Grid Dynamics Holdings, Inc. · NASDAQ:GDYN
Grid Dynamics — Q3 2023 Earnings Presentation
27 slides from Grid Dynamics's earnings presentation, Nov 2, 2023
Slide 1: Investor Presentation Q3 2023
Grid Dynamics Grid Dynamics Culture Investor Presentation NASDAQ: GDYN | Q3 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, platform & product engineering, and advanced analytics services for Fortune 1000 corporations undergoing digital transformation. 3
Slide 4: Who We Are - Grid Dynamics at a Glance
Who We Are - Grid Dynamics at a Glance We are a leading provider of technology consulting, product and platform engineering, and advanced analytics for global enterprises undergoing digital transformation. Market Leading Leading Fortune Q3 2023 REVENUE (M) Strategic M&A Expertise 1,000 Clients $77.4
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 with 7+ Years of AI Experience 3 Impressive Blue-Chip Client Base with High Client Retention Global Delivery Capabilities with Focus on Central Europe, India, 4 Mexico, and US High-Performance, C
Slide 7: Global Delivery: 'Follow-The-Sun'
Sweden Stockholm Global Delivery: ‘Follow-The-Sun’ UK London Netherlands Poland Amsterdam Gdansk Warsaw Wroclaw Ukraine Switzerland Lviv Kyiv Krakow Seattle Zurich Moldova Portland Romania Belgrade Armenia Spain Yerevan San Francisco New York Barcelona Serbia Istanbul Baku Bay Area (HQ) Chicago Pitt
Slide 8: Our DNA is Centered Around Technology and Innovation
Our DNA is Centered Around Technology and Innovation Our unique DNA elevates Grid Dynamics as a strategic partner at Global Always ahead of the Technology Curve Enterprises across industry verticals TODAY Open source, Microservices, Grid Dynamics scalability & Cloud API-first, Cloud, Machine learning
Slide 9: Digital Innovation Partner for Fortune 1000
Digital Innovation Partner for Fortune 1000 .Tech. .CCPG & Manufacturing. .Finance. .Retail. .Other. and many more... 9 NASDAQ: GDYN © 2023 Grid Dynamics Holdings, Inc. All Rights Reserved. Grid Dynamics / Investor Presentation Q3 2023
Slide 10: 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 11: 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 projects transformation Engineering Capabilities Accelerators Composable Experience engineering Web Mobile AR/VR commerce Platform engineering Microservices MACH Supply
Slide 12: Our Core Expertise and Key Practice Areas
Our Core Expertise and Key Practice Areas Artificial Intelligence (AI) ML (Statistical Deep Learning Reinforcement Generative AI Optimization Search Modeling) (Neural Networks) Learning Cloud Data Analytics Experience Cloud Migration Search and Data platforms UX & design & DevSecOps Recommendations M
Slide 13: Enterprise AI in Grid Dynamics
Enterprise AI in Grid Dynamics 7+ years in delivering AI solutions for TensorHouse An open sourced collection of reference World-Leading ML and optimization models for enterprise operations Enterprises ・ GitHub repo ・ 40+ models Introduction to Algorithmic The Theory and Practice ・ 900+ stars on Git
Slide 14: Our Enterprise AI Experiences Spans Across Industry Verticals
Our Enterprise AI Experiences Spans Across Industry Verticals Proven successful implementations across core industries and practice areas - Some featured engagements Customer Intelligence Pricing and Supply Chain IoT Product Discovery Risk Management TMT Offer targeting Churn Promotion Price & promo
Slide 15: Grid Dynamics' Proprietary Accelerators
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 16: Proven Land and Expand Strategy
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 17: 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 18: Partnership is a Force Multiplier to Scale Our Business
Partnership is a Force Multiplier to Scale Our Business ・ Over the last 3 years, we have built a strong ecosystem of partners ー Hyperscalers and specialized SaaS companies ・ This has accelerated the deal pipeline creation and business acquisition ・ Benefits: New logos, Industry Penetration, Large dea
Slide 19: GigaCube - Our Strategic Initiative to Reach $1B in Annual Revenue
GigaCube - Our Strategic Initiative to Reach $1B in Annual Revenue GigaCube growth framework will enable us to: ・ Institutionalize and scale our service offerings ・ Expand our presence across Europe, India, and Americas ・ Drive clients’ growth and efficiency by leveraging our expertise across busines
Slide 20: 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 21: Financial Overview
Financial Overview NASDAQ: GDYN © 2023 Grid Dynamics Holdings, Inc. All Rights Reserved. Grid Dynamics / Investor Presentation Q3 2023
Slide 22: 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 23: Q3 2023 Key Financial Metrics
Q3 2023 Key Financial Metrics GAAP Q3 2023 Non-GAAP Q3 2023 Q3 2023 Financial Highlights Revenue $77.4M $77.4M • Total revenue was $77.4 million, an increase of 0.1% Q/Q Change 0.1% 0.1% sequentially and a decrease of (4.6)% on a year-over-year basis. YoY Change (4.6)% (4.6)% • GAAP gross profit was
Slide 24: Accelerating Business Momentum in Q3 2023
Accelerating Business Momentum in Q3 2023 Q3 2023 Revenue Q3 Revenue Non-GAAP Gross Profit Margin ($M) ($ in millions) (% of revenue) ($ in millions) TMT $23.7 30.7% Retail $26.5 34.3% CPG (1) $9.7 12.5% Non-GAAP Gross Profit Margin (%) Finance $7.3 9.4% Other $10.2 13.1% 24 NASDAQ: GDYN © 2023 Grid D
Slide 25: Annual Key Metrics (Historical)
Annual Key Metrics (Historical) ($ 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 $7 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 30% 29% (6%) 90% 47% 21% 20% 11% 19% 19% 14% 13% 6% 11% 12% YoY
Slide 26: Annual Key Metrics (Historical)
Annual Key Metrics (Historical) ($ 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 26 NASDAQ: GDYN © 2023 Grid Dynamics Holdings, Inc. All Rights
Slide 27: 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
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