Grid Dynamics Holdings, Inc. has recently released its 10-Q report, detailing its financial performance and operations for the period ended March 31, 2024. The company provides technology consulting, platform and product engineering, and analytics services globally, serving clients in various industries such as tech, media, telecommunications, retail, consumer packaged goods, manufacturing, and finance. Grid Dynamics' key financial highlights for the first quarter of 2024 include revenues of $79.8 million, a gross profit of $27.7 million, and a net loss of $3.9 million.
The company's loss from operations decreased by 7.5% to $5.5 million during the first quarter of 2024 compared to the same period in 2023. Grid Dynamics managed to reduce its net loss largely due to lower levels of stock-based compensation costs. Additionally, the company ended the first quarter of 2024 with Non-GAAP EBITDA of $10.3 million, or 12.9% of revenues, a slight decline from the corresponding period of 2023. Operating cash inflows decreased by 72.2% to $3.2 million, with capital expenditures doubling to $3.2 million mainly due to increased investments in computer hardware, related equipment, and office facilities caused by the expansion of the company's geographical presence.
Grid Dynamics mentioned in its report that it is actively monitoring the security of its personnel and the stability of its infrastructure, including communications and internet availability, in light of the military action in Ukraine. The company also announced the cessation of remaining operations in the Russian Federation and has worked towards the safe relocation of willing employees and ongoing management of projects to eliminate delivery impact to clients.
Key performance indicators and other factors affecting Grid Dynamics' performance include the number of employees by region, attrition rates, hours and utilization, and customer concentration. The company's revenue remained flat during the first quarter of 2024, with growth in the finance and other verticals from both existing and new clients, offset by a decline in other verticals such as retail and technology, media, and telecom.
As a result of these announcements, the company's shares have moved -0.7% on the market, and are now trading at a price of $9.84. For more information, read the company's full 10-Q submission here.
