Grid Dynamics Reiterates Second Quarter 2023 Outlook

Significant Wins with at Least 8 New Large Enterprise Clients

SAN RAMON, CA / ACCESSWIRE / June 6, 2023 / Grid Dynamics Holdings, Inc. (Nasdaq:GDYN) ("Grid Dynamics"), a leader in enterprise-level digital transformation services and solutions, today reiterated its previously issued second-quarter 2023 outlook. The company expects to achieve the following financial results for the second quarter of 2023:

• Total revenue expected to be in the range of $76 million to $78 million
• Non GAAP EBITDA to be in the range of $10 million to $11 million
• Expecting at least eight new large enterprise logos in the second quarter of 2023

CEO Commentary

We continue to execute our plans shared with you in our first quarter earnings call commentary. Our foundation, strongly rooted in technology, consulting, and solving mission-critical complex engineering solutions, continue to appeal to new and existing world-leading clients. Our proprietary accelerator offerings, strong global delivery footprint, and many years of experience with Enterprise AI place us in a unique place within the modern digital space.

In the second quarter of 2023, we expect to close at least eight new significant logos across strategic industry verticals. We remain bullish on our new logo outlook and would like to highlight three noteworthy factors bolstering the growth. First, Grid Dynamics remains highly relevant in the current macro environment where customers are increasingly seeking partners with strong technology differentiation and relevant to achieving the customer's critical business objectives. Second, we benefit from our deep relationships and partnerships with large cloud providers and major software platforms. Third, our focus on building domain expertise across industry verticals (part of our GigaCube efforts) is paying off.

Grid Dynamics' global "Follow-the-Sun" strategy caters to clients across time zones with delivery centers in Central Europe, Americas, and India and is becoming increasingly attractive. Progress is well underway in integrating recently acquired U.S.-based firms, Mutual Mobile and NextSphere Technologies, with a strong presence in India.

Grid Dynamics AI engagements are based on more than seven years of internal research and successful implementations. We are witnessing exponential interest in our Enterprise AI solutions, particularly in Generative AI, including conversational AI and Data Harmonization solutions. More than 20 clients have shown interest in these projects, and partnerships have been initiated.

A testament to our strong AI competency is validated by the announcement this afternoon of a significant global partnership with Google Cloud for implementing innovative Generative AI solutions. Grid Dynamics will support many of our customers with Gen AI-powered solutions, including customer service, knowledge and training, data querying and summarization, code generation, and content creation.

Our progress is evident. We will continue to provide you with exciting updates.

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About Grid Dynamics

Grid Dynamics (Nasdaq: GDYN) is a digital-native technology services provider that accelerates growth and bolsters competitive advantage for Fortune 1000 companies. Grid Dynamics provides digital transformation consulting and implementation services in omnichannel customer experience, big dataanalytics, search, artificial intelligence, cloud & devops, and application modernization. Grid Dynamics achieves high speed-to-market, quality, and efficiency by using technology accelerators, an agile delivery culture, and its pool of global engineering talent. Founded in 2006, Grid Dynamics is headquartered in Silicon Valley with offices across the US, Mexico, UK, Europe, and India.

To learn more about Grid Dynamics, please visit www.griddynamics.com. Follow us on Facebook, Twitter, and LinkedIn.

Forward-Looking Statements

This communication contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results of Grid Dynamics to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes," "estimates," "anticipates," "expects," "intends," "plans," "may," "will," "potential," "projects," "predicts," "continue," or "should," or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include, without limitation, information about our financial results for the second quarter of 2023, the section titled "CEO Commentary," and statements concerning Grid Dynamics's expectations with respect to new logos and future performance, particularly in light of the macroeconomic environment and the Russian invasion of Ukraine.

These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside Grid Dynamics's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) Grid Dynamics has a relatively short operating history and operates in a rapidly evolving industry, which makes it difficult to evaluate future prospects and may increase the risk that it will not continue to be successful and may adversely impact our stock price; (ii) Grid Dynamics may be unable to effectively manage its growth or achieve anticipated growth, particularly as it expands into new geographies, which could place significant strain on Grid Dynamics' management personnel, systems and resources; (iii) Grid Dynamics' revenues are highly dependent on a limited number of clients and industries that are affected by seasonal trends, and any decrease in demand for outsourced services in these industries may reduce Grid Dynamics' revenues and adversely affect Grid Dynamics' business, financial condition and results of operations; (iv) macroeconomic conditions, inflationary pressures, and the geopolitical climate, including the Russian invasion of Ukraine, have and may continue to materially adversely affect our stock price, business operations, overall financial performance and growth prospects; (v) Grid Dynamics' revenues are highly dependent on clients primarily located in the United States, and any economic downturn in the United States or in other parts of the world, including Europe or disruptions in the credit markets may have a material adverse effect on Grid Dynamics' business, financial condition and results of operations; (vi) Grid Dynamics faces intense and increasing competition; (vii) Grid Dynamics' failure to successfully attract, hire, develop, motivate and retain highly skilled personnel could materially adversely affect Grid Dynamics' business, financial condition and results of operations; (viii) failure to adapt to rapidly changing technologies, methodologies and evolving industry standards may have a material adverse effect on Grid Dynamics' business, financial condition and results of operations; (ix) failure to successfully deliver contracted services or causing disruptions to clients' businesses may have a material adverse effect on Grid Dynamics' reputation, business, financial condition and results of operations; (x) risks and costs related to acquiring and integrating other companies; and (xi) other risks and uncertainties indicated in Grid Dynamics filings with the SEC.

Grid Dynamics cautions that the foregoing list of factors is not exclusive. Grid Dynamics cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Grid Dynamics does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Further information about factors that could materially affect Grid Dynamics, including its results of operations and financial condition, is set forth under the "Risk Factors" section of the Company's quarterly report on Form 10-Q filed May 4, 2023 and in other periodic filings Grid Dynamics makes with the SEC.

Contact:

investorrelations@griddynamics.com

SOURCE: Grid Dynamics