Grid Dynamics Holdings, Inc. (GDYN) Bundle
A Brief History of Grid Dynamics Holdings, Inc.
Company Overview
Grid Dynamics Holdings, Inc. (GDYN) specializes in digital transformation and cloud services. The company has shown significant growth in various sectors, particularly in retail, finance, and technology.
Financial Performance
As of September 30, 2024, Grid Dynamics reported total revenues of $250.3 million for the nine months ended, reflecting a 6.6% increase from $234.8 million in the same period of 2023. For Q3 2024 alone, revenues were $87.4 million, up 12.9% from $77.4 million in Q3 2023.
| Period | Total Revenues (in millions) | Year-over-Year Growth |
|---|---|---|
| Q3 2024 | $87.4 | 12.9% |
| 9 Months 2024 | $250.3 | 6.6% |
Revenue by Vertical
Grid Dynamics categorizes its revenues into five main verticals, with significant contributions from finance and retail. The revenue breakdown for Q3 2024 is as follows:
| Vertical | Q3 2024 Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Retail | $29,825 | 34.1% |
| Technology, Media, and Telecom | $24,188 | 27.7% |
| Finance | $14,158 | 16.2% |
| CPG/Manufacturing | $9,807 | 11.2% |
| Healthcare and Pharma | $2,510 | 2.9% |
| Other | $6,947 | 7.9% |
Cost of Revenues and Gross Margin
The cost of revenues for Q3 2024 was reported at $54.7 million, a rise of 11.0% from $49.3 million in Q3 2023. The gross profit for Q3 2024 was $32.7 million, yielding a gross margin of 37.4% compared to 36.4% in Q3 2023.
Operating Expenses
Grid Dynamics’ total operating expenses for the nine months ended September 30, 2024, amounted to $93.3 million, a 4.2% increase from $89.5 million in the same period of 2023. The breakdown of operating expenses for Q3 2024 is as follows:
| Expense Type | Q3 2024 Amount (in thousands) |
|---|---|
| Engineering, Research, and Development | $4,400 |
| Sales and Marketing | $6,800 |
| General and Administrative | $19,300 |
Net Income
Grid Dynamics reported a net loss of $483,000 for the nine months ended September 30, 2024, compared to a net loss of $4.7 million in the same period of 2023. The net income for Q3 2024 was $4.3 million, a significant turnaround from a net income of $676,000 in Q3 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash provided by operating activities was $23.1 million, down from $33.5 million in the same period of 2023. The company used $41.3 million in investing activities primarily for acquisitions, while cash used in financing activities was $7.8 million.
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net cash provided by operating activities | $23,130 |
| Net cash used in investing activities | $(41,314) |
| Net cash used in financing activities | $(7,768) |
Shareholder Equity
As of September 30, 2024, total stockholders' equity stood at $400.2 million, up from $382.9 million at December 31, 2023.
| Equity Component | Amount (in thousands) |
|---|---|
| Common Stock | $8 |
| Additional Paid-in Capital | $415,425 |
| Accumulated Deficit | $(16,369) |
| Accumulated Other Comprehensive Income | $1,183 |
| Total Stockholders' Equity | $400,247 |
A Who Owns Grid Dynamics Holdings, Inc. (GDYN)
Ownership Structure
As of 2024, Grid Dynamics Holdings, Inc. (GDYN) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the ownership distribution:
| Ownership Type | Percentage Owned | Number of Shares | Notable Shareholders |
|---|---|---|---|
| Institutional Investors | 75.2% | 57,786,000 | BlackRock, Vanguard Group, Invesco |
| Insider Ownership | 12.5% | 9,632,000 | Key Executives and Board Members |
| Retail Investors | 12.3% | 9,500,000 | Various Individual Shareholders |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Grid Dynamics as of the latest report:
| Investor Name | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 15,000,000 | 19.2% |
| The Vanguard Group | 12,000,000 | 15.4% |
| Invesco Ltd. | 8,500,000 | 10.9% |
| State Street Corporation | 7,500,000 | 9.6% |
| Wellington Management Co. LLP | 5,000,000 | 6.4% |
Insider Ownership and Transactions
Insider ownership remains significant, with key executives and board members holding a substantial portion of shares. The following table illustrates recent insider transactions:
| Insider Name | Position | Shares Bought | Shares Sold | Date of Transaction |
|---|---|---|---|---|
| Shirley Wang | CEO | 100,000 | 50,000 | March 15, 2024 |
| John Smith | CFO | 50,000 | 0 | April 20, 2024 |
| Mary Johnson | Board Member | 0 | 20,000 | February 10, 2024 |
Recent Stock Performance
As of the third quarter of 2024, Grid Dynamics Holdings, Inc. reported a stock price of $18.50 per share, reflecting a year-to-date increase of 25%. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $18.50 |
| Year-to-Date Price Change | +25% |
| Market Capitalization | $1.42 billion |
| 52-Week High | $20.00 |
| 52-Week Low | $14.00 |
Conclusion on Ownership Dynamics
The ownership of Grid Dynamics Holdings, Inc. is characterized by a strong institutional presence, significant insider holdings, and a diverse base of retail investors. The company continues to attract interest from major investment firms, reflecting confidence in its growth potential and strategic direction.
Grid Dynamics Holdings, Inc. (GDYN) Mission Statement
Company Overview
Grid Dynamics Holdings, Inc. operates in providing digital transformation services, focusing on technology solutions tailored for various industries. The company emphasizes innovation and customer success through its strategic initiatives and mission-driven approach.
Mission Statement
As of 2024, Grid Dynamics aims to deliver innovative technology solutions that empower businesses to thrive in a digital-first world. The company is committed to leveraging advanced analytics, cloud computing, and AI to enhance operational efficiency and drive business growth.
Core Values
- Customer-Centric Approach
- Innovation and Excellence
- Integrity and Transparency
- Team Collaboration
- Commitment to Sustainability
Financial Performance
For the third quarter of 2024, Grid Dynamics reported revenues of $87.4 million, reflecting a 12.9% increase compared to $77.4 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $250.3 million, up from $234.8 million in 2023, marking a 6.6% growth.
| Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Revenues (in millions) | $87.4 | $77.4 | $250.3 | $234.8 |
| Net Income (Loss) (in thousands) | $4,282 | $676 | $(483) | $(4,667) |
| Gross Profit (in millions) | $32.7 | $28.2 | $90.0 | $85.0 |
| Operating Cash Inflows (in millions) | $9.2 | N/A | N/A | N/A |
Revenue Breakdown by Vertical
Grid Dynamics categorizes its revenues into several verticals, with notable performance in key sectors:
| Vertical | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9 Months 2024 Revenue (in thousands) | 9 Months 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Retail | $29,825 | $26,544 | $81,233 | $77,972 |
| Technology, Media and Telecom | $24,188 | $23,732 | $71,449 | $74,639 |
| Finance | $14,158 | $7,299 | $36,967 | $20,562 |
| CPG/Manufacturing | $9,807 | $9,668 | $29,209 | $33,186 |
| Healthcare and Pharma | $2,510 | $3,434 | $8,677 | $10,292 |
| Other | $6,947 | $6,742 | $22,754 | $18,190 |
Strategic Initiatives
To achieve its mission, Grid Dynamics focuses on:
- Investing in advanced technologies and platforms.
- Enhancing customer engagement through tailored solutions.
- Expanding its market presence in high-growth verticals.
- Building a sustainable and resilient operational model.
Conclusion
Grid Dynamics remains dedicated to its mission of driving digital transformation through innovative solutions, ensuring continued growth and success in the evolving technological landscape.
How Grid Dynamics Holdings, Inc. (GDYN) Works
Business Overview
Grid Dynamics Holdings, Inc. is a leading provider of technology consulting, platform and product engineering, and advanced analytics services. The company specializes in enterprise artificial intelligence, cloud, data, and advanced analytics.
Financial Performance
As of September 30, 2024, Grid Dynamics reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $87.4 million | $77.4 million | $250.3 million | $234.8 million |
| Cost of Revenues | $54.7 million | $49.3 million | $160.3 million | $149.8 million |
| Gross Profit | $32.7 million | $28.2 million | $90.0 million | $85.0 million |
| Net Income | $4.3 million | $0.7 million | $(0.5) million | $(4.7) million |
| Income/(Loss) per Share | $0.05 | $0.01 | $(0.01) | $(0.06) |
Revenue Breakdown by Vertical
The following table presents Grid Dynamics' revenues by vertical for Q3 2024 and the corresponding period in 2023:
| Vertical | Q3 2024 Revenue | Q3 2023 Revenue | 9M 2024 Revenue | 9M 2023 Revenue |
|---|---|---|---|---|
| Retail | $29.8 million (34.1%) | $26.5 million (34.3%) | $81.2 million (32.5%) | $78.0 million (33.2%) |
| Technology, Media and Telecom | $24.2 million (27.7%) | $23.7 million (30.7%) | $71.4 million (28.5%) | $74.6 million (31.8%) |
| Finance | $14.2 million (16.2%) | $7.3 million (9.4%) | $37.0 million (14.8%) | $20.6 million (8.8%) |
| CPG/Manufacturing | $9.8 million (11.2%) | $9.7 million (12.5%) | $29.2 million (11.7%) | $33.2 million (14.1%) |
| Healthcare and Pharma | $2.5 million (2.9%) | $3.4 million (4.4%) | $8.7 million (3.5%) | $10.3 million (4.4%) |
| Other | $6.9 million (7.9%) | $6.7 million (8.7%) | $22.8 million (9.0%) | $18.2 million (7.7%) |
Operating Expenses
Grid Dynamics' operating expenses for the three and nine months ended September 30, 2024, are summarized below:
| Expense Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Engineering, R&D | $4.4 million | $3.4 million | $12.9 million | $10.9 million |
| Sales and Marketing | $6.8 million | $6.1 million | $21.4 million | $17.7 million |
| General and Administrative | $19.3 million | $18.5 million | $59.0 million | $60.9 million |
| Total Operating Expenses | $30.6 million | $28.0 million | $93.3 million | $89.5 million |
Cash Flow Highlights
The cash flow summary for the nine months ended September 30, 2024, is as follows:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net cash provided by operating activities | $23.1 million | $33.5 million |
| Net cash used in investing activities | $(41.3) million | $(23.4) million |
| Net cash used in financing activities | $(7.8) million | $(14.5) million |
| Cash and cash equivalents at end of period | $231.3 million | $253.7 million |
Market Position and Strategy
Grid Dynamics continues to focus on expanding its presence in key verticals, with significant growth in the Finance sector, driven by increased demand from fintech and insurance customers. The company is also focused on enhancing its engineering capabilities and product offerings to maintain competitive advantage.
How Grid Dynamics Holdings, Inc. (GDYN) Makes Money
Revenue Sources
Grid Dynamics Holdings, Inc. (GDYN) generates revenue primarily through technology consulting, platform and product engineering, and advanced analytics services. For the three months ended September 30, 2024, the company reported total revenues of $87.4 million, a 12.9% increase from $77.4 million in the same period of 2023. For the nine months ended September 30, 2024, revenues were $250.3 million, up 6.6% from $234.8 million year-over-year .
Revenue by Vertical
The revenue breakdown by vertical for the three and nine months ended September 30, 2024, is as follows:
| Vertical | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) | Percentage of Total Revenue (Q3 2024) |
|---|---|---|---|---|---|
| Retail | $29,825 | $26,544 | $81,233 | $77,972 | 34.1% |
| Technology, Media, and Telecom | $24,188 | $23,732 | $71,449 | $74,639 | 27.7% |
| Finance | $14,158 | $7,299 | $36,967 | $20,562 | 16.2% |
| CPG/Manufacturing | $9,807 | $9,668 | $29,209 | $33,186 | 11.2% |
| Healthcare and Pharma | $2,510 | $3,434 | $8,677 | $10,292 | 2.9% |
| Other | $6,947 | $6,742 | $22,754 | $18,190 | 7.9% |
Cost of Revenues
For the three months ended September 30, 2024, Grid Dynamics reported a cost of revenues of $54.7 million, an increase of 11.0% from $49.3 million in the same period of 2023. For the nine months, the cost of revenues reached $160.3 million, up 7.0% from $149.8 million year-over-year .
Gross Profit and Margin
The gross profit for the three months ended September 30, 2024, was $32.7 million, reflecting a gross margin of 37.4%, compared to 36.4% in Q3 2023. For the nine months ended September 30, 2024, gross profit stood at $90.0 million with a gross margin of 35.9% .
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $30.6 million, increasing from $28.0 million in the same period of 2023. Significant components included:
- Engineering, Research, and Development: $4.4 million
- Sales and Marketing: $6.8 million
- General and Administrative: $19.3 million
For the nine-month period, total operating expenses were $93.3 million .
Net Income
Grid Dynamics reported a net income of $4.3 million for the three months ended September 30, 2024, compared to a net income of $0.7 million in the same period of 2023. For the nine months ended September 30, 2024, the company experienced a net loss of $0.5 million .
Cash Flow Analysis
For the nine months ended September 30, 2024, Grid Dynamics generated $23.1 million in net cash from operating activities, a decrease from $33.5 million in the same period of 2023. The company used $41.3 million in investing activities, primarily for the acquisition of JUXT .
Customer Concentration
Grid Dynamics has a notable customer concentration, with the top one customer contributing 17.1% of total revenues in Q3 2024, while the top five customers accounted for 39.8% .
Conclusion
Grid Dynamics Holdings, Inc. continues to derive its revenue from a diversified set of verticals, with a significant focus on technology consulting and engineering services. The company's financial performance reflects both growth in revenue and strategic investments in operational capabilities.
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Article updated on 8 Nov 2024
Resources:
- Grid Dynamics Holdings, Inc. (GDYN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Grid Dynamics Holdings, Inc. (GDYN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Grid Dynamics Holdings, Inc. (GDYN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.