GDYN - Earnings call transcript Q4 2024 | Grid Dynamics Holdings, Inc.

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Cary Savas

Good afternoon, everyone. Welcome to Grid Dynamics Fourth Quarter and Full Year 2024 Earnings Conference Call. I'm Cary Savas, Director of Branding and Communications. [Operator Instructions] Joining us on the call today are CEO, Leonard Livschitz; CFO, Anil Doradla; COO, Yury Gryzlov; and SVP Americas, Vasily Sizov.

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

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

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

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

Leonard Livschitz

for million quarter, $XXX important range, put new a and existing in early and now strong in To we it We and Dynamics company across an customers went a team in just this record-breaking and past foundation a quarter, in million are into quarter. pattern expectations XXXX, by efforts unchanged. In and we These improving has model our continuation for our technical Wall profitability trends business the company's verticals Good demand to from for well X the in I to on the non-GAAP dedication. Coming anticipate public milestone XXXX, history. our will the you, you And pipeline. global saw for Furthermore, revenue our delighted we in perspective, consistent I'm and of This booking achieved seeing was Grid and their the clients. unwavering it were of QX thank annual remain QX afternoon, joining our exceeding quarter. both numerous revenue it improvements I'm fourth carry-forward contributions $XXX another results are that our revenue the several today. we Thank and been fueled industry fourth Grid delivered you, and over revenue. environment. and intact and profitability long-term growth, in Street milestone, in share and was everyone, XXXX. proud and thank highest and targets in own quarters outlook we leadership Dynamics us Cary. EBITDA. of of the achieved

for some of these reached we metrics in highest acceleration fact, of revenue In demand since levels our the XXXX, indicating post-COVID services. robust

a before verticals. growth new deal witnessing also are addition playing focus at in levels record our company from on within again growth that with attained And in in third future strategy highest Partnerships we our we're headcount customers, pivotal once indicator new across achieved customers activity ever After In the end role industry to recent second billable of quarter, and the acquisitions. engineering existing growth. setting QX, its of hyperscalers. a leading contribution a by factoring

top Customers, customers, are our our the continue a which well. Additionally, exceptionally engineering new, our we open of we during the of proportion execute levels provide existing the highest in quarter, revenues, and results. strong to last years. X contributing witnessed fourth to both positions significant And we

we Additionally, quarter, clients. X in enterprise notable signed the fourth

related industry. is automotive one First to

grocery company. And The one of retail one global largest of second the one largest one the group. is auction world's is the third

gaining pleased focus across share to customer capabilities base. Now our momentum shifting our I'm strong are that our to AI AI initiatives.

solutions diverse industries. tailored We XXXX These companies AI have aim offering for and significantly services both clients. portfolio, expanded and revenue specifically growth enterprise drive to for across designed our operational our Fortune efficiency solutions

strategies. marketing, and enhancing product we're side, experiences On optimizing customer pricing the and revenue

in our Improving our improving to XXXX. be trends There management. demand, knowledge several are and side, cost efficiency optimistic existing remains growth on enterprise in the On reasons focus in advancing the will in customers, just are why good increasing a believe partnership hyperscale examples few and XXXX our for of a new partners we strong IT growth focus technology be demand business year. with

Given our year are confidence, a incremental we full outlook. providing

to to growth in of be $XXX growth the support of our For a XXXX, our over strategy. potential million targets, identified with $XXX X range million, we XX% achieve GigaCube XXXX. To we've our priorities expect to revenues XXXX plus

leveraging across AI processes. and our First, productivity business strengths enhance in to data client

and Second, address increasing to needs. the portfolio artifacts technological business of industry-specific accelerators

ensuring diversification me our support Third, partners at Yury? our COO, Yury about finally, hand customers. Talk verticals these leveraging priorities existing over such it fifth, provides manufacturing, global new healthcare. and as focus enhanced in increasing to of follow-the-sun clients. strong with by and industry And finance, pharma more X to Gryzlov. our strategy our let relationship Fourth, XXXX, our

Yury Gryzlov

Leonard. you, Thank

our Let's more in review priorities detail.

I'm AI that are our our strong momentum base. to share First, customer capabilities gaining across pleased

over reflects consumer significantly demand diverse companies across a expanded In expectations tailored both of becoming the This have quarter. enterprise offering portfolio, specifically in customers AI systems XXXX We industries. services we environments. and designed the increase for with our prevalent solutions and identified growing XXX third opportunities, Fortune AI AI-based changing XX% increasingly QX,

initiatives search, and AI systems include top agentic Our optimization. supply chain

unfolds, developed couple over the we've the we of expect past to meaningful into quarters XXXX As projects. convert pipeline

our Second, expanding offerings. technology

customer needs to aspirations. our portfolio driven understanding Our continues and diversify, deep by of

platforms AI, with valued align strategic modern strengths by digital development and core their highly closely and application priorities. Our and our in customers data remain engagement

our develop speed innovative Our positions us enterprises customer organization as value. their accelerators increase transformation in digital investment to well to that continues shorten sales cycles technology improve portfolio investments. This CTO and

industry Third, diversification.

are around-the-clock across with this the in JUXT, strategy. achieved such us, our several and principle, in serve demand our XX to We America, focus reporting XXXX, uninterrupted continues our interest retail of through TMT, in substantially, us have JUXT, we capabilities our I'm high guiding expertise risk This, CPG. banking derivatives financial of expanded and in or expand acquisitions. Their we beyond acquiring offerings. our spanning and industries U.K.-based India. This service. services. In our on industry organically based across in North verticals. convert to and X to structured turn, as gives Our the be the current equity just acquired established follow-the-sun is and quarter to working opportunities footprint to products, complementary platforms, elevating years, fourth highly financial expressed Since enabling our Europe our expect customers In ability U.S. global client those we proud in and geographic XXXX. Fourth, banks have countries, opportunity

engineer We knowledge are investing our globally. and to in committed skills

efforts and team role. In have they their Several the in and roles. Since engineering By introductory Americas, apply our We XXXX. acquired client. Argentina-based year in financial Mexico AI with we enhanced India global our operations fourth presence a In team the United the the delivery with centers advanced engineers expect in develop follow-the-sun last XXXX, partnership-centric already expect top supporting training clients U.S.-based in Argentina, and the and years Thousands become now country talented provide global tracks support program innovative domains. currently our options Argentina, program, Most set of has have capabilities. to significant we industry partnerships. AI India adding comprehensive launching XXXX, customers October Jamaica. to work in innovation complementing continue solutions established skills driven excited X both skills company. computing planning this to scale in a are XX% to captive to are in across as the of U.S. revenue In and that for continue hyperscalers a partnerships significantly. the billable closely to launched us total global on also includes expanded hyperscale see have an this engaged many AI centered partnerships was training. Fifth, will and participating States, up ago, of we're quarter, growing from businesses, they credit in of we our in a with our our operations along our a mobile support X our agency we to client location expanded significantly by team

Our noteworthy by X trends. is confidence in XXXX driven

by being engineering many in partners' chosen greater has enterprise customers. to customers. X our technology by resulted innovation This of excellence commitment our and resulted in Dynamics First, Grid has appreciation Tier global

Second, our evolving. relationships are partner

senior we partners. an third, We are and Dynamics strategic between sales Grid the management now our engaged partners. discussions level, at collaboration at with our and enhanced And at teams more operational have marketing in key

All across industry into programs projects has more verticals. translated into new this opportunities and of global for our entry

the fourth achievements During several there notable and client were quarter, updates.

Let Vasily me now Americas, Sizov. our hand SVP it to over

Vasily Sizov

Thank you, Yury.

During the projects. quarter, notable Grid Dynamics delivered some

enhance of over agentic that brands and deal implementations a of consumers card This a platform. are solutions let the AI showcase how few enhancing significantly large agentic First, are platform me applications measurable basic with move a helping of create connects across sophisticated beverage the These AI largest comprehensive solution experience. enterprises. are offerings we company, to has payment we This system beyond to optimal AI intelligently from meaningful we into one personalized X%. At we results. At product one food a business that AI enterprise enterprises leading product developing automate efficient operations, our AI-driven organization. share designed programs and deliver to expanding at an product our aspects our more examples catalog This distributors, with uplift appeal. descriptions detailed creating knowledge and issuers, a and is efficiency impact companies, platform retailers, is are largest of creating already innovative of various enrichment. AI, creates expected high-quality images team comprehensive generative discoverability marketplace. revenue multi-agent shopping the At demonstrated business implementing initiative Using AI

to projects platform client's leading years our driving addition offerings and process This to the X technology to collaboration focusing to performance to multinational flexibility our banks, performance AI open accelerated market create client, has from market roadmap, source with of with high we giving the In building, the results on notably products, to approach like structured workloads. partnered the up global pricing around from to their and strategy, features, The would benefit starting product enabling advanced top key other implementation specific is This bank largest speeds CPU integration achieve technology highlight products, our X platform their changes. structured appealing also limitations structured product I challenges. quickly compiler allowed end cutting-edge for work the growth. it business launching to of to projects, learning of consistently across machine Instead We are some reducing capabilities. notable working sooner. With much products, various company address implement XX and users another a of and designed to nodes. optimize to create time adapt around this one a

scale at scaling involved operate its to from Another transformation flows. scope and with with and dozens Dynamics restaurant example, locations truly to data potential thousands over their a solution. a system modern enabling concurrent flows Grid data a engaged load The due to with delivered containerized growth management pipelines capabilities. to clients hospitality unlimited massive XX,XXX We multi-chain of architecture scale data virtually pipeline balancing

reduced the solution framework of by migrations, the development pipelines from data client we cycle being cutting pipelines platform. hundreds significantly Additionally, their the teams for of days designed to life is actively engineering used or already to analytics new hours. The it development enhance new for

global focus Now to selected Europe, some A processes. platforms. This partner and data their to manufacturer medical device Dynamics shifting bring Grid were efficiencies business is engagement our there multi-year a expected on strategic to their noteworthy be AI to projects.

turn preparation in working Anil, me partnership Anil? more the with discuss results modernizing to that, the meal quarter of fourth detail. their leading a of will the hyperscalers. With at the platform customer in who we over call are one service let on Additionally, company,

Anil Doradla

Thanks, Vasily. afternoon, everyone. Good

Our range million, EBITDA. and revenues fourth $XXX.X non-GAAP a achieved surpassing on grew our were $XX both record year-over-year We of our guidance results basis, million. of quarter solid XX.X%. expectations, exceeded we XXXX fourth $XX to million quarter revenue at our as revenues On

basis. XX.X% year-over-year year-over-year Excluding acquisitions, quarter impact our FX on basis. The fourth of grew organic on sequential revenues was our a by our recent revenues both on and minimal, a

our recent non-GAAP performance, profitability for by X.X% Our XX.X% acquisitions. The organic million growth It of the revenue both both business our and strength remained our exceeded showed vertical stronger-than-expected $XX.X of and accounting EBITDA of and revenues. largest, million. respectively. in $XX.X driven and The guidance range of was fourth sequential and quarter $XX.X XX.X% million retail from year-over-year

improvement growth During retail, range included we that store home the department wide quarter, and witnessed specialty a customers retail customers. of space across

fintech remained to XX.X% impacted and contributed compared of quarter, quarter as fourth dollar strongest was year-end from combination increased TMT verticals In the TMT recent the of quarter financial of vertical were year-over-year typical of as showed vertical insurance revenues the our slowdown the with XX.X% Our growth customers on our large sequential respectively. third our a by fourth some and well vertical by and XXX.X% respectively. demand the flat XX.X% at finance as financial our acquisitions. and relatively we customers. in performance and The driven a Strength basis

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

manufacturing, Our CPG representing XX.X% by Strength on of both sequentially acquisitions. driven our vertical business this and in was XX.X% organic XX.X% a quarter and recent revenues year-over-year grew by and basis. our

acquisitions. by our the headcount of the X.X% and which our the XXXX, represented or employees was quarter in revenues our fourth in a from up total quarter by company's recent X,XXX of in X,XXX, organic XXX of basis, the grew X.X% vertical, of quarter end quarter our slightly XXX pharma with headcount X,XXX fourth a or versus or X% and the quarter healthcare and headcount fourth on was declined other from of Our XXXX represented and in fourth quarter And of growth The year X.X% quarter. but total XX.X% of in At total the XXX headcount of year-over-year. third ago XXXX. finally, driven vertical the revenues. We ended business the sequential third both U.S. sequential up X.X%

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

down During the of ago the up increase XXX a total had and from XXX during year fourth third the from in we quarter. quarter, XXX the customers, of The in quarter XXXX efforts to number driven decline rationalize mainly of from our in customers by to was primarily acquisitions. the coming continued the nonstrategic customers. customers The quarter was due of portfolio year-over-year our

statement. to Moving income the

or a $XX gross compared On in million XX.X% or gross the XX.X% during third million in million of million the XX% was in year and to the XX% million or up profit quarter profit XXXX quarter quarter. our quarter. XX.X%, $XX.X ago and of from GAAP non-GAAP or the $XX.X $XX.X Our or third in ago the quarter XXXX or basis, $XX.X $XX.X up from XX.X% was year million

taxes up million the and income expense, increase impact million of dollar amortization during related fourth year the excluded partially of further quarter. was stock-based by Our was restructuring expenses. or increase which sequential million to adjusted interest quarter XXXX reorganization $XX.X a XX.X% of XX.X% and due third basis was to non-GAAP EBITDA expenses income, compensation, in other revenues, of for for $XX.X quarter, revenues, and The $XX.X and ago provision geographic a offset the the from or revenues and or depreciation related transaction in and higher XX.X% operating costs largely in on

non-GAAP higher in by of combination acquisitions. gross margin a and levels margin as and of organic lower both the a of was revenues, business percentage recent from our decline percentage a EBITDA driven OpEx, As primarily

based $X.XX of largely per $X.XX XX in On quarter. and quarter. On share or per guidance. cash fourth based follow-on ago Our million quarter to compared diluted or from the and the $X.XX and basis, diluted non-GAAP in XX.X quarter ago XX.X diluted $XX.X based third the share, income a The of on shares million $XX.X in million shares million $X.XX GAAP the diluted the $X.X count non-GAAP XXXX. Coming or our totaled million, XX or share million the shares year quarter diluted on a was our net the million to XXXX. in of or net based by non-GAAP million diluted income third XXXX, was income per million million income on cash the $X.X per XXXX, based year net fourth or third our of up an in November increase of share $XXX.X count million XX.X on on million $X.X cash share, was quarter $X.XX a $X.XX shares per XX, $XXX.X December share quarter $X.X million of offering compared in XX.X income to million equivalents based on share shares in per share driven

first in midpoint we million, we of the revenues revenue For first basis. a be a quarter year-over-year to the to XXXX, expect the to quarter XX% our of growth expect on of $XX At of million year-over-year range roughly million basis. on or grow by XX% to $XX $XXX XX%

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

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

to to revenues full a we year of remarks. basis. a by my on growth a range concludes to For to At of we grow $XXX year-over-year in the million, expect $XXX expect representing the the be midpoint XXXX basis. That million on XX.X% revenues XXXX prepared $XXX of our XX.X% million, year-over-year XX.X%

question. now ready take are We to

Cary Savas

[Operator the first JPMorgan. question Instructions] is from come Puneet going And to Jain from

Puneet Jain

Very guys. quarter good

same what's are reported not in it's outperformance driving unique, kind your your Dynamics today, on is for day. guidance And driving well X your seeing? definitely the result year? peer all XXXX particularly that of peers, this the among Grid peers, that companies, for yourself this of strength What's right? So So your versus so above results peers

Leonard Livschitz

of number let's introduction we've gave we're I relationship been to and as comment relationship the XXXX, the us it's to new I pick continuing in us for well what clients we annual which introduction Well, you, revert AI business of decided the issue the solution up acquired. Dynamics. a hyperscaler and top clients focus And thank colleagues, the just story clients, our consistent with Well, just and in for my we can't guidance. confidence, believe Puneet. scaling on as of back technology, the time offerings Grid

about good comfortable scale our our we We for capabilities. where we about returning feel servicing. with customer important, to feel And feel the employment and follow-the-sun really strategy appreciation about the the So are. of GigaCube back the by comfortable more our

indicators the So all look good.

Puneet Jain

growth which it And which And XX% outperformance, XXXX, vertical? growth? will the perhaps for the be client drive will broad-based, is

Leonard Livschitz

Yes, of course.

kind So I of client them some it not name because would leverage. a give specific may

our CPG. TMT. strong basically, our in So strong we're We're technology in

ramp-up of helps I fintech a in kind us. see business think really we that our good

also pickup the, would say, a see with particularly the our -- We India. in from the relationships clients I GCC and

we're which adding technology, fundamentally, U.S. based positioning. So people, appreciation and both more picking But very comes actual Europe implementations the India. up, from the is a our give of broad too.

been Now long understand, you top time you around the we've see have XX that fully growth We happening. from clients. for that must a

We newer the also a see of pickup clients.

to talk overall, going up? we fintech. TMT, But much how That's see about quarters. something we come new is of next of CPGs, Now do couple business broad-based will a

Puneet Jain

AI And that clients, contribution of your your for AI, it's generative embrace AI think clients Whether code or whatnot? implementation solutions or and for like efficiency should for AI you solutions. revenue like AI you? about How generate we helping about GenAI agentic talked agentic it's whether

Leonard Livschitz

answer Vasily for his Sizov So to will I first let questions. the have

having the call. We have a on him privilege

So Vasily?

Vasily Sizov

Thank for question, Sure. the you Puneet.

becomes now. AI almost component a engagement for So every right

like a program. of year, every about component last it's POCs we if were big So now, right talking like

Actually would to can general attributed bigger it I difficult But that for to very trends. it's of to I there belongs say the tell sure like which be most piece discern AI. X engagements. are So can particular

our strong. all, a of where into interest, historically are Grid that area been revenue cost looking for customers initiatives. represents historically and actually has And Dynamics our ] AI to the generation changing Grid that very optimizing balance a [ biggest positioning. more very, from secondly, very And the big becomes strong Dynamics first So has that's been

is a thing. And about now, If you new book that talking as first AI recall, in about we wrote the everyone XXXX. right

to components, market. both for we us fulfill on having and of grow So which exists a demand, lot actually, opportunity that see the

Cary Savas

Needham. from The Tandon comes next Mayank from question

Mayank Tandon

you guys are your All Leonard and and peers another are the you Great the and for XXXX. put Anil guys today. really guide as and And team. up outlier quarter. Puneet Congrats, have strong said, stumbling quarter

of revenue the sort on you growth. ask I'll of drivers more So

there about As of we that in built then any come in would for that key midpoint growth improvement you these think well? terms that utilization growth? impact XXXX, do underlying think from drivers how as about pricing? recruiting, of How of XX.X% growth And is X

Leonard Livschitz

the X giving Great. Okay. of He Yury. Well, X Head Europe, wearing also with -- is being but let hats, forum COO. me start to in

of it's responsibility he So the carries. key one

Yury? So,

Yury Gryzlov

for Leonard. you, Mayank. Thank the question, Thanks Yes.

mentioned, I have think we that talking from that and perspective that priorities I'm when operational obviously, have. we as of Leonard the the activities

strategy is in continue you mentioned, our right, recruiting thing. just model. follow-the-sun the As we obviously and a And delivery big particular, as GigaCube following

again, that think getting to is I get putting same also universities, and we the key sure to talent training and training the the make and from system. from we of machine here point can into the basically that the recruit do back how and the continue we the going market back talent the the right best through talent go

straightforward look those locations back even of countries of I we our and think before, will we countries side, relatively XX have amount relatively other challenge. to at this side, still as obviously, of few you relatively is because But So few on today see the of composition just small one it's a our go you from a is countries. had if the ago on years kind countries that big growing within machine. And a a where

think, of outside billable that there. we're through also training talent, anything to portion R&D is way have, that CTO kind have quite and perspective, we the to not make of in and zone big is we a tied bringing the activities. people machine the from comfort every the our we we what And And those location as sure natural. of -- not in projects those talent, the are assigned each right the most that extra to guiding think engagements. And activities. because assigned to That, portion we do doing putting R&D our of work of that now, the of is kind I I have we're and important CTO's So the that's

So is us. quite think I normal that for

doing that believe don't honest. I extraordinary be here, So something we to

over I last think doing growth normal years. it's few been the a just gradual as we've

Mayank Tandon

Terrific. Okay.

my me in in ask just you for Anil. for question repeat And fourth M&A XQ I'll in please what guide embedded the the -- can a softball follow-up, Let you from then terms of said what's your Anil, impact just quarter? and fiscal 'XX?

Anil Doradla

Yes.

the said fourth what growth. quarter, was for XX.X% So Mayank, we the year-over-year organic

So sense. X% Now roughly growth give first rate, you of at I'll when little a about the that bit a kind was quarter, look sequential just right? you of

the expect the guidance, end from flattish QX. organic to the We high be business on of

So ] there's [ there. $X spread a million

with will around $XX for million about we'll talking the off low come organic let's We're back And then business $XX the So will [ continue organic some talking year, million. starting and start teens, really, trends. full -- and about in positive be we're the year the to ] hopefully be teens.

Cary Savas

The next question Cowen. comes from Jared of TD Levine

Jared Levine

Levine for Jared Bryan Bergin. on

terms to can there? color of on company share confidence relative Is XXXX? in gives you And you here to customer top growth outperformance XXXX. the In show if so, what higher did average in more continue your the expected

Leonard Livschitz

when believe growth numbers, ability obviously fintech. parts, of broader revenue they we look growth in when question, you the the in comes from as top it base. a put it and cover we X. XX, I actually asked from? Well, technology, where It's mentioned this the to the terms guide comes CPGs X, from I we Puneet But mentioned comes had confidence right? it's in, top the come from X It before, at it's the -- top areas, so of And kind the

That their So just are since that the to some have of is AI base amazing it's of first anyways, broad but seen relationship who right? like production with results with the market. increase the partner early X base new demonstrate with this capturing representation digitalization. clients, of newer hyperscale supreme in touches of But -- it the X clients We've drive platform, kind revenue. clients ourselves. And engagement only broader of implementation automation, not the capabilities models categories, their from cloud the value, migration, there the the clients an say create existing not I either or hyperscalers, with necessary us the attraction from comes trust must all enhancing we their top a day become drivers. When similar which of any we the to into

The runners first best the get results.

we of at broad the more. implementation many early this one there is are [Indiscernible] us just gives products that but various And and base. So them, of are the phase of

hopefully, It top board So question. the I answered on technology the that it comes base comes from from X, but implementations.

Jared Levine

helpful? And Can touch the then here I margins here. what it. XXXX for discuss be Got And and regarding cadence 'XX FY on progresses? wanted would you anything to are key puts takes as here

Leonard Livschitz

Anil?

Anil Doradla

look, talk given any I've more we'll give of 'XX full a to bit you guidance. little XXXX, over on months, color over the 'XX. you of revenue Over couple told investors, the last model What year for we've So time, don't margin compression margins.

We'll you but give how that's for profile a color, the set come back. would 'XX. So curve we more little up bit the slope margin will of the

Cary Savas

question from from comes The Jesse next Blair. Wilson William

Jesse Wilson

year? Maggie Congrats head focus start this start which think more the guidance, It's of to Jesse do the muscle Wilson gotten a on? evening. laid on for this which XXXX or you bit asking, you I X achieve do by a think you out to require initiatives And Nolan. you've on results wanted

Leonard Livschitz

Yes.

adoption probably or AI very the in technology So because of technology. definitely, we big of is and on top AI the the further priorities investment market one definitely pickup see a

about talking about from now of And are we implementation As were implementation started platforms, about POC, impact GenAI finally, those platforms. mentioned, I if business particular we seeing talking implementations massive things. and we of

images and descriptions, like revenues just say, catalog we our would the generate have et a products. typical let's discoverability to with We products you say, enrichment, like converted the of an browsability getting revenue let's a business customers BXC And So additional directly generate which better things about, generate to talking because customers we're pick information. catalog things like the proper meta use products, are you product. cars more implement subpar example, of give it And impacts cetera, when the quality the which revenue. allows GenAI the in and to of

would I the #X be So that priority. say would

office artifacts, that. development invests to into Our with CTO help accelerators of

say I will kind of that's #X. So the would be

Yury Gryzlov

add of over right I hyperscalers. that, mentioned I is close to couple new next the think mentioned Leonard that the years, before. our after relationship and that this little I that wanted with Just last to think a is priority, that, bit -- obviously

think kind we that of it a on are also now. right something new about I as focusing that's think of kind

we moved hyperscalers our year. investment mentioned the of very, a the we with side. globe will one by very revenue those playing think But be big that quickly we believe I this further last far, across so is on started I very have driven and partnerships hyperscales We where role. particular. And required in XX%

continue it's important this think think area. incremental to for very I So in one this side, is us but investing I strategically, change on an very,

Leonard Livschitz

the to summarize, while. happening for a follow-the-sun offering look Just at been technology strategy, and if you those have

engagements. becomes technology a of our So we that. always And strong the new are pretty part pivotal on

some critical, AI in it very serious industries, to as mentioned, into very new acquisitions very see are players. And to kind Now will the some this and play. is of core we come hyperscale, this is key participate comes the warming with part which a player are guys industry, partnerships there relationship up, strong of but frankly, basically, a with where that's in be very diversification year strategic the and you initiatives when

puts us on the large So institutions. the acquisition more really financial the with various map recent

fintech. outside So of it's

fifth the and coming. is most diversification and kind really up the of So

Jesse Wilson

follow-up And it. just I a Anil. then everyone, to Got had for involve

your talked So that and on accounts to your previously Dynamics collaboration focus so enhanced you're portfolio you potential Grid And time. your accounts now hyperscalers salesforces. talking most efforts about about you've between over the rationalize can salesforce of with those

the developments? benefit do get on So expect line X to SG&A you any those from

Anil Doradla

yes, answer It's Good thing. question. never straightforward The investments. is some there's always a but

customers, partners. global to the the yes, question, you we co-investing receive are your we're Jesse said, getting put amount to on our But these value, hand, of huge as some if right? efforts So marquee is, with that other have we in of

So there's that. bit be a going of to little

next the answer look grow growth at no. you than revenue as vector to if think the over faster of years, is The growth? OpEx the I our question couple going is is, our

Vasily, Our to the want trends. going you don't know, revenue outgrow sales, But I OpEx is you're to add... in

Leonard Livschitz

He's smiling.

Vasily Sizov

perspective say our No, will I of I on of mean, the internally of definitely focus do specifically Talking a course, in the on outcomes pursuits to difficult new developing we, result bringing supporting But of us their relationships. little XXXX. about little you've should from a relationships boost future salesforce, bit would also change, would just I partnerships qualitative introduction it's concur a said. I with the and more and with them better more partners some for impact leads. quantitatively which reshufflings say those what give the it's with them say overall. the

Leonard Livschitz

for understanding Grid marketing good core little a and use please a I'm call of salespeople the a the bit with going hyperscale Dynamics, apply. capabilities, for So of technical background earnings to as

your increase quality just to we and Jesse, actually engineers, actually need positioning to because would team, and that works the management well supported that and salesforce very implementation So question, not high pace needs accelerate. with technology with the program

pragmatically. revenue account see rate would a both will question. the quite will answered rate of and but say on management you good that of delivery for a So surpass, management the the Anil organization, growth I you side. of question most The the front-facing sales Thank gross

Cary Savas

gentlemen, this the concludes Ladies and our part call. of Q&A

going it I'm turn to Leonard. to Now over

Anil Doradla

have had follow-up you on, Cary. follow-up. might have a Mayank, do question? a Mayank Hold

Mayank Tandon

Great. Yes, quick Two ones. please.

wanted clarify one thing. Just to

expand I I around any quite around one of catch think commentary some still question. after comments there's of that. And efforts. pricing. your utilization detailed And reviews because one pricing hearing recruiting But room some any me response didn't the That another if on gave would sort Vasily to it? been from around we've have very peers mixed also, I be

Leonard Livschitz

about extra, going came you my actually names. fine. who to you'll give you It anymore. Since I'm learn That's right. the Yury guys torture recruiting, a to not All talked but chance was

the you Vasily and good that you So know, with recruiting Well, and pricing grow the when stuff. people first as foremost, dependent, clients, talking that. part all forefront mutually more So at continue scaling about start you right positioning and and and this when is right? the of implement solutions you critical become fixed because bid more to value becomes of the we offering, our

us good of kind a positioned pricing. that's for So incrementally value on the

Now a our when from going commoditize position is business negotiation to simple. very ever comes how to manual we we it vendor ourselves, the problem. and be there's positioning, obviously, If pressure a management,

they the negotiation, we regardless We when greediness do our doing following strategy follow-the-sun really So that the where people from, come the bring positioning. value. strictly we're our

comes traditional Americas. from and Now European just also India not but organizations, from that now

So the we positive. continues to a see generally trend be that

the of But also for because engineers. compensate and program a improves with we retraining. the Of very the internship some course, strong there's of that inflation cost rate

the to the with bench is bench, the easier of have heavy to and We're a to optimize on they're So we're now around but do lot on on technology talent, optimize but retrain. A afraid we our basically, the have who to goes pricing, clients to the experience basically see what -- tools. people. trying training to do and retraining of good also utilization advanced make people need is churn not and bench accelerate

always but on say utilization, upside, would of I we're quite that. So there's diligent an

us conversation, is you Grid That X the vector to from vector. But the leadership pretty for the can't very client ask the pricing, business good clients Dynamics, give parties, the work. On and doesn't a go It's and that logical technical which leadership, the involves competitive. increases. just the just

So I would not it's say mixed.

Grid I pricing it's Dynamics actually, pretty positioning. we're in think comfortable

Mayank Tandon

pretty you giving fact that larger one and based by Or here? would final part helpful. is the you're visibility. lot has there that question guidance you of forecasting final Is equation way, -- do you're is that deals suggest a XXXX, that it's of with the for that Is stage that on me and healthy thank question interactions? the the very that color. -- in growth client just scope size. And good One that's year full to are again for Got that for fact it. this have Very more to it at

Leonard Livschitz

drives who those the Since a numbers. one of lot Sure. you're

Yury Gryzlov

both Absolutely. Yes. components were mentioned. Actually, just

perspective, say, preferred we position better historically our customers, definitely would vendor. have, So a where I one we with as many from were of recognized

continuation we gradual do together. high of So also growth the on on not of the this work, work only have confidence but amount the we of

thing, its what the also deals, we tenure number of like actually be teams coordination, not is big consider of second require and implementation probably small opportunities and like nature. which size have means I longer would have which the The the we opportunities. by already say, like of to which biggest historically, you here but there, mentioned which programs

Leonard Livschitz

RFPs. We basically, Mayank, to there's large factor. many important summarize one win more it, So, more

for So up that opens us kind of success. the

Cary Savas

Thank and to to the part Q&A gentlemen, turn it Leonard closing for call. now concludes back of Ladies our this statements. you. going I'm

Leonard Livschitz

enhancements key a We're off advanced our and great is we strengths computing in implementing environment position mind, around numerous framework digital these identified in highlight results is technology XXXX The our to demand and AI-driven technologies. GigaCube With improving industry. unique priorities. our and other start. the transformation AI have

Grid significantly a confident expertise in our on capabilities. In foundation follow-the-sun strategy, We vertical our next look and earnings partnership growth Dynamics well worldwide. I and of capabilities for adding execute. continued continue more you to our to to We're and has summary, is expand all I'm forward in call. positioned deepening enhancing strong our ability XXXX, our updating

Grid Dynamics (GDYN) 20 Feb 252024 Q4 Earnings call transcript