What changed in this filing

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Item 1. Business

2025-02-27 compared with 2024-02-29 · 47 added, 40 removed, 155 unchanged (36% of the section changed)

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Grid Dynamics Holdings, Inc.

(“Grid Dynamics,” “GDH,” the “Company,” “we,” “us,” or “our”) is a leading provider of technology consulting, platform and product engineering, and advanced analytics services.

(“Grid Dynamics,” the “Company,” “we,” “us,” or “our”) is a leading provider of technology consulting, platform and product engineering, and advanced analytics services.

Fusing technical vision with business acumen, we enable positive business outcomes for enterprise companies undergoing business transformation by solving their most pressing technical challenges.

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• a culture of engineering excellence, R&D investment, and innovation in groundbreaking technologies before they become ubiquitous;

• a co-innovation model with continuous knowledge-sharing throughout delivery that reduces implementation risk and time-to-value, enables enterprises to build in-house capabilities, retain control of proprietary technology and data, and benefit from the adoption of new technologies;

• a co-innovation model with continuous knowledge-sharing throughout delivery that reduces implementation risk and time-to-value, and enables enterprises to build in-house capabilities, retain control of proprietary technology and data, and benefit from the adoption of new technologies;

• a global footprint, and a “Follow-the-Sun” delivery model, bolstered by engineering talent driven by innovation and technical mastery, resulting in transformational business outcomes.

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With our proprietary processes optimized for innovation, emphasis on talent development, and technical expertise, Grid Dynamics is well-positioned for continued success.

Grid Dynamics has offices across the U.S., Mexico, Jamaica, the U.K., Europe, and India.

During the last three years, Grid Dynamics acquired NextSphere Technologies Inc.

Grid Dynamics has offices across the U.S., Mexico, Argentina, Jamaica, the U.K., other European countries, and India.

During the last four years, Grid Dynamics acquired Mobile Computing S.A.

(“Mobile Computing”), JUXT Ltd.

(“JUXT”), NextSphere Technologies Inc.

(“NextSphere”), Mutual Mobile Inc.

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Sophisticated and scalable software platforms developed and continuously adapted to enterprise needs propelled many of today's most successful companies.

Their unique business approaches and ability to move fast in adapting to changing market conditions allowed them to develop strong market positions and maintain defense against competitiors.

Their unique business approaches and ability to move fast in adapting to changing market conditions allowed them to develop strong market positions and maintain defense against competitors.

Grid Dynamics is well-placed as a strategic partner of choice for these opportunities.

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Our teams and programs are organized and orchestrated for continuous integration, self-sufficiency, and maximum business impact across regions.

Another strategic advantage of our “Follow-the-Sun” approach is that these geographies grow technology markets with large talent pools of highly skilled technical talent and cost-efficient scalability due to their large and well-recognized university infrastructures — a valuable asset for fueling our internship programs and attracting top talent.

As we expand our geographical

reach, we are also investing in developing a multi-discipline approach to address the challenges facing our clients.

infrastructures — a valuable asset for fueling our internship programs and attracting top talent.

As we expand our geographical reach, we are also investing in developing a multi-discipline approach to address the challenges facing our clients.

This involves developing hybrid team capabilities focused on end-to-end problem-solving.

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Grid Dynamics’ objective is to become a global leader in enabling digital transformation at Fortune 1000 companies.

Grid Dynamics’ strategy to achieve such an objective is based on leveraging the following core strengths.

Grid Dynamics’ strategy to achieve such objective is based on leveraging the following core strengths:

• Proprietary Processes Optimized for Innovation

Grid Dynamics recognizes the changing dynamics of the IT services space.

Increasingly, corporations expect their service providers to participate and help shape innovation programs.

Increasingly, corporations expect their service providers to participate in and help shape innovation programs.

This leads to the development of next-level capabilities that traditional service models, used by the traditional outsourcing providers, fail to address effectively.

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• Culture-First Approach to Talent Development

The ever-increasing role of digital transformation leads to the emergence of a new kind of business leader that combines a vision of business transformation with a deep understanding of possibilities brought together by modern digital technology.

The ever-increasing role of digital transformation leads to the emergence of a new kind of business leader who combines a vision of business transformation with a deep understanding of possibilities brought together by modern digital technology.

Earning the trust of these leaders is one of the pillars of Grid Dynamics’ success.

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Grid Dynamics demands accountability and ownership of a client’s success, whether or not such success is a contractual matter.

Understanding the goals of Grid Dynamics’ clients and the ability to manage such goals across reporting lines is a must for any leadership role within Grid Dynamics.

Understanding the goals of Grid Dynamics’ clients and the ability to manage such goals across reporting lines are a must for any leadership role within Grid Dynamics.

• Technological innovation .

Understanding digital transformation and successfully delivering strategic programs is impossible without a strong understanding of emerging technology.

Understanding digital transformation and successfully delivering strategic programs are impossible without a strong understanding of emerging technology.

Deep knowledge of how new technology, such as cloud, big data, and AI, transforms the way corporations develop their businesses is a prerequisite for leadership roles in Grid Dynamics.

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Grid Dynamics believes in great engineering underpinning mission-critical services.

From its inception, Grid Dynamics has built its engineering DNA with a focus on emerging technologies, leading with AI and generative AI, data engineering, cloud and microservices, DevOps and AIOps, modern frontend technologies, and QA automation.

By making advanced technology accessible to clients through experience and know-how, industry solutions, and accelerators, Grid Dynamics strengthens its position as a strategic technology partner with existing clients and attracts new clients.

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Our Cloud Platform and Product Engineering practice provides innovative services that enable businesses to harness the power of cloud computing and modern application development methodologies.

We specialize in architecting, designing, and building scalable, secure, and resilient cloud-based platforms and business applications that power digital transformation and business

We specialize in architecting, designing,

and building scalable, secure, and resilient cloud-based platforms and business applications that power digital transformation and business agility.

Our expertise in platform engineering, cloud migration and modernization, DevTestSecOps, microservices, and serverless architecture helps organizations generate more revenue, reduce costs, improve time to value, and enhance performance.

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• AI/ Machine Learning and Data Platform Engineering

In the domain of Data and Machine Learning Platform Engineering, we offer specialized services that empower businesses to unlock the full potential of their structured and unstructured data.

Our AI/Machine Learning and Data Platform Engineering practice offers specialized services that empower businesses to unlock the full potential of their structured and unstructured data.

Our team of experts builds robust, scalable platforms that facilitate batch and streaming data ingestion, quality, governance, orchestration, semantic modeling, observability, and analysis at scale.

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By merging technology with business processes, Grid Dynamics delivers tailored solutions in several key industry verticals:

Tech, Media, and Telecom (“TMT”);

Consumer Packaged Goods (“CPG”)/Manufacturing;

Tech, Media and Telecom

Grid Dynamics has a strong presence in the digital technology sector, particularly among analytics, SaaS, and platform vendors that are driven by a constant need for innovation.

Grid Dynamics’ long-lasting expertise in complex open-source technology and in building massively scalable distributed systems, the company-wide culture of agile co-creation as well as a deep understanding of digital commerce have enabled Grid Dynamics to build strong business relationships with the leading players in this sector.

For example, Grid Dynamics has been providing software engineering, continuous delivery and deployment automation, machine learning, internal tool development, and quality engineering services to one of the largest cloud services providers, becoming one of their key technological services partners.

By utilizing Grid Dynamics’ deep expertise in the digital retail space and providing a mix of consulting and engineering services, Grid Dynamics enables its clients to win market share, shorten time to market, and reduce the costs of digital operations.

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retail company over many years to develop a strategic omnichannel transformation program and became a key contributor to the development of a new omnichannel platform including consumer experience, product discovery, analytics, and inventory optimization.

• Technology, Media and Telecom

Grid Dynamics has a strong presence in the digital technology sector, particularly among analytics, SaaS, and platform vendors that are driven by a constant need for innovation.

Grid Dynamics’ expertise in complex open-source technology and in building massively scalable distributed systems, the company-wide culture of agile co-creation and deep understanding of digital commerce have enabled Grid Dynamics to build strong business relationships with leading players in this sector.

For example, Grid Dynamics has been providing software engineering, continuous delivery and deployment

automation, machine learning, internal tool development, and quality engineering services to one of the largest cloud services providers, becoming one of their key technological services partners.

With expertise in capital markets, banking, and wealth management, Grid Dynamics crafts technology solutions to help financial institutions drive innovation, accelerate digital transformation, and maximize the value of client interactions.

For example, we helped a core banking and payments provider modernize its security frameworks, enabling a shift to cloud-native architectures and DevOps.

In wealth and asset management, we use AI to build platforms that provide advisors with access to financial data, improving decision-making and client engagement.

These AI-driven solutions use digital assistants and analytics to synthesize client profiles, analyze investments, and deliver wealth management strategies.

• Consumer Packaged Goods and Manufacturing

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For example, Grid Dynamics accelerated digital transformation in a global shoe manufacturing company by building composable commerce and other digital ecosystem capabilities, replacing a monolithic commerce engine, and speeding time to market with modern and flexible functionality.

In the early days of Grid Dynamics, the financial sector recognized our ability to tackle high-end technology programs, such as moving from batch to real-time fraud detection.

Today, Grid Dynamics has evolved from a niche provider to a proven partner, enabling agility and time to market in the most challenging regulatory environments.

For example, a major commercial bank chose Grid Dynamics to solve the challenge of evolving its security frameworks to realize benefits from cloud and DevOps.

In addition, Grid Dynamics enables clients operating in the Finance vertical to maximize the value of every customer interaction.

By leveraging neural search and generative AI technology, Grid Dynamics creates solutions with seamless access to financial and economic data that enable Financial advisors to make quicker, more informed decisions, and better serve their clients.

Furthermore, Grid Dynamics enables Insurance clients to achieve outstanding results with advanced customer analytics and risk-scoring models using the latest advancements in deep learning and decision sciences.

• Healthcare and Pharma

Leading companies leverage our cloud, app modernization, data science, and digital commerce solutions to accelerate drug discovery, product development, and time-to-market, optimize marketing and sales operations, and personalize customer experiences with valuable data insights and automation.

The following table presents our revenues by vertical and revenues as a percentage of total revenues by vertical for the periods indicated:

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Retail $ 113,957 32.5 % $ 102,551 32.8 % $ 99,681 32.1 %

Tech, Media and Telecom 98,830 31.6 % 98,334 31.7 % 67,689 32.0 %

CPG/Manufacturing 42,861 13.7 % 61,216 19.7 % 43,461 20.6 %

Technology, Media and Telecom

95,048 27.1 % 98,830 31.6 % 98,334 31.7 %

Finance 60,157 17.2 % 28,842 9.2 % 21,893 7.1 %

CPG/Manufacturing 40,468 11.5 % 42,861 13.7 % 61,216 19.7 %

Healthcare and Pharma 11,109 3.2 % 13,653 4.4 % 7,711 2.5 %

Other 29,832 8.5 % 26,173 8.3 % 21,647 6.9 %

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We believe that the combination of our delivery model optimized for co-innovation and the placement of our technology leaders at clients’ premises creates a key competitive advantage that enables us to better understand and meet a client’s diverse needs.

Grid Dynamics has engineering personnel located within Grid Dynamics’ engineering centers across Europe, India, and the Americas.

Grid Dynamics has engineering personnel located within Grid Dynamics’ engineering centers across Europe, India, and the Americas to support our “Follow-the-Sun” strategy.

As of December 31, 2024, Grid Dynamics had 4,730 full-time and part-time personnel and delivered services from engineering centers located in the following countries:

the United States, Mexico, Jamaica, United Kingdom, Netherlands, Poland, Serbia, Romania, Ukraine, Moldova, Armenia, and India.

the United States, Mexico, Argentina, Jamaica, the United Kingdom, Switzerland, Netherlands, Poland, Serbia, Romania, Ukraine, Moldova, Armenia, and India.

Grid Dynamics also places its self-managed teams of IT professionals at client premises aimed at successful delivery of innovative projects and programs.

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Grid Dynamics’ client base primarily consists of Fortune 1000 corporations based in North America.

With the acquisitions of Tacit in May 2021, Mutual Mobile in December 2022, and NextSphere in April 2023, we have gained customers in the U.K., North America, as well as Continental Europe and Asia.

With the acquisitions during recent years, we have gained customers in the U.K., North and Latin America, as well as Continental Europe and Asia.

Grid Dynamics has a high level of revenue concentration with certain clients.

In the year ended December 31, 2023 one customer accounted for 10% or more of Grid Dynamics revenue compared to two in each of the years ended December 31, 2022 and 2021.

We generated approximately 55.7% and 56.1% of our revenues from our 10 largest clients during the years ended December 31, 2024 and 2023, respectively.

During each of the years ended December 31, 2024 and 2023, we had one customer that accounted for 16.0% and 14.4% of our revenues, respectively.

Grid Dynamics typically enters into a master services agreement with its clients, which provides a framework for services that is then supplemented by statements of work, which specify the particulars of each individual engagement.

Grid Dynamics faces competition from both global IT services providers as well as those based in CEE.

Grid Dynamics faces competition from both global IT services providers as well as those based in Central and Eastern European (“CEE”), Latin America and India.

Grid Dynamics believes that the principal competitive factors in its business include technical expertise and industry knowledge, culture, reputation and track record for high-quality and on-time delivery of work, effective employee recruiting, training and retention, responsiveness to clients’ business needs and financial stability.

In addition, companies may prefer to keep business in-house, rather than to outsource it.

Grid Dynamics faces competition primarily from:

• emerging small to mid-cap digital services companies, such as Globant S.A., Endava plc, EPAM Systems, Inc., and Thoughtworks Holding Inc.;

• large global consulting and outsourcing firms, such as Accenture plc and Capgemini SE;.

• emerging small to mid-cap digital services companies, such as Globant S.A., Endava plc, and Thoughtworks Holding Inc.;

• large global consulting and outsourcing firms, such as Accenture plc, EPAM Systems, Inc., and Capgemini SE;

• India-based technology outsourcing IT services providers, such as Cognizant Technology Solutions Corporation, Infosys Technologies, and Wipro;

• in-house IT departments of Grid Dynamics’ clients and potential clients.

Given Grid Dynamics’ focus on complex digital transformation programs, technical employee base and the development and continuous improvement in new software technology, Grid Dynamics believes that it is well positioned to compete effectively in the future.

Human Capital and Employees

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Accordingly, attracting and retaining personnel is a key factor in Grid Dynamics’ ability to grow revenues and meet its clients’ needs.

As of December 31, 2023, Grid Dynamics had 3,920 personnel across 13 countries (the U.S., Mexico, Jamaica, Armenia, India, the Netherlands, the U.K., Poland, Romania, Serbia, Switzerland, Moldova, and Ukraine).

As of December 31, 2024, Grid Dynamics had 4,730 personnel

across 14 countries (the U.S., Mexico, Argentina, Jamaica, Armenia, India, the Netherlands, the U.K., Poland, Romania, Serbia, Switzerland, Moldova, and Ukraine).

Recruitment and Retention

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Due to the industry and geographic diversity of Grid Dynamics’ operations and services, Grid Dynamics’ operations are subject to a variety of laws and regulations in the United States and the foreign jurisdictions in which we operate.

See Item 1A, “ Risk Factors—Risks Related to Government Regulations ”.

See Item 1A, “ Risk Factors—Risks Related to Regulations, Legislation and Legal Proceedings.

Available Information

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business