GDYN - Grid Dynamics Holdings Inc. (GDYN) Q4 2023 Earnings Call Transcript
2024-02-22 20:52:04 ET
Grid Dynamics Holdings, Inc. (GDYN)
Q4 2023 Earnings Conference Call
February 22, 2024 4:30 PM ET
Company Participants
Bin Jiang – Head-Investor Relations
Leonard Livschitz – Chief Executive Officer
Anil Doradla – Chief Financial Officer
Conference Call Participants
Ryan Potter – Citi
Zachary Ajzenman – TD Cowen
Puneet Jain – JPMorgan
Josh Siegler – Cantor Fitzgerald
Presentation
Bin Jiang
Good afternoon, everyone. Welcome to Grid Dynamics Fourth Quarter and Full Year 2023 Earnings Conference Call. I’m Bin Jiang, Head of the Investor Relations. At this time, all participants are in listen-only mode. Joining us on the call today are CEO, Leonard Livschitz; and CFO, Anil Doradla. Following their prepared remarks, we will open the call to your questions. Please note, today’s conference is being recorded.
Before we begin, I would like to remind everyone that today’s discussion will contain forward-looking statements. This includes our business and financial outlook and the answers to some of your questions. Such statements are subject to the risks and uncertainties as described in the company’s earnings release and other filings with the SEC. During this call, we will discuss certain non-GAAP measures of our performance. GAAP to non-GAAP financial reconciliations and supplemental financial information are provided in the earnings press release and the 8-K filed with the SEC. You can find all the information I have just described in the Investor Relations section of our website.
With that, I will now turn the call over to Leonard, our CEO.
Leonard Livschitz
Thank you, Ben. Good afternoon, everyone, and thank you for joining us today. As you have seen from our published results, Grid Dynamics’s fourth quarter revenues were above our guidance range and exceeded Wall Street expectations. It was another quarter of solid execution and continued focus on our stated goals. The quarter witnessed a lot of activities, both in sales and CTO organizations, the two key areas within the company where we invested significantly in 2023. On the sales side, our industry-centric efforts are paying off across all the verticals. In 2023, we added 33 new logos, which is a strong testament to our differentiation in a year where customers were more selective toward business to digital providers.
With respect to the CTO office, our scientists and architects are heavily engaged with clients across the spectrum of innovative solutions, including AI, to drive meaningful business outcomes. To that end, we released several new functional accelerators across industry verticals, which have resulted in greater engagements across both new and existing customers. In supply chain manufacturing, pharmaceutical and financial services, which is area of focus with our GigaCube initiatives, the ability to offer unique and differentiated offerings has resulted in accelerated acceptance across a wide range of customers.
To support the strong demand for AI skills, we established comprehensive AI training programs. I’m happy to report that over 25% of our engineers are trained in generative AI, our AI curriculum is rigorous, and is segmented across three tracks, ranging from introductory AI to more advanced topics. It may take up to several quarters to complete the entire curriculum. On the macro front, I’m happy to report that the demand environment is improving. The demand trends are directionally consistent with my commentary over the last couple of quarters. While we’re yet to get back to normalized levels of growth, we’re moving in the right direction. In many ways, the sequential growth with our first quarter revenue guidance reflects our sentiment....
Grid Dynamics Holdings, Inc. (GDYN) Q4 2023 Earnings Call Transcript