GDYN - Earnings call 3 2023 | Grid Dynamics Holdings, Inc.

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Operator

Good afternoon, everyone. Welcome to Grid Dynamics Third Quarter 2023 Earnings Conference Call. I'm Bin Jiang, Head of the Investor Relations. [Operator Instructions] Joining us on the call today are CEO, Leonard Livschitz; and CFO, Anil Doradla.

Following their prepared remarks, we will open the call to your questions. is conference today's note, being recorded. Please

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

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

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

Leonard Livschitz

and Bin. for afternoon, you you joining today. Good everyone, thank us Thank

you our seen and Wall EBITDA results, were third and Dynamics the from Street non-GAAP Grid exceeded quarter guidance range revenue within expectations. have As published

company's and projects our base initiatives to our environment demand progress strong level stabilization. garner lot it significant our a of during customer the new was to a quarter. across and GigaCube to of commitment to reflect interest traction as great clients, the with stated across our operationalize continue the macro, continues with There and we it intelligence our [indiscernible].On artificial the points includes This ability results to to the continued Our goals. relentless and momentum activity clients with existing execute

toward months many transformation it this strong they In transformation needs. as for normalized to of optimistic other levels initiatives. into imperatives While competitive, was than more we ways on enterprises to ago. back ways, still than snapback business expecting demand or before digital their not In some remain what business, go need spend three a words enterprises have is to to to crucial I'm need calling spend I we're digital

revenue that three been you has have flattish. past quarters, seen the our Over

customers lows.Going general we the handful trend we the we offset new in trend headwinds XXXX. anticipate the highlighted we existing and encountered in reversal. with incrementally company's from growth the a observed which forward, positive, customers, other of before, As is are This headwind by

Now billable emerging. trend, are positive some at trends the headcount if look to I were

past have rise a billable seen we six the Over weeks, steady in a headcount.

Additionally, summary, underlying for and right the the logos recent billable coming these Last direction, not I direction. three started trend right to incrementally fundamentals existing us the to you be in pointing like in demand environment. continue logos. are in would demand the to new leave again, which headcount positive.So the the thoughts logos Once but least, on from leaves with

of customer the diminishing. across First, is our magnitude resets

the with for momentum Secondly, our is majority business the comms vast new stable; robust. third, is engagement of and

fourth thoughts into more quarter well. the Now the coming we're month I one extended fourth to with and shared than the summary the you fourth as today have quarter; quarter, to

billable Our grow. headcount continues to

activity [indiscernible] to and AI continue from customers handful the Our robust declines is diminish. the

with We and there engineering our a lot our broad technology new including capabilities.During technology AI continue in resources building activities invest including the towards in quarter accelerators of R&D to interest was organization, AI. continued our offering, artifacts,

specialization. for around development. solutions. and the Gen established With engaged for continue projects we projects. global development efforts, resulted strong we AI a that support at the of retailers, comprehensive have our sets include for differentiation AI With To AI across and AI solutions. AI strength to program. our supports.Our During multiple we projects novel AI the always of Gen several of in leading clients document processes with R&D and These completed training be our intelligent quarter, been our automotive spectrum enterprise demand hotel new training initiatives includes institutions, a financial the chains are has Gen technology multitude AI our skill This engineering social Gen

AI from several advanced Our quarters futures. the tracks entire ranges to three complete the Engineers to to more and are which across curriculum. is AI rigorous segmented program, up curriculum takes introductory going through

As Dynamics the more and internal strong our retriever, image partner on AI wealth than we customer based models visualization, AI product language with to research and Grid and design generation are seven a reminder management support. knowledge of customers large engagements employ offering, Gen implementations.With years and guided successful for and applications

to make continue the GigaCube On good initiative, we progress.

GigaCube for company blueprint strategic that is billion a out toward our a lays As know, framework you goal. $X revenue

organization. ties sales the organization our across key CTO we During made and quarter, some

global to manufacturing, trends, several one. continues in to BFS.In customers. us acquisition the QX normal some share the Logo client confidence of the we momentum, industry as a environment. in quarter, focus enterprises third verticals up brings the sign new added logos such of enterprise you believe This is a testament and I want to were total and the large XX. quarter, new In XX XXXX of with pharmaceuticals competency to enterprise the signed We and current However, for on there with further

North insurance the ones product the large supplier, retail company, large include home a a more company mention notable automotive direct-to-consumer of supply to improvement solution office global Some food a a operate company, provider, global U.S.-based advisory and testament spanning our in tax strong we We differentiation the countries, and of Delivery to our location customers. support. value European company.Our America across XX Europe. and bring is momentum

continue center of is We truly Grid a another engineering to been India location, company. a adding also and global testament in which has Dynamics expand

Our our support. engineering diversification embrace sound enables the of change uninterrupted the strategy to for locations clock. Clients geographic be clients the supported and in follow fashion our around

new experiences up started engineering mutual delivery NextSphere recent plants. locations teams and verticals we good able ramp some verticals. implement footprint we the swing, offices We're expanding and for for of We a put a to industry [indiscernible] our on together within in progress to leveraging quickly global going synergies footwear completed across and and During the competencies integration operations time the dedicated commerce our develop and mobile the joint major into full quarter, digital European sales with other made similar we clients.Additionally, activities. in industry across to across European were global have company, across the delivered is business; back-end new quarter, the during in our budget. with

large we're modernization Additionally, a auto we to brand a expertise, modernize composable platform market. our their our the partnerships business.Leveraging expand for a implementing to in commerce and expect mission global company and references, specialty BXC parts

sales have device medical to goal launching and to is a basis.This continue in company, tackle process. over be that partnerships Partnerships; become in dozen long-term is data towards these the a a Generative we an engineering also and AI and of partners scale part large only billion. there For tap the significant the enhance our We vital growth into $X our on partnership as work. whom important related becoming of ecosystem. them initiatives a half governance, large scope we and means to meaningfully efficiency challenges a to to Of individual and currently we're with of increasingly contribute data opportunity have plan reporting efficiency in revenue this

with for Bedrock Vertex Open their developing solutions Amazon Bard AI hyperscalers partnership actively and Microsoft, our AI accelerators extended and to from AI Gen have and AWS. on and we're AI Google, We the from offering, Azure

digital executives quarter, to enhance to This experience, CEOs, to Chief the and effort came marketing C supply our partnership new XX Officer.In relationships. from continue independent commerce in logos, software the aims we we enterprise Product and suite, Additionally, third vendor CMOs growing invest in provide domains. the value partnerships chain, including three in our

global significant a announced we with [indiscernible] quarter, implement and develop last solution. additional Cloud AI partnership In to Google generate

Google on to foundation, generation participate were AI, we platform image where this our Forum, in working large models diligently incorporates that We quarter, have relationships. capabilities. a Cloud's Google's and Next invited been business expanded leveraging that, Vertex on language advanced we Noting Leadership powerful

largest as During of the productivity manufacturing, seamless health predictive solution delivered deep maintenance. to on platform manufacturer goal is piloted delivered The enable Dynamics centers, one and maintenance AI-based solution with to of their recognition, increase Grid and world's a service simplify for projects.In notable platform tire tire The was dealers. with cloud-based for evaluation integration applications. and the based predictable and of some the this downstream is quarter, significantly learning the

digital was technology cutting-edge retention will the will Dynamics more By scalability well The building [indiscernible] scalability footwear channels, [indiscernible] user ensure substantial Grid as a experience their primary over enable platform. distribution and multiple for partner of solution best-of-breed high the and one who that, leading to a implemented In world's framework cloud capabilities.Our technology basis process the new in addressing commerce to capabilities flexibility [indiscernible]. leverage and the For significant key intends centers resource dynamic let computing both technology business turn QX across Anil, savings profile cutting-edge utilization of AWS combines selected capabilities.With one manufacturer, North costs will infrastructure on-premises in transformation allocating drive the products acquisition me Anil? in custom future a infrastructure. native spending. company's client solution call will America be platform enterprise the new that cloud and seamlessly largest as client their to company on-premise solution for results associated empowers of integrating across branding strategy. Grid designed enable intelligent This discuss to a with measure creating XXX beverage applications the data that produce multiyear for company, largest tool in build on Dynamics framework and the customer for program successfully department, we measures efficiency with enhance the to as optimization. This and detail. public composable program At cloud.Our architect in view our European-based for

Anil Doradla

Thanks, everyone. Leonard. afternoon, Good

million our Our accounts. a revenue to guidance on Street sequential was basis. of grew quarter, expectations. the our $XX across was $XX.X range saw last down greater and revenue $XX within we On our majority X.X% Wall a third basis, exceeded million million stabilization year-over-year of of modestly quarter and to Relative

sequential third the and home caution retail retail, TMT of growth decreased basis, basis. and grew from a on basis, our XX.X% a sequential witnessed on On revenues, a improvement, During second and represented basis.Within a year-over-year continued of our customers. X.X% XX.X% X% by a sequential year-over-year vertical, largest such a larger department third specialty basis retail. as TMT, on our we sequential stores X.X% of on basis witnessed quarter, representing areas increased revenues, vertical X.X% some vertical, at we by our largest quarter on

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

At our in X,XXX third health We total XXXX compared revenue XXX of a XX.X% in of of headcount us from readjusted quarter our increase restaurant our of their Our employees total sequential largest sequential XXXX. exited from benefit of logos care, year fourth slightly versus XX.X% should of from this year-over-year The quarter. of quarter up growth headcount of with large company's and on existing year-over-year and finance spending year-over-year and on stabilization, X.X% the X,XXX witnessing of quarter driven was and that a third on strong the said, XX.X% came quarter. And X.X% on remained a we're the U.S. industries. basis.The some at basis total sequential spanned a of the That the a financial third finally, basis.The second from and basis came the environment. the X.X% XX.X% represented represented the XX.X% levels and a in and a third to second segment headcount. they the combination and the current at macro in quarter, an customers in XXXX to and or decline new of as both CPG and on The quarter revenue third our quarter the growth quarter end across revenue, same decreased manufacturing sequential in X,XXX customers of new customers sequential customer, quarter of of by and decrease logos. level X.X% the in technology was X.X% represented other CPG was XXXX, vertical ago from X.X% basis. the up a distribution a on the the basis our This

headcount a XX XX.X%.In America third continuous the North ago, quarter, from located recently the acquired same non-U.S. and and were XX.X% X,XXX Our witnessed top in diversification and XX.X% India XX.X% XX%, contributions in revenues Europe, period from our respectively, was our year respectively. greater customers or five and and We versus logos. top

enterprise basis had we our customers, increase second XXXX ago was from quarter, a up sequential the in business. XXX from During largely in of customers up XXX the and of third in quarter the a total from quarter. core XXX on year The

from shares a third basic $X.X of $XX.X compensation the totaled decrease our the in associated non-GAAP GAAP based the largely million million million amortization, loss XX.X% to a gross stock-based our on the was or GAAP The the Non-GAAP Moving almost on a million geographies year from share quarter quarter in million on increase million with second shares versus XXXX in of ago and shares or quarter, quarter income or million million reorganization of or $XX a share quarter to second combination compared million million $X.XX on on $X.XX down largely compared third for September share of cost second ago remain XX.X% costs to profit basic EBITDA and stock-based XX.X XX.X% related margin the and the based in non-GAAP and cash non-GAAP on was during depreciation or on restructuring a share the or diluted of XX.X% $X.XX or and XXXX third the guidance. basis, diluted year net of in on was XX.X% of based year of in the $X.X geographic income compensation, the new down XXXX XX.X% investments to expenses the $XX.X quarter.On second in and million of year-over-year the based to quarter down the $XXX.X the XXXX. due per balance of $XX and XX.X% non-GAAP expansion or ago XX.X diluted to a sales per income The or shares and a the or based quarter $XX.X net or based XX.X fourth AI-related basis, sheet; compared statement; unchanged year as geographic and our diluted ago that XX, Coming levels XX% ago quarter. count net during the was in sales, million million count $X.XX income to per second loss in year-over-year expenses.On $XX.X was $X.X and Coming quarter from other our million totaled in in second year or the gross related gross XX quarter FX quarter. due XX.X and $XX $X.XX quarter. quarter.Our million million net basic or and headwinds, expertise. income GAAP $X.XX non-GAAP from or from a $XX.X XX.X income significant million XX.X% million GAAP percentage quarter decrease million, was equivalents XXXX, of transaction in the million share both per of $XX.X a in $X down share of $XXX.X in and $X.X basis, of to lower the $XX.X up margin in million million in million reorganization, cash sales of to or quarter shares excluded

revenues million to be of to in million. We range $XX expect $XX the

range $XX to We non-GAAP to EBITDA $XX the fourth expect be the in quarter of million million. in

questions.' prepared For the remarks. concludes in of expect count in of count to XX fourth diluted shares ready share $XX million.That XX to your to basic share my we the range be take $XX million to our we're quarter, million be to million the and range Ben,

Operator

first from [Operator question of Instructions] Mayank Our line Tandon the Needham. comes from

Mayank Tandon

Thanks, Good Ben. on Leonard the quarter. evening, Anil. Good job and

about for imagine few a in Let billing I how the less have and you XQ. with just 'XX. any days think me guidance framework start fiscal then to maybe

ahead suggest has early XQ then XXXX, into of as imagine the days. XQ billing But stability will I XQ. to that part from So look higher you clearly

to you a trying on go better So get as what recovery in into we read XXXX. expect terms of

Anil Doradla

So Mayank, thanks for your question.

extrapolate or on trends observation you You're headcount, is your outlook steady Leonard's right that about flattish increase, with you QX. if comments these suggests billable to look out. our can versus is we And play which expect QX that a from at

seeing So across headcount. foundations the stabilization. seeing of enterprise increased We're the business if core we're board you at our look business,

when we're bullish. at now, look right we it, So incrementally

Now as a one know, Mayank, you do quarter time. at we

in So give lot QX. of let's back months on X.X and a come color incremental

deal QX. So for with just let's now,

Mayank Tandon

Got it.

Okay. for next I Day, go My Gen Analyst the financials. save save for more so that. won't I I'll just my them on question I'll questions there. AI -- focus the of some

is Anil, to tank course, levels the left hiring back come utilization credit the do So you before XXXX? Leonard profitability, related have have sometime to, kind and where does demand then, hopefully, revenue too, when both you the of And is maybe and much crank to in really on how of too, just today? expand -- the utilization FX in up gas

Anil Doradla

Mayank of we've So utilization, a terms in in general. job done good

from within numbers So held obviously And range. it our quarter-to-quarter. hasn't utilization up have changed

As you towards approach we non-engineering we know, put little at our we well as a seen headcount. disciplined headcount we've have place as look engineering in -- bit more

question. right. Now very It's you're good a

unfold, and yes, The As at important we'll, -- talent, we're time, But it's some out. are We demand to again, the of these have see elements. one are it a trends plan of we of course, plays the how on acquisition that. at And quarter looking right? hiring, that.

these got depending we've focused constantly teams upon. some upon are will we're We act now, and countries, and we of on in that have, these all we movements

this So something -- is we're discussing. but yes,

Operator

the Cantor Josh Next line Fitzgerald. from question Siegler from comes of

Joshua Siegler

about digital was your more the spending? mentioned with by to returning three driven grown results. over call, or AI general of past months. discussions on the more you've process a demand some Congrats is you transformation I largely those curious, broader that logos positive Leonard, on optimistic the thought that there are

Leonard Livschitz

weeks and Analyst on we'll have there. that large very AI just much more team New in have York mentioned we'll deep Day, in a -- two brief Mayank Well,

So of this that. little I opener of door will But save a projects. fundamentally, point. a There mystery it's bit multiple at are great

in we assumption financial scale unusual more additional that and the and we because way, there's to some will for technology for the of about maintain senior people. that's capable of retain our also statement internships core who noticed build teams train easier attract we training because Anil You direct kind on potential going juniors people to there's take of large growth with hire address than something them that AI. And more be by even in investment the that's people.So more who

AI, of what project. mentioned time. we one the it is a my rate confidence basically, careful quarter content the of of level, very In on Anil change not at keep people, a terms of but the billable But happens only statistics,

was and pharmaceutical, we're manufacturing, much learning only we more retail in insurance base AI part, the the of so this much so into We're in one and able So CPGs in business. horizontal doing work, life broader but in market We're past recommendations. not complex vertical the to are we're science. in the in expertise more, into going -- doing start our but

of an become always through lot mean assume I to selective. that a expression times little the there a is addition discussions.In we've be clients. I of, deeper more level a We've bit choosers, tough right? So going that, with frankly, beggars been cannot

XXXX, plan going partners on we'd our Now see the who business project. bigger as to complex that carry throughout implementations systems into like of bet the the we will we today

commitment with is our business. to that matched commitment to We their be expect going the

positive me outlook. a gives that complex say, bit more, would little comprehensive So I

Joshua Siegler

right that hear. thinking in an with you was also accelerating as great on give regard? you the there's headcount. to, Clearly, if now and updates the curious But on that's you're M&A I reinvestment about any on And could going billable now how business organic a right update lot to of the alluded environment Understood.

Leonard Livschitz

Yes.

right the tell So market have it's coming the closing there be you comment at beyond it tomorrow. not is, reality we is nice a would tomorrow, but going I'm very to in again, probably But interesting. not to deal yet.

with the deals. We are becoming selective more

America.We best look of and India, part with mentioned, depth course, of at the the are look in We for we Indian clients. at Latin on We We'll start of relationship the Europe. a did not couple giving deals potential of at doing I broader. then up, As it. the look we

We within roster have bigger a engagement. deeper

turn we now we increased, we of more sure We are also to actually to right? is better going what has right capital good, in now. bank the get can call over every say, targets capital you and We're But the right a So becoming Don't to will targets. deploy, like me -- side. attracting I see the I'm selective more bit little day as like imagine make would the the cost a again, I the services. are of advisory that

Joshua Siegler

Understood. That's very helpful. to the looking I'm forward Day. Analyst

Operator

line from TD Next question Cowen. the from Bryan of Bergin comes

Bryan Bergin

two that good want the Yes, good see you enterprises hear to in. bringing the to and logos, to on momentum. you're I start new the

just these change So the talk to point or earlier pace of you those this other attractive in large ramp? when logos will in from logos can year. the quarter in signed begin any some enterprise about of And starting new you some then the really that

Leonard Livschitz

Anil mentioned XX% with what getting more what Remember, are some coming very about factory. was recent Well, additional that logos. a called the old in we talking similar dynamics XX%, I time revenues are start in we're again, Brian, there

Also one mature The fields.So for year thing. inventory happened, logos that's of to start back some more is the they already say, positioning kind competitive deplete correspondent in return of coming of there payouts getting let's older are So back. there are and some ago, development, which happening. the -- their a technology

to one doesn't consistent it logo make by The happen other of is deployment that just big and staffing. enterprise long-term how turn the sure

of coming see more form engagements us. the the in consistently So a are partnerships. that's And again, we story more been good for and

probably bit number relationship sales SMEs, from we more a invested broad-based are white ever, but initiatives.So finally specific a playing educating And of I'm into sophisticated three that's we into getting very on two. more me is relevancy little the heard and do force, which satisfied. as and also haven't clients you invested quite to a our we papers of bit number addition In that, we the

things currently fire three the momentum, with just the invested and So bit a that what start because away. we a not into combined acquisition going got logo accelerators more confidence you've goes R&D on it's all you just

Now traction stability. we see more and

Bryan Bergin

Okay.

Okay. that to your you. for two a have of of industries, a follow-up been here And I'll hear. little key on variable That's good do kind ones more

I about you on So conversations CPG, first clients how tech, tech think and tech then how the can with the comment talk CPG CPG and clients stabilizing. just those that largest the yet? we manufacturing as of large about you balance for Do CPG, there? about the other book evolving? the heard is of have are stabilizing visibility in the And outlook And to business clients of some

Leonard Livschitz

Yes.

logistics more Let discussions, second. see see and It's on easy. good RFPs experienced discussion more overwhelming. is me guys, a job. marketing because also a not time the We the attendance ingenuity, doing -- the we're just discussions but The of they're not team, the relationship a formal we just -- a and start and And we teams broader-based level those with of team. the drought, in QBR with invest

a there's interest of broader for So us. base

So one. the -- just with top it's and not

one, but notable they are in a terms indeed, see difference With with us. more conversations have the of becoming top others diversified what it's we

kind a right? broader of forgot first. And that's So sorry, I base,

Bryan Bergin

yeah. TMT CPG question half a -- of was that large ones, So the that

Leonard Livschitz

Yeah.

other And number the and you contributing very start a extent. supplier are very value well, That's one, another still forgot right layoffs. position I is -- want recently. part there not just us. I people doing the preferred because relationships, force. And won which are one the change.Their and -- there for mentioned something and own [indiscernible]is It's happening. happening projects patient sort and run some change were dominant extraordinary I But -- usually to a you that rapid whole a a win more modest and Remember, some to we'll their so thing. the enough reason the Again, more more again, to me there, you preferred if nothing we it's -- we're for you interesting supplier programs. was that to when giants, capturing be So retain are I

in not more more again, this have that's Now sustainability to that want a it that time a at It's sure make mentioned talk But are the us best. Anil programs you its more programs. [indiscernible] of as one that's deep said for play we change. before, quarter It's we time, hope and what, And much it's to I those inviting important people puts give few relationships. an on few projects, on just the responsibility those really because and not and I dive -- very financially successful. a like

analytics relationship. I think beyond there's much more the sustainable

Operator

Next question comes from from Maggie Nolan William Blair.

Maggie Nolan

your North I a business. larger is to next if wanted curious maybe versus at there's dig comment that looking I'm America, quarters, becoming as between more you're part of well. over Europe into Europe outlook positive nuance that any of how the given couple just

Leonard Livschitz

Yeah.

Europe have and tell UK. significantly the a supplier, grand portion. our in Every from we clients, put bad we are of will in right? lot hopefully the the some we you investment UK businesses, So can we Europe. a but There's more right? of always going distribution because would [indiscernible], investing it's to manufacturing projects a I cycle, allow say a thing we But diversified We're to the early that into insurance Europe. will So larger the automotive in supplier, much good working rolled right? the it's bit similar those Europe.So of are days, terms more now in it business in companies, position plans make the So one still off. be were So with U.S. in thing, I distinct in success when a which

started. projects of uncertainty. there new the of Some that is would bit a But I little say

met plans We back the course, in bit few. addition came extra just Of Middle a from pressure quite well. little as a We I'm Europe puts situation, positive. Europe. the Eastern East, I'm to political positive our I caution a on the main bullish but in compared United with growth on States. be would more more the growth, little in bit my positioning the Europe near-term on

Maggie Nolan

you've just integration incentivizing then force. And wins some just versus going? environment? in And some how the new about at recent helpful. of of this clients it. made Got investments of how you That's the existing sales talk general, you're logos, Can in is hires then new type particularly those in

Leonard Livschitz

Okay. good. Very

opinion, your to Salespeople, story but invite take talk in this. I sales of quite great good the actually We Investor again, right? whole I'm Analyst the So in least not Day, and and also. have we'll [indiscernible] addition you other the my a the to feel about representation is about -- technology, and not one, aspects and going

new As on you by done done farmers, know, So into it work doing relationship.We better. the clients picking expanding and that's account existing we've recently as up that's positioning, in the hunters start on head who we spring have we're brought [indiscernible] right? and And could existing and something accounts. hunting and they a invested, sales well well. quite of United and new better in new, and But people we divide the that States,

never get company, to they on guys like must rewarded the emphasis executive the stock-based different like accounts. I'm regular very itself. performance bets So you on It's more put they Incentive excited or so of on the account about by my people [indiscernible] more very than with Salespeople certainly word see this performance something the I the on driven approach it to very because a management team on incentives as is turning account the their quality of now. when start put aligned would like much performance.Now, disposition compensation.

companies product, it more we'll join Philips more, engaged. in business. coming not again, I and and on hardware. quality my experience I like just But And I the much this the do but XXth, with level seems please the see people back. love old mean I us So big we're that HP not we're of and in is the the in -- an amazing hardware feel

Operator

Our next question from Ryan Potter telephone line from comes the from Citi.

about issue sure line. Not the technical from Okay. telephone

to switch Let's analyst. the next

Puneet Morgan. is one from J.P. Next from Jain

Puneet Jain

And XX-XX-XX past? would enterprise So done that such expect than in nature the and model. Looks companies, work can about you we talk customers XX year? these have like of should but different potential any scope Leonard, you maybe the [ typical of ] is from like like from what this clients the large contribution new are you higher added

Leonard Livschitz

that ahead run have Puneet to Remember So are commitment proof client about and the programs mentioned clients, in but higher the the we we us, performed, and some that commitment right? that it also a not more expectations. to projects people the bit numbers, have Not would a to means longer deployment the the of the required, I we are sure That's projects performance of Well, will survive.Obviously, technology. need of generated make are everybody the right? are before, these pudding.

of but in road comprehensive your partner, promote agreement we make what going Now again, dreamed we Dynamics, with view partners partners cases, sure a And Grid Grid we much point a came to some more what's I many the clients look okay, a want We're from, cases, our with we're maps. where our come you obviously world. we building our in sustain that it's always Dynamics well, value. make -- an to at but go in their business. But about, also

work say had be XX%. year become a good not same X%. go all more not going anymore. you if maintain really would going I it We contribution So things on right? about too course. will it, because on kind ones. I of increased be of It -- that you definitively not that one of to aggressive. be the ramp clients Remember, very up I has year, But level grow.Now expect there, next XX We're recent them, [indiscernible] when slower a next XX, may can be So many acquisition, I will the which to that's are say of would mid that the think some promise will there that because much we're would stagnation, this think to XX quarter,

two-digit the plus with as logos it's to we So growth combination technical always relevancy us recent able programs of capabilities, boost desired middle clients the be expected technical ourselves. should achieve and give the the to the the this from into the presales of clients

Puneet Jain

pricing you client Got potentially into which headwinds year? share your it. thoughts your dynamics, your can and of you base? margin wage peers inflation are could what at And about seeing have many from seeing continue So talked next

Leonard Livschitz

the detailed now [indiscernible] very friend very First going of we much so is your into and action of a in have more all, terms clear becoming year. items next

the why the we for right? be follow in mean There can in Bangalore, -- keep we significant that It's need -- right? the I address still from know and we You contribution implementation. because prove Russia do So to don't right? it's in And city to comes I'm some take the expand was were gives remember in -- don't can noticed why I we that's right? Chennai, moved We need let acquisitions. you is because reason spoke wish momentum right? super-genius center, a have me mentioned I job profile Hyderabad, companies.But the and in where I to to a is. profile If thinking countries it's to to more capitalize Central third India sure good to [indiscernible] to it see India on growing for margin organically, there's that we always organic the margin us I strategy. moved from there this bulk, mean that probably the Bangalore, before Europe, we a continue sound you adding and

maintenance we neither more But is Again, other many the back a we where right? digitized when The influential right? small pools. offices Difficulty] tough, I'll depth a life the so can those XX, So have not to merrier hardest we we have [Technical to control are training most -- in banks. selective is programs, always I my making It's And becoming countries, another on expand in to the the programs, countries. part. we the collect balance It's there's Europe right? some tough calls. now But in love the people thing seen pricing, -- going are.I that's multiple mean started way. go think we're success.

Grid the them and bring really we it how the for then stable least you long-term plan I relationship. that to sure little some But into it, not Dynamics a brand pay to actually I'm then signed We I'm to right? want revenue, they revenue guy, So honest, remains fair be to at going are trying is make too. way [indiscernible] change change interesting down into contracts. client, the and

have projects don't case, because position. But the in some that the not means we proper had there be a want So do of we few to feathers to been could of may start the pricing case invest on investment some of investment, word -- the you their its the customer, me, more and into technologies, I in not the discount. you people because aggressive invest in -- the investment to like ROI,

will we go back maybe if see Ryan So there. and is still

Operator

Sure.

time. telephone you Let your try if line, me try can it Ryan, works. please more see one

So I Zoom panelist. limitation there's for some guess technical

all closing for Okay. call of Q&A will the At now remarks. this moment, that back be I pass for to session the will today. Leonard the

Leonard Livschitz

on Thank us bullish you, call joining I than for three today. was months more everybody, ago. the I'm

is business and to new from continue logos core recent our Our logos rebounding revenues and grow.

are Q-on-Q real company. million-dollar to revenue road a become Our -- goals to leverage map our

goals. are diligently We focused the stated executing on on

each and hard abilities.This every their appreciate to confidence entire clients in employees. of of importantly, Dynamics across Grid is and truly More work from continue company, I contribution the the place testament our the a

hosting and our have event will into recommend November meet opportunity seeing On our in that I and first. We technology you two I will It We team. leadership. all highly you. to demos of I'm will around find plan the Analyst weeks. Investor offerings. AI plan the attend Thank to our Day. to great investors looking first forward we'll to our would in capabilities insightful. be management expanded to you be believe some Generative also the a XX, into insights service the provide delve

Operator

conference Thank you concludes gentlemen, Ladies call. and today's this all for participating.

disconnect. now may You

Grid Dynamics (GDYN) 2 Nov 232023 Q3 Earnings call transcript