Business
Grid Dynamics Reports Second Quarter 2020 Financial Results; Guides Third Quarter Sequential Revenue Growth between 10% and 16%
SAN RAMON, Calif.--(BUSINESS WIRE)-- Grid Dynamics Holdings, Inc. (Nasdaq: GDYN) (“Grid Dynamics”), a leader in enterprise-level digital transformation,
About this update from Grid Dynamics Holdings, Inc.
[{"type":"text","content":" SAN RAMON, Calif.--(BUSINESS WIRE)--\nGrid Dynamics Holdings, Inc. (Nasdaq: GDYN) (“Grid Dynamics”), a leader in enterprise-level digital transformation, today announced results for the second quarter ended June 30, 2020.\n\n\n“We are pleased with our second quarter results and strong execution against our objectives in light of the challenging backdrop. We delivered $22.4 million of revenue in the second quarter, at the high-end of our guidance range, with our non-retail industry verticals generating strong sequential and year-over-year revenue growth of 12% and 46%, respectively. Our Technology vertical, at 54% of second quarter revenue, grew 52% on a year-over-year basis, and represented the largest industry vertical. In addition, while we posted a GAAP net loss of $2.2 million, we generated positive adjusted EBITDA of $1.2 million in Q2, reflecting excellent focus and execution of our cost savings initiatives.\n\n\nIn terms of the demand environment, since May, we are seeing signs of recovery and greater levels of customer activity across all our industry verticals giving us increased confidence in the second half of 2020. We believe Q2 will represent the low point for 2020 and we will progress on a recovery path from the third quarter onwards. This is reflected in our strong third quarter guidance of approximately 13% sequential revenue growth at the midpoint of the range. The need for digital transformation across every industry remains universal and we are confident that Grid Dynamics will continue to be the partner of choice at leading Fortune 1000 clients. With 46% year-over-year revenue growth in the second quarter from our non-retail industry verticals, we continue to execute towards our strategy of increased industry vertical diversification, thus building a stronger and more diversified digital transformation firm across multiple high growth industries, a clear long-term positive for Grid Dynamics and our stakeholders,” said Leonard Livschitz, CEO.\n\n\nSecond Quarter 2020 Financial Highlights\n\n\n\nTotal revenue was $22.4 million, a decrease of 31.1% sequentially and 21.9% year-over-year.\n\n\nGAAP gross profit was $8.4 million or 37.5% of revenue, compared to GAAP gross profit of $11.4 million or 39.9% of revenue in the second quarter of 2019. Non-GAAP gross profit was $8.4 million or 37.8% of revenue, compared ...