A – Bin Jiang: Thank you, Anil. As we go to the Q&A Session of this call, I will first announce your name. At that point, please un-mute yourself and turn on your camera. Our first question comes from the line of Maggie Nolan from William Blair. Maggie, your line is open. Hi.
Maggie Nolan: Hi, thank you. Appreciate the update. The business sounds really solid, so congrats. I know you only guide one quarter at a time, but at this point in the year I’m wondering if there is any visibility, anything you can share with us, either quantitatively or qualitatively, about how the second quarter is coming together and beyond if there is anything to comment there.
Leonard Livschitz: Hi Maggie. Thank you for your question. Well, it’s interesting to start the ramp up of 2023, talk about six months going forward, but you probably sense the tone of conversation that we are a bit on a rebound and we do sound optimistic. I would say that without going into all the details, because the environment is still a bit of a complex. I would say that I expect Q2 to be our new high watermark in terms of our revenue position at all time now. It doesn’t sound a lot today, but if you look at the last 12 months, I think, we are kind of getting ourselves back to shape, to the normalized growth.
Maggie Nolan: Okay, great. And then great to see that new logo commentary, the additions that you’ve had. I am curious what we can expect from those in terms of the revenue ramp and the margin contribution as we see those accounts ramping.
Leonard Livschitz: Good. So, as you know, our model, probably it’s a little bit beat up by now it’s 85%, 10%, 5%, right. But this 5% is turning to be a little bit more predictable and some extent the 10% as well. So the larger logos which we grab upon now last quarter, the quarter after, they’re ultimately are a bit more defined in terms of the project based rather than pro concept based. So we have a little bit better anticipation of the ramp up of their logos. Saying that again, that gives me the confidence for some of the upswing for the company, but also I see the return back to the positive momentum on our existing logos. I think the question on the new enterprise logo, the winnings in late 2023 and what we already have actually in 2024 combined with some of the trends with larger existing customers gives that level of optimism.
Maggie Nolan: Thank you.
Leonard Livschitz: Thank you, Maggie.
Operator: Thanks, Maggie for your question. Next question comes from Ryan Potter from Citi. Ryan, please go ahead.
Ryan Potter: Hey, thanks for taking my question and a good quarter here. Want to start on headcount, it was good to see headcount growing sequentially on an organic basis in the quarter. But can you help reconcile the flattish sequential growth in the 1Q outlook versus this headcount growth? Is it tree [ph] view it more as a sign of you see a demand recovery coming later in the year? And then also any color you can give in terms of where you’re growing headcount the fastest, whether it be India or any other GS.
Leonard Livschitz: A lot of questions in one, getting demanding, right? So let me start with the last, because it kind of rolls back, right? So if you notice from even our press release, we indicated a bit of a shift in terms of the diversification. We see more on the rate of growth in what I say non-retail verticals or non-retail customer verticals. It doesn’t mean we’re moving away from B2C. It’s all B2B business. But the skills and capabilities in a more traditional skill set, in data management, cloud migrations, the bespoke tooling partnerships mentioned that combined with the new developed applications relate to the AI technologies. And that’s a separate point of discussion. Everybody’s asking that, right? This gives us a bit more upswing on a fintech, pharma.
We see more in a TMT, our favorite tech segment. So that gives us a bit more of, I would say, continuation of the growth. That, that – and again, those sectors a little bit less volatile even though the economy has not been stable again. And the first part of the question, I believe you wanted to know specifically accounts, can you just give me a little bit more lean on what…
Anil Doradla: Yes. The headcount growth versus the flattish outlook sequential is a sign of demand to come later in year.
Leonard Livschitz: Right, right, right. So this is about reading on tea leaves, right? So the growth of the headcount happens in India, that’s one area, as we mentioned again is picking up. I think our customer base has grown with understanding of our versatility of the following the sun strategy. What it means, it means that Grid Dynamics provides the same quality level of services whether we’re in Europe, in Latin America or in India. And the access to talent in India is quite larger from the market, but everybody is there. So you see the little bit uptick part of it that it’s a little bit longer time to bring the talent in India. So we need to start building the pipeline there. Not saying we’re going to reshuffle some of the people in Europe.
There is – there are many activities there, but that’s where the growth coming and it just requires a bit more the capable people. And also you’ve noticed we talked about our presentation about rigorous training program, right, so mentioned that it takes sometimes up to a quarter to bring the talent up to speed with the new tools and capabilities, specifically in AI/ML sector. So it’s an investment of the, I would say rounding the people and building the pipeline of capable technical execution folks. And India is at the forefront.
Ryan Potter: Got it. And echoing that was good to see the sales momentum continue in the quarter. But as the demand environment stabilizes in your existing client base, should we foresee any changes to your sales strategy in 2024, we have to shift more sales org more to kind of expansion with clients versus hunting new logos or are you able to continue to balance both efforts?
