter. really coming I Great. on ask you wanted just the about quarter this guidance you. see good Anil, the to second off strong

you for about framework If also, ask it well. 'XX indications maybe does at to initial look as any sort a And deceleration. little XQ any Maybe speak think a you XQ. greedy And about be that. I'll for to call of here, could guidance,

Leonard Livschitz

So a a color to level, on I'm going on the bit high to have then start Anil and guidance. you the I'll more give Mayank, little bit little

we continue under are with where technology remains became as want When and And it we sure to and March from continue focus still indicators, got So The to like world, be big to because, into sure the a look of properly. know, stopped. regardless in We conservative. are the after hand my at by you as XXXX be like region nature, client in offerings. growth conservative, look we make scale. want about you we innovation, other We would ability macro public the at seems hand. know, turmoil responsibly, we we to we react we just company never factors, we that make profitability to go and we and to week

we [indiscernible] believe to are add think in sensitive will variance continuing So the But to Anil path grow. in that forecasting, on I of I specific that terms of please. terms the

Anil Doradla

thanks question. Thank the for you, And Leonard. Mayank,

right, quarter know as the a sequential You're QX we is how all QX strong from which to shapes growth. are, go seasonally, you

parts. Look, clients, summarized we Leonard all an at we look very their and forecast, we lot it of are a in at well. look there think our where moving are environment I mean I

in loss of analysis macro there's So loss any as will customers. plays is and how a is can at business, fundamental. in basically months. see the the we come loss how the It's bottoms no forecast back in we'll no nothing there There best in no there looking clients, and we're of is up this out three Again, look, stage. giving

You're on mute, Mayank.

Mayank Tandon

Could me letting you unmute. me Not now? guys hear

Anil Doradla

can. We

Mayank Tandon

Okay. A lag there. little

a supply follow-up on Just side. question quick the

to all everyone that Given increases these price industry around to is provisions? are your receptive able clients that would be you. the cost offset how with issues in the you helpful. very Any commentary cola that seeing, Thank

Leonard Livschitz

zone, fundamentals. you the the tip of to how their spear. operating cost Of actually start on pressures wanted talking fundamentals, moving and one becomes there one and your variants. zone a cost position cost well The you're side, with there there attracting your on trucking operating tailwind stronger So a scale course, I dollar. there's teams right? from obviously, when are issues driver We're cost little certainly saying talents, to which of issues, are are But is, a the what another bit

key well I for described we earlier remarks. in which believe we countries, So prepared

we more the So pressure. at have mitigation we is cost more talents, always obviously, there look plans. senior When

performance understanding young on we're we them of you, company. quality perspective, customer growing, the a there offered And a are a fairly We the I from the project. of still on high strategic teams and is level fair tell

but client the balancing out not from we on world, comfortable certainly relationships. woods feel and regions, we're the the So, the of very talent

Mayank Tandon

Thank it. Appreciate you.

Leonard Livschitz

you. Thank

Bin Chiang

from Thank Maggy you, William go the your for next comes Blair. Nolan Mayank. of ahead. Thanks question. question The from Please line

Unidentified Participant

a on for guys for We had quarter. you Justin is Congrats on This Maggie. a of nice guys. couple talent. on Hi, questions

been recently. first, talking and So is going in how in progress those I about about know expansion talk two plans geographies we've could Mexico? you India

Leonard Livschitz

more for a Thanks and include growths India, more steady. when and I conflicts India I one more growing. more very location. it's believe university, clients the more I hiring, and zero number we see obviously, With that I strategic relevant. disproportionate it's question. Mexico, but Great. with at the Mexico, see And I see have We're proportionate. more over look will on been with time. is relationship

like little of have Let's us. the through say, for hiring is the at today, through with moment, now, bit to all partners issue because us, not direct got would growth I incorporation, to but go we a had see formality we helping slower an we it's these hoops a than

So that's going well.

overall countries. you catastrophic that, one other we event picture which the have in for role plays factor may The some is of that planned noticed the

the So are not of quality they environment work well the in Ukraine -- team the performs -- and in relocated, well. the to far of other as and I'm delivery efficiency our Most going basically countries engineers resilience of on Russian hold strong.

other urgent demand hurdles performance, we're what see one more continued locations. is the and we be going other India growing, still say, grow. give Dynamics same what this good statying thing The to absolute any accomplish. while And is the the same The Grid quality, as Indian capabilities, you We'll that's for we updates will growth. line all jumped the And same that's with, formality is, we I thing behind. would sure. in So

Unidentified Participant

on attrition. Okay. follow-up, That's my wanted helpful color. I touch to then And for

the are adjust trend what Russia, you out and the if So from how do puts quarter? think there? did takes attrition this exit And in you

Leonard Livschitz

turbulent, thank quite with areas, mothership Well, company. I the in because to well. during hold try his part in think people to the of It's actually in line mean, Anil past. the I slowed it's the some summarized

we managing think lot respect how we a I freight. our

quarters. very our workforce. with Anil in line, for comfortable the if emphasized direction extent. attrition of that voluntary of higher decreasing say, voluntary than increase But But retention I obviously to believe in pretty I not would the I'm So mentioned, reasons, we and other is known some which

Unidentified Participant

for questions Thanks right. taking Good. All my

Leonard Livschitz

course. Of

Bin Chiang

Thanks, [Jessie] (ph).

question from Bryan Cowen. Bergin comes Next from

Please open. go is line Your ahead.

Bryan Bergin

It's afternoon. to here operating good Hi. footprint just first. the you on follow-up wanted see all. good I to

you So are you give color where just us professionals a give the exit see to be? your evolve? some as global mix sense of how going of footprint any the -- I guess can year, And can on you rough just really, composition just you

Leonard Livschitz

know, Well, end the to Bryan, in So work quarter-over-quarter, And little as at boy. is and the we guide a you're year? year, you is company philosophical lot right? this a more there of going the is congrats changes of end the the world, what the question bit When for, and on acquisition. then of

the our India announced you me, emphasized as So From So and our as Mexico we not Poland, strategic Mexico locations. India, footprint, generic we reality right? is, well, that, to know growth. three nearly excuse all today are we call, and as largest that

strong continuity stay very going Ukraine, a and have in We to we're strongly Ukraine. with

year, did Armenia. Russian you going we're where we're certainly we be the as talent But support a that so there, end move fundamental imagine right? next elsewhere, a So actually we much a engineering but today where to question. in be few Our going Ukraine as the can, bump, year? as grow got to It's deserves of and engineers we can by where quite the are

as form U.S. of important, And business, very London also that. Wearing the business around from wanted building resources see folks, the of strategy is you bit be Ukraine tailor remains but of want to growth. were to course, exceptionally because, say stronger as priority And, to little we headquarter more Europe. India, regionally a focus kind of emphasized playing generically more global I role. us, which and the So kind brush down, Amsterdam we're Again, I going that's go. a Mexico, to We more for Poland, didn't strong in priority the can that Europe. strongly mentioned the very bit behind, in we rest, Switzerland. narrowing that I'm in regions on expansion

Bryan Bergin

Understood. Okay.

financial maybe developed trying you've of here On the the front, that margin the understand so and those. to implications partnerships around just some

using as you're perspective, a places new that the From think last consider there just of this about cost result trying to there's flows understanding build go the to talent So established year partners you that? we in like those whether the thing as or financial prior there locations, like here, relationships? through return a India. profitability is model in levels significant to profitability I'm or anything -- need forward to a

Leonard Livschitz

I the development which good about and this to my supplier me you question asked a is side, exciting. thought side. partners you in super down partners business And came

So before, we the you. the alluded fully I'll supplier take on from and it's operational okay, But specifically new, side, partners, as established on third organization. the it's question have breadth

the So priorities growth for the will be direct.

to going for from again, significant financial course, not be contributing. perspective, reliable you chime the overall to to immediate needs, partners I'm have a believe want it's blessed Of in? But I the very impact. But Anil, do

Anil Doradla

always had is directly and Leonard guys. And those there direct as hiring think with so a diminishes. And we too. as said, strategy, also going of partner right, reliance No, directly our also two to in because, pronged on partnering we exactly that's up these employees transfer partner I scale

back goes pockets. our whatever in them giving were So we

Bryan Bergin

Okay. are development it this about have plenty open I'll That's ask Leonard, to do I organically environment? M&A partners. up, you since which in here your corporate potential you you fair. thinking is, know about how

Leonard Livschitz

It's about okay. it's exactly partners, right. All but not

and I is the because is specific, when broader innovation, I the from overnight. by well. life business innovation And where The don't about in acumen on when we're to related critical. as focusing fields, and verticals knowledge core plans the view of at chain, it's have in. the knowledge M&A and look cybersecurity, combination we and supply we're would science, more the is expanding acumen critical So going but related investment very are strategy goes very point primarily to areas fields. expansion a we and And technology capability of build we ambitious more say we for very you enhance It world, talk

we kind in a of area that's primary M&A. when focus So at that look a

the on part strategy, one shareholders. of regional The responsible make but And continue efficient, you be the to going we operational where and also question, health, of to clear, the growth. the for overall, sure it's message it's will the other again very the is from But priorities grow. [indiscernible] is Not the financially to I think we're one from we're want growth. key operation

Bryan Bergin

Appreciate Thanks. detail. Okay. the

Leonard Livschitz

course. Of

Anil Doradla

Bryan. Thanks,

Bin Chiang

Thanks, Bryan.

Ryan from question comes Please from go Potter Citibank. ahead. Next

Ryan Potter

new the Hi, I kind some the and taking for seeing sets diversification the in also you skill recently like India. but [indiscernible] start come question the guys quarter. delivering [indiscernible]. come also to congrats seeing you Are mix? [indiscernible] like across on it you did on guys. And great like are have up your you, exposure locations of some as into India to Thanks clients, want to much you because

Leonard Livschitz

-- trying little a there of bit voice. repeat me a of the the I'm question, variance was let

are the whether India you -- talking So capabilities? new brings in about

Ryan Potter

our Yes, new new because have also clients, skill presence. and sets India we this

Leonard Livschitz

good. Very

today one say is, critical. would I less first The

do to of But think the we'll sure I to before talent. client good have skill Europe that. side, India, what do some we continue the to Obviously, the that bring absolutely blend. have right. do, In new from actually some a see work contingent we we make we terms to

we India of clients, capabilities segments center our certain and the while to which prefer, been with our of U.S. They locations, And for where is are just and relates are. something intending of are part notable center of where excellence excellence. a specific expansion a So we've some very there strong some clients. India

We of almost in And already add the relationship India, right the development building that's somewhere are of like be else will business well. in Hyderabad notably in we're now drives as this in kind of kind Indian today. part innovation value which cradle

answer, not the So yet. first much

one, second so. very much The

Ryan Potter

vertical, on specifically then quarters. it. the pretty there focusing retail strong has in growth Got the past been few And

the up inorganic some of So logos retail? And that on it all, much first some in? are growth? color this is still demand of in a with growth secondly, kind driving new or guess how Is re-scale? existing catch even seeing I growth seeing you pandemic So was come some organic the you're what's clients

Leonard Livschitz

Okay.

or So non-organic first organic whether have non-organic the growth. is you're Anil, part, on recognition? the we in what asking

Anil Doradla

Yes.

was which because one of have acquired organic, so know end was June. so of towards there May, what month is we you So it year revenue Ryan, we roughly, a of as call we $X last month had the million,

it a still and of So we when organic was driven we tests. out, months part couple And was the XX% grew of of you course, of year-over-year. -- extract so had both there north that

Leonard Livschitz

growth So come for second. The right word. back catch-up let a whether know the I -- me the so is is -- don't

Dynamics XXXX. Grid turn think V-shape incredible the made I in return such around a

So broad base clients. we're after very the strongly going there of just

would So diverse look healthy if we on say of Anil from a what verticals. concentration in good strong, hold on still very the clients some again positioned very our I you at statistics,

clients. Of the the course, competitive most is the because environment heading side. because more reduced defensive grow we them concentration broader because business the on clients getting of with not their needs, the specific base catch-up of their But of of a in as of on side, business

seen some hit COVID I've activities after So, the side. on more defensive

remedy people of of prepared. execute of subsequent next how now, cautionary turmoil, plans. story, have with see little which to bit for we budgets some quarters to take we much long. course how the on committed that And their fill, Now continue But right may economic the

best I the of the think that's the growth. to environment describe

Ryan Potter

Thanks congrats again. and

Leonard Livschitz

you. Thank

Anil Doradla

Ryan. Thank you,

Bin Chiang

from from Thanks Josh sir. Ryan.The Fitzgerald. ahead, Siegler question Please go comes Cantor next

Joshua Siegler

Yeah. my deeper current Anil. into execution by Really Hi, start quarter. little diving a the wage to such nice like question. Thanks environment. to this taking see strong Leonard, for I'd

similar are finding geographies wage to recent Specifically, to you dynamics geographies? in you've pre-existing your the entered be

Leonard Livschitz

part the we Well, started that Puneet. in with first with I think question

tax it's wage geographically living, tied of to is, course, various So varying, cost currency, of cetera. customary, also it's various et to the environment, tied but

move from the we on, way. locations goes both it So

-- overall, everybody really talking pressure. think, wage cost pressure is I about

very for into the grow us, young still much innovative world. think we I

price adding impact more just the the the increases senior not and eager they're is a the it's environment one-to-one more we there we're more pressure, go, about it very and on more to wage go. talent, how talking we're and geographies where more actually one you of is all not careful some we doubling you're naturally, sure, So taking When wage every happens learn not I'm just and guys, it's and become there territory, to once get carefully. you It's of for not that's contributing versus the the advantage is wish them noticed. create and much talent scale, why like with countries thing we younger, matter no you over, efficient. you But it for I'm -- specialists. places

machine With are and we with the to the hiring this brand, And that's relation concentration accomplish. of talent, poised is universities the scalability, and wage reputation the of the ultimately your what control.

Joshua Siegler

you've Leonard. drive technology in been and and client logo quarter we color for the organization, ongoing investments Thank you engagements. now talked growth new the your making that's helped Great. about best Last for

give if reinvestment additional this believe on and couple is the could wondering in there continue it this us force sales quarters? to tailwinds Does add of I to next the initiative. do for both business? over room So the you an And the was of update you

Leonard Livschitz

Yes.

for technology Dynamics Grid moves So actually to technology. really

more three the technology which have like investment, prong recent. have one, now is fourth We

So it's understanding depth. and the one, vertical the number

in we So expertise have need are. to where the we matter

one elements part. integration modern with more is second with The horizontal the technologies, what accelerates of

only important open is implementation it's the third going with a is not better with cetera, while software one, analytics, open more been with the we've gap learning, especially developers which that's return. machine the partnership software side on -- partnership the the products, elements broader data number quite of product which where the customer sourcing the is much between various blends prudent. of automation, effication, scalability integration. value and This of the more on the et those becoming the bridges technologies gives the of something The the now with hyperscalers, kind the for The and source of cloud relevant in the

that's third one. So the

the is, one So we small the bit to technology money the the invested first those it's because where but that's small the relationship, script three kind started us cradle. little capabilities. some of companies access more The believe again Dynamics We of swing. [indiscernible] of continue fourth we gives one But of expansion more you delivery path, a on that And innovate. that little noticed notable closer continuous now, probably fourth of continue Grid we technology that to deserve the three company. areas technology a is

Joshua Siegler

much. very you Thank Great.

Leonard Livschitz

course. Of

Bin Chiang

to Josh. further will remark. Leonard gentlemen, for Q&A all we the that be would point, questions. back you, pass and no session today. have now At Thank for closing this the I the Ladies call

Leonard Livschitz

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

would Our the and will, effort Thank goals quarter been results once each every our to uninterrupted, in highlighted look a I deliver again exceptional guidance Grid you working tremendous second continues thank business you three relentlessly much. third very the stated quarter ensuring course, business. like our for and teamwork one and of to Dynamics them giving business shown update and I employees our Grid and again. have of to once their forward months. Dynamics' in have to ability commitment

Bin Chiang

This concludes all Thank you call. participating. conference for today's

now disconnect. may You

Grid Dynamics (GDYN) 6 Aug 222022 Q2 Earnings call transcript