GDYN - Earnings call transcript Q1 2024 | Grid Dynamics Holdings, Inc.

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Cary Savas

Good afternoon, everyone. Welcome to Grid Dynamics' First Quarter 2024 Earnings Conference Call. I'm Cary Savas, Director of Branding and Communications. At this time, our participants are in listen-only mode.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.Please note that today's conference is being recorded.Before we begin, I would like to remind everyone that today's discussion will contain forward-looking statements. This includes our business and our financial outlook, and the answers to some of your questions. to earnings and with release subject in as the are company's the and statements the uncertainty risks described SEC. Such other filings

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

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

Leonard Livschitz

thank quarter and Street have range everyone solid for above afternoon, joining published non-GAAP you Good Cary. exceeded expectations you, guidance today.As you seen and of revenue execution. results, EBITDA. us Thank Wall our on we and Grid revenues It our both quarter from was Dynamics' first were another

show witnessed steadily and Our across demand continue goals that and we our is we move growth the of of revenue customers. our quarter, off improving focus to first paying forward stated our trends majority the results profitability.During clearly

first share the revenue not right While the milestone. we outlook on we and their and of seen, is reflected to in the out with roadmaps.In demand the environment to increasingly science this also the outlooks reached point company's engage and for a in industry time programs second significant the back engineers to witnessed quarter, We've billable digital willing crucial transformation and number us growth Customers have highest history. are that direction. their level support sensitive quarter. is And the

in at make the our quarter strategy.We XX% time to our them by secured all to area specialty in Partnerships progress high. is contribution a a market the efforts GigaCube more of go it than in And XXXX. enterprise first with deals one we retail other comparison increased of fourth our with partners. of has to insurance joint is continue the in also focus the vertical, dollar leader multimillion one key quarter, During vertical and X market customers,

is also announce Inaugural be Group We we happy PEAK AI. our recognized our to that expertise recognize achievement their continue Specialists, confident clients offer were recognition digital in several Google our Customers positive course and for to This as its agenda. partnerships specialist on leader the service differentiated other we report. and years.This capabilities and in parties third Everest increasingly a In Services Assessments Google a capabilities independent Cloud to are projects incorporating Cloud our will I'm is that to capabilities which in the contribution. the drive Matrix strengths offerings.Coming an very clear time, validates transformation as AI a area of continued of Services, I'm expect requirements. more across their by of

features. our with engagements. AI institution, quarter. become the technologies projects that to some week, our meaningful same AI in our have Our Additionally, the we're completed customer using go only GenAI systems. project clients, not second the a of in Last financial that website launch, but within has also GenAI we been platform live expect soft time, successfully At internal large At with incorporates and

detailed would let Our me language case demand natural company Grid some environment. will use comments find able related users Grid clients, the to capability information.This Dynamics' and others.Now be visiting studies about website now queries to work includes at Dynamics' make perform more our

IT reasons couple industry. commentary And are my for positive reported some past our across many, more key what in our of results may the of over peers. For opinion, unique that. appear that many Dynamics is makes and than There Grid quarters the

reputation business corporate resulted in to leading trusted the This partners with leadership, as their gain strengths performance consolidating spending cycle, engineering and coupling often us their is excellence and in positions heightened a and in us has IT scrutiny. delivery tightly many at First, prowess technology under of economic the partner, competition. expense for goals.Grid investors current Dynamics' turn clients the

As retailers, engineering was Dynamics an the as for programs. at of partners all one digital of example, Grid X two selected Fortune XXXX, XXXX in

Telecom Additionally, at Dynamics suppliers, company, after dozens all a Grid customer evaluating large applications. existing for choose Fortune they XXX of their facing

new One a of new its installations evolving technologies a scale we're and company's competitive edge. relevance applications and their app that ability rapidly at provisioning.Second, key rolling to for a world, mobile and self includes in adapt out customer integrate define

technological has disruptive innovative it forward. market deep the and are business or efficiency rising must numerous brought been innovate Dynamics by crucial. at through a capital on to position obsolescence. marked the decades.The With costs, of and are relentless past us which enterprises just Grid solutions progression to speed landscape the the but to advancements operations scale X helping the technologies, adapt drive their risk knowledge Moreover, not robust the over change, in forefront capabilities of to

second after and that vendor experience into the this extend industrialized, I institution Positive this highlighted in large in for role to further we institution strategic AI mentioned regarding pivotal example, exercised I save the crucial the billions financial programs.Now underscoring their enhance at the Notably, at We and advisors. that that poised management quarter. coming customer trends an selected the financial were dollars. quarter. assistant both of consolidation capability, one is industry could the advisors financial first second wealth dramatically the As our a when few to of XXXX, of efficiency financial quarter partners implemented before, that anticipate

Customers XXXX.On formulate headcount basis center, outlook as continues continued customer positive internal our CTO quarter and interest. grow. remainder Engineering for the heightened the we and believe completed second look initiatives. into We have of Labs, projects AI Grid factors these Our our activity is multiple up. picking front, billable innovation to

opening were Our accounts are spectrum data, commerce CTO includes new in quarters, researchers and new and the learning, across instrumental and clients. previous architects solutions. that architects AI, machine innovation engaged with Like our team,

the and and guided of Logo is X AI successful and the and internal quarter, company. notable American a research India. One top visits North in visualization, some all success pace the follow applications new more Delivery from had potential our logos care pet customers of image the I'm energy focused across forward in location Dynamics' up to our products is enterprise personal we you large is implementation. and the large quickly clients. have momentum. office retrieval, the a one clients to manufacturing location to signed sun signed One based India, share new provides the American prompt I of and locations. company top quarter, goods on customers. large we Building strategy, looking service the product with Grid the I confectionery growing of is several quarter, leading and been global the Generative and become support. trends seeing one these first accessory company. locations. employ years quarter, sport apparel locations U.S. consumer high reminder, has X opening company a with a Last generation large ones. there the highlighted key rapid were to customers Bangalore in wealth enterprise the in countries health service.In headcount. accounts, first popular In on quarter, is With partner multiple XXXX, offering, becoming and a end believe each scaling our we Grid customer knowledge Of This manufacturer.I As design, want language an the engagements AI terms our and we management, than on key Dynamics one X in our to the multinational of are with in in framework and models in based is to of scale. initiatives global at offshore third these of our

our be high are his the dynamic We of of industry talent to paying America, brought clients continue veteran key with continues in anchor addition, capabilities.European our happening off.Additionally, attract and nearshore our point. lead and to with India hackathons location positive Europe, activities And out operations support India. things I'm and an Poland In quality Latin many remains Mexico talks on internships, business. we to confident in to seeking our universities

steadily is and as strength such CPG. retail diversifying areas traditional business European Our of beyond

Europe. Additionally, the more with spread mainland distributed over clients is the business pipeline of

several For Europe, transitioned supporting we're many within several a commercial auto of rolling successfully our by concepts company, them ESG delivered build parts GenAI initiative have platform modernization a and out proof clean from for open.Additionally, a door energy global of brands company. global across their a team an multilocation customers composable QX, establishing to commerce large continues At clients, we to In exploratory outs. be structure.

a tech and service at for example, For leading their markets. company, flagship building platform a new we're legal

Grid with XX% partnerships that efforts to is an initiatives we status. practices.With continue we're we architecture, partners we company, efficiency.Partnerships. device program in accordance audit and go leading medical market quarter, our revenue the NVIDIA, client of upgraded software the Well-Architected progress our initiatives international of and we overall key Partnerships time. correctly, GigaCube provide strategy. improve share XXXX, Dynamics first they're first least market to status on global major a the to In Partner with platform the with XXXX. AWS enables to hyperscalers. AWS, sales increase In our to go to part our The and the vendors ensuring with achieved configured our a for For At with to in hyperscalers their working its XX% multiple best of exploring contributed at aim made with

some During the delivered projects. quarter, Grid notable Dynamics

project tools to the overall to improve into enjoy its to the app from enabled we effectiveness minutes, of a the independent and predict for of issue time leading with in days better company, the process, the client release testing We release testing communication tools we developed high company, unified improved processes. release client ultimately internet releases enabled which technology each that between submit faster departments. process global was store. enable the client process greater a down collection outcomes. enhancing toolkit the quality to leading able updates a final the leading a and streamline that test interface, and foster This cloud taken priority the apps resolutions to and the efficiency streamlined product.For market client modules, and timing, These visibility the to better that experience. accelerate automation the For testing created monitor help user app of Featuring preparation

dramatically retail we these of multiple platforms wholesale Both platform addition, are the of cost in a clients. to upcoming months. wholesale, geographies digital implemented expanded new of lowers we omnichannel several requirements expected platform. automation wholesale client For which network to that warehouse order channels.In and also the centers of software be interfaces, unifies their serving while This integrating supporting a major platform brand, CPG and an lowers distribution the cost implemented unique fulfillment new

For more will experiences. dealers will more micro dealers Anil project Anil? their automotive aimed manufacturer, enabled turn a we a over that, interactions This at global frontends enable QX comprehensive who call use customers.With to and project deliver improving of began me the the personalized results with and end to let details. discuss sales services to through in AI

Anil Doradla

Good of afternoon, was our year-over-year Leonard. $XX Wall remained of guidance of range basis. On first expectations. million ahead million everyone.Our a Thanks, and quarter on sequential revenue to grew Street revenue basis, $XX.X our X.X% and million a exceeded flat $XX

were our finance growth for year-over-year quarter, revenues and multiple were growth sequential the basis retail X of both vertical, and respectively. and our and industry our witnessed at a the across verticals basis.During strongest, XX.X% on TMT we largest verticals first XX.X% every While the other customers

both TMT sequential vertical a sequential on basis, we sequential a on and On basis retail by year-over-year to basis.Coming sequential year-over-year basis. and from flat decreased customer witnessed on retail. a X% remained in it TMT decreased and grew basis. vertical, flat growth specialty our a year-over-year largest a Our on our XX.X% a remained basis by on

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

growth the first represented basis. other The and XX.X% quarter and XX% of XX.X% CPG in across and financial, range year-over-year On of our an on and revenue, in sequential banking this most on technology, our XX.X% financial that grew a on customer by XX.X% was Our sequential decrease quarter, manufacturing year-over-year largest vertical a offset from a insurance. witnessed sequential and basis.During CPG customers a of represented on decrease revenue a we basis our the customers. of in basis, a X.X% the basis, increase of quarter,

X,XXX headcount the our basis. basis. year-over-year of first legal to total quarter XXXX exited on the in fourth of X.X% up the In a comparison our first healthcare a XX.X% the disaggregated with and decline X,XXX, up a first basis of of quarter XX.X% was quarter quarter represented from on newly and a sequential some Our employees fourth first and revenue higher XXXX. our down quarter X.X% with we headcount XXX quarter, and of basis first headcount of total from sequential in growth of pharma of other due the multiple X.X% U.S. clean And on the X,XXX vertical by in year revenue, decrease a of a energy the in quarter. was to At them X.X% quarter space.We ended company's The showed billable finally, end demand. total versus driven or XX.X% headcount the across our represented on the and strength of our the improving sequential XXXX, X.X% was customers, ago year-over-year

period of year the a X the XX.X%. Europe, from fourth in top quarter, customers, respectively, customers respectively.During versus quarter. XX first down same quarter revenues ago top Americas were Indias XXX XX.X% ago, located our was had XX.X% or XX.X% the In X,XXX headcount first and the and XXX from in non-U.S. year and XX.X%, we a quarter, Our in of and and the XXX XXXX in total

quarterly to some During customers continued which prepared rationalize of the primarily of his added efforts referred our portfolio The Leonard in by income to number driven our to of several the in quarter, non customers, was customers.Moving the statement. strategic remarks. we decline

first a from of million Our or XX.X%, was non-GAAP from million quarter. down basis, GAAP decrease profit and in or down in compared the margin the gross during XX.X% down million on million a quarter a as the quarter related $XX depreciation or to excluded of and compensation, related quarter that XX.X% fourth $XX.X during a restructuring driven FX by was expenses to of from XX.X% XX% margins. XXXX to million $XX.X ago and in or EBITDA headwinds.Non-GAAP combination and and transaction fourth related EBITDA million quarter the basis our quarter. ago ago $XX.X in XX.X% in $XX.X XXXX sales was gross XX.X% or of was versus year largely in percentage XX.X% XX.X% sales $XX.X of million the gross costs the the reorganization, $XX.X from down costs the based million other quarter. quarter was geographic employee profit gross of year $XX.X seasonal or On or in the in or non-GAAP in and first million fourth in $XX.X amortization, year decline increase XXXX sequential stock quarter or due decrease and The The

on million Our of GAAP per taxes based in $X.XX first or million basic quarter basic decrease of compared lower million shares XXXX.Coming in XX.X $X.X based guidance. decrease ago share of in quarter was and a down of on due diluted shares totaled provision ago the by of to levels or shares fourth fourth depreciation quarter and fourth $XXX.X a to amortization. in net $X.X share loss partially March of income second our quarter count XX.X the XX.X million the and quarter, per year net quarter.On share $XXX.X diluted net on XX.X a share the million in cash $X.XX of the non-GAAP $X.XX loss quarter the year million equivalents $X $X.XX count million, On based based year-over-year income $X.XX, on loss based shares in XX $X.X to from or million the XX, was or quarter.The and of GAAP cash share XX loss largely $X.X shares XXXX, per million basis, million compensation income share $X.X to offset on million our net and non-GAAP non-GAAP stock-based basic per compared first or income million or of on a our based million was $X.XX million in

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

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

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

Cary Savas

everyone. Hello,

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

ahead, Our first question Puneet please. comes JPMorgan. from today is open. the Go line of Jain Puneet,

Puneet Jain

here. a And results really of set nice

the growth upside the many such second in environment sluggishness positive ask quarter So given those this drove the data what the continued drove spending sequentially expect in as as first then to guidance? let the trends in and well. You quarter relative in me points What grew industry?

Leonard Livschitz

Well, having didn't our Good come to on you to as surprise us. it call. a

of kind you about the last recall, going continued end when we the of report to of at that results the As talked time I happen. the XXXX, growth is hinted

budgets to So XX spendings. global not you as a really that subsequent I'm subtleties. ultimately, QX, technology of if the at of the the a all companies, guidance companies clamped forward. the growth we We'll major additional lot from for But down for only go despite discuss there still spendings.So Grid around scrutiny is is some be institutionalize bullish last happy on sees months, but those continuous the look Dynamics demand what

up value more obviously, more how area see the predictable business machine But we unique of Now of digital AI nature basically question, to whole relates innovate the competitive modules. tie to management, the opening advantages to comes a the learning, and the this stepping with data important, by into generate the business. some comprehensive side

that started remarks suppliers the staying some awarded who for even a now proposals for clients the we started XXXX reduction the of the the a their other of who've with been which of paying period of business extended time examples notable tying of the And they're of Grid the time kind with of preferred we clients, we cutting of Dynamics with projection work longer Dynamics, off on stable the business are kind of clients with budgets see mentioned because see Grid again, us come. us have and as part edge that dividends more longer-term to being we a of to thing journey.The why or pushing with relentlessly that's paying in So technology some in goals.

Anil Doradla

Puneet, And way across. we come, on characterize outlook. we when the February, And improvements business guys time all we evolved, where certain think in your on met could late building this, the up did upside I the comment we have you as see evolved as and the a

I we showed more the what up Obviously, say while saw results. has that were. So relative it expectations to would that widespread our in

Puneet Jain

that it's No, have I reported different the many other Like it's -- trend just this Yes. results. curious great. like upside because in was companies the just seemed or positive from

me creates Let get coding think more How this to about term, we new for of be AI adoption? opportunities productive AI efforts. ask in growth about years, AI a questions longer beyond so the we like investors given headwinds, should normal like that lot increasing from sector

Leonard Livschitz

time still explore together well, Llama, the knowledge those the the models, Dynamics, the We the source horizontal their disruptive with example, at a basically own with others, right? technical fronts. Grid the But verticalize in models, very capabilities the partnership good of as those of world. more who across only work in is test Meta and for copilots, specialization capabilities, own of engaging of one XX open expand models, the it's models understand domains the right source trainability the the And Microsoft Well, but things And including for for slice.So remain more where Grid if the with models, on notably their Google a appreciate look clients we not customer, the retied apply been the we and general you when don't clients, you way traditional with just believe the Dynamics even know, of in obviously, At AWS. this a this our And this We every of question proposals we have clients, in to platforms, years want we're we're moment, we discuss product talking comes we broad. where we it, world that They talks multiple strive matter, as they solutions, open our and broader papers venues. just like, talking the time. back want investors with about hypotheses. history, disruption -- we version obviously, that what stack we arise. is just the or but with about for -- and like choice of the it the comes Everybody about beyond clarity. white goes innovation. to peers; to not they This multiple of

work their we at to to convert attempts I still not proven to because variances the the into are the mentioning believe with results systems in are innovations, partnership. need build how You actually large.So that them would the diligently those see of forefront

key only hyperscalers, hardware. We have space the players, not in AI but the the actually including leaders

Cary Savas

at Tandon The to Needham. Mayank goes next question

Mayank Tandon

Let the me with question guidance. start a on

So Anil, assumes I the guidance, a end the top nice that sequentially. acceleration of take if

expect this are on uneven off a sustained we guidance, any that, hard formal should in half? this from I predict? qualitatively, hearing still acceleration but sort building know further you're anecdotally climate not what bit clients? Is or it's acceleration you're to little where or giving maybe in color back the of just Just we

Anil Doradla

to say a are official more very guidance right? on you In we I'll Mayank, talk at it's you say QX. the XXXX.But last maybe give Leonard about And beyond But he for are with consistent jump at comments, qualitative. what quarters, one little we the me a made positive let over to and of I we doing. our Leonard, answer right? So if anything time, do let don't quarter look remarks, Leonard's will some trends in the that. Look, into fair want couple prepared more bit again,

Leonard Livschitz

the always my is weight it's Mayank, on So shoulders.

-- let me this. tell I'll So you

fully reflect were the toward we now headcount headcount gearing The to expand. and hire optimize to new demand. able growth you doesn't toward see continue -- the because right We

the and of after got all at just So look billable of it week if headcount, So I is which you constantly right? good. growing week, April, number growing looks new results

are reach main some University audience sure a program, X internal the includes all internship broader to and Grid engineers, Grid the tools goals basically can facets.The to We Lab. we capabilities, of that productivity internally applying of make reach to and

So on prepared we're a supply side, fully for growth.

On That's bullish side, beyond look, the QX. demand very I'm clear.

when fills I that guidance a Now be it's in quarter, of gave that to record kind February range. in the going the

So only you may to without be. speaking, month. we're get some conclusions where we're Again, first the going in

comfortable our guidance, right?And So the we believe will from if I further, crush we capabilities. are market we with our go

Now were whether from people why take But that not was little couple smiling to the market a we're going last time. I some would of crush numbers, questioning the quarters.

got smile. you my Now

our indication capability our business. toward the probably that's best geared technology where is So to

Mayank Tandon

at with a lowest have Could follow-up. history. seen is driving you in to this we Anil, is, the follow And ask should least does look I I about to we've start Then that you quick recent that I that? suit? if square conversations? demand where wanted sort gross improve, What's margins. margins, probably to margins utilization If of at expect pricing

Anil Doradla

your the in model. is There right? yes, So is part, answer the coming leverage to second

that, impacts, XX we Now details, on these quarter impact and taxes trends costs I the headwind. but know on you QX an obviously, the revenue as have are way are, in the with a this was over front not that. long without of had importantly, has seasonally bit margin There's going is year, work a of across pressures you're the some tends you couple evolution. will to every last our across the next little months the some model guidance, have right, being But there we more, Again, parts as the more through just evolves also And from little industry, all you we'll many some a the see more That bit quarters. QX. direction. right seeing over going changed, issues, you and a year and to through of again, has they you to what hit say, see where FX term, numbers move us.So employee-related can payroll-related see the with would it in it. our finer that have even the moving be our And a

Leonard Livschitz

details, more do it. the or want with is if answer? thing expensive is more do So Europe. more the you It's than knows Europe secret. Eastern known Mayank, details want well Central you Everybody okay you're

So now for our that's improving.But business, as right had inflated the we a we actually growth grow significant obviously, well. other with the We thing, of obviously, for in region, is evidently Poland a marginality believe marginality where we're our as striving another the it's Mexico. of the our improvement India, is around there situation. the in the Europe position was the resolution added there with and We associated countries cost. penalty incremental variance in But key peso

quo. now, call, now, current also, our a status broader we more, Anil in adversely our though it I seasonality, see on reflects pick some country reducing me, but to invest catch-up that ravage, will to XXXX in about told our would the to stable not the the Now up. with are demonstrate to quite workforce. into seems But even planted. dependency margin, need model, Ukraine the QX, say stable you have and which revenue we'll we continues believe, remote this continue I will more right I territories.So Sadly, war we what

not this, has we to part investment, the propagate the have critical, which, right? lowered it's the I of We in intending results, margin improvement.The revenue what buy of are only because we then a not or trade-off. the to as do So so other side, technology is business see value to grows, EBITDA our not again, technology the margin

need persevere which long. to flatness, was quite You the

the will true So the you we're bullish, but tell numbers story.

Mayank Tandon

the on quarter. job Great

Anil Doradla

Thank you, Mayank.

Cary Savas

Bergin Cowen. ahead. go Bryan The the question Bryan, of Please open. is comes next from line

Zachary Ajzenman

on Ajzenman Bryan. for Zack

next reacceleration last First question for comfortable caused large foundation new growth XX scale? offering Are past at enterprise least continue recent months on logos, historic that have to here, you demand. clients the one as that stable that in over are the pressure

Leonard Livschitz

right. All

Let me take first the part.

go will Knock the of customer of no is Dynamics. large to this the Anil stable There April, any on wood do We're the think of positive. trend with today understand year. But second it's declining part. I we kind Grid evidence to and things happen. in

with new reduce are expand continue clients But noticed, those market, to the some is of the nevertheless, the a clients. survival their we commercial we did goes actually dichotomy of Well, there guys fittest.So the enterprise in the side of struggling that we'll funding. smaller you small a have too. So bit innovation on, because generate and

the it So at a into bit the gaining momentum of step insurance are to it's got expanding of the life stable not player our positive our but and quite our part fintech retail, good growth, clients. if also into in We business, on lead a major the and first foundation the it goes traditionally BFSI chain. happens science with you look CPG supply just

Anil Doradla

So Zack, different. I'll just building slightly reiterate it upon that,

is Your astute and right observation on.

very And If existing a trends right quarter and point reverting quarters. after both couple you second after underlying look new that has at in of our well, guidance, that ones. the year-over-year to trend out we're of growth reversed terms

that The right? were us, for for clients is moved clients good now. us, and the New needle existing always changing

Zachary Ajzenman

it with technology. on Obviously, GenAI. figure decision-making that as follow-up the what the anecdotes to client pace the We've has to here out also swell. to interest try heard continues impacted then And customers do of

to trend to for If think you're you loosen this happen up? this, do what seeing needs

Leonard Livschitz

Very loaded having entertained for answering. distinguished can I CFO watch. to me Fun you question. with this get

Puneet not that first goes in purely remarks I And benefits we Dynamics sometimes trivial So the very Grid direct when are savings. Grid broad. Dynamics the from mentioned talked the with

by lot they're portion many one kind will when natural anecdotal did We of tell will of Dynamics Grid purely some Time doing process will right? of a AI. done So the solution.When large the how to implemented part, simplification AI, in work a right a combine good things they're now, legal financial work with the of features enabled management savings of search. the be. So Generative vector And comes work. it the the it's which are we communicational almost language of but type We We're customer. doing past. plan, enterprise very the all has have the from of big projects now wealth there

has very right you becoming more So be scale would with solutions may But bespoke without away. understanding of people the model generic results say use the ways, of that the more solidified result model a evident. with custom all see to I the proper if the not been are precise, then the

Cary Savas

line next Siegler question Fitzgerald. proceed. please Our Cantor from comes at Josh, is the Josh open,

Joshua Siegler

you're here. demand if about congratulations a First results could progress as dive little from was perspective. year geographies into that the excited and new bit the on foremost, deeper strong through a particularly you you I wondering

Leonard Livschitz

Well, a as to us. the for critical demand, remains be U.S. market most

So there's no about question it.

we even on in technical centers while. a zeroed Bay scaling Atlanta our are look capabilities Center our for Dallas you actually of We're Gravitas, getting competence at and If in We're area. beyond area. office

some of of trend We the it's of of are companies.So Arizona very And revolutionized are as strongly well course, a the on driven as Boston the software stacks of well the Midwest not side as trend as hardware by where present but following expansion the stronger. major technology clients we the the expansion. U.S. in in the only California our also Jersey,

would But big our of very pick we we Europe yet. in growing approaching first that outside engagement local traditional a growth the influence traction which dividends. up that's to centers technology the our our up centers, global about It's in some that as not the part. India captive growth of through in say, And talking I outside the India just in and of I'm the hiring in happened India.So about become that ambitions starting it's are tangible companies. part pick talking our innovative first, of pay of We small and wins revenue discussions; not regions, sense. that clear. with yet I'm growth States come automotive Europe clients, would see see announced bit manufacturing. consistent say, well. has of the our growth. have, in terms industrial deals. Europe, retail And European of Head So is see I my of below Saying United X part the but And we the We these and both

say how demand that's So there's see environment the I I brushstrokes; a would regionally.

Joshua Siegler

often, there's would currently? then last was far thinking get probably on we And If talked. also since better but love terms of too for I ask perspective your about how been this growth any you're in M&A a curious, I to shift understanding inorganic

Leonard Livschitz

Anil? Okay.

Anil Doradla

see You M&A the we is we when at that the day in pudding when have. is proof end of announced, we the the announced

We there's not strategic liked little have importantly, of very of we our couple a before. If the look be that very If the -- is going months, I deals last what X, XX more certain whether we little did non-strategics fit, and it, revenues. back of high look see to bit to many it the a which capability would We some willing buy be M&A. in at is more we look means you on not last, to -- a in X we're robust. standards through aggressive. unless Leonard bit just cases, going that at are are pointed We you trends, a announce who really it activity, see the feel do did we're pipeline, maybe call continues as to in out, at fit, if analysis it.And months, our

be So we're get the want that this ensure as excuse. pipeline At as not really to going we is there. fit. stage, an the to said, We that I using

the in proof to things I is said, come. have will these We we announce But as pudding announce. the when

Cary Savas

Go Ryan. of question next comes line is The ahead, Citigroup. Ryan Potter Our from open.

Ryan Potter

to capability your prepared sun are Do enterprise share of wallet on are do drivers because since of you lines believe to mentioned earning based solely believe your also your some in of of that What your or more remarks it's share. the approach? of terms You with some believe follow in global the you're you do larger you had some clients this model turning of continuing you've the success? take successes your delivery with more

Leonard Livschitz

of in I earlier, the mentioned our as need that We It's innovation. customers, definitely of see turnaround to the in invest both. a clients bit discussion one of Q&A those

digital, kind partnerships, their But parts been migration still the of that's from have features, some So proven hand, of that. side, the technology those the projects implementation smaller their driven enhancing is AI, successfully. other on demand on a

is same innovation, So defining that's the QX time, when was the right?People nothing budgeting it's time, their it to for. QX. of very budgets start comes the it a if Remember, At in old hard. in else, QX kind deal,

innovation some X us important Now you which what concepts clients, technical they participate some and actually from demand that models well. the some at to the would those happening a we in of the the of of proof and then least cases, works tools or because to the of than engagements QX say actually with project related more the it's time you to has of bids. tail more bit And created in of of for in worked the of kind have kind innovation. very from leaders I the clients small this expansion us technology X frame, And proactive.In not, But the recent history cases, suggest. at be, look more understand

and summarize on stay And growth it's question more. this client you wants to to that a to may not combination we asked, but helps So it, very things answer both, offer are And straight be a us more converting. the trajectory. just

Ryan Potter

on touched strong times In there vertical? particular, the You quarter. the saw couple you a pretty growth finance in of

certain there? the of the see of in opportunity certain So and of projects obviously, could drivers vertical success you're with Is types going the seeing kind that forward? you you comment on then it types of some of clients,

Leonard Livschitz

Yes.

of fintech clients. larger Grid size strategic a growth. Dynamics still the you the scope certain has to it's the And of So as know, a

they So not infinite. are

they're very but -- formidable. So

extent, a some few continued exponential and we to of and that them, So actually, see growth growth.

scalable on on innovation, us allows And teams PODs.So just that but the -- mass. expand new capability source like are to turns not projects Now we're internal work with not our we reaching, fintech creating of I right? development actually a We who not driving combine their successes. people specialized we're tools, continue as We're the which And the a on which ROI would say, a partnership, to open result revenue. based basically given models, in and why? the just a offer will critical

the by So the is foreseeable future. biggest far the impact, and fintech will is continue it for

many, so much which into as start it's The the who other beyond only you broader broader go putting the wealth beyond again, up. things management a the because, more its of less area, investments sales, numbers, and many and evident the money capacity. more and drives various know, I creeping the In sales. It's but like, a people are kind So it automation right? technology belief, have advisers from

breakthrough whole it's to or contribution So see. innovation.It's through the industry, another as about insurance, to of too insurance bit early a little going the our but lag it's we a growth talk

fintech, management, So wealth insurances.

Cary Savas

The Nolan. next question is Maggie from

Margaret Nolan

to patterns for in logos nice new across any was conversion conversion Are about either new You up or the pick base. continue time in additions. to any your I curious conversion the pace there have logo client the bookings of revenue? or in a delays

Leonard Livschitz

because talking budget we're there clients, then a with guys So front. are the logo be When on may ups down tightening platform Every have a double on of in existing between we these clients, right? clients up. about without firefighting pick QX, the stable more quarter, pick and we the existing potentially was work more with trade-offs an honorable existing actually can new acquiring

It's the Now it doesn't on because clients. it's we mean reduce just an predictable existing process. more eye

our we side.We a on So with have for hiring. better AI more approach technology the capabilities the have again, own tools

of helps So with thing. that we And we more. as through on scale can also the so always train the also have some obviously, us new the faster people -- That's board and reputation, we And by are way, them bringing clients we and ever retain, referrals. the pace much big which than well.

partnerships. The our marketing. one through other our the And would third the through one I -- say, marketing, technical

and land-and-expand you business, model from the improved the innovation of each traditional course, So the if going virtually look propagation.But bit bit different get the it's to now are of scalable those growth, from a projects channels, go. scale scale, of and rate some of in those at projects a

Anil Doradla

was us. this talked of in large logos And deals, right? even some one recall helped point, Leonard's with some if prepared And new that Maggie, remarks, adding about you he

Margaret Nolan

And the and me, seemed improvement. of quarter the to it even maybe like, is then theme stabilization slight

pain whether double-click understand better maybe trend of from dynamic to to on the the or the continue of points wanted on here. and you I So and more that not vertical manufacturing there the one CPG to expect

Anil Doradla

vertical, of our moving parts, by know, last and over depends And quarter. that, How are some reverted in the but is good quarters, of has logos. couple things vertical CPG. the every right? a every driven days, of many aiding #X, news know, CPG XX has stabilized largest couple has a you is one the like plays only we more it's that, have the seeing -- growth to other out in but there but you What stabilized cadence there had rest CPG larger Maggie, we our as fair the positive. are manufacturing, CPG, I say of growth we've as had obviously, of it certain -- that are So not mean of industry, to

Leonard Livschitz

acquired, both know the for upside. that field, the don't are we logos they example, guys the from the but mean ambitious. particular word it's tremendous use a and only go I why up get-go, extremely and tasks from stabilization Yes. some I numbers not go but down, of just

the dynamics. not So agree manufacturing, I mask this But bit clients that you. stable with We're spectrum of look the for whole CPG January, may kind if are think you yet. I I example, a they at, February, see expanding.Now of

separate things. actually those I would So X

Manufacturing, So to CPG, shutting some up think quite for and we of industrial a more. work and have guys. big bit I QX those do

work to I'm very, have and bullish we manufacturing, So CPGs very on do.

Cary Savas

session CEO, comments. this for Q&A pass call. now and call to closing gentlemen, I will Ladies back our concludes today's Leonard, the for the

Leonard Livschitz

for everybody, on us today's you, call. joining Thank

improvement continue steady in we the our past, quarter the in theme Our results business. first highlighted

leapfrog of customers. and cannot with technology to levels history the making well. Dynamics overlooked, our positions existing the the share complex enterprises track highly partner.Our we're record current rise business be shift problems While paradigm economic to current from AI of our technology positive effects their work a solving customers competent with and requires and uncertainties and execution way to at of capabilities, new use wallet The on in our focused Grid

the to Thank news earnings Our in share future and bright, next forward all I looks look the you. exciting call.

Grid Dynamics (GDYN) 2 May 242024 Q1 Earnings call transcript