NASDAQ$GDYN

Grid Dynamics Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported revenue of $80.1 million, a 12.1% year-over-year increase.

Grid Dynamics reported a revenue of $80.1 million for Q1 2023, representing a 12.1% year-over-year increase. The company's non-retail industry verticals accounted for 68.3% of the revenue. GAAP net loss attributable to common stockholders was $(8.0) million, or $(0.11) per share. Non-GAAP net income was $6.5 million, or $0.08 per diluted share.

  • Revenue was $80.1 million, up 12.1% year-over-year.
  • GAAP gross profit was $28.6 million, or 35.7% of revenue.
  • GAAP Net loss was $(8.0) million, or $(0.11) per share.
  • Non-GAAP Net income was $6.5 million, or $0.08 per diluted share.

Headline financials

Total Revenue

$80.1M

Previous: $71.4M+12.1%
EPS (adj)

$0.08

Previous: $0.10-20.0%
Capital Expenditures

-$1.59M

Previous: -$1.65M+3.9%
Free Cash Flow

-$9.56M

Previous: -$4.32M-121.3%
Net Income

-$7.97M

Previous: -$2.67M-198.8%
Operating Income

-$5.99M

Previous: $203K-3051.7%
Gross Profit

$28.6M

Previous: $26.8M+6.7%
Cash & Equivalents

$258M

Previous: $153M+68.5%
Total Assets

$420M

Previous: $276M+52.1%
Stock-Based Comp

$13.3M

Previous: $8.66M+53.1%

Revenue & EPS history

Grid Dynamics · Revenue · Quarterly

$80.1M

Q1 2023+12.1%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Grid Dynamics · $80.1M total across 5 segments · Q1 2023

  • TMT
    $26.8M+25.0%
  • Retail
    $25.4M+9.0%
  • CPG/Manufacturing
    $12.6M-15.6%
  • Other
    $8.71M+21.8%
  • Finance
    $6.52M+43.9%

Forward guidance

The Company expects revenue in the second quarter of 2023 to be between $76.0 million and $78.0 million. Non-GAAP EBITDA in the second quarter of 2023 is expected to be between $10.0 million and $11.0 million.

Tailwinds

  • Revenue in Q2 2023 is expected to be between $76.0 million and $78.0 million.
  • Non-GAAP EBITDA in Q2 2023 is expected to be between $10.0 million and $11.0 million.
  • Basic share count to be in the 75-76 million range.
  • Diluted share count to be in the 78-79 million range.
  • Company is executing on its strategy

Headwinds

  • Grid Dynamics is not able, at this time, to provide GAAP targets for net income for the second quarter of 2023 because of the difficulty of estimating certain items excluded from Non-GAAP EBITDA that cannot be reasonably predicted
  • Macroeconomic conditions may affect financial performance
  • Relatively short operating history in a rapidly evolving industry
  • Revenues are highly dependent on a limited number of clients
  • Intense and increasing competition

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+3.2%

Avg return

Earnings day

+1.9%

Avg return

5 days after

+4.7%

Avg return

30 days after

69%

20 / 29 earnings

Positive

+28.3%

Q3 2021

Best reaction

-20.6%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.4%+8.7%+28.3%
Q4 2025-7.0%-7.4%-19.3%
Q3 2025+22.9%+18.0%+15.3%
Q1 2025-3.1%-5.3%-11.0%
Q4 2024+4.3%-2.8%-20.6%
Q3 2024-4.3%+0.6%+14.9%
Q2 2024+7.3%+4.7%+7.9%
Q1 2024+1.6%+9.7%-4.1%
Q4 2023+5.0%+2.7%-9.5%
Q3 2023+16.5%+13.6%+23.0%
Q2 2023+16.9%+13.9%+21.8%
Q1 2023-20.6%-25.0%-13.8%
Q4 2022+4.0%-1.9%-9.9%
Q3 2022-9.7%-13.8%-4.7%
Q2 2022+2.7%+0.6%+2.8%
Q1 2022+14.6%+5.1%+22.7%
Q4 2021-15.5%+7.0%+23.6%
Q3 2021+28.3%+28.1%+30.5%
Q2 2021+18.5%+15.1%+44.0%
Q1 2021+7.2%+7.2%+8.8%
Q4 2020-7.7%-4.4%+2.3%
Q3 2020+10.9%+12.5%+37.3%
Q2 2020+4.2%+8.4%+8.4%
Q1 2020-15.2%-12.1%-6.5%
Q2 2019+1.8%-15.6%-32.1%
Q4 2019+1.8%-15.6%-32.1%
Q3 2019+4.5%+4.1%+6.7%
Q1 2019+0.3%+0.3%+0.7%
Q4 2018-0.2%-0.2%+0.1%

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