Core Viewpoint - Grid Dynamics (GDYN) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, and showing an increase from $0.07 per share a year ago, indicating a 20% earnings surprise [1][2] Financial Performance - The company achieved revenues of $100.28 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.46%, compared to $78.07 million in the same quarter last year [2] - Over the last four quarters, Grid Dynamics has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - Grid Dynamics shares have declined approximately 3% since the beginning of the year, while the S&P 500 has gained 4.5% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.09 for the upcoming quarter and $0.44 for the current fiscal year, with revenues expected to be $95.25 million and $408.19 million respectively [7] Industry Context - The Computers - IT Services industry, to which Grid Dynamics belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable environment for performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Revenue Growth - Fourth quarter 2024 revenues reached $100.3 million, a year-over-year growth of 28.5%[2] - Full year 2024 revenues totaled $350.6 million, up from $312.9 million in 2023, representing a 12.0% increase[11] - Revenues for the three months ended December 31, 2024, were $100,282 thousand, a 28.4% increase from $78,069 thousand in the same period of 2023[26] - Total revenue for Q4 2024 was $100,282 million, a 28.4% increase from $78,069 million in Q4 2023[41] - The Finance vertical experienced significant growth, with a year-over-year increase of 180.1%[2] - The Finance vertical saw substantial growth, with revenue increasing to $23,190 million in Q4 2024 from $8,280 million in Q4 2023, representing a 179.4% increase[41] - Retail revenue for the year ended December 31, 2024, was $113,957 million, slightly up from $102,551 million in 2023, maintaining a stable market share[41] Income and Earnings - GAAP net income for Q4 2024 was $4.5 million, or $0.05 per share, compared to $2.9 million, or $0.04 per share, in Q4 2023[6] - Non-GAAP net income for the full year 2024 was $37.2 million, or $0.47 per share, compared to $31.7 million, or $0.42 per share, in 2023[11] - Non-GAAP net income for Q4 2024 reached $10,284 million, up from $7,489 million in Q4 2023, reflecting a growth of 37.5%[37] - The company's GAAP diluted EPS for Q4 2024 was $0.05, compared to $0.04 in Q4 2023[37] - Non-GAAP diluted EPS for Q4 2024 was $0.12, up from $0.10 in Q4 2023, indicating a 20% increase[37] - Net income for the year ended December 31, 2024, was $4,041 thousand, compared to a net loss of $1,765 thousand in 2023[26] Expenses and Costs - The company reported total operating expenses of $129,110 thousand for the year ended December 31, 2024, compared to $118,726 thousand in 2023, a rise of 8.5%[26] - The company incurred acquisition-related costs of $43,072 thousand for the year ended December 31, 2024, compared to $17,830 thousand in 2023[30] - The company incurred $34,167 million in stock-based compensation for the year ended December 31, 2024, compared to $35,516 million in 2023, showing a decrease[37] - The company has implemented a restructuring plan, resulting in restructuring costs of $1,413 million for the year ended December 31, 2024[39] Cash and Assets - Cash and cash equivalents as of December 31, 2024, totaled $334.7 million, up from $257.2 million a year earlier[11] - Cash and cash equivalents increased to $334,655 thousand as of December 31, 2024, from $257,227 thousand in 2023, representing a 30% increase[28] - Total assets grew to $592,192 thousand as of December 31, 2024, up from $435,165 thousand in 2023, reflecting a 36.2% increase[28] Future Outlook - The company expects full year 2025 revenues to be between $415.0 million and $435.0 million, indicating a growth of 18.4% to 24.1% year-over-year[11] - The AI opportunities pipeline grew to over 130, representing a 30% increase from the previous quarter[4] Employment - Total headcount increased to 4,730 employees as of December 31, 2024, compared to 3,920 a year prior[11] EBITDA - Non-GAAP EBITDA for Q4 2024 was $15.6 million, compared to $10.7 million in Q4 2023[6] - Non-GAAP EBITDA for the year ended December 31, 2024, was $52,474 thousand, compared to $44,246 thousand in 2023, indicating an 18.6% increase[36]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Grid Dynamics (GDYN) - GDYN currently holds a Momentum Style Score of A, indicating strong momentum potential [2][13] - GDYN shares have increased by 7.22% over the past week, outperforming the Zacks Computers - IT Services industry, which declined by 1.34% during the same period [4] - Over the last month, GDYN's price change is 10.84%, significantly better than the industry's 0.21% performance [4] Earnings Outlook - In the past two months, four earnings estimates for GDYN have been revised upwards, while none have been lowered, raising the consensus estimate from $0.32 to $0.34 [10] - For the next fiscal year, three estimates have increased, with one downward revision noted [10] Performance Metrics - GDYN shares have risen by 49.33% over the past quarter and 53.91% over the last year, compared to the S&P 500's increases of 5.41% and 28.01%, respectively [11] - The average 20-day trading volume for GDYN is 606,429 shares, which is considered a bullish indicator when combined with rising stock prices [9] Investment Potential - GDYN is rated as a 1 (Strong Buy) stock, supported by its strong Momentum Score of A, making it a promising candidate for investors seeking short-term gains [7][13]

Core Points - Grid Dynamics Holdings Inc. will replace Revelyst Inc. in the S&P SmallCap 600 effective January 2, 2025 [1][2] - The acquisition of Revelyst by Strategic Value Partners is expected to close soon, pending final conditions [1] Summary by Category Company Changes - Grid Dynamics Holdings (Ticker: GDYN) will be added to the S&P SmallCap 600 [2] - Revelyst (Ticker: GEAR) will be removed from the S&P SmallCap 600 [2] Sector Information - Grid Dynamics operates in the Information Technology sector [2] - Revelyst operates in the Consumer Discretionary sector [2]

Grid Dynamics (GDYN) came out with quarterly earnings of $0.10 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.08, delivering a surprise of 14.29%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Grid Dynamics, which belongs to t ...

Revenue Growth and Performance - Record quarterly revenues of $87.4 million, up 12.9% year-over-year[101] - Revenues for the three months ended September 30, 2024 increased by 12.9% to $87.4 million compared to $77.4 million in the prior-year period[116] - Revenues for the nine months ended September 30, 2024 grew 6.6% to $250.3 million compared to $234.8 million in the prior-year period[116] - Retail vertical contributed 34.1% of total revenues in the third quarter of 2024, with revenues increasing 12.4% to $29.8 million compared to $26.5 million in the prior-year period[118] - Finance vertical revenues almost doubled, reaching $14.2 million and $37.0 million for the three and nine months ended September 30, 2024, respectively, compared to $7.3 million and $20.6 million in the prior-year periods[121] Profitability and Margins - GAAP gross profit margins improved to 37.4% in Q3 2024, up 1.0% from the prior year[101] - Gross profit increased 16.3% to $32.7 million in the third quarter of 2024 and 5.8% to $90.0 million for the nine-month period[127] - Net income of $4.3 million in Q3 2024, compared to $0.7 million in 2023[101] - Net income for the three months ended September 30, 2024 was $4.3 million, compared to $0.7 million in the prior-year period[115] - Net loss for the nine months ended September 30, 2024 was $0.5 million, compared to a net loss of $4.7 million in the prior-year period[116] - Non-GAAP EBITDA of $14.8 million, or 16.9% of revenues, compared to $10.7 million, or 13.9% of revenues, in Q3 2023[102] - Non-GAAP EBITDA for Q3 2024 was $14.8 million, up from $10.7 million in Q3 2023, and $36.8 million for the nine months ended September 30, 2024, compared to $33.6 million in the same period of 2023[143] - Non-GAAP net income for Q3 2024 was $8.1 million, up from $5.9 million in Q3 2023, and $19.4 million for the nine months ended September 30, 2024, compared to $19.4 million in the same period of 2023[145] - Non-GAAP diluted EPS for Q3 2024 was $0.10, up from $0.08 in Q3 2023, and $0.25 for the nine months ended September 30, 2024, compared to $0.25 in the same period of 2023[145] Expenses and Costs - Cost of revenues increased 11.0% to $54.7 million in the third quarter of 2024 and 7.0% to $160.3 million for the nine-month period[126] - Engineering, research, and development expenses grew 30.7% to $4.4 million in the third quarter of 2024 and 19.0% to $12.9 million for the nine-month period[129] - Sales and marketing expenses increased 11.2% to $6.8 million in the third quarter of 2024 and 20.7% to $21.4 million for the nine-month period[131] - General and administrative expenses increased by 4.6% to $19.3 million in Q3 2024 compared to $18.5 million in the prior year period, but decreased by 3.2% to $59.0 million for the nine months ended September 30, 2024, primarily due to lower stock-based compensation expenses[133] Cash Flow and Financial Position - Operating cash inflows reached $9.2 million, with $39.5 million invested in the acquisition of JUXT[102] - Cash and cash equivalents decreased to $231.3 million as of September 30, 2024, from $257.2 million at December 31, 2023, with $38.7 million held outside the United States[148] - The company has a $30.0 million revolving credit facility with JPMorgan Chase Bank, N.A., with no debt outstanding as of September 30, 2024[147] - Net cash provided by operating activities decreased by $10.4 million to $23.1 million in the nine months ended September 30, 2024, compared to $33.5 million in the same period of 2023[150] - Net cash used in investing activities increased to $41.3 million in the nine months ended September 30, 2024, primarily due to the $32.1 million acquisition of JUXT and a 50% increase in capital expenditures to $9.1 million[151] - Net cash used in financing activities decreased by $6.7 million to $7.8 million in the nine months ended September 30, 2024, compared to $14.5 million in the same period of 2023[152] Customer and Employee Metrics - Top one customer accounted for 17.1% of revenues in Q3 2024, up from 14.3% in Q3 2023[114] - Top five customers accounted for 39.8% of revenues in Q3 2024, up from 36.8% in Q3 2023[114] - Total number of customers decreased from 265 in 2023 to 229 in 2024[112] - Total employees increased to 4,298 as of September 2024, up from 3,823 in 2023[109] Foreign Currency Exposure - Approximately 43.0% of Grid Dynamics' $85.3 million combined cost of revenues and operating expenses were denominated in non-U.S. dollar currencies in Q3 2024, up from 38.0% in Q3 2023[158] - A 10% decrease in the value of the Polish zloty against the U.S. dollar would increase Grid Dynamics' income from operations by $1.5 million in Q3 2024, while a 10% increase would decrease it by $1.8 million[158] - A 10% decrease in the value of the Mexican peso against the U.S. dollar would increase Grid Dynamics' income from operations by $0.3 million in Q3 2024, while a 10% increase would decrease it by $0.4 million[159] - Approximately 41.2% of Grid Dynamics' $253.7 million combined cost of revenues and operating expenses were denominated in non-U.S. dollar currencies in the nine months ended September 30, 2024, up from 38.0% in the same period of 2023[161] - A 10% decrease in the value of the Polish zloty against the U.S. dollar would increase Grid Dynamics' income from operations by $4.0 million in the nine months ended September 30, 2024, while a 10% increase would decrease it by $4.9 million[161] - A 10% decrease in the value of the Mexican peso against the U.S. dollar would increase Grid Dynamics' income from operations by $1.0 million in the nine months ended September 30, 2024, while a 10% increase would decrease it by $1.2 million[162] - Grid Dynamics does not currently hedge its foreign currency exposure but may evaluate new hedging strategies in future periods[165] Other Income and Tax Provisions - Other income reached $3.5 million in Q3 2024 and $8.7 million for the nine months ended September 30, 2024, driven by gains from money market funds and increased fair value of marketable equity securities[135] - Provision for income tax decreased to $1.3 million in Q3 2024 from $2.6 million in Q3 2023, and to $5.8 million for the nine months ended September 30, 2024 from $8.0 million in the same period of 2023, mainly due to Section 162(m) compensation deduction limitations and foreign inclusion adjustments[137] Operational Changes - Grid Dynamics ceased operations in Russia and liquidated its former subsidiary as of May 2023[105]

Grid Dynamics (GDYN) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.07 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 14.29%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.07, delivering a surprise of -12.50%. Over the last four quarters, the company ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in its Charter) | Delaware | 83-0632724 | | --- | --- | | (State or other jurisdiction | (I.R.S. Employer | | of incorporation or or ...

Exhibit 99.1 Grid Dynamics Reports First Quarter 2024 Financial Results Revenue of $79.8 million and GAAP Net Loss of $3.9 million San Ramon, Calif. May 2, 2024 – Grid Dynamics Holdings, Inc. (Nasdaq: GDYN) ("Grid Dynamics" or "Company"), a leader in enterprise-level digital transformation, today announced results for the first quarter ended March 31, 2024. We are very pleased to report the first quarter 2024 revenues of $79.8 million that was higher than our outlook range of $77.0 million to $79.0 million ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K ________________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38685 ________________________________________________________________ Grid Dyna ...