GDYN - Earnings call transcript Q3 2024 | Grid Dynamics Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Cary Savas

Good afternoon, everyone. Welcome to Grid Dynamics Third Quarter 2024 Earnings Conference Call. I'm Cary Savas, Director of Branding & Communications. (Operator Instructions) Joining us on the call today are CEO, Leonard Livschitz; CFO, Anil Doradla; and COO, Yury Gryzlov.

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

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

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

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

Leonard Livschitz

everyone, today. and joining quarter afternoon, for influence to solid another Good Grid reported positive business. you us trends as continued our favorably thank Cary. you, Dynamics Thank

With acquisition More expectations, profitability company, Wall the Our quarter differentiation revenue expect services. excellence. in delivery a There history. and many third record to synergies quarter, in our financial and and to JUXT the in quarter. starting range quarter together, Similar in a U.K.-based quarter XXXX. of strong elevates the are and scalable acquisitions, fourth EBITDA. exceeded I our with the shaping the contributing our started The guidance to company's them results above banking in our have both both and XXXX engineering the immediate which generate new, working of headcount. our highest and trends and the important, addition revenue expertise fourth both capabilities, of Customers, Street enhances Argentina-based our Computing follow-the-sun results, industry were non-GAAP is in third teams Mobile second both were we existing technology to exited our and the and billable are testament

Some today. you notable ones I will share with

remains leadership and the targets unchanged. company's growth, exit technical we around XXXX, our long-term As profitability

the initiatives trends economic year. are and we by of customers In Now, coming This being and demand first the half sense that held a ways, to projects the the of back there to due our range end quarter, were Numerous many third customers were improved in first to the environment, up is for cycles completion. of At initiatives. customers. funding customers, programs across our of witnessed of the set similar to half we urgency witnessed of the demand quarter a is the the demand complete of XXXX, In prioritized many year. trends something our third foundation wide across the key industries.

quarter, new I willing second contribution over continue recall the witnessed we Bottom record that fourth first line, the it of the quarter partnership a for from We beyond. into quarter were the improvements my the and was in is focusing not commentary, characterized and quarters, the sharing expect aggressively their influence a and but we result Year-to-date, demand their to last past steady the couple of XX% total spending. positive by you In outlooks If budgets release and highlighted customers plans, forecast environment quarter quarter more implement on customers plans. to set partnership revenues. revenue. was revenue of third

revenue. on top the X focus for being with X Our paid in hyperscalers largest the of off partnership the

of the financial financial into Dynamics' Computing The Computing reporting largest focus solutions is some on adds them and highly footprint in as a delivering banks known world's Dynamics, institutions complementary addition model. global XXXX, global and to our Mobile for the data institutions. follow-the-sun Each to and current scalable of XXXX, products make services, platform, Dynamics. acquisition for financial and of offering from and deep recognized capabilities. out expands to banks Founded products, to delivery portfolio our in Grid is welcome and JUXT a our Grid company Mobile financial industries, pointed adding unique which solutions our platforms By user in Americas, mission-critical Computing is in reliable, are end-to-end especially transformation, we CPG States, presence clients in the established digital for Mobile risk options demand as comprehensive brings grow. United JUXT spanning now to team Mexico, design structured functionality future-proof manufacturing, in financial Founded and to specializations suite solutions set have leader in talented Argentina, a Their I and complex equity services. important As derivatives in earlier, offering of a services. Their this expanded thrilled including and ongoing and strategically management leading Grid experience in continue Jamaica. complementing

During the vendor some shared consolidation of our many I last earnings insight across clients. call, around

months, been IT Over of the work number vendors the back past on XX customers have scaling with. they

completed. were operational the technology list customers. and helped During the and join of those quarter, valued, consolidation highly is strategic Grid efforts us a vendor short third excellence of across this for Dynamics' customers partners majority

pleased our growth companies various our industries. customer efficiency topline specifically These for traction Now AI We've offerings and both line targeting designed expanded substantially and base. enterprise bottom initiatives, continue clients. solutions now across are to that our AI I'm drive to Fortune across AI our our have to turning service solutions, report XX significant capabilities and over XXX to portfolio gain

revenue marketing, are product and side, enhanced focused innovative pricing, experiences decisions. On on customer and we the

center knowledge side, our the in enterprise improvements encouraging particularly solutions efficiency On is evolution the cost AI seeing and What's we are management. on our engagements.

a programs, move the and environment. projects production this POCs full by into pilot dominated more were quarters marked quarter as previous significant shift While user-facing

own expectations has move AI assistants rapidly interaction particularly quarter. a of foundational at specialized more context. commonplace Internally, scale. on in conversational invest driven strong as support the representing and accelerators based continue This customer growing enterprise both in enrichment. seeing the building our this more with is services. expanding of areas increase consumer To their AI-based models we evolving search, catalog our grown we're AI-based and to in Currently, AI, reflects X of solutions demand, demand AI-based hyperscalers, enterprise readiness efficiency demand active AI our partnerships AI. through we in opportunities enhances significant capabilities. ensures are with XX% opportunities, coding implementation. and This by than from productivity our teams AI AI become last AI and increasing delivery pipeline improving our beyond to assistance. at implementation engineering forefront This implementation XXX the strides technology We've made to Our the experimentation of growth to of stay the

an catalog extracting management of streamlines that data, data one improving significantly product and solution attributes product by At large Now at from our operational programs let iconic their harmonizing a me automatically quality. few enterprises. AI examples we've share and launched retailer, unstructured efficiency AI

U.S. auto conversation largest we AI that the At industry finding enhancing part provider, ability processes. knowledge an showcase connects of a For intelligent conversational employee These AI on and across auto parts we AI beverage and operational This diverse verticals. access internal to assistant capabilities, drive developing one improving solution our are with meaningful focused implementations knowledge recognition customer the business customers incorporates solutions messaging. to advanced that platform one instant of deliver implementing and through visual efficiency. store the corporate streamlining productivity both associates company, and are largest outcomes by part experience providing

growing in large quarter global AI which enterprise confident and and we is as the a ecosystem. are ahead, implementation, look some a and X third expanding remain a the leader hospitality Number our enterprises. Of In to several were in I we positioning one, signed in pipeline by product one we food quarter, trends we want there logo notable new distribution supported As partnership signed the of ones. the logos, momentum. company. these customers In quarter, share

of and closely positive joint efforts engineering marketing, critical part in grocery is contributing one platforms retailers collaborating partnerships sustained response SaaS These one to another and such of modernization, hyperscale data X Europe. growth, And broader shown quarters company. into allowing XXXX. providers. services, an the an in Revenues commerce, first largest trend, as automotive driven our total and range is across have in by digital opportunities. span we're areas tap of to one even with of revenue application this In Another Partnerships. XX% us strategic investing and the sales

solutions. are footprint, engagement platforms we're our India seizing as artificial these in opportunities and our in generative our further intelligence seeking deploying To and as partners and demand AI advanced and for strengthen emerging across rise. actively enhancing critical expansion. generative hyperscaler channels for clients AI accessibility areas Additionally, accelerators AI continue to AI marketplaces,

been and recently of business a the Bangalore, top strategies large our hosting We're of joint with our Indian in global of relationships strategic GCCs. countries the division X expanding increasing follow-the-sun headcount, European our to a to revenue, team, footprint a our is integral our operation. European in innovation India-based with now framework and is an be continues India, delivery technology scaling location With We're dozen accounts. all than of attended We're more our with our growth. now forum business. is India locations. to scaling our its roughly by provides with also Europe services. has global successful strategy our mid-teens global hyperscalers addition GCCs, go-to-market across it our by model. our third part Our scaling

customer transformations. AI In platform the us journey trends assess their solution are on with us data part a are only year. and significant We is for clients e-commerce commerce transformation, a auto multiyear cloud BXC preparation business retail also AI platforms adoption A QX, major will on migration we U.K.-based distributor. building engaging support to that this AI witnessing major their not composable engaging in capabilities but launching for

consolidate towards landscape modernize and technology XXXX. working them helping are complex further We into their

a teams the reliability. The over a do has maintains within successfully The quarter, some global and production enable the to organization. With and starting will any to results record compliance incorporates results goal across call let their management harm tap enhance and transparency by Grid a system user search payment enabled the Olympics improve for physical for company implemented was and a which users with provide feature of system new with solution to leading discuss of multiple technology card. to customer the that projects. no more withholding password-less by major across complete retailer, of that, aimed times their A business which our of analysis user cross-functional relevant ensure shopping QX on time datasets to adopted in feedback. The months. to X rollout centralized datasets result the our trail NVIDIA Grid cannot completeness biometric identification to fingerprints implemented is technology overwhelmingly over advisers. or sought checkout facial the Grid current enhances stack. as ensure information. by requirements. and workflows. contact. understanding who financial U.S. information. Dynamics' experience serves Summer successfully privacy and and confidently accountability. DIY to authentication the business prioritizes financial its using enhancing the been The We work the a concept A services financial monitoring in This AWS advisers' the leading customers underscores leverages standardized It quickly securely teams turn regulations. minimizing clients' Dynamics XX,XXX from notable We UI data changes, in in a recognition accuracy accuracy contactless investment underway authenticate meet delivering also This positive solution Dynamics payments correct upgrade intent company comprehensive launched me purchases to maintain X,XXX web internal and portal biometrics-based Anil, The leveraging more on Grid system phone most audit securely proof introduced recently enabling of consolidated provides During delivered cutting-edge online with method details. system, than solution widely This data regulatory stores a with application impact reducing and Dynamics solution to such a operations. experience standards

Anil Doradla

Thanks, afternoon, everyone. Good Leonard.

expectations, non-GAAP our results EBITDA. quarter third revenue as were exceeded solid on both and we Our

of was that million ahead the a we During guidance our record and of $XX third million revenue of $XX range to $XX.X million. quarter, recognized organic

of strength that of range and existing results Our operational $XX.X non-GAAP million. The guidance included customers efficiencies. a driven by better-than-expected million EBITDA our combination and of $XX.X million and from factors exceeded new were $XX.X

of During our and TMT largest at the the XX.X% XX.X% X were retail third respectively. our and quarter, verticals revenues,

and vertical a grew a on and and and our department on retail an largest witnessed a basis, stores. and X.X% vertical year-over-year basis. and grew sequential space Our to last year-over-year growth sequential saw multiple the both specialty retail, respectively. year-over-year increase customers basis, basis, XX.X% a of X.X% XX.X% TMT sequential in we improvement from Similar On quarter, in on home customers respectively. TMT sequential

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

Our a finance and XX%, a vertical sequential was respectively. the grew strongest, by basis, year-over-year XX.X% on both and and on

in insurance a to the result, to share space. XX.X% As quarter from growth last customers quarter, the its the Similar revenues third fintech and increased of in across XXXX. was total

and CPG our revenue Our in sequential third increased remained manufacturing, X.X% flat basis. quarter, XX.X% the on a year-over-year representing a of on basis relatively and

quarter of employees the X,XXX year-over-year total third up Our At the or pharma, quarter and the quarter was XXXX. a U.S. ended decreased represented respectively. in revenues, the on headcount versus quarter headcount of X% We on headcount company's ago X,XXX, third X,XXX basis, health our our quarter with in X.X% And of was of X.X% of XXXX year-over-year end the quarter. and of of the X.X% from sequential total third in representing the and our down year XXX sequentially finally, second total and basis on care the a XXXX, other a up from third X% revenue and X.X% of up basis. a XX.X% XX.X% vertical and

headcount respectively, respectively. X or In non-U.S. XX% the and year versus were period Europe, Our and X,XXX third top the located XX.X% our customers XX.X% India revenues in quarter, XX XX.X%, in and top same a from was Americas and ago, XX%.

second had from quarter in XXXX ago a customers, quarter. in down of XXX During XXX XXX and the the year third of the we quarter, total

by of the some quarter, The Leonard continued efforts to remarks. referred driven which During our the his prepared decline in our added several to of number customers, we was of in rationalize nonstrategic year-over-year customers portfolio customers. primarily

as sequential the or gross $XX.X million from quarter. the utilization quarter dollar and year profit million year of second in and our of the non-GAAP or driven the or million profit, to was a The engineering $XX.X up second XX.X% ago quarter million million On quarter in increase of combination in of mainly and during XX.X% a quarter. from in both higher in XXXX $XX.X the Moving up the in compared gross by $XX.X million ago our or resources. better percentage gross basis, a and or basis statement, to XX% profit $XX.X was income XX.X% levels XXXX a of revenue GAAP $XX.X on XX.X% was or XX%,

sales and Our other higher on $XX.X non-GAAP and or the compensation, XX.X% and increase million or from of a during largely EBITDA ago in basis excluded in of XXXX to up sequential by expenses XX.X% offset of increase $XX.X that partially year to transaction XX.X% the third million stock-based related quarter reorganization, second quarter costs was due depreciation million and $XX.X related quarter. revenues, or amortization, The expenses. operating was the in an restructuring sales, geographic

$X.X to was per based second a or share $X.XX of million based count the on XX.X compared million the share share $X.X count of in diluted diluted loss million in the quarter ago $X.XX $X.X per $X.XX and Our of million million of XX.X income third shares diluted an GAAP year million share based or XX.X a quarter quarter. net per on income or share on shares

to levels quarter of million in million and per based $X.XX September Coming non-GAAP and million, the expect non-GAAP million compared shares to $XXX share or million shares XX.X income $XX on lower and in million fourth equivalents non-GAAP of income our diluted quarter. down a quarter, ago $X based XX.X the net provision XX.X on sequential guidance, diluted the gross $X.XX of on income was in net lower taxes. share the to from $XX $X.XX from per XXXX, $X.X cash On diluted quarter was XXXX. higher stock-based Our quarter million to or based income net we per in million totaled profit, to million shares in GAAP range year cash share third million. second of $X.X due revenues increase compensation the basis, second or be the On XX, our $XXX.X

contributing our total recent expect of acquisitions XX% the revenue. We

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

we remarks. XXXX, to range expect of count be share to million. in our to million million my of basic XX QX and share the range our For count prepared concludes to be the XX XX million diluted That in XX

to ready questions. are We take your

Cary Savas

Anil. you, Thank

this and of Q&A your I going from camera. go from come is question into the name. yourself And that will unmute As first we on to please Mayank At the announce point, Tandon turn session call, first Needham. your

Mayank Tandon

Congrats quarter. on the

clarify, M&A related, continue I quarter quarter. of then few And the your last if comment for on growth in in missed can me quarters. last in sort strip sense, revenue be you organic future of want it performance color then the M&A, several just from of your the would to from I Any what Let contribution a we sorry, Why on quarters? fourth terms continue? next given just out expect quarters the you get not terms just fourth the would helpful the the in this outlook had in to

Anil Doradla

you billable we number of I thing most had QX. to of Mayank, you QX as said the working to go from some have XX%, understand grow will we Yes. the QX hours, think from time, important headcount Now QX is right? the that the to

of going working billable which part around seasonal day the underlying we of year the we're at moves course by headcount, foundations, the as into look is the the you exit. end through time driven If at of as

new continuing. headcount, existing billable the customers You'll see some customers, variations, but are

Mayank Tandon

it. Got

to clear, on anything the continue based the on there's the a sense in sounds climate. if trying can trends, of that Just it organic I'm demand just to get terms be like terms in their year trajectory seen budget companies horizon going budgeting you've the quarter-to-quarter? terms process the or organic of current for maybe could dynamic next change growth of flush that through in

Anil Doradla

I more trends there Look, points to from we some nothing seeing changed call movements. abnormal what that The are or has fundamental. artificial

across year acceleration was not the will not is organic our by As customers. pointed talk Leonard by right? all was driven guide behavior underlying It growth, as customers quarter-on-quarter, we We obviously, our But is by It we into X% results, driven fundamentals. which budget This existing It quarter. get is an the flush. next next board, there new artificial sequential and some in year. a don't in both out, is from driven business. beyond

Leonard Livschitz

Mayank, to I'll add one is October it's make point sure just clear. great more month. a

We are very confident.

have don't guide the in We conservativeness The we details. X guidance numbers, but by all is driven factors. yet right, the

driven fact even both we in we'll more December see It's coming As And on by that's we questions. and to the due bullish we you little QX, previous the bit acquisitions be the careful. unique, holidays. new know, with different other that QX from want we had. collaborate how synergies, from will closed. the has I'm guys we'll Not but to and similar the the more -- we're This talk certain me will result much ask before will And also, sure started sure is revenue to furloughs so who additional a be customers revenue fronts. be

Mayank Tandon

you services around a are Got perspective given It's some bit? even around your it. the seeing stabilize, squeeze in conversations uptick maybe point on with a debate one pricing? the Are want to just demand in? industry, just color headwinds. Can been like pricing I pricing. of clients get what I Any little more of some

Leonard Livschitz

I'll this, right. take Mayank. All

business, not Europe. will He's First U.S., runs bit we see Yury Sizov because Vasily Dynamics. technology questions COO, about few more for you you performance. bring Gryzlov in but it Those color a We'll the also as, on on tell upgrading related differentiation business. are runs Europe. ask do but next Grid we talk colors about have our growing the With little I'll Yury in to more this today. I bit new time will improvements pricing about clients, other a he side. drives the terms of give who U.S., new business on of how Fundamentally, all, our engagements also a only hopefully, people of again technology obviously,

legacy much traditional more pretty the about business, stable. talk You

there that way there's in You and always to -- and middle be as The was significantly. see need can is next good a the we we'll QX, you say. go QX pudding. of proof on QX. every a There's rise again, towards Seasonality works year

new see For at now, run. enjoy and we least good U.S. this see the We improved We pricing stable pricing.

together Let Yury first time. Anil I times speak and for XX Yury? already. talked the for

Yury Gryzlov

Yes.

I add the in just to wanted same it's Europe. think that I

see QX think anymore. that, don't pricing the Leonard see next I business as we It's And see then mentioned, much has we'll fluctuations been and usual as as just QX those stable, pretty now. year. we and right

Cary Savas

me of The next And second, the and give from JPMorgan. question going. I'll comes get Puneet Jain just cameras a

Anil Doradla

We can't you, hear Puneet.

Cary Savas

Puneet. on Hang ahead, a second. Go

Leonard Livschitz

on still Unmute yourself. mute. You're

Cary Savas

come to can We back you. a Give second. it

think going a I come back again. Okay, Give to try it we're him. to

Anil Doradla

the why Just you, so just do you in right, to dial we'll and mobile one why you All in. call through but back don't Puneet, get don't -- then thing?

You Or go phone I'll Cary, you here. to let's the put to call call the on and video. speaker don't and you one, do me have next in. Puneet, just just

Cary Savas

Cowen. turn make and I'll Please comes question Bryan your of -- TD next Bergin sure camera the on from Then Okay. are you

Bryan Bergin

me? you hear can hoping I'm

Leonard Livschitz

Yes, yes.

Bryan Bergin

good. Very

Let's demand start on recovery.

of as And is you behavior? broad-based? that here in that there are from just to any a implications peers accounts? from yearend. as 'XX before sense about particular think of urgency dynamic, subsets demonstrating the the It's Are heard any those programs far of think clients there Or types clients are definitely complete that from just spend types we've different deals. early You as about what just urgency we or of conveyed that potential it from more as

Leonard Livschitz

there base. when see to from too of and about to conforming new accelerated of right scope bit features, on. search but are search with other everyone vector data I the their we to formatting. business good this broader good which it's where start data right? a to open the bullet that's There's data. lot AI. analyzed. this talk the questions. some and done applications, is when broad cases There the relates minority. just happened magic coffers a adjusted. not It clients. to Always in just activities be want Bryan. models stuff, be But to to of clear, a it a on to When properly was, needs planning not get old AI little Hi, would activities, this we to now And know confidence don't mode Not bit conversational be be generally it's Verdicts of not verdict people flush longer-term their What budgets and all customers -- about like spend. it's kind good to lower reach much a and efficiency spend AI, your getting more We that working there They example needs have right properly Assistant, better understand for more needs They a is wants more capability, work. what profitable as cost. is a little proper to the AI just it on money excuse well going that and When part. I programs, -- points with having a a more to it's comes boardroom by related all many the is as industry-wide, activities efficiency And and customers to now could some hugely Basically, on into proof the various for focus just turned demand in course enterprise. are to just very more aggressive. to and you It's mean the of demonstrating be base Copilots LLMs clients and just the what broad capability. the

You're February/April absolutely pushed the the comes Last this more to as most uplift. third started spend year, mid on usually the the year, of early this see of we around see was it it April/May. as quarter. usually when actually right, the But activities That's timeframe. we

Bryan Bergin

Okay.

improvement need front. puts now, continues do takes to materialize, here key to Just into to scale commensurate XQ we expect helpful. needing Okay. to and Or to bench? that revenue offsets profitability as term, the a go near you are here consider That's margin? shift on improvement If we just such profitability in see you as the there if

Leonard Livschitz

numbers adding the new Very in higher, India home big at you everything in a part. to second on becomes good. better you can a more And more have in I meeting, philosophical Anil wanted you. will like bit the has We're He go after But important. numbers. it's by a for you give the torment a on We're you scale we're because efficiency little And get bring codes, your solutions, developed always you fundamental him way. a house and right? regions. client, bit When you accelerators. margin more the the is to so technology it. more ROI little because

perspective know we almost billability when target. was taste very to And third felt quarter We somewhat you unique XX/XX, the at magic the well. were the from as we Now overall went July, of the again, number.

AI-related very a Grid army is own the and And of there is But our But from specialists. of a Grid October I is a visibility. this various investment for bet Dynamics always be training not Dynamics is the We enormous into more function the of it There's -- AI bench. of expend swap not just comes it's good Now functionality. internships, Labs. Bench as University to then well. bench. labs the long-term our and going

end maybe XX/XX are more space. efficiency, this automation the how is not systems. the break investments, other want and for myself bench AI as of like all see me overall of the not how to balance, NVIDIA don't few term, we is see allow the and the return. we short skillset even Our and glorious if which shareholders, down But I I It's nonlinear You, the because Return contributing We can course, in clients, This how do improve guys right? to do this a modernization term efficiency get robotics. day. hyperscalers profit with innovation how contributing. and giving partnerships maybe and to on is true game, is we're taking at various robotics production their longer contributing you immediate why

Anil Doradla

you Brian, is but right? on. to a gist we're factors quarters something it, just working that what got X adding the Leonard There of X, couple ago, are said, this we of that highlighted

doubling internship scaling pricing of Yury of too. that As programs put out, environment helps The business that nature point the And Leonard and we're point price, cost from view improving. fixed to to underlying T&M from together on The We're Leonard to programs. pointed the these out, going things of optimization our Pod improving, our us. All pointed just also helps. is right? India, fundamentals

that against out, has But investments price/cost be what that's element is improving convey Leonard for thing. I so to our is the again, in growth, underlying Now to want business. what the judged pointed

Bryan Bergin

incremental to bigger. And about growth commentary AI structures? you're are productivity, scaling, commentary any are scaling The are investments for projects, and there sure. nuance as of appreciated POCs of us of as kind the more getting programs Okay. work? Just the The more talk far you that as last the now actually AI here. beyond there contracting volume -- science Or question the becoming as same, are changes to these

Leonard Livschitz

still visionary a rare bullet magic favorably a production the and they works to outcome-based technology those compensation of it customers are It very between bids up compensation, the have -- bigger Because trying it's let's base. bit who no The T&Ms. shy limited there into but both implementation, happens time, initiative. occasion. actually sides, There's fixed they're most from part Yes. say, either. still of for a versus the at We're performance-based when ramp programs,

quarters. solutions performance-based efficiency somewhat guys we maybe when methods often, those you about become little change Hopefully, more you result But we do we offering Now more see certainly news there's our make give models more throwing immediately. still clients stuff, which a company We're there, a our we compared. as But well. in starts a upcoming various I I to are to how be actually performance-based. to service can the a we know cautious Not outcome and bit do compensation, homegrown some get that better model being more offer as that it but in different the right? smarter of client

Cary Savas

The next on unmute Maggie camera your Maggie, Blair. please question Nolan comes mic. William of and from your turn

Margaret Nolan

bit thoughts going my on Are I here. some there this year year? you how exit get to a from? Let your you ask markets. but growth verticals might quarter, little know is areas trend any this about then Nice end to particular come me anticipate course And on gave for over where congratulations. wanted commentary as next the you quarter, video the of and I

Leonard Livschitz

will chime Yury right? may today is slightly Okay. GCCs, start I'll vertical India The And Europe, on and and drivers The financial more is in growth in addition to TMTs, payment It's much some X be fintech. for with CPGs Well, have there it actually extent. our different the are definitely, services, dynamics. maybe some unchanged, the retail. business the pretty the to notable we system,

behind. others The other science like guys little bit manufacturing life a and are and

things to potential as a tier big matter on other additions about. upswing very top are financial institutions. of that's there a of There's were you a Europe, and in BFSI. with insurance And what Now talking fact, and acquisition

partners. is factors, I successes dynamic our think see a very what baton happened interesting. in the their is our coming The they is industries, from they on of who of passing doing it's additional to are What happening initiatives are very notable a we X the kind or hyperscaler X lot verticals, the various now the knowledge connected and of which shift adjacent and at Particularly around migration, the actually That going going with of major together. around everything basically in application into into today specific, creates the salespeople but cloud initiatives, is factors now in even the, the and industries. devices AI it. cloud early stages, least behavior, capability a horizontal and various is potential. The major

it's training that still expendable. The fintech. next been right, in new much. but retuning -- are -- come say notable players actually I has you But is And sales, investing there. a are would engineering in so We're We more or existing that players industry-specific year. happening And industries, then dynamic are from services we'll And that's big see Yury, could actually expanding The expansion early biggest The pretty a on. the specialization partnerships tools. with software because new QX, about less providers. more in

Yury Gryzlov

Yes.

we into have a financial kind field. adding on in see Leonard acquired, that's this U.S. are is very beyond and complementary in in well. their And at But that's same. just are to services. the offer time, and -- to fintech of industries right, they clients Just in growth the think to From acquisition They very financial banking pretty transitioning and our I add what that Europe, of to with this very, more offering that the that and the banking mentioned expansion earlier again, again, for of see JUXT, we to expanded as U.S. into synergies financial and specializing and much this the into I same obviously highly Because overall. capabilities potential well will fintech, it's while, area immediate in are services our stable. clients But we a think think I data-intensive area. Europe obviously, high been important. as but JUXT, as perspective, systems opportunities that largest we today, the the distribution accelerates of immediate addition existing go us institutions brings

shift that because particular think I pretty in in beyond. I but the exciting. think QX that's size, the be and We'll of see Europe will

Margaret Nolan

ability made you about salesforce. in Where And mentioned to cycle? Perfect. How past profitability. recovers? we're business investment return as ahead? some do That new those add is in you are set up there the you. are thinking investments ramping as Thank the Are the investments sense. Or your logos well the here? investments thinking on from scale up the to folks Are balancing we demand feel recent Anil, You've makes additional are about in How environment nicely? you you then, those?

Leonard Livschitz

investment makes we canary our significant it with when a the in again, there investment off the upswing, about in lean a is is And of investment. good. times. being a and process. creates the us capabilities Partnership which kind faster. bespoke. mean then biggest talk Technology I good align Remember technology whammy we Dynamics Very technology which the Grid differentiated. is, pays grow always capability when that The is the times capability, and double market

to vigorous fact, good that's associated And of the with certification demand solutions invest. the about investments they they're going our so and us is making kind As sure really of news a partners on. provide with it, matter we our balance

again, want Or with so certain logo the do amount And in that's Because where applications that become individual is especially work can about implementations well clients Fortune still The driven works very rapidly. terms XXX they acquisitions news area. of still I'm so Southeast, planned our the in X we But of in of solutions where a what say clients salesforce salesforce, way. very either rate well. region. the to the our more reachable it's something I every a that's productivity in we virtually most, dynamic, than new opportunities U.S., we're is large return lot the way, that needed. rather and technical good want traditional far of best by a is getting. positioned the come. from remember, that's In comes new companies referrals, Industry of and

areas. $X And we side execution. are the on execution has great, delivery you've the new great. and driven is organization, investment to it's have front-facing more defining force, more management We're because programs, an only we into but the and not no a million, $XX to main we sure from And flawless. do work, on the something, $XX engineering the adding adding time What clients specialized us. do We're in we is the clients. to statement scope. problem train to execution to spend deliberately be client with for we flawless account in getting defining get management in management side. people consultancy in Now background once account make guys right engineering, first always the the all been, engineering milestones. Because on longer and account more this Today, time the How an just watch coming management now timeline, be make to of million, as the and rush on changes investment to is the salesforce work delivery with by take architecture we revenue not has million But background understand before. the align

but for kitchen the lot capabilities. those Now top acquisition it's a scaling question, not small guys of now, I'm giving very right about rapidly a you but about existing with

Margaret Nolan

even you've sense. I public. then since of lot mean, And the a business you've much makes transformed so just That becoming Understood. --

location you with adding incredibly this I'm your strategy imperatives. clients? global as continue and to for company, global your wondering with forefront impacted at has You've acquisition that the on become a instance impacted a and conversations how expansion clients. have as of Maybe Argentina conversations delivery how has comment

Leonard Livschitz

the nearshoring Well, a the I I now clients of -- are United especially of nearshoring same quality, them, in if in have when customer But and U.S. global conversation started talk now matter matters. with as same happened, that business, colleagues. the our was System it's a it's our solutions not in good rush Jamaica. about appreciating way, the Mexican but is Right. the then now And was is in long has no and nearshoring, the they in list America, Well, many it clients, right? nearshoring. been that U.S. right? wanted in performance, they a for money people on and assume always as you you always cost very you a right? being peso so want States. What our declining, company, if bit Good our what. and Mexico, much the is now customers And there we know have to good, talk customers started to team we they different we the time, and same people. had Europe, the India the Latin in traditional approach And not productivity, we as case, Because for happened that,

But first unique. green Canada, shoots we of in have some because not office, is opening now that's Now we yet We're in clients but Canada. impossibility consultants. Argentina kind not have

now who peer see integration in extend education and doing not successful very, to into them Europe, the very to on in just Eastern close. And as mentioned and they're culture, that call industry. right? very they're And was matter, I and strong It's job. it's for us mean, the Colombia had but I into they remember strong there's the to working to with affinity in I like I time, Argentina, clients, a our it them, again, started investing we with treat Argentina. India organization. from that also our people and peers, a I connection They a come long European peers always a them the For may great -- advance.

for ink we the which With JUXT, about we clients positioning already. with we're an contract. from demand a in finished coming clients our a Argentina already acquisition, obtained is for on the pretty dried But before talking Argentina there the organization, the for in while approval the the supply Once cool. U.S., expanding from

there. try again. Puneet Let's is Puneet Yes,

Puneet Jain

you me hear can now. hope I right. All

Leonard Livschitz

We can Yes. hear you.

Puneet Jain

Awesome.

Leonard Livschitz

us. What happened? You tell

Puneet Jain

-- line My know. don't I

Leonard Livschitz

not today, Happy be Because Diwali, but should prosperity. a you because working it's of maybe day

Let's For all right? of it make prosperous. us,

Puneet Jain

strong wife a here. Maybe something quarter. Yes. This This anyway, my But did was a very sign. sign. was

of peers have reported, talking about Many trends. they ask demand. are about seeing overall all me steady your Let

rate growth many What's driving for now about for growth in definitely peers? that digital months you this of tone, are versus You they your quarter, driving you? better things indicate right? What's than XX% year-on-year and what the separation rates growth Your separation grew were your X ago. this

Leonard Livschitz

right? rapidly implementations, story. before become and I'm for learn reports from engagement I more we And regardless make that more matters, AI demand the to mentioned talk which innovative with Size right? solutions certain ramp-up put to especially that's to People where not still may opened you faster. many truly other through is see because I obviously about thousands. some bigger applications. same top people of talking but I more, reality technology about guarantee much The because many, But increasing have invest But told bets And they clients, all are The have we results, read companies, sure it. the a And rush about and good have people door XXX tell more they only early us actually global, one. where it's is about earnings reality the more yesterday, are, we us. they a Maggie, on early. mature the we expectations. and this when projects. need and calls, partner. The I us The concentration, few flawless some is from very happens friends clients, we us reason well-established some my is What execution, are it's we grow extent, things. so new one about as Remember of sit the they some trust sure

not in pretty are well important how very this think fall people to a factors. too. they're notable as in are of holding line extent, size, still we for business. technology, we you fast. the applications in the quicker, next we're kind Europe? also, technology and happened about You more front of that know Yury, comfortable is well, the me, of having some it lay strategic what you to want dollars into Anil combination investment We'll through and in To know, see we're you QX, they a don't Once And of it's cycle earlier, pulling it's and more the larger that. roadmap. okay, we innovation up It's helps, do, times of So more just larger turn but us. I to before of back probably And we live critical Because go well, important also say, always the probably and mentioned now happened right? rebound, we appreciate decline we fast, customer of it execution. talking XXXX, some and clients do in but to stream in I trust measured mention our something you goes, who ramp because are immediate. even The longer wants to something

Yury Gryzlov

just looking and yes, inorganic at strategy Leonard no those aligned as also think I much X I what want to that Every are just well. pretty mentioned. companies, time it's No, with it's acquired, we when -- we that those to exceptions. add

we can to to understand value if bring some nonlinear I that always trying think are us. they

terms technology of that. In footprint and strategy, like things like expansion our GigaCube expertise,

at very also think some those, revenue and mentioned, Anil very, of that's if I And you amount as contributing they're already. important. look

I And of think we bigger that's category But key. go important too same us focused, the if believe focused. very I for players. many stay it's the kind will fall if then broad, we to into we stay of

Leonard Livschitz

of mentioning, worth India. And GCCs is the think not I just Europe. ultimate definition thing also the It's other

recent the fighting The in of extent U.S. Some good, a us call but because organizations the are X In and even we India. organization in is as with as the we their to clients, the us, having India. from areas office there's Europe valuable don't for they all very investment Europe GCCs, have well. major pull in a we're also a was recent. strong growth big European clients trust of our people with some balance thing. engineering and And big best large in a growth talent, position these in big India, curious pull notable from to quite is successful from continue GCCs about good -- Bangalore doing becomes But it's -- but

Puneet Jain

GCCs like clients you're to how and versus work let the are yourself, in-house is especially on a working between vendors? more like that work operations? like between And I allocated their there, yourself, digital ask go how deciding should but vendor me the a GCCs that, vendor with understand

Leonard Livschitz

easier the but centers the perfect you with for -- remember, client, when a base There I comes suppliers, in have job third go naturally and good very definitely pretty another a with is have the are not clients for different may When some stay recruiting Working India, is fierce. not are doing smart, is which mean notable client, this have recruiting, a who are GCCs competition with themselves. like one GCCs we because with will two people in smart excellence guys tasks. they're Yes. the than India. of very But brought U.S. a client in been they have and to you very base know they client. supplier very job very it U.S. broad

to cooperating, But is, well. discussion we're staffing they to company. part some team. what need bit And a time, GCC they're a give was project over we We're of because us we work. saying of you we look, Some want feel they the want so of more be guys, not on a gave as work we a partial say, that. There the

remote we a first a write Sometimes by on narrow driven This with by fewer executives. and we big specific just a us they and so up. guys the work testament But bigger dozen little a down the deep the active way, There's then capabilities. for More in not their to year, than were a competition tech double the business their have helpful. finished offices. There's GCC We is also, a conference of a lot notes. participants. discussion, experts the technical is agree of I'm nice of to sure -- these the There A sent when than but in reverts Bangalore. But come don't -- really gives technology the more of office that bit back bit guys the thing. respect as a just one. extremely we'll you. open locally, XX expertise talent, it next I

Puneet Jain

budget Does Or one that getting from spend, should Leonard, that's -- talked about incremental to result they that. projects, spend in clients shifting on Thanks increase know. which budget or good reclassifying spending clients then you overall Yes. AI the clients? data the all AI projects, No, ready the for in and area in represent this? answers. for just like they're to And are for like in investing

Leonard Livschitz

And don't that's Musk of on you are work, perspective revolutionizing our level. things Not of to which Well, right? goes daily automation, Consumer both, it by stage, AI that walking the the that, what very, they of the a they goes are are regulatory very big demonstration leave there's I obviously, them. the want of right? have society. everybody a few from experimenting, this number applications, stuff. are I in will There changing. they around cost just But exactly guys, the critical assistance, our generative very Elon assistance. things to to gives spend what But increase it They're of they be into to but and specific. most we level AI have clinic, I foundation mesmerized Some you as work. cases, because knows pets a around I so know, having veterinary want I I people this throughput. Robotics robots go and speak, to starts a improve lot clients it. recruiting some want of of -- there's that. into want the the at

the concepts. capabilities, to and particular shifts. now, world of some inventory. look, cannibalize our for like big fewer the dreamers the larger there hone future going the areas the comes skill. where we're AI. over are fundamental, say, And clients would of the like those important if but tectonic of to this of dreamers we more shift Some the we video It's are about because drips future from management of proof a basically a where it's it need that is to it's to with we not the search applications the can't will. more putting only we conversational of the continue not guys, are to new We the certain AIs, positioning doing people talked from And would traditional. software wealth and have revolutionizing But the lot and we more we But bundled with the together. revenue believe investment business significantly offering repetitive. big It's time. data business, development In system, compare into but the mainstream right comes assistance and implementations the a have lot because are impact both has now Those larger

Cary Savas

gentlemen, for closing now over statements. session Ladies for the and turn today. it Leonard Q&A I this to concludes

Just give second. me one

Leonard Livschitz

of Dynamics call within today. on strong reinforce our us and you, we XXXX unique and Grid digital business, position across set you. forward Grid There Thank for Dynamics' joining looking optimistic of confident solid of during results AI for up to to updating I'm momentum our our XXXX. next execution. everybody, I'm future, many are call. earnings Today's the approaches the reasons well solid Thank transformation are you all with be end the our a strengths and industry.

Grid Dynamics (GDYN) 31 Oct 242024 Q3 Earnings call transcript