Grid Dynamics (GDYN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached a record $83.0M, up 7.4% year-over-year and 4.0% sequentially, exceeding guidance and driven by organic growth in digital transformation services for Fortune 1000 clients.

• Non-GAAP net income was $6.0M ($0.08/share), while GAAP net loss was $0.8M (–$0.01/share), mainly due to higher operating expenses and income tax provision.

• Achieved record billable engineer headcount of 3,961, with operations in 18 countries and expanded AI offerings to 30+ solutions targeting Fortune 500 clients.

• Strategic acquisitions in India and the US expanded capabilities in mobile, UI/UX, and cloud, supporting global delivery and industry diversification.

• Demand environment improved, with customers increasingly willing to release budgets and maintain or increase spending, supporting a positive outlook for the remainder of 2024.

Financial highlights

• Q2 2024 revenue was $83.0M, above guidance, with GAAP gross profit of $29.6M (35.6% margin) and non-GAAP gross profit of $30.1M (36.2% margin).

• Non-GAAP EBITDA was $11.7M (14.1% margin), up from $10.3M in Q1 2024 but down from $12.0M in Q2 2023.

• Non-GAAP net income was $6.0M ($0.08/share), up from $5.2M ($0.07) in Q1 2024.

• Cash and cash equivalents totaled $256.0M at quarter end, with no outstanding debt.

• Cash from operations for H1 2024 was $13.9M, down from $22.6M in the prior year period.

Outlook and guidance

• Q3 2024 revenue expected between $84.0M and $86.0M, with non-GAAP EBITDA guidance of $12.3M–$13.3M.

• Management is increasingly inclined to reinstate full-year guidance as business visibility improves, but notes ongoing macroeconomic and geopolitical uncertainties.

• Basic share count for Q3 expected at 77.0–78.0M; diluted at 79.0–80.0M.