Grid Dynamics Holdings, Inc. · NASDAQ:GDYN
Grid Dynamics — Q1 2023 Earnings Presentation
29 slides from Grid Dynamics's earnings presentation, May 4, 2023
Slide 1: Investor Presentation Q1 2023
Grid Dynamics Grid Dynamics Culture Investor Presentation NASDAQ: GDYN | Q1 2023 Privileged and confidential Grid Dynamics / Grid Dynamics Investor Presentation
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts, and involve risks and uncertainties that could cause ac
Slide 3: Who We Are
Who We Are Grid Dynamics is a leading provider of technology consulting, agile custom software development, and data analytics for Fortune 1000 corporations undergoing digital transformation. 3
Slide 4: Grid Dynamics at a Glance
Grid Dynamics at a Glance Digital-native technology services provider that accelerates growth and bolsters competitive advantage for Fortune 1000 companies. Market Leading Leading Fortune Q1 2023 REVENUE (M) Strategic M&A Expertise 1,000 Clients $80.1M CLOUD 220 Q2 2023 REVENUE EXPECTATIONS/(M) DATA
Slide 5: Company History
Company History IPO NASDAQ: GDYN Acquisitions of 20 50 200 400 600 800 1.1K 1.4K 1.5K 3.5K 4K 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Inception Traction Growth Grid Dynamics was founded in 2006 in Grid Dynamics’ growth was fueled by Grid Dynamics is
Slide 6: Investment Highlights
Investment Highlights 1 Large and Fast-Growing Digital Transformation Market 2 Deep Technology Expertise and Proprietary Accelerators 3 Impressive Blue-Chip Client Base with High Client Retention Global Delivery Capabilities with Focus on Central European, India, 4 Mexico, and US talent High-Perform
Slide 7: Recognition by market research companies and alliances
Recognition by market research companies and alliances ・ Forrester named Grid Dynamics a Leader among midsize agile development service providers, Q2 2019(1) ・ Forrester included GD into the list of leading Computer Vision Consultancies, Q4 2020(2) ・ Forrester named Grid Dynamics Strong Performer in
Slide 8: Global Delivery Capabilities with focus on Central European, India, Mexico, and US Talent
Headcount Distribution Global Delivery Capabilities with focus on Central European, India, Mexico, and US Rest of Talent World 7% ⋅ Top global engineering talent Americas Europe ⋅ Majority of employees have advanced degrees and several 14% 79% years of tenure ⋅ Established presence in top global tal
Slide 9: Why Clients Choose Grid Dynamics
Why Clients Choose Grid Dynamics We make disruptive technologies accessible. Our ability to solve enterprises’ most complex problems Technology consulting with a deep understanding of business practices Data science and agile software development practices are in our DNA Quality and speed of deliver
Slide 10: Digital Innovation Partner for Fortune 1000
Digital Innovation Partner for Fortune 1000 .Tech. .CCPG & Manufacturing. .Finance. .Retail. .Other. and many more... 10 NASDAQ: GDYN © 2023 Grid Dynamics Holdings, Inc. All Rights Reserved. Grid Dynamics / Investor Presentation Q1 2023
Slide 11: Client Digital Journey
Proven Land and Expand Strategy That Enables Our Clients’ Digital Journeys Typical entry points: Discover Fuel client transformation path Artificial Data Customer Application through discovery workshops and Intelligence Science Experience Modernization prototyping Transform Innovate Guide clients to
Slide 12: Platform built for sustained growth
Platform built for sustained growth Proven framework for organic growth… …bolstered by actionable M&A pipeline Thoughtful “barbell” approach 85–10–5 approach to acquisitions to revenue growth 85% Revenue growth attributable to Highly fragmented market provides a mature Grid Dynamics clients steady v
Slide 13: GigaCube – Strategic Initiative
GigaCube – Strategic Initiative GigaCube is our strategic growth framework to: - compete more effectively against global firms - create more business value for our clients - continue attracting and developing top talent - help to drive our “follow the sun” engineering model - achieve an important rev
Slide 14: Spotlight on Recent Acquisitions
Spotlight on Recent Acquisitions Design and digital platform Full-service custom application engineering services company based development company based in DECEMBER 2022 in US & India APRIL 2023 the Tampa, FL and India Mobile and UI/UX Capabilities Strategic Industry Focus Specialized in front-end
Slide 15: End-to-end capabilities to drive digital transformations at scale
End-to-end capabilities to drive digital transformations at scale 16+ years of distributed collaboration culture over 1,000 digital transformation projects Engineering Capabilities Accelerators Composable Experience engineering Web Mobile AR/VR commerce Platform engineering Microservices MACH Supply
Slide 16: Our Core Expertise and Key Practice Areas
Our Core Expertise and Key Practice Areas Cloud Data AI Experience Grid Dynamics enables Grid Dynamics arms clients Grid Dynamics brings Engaging digital experiences enterprises to embrace cloud with actionable insights for cutting-edge AI/ML capabilities through product thinking and architectures &
Slide 17: Client Digital Innovation Driven through Agile Delivery: Cloud
Client Digital Innovation Driven through Agile Delivery Cloud Cloud-native since inception, Grid Dynamics is helping enterprises embrace, implement, optimize and scale cloud architectures. Grid Dynamics Practice Areas Custom Application Development DevSecOps Test Automation Cyber Security Microservi
Slide 18: Client Digital Innovation Driven through Agile Delivery: Data
Client Digital Innovation Driven through Agile Delivery (Cont’d) Data Grid Dynamics build enterprise-grade data and ML platforms, vertically oriented solutions for marketing and IoT domains. Grid Dynamics Practice Areas Data Platforms ML Platforms Customer 360 Platforms IoT Platforms Data Quality De
Slide 19: Client Digital Innovation Driven through Agile Delivery: AI
Client Digital Innovation Driven through Agile Delivery (Cont’d) AI Grid Dynamics experts enable clients to digest petabytes of data into actionable insights through machine learning and state-of-the-art models. Grid Dynamics Practice Areas Supply Chain Revenue & Price Marketing and Personalization
Slide 20: Client Digital Innovation Driven through Agile Delivery: Experience
Client Digital Innovation Driven through Agile Delivery (Cont’d) Experience Grid Dynamics experts drive cutting-edge commerce with a deep understanding of the modern consumer and the help of artificial intelligence. Grid Dynamics Practice Areas Composable Commerce Platforms UX and design thinking Web
Slide 21: Grid Dynamics' Proprietary Accelerators Enhance the Quality and Speed of Delivery
Grid Dynamics’ Proprietary Accelerators Enhance the Quality and Speed of Delivery Microservices Platform Analytical Data Platform Semantic Search Recommendations Integrated microservices Integrated, cloud-native Consumer tailored search by context / Tailored product recommendations platform with con
Slide 22: Technical partnerships that support our clients
Technical partnerships that support our clients Customer experience & Hyperscalers AI/ML, Search & Data Accessibility Digital commerce Advance Premier Gold 22 NASDAQ: GDYN © 2023 Grid Dynamics Holdings, Inc. All Rights Reserved. Grid Dynamics / Investor Presentation Q1 2023
Slide 23: Financial Overview
Financial Overview NASDAQ: GDYN © 2023 Grid Dynamics Holdings, Inc. All Rights Reserved. Grid Dynamics / Investor Presentation Q1 2023
Slide 24: Grid Dynamics has Become Increasingly Diversified
Grid Dynamics has Become Increasingly Diversified CPG 2018 Revenue Distribution 1.5% Finance TMT 26% Retail 63% 9% Other 0.5% 2019 CPG TMT 27% Retail 57% Finance 11% 4% Other 1% 2020 TMT 41% Retail 30% Finance 12% CPG 13% Other 4% 2021 Finance TMT 32% Retail 29% CPG 21% Other 10% 8% 2022 Finance TMT
Slide 25: Q1 2023 Key Financial Metrics
Q1 2023 Key Financial Metrics GAAP Q1 2023 Non-GAAP Q1 2023 Q1 2023 Financial Highlights Revenue $80.1M $80.1M • Total revenue was $80.1 million, a decrease of (0.6)% Q/Q Change (0.6)% (0.6)% sequentially and an increase of 12.1% year-over-year. YoY Change 12.1% 12.1% • GAAP gross profit was $28.6 mi
Slide 26: Accelerating Business Momentum in Q1 2023
Accelerating Business Momentum in Q1 2023 Q1 2023 Revenue Q1 Revenue Non-GAAP Gross Profit Margin ($M) ($ in millions) (% of revenue) ($ in millions) TMT $26.8 33.5% Retail $25.4 31.7% CPG (1) $12.6 15.8% Non-GAAP Gross Profit Margin (%) Finance $6.5 8.1% Other $8.7 10.9% 26 NASDAQ: GDYN © 2023 Grid D
Slide 27: Annual Key Metrics (Historical)
Annual Key Metrics (Historical) ($ in millions) Revenue Non-GAAP EBITDA(1) Non-GAAP Net Income(2) $310 $37 $58 $211 $24 $39 $118 $111 $24 $15 $13 $92 $19 $13 $7 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 30% 29% (6%) 90% 47% 21% 20% 11% 19% 19% 14% 13% 6% 11% 12% YoY
Slide 28: Annual Key Metrics (Historical)
Annual Key Metrics (Historical) ($ in millions) #Clients > $1M Revenue Customer Concentration 48 12% 19% 21% 21% 40% 40% 19% 34 23% Rest Top 10 16% 17% Top 5 17 15 67% 62% 56% 11 44% 43% 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 28 NASDAQ: GDYN © 2023 Grid Dynamics Holdings, Inc. All Rights
Slide 29: Thank you!
Trusted engineering partner for digital transformation Thank you! Grid Dynamics Holdings Inc. 5000 Executive Parkway, Suite 520 / San Ramon, CA 1-646-277-1236 investorrelations@griddynamics.com www.griddynamics.com
Grid Dynamics Holdings — Q1 2023 Earnings Presentation on 6ix