NASDAQ$GDYN

Grid Dynamics Holdings Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Grid Dynamics reported strong fourth quarter and full year 2024 financial results, with record revenues and profitability driven by growth across various industry verticals.

Grid Dynamics achieved record revenues of $100.3 million in Q4 2024, exceeding guidance, and reported a net income of $4.5 million. Full year revenues reached $350.6 million, marking a significant increase from the previous year. The company's growth was fueled by strong performance in the Financial vertical and strategic acquisitions.

  • Fourth quarter 2024 revenues reached a record $100.3 million, surpassing the company's outlook.
  • GAAP net income for Q4 2024 was $4.5 million, or $0.05 per diluted share.
  • Non-GAAP EBITDA for Q4 2024 was $15.6 million, up from $10.7 million in the prior year period.
  • The Financial vertical showed significant growth, increasing by 63.8% sequentially and 180.1% year-over-year.

Headline financials

Total Revenue

$100M

Previous: $78.1M+28.5%
EPS (adj)

$0.12

Previous: $0.07+71.4%
GAAP Gross Margin

36.9%

Previous: 36.0%+2.5%
Non-GAAP Gross Profit

$37.6M

Previous: $28.6M+31.5%
Non-GAAP Gross Margin

37.5%

Previous: 36.6%+2.5%
Non-GAAP EBITDA

$15.6M

Previous: $10.7M+46.2%
Net Income

$4.52M

Previous: $2.9M+55.9%
Operating Income

$1.26M

Previous: -$1.07M+218.4%
Gross Profit

$37M

Previous: $28.1M+31.8%

Revenue & EPS history

Grid Dynamics · Revenue · Quarterly

$100M

Q4 2024+28.5%vs Q4 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Grid Dynamics · $67.8M total across 4 segments · Q3 2023

  • Retail
    $26.5M+5.1%
  • TMT
    $23.7M-9.9%
  • Other
    $10.2M+36.9%
  • Finance
    $7.3M+20.2%

Forward guidance

Grid Dynamics expects full year 2025 revenues to be in the range of $415.0 million to $435.0 million, representing growth of 18.4% to 24.1% year-over-year. First quarter 2025 revenues are projected to be between $98.0 million and $100.0 million.

Tailwinds

  • Full year 2025 revenue guidance projects 20% growth over 2024.
  • Increasing demand for services across the customer base.
  • Leveraging strengths in AI and Data.
  • Expanding industry diversification and scaling delivery locations.
  • Recent acquisitions are being rapidly integrated, opening new revenue opportunities.

Headwinds

  • GAAP targets for net income for Q1 and full year 2025 are not provided due to difficulty in estimating certain excluded items.
  • The effect of excluded items on GAAP net income may be significant.
  • The company operates in a rapidly evolving industry, which can make future prospects difficult to evaluate.
  • Revenues are highly dependent on a limited number of clients and industries, making them susceptible to demand fluctuations.
  • Macroeconomic conditions and geopolitical climate could materially adversely affect performance.

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 Q4 2024

Historical avgQ4 2024

+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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