Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) Q3 2023 Earnings Call Transcript

Bryan Bergin: Hey, guys. Good to see you and good to hear the momentum. Thanks for taking the questions. I want to start on the new logos, the enterprises that you’re bringing in. So can you just talk about when some of these new enterprise logos in this quarter will begin to ramp? And then any change in the pace or really the starting point from some of those other attractive large logos that you signed earlier in the year?

Leonard Livschitz: Well, again, Bryan, I would, as Anil mentioned there are some additional revenue start coming for what he called recent logos. Remember for a very long time I was talking about 85, 10, 5. We’re start getting more dynamics in a similar fashion. So there are some payouts already happening. Also, some of the more older, more mature logos start coming back. The inventory of the technology development, which happened, let’s say, a year ago, start getting to deplete and they return back for competitive positioning in their corresponding fields. So that’s been one thing. The other one is how to churn the big enterprise logo of the consistent long-term deployment and make sure it doesn’t happen just by staffing. So, again, we see more and more engagements are coming in the form of the partnerships, and that’s been consistently a good story for us.

In addition to that, we invested into SMEs and we do have quite a bit of whitepapers and also educating our clients on the relevance of the specific initiatives. So that’s number two. And number three is, we are playing a very broad-based relationship, as we invested in the more sophisticated Salesforce, which you haven’t heard from me probably ever, but I’m getting finally a little bit more satisfied. So all three things combined with what we invested into R&D and accelerators started crunching on a bit more confidence of acquisition because you know, it’s not just momentum, you just hire, you’ve got a logo and it goes away. No, we see more traction and stability.

Bryan Bergin: Okay. Okay. That’s good to hear. And I’ll do a follow-up here on kind of two of your key industries, ones that have been a little more variable for you. So as we think about tech and CPG, just on tech, can you talk first about how the conversations with some of those large tech clients are evolving? And how is the outlook there? And then for the CPG, I heard the comment about the largest CPG clients stabilizing. Do you have visibility to the balance of that book of business stabilizing in other CPG and manufacturing clients yet?

Leonard Livschitz: Yes, let me start with the second, it’s easier. We see more RFPs and we see more QBR discussions. And they’re not just discussion on the formal level, you were doing a good job. The attendance of those discussions is overwhelming. And because we – in a time of a drought – invested in the relationship with the broader-based teams, not just engineering team, but also the logistics guys, the marketing team, experienced team. So there is a broad base of interest for us. So it is not just with the top one, with the top one, it’s a notable difference indeed, but we see others are becoming more diversified in terms of what conversations they have with us. So that’s kind of a broader base, right? And I forgot, sorry the first point.

Bryan Bergin: So that was CPGs, half of that question – the large TMT ones, yes.

Leonard Livschitz: Got it. So that part, the reason I forgot is because nothing extraordinary bad has happened, right? So I usually the angle people run to me when something happening. And the number one is doing very well and we are capturing more and more position there. And we’re a preferred supplier to some extent. And again, I want to be very modest, preferred supplier for the giants, it’s still not a dominant force. It’s just a more contributing value force. But the other one well, to start, there were projects which were won recently, that’s another interesting thing. Remember, I mentioned to you that it was a rapid change, there won’t change and they’re all layoffs. Again, if you’re patient enough and you retain relationships, you win some programs.