Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) Q2 2023 Earnings Call Transcript

Leonard Livschitz: Yeah. One more discreet comment on that. In the very early of this session, Puneet asked a question about the contribution of the new clients. So that’s one of the areas where we see also the contribution later in the year, whether it’s going to be a larger or medium time will tell be a larger or medium. Time will tell in a month or two, so we’ll talk about this in November. And from the existing customers, I would not call it the budget flush. And the reason being is we find that more and more as we grow through the diversity of the industries, they tend to have fiscal years not necessarily aligned with calendar years. What we do see for the Q4, it’s what’s missing from the investments earlier in the year, they may consider to start this slightly earlier. But again, as Anil said, it’s a bit speculative, but it’s not without a reason.

Mayank Tandon : That’s a helpful color. Then my second question is really more housekeeping. One, Anil, what was the revenue contribution from the acquisition in the second quarter? Was that for the full quarter? And then also, really good to see the stock compensation expense come down as a percentage. Should we assume that is the run rate going forward or should we expect further drops maybe more in line with industry peers?

Anil Doradla: So I’ll start with the second question. Yes, the way you should model is, I’ll leave seven– we had about 7.1 at the end of this quarter, right? So plus minus around that range for the remainder of the year. So that’s a good observation that you made. In terms of the new logos and I mean new acquisition revenue contribution, as you know, next year was acquired on April 18, right? And as we said in the last quarter too, kind of, low to mid-single digits is what you should be looking at for my contribution.

Mayank Tandon : Sorry, just to be clear, low single digits in terms of absolute dollars, right?

Anil Doradla: Percentage.

Mayank Tandon : Got it. Great. Thanks so much.

Leonard Livschitz: Thank you.

Bin Chiang: Thank you, Mayank. Thanks for your question. Ladies and gentlemen, that will be all of the Q&A session today. At this moment, I’ll pass the line back to Leonard for closing remarks.

Leonard Livschitz: Thank you, everybody, for joining us on the call today. We continue to focus on executing towards our stated goals. There are many reasons to feel positive about our business. Great dynamics, strong execution, technology leadership, and flawless delivery set us up extremely well coming out of this economic spike. Our clients continue to place their confidence in our abilities and we continue to execute towards our plan, gearing for a $1 billion revenue company. Recent trends with AI only validate our technology strengths and I look forward to sharing with you many new and exciting updates in November. Thank you.