Grid Dynamics Holdings, Inc. · NASDAQ:GDYN
Grid Dynamics — Q2 2024 Earnings Presentation
27 slides from Grid Dynamics's earnings presentation, Aug 1, 2024
Slide 1: Investor presentation Q2 2024
Grid Dynamics Grid Dynamics Culture Investor presentation NASDAQ: GDYN | Q2 2024 Privileged and confidential Grid Dynamics / Grid Dynamics Investor Presentation
Slide 2: Disclaimer: Forward-looking statements
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, AI, 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, AI, and advanced analytics for global enterprises undergoing digital transformation. Market leading Leading Q2 2024 REVENUE Strategic M&A expertise Fortune 1,000 clients $83.0
Slide 5: Company history
Company history IPO Acquisitions of NASDAQ: GDYN 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 2024 Inception Traction Growth Grid Dynamics was founded in 2006 in Grid Dynamics’ growth was fueled by Grid Dynamic
Slide 6: Investment highlights
Investment highlights 1 Large and fast-growing digital transformation market 2 Deep technology expertise with 8 years of AI experience 3 Impressive blue-chip client base with high client retention Global delivery capabilities with focus on Europe, India, Mexico, 4 and US High-performance, co-innovat
Slide 7: Global delivery: follow-the-sun
Sweden Stockholm Global delivery: follow-the-sun UK Netherlands Amsterdam Poland Gdansk London Warsaw Wroclaw Ukraine Switzerland Krakow Lviv Kyiv Seattle Zurich Moldova Portland Romania Belgrade Armenia Spain Yerevan New York Barcelona Serbia Istanbul San Francisco Baku Bay Area (HQ) Chicago Pittsb
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, Grid Dynamics scalability & Cloud Microservices, API- Machine learning, migration,
Slide 9: Digital innovation partner for Fortune 1000
Digital innovation partner for Fortune 1000 .TMT. .CPG & Manufacturing. .Finance. .Retail. H & Pharma. .Healthcare and many more... 9 NASDAQ: GDYN © 2024 Grid Dynamics Holdings, Inc. All rights reserved. Grid Dynamics / investor presentation Q2 2024
Slide 10: Recognition by market research companies and alliances
Recognition by market research companies and alliances Best retail project Best overall change project Most innovative project Inaugural Google Cloud services specialist 2024 2024 2024 2024 Best health/pharma project Modern application development services Leading AI service providers 2022 2022 2022
Slide 11: End-to-end capabilities to drive digital transformations at scale
End-to-end capabilities to drive digital transformations at scale 18 years ofculture distributed collaboration over 1,000 digital projects transformation Engineering capabilities Accelerators Composable Experience engineering Web Mobile AR/VR commerce Platform engineering Microservices MACH Supply c
Slide 12: Our core expertise and key practice areas
Our core expertise and key practice areas Artificial Intelligence (AI) ML Deep learning Reinforcement Gen AI Optimization Search (Statistical modeling) (Neural networks) learning Enterprise AI Cloud Data Analytics User experience Advanced expertise in Extensive hands-on Domain specific UX design in
Slide 13: Enterprise AI in Grid Dynamics
Enterprise AI in Grid Dynamics 8 years in delivering AI TensorHouse solutions for An open-sourced collection of reference ML and optimization models for world-leading enterprise operations ・GitHub repo enterprises Introduction to Algorithmic The Theory and Practice ・40+ models ・900+ stars on GitHub
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: Proprietary accelerators enhance 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 16: 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 17: Platform built for sustained growth
Platform built for sustained growth Proven framework for organic growth… …bolstered by actionable M&A pipeline 85–10–5 approach Thoughtful barbell approach to acquisitions to revenue growth 85% Revenue growth attributable to Highly fragmented market provides a mature Grid Dynamics clients steady vol
Slide 18: Partnership is a force multiplier to scale our business
Partnership is a force multiplier to scale our business Outcomes Google’s Global Partner for implementing innovative generative AI solutions Accelerated pipeline creation & deal closure Expanded our partnership with Microsoft to include Open AI + Github Industry penetration Building accelerators on
Slide 19: GigaCube – our strategic initiative to reach $1B in annual revenue
GigaCube – our strategic initiative to reach $1B in annual revenue Geo scalability • Global footprint expansion • Talent acquisition framework Innovation • Investing in our engineering DNA • Create an inspiring engineering culture Industry expansion • Diversification and growth across new industry v
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 © 2024 Grid Dynamics Holdings, Inc. All rights reserved. Grid Dynamics / investor presentation Q2 2024
Slide 22: Grid Dynamics has become increasingly diversified
Grid Dynamics has become increasingly diversified CPG 1.5% 2018 TMT 26% Retail 63% Finance 9% Other 0.5% CPG 2019 TMT 27% Retail 57% Finance 11% 4% Other 1% 2020 TMT 41% Retail 30% Finance 12% CPG 13% 4% Other Finance 2021 TMT 32% Retail 29% CPG 21% Other 9% 8% H&P 1% Finance 2022 TMT 32% Retail 32%
Slide 23: Q2 2024 key financial metrics
Q2 2024 key financial metrics GAAP Q2 2024 Non-GAAP Q2 2024 Q2 2024 financial highlights Revenues $83.0M $83.0M • Total revenues was $83.0 million, an increase of 4.0% Q/Q change 4.0% 4.0% and 7.4% sequentially and on a year-over-year basis, respectively. YoY change 7.4% 7.4% • GAAP gross profit was
Slide 24: Accelerating business momentum in Q2 2024
Accelerating business momentum in Q2 2024 Q2 2024 revenue Q2 revenue Q2 Non-GAAP gross profit ($ in millions) (% of revenue) ($ in millions) ($ in millions) Retail $26.8 32.2% $29.1 $28.8 $30.1 TMT $23.2 28.0% $19.9 $8.4 Q2 2020 Q2 2021 Q2 2022 Q2 2023 Q2 2024 CPG $9.8 11.9% $83.0 Non-GAAP gross pro
Slide 25: Annual key metrics (historical)
Annual key metrics (historical) ($ in millions) Revenue Non-GAAP EBITDA(1) Non-GAAP net income(2) $37 $310 $313 $58 $24 $25 $211 $44 $39 $111 $13 $7 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 (6%) 90% 47% 1% 11% 19% 19% 14% 6% 11% 12% 8% YoY growth % margin % margin Note: See append
Slide 26: Annual key metrics (historical)
Annual key metrics (historical) ($ in millions) #Clients > $1M revenue Customer concentration 48 48 22% 40% 40% 44% 22% 34 Rest Top 10 Top 5 16% 16% 56% 19% 44% 44% 17 37% 2020 2021 2022 2023 2020 2021 2022 2023 26 NASDAQ: GDYN © 2024 Grid Dynamics Holdings, Inc. All rights reserved. Grid Dynamics /
Slide 27: Thank you!
Trusted engineering partner for digital transformation Thank you! Grid Grid Dynamics Dynamics Holdings Holdings,Inc. Inc. 5000 Executive Parkway, 5000 Executive Parkway, Suite 520 / San Ramon, CA Suite 520, San Ramon, CA 94583 1-646-277-1236 1-650-523-5000 investorrelations@griddynamics.com investor
Grid Dynamics Holdings — Q2 2024 Earnings Presentation on 6ix