Grid Dynamics Holdings: Full Year 2024 Earnings Beat Expectations

Grid Dynamics Holdings, Inc. (NASDAQ: GDYN), a leader in enterprise-level artificial intelligence and digital transformation, has reported its full year 2024 earnings, surpassing market expectations. The company's strong performance was driven by robust growth across various industry verticals and strategic acquisitions.



The company's full year 2024 revenue reached $350.6 million, up from $312.9 million in 2023, marking a 12.0% year-over-year increase. This growth was fueled by a 28.5% increase in fourth quarter revenues, which totaled $100.3 million, exceeding the October 2024 outlook range of $95.0 million to $97.0 million.

Grid Dynamics' Retail vertical remained the largest contributor to revenues, accounting for 32.6% of the fourth quarter's revenues. The Technology, Media and Telecom (TMT) and Finance verticals ranked second and third, respectively, each contributing approximately 23.0% of the consolidated revenues. Notably, the Finance vertical grew 63.8% and 180.1% on a sequential and year-over-year basis, driven by increased demand from fintech and insurance customers, as well as recent acquisitions.

The company's strong earnings performance was reflected in its financial highlights for the fourth quarter of 2024. Total revenues were $100.3 million, an increase of 14.7% and 28.5% on a sequential and year-over-year basis, respectively. GAAP gross profit was $37.0 million, or 36.9% of revenues, compared to $28.1 million, or 36.0% of revenues, in the prior year period. Non-GAAP gross profit was $37.6 million, or 37.5% of revenues, compared to $28.6 million, or 36.6% of revenues, in the fourth quarter of 2023.

Grid Dynamics' CEO, Leonard Livschitz, expressed confidence in the company's future prospects, stating, "We are excited about the opportunities in 2025. Our foundation is strong, and I am confident that we will successfully execute our strategy." The company's full year 2025 revenue guidance projects 20% growth over 2024, driven by five key priorities: leveraging strengths in AI and Data, increasing the number of accelerators and technology artifacts, expanding industry diversification, scaling delivery locations according to the "Follow-the-Sun" model, and deepening partnerships.



In conclusion, Grid Dynamics Holdings' full year 2024 earnings beat market expectations, driven by strong growth across various industry verticals and strategic acquisitions. The company's robust performance positions it well for future success, with a projected 20% revenue growth in 2025. Investors should closely monitor Grid Dynamics' progress as it continues to execute its strategic initiatives and capitalize on emerging opportunities in the AI and digital transformation landscape.