On November 2, 2023, Grid Dynamics Holdings Inc (GDYN, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a revenue of $77.4 million and a GAAP net income of $0.7 million. The non-retail industry verticals represented 65.7% of the revenue in the third quarter of 2023, marking a decrease of 0.8% on a sequential basis and 9.0% on a year-over-year basis.
Financial Performance
The company's GAAP gross profit was $28.2 million or 36.4% of revenue in the third quarter of 2023, compared to GAAP gross profit of $32.7 million or 40.3% of revenue in the third quarter of 2022. GAAP Net Income attributable to common stockholders was $0.7 million, or $0.01 per share, based on 75.5 million basic weighted-average common shares outstanding in the third quarter of 2023, compared to GAAP Net loss of $6.7 million, or $(0.10) per share, based on 68.6 million basic weighted-average common shares outstanding in the third quarter of 2022.
Company's Outlook
Grid Dynamics expects its fourth-quarter outlook to be similar to the third quarter outlook provided in August 2023 for both revenue and Non-GAAP EBITDA. Revenue in the fourth quarter of 2023 is expected to be between $76 million and $78 million and Non-GAAP EBITDA is expected to be between $10 million and $11 million.
Key Financial Tables
The company's total revenue was $77.4 million, flat on a year-over-year basis. Cash provided by operating activities was $33.5 million for the nine months ended September 30, 2023, compared to cash provided by operating activities of $19.6 million for the nine months ended September 30, 2022. Cash and cash equivalents totaled $253.7 million as of September 30, 2023, compared to $256.7 million as of December 31, 2022.
Company's Performance
Despite the challenging macro environment, Grid Dynamics has shown resilience and adaptability. The company's commitment to its clients and ability to execute its stated goals have resulted in positive trends in the quarter. The company signed ten new enterprise customers, bringing the total to 28 since the beginning of the year. Its AI capabilities continue to garner significant interest, and the company has completed multiple projects across industry verticals.
Other Pertinent Details
Grid Dynamics will host its first investor day in New York City on November 16th, 2023. The company looks forward to providing a deeper dive into its technological capabilities including AI, its global delivery footprint, and its plans around the Company’s GigaCube strategy.
Explore the complete 8-K earnings release (here) from Grid Dynamics Holdings Inc for further details.
