Q2 2025 Grid Dynamics Holdings Inc Earnings Call Transcript
Key Points
- Grid Dynamics Holdings Inc (GDYN) reported a record revenue of $101 million for the second quarter of 2025, marking an all-time high.
- The company's AI and data practice is growing almost three times faster than its overall organic business, accounting for 23% of the company's overall organic revenue.
- Recent acquisitions, such as JUXT, have significantly enhanced Grid Dynamics' industry expertise, particularly in banking and financial services.
- The company has successfully integrated engineering teams to support US enterprise accounts, enhancing its follow-the-sun capabilities.
- Grid Dynamics is experiencing increased traction with hyperscalers, notably Google, contributing to 17.9% of total revenue in Q2 2025.
- The company's gross margin declined on a sequential basis due to FX headwinds and increased engineering headcount.
- There was a decline in the number of customers, from 204 in the first quarter of 2025 to 194 in the second quarter, primarily due to rationalizing non-strategic customers.
- The Retail vertical, while remaining the largest, saw a sequential revenue decline of 6.2%, largely from home improvement customers.
- Non-GAAP EBITDA decreased from $14.6 million in the first quarter of 2025 to $12.7 million in the second quarter, impacted by FX fluctuations.
- The company faces macroeconomic uncertainties, which have led to caution in traditional digital transformation spending among enterprise clients.
Good afternoon, everyone. Welcome to Grid Dynamics' second-quarter 2025 earnings conference call.
I'm Cary Savas, Director of Branding and Communications.
(Operator Instructions)
Joining us on the call today are CEO, Leonard Livschitz; CFO, Anil Doradla; CTO, Eugene Steinberg; COO, Yury Gryzlov; and SVP, Americas, Vasily Sizov.
(Operator Instructions) Please note that today's conference call 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 a financial outlook and the answers to some of your questions. Such statements are subject to the risks and uncertainty 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
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