Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET
Company Participants
Bin Chiang - Head, Investor Relations
Leonard Livschitz - Chief Executive Officer
Anil Doradla - Chief Financial Officer
Conference Call Participants
Josh Siegler - Cantor Fitzgerald
Ryan Potter - Citi
Maggie Nolan - William Blair
Puneet Jain - JPMorgan
Bryan Bergin - Cowen
Mayank Tandon - Needham
Bin Chiang
Good afternoon everyone. Welcome to Grid Dynamics Third Quarter 2022 Earnings Conference Call. I am Bin Chiang, Head of Investor Relations. [Operator Instructions]
Joining us on the call today are CEO, Leonard Livschitz; and CFO, Anil Doradla. Following their prepared remarks, we will open the call to your questions. Please note, today’s conference is being recorded.
Before we begin, I would like to remind everyone that today’s discussion will contain forward-looking statements. This includes our business and financial outlook and the answers to some of your questions. Such statements are subject to the risks and uncertainties described in the Company’s earnings release and other filings with the SEC. During this call, we’ll discuss certain non-GAAP measures of our performance. GAAP to non-GAAP financial reconciliations and supplemental financial information are provided in the earnings press release and the 8-K filed with the SEC. You can find all the information I have just described in the Investor Relations section of our website.
With that, I will now turn the call over to Leonard, our CEO.
Leonard Livschitz
Thank you, Ben. Good afternoon, everyone and thank you for joining us today. Q3, 2022 was another record revenue quarter of $81.2 million, and this marked the ninth consecutive quarter of record revenue in the company’s history. We performed exceptionally well across multiple areas. Additionally, our third quarter results exceeded our guidance with respect to the revenue and profitability.
For the first time as a public company, we surpassed our target operating model of 40% gross margin and 20% EBITDA margin on a non-GAAP basis. The better-than-expected performance was due to a couple of factors. First, during the quarter, we witnessed strong demand across some of our large technology customers, as they continued to ramp on both existing and new programs; and second, we witnessed strong momentum with recent logo wins. Notably, we enter the fourth quarter in 2023 with a very robust pipeline with the new client business.
Customers are even more seeking to partner with Grid Dynamics for their strategic digital transformation initiatives, and we’re increasingly viewed as a company that can provide scalable, high-quality engineering. I’m confident of our strengths and believe the company is well positioned to grow successfully.