Thu, May 1, 8:45 PM (16 days ago)
**Grid Dynamics Holdings, Inc. (GDYN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $100.4 million, up 25.8% YoY, driven by strong performance across multiple verticals, notably Finance and Retail. - **Gross Profit Margin:** 36.8%, improved by 2.1% YoY, due to higher revenues and improved utilization. - **Net Income:** $2.9 million, a significant improvement from a net loss of $3.9 million in Q1 2024. - **Operating Cash Flow:** $9.4 million, an improvement of $6.1 million YoY. - **Non-GAAP EBITDA:** $14.6 million, or 14.5% of revenues, up from $10.3 million in Q1 2024. - **Earnings per Share (EPS):** $0.03, compared to a loss of $0.05 in Q1 2024. **Operational Metrics:** - **Customer Base:** 204 customers, a slight decrease from 210 a year ago. - **Customer Concentration:** One customer accounted for 14.2% of revenues, down from 16.7% in Q1 2024. - **Employee Count:** 4,926 employees, up from 3,892 in Q1 2024, with significant growth in Europe and the Americas. **Trends and Uncertainties:** - **Geopolitical Risks:** Ongoing military actions in Ukraine and related sanctions pose risks to operations and financial performance. - **Currency Fluctuations:** Significant exposure to foreign currency exchange rates, particularly the Polish zloty and Mexican peso. - **Acquisitions:** Recent acquisitions (Mobile Computing and JUXT) contributed to revenue growth and expanded market presence. **Future Operations Impact:** - **Growth Strategy:** Continued focus on digital transformation, AI, and cloud services. - **Expansion:** Plans to expand internationally and integrate acquired companies. - **Financial Flexibility:** Strong cash position and access to credit facilities to support growth and strategic investments. **Conclusion:** Grid Dynamics demonstrated robust revenue growth and improved profitability in Q1 2025. The company's strategic acquisitions and focus on high-growth verticals position it well for future success. However, geopolitical risks and currency fluctuations remain significant uncertainties. The company's strong financial position and strategic initiatives should support continued growth and operational resilience.