Business
Grid Dynamics Reports Third Quarter 2020 Financial Results
Revenue of $26.3 million, up 18% sequentially; GAAP Net Income/(Loss) of ($1.1) million or (4%) of revenue, and Adjusted EBITDA of $4.2 million or 16% of
About this update from Grid Dynamics Holdings, Inc.
[{"type":"text","content":"\nRevenue of $26.3 million, up 18% sequentially; GAAP Net Income/(Loss) of ($1.1) million or (4%) of revenue, and Adjusted EBITDA of $4.2 million or 16% of revenue\n\n 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 third quarter ended September 30, 2020.\n\n“We are very pleased with the company’s third quarter results. We delivered $26.3 million of revenue in the third quarter, a sequential growth of 18% over the second quarter and one of the highest in the company’s history. Our non-retail industry verticals, which represented 77% of revenue in the third quarter, grew 10% on a sequential basis and 47% on a year-over-year basis. At 48% of our third quarter revenue, the Technology vertical grew 45% year-over-year and represented the company’s largest industry vertical. In addition, while we posted a GAAP Net Loss of $(1.1) million or (4%) of revenue, we generated positive Adjusted EBITDA of $4.2 million, or 16% of revenue in Q3, up from a GAAP Net Loss of $(2.2) million or (10%) of revenue, and Adjusted EBITDA of $1.2 million, or 5% of revenue in the second quarter.\n\nIn the third quarter we witnessed strong pickup in customer activity across the board as digital transformation initiatives took center stage. In each of the three months of the third quarter our revenues grew sequentially, with September being the fourth consecutive month of growth. More importantly, in October we saw the same upward trend, leading us to be confident in Q4 outlook and momentum toward recovery to pre-COVID levels and beyond. Furthermore, as we exit 2020, we anticipate our revenue run rate to approach the level we had at the end of 2019 with strong contributions from our top clients. Our customers demand Grid Dynamics expertise in data science, Big Data and AI as they focus on improving efficiencies across their sales lifecycle and operations by leveraging data-driven solutions,” said Leonard Livschitz, CEO.\n\nThird Quarter 2020 Financial Highlights\n\n\nTotal revenue was $26.3 million, an increase of 18% sequentially and a decrease of 16% year-over-year.\n\n\nGAAP gross profit was $11.2 million or 42% of revenue, compared to GAAP gross profit of $13.8 million or 44% of revenue in the third quarter of 2019. Non-...