Q4 2024 Grid Dynamics Holdings Inc Earnings Call
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At this time, our participants are in listen only mode.
Leonard Lipschitz: Joining us on the call today are CEO, Leonard Lipschitz, CFO, Neil the Rodman <unk> <unk>.
Speaker Change: 000, Yuri Gryzlov and SVP Americas first Sealy says off.
Speaker Change: Following the prepared remarks, we will open the call to your questions. Please.
Speaker Change: Please note that today's conference call is being recorded.
Speaker Change: Before we begin I would like to remind everyone that today's discussion will contain forward looking statements. This includes our business and our financial outlook and the answers to some of your questions such statements are subject to the risks and uncertainty as described in the company's earnings release and other filings with the.
Speaker Change: C C.
Speaker Change: During this call we will 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.
Speaker Change: Can find all the information I just described in the Investor Relations section of our website.
Speaker Change: I'll now turn the call over to Leonard our CEO.
Leonard Lipschitz: Thank you Gary good afternoon, everyone and thank you for joining us today.
Leonard Lipschitz: I'm delighted to share that greater landmark has delivered another strong quarter exceeding our own outlook and wall Street expectations on revenue and non-GAAP EBITDA.
Leonard Lipschitz: Great and Amex revenue and profitability was the highest in our company's history and then the fourth quarter, we achieved an important milestone $100 million revenue.
This record breaking results were fueled by contributions from both new and existing clients.
Leonard Lipschitz: To put in perspective, when we went public in early 2020.
Leonard Lipschitz: Our annual revenue was at a $100 million range and we achieved it now just in one quarter.
Leonard Lipschitz: Proud of this milestone and I think you global team for their numerous efforts and unwavering dedication.
Leonard Lipschitz: Comment on the demand environment, we saw improvements across our customers and industry verticals in the fourth quarter.
Leonard Lipschitz: This has been a consistent pattern for our company over the past several quarters and we anticipate it will carry forward in 2025.
Leonard Lipschitz: Furthermore, the foundation of our business model are well in debt and our long term targets for growth profitability and technical leadership remain unchanged.
In Q4 and into Q1 2025, we're seeing a continuation of improving trends.
Leonard Lipschitz: In booking and pipeline.
Leonard Lipschitz: In fact, we reached some of the highest levels in these metrics since the fourth quarter revenue acceleration in 2021, indicating robust demand for our services.
Leonard Lipschitz: In addition to growth at our new customers, we're witnessing new deal activity within existing customers across industry verticals partnerships are also playing a pivotal role in our growth strategy with a focus on hyperscale.
Leonard Lipschitz: After setting record levels in second and third quarter. The company once again obtained and highest ever billable engineering head count by the end of Q4.
Leonard Lipschitz: A leading indicator of future growth.
Leonard Lipschitz: And we achieved that before factoring in contribution from recent acquisitions.
Leonard Lipschitz: Additionally, in the fourth quarter weakness the highest levels of open engineering positions. During the last three years customers. Both existing you are contributing to our strong results.
Leonard Lipschitz: At our top customers, we provide a significant proportion of our revenues, which we continued to execute exceptionally well.
Leonard Lipschitz: Additionally, in the fourth quarter, we signed three notable enterprise clients first one is related to automotive industry.
Leonard Lipschitz: The second one is one of the largest global auction company.
Leonard Lipschitz: And the third one is one of the worlds largest grocery retail group.
Leonard Lipschitz: Now shifting our focus to AI initiatives.
Leonard Lipschitz: I am pleased to share that our AI capabilities are gaining strong momentum across our customer base.
Leonard Lipschitz: We have significantly expanded our AI portfolio offering tailored solutions and services designed specifically for fortune 1000 companies across diverse industries.
This solutions aimed to drive both revenue growth and operational efficiency for our enterprise clients.
Leonard Lipschitz: On the revenue side, we're enhancing customer experiences and optimizing marketing pricing and product strategies on the cost side, our focus remains on improving efficiency and advancing enterprise knowledge management.
Leonard Lipschitz: There are several reasons to be optimistic in 2025, improving trends in the demand growth at our existing new customers growth in our Hyperscale partnership business and increasing demand for <unk> partners with strong technology focus are just a few examples of why we believe 2025.
Leonard Lipschitz: It will be a good year.
Leonard Lipschitz: Given our incremental confidence we're providing.
Leonard Lipschitz: Our full year outlook.
Leonard Lipschitz: For 2025, we expect our revenues to be in the range of $415 million to $435 million with the potential growth of.
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Leonard Lipschitz: 20% plus over 2024.
Leonard Lipschitz: To achieve our 2025 growth targets, we have identified five priorities to support our Giga Q strategy.
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Leonard Lipschitz: First <unk>.
Leonard Lipschitz: <unk> strength in data and AI to enhance productivity.
Leonard Lipschitz: Client business processes.
Leonard Lipschitz: Increasing the portfolio accelerators and technological artifacts to address industry specific business needs.
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Leonard Lipschitz: Third increasing industry diversification by enhanced focus in verticals, such as finance manufacturing pharma and health care.
For Fortune 1000 companies across diverse industries.
Leonard Lipschitz: Fourth ensuring our follow the Sun strategy provides global support to all clients.
These solutions aimed to drive both revenue growth and operational efficiency for our enterprise clients.
Leonard Lipschitz: And finally fifth leveraging our strong relationship with our partners at new and existing customers.
On the revenue side, we're enhancing customer experiences and optimizing marketing pricing and foreign exchange on the cost side, our focus remains on improving efficiencies and advancing enterprise knowledge management.
Speaker Change: Talk more about these five priorities of 2025, let me hand, it over to our CFO <unk> Europe.
There are several reasons to be optimistic in 2025, improving trends in the demand growth in all existing new customers growth at all Hyperscale partnership business and increasing demand for AG partners with strong technology focus are just a few examples of why we believe 2020.
Speaker Change: Thank you Lynette, let's review our priorities in more detail first I'm pleased to share that our AI capabilities are gaining strong momentum across our customer base.
Speaker Change: We have significantly expanded our AI portfolio offering tailored solutions and services designed specifically for our fortune 1000 companies across diverse industries.
Five would be a good year.
Given our incremental confidence we're providing.
Speaker Change: In Q4, we identified 130 AI opportunities the 30% increase over the third quarter.
Our full year outlook.
For 2025, we expect our revenues to be in the range of $415 million to $435 million with the potential growth.
Speaker Change: This growing demand reflects the changing expectations of customers with AI based systems, becoming increasingly prevalent in both consumer and enterprise environments.
20% plus over 2024.
George G of our 'twenty to 'twenty five growth targets, we have identified five priorities to support our Giga Q strategy.
Speaker Change: Our top AI initiatives include search adjourn Tech systems and supply chain optimization as 2025 unfolds, we expect that the pipeline that we've developed over the past couple of quarters to convert into meaningful projects.
Larry: First Larry Hill strengths in data and AI to enhance productivity across clients business processes second.
Speaker Change: Second expanding our technology offerings.
Speaker Change: Our portfolio continues to diversify driven by our deep understanding of customer needs and aspirations.
Larry: Second increasing the portfolio accelerators, and technological or defects to address industry specific business needs.
Speaker Change: Our core strengths in data and AI digital engagement platforms and modern application development remains highly valued by our customers and align closely with their strategic priorities.
Larry: Increasing industry diversification by in the hands focus in verticals, such as finance manufacturing pharma and health care.
Larry: And fourth ensuring I'll follow the Sun strategy provides global support to all clients.
Speaker Change: Our CTO organization continues to develop innovative accelerators that shorten sales cycles and improve customer speed to value.
Larry: And finally fifth leveraging our strong relationship with our partners at new and existing customers.
Speaker Change: These investments in our technology portfolio positions us well as enterprises increase their digital transformation investments.
Speaker Change: Drove more about these five priorities of 20 to 25, let me hand, it over to our CEO Euro grizzly urine.
Speaker Change: Third industry diversification.
Speaker Change: Our capabilities are in high demand across verticals.
Speaker Change: This in turn gives us the opportunity to expand beyond our established industries, such as TMT retail and CPG.
Speaker Change: Thank you and it lets review our priorities in more detail first I'm pleased to share that our AI capabilities are gaining strong momentum across our customer base.
Speaker Change: We achieved this organically or through acquisitions.
Speaker Change: In the fourth quarter of 2024, we acquired UK based Chuck's elevating our industry expertise in banking and financial services.
Speaker Change: We have significantly expanded our AI portfolio offering tailored solutions and services designed specifically for a fortune 1000 companies across diverse industries.
Speaker Change: Their focus on our risk platforms structured products equity derivatives and financial reporting is highly complementary to our current offerings.
Speaker Change: In Q4, we identified 130 AI opportunities, a 30% increase over the third quarter.
Speaker Change: This growing demands reflects the changing expectations of customers with AI based systems, becoming increasingly prevalent in both consumer and enterprise environments.
Speaker Change: Since acquiring just several global banks based in the U S have expressed interest in working with us and we expect those opportunities to convert in 2025.
Speaker Change: Our top AI initiatives include search a gentex systems and supply chain optimization as 2025 unfolds. We expect of the pipelines. We have developed over the past couple of quarters to convert into meaningful projects.
Speaker Change: Fourth our followed the same strategy.
Speaker Change: This continues to be our guiding principle, enabling uninterrupted around the clock client service in just three years, we have expanded our geographic footprint substantially and I am proud of our ability to serve our customers across 19 countries spanning North America, Europe and India.
Speaker Change: Second expanding our technology offerings.
Speaker Change: Our portfolio continues to diversify driven by our deep understanding of customer needs and aspirations.
Speaker Change: We are committed to investing in our engineered skills and knowledge globally. We have launched a comprehensive AI training program that includes both introductory and advanced tracks along with partnerships centric training.
Speaker Change: Our core strengths in data and AI digital engagement platforms and modern application development remain highly valued by our customers and align closely with their strategic priorities.
Speaker Change: Thousands of our engineers are currently participating in this program and we're excited to see the innovative solutions. They will develop as they apply the right skills and billable roles.
Speaker Change: Our CTO organization continues to develop innovative accelerators that shorten sales cycles and improve customer speed to value.
Speaker Change: These investments in our technology portfolio positions us well as enterprises increase their digital transformation investments.
Speaker Change: Since launching operations in India three years ago, the country has become a top three delivery location for the company.
Speaker Change: Most of our efforts in India are centered on supporting U S businesses, and we continue to work closely with many global captive centers across industry domains.
Speaker Change: Third industry diversification.
Speaker Change: Our capabilities are in high demand across verticals. This in turn gives us the opportunity to expand beyond our established industries, such as TMT retail and CPG.
Speaker Change: In the fourth quarter, we setup, an AI innovation team to support our global financial client and expanded the team to support the global credit agency client.
Speaker Change: We achieved this organically or through acquisitions.
Speaker Change: In the fourth quarter of 2024, we acquired UK based just elevating our industry expertise in banking and financial services.
Speaker Change: Argentina based mobile computing acquired in October of last year also enhanced our follow the sun capabilities. Several U S. Based customers have already engaged us to provide engineering skills from Argentina, and we expect to significantly scale operations in 2025.
Speaker Change: Their focus on our risk platforms structured products equity derivatives and financial reporting is highly complementary to our current offerings.
Speaker Change: By adding this talented team in Argentina, our clients now have expanded options in the Americas complementing our established presence in the United States, Mexico and Jamaica.
Speaker Change: Since acquiring just several global banks based in the U S have expressed interest in working with us and we expect that those opportunities to convert in 2025.
Speaker Change: Fourth our followed the same strategy.
Speaker Change: Fifth our partnerships in.
Speaker Change: In 2024, 18% of our total revenue was driven by partnerships with Hyperscale is playing a significant role.
Speaker Change: This continues to be our guiding principle, enabling uninterrupted around the clock client service in just three years, we have expanded our geographic footprint substantially and I am proud of our ability to serve our customers across 19 countries spanning North America, Europe and India.
Speaker Change: In 2025, we expect our hyperscale partnerships to continue growing significantly.
Speaker Change: Our confidence in 2025 is driven by three noteworthy trends.
Speaker Change: We are committed to investing in our engineered skills and knowledge globally. We have launched a comprehensive AI training program that includes both introductory and advanced tracks along with partnerships centric training.
Speaker Change: First our commitment to technology innovation and engineering excellence has resulted in greater appreciation by global enterprise customers.
Speaker Change: This has resulted in great dynamics has been chosen by many of our partners tier one customers.
Speaker Change: Of our engineers are currently participating in this program and we're excited to see the innovative solutions. They will develop as they apply their eyes skills and billable roles.
Speaker Change: Second our partner relationships are evolving we are now more engaged in strategic discussions with senior management at our key partners and third at an operational level, we have enhanced collaborations between the sales and marketing teams at great dynamics and our partners.
Speaker Change: Since launching operations in India three years ago, the country has become a top three delivery location for the company.
Speaker Change: Most of our efforts in India are centered on supporting U S businesses, and we continue to work closely with meaning global captive centers across industry domains.
Speaker Change: All of this has translated into more opportunities for our entry into new global projects and programs across industry verticals.
Speaker Change: In the fourth quarter, we set up an AI innovation team to support our global financial client and expanded the team to support the global credit agency client.
Vasili: During the fourth quarter there were several notable client achievements and updates let me now hand, it over to our SVP Americas Vasili his off.
Speaker Change: Argentina based mobile computing acquired in October of last year also enhanced our follow the sun capabilities seven.
Vasili: Thank you Yuri.
Vasili: During the corner great dynamics delivered some notable projects.
Vasili: First let me share a few examples of our AI programs at large enterprises.
Speaker Change: Several U S based customers have already engaged us to provide engineering skills from Argentina, and we expect to significantly scale operations in 2025.
Vasili: This implementation showcase how we are helping enterprises move beyond basic AI applications.
Speaker Change: By adding this talented team in Argentina, our clients now have expanded options in the Americas complementing our established presence in the United States, Mexico and Jamaica.
Vasili: <unk> sophisticated solutions that deliver measurable business results.
Vasili: At one of the largest food distributors our team is implementing comprehensive AI driven Catholic enrichment.
Speaker Change: Fifth our partnerships.
Speaker Change: In 2024, 18% of our total revenue was driven by partnerships with Hyperscale is playing a significant role.
Vasili: Using generative AI, we are creating detailed product descriptions and high quality product images to enhance product discovery ability and appeal.
Speaker Change: In 2025, we expect our hyperscale partnerships to continue growing significantly.
Vasili: This initiative has already demonstrated meaningful business impact with expected revenue uplift of over 5%.
Our confidence in 2025 is driven by three noteworthy trends.
Speaker Change: First our commitment to technology innovation and engineering excellence has resulted in greater appreciation by global enterprise customers.
Vasili: At one of the largest beverage companies, we are expanding our knowledge system into a comprehensive <unk> platform.
Speaker Change: This has resulted in great dynamics has been chosen by many of our partners tier one customers.
Speaker Change: Second our partner relationships are evolving we're now more engaged in strategic discussions with senior management at our key partners and third at an operational level. We haven't had the collaboration between the sales and marketing teams at great dynamics and our partners.
Vasili: <unk> platform is designed to automate various aspects of enterprise operations significantly enhancing efficiency across the organization.
Vasili: At a leading payment company, we are developing an innovative <unk> platform that creates a multi agent marketplace.
Speaker Change: All of this has translated into more opportunities for our entry into new global projects and programs across industry verticals.
Vasili: This solution intelligently connect consumers with optimal deal offerings from card issuers brands and retailers and creating a more personalized and efficient shopping experience.
Speaker Change: During the fourth quarter there were several notable client achievements and updates let me now hand, it over to our SVP Americas virtually she's off.
Vasili: In addition to our AI projects.
Speaker Change: Thank you Yuri.
Vasili: Also would like to highlight some notable projects around our other capabilities.
Speaker Change: During the corner great dynamics delivered some notable projects.
Speaker Change: First let me share a few examples of our AI programs at large enterprises.
Vasili: We partnered with a leading multinational technology company to optimize their open source machine learning compiler to implement their CPU strategy address performance limitations and integration challenges.
Speaker Change: This implementation showcase how we are helping enterprises move beyond basic AI applications.
Speaker Change: <unk> sophisticated solutions that deliver measurable business results.
Vasili: The results of our work allowed us to achieve consistently high performance across various workloads.
Speaker Change: At one of the largest food distributors our team is implementing comprehensive AI driven Catholic enrichment.
Vasili: This collaboration has notably accelerated the client's product roadmap, reducing time to market from two years to one and enabling and users to benefit from this vast implementation much sooner.
Speaker Change: Using January of <unk>, we are creating detailed product descriptions and high quality product images to enhance product discovery ability and appeal.
Vasili: With another client one of the top 10 global largest banks, we are working to create a cutting edge technology platform for structured products.
Speaker Change: This initiative has already demonstrated meaningful business impact with expected revenue uplift of over 5%.
Speaker Change: At one of the largest beverage companies, we are expanding our knowledge system into a comprehensive age antique EI platform.
Vasili: <unk> with structured notes.
Instead of focusing our specific products. The platform is designed around key product features giving the bank flexibility to create appealing offerings and quickly adapt to market changes.
Speaker Change: This platform is designed to automate various aspects of enterprise operations significantly enhancing efficiency across their organization.
Vasili: This approach speeds up the process of building pricing and launching structured products driving business growth.
Speaker Change: At a leading payment company, we are developing and innovative <unk> platform that creates a multi agent marketplace.
Vasili: Another example, a multi chain restaurant and hospitality clients with over 33000 locations and guiche crude dynamics to scale their data pipeline management solution.
Speaker Change: This solution intelligently cemex consumers with optimal deal offerings from card issuers brands and retailers and creating a more personalized and efficient shopping experience.
Vasili: The scope involved scaling from doses to thousands of concurrent pipelines with modern data transformation flows.
Speaker Change: In addition to our AI projects I.
Vasili: We delivered the system, enabling data flows to operate at a truly massive scale with virtually unlimited growth potential due to his containerized architecture and load balancing capabilities.
Speaker Change: I also would like to highlight some notable projects around our other capabilities.
Speaker Change: We partnered with a leading multinational technology company to optimize their open source machine learning compiler to implement their Cpus strategy address performance limitations and integration challenges.
Vasili: Additionally, the framework redesign significantly reduced the development lifecycle for new pipelines or migrations cutting is from days to hours.
Speaker Change: The results of our work allowed us to achieve consistently high performance across various workloads.
Vasili: The solution is already being actively used by client data engineering teams for the development of hundreds of new pipelines to enhance their analytics platform.
Speaker Change: This collaboration has notably accelerated the clients' products roadmap, reducing time to market from two years to one and enabling and users to benefit from this advanced implementation much sooner.
Vasili: Now shifting our focus to Europe, there were some noteworthy projects.
Vasili: Global medical device manufacturer selected <unk> dynamics to be a strategic partner of their data and AI platforms.
Speaker Change: With another client one of the top 10 global largest banks, we are working to create a cutting edge technology platform for structured products, starting with structured notes.
Vasili: This multi year engagement is expected to bring efficiencies to their business processes.
Vasili: Additionally, at a leading meal preparation company, we are working on modernizing their customer service platform in partnership with one of the Hyperscale.
Speaker Change: Instead of focusing our specific products. The platform is designed around key product features giving the bank flexibility to create appealing offerings and quickly adapt to market changes.
Enel: With that let me turn the call over to Enel, who will discuss the results of the fourth quarter in more detail.
Speaker Change: This approach speeds up the process of building pricing are launching structured products driving business growth.
Vasili: <unk>.
Speaker Change: Thanks, Leslie good afternoon, everyone.
Our fourth quarter 2024 results were solid as we exceeded our expectations both on revenue and non-GAAP EBITDA.
Speaker Change: Another example, a multi chain restaurant and hospitality clients with over 33000 locations and guiche greed dynamics to scale their data pipeline management solution.
Speaker Change: We achieved record revenues of $100 3 million, surpassing our guidance range of 95 million to $97 million on a year over year basis, our fourth quarter revenues grew at 28, 5%, excluding our recent acquisitions, our organic revenues grew by 12, 8% on a year over year basis.
Speaker Change: The scope involved scaling from doses to thousands of concurrent pipelines with modern data transformation flows.
Speaker Change: We delivered the system, enabling data flows to operate at a truly massive scale with virtually unlimited growth potential due to his containerized architecture and load balancing capabilities.
Speaker Change: <unk>.
Speaker Change: The impact of FX on our fourth quarter revenues was minimal bolt on a sequential and year over year basis or.
Speaker Change: Our non-GAAP EBITDA of $15 6 million exceeded our guidance range of $13 5 million and $15 5 million.
Speaker Change: Additionally, the framework redesign significantly reduced the development lifecycle for new pipelines or migrations cutting is from days to hours.
The stronger than expected performance, both in revenue and profitability was driven by strength from both our organic business and recent acquisitions.
Speaker Change: The solution is already being actively used by client data engineering teams for the development of hundreds of new pipelines to enhance their analytics platform.
Speaker Change: The retail vertical remained the largest accounting for 32, 6% of our fourth quarter revenues and showed sequential and year over year growth of nine 7% and 33, 1% respectively.
Speaker Change: Now shifting our focus to Europe, there were some noteworthy projects.
Speaker Change: A global medical device manufacturer selected read dynamics to be a strategic partner on their data and AI platforms.
Speaker Change: During the quarter, we witnessed growth across a wide range of retail customers that included specialty retail.
Speaker Change: Improvement space and department store customers.
Speaker Change: This multi year engagement is expected to bring efficiencies to their business processes.
Speaker Change: Our TMT and financial verticals contributed 23, 5% and 23, 1% of our fourth quarter revenues, respectively in the fourth quarter, our TMT vertical remained <unk>.
Speaker Change: Additionally, at a leading meal preparation company, we're working on modernizing their customer service platform in partnership with one of the Hyperscale.
Speaker Change: Relatively flat on a dollar basis compared to the third quarter as we were impacted by the typical year end slowdown at some of our large customers.
Enel: With that let me turn the call over to Enel, who will discuss the results of the fourth quarter in more detail.
Speaker Change: The finance vertical showed the strongest performance with sequential and year over year growth of 63, 8% and 181% respectively.
Speaker Change: Mel.
Speaker Change: Thanks, Leslie good afternoon, everyone.
Speaker Change: Our fourth quarter 2024 results were solid as we exceeded our expectations both on revenue and non-GAAP EBITDA.
Speaker Change: Strength in the financial vertical was driven by a combination of increased demand from fintech and insurance customers as well as our recent acquisitions.
Speaker Change: We achieved record revenues of 103 million, surpassing our guidance range of 95 million to $97 million on a year over year basis, our fourth quarter revenues grew at 28, 5%.
Here are the details of the revenue mix of other verticals, our CPG and manufacturing representing 11, 2% of our quarter revenues grew sequentially by 14, 8% and 16, 4% on a year over year basis strength in this vertical was driven by both our organic business and recent.
Speaker Change: Excluding our recent acquisition our organic revenues grew by 12, 8% on a year over year basis.
Speaker Change: The impact of FX on our fourth quarter revenues was minimal bolt on a sequential and year over year basis.
Speaker Change: Physicians.
Speaker Change: Our non-GAAP EBITDA of $15 6 million exceeded our guidance range of $13 5 million and $15 5 million.
Our other verticals, which represented seven 2% of our fourth quarter revenues grew slightly on a sequential basis, but declined by 11, 3% year over year, and finally healthcare and pharma vertical represented two 4% of our revenues.
Speaker Change: The stronger than expected performance, both in revenue and profitability was driven by strength from both our organic business and recent acquisitions.
Speaker Change: We ended the fourth quarter with a total headcount of 4730 up from 4298 employees in the third quarter of 2024 and up from 3920 <unk> in the fourth quarter of 2023, the sequential growth in head count was driven by both our organic business.
Speaker Change: The retail vertical remained the largest accounting for 32, 6% of our fourth quarter revenues. It showed sequential and year over year growth of nine 7% and 33, 1% respectively.
Speaker Change: During the quarter, we witnessed growth across a wide range of retail customers that included specialty retail.
Speaker Change: And recent acquisitions.
Speaker Change: Improvement space and department store customers.
Speaker Change: At the end of the fourth quarter of 2020 for our total U S head count was 351 or seven 4% of the companies.
Speaker Change: Our TMT and financial verticals contributed 23, 5% and 23, 1% of our fourth quarter revenues, respectively in the fourth quarter, our TMT vertical remained <unk>.
Speaker Change: Total head count versus 345, or 8% in the third quarter and $3 31, or eight 4% in the year ago quarter, our non U S headcount.
Speaker Change: Relatively flat on a dollar basis compared to the third quarter as we were impacted by the typical year end slowdown at some of our large customers.
Speaker Change: Located in Europe, Americas, and India was 4379, or 92, 6% up from 3953 or 92% in the third quarter.
Speaker Change: The finance vertical showed the strongest performance with sequential and year over year growth of 63, 8% and 181% respectively.
Speaker Change: And 3589 or 91, 6% in the year ago quarter.
Speaker Change: In the fourth quarter revenues from our top five and top 10 customers were 35, 6% and 55, 8%, respectively versus 39, 8% and 59 two person in the third quarter and 39, 7% and 55, 3% in the same period a year ago, respectively.
Speaker Change: Strength in the financial vertical was driven by a combination of increased demand from fintech and insurance customers as well as our recent acquisitions.
Speaker Change: Here are the details of the revenue mix of other verticals, our CPG and manufacturing representing 11, 2% of our quarter revenues grew sequentially by 14, 8% and 16, 4% on a year over year basis strength in this vertical was driven by both our organic business and recent <unk>.
Speaker Change: During the fourth quarter, we had a total of 211 customers up from 201 in the third quarter of 2024 and down from 218 in the year ago quarter. The increased during the quarter was mainly due to customers coming from the acquisitions the year over year decline in the number of customers was primarily driven by our continued.
Speaker Change: Acquisitions.
Speaker Change: Our other verticals, which represented seven 2% of our fourth quarter revenues grew slightly on a sequential basis, but declined by 11, 3% year over year, and finally health care and pharma vertical represented two 4% of our revenues.
Speaker Change: Efforts to rationalize our portfolio of non strategic customers.
Speaker Change: Moving to the income statement, our GAAP gross profit during the quarter was 37 million or 36, 9% compared to $32 7 million or 37, 4% in the third quarter of 2024, and $28 1 million or 36 person in the year ago quarter on a non-GAAP basis or <unk>.
Speaker Change: We ended the fourth quarter with a total head count of 4730 up from 4298 employees in the third quarter of 2024 and up from 3920 <unk> in the fourth quarter of 2023, the sequential growth in head count was driven by both our organic business.
Speaker Change: Profit was $37 6 million or 37, 5% up from $33 3 million or 38% in the third quarter of 2024 and up from $28 6 million or 36, 6% in the year ago quarter.
Speaker Change: And recent acquisitions.
Speaker Change: At the end of the fourth quarter of 2020 for our total U S head count was 351 or seven 4% of the companies.
Our non-GAAP EBITDA during the fourth quarter, which excluded interest income expense provision for income taxes, and depreciation and amortization and was further adjusted for the impact of stock based compensation restructuring expenses related to geographic reorganization in transaction and other related costs was $15 six.
Speaker Change: Total head count versus 345, or 8% in the third quarter and $3 31, or eight 4% in the year ago quarter, our non U S headcount located.
Speaker Change: Located in Europe, Americas, and EMEA was 4379 or 92, 6% up from 3953 or 92% in the third quarter.
Speaker Change: <unk> million dollars or 15, 6% of revenues.
Speaker Change: Up from $14 8 million or 16, 9% of revenues in the third quarter of 2024, and $10 7 million or 13, 7% in the year ago quarter.
Speaker Change: And 3589 or 91, 6% in the year ago quarter.
Speaker Change: In the third quarter revenues from our top five and top 10 customers were 35, 6% and 55, 8%, respectively versus 39, 8% and 59 two person in the third quarter and 39, 7% and 55, 3% in the same period a year ago, respectively.
Speaker Change: The dollar increase on a sequential basis was largely due to higher revenues, partially offset by an increase in operating expenses.
Speaker Change: As a percentage of revenues the decline in non-GAAP EBITDA margin was primarily driven by a combination of lower gross margin as a percentage and higher levels of opex, both from organic business and our recent acquisitions.
Speaker Change: During the fourth quarter, we had a total of 211 customers up from 201 in the third quarter of 2024 and down from 218 in the year ago quarter. The increased during the quarter was mainly due to customers coming from the acquisitions the year over year decline in the number of customers was primarily driven by our continued.
Speaker Change: Our GAAP net income in the fourth quarter was $4 5 million or <unk> <unk> per share based on a diluted share count of $83 8 million shares compared to the third quarter income of $4 3 million or <unk> <unk> per share based on a diluted share count of $78 8 million and an income of $2 9 million.
Speaker Change: Efforts to rationalize our portfolio of non strategic customers.
Speaker Change: Moving to the income statement, our GAAP gross profit during the quarter was 37 million or 36, 9% compared to $32 7 million or 37, 4% in the third quarter of 2024, and $28 1 million or <unk> 36 person in the year ago quarter on a non-GAAP basis our grew.
Speaker Change: Our <unk> per share based on 78 million diluted shares in the year ago quarter.
Speaker Change: On a non-GAAP basis in the fourth quarter of 2024, our non-GAAP net income was $10 3 million or <unk> 12 per share based on $83 8 million diluted shares compared to the third quarter non-GAAP net income of $10 8 million or <unk> 14 per share based on $78 8 million diluted shares in <unk>.
Speaker Change: Profit was $37 6 million or 37, 5% up from $33 3 million or 38% in the third quarter of 2024 and up from $28 6 million or 36, 6% in the year ago quarter.
Speaker Change: $7 5 million or <unk> 10 per share based on 78 million diluted shares in the year ago quarter.
Our non-GAAP EBITDA during the fourth quarter, which excluded interest income expense provision for income taxes, and depreciation and amortization and was further adjusted for the impact of stock based compensation restructuring expenses related to geographic reorganization in transaction and other related costs was $15 six.
Speaker Change: On December 31, 2024, our cash and cash equivalents totaled $334 7 million up from $231 3 million in the third quarter of 2024 and the increase in cash was largely driven by our follow on offering in November of 2024.
Speaker Change: Coming to the guidance for the first quarter of 2025, we expect our revenues to be in the range of $98 million to 100 million or growth of roughly 23% to 25% on a year over year basis.
Or 15, 6% of revenues up from $14 8 million or 16, 9% of revenues in the third quarter of 2024, and $10 7 million or 13, 7% in the year ago quarter.
At the midpoint of $99 million.
Speaker Change: The dollar increase on a sequential basis was largely due to higher revenues, partially offset by increase in operating expenses.
Speaker Change: We expect our first quarter revenue to grow by 24% on a year over year basis.
Speaker Change: We expect our non-GAAP EBITDA in the first quarter to be in the range of $12 nine to $13 9 million.
Speaker Change: As a percentage of revenues the decline in non-GAAP EBITDA margin was primarily driven by a combination of lower gross margin as a percentage and higher levels of opex, both from organic business and our recent acquisitions.
Speaker Change: For Q1, 2025, we expect our basic share count to be in the range of $84 million to $85 million and our diluted share count to be in the range of $89 million to $90 million.
Speaker Change: Our GAAP net income in the fourth quarter was $4 5 million or <unk> <unk> per share based on a diluted share count of $83 8 million shares compared to the third quarter income of $4 3 million or <unk> <unk> per share based on a diluted share count of $78 8 million and an income of $2 9 million.
Speaker Change: For the full year 2025, we expect our revenues to be in the range of $415 million to $435 million, representing a growth of 18, 4% to 24, 1% on a year over year basis.
At the midpoint of $425 million, we expect our 2025 revenues to grow by 21, 2% on a year over year basis that concludes my prepared remarks, we are now ready to take questions.
Speaker Change: Our <unk> per share based on 78 million diluted shares in the year ago quarter.
Speaker Change: On a non-GAAP basis in the fourth quarter of 2024, our non-GAAP net income was $10 3 million or <unk> 12 per share based on $83 8 million diluted shares compared to the third quarter non-GAAP net income of $10 8 million or <unk> 14 per share based on $78 8 million diluted shares in <unk>.
Speaker Change: [music].
Speaker Change: $7 5 million or <unk> 10 per share based on 78 million diluted shares in the year ago quarter.
Speaker Change: On December 31, 2024, our cash and cash equivalents totaled $334 7 million up from $231 3 million in the third quarter of 2024 and the increase in cash was largely driven by our follow on offering in November of 2024.
Speaker Change: Thank you Aneel as we go into the Q&A session of this call I will first announce your name at that point. Please on mute yourself internally here and.
And the first question is going to come from Puneet Jain from Jpmorgan.
Speaker Change: Coming to the guidance for the first quarter of 2025, we expect revenues to be in the range of $98 million to 100 million or growth of roughly 23% to 25% on a year over year basis.
Puneet Jain: Hey, a very good quarter guys.
Speaker Change: So.
Speaker Change: Like today like <unk>.
Speaker Change: Do you mean like so all of your peers.
Speaker Change: Reported.
Speaker Change: At the midpoint of $99 million.
Speaker Change: Good day.
Speaker Change: And then.
Speaker Change: We expect our first quarter revenue to grow by 24% on a year over year basis.
Speaker Change: And I'm looking at the whole company.
Speaker Change: Particularly for 2025 guidance.
Speaker Change: Definitely as.
Speaker Change: We expect our non-GAAP EBITDA in the first quarter to be in the range of $12 nine to $13 9 million.
Speaker Change: Well above your peers right. So.
Speaker Change: Driving back then.
Speaker Change: Pat.
Speaker Change: For Q1, 2025, we expect our basic share count to be in the range of $84 million to $85 million and our diluted share count to be in the range of $89 million to $90 million.
Speaker Change: Like what's driving that outperformance and good dynamic.
Yeah.
Speaker Change: Yeah.
Speaker Change: Well, thank you Britney.
Speaker Change: Well, Jim comment from my colleagues.
Speaker Change: For the full year 2025, we expect our revenues to be in the range of $415 million to $435 million, representing a growth of 18, 4% to 24, 1% on a year over year basis.
Speaker Change: No.
Speaker Change: Great dynamics.
Speaker Change: I believe we've been consistent in the story.
Speaker Change: 2024, we're just continuing to pick up our business relationship with number of clients the top drives as well as the new glass where required and.
Speaker Change: And the midpoint of $425 million, we expect our 2025 revenues to grow by 21, 2% on a year over year basis that concludes my prepared remarks, we are now ready to take questions.
Speaker Change: The introduction of technology into Russia.
Speaker Change: Scaling the solution offerings.
Speaker Change: Hyper scaler relationship.
Speaker Change: Yeah.
Speaker Change: <unk> gave us confidence, which we decided it's time for us to.
Speaker Change: [music].
Eric Bakken issue that in your guidance. So we're comfortable about where we are.
Speaker Change: Feel comfortable about the appreciated of the appreciation by the customers or capabilities and more important we feel really good about.
Speaker Change: Thank you Aneel as we go into the Q&A session of this call I will first announce your name at that point. Please on mute yourself internally here.
Speaker Change: Sure.
Speaker Change: Returning back to the scale of the geared <unk> strategy with a focus on.
Speaker Change: Employment in servicing so all the indicators look good.
Puneet Jain: And the first question is going to come from Puneet Jain from Jpmorgan.
Speaker Change: And if that growth for 2020.
Like will it be broad based like big vertical.
Puneet Jain: Hey, a very good quarter guys.
Puneet Jain: So.
Speaker Change: Hum.
Speaker Change: Like which line like that.
Puneet Jain: Like today like I know you mean like so all of your peers.
Speaker Change: Outperforming like frankly put knee growth.
Puneet Jain: Reported.
Speaker Change: Yeah of course so.
Speaker Change: Good day.
Puneet Jain:
Speaker Change: No I would not name a specific client because.
Puneet Jain: And I don't like the whole company.
Speaker Change: <unk>.
Puneet Jain: Particularly for 2025 guidance.
Speaker Change: Some kind of leverage so basically.
Puneet Jain: Definitely.
Puneet Jain: Well above your peers right, so what's driving that.
Speaker Change: We are stronger now.
Speaker Change: CPG with stronger our technology TMT our thing.
Puneet Jain: Pier Park.
Puneet Jain: Like what's driving that outperformance and good dynamic.
Speaker Change: Really good ramp up.
Speaker Change: Fintech business, that's kind of helps us.
Puneet Jain: For this year.
Britney: Well, thank you Britney.
Speaker Change: We also see a pickup from our relationships with them.
Puneet Jain: Well Jim comment.
Puneet Jain: Colleagues.
Puneet Jain: On credit dynamics.
Speaker Change: I would say the GCC clients in particular in India. So we are adding more people.
Puneet Jain: I believe we've been consistent in our story.
Speaker Change: The us and India Europe is.
Puneet Jain: In 2024, we're just continuing to pick up a business relationship with number of clients the top drives as well as the new glass where required and.
Speaker Change: Picking up too.
Speaker Change: But fundamentally.
Speaker Change: The appreciation of our technology, which is comes from the.
Speaker Change: Actual implementations.
Speaker Change: We're a very broad base.
Puneet Jain: The introduction of technology internationally.
Speaker Change: Positioning now fully understand that you know we've been around for a long time.
Puneet Jain: Scaling the solution offerings.
Speaker Change: Marcia will grow from the top 10 clients, we see that happening. We also see a pickup of the of the newer clients know how.
Puneet Jain: Hyper scaler relationship.
Puneet Jain: Just give us a confidence, which we decided it's time for us to.
Puneet Jain: Eric Bakken issue that annual guidance. So we're comfortable about where we are we feel comfortable about the appreciation of the appreciation by the customers or capabilities and more important we feel really good about our.
Speaker Change: How much new business is going to that's something we will talk about the next couple of quarters, but overall, we do see broad based GMT Cpg's fintech.
Speaker Change: And like.
Speaker Change: You talked about <unk>.
Puneet Jain: Returning back to the scale of the geared <unk> strategy with a follow up to some.
Speaker Change: Hi.
Speaker Change: And like helping your clients are.
Speaker Change: And.
Puneet Jain: Employment in servicing so.
Speaker Change: That is the explanation.
All the indicators look good.
Speaker Change: How should we think about like a revenue contribution.
Puneet Jain: And.
Puneet Jain: The growth for 2020.
Speaker Change:
Like will it be broad based like bridge vertical.
Speaker Change: Yes.
Or do you like the leather and then take AI.
Puneet Jain: And perhaps.
Speaker Change: Sure.
Puneet Jain: Line like metal output.
Speaker Change: <unk>.
Speaker Change: Implementation of AI solution.
Outperforming thank you Paul.
Puneet Jain: What we quote.
Puneet Jain: Yes of course.
Speaker Change: Klein fourth quarter efficiently or whatnot.
Speaker Change: I would not name a specific client because you know.
So I would love to have a few issues of revenues first answers for the questions.
Speaker Change: Thank you.
Speaker Change: Some kind of leverage so basically.
Speaker Change: Peru is having human Nicole so sure. Thank you for the question. So AI becomes component for almost every engagement right. Now. So if we were talking about like POC is like last year right. Now is a component of every big program. So it's very difficult to discern like.
Speaker Change: We're stronger now.
Speaker Change: <unk> with stronger our technology TMT our thing.
Speaker Change: Really good ramp up.
Speaker Change: No.
Speaker Change: Fintech business, that's kind of helps us.
Speaker Change: We also see a pickup from our relationships with them.
Speaker Change: Which particular piece belongs to AI.
Speaker Change: Say the GCC clients in particular in India. So we are adding more people.
Speaker Change: Actually I will say it can be attributed to most of the bigger engagements, but I can tell for sure that there are two general trends. So first first of all of our biggest customers are changing the balance from looking into optimizing the cost to more.
Speaker Change: And India Europe is.
Speaker Change: Speaking up too.
Speaker Change: Fundamentally.
Speaker Change: The appreciation of our technology, which is comes from the.
Speaker Change: Actual implementations.
Speaker Change: Were very broad based.
Speaker Change: Positioning now fully understand you know we've been through.
Speaker Change: Revenue generation.
Speaker Change: Initiatives.
Speaker Change: For a long time that you Marcia will grow from the top 10 clients, we see that happening we also see a pickup there.
Speaker Change: And Thats historically has been a very strong area for grid dynamics, that's actually represents our positioning and the secondly, AI becomes a big.
Speaker Change: Of the newer clients now how much of new business is going to that's something we will talk about the next couple of quarters, but overall, we do see broad based gmg.
Speaker Change: Yes.
Speaker Change: That's where agreed dynamics historically has been very very strong. If you are if you recall we wrote the first book about AI in 2017 and right now everyone is talking about that as a new thing so.
Speaker Change: <unk>.
Speaker Change: And I.
Speaker Change: Like you talked about.
Speaker Change: Having both components actually we see a lot of opportunity for us to grow in.
Speaker Change: And like helping your clients.
Speaker Change: Uh huh.
Speaker Change: Fulfill their demand which exists on the market.
Speaker Change: That is AI permission.
Speaker Change: How should we think about like revenue.
Speaker Change: Okay. Thank you.
Speaker Change: New contribution but.
Speaker Change: Brilliant. Thank you. Please the next question comes from Ion Cannon Needham go ahead Mark.
Speaker Change: Yeah.
Speaker Change: Or do you like the rather than take AI.
Great. Thank you congrats on Elk, and Leonard and the team great quarter.
Speaker Change: Sure.
Speaker Change: Implementation of the NII solution.
Speaker Change: For your client.
Speaker Change: When he said you guys are the outlier today all your peers are stumbling and you guys have put up.
Speaker Change: Fourth quarter average and whatnot.
Speaker Change: So I will lead to a a few issues of revenues first answer to the questions.
Speaker Change: Another really strong quarter and guide for 2025, So I'll ask you sort of more on the drivers of revenue growth as we think about that 'twenty, one 'twenty two midpoint of growth for 2025.
Speaker Change: <unk> is having human Nicole so.
Speaker Change: Sure. Thank you for the question, Brian So AI becomes component for almost every engagement right now. So if we were talking about like POC is like last year right now it's a component of every big program. So it's very difficult to discern like which particular piece bill.
Speaker Change: How do you think about that in terms of recruiting impact of pricing and then is there any utilization improvement built in as well all of that underlying growth come from these three key drivers of growth okay.
Speaker Change: Okay, Great well, let me start with the guarantor for them to Europe.
Speaker Change: Thanks to AI.
Speaker Change: Actually I will say it can be attributed to most of the bigger engagements.
Speaker Change: Two wearing two hats.
Speaker Change: Head of Europe would also see all sorts one of the key responsibility to carriers.
Speaker Change: Can tell for sure that there are two general trends. So first first of all of our biggest customers are changing the balance from looking into optimizing the cost to more revenue generation.
Speaker Change: Yes. Thank you alright, thanks for the question I think that.
Lance: Obviously as Lance mentioned.
Lance: And I'm talking from the perspective of chemo.
Lance: Operational activities that we have on the priorities that we have as you just mentioned right recruiting is a big thing and obviously as we are continue.
Speaker Change: <unk> initiatives.
Speaker Change: And Thats historically has been a very strong area for grid dynamics, that's actually represents our positioning and the secondly.
Lance: We continue following our.
Speaker Change: <unk> becomes a big.
Lance: Our <unk> strategy <unk> in particular.
Speaker Change: Okay.
Lance: The full of the sound delivery model I think the key point here is how do we make sure that we continue to recruit the best talent right that we can get and go through the same machine of training the talent and basically.
Speaker Change: That's where I agree dynamics historically has been very very strong. If you are if you recall we wrote the first book about it yet in 2017 and right now everyone is talking about that as a new thing so.
Speaker Change: Having both components actually we see a lot of opportunity for us to grow in.
Lance: Getting the getting the right talent from the market and also again from the University of just going back and back and going back to the training and.
Speaker Change: <unk> fulfilled that demand, which exists on the market.
Speaker Change: Okay. Thank you.
Lance: Putting back into the system. So I think this is ware.
Speaker Change: Thank you Brian. Thank you. Please the next question comes from my own Tandon Needham go ahead Mark.
Lance: On one side, it's a challenge but on the other side, obviously growing from just a few countries a few years ago to 19 countries as of today as it is kind of relatively still straightforward because we have the machine and if you go back and look at our composition of our locations within those countries, even before you will see.
Speaker Change: Great. Thank you congrats.
Speaker Change: And Leonard and the team great quarter.
Speaker Change: When he said you guys are the outlier today all your peers are stumbling and you guys have put up.
Speaker Change: Another really strong quarter and guide for 2025, So I'll ask you sort of more on the drivers of revenue growth as we think about that 'twenty, one 'twenty two midpoint of growth for 2025.
Lance: So we had a relatively big amount of relatively small countries. So from that perspective. The machine is there and I think that thats quite nature and whatnot.
Speaker Change: How do you think about that in terms of recruiting impact of pricing and then is there any utilization improvement is built in as well all of that underlying growth come from these three key drivers of growth okay.
Lance: We are guiding right now we're not doing anything extra.
Lance: Outside of our comfort zone in the way of bringing that talent training, the talent and putting that through the.
Lance: It was available to the available engagements and also the big portion of what we do is titled our R&D work and CTO of activities that I think is the most important because we have to make sure that in each each and every location that we have we have the portion of the people assigned to those R&D projects.
Speaker Change: Okay, Great well, let me start with the guarantor for them to Europe.
Speaker Change: Houston to wearing two hats.
Speaker Change: Head of Europe would also see also it's one of the key responsibility to carriers.
Robert: Yes, Thank you Robert.
Speaker Change: Hey, Thanks for the question I think that.
Speaker Change: Obviously.
As mentioned my.
Lance: Assigned to those CTO activities. So that's I think is quite normal for us. So I don't believe that we are doing something extraordinarily here to be honest I think is just a normal ratio growth as we've been doing over the last few years.
Speaker Change: And I'm talking from the perspective.
Speaker Change: Operational activities that we have on the priorities that we have.
Speaker Change: Just mentioned recruiting is a big thing and obviously as we are and continue.
Speaker Change: Continue following the.
Speaker Change: Our <unk> strategy and <unk> in particular.
Speaker Change: Okay terrific, let me for my follow up I'll, just ask a softball question from Enel Enel.
Speaker Change: Therefore, the solid delivery model I think.
Speaker Change: The key point here is how do we make sure that we continue to recruit the best talent right that we can get and.
Lance: Can you please just.
Lance: Repeat what you said in terms of the M&A impact in the fourth quarter and then what's embedded in your guide for <unk> in fiscal 'twenty five.
Speaker Change: Go through the same machine of training the talent and basically.
Lance: So for the fourth quarter length will.
Speaker Change: Getting the getting the right talent from the market and also again from the University of just going back and going back to the training and coaching.
Lance: What we said the organic was 12, 8% year over year growth. So that was roughly about 1% sequential growth rate right. Now when you look at the first quarter I was just kind of give you a little bit of a sense.
Speaker Change: Putting back into the system. So I think this is ware.
Speaker Change: On one side, it's a challenge for us on the other side, obviously growing from just a few countries a few years ago to 19 countries as of today as is kind of relatively still straightforward because we have the machine and if you go back and look at our composition of our locations within those contracts even before you will see.
Lance: We expect on the high end of the guidance the organic business to be flattish from Q4.
Lance: So there is a $2 million spread there so really we're talking about organic will be around 86 to 88.
Lance: And then for the full year.
Lance: <unk>.
Lance: The organic business will be in the teens.
Speaker Change: So we had a relatively big amounts of relatively small countries. So from that perspective. The machine is there and I think that thats quite nature and whatnot.
Lance: We're starting the year, let's start off with low teens and we'll come back in.
Lance: Hopefully.
Lance: Continued talking about some positive trends.
Speaker Change: We are guiding right now we're not doing anything extra.
Lance: I'll get back in queue. Thank you so much congrats again, thank you very much. Thank you.
Speaker Change: Outside of our comfort zone in the way of bringing that talent training, the talent and putting that through the.
Jared Levine: The next question comes from Jared Levine.
Lance: TD count.
Speaker Change: If it was available for the billable engagements and also the big portion of what we do is tied to our new work and CTO of activities that I think is the most important because we have to make sure that in each each and every location that we have we have the portion of the people assigned to those R&D projects assigned to those.
Brian Berger: Thank you sure Levine for Brian Berger and say in terms of your top customer did show up performance in 2024, there is higher.
Brian Berger: Growth relative to the company average expected to continue here in 2025, and if so can you share more color on what gives you the confidence there.
Speaker Change: CTO activities. So thats I think its quite normal for us. So I don't believe that we are doing something extraordinary here to be honest I think this is just a normal ratio growth as we've been doing over the last few years.
Brian Berger: Well as I mentioned before we had.
Brian Berger: Actually a premium subscription.
Brian Berger: Revenue growth come from it comes from top five if it comes through it.
Brian Berger: From the broader base, but when you look at the confidence we put in in terms of the.
Speaker Change: Okay terrific.
Speaker Change: For my follow up I'll, just ask the softball question from Enel Enel.
Brian Berger: Our ability to guide numbers.
Brian Berger: Obviously, we believe the growth in the top five.
Speaker Change: Can you please.
Speaker Change: Repeat what you said in terms of the M&A impact in the fourth quarter and then what's embedded in your guide for <unk> and fiscal 'twenty five.
Brian Berger: When I mentioned the areas. So they kind of cover three reports rates, it's a technology.
Yes, so for the fourth quarter length.
Brian Berger: Yes.
Brian Berger: Cpg's and it's.
Brian Berger: Fintech. So since we have representation of dark fiber from all three categories. There are some of the drivers when it comes to the broader base of clients I must say that.
Speaker Change: Well, we said the organic was 12, 8% year over year growth.
Speaker Change: That was roughly about 1% sequential growth rate right now when you look at the first quarter I was just kind of give you a little bit of a sense.
Brian Berger: No.
Brian Berger: Our relationship with the Hyperscale is there.
Speaker Change: Expect on the high end of the guidance the organic business to be flattish from Q4.
Brian Berger: AI platform. There are models created this necessary engagement with newer clients to demonstrate the capabilities of not just enhancing their value.
Speaker Change: So there is a $2 million spread there so really we're talking about organic will be around 86 to 88.
Speaker Change: And then for the full year.
Speaker Change: <unk>.
Speaker Change: The organic business will be in the teens.
Brian Berger: <unk> begun the supreme into capturing the market we've seen some amazing results from the first production implementation of increase of the revenue.
Speaker Change: We're starting the year, let's start off with low teens, and we will come back in.
Speaker Change: Hopefully.
Speaker Change: Continued talking about some positive trends.
Brian Berger: That.
Brian Berger: Touch is not only the existing clients, who trust us anyways, right, but with a new broad base oil declines, which were a partner either with hyperscale or drive ourselves and attraction is.
Speaker Change: Ill get back in queue. Thank you so much congrats again, thank you very much. Thank you.
Speaker Change: The next question comes from Jared Levine.
Speaker Change: TD count.
Speaker Change: Thank you sure Levine on for Bryan Bergin side in terms of your top customer did show outperformance in 2024 it is higher.
Brian Berger: We get early day of the cloud migration automation any kind.
Digitalization.
Brian Berger: The first runners get the best results. So we are at this early phase of the.
Speaker Change: Relative to the company average expected to continue here in 2025, and if so can you share more color on what gives you the confidence there.
Brian Berger: Implementation of various products and gender guys want to remember there are many more and this just gives us the broad base. So hopefully I answered. The question is coming from dark fiber did come from they're both based on the technology implementations.
Speaker Change: Yeah.
Speaker Change: Well as I mentioned before we had.
Speaker Change: Yeah.
Speaker Change: Actually a premium subscription where the revenue growth come from it comes from top five if it comes from it comes from the broader base, but when you look at the confidence we put in in terms of the.
Speaker Change: Got it and then wanted to touch on margins for FY 'twenty five here Kenny can you discuss what are the key puts and takes here is 2025 pre crisis and anything regarding a cadence there would be helpful.
Speaker Change: Our ability to guide numbers.
Speaker Change: We believe the growth in the top five.
Speaker Change: So look for 2025, we've given you full year revenue guidance.
Speaker Change: When I mentioned the areas. So they kind of cover three reports right.
Speaker Change: Over time, we'll give you a little bit more color on the margins.
Speaker Change: It's a technology.
Speaker Change: Yes.
Speaker Change: Tools over the last couple of months half the investors don't model any margin compression of 25 or 24. So the slope of the curve will come back we'll give you a little bit more color.
Speaker Change: <unk> and its fintech. So since we have representation of dark fiber from all three categories. There are some of the drivers when it comes to the broader base of clients I must say that.
Speaker Change: But that's how we would.
Speaker Change: Set up the margin profile for 'twenty.
Speaker Change: No.
Speaker Change: Our relationship with the Hyperscale.
Speaker Change: Alright, thank you.
Speaker Change: There are.
Speaker Change: Thank you. Thank you Jared and the next question comes from Jesse Wilson from William Blair.
Speaker Change: Platform. There are models create this necessary engagement with newer clients to demonstrate the capabilities of not just enhancing their value.
Speaker Change: Hi, guys its Jessica Wilson on for Maggie Nolan, Thanks for taking our questions and congrats on the results. This evening I wanted to start by asking after five initiatives you've laid out to achieve 2025 guidance, which do you think.
Speaker Change: <unk> begun.
Prime into capturing in the market we've seen some amazing results from the first production implementation of increase of the revenue.
Speaker Change: That touches not only the existing clients, who trust us anyways right.
Speaker Change: <unk> gotten a head start on and which do you think.
Speaker Change: Require a bit more focus or muscle this year.
Speaker Change: The New road base oil declines, which were a partner either with hyperscale or drive ourselves and attraction is.
Yeah.
Speaker Change: Sure.
Speaker Change: We can early day of the cloud migration automation.
Speaker Change: Yes, so definitely further investments in AI and technology is probably one of the very top.
Speaker Change: Digitalization.
Speaker Change: The first runners get the best results. So we are at this early phase of the.
Speaker Change: Top priorities, because we definitely see.
Speaker Change: Pick up on the market.
Implementation of various products and agenda guys want to remember there are many more and this just gives us the broad base.
Speaker Change: Or the adoption of AI technology as I mentioned, if we are talking about <unk> now we are talking about massive implementations and finally about implementation of platforms. Gen AI platforms, and we started seeing particular.
Speaker Change: The question is coming from dark fiber had come from they're both based on the technology implementations.
Speaker Change: Got it and then wanted to touch on margins for FY 'twenty 500, Kenny can you discuss what are the key puts and takes here is 2025 progressed as in anything regarding cadence here would be helpful.
Speaker Change: Business impact from implementation of those things. So just to give you an example.
Speaker Change: Thank you.
Speaker Change: Things like which would generate revenue when we're talking about let's say a.
Speaker Change: So look for 2025, we've given you full year revenue guidance.
Speaker Change: Typical BDC business like browse ability of the product discover ability of the products.
Speaker Change:
Speaker Change: Over time, we will give you a little bit more color on the margins.
Speaker Change: Implement things like Catholic enrichment, let's say you have a catalog with <unk>.
Speaker Change: Told over the last couple of months talked investors don't model any margin compression of 25 or 24. So the slope of the curve will come back we will give you a little bit more color.
Speaker Change: <unk> Mehra information and we use <unk> to generate proper descriptions images and et cetera, which allows the customers to better picking that product.
Speaker Change: But that's how we would.
Speaker Change: Set up the margin profile for 'twenty.
Speaker Change: Directly impacts the revenues of our customers because.
Speaker Change: Alright, thank you.
Speaker Change: More products.
Speaker Change: Thank you. Thank you. Thank you Jerry and the next question comes from Jessica Wilson William Blair.
Speaker Change: The cars are getting converted.
Speaker Change: And generate additional revenue so I will say that wont be the number one priority.
Speaker Change: Our CTO office.
Speaker Change: Hi, guys its Jessica Wilson on for Maggie Nolan, Thanks for taking our questions and congrats on the results. This evening I wanted to start by asking after five initiatives you've laid out to achieve 2025 guidance, which do you think.
Speaker Change: Invest into development all artifacts accelerators to help with that so I would say thats kind of would be the number one just wanted to ask that I think that.
Speaker Change: After that I think the next to the next priority, Jim said, a little bit new right over the last couple of years. There's obviously, our close relationship with hyper Scaler Lennart mentioned that I mentioned that before and that's also kind of think about it as a kind of.
Speaker Change: He has gotten a head start on and which do you think.
Speaker Change: Require a bit more focus or muscle this year.
Speaker Change: Sure.
Speaker Change: Something new that we are focusing on right now I think we started last year.
Speaker Change: Yes, so definitely further investment in AI and technology is probably one of the very top priorities because we definitely see.
Speaker Change: We moved very very quickly with hyper scaler in particular, and this is where I believe that further investments will be required across the globe on one side.
Speaker Change: Big pick up on the market.
Speaker Change: So far we mentioned vast we have 18%.
Speaker Change: Or the adoption of AI technology as I mentioned, if we are talking about <unk> now we are talking about massive implementations and finally about implementation of platforms. Gen AI platforms, and we started seeing particular.
Speaker Change: <unk> of our revenue driven by those.
Speaker Change: Those partnerships and Hyperscale is playing a very big role. So I think this is an incremental change on one side, but I think strategically it's very very important for us to continue to invest in investing in this area.
Speaker Change: Just to summarize if you look at the technology offerings and follow the Sun strategy. Those are been happening for a while so we are pretty strong and technology becomes overdue.
Speaker Change: Business impact from implementation of those things. So just to give you an example.
Thanks, Mike, which would generate revenue when we're talking about let's say a.
Speaker Change: <unk> part of our new engagements now as guys mentioned basically the AI is very critical hyperscale, which is kind of warming up with there is some very strategic partnerships and you will see this year. We are a part of this very strong initiatives and participate with a very core relationship.
Speaker Change: Typical BDC business like browse ability of the product discover ability of the products.
Speaker Change: Implement things like Catholic enrichment, let's say you have a catalog with <unk>.
Speaker Change: <unk>.
Speaker Change: For information and we use <unk> to generate proper descriptions images and et cetera, which allows the customers to better picking that product.
Speaker Change: With the key players.
Speaker Change: When it comes to distribution in the industry frankly.
Speaker Change: Directly impacts the revenues of our customers because.
Speaker Change: Frankly to be a serious player in some new industries, that's where acquisitions come into play. So the recent acquisition really puts us more on the map with the various large financial institution. So it's outside of index. So diversification is really the the shifts in the most kind of up and coming.
Speaker Change: More products in the cars are getting converted.
Speaker Change: Generate additional revenue so I would say that would be the number one priority.
Speaker Change: Our CTO office.
Speaker Change: Invest into development of artefacts accelerators to help with that so I would say thats kind of will be the number one just wanted to add that.
Speaker Change: Yeah.
Speaker Change: Got it and then just the involved everyone I had a follow up for Enel.
Speaker Change: After that I think the next to the next priority Tim said, all that new right over the last couple of years, there's obviously.
Speaker Change: So you've previously you've previously talked about your efforts to.
Speaker Change: Our close relationship with hyper Scaler Lennart mentioned.
Speaker Change: Rationalize your portfolio of accounts, so that you can focus on.
Speaker Change: I mentioned that before I think Thats also kind of think about it.
Speaker Change: <unk>.
Speaker Change: Those accounts with the most potential over time.
Speaker Change: Something new that we are focusing on right now I think we started last year.
Speaker Change: And now you're talking about enhanced collaboration between grid dynamics, Salesforce and your hyperscale or <unk>.
Speaker Change: Moved very very quickly with hyper scaler in particular, and this is where I believe that further investments will be required across the globe on one side. So.
Speaker Change: Sales forces.
Speaker Change: So do you expect to get any benefit on the SG&A line from those two developments.
Speaker Change: So far we mentioned that we have 18%.
Speaker Change: Our revenue driven by those.
Speaker Change: Good question.
Speaker Change: Those partnerships on Hyperscale is playing a very big role. So I think this is an incremental change on one side, but I think strategically it's very very important for us to continue investing and investing in this area.
Speaker Change: The.
Speaker Change: Answer is yes.
Speaker Change: But there's always some investments it's never a straightforward thing so if your question Jesse.
Speaker Change: The amount of efforts that we have to put in to receive some of these marquee global customers, yes, we're getting huge value rate, but on the other hand as you said, we are co investing with our partners, so theres going to be a little bit of that.
Speaker Change: Summarize if you look at the technology offering and followed the same strategy.
Speaker Change: Bidding for a while so we are pretty strong but in technology becomes overdue.
Speaker Change: A pivotal part of our new engagements now.
Speaker Change: As mentioned basically the.
Speaker Change: I think if the question is you know as you look at our growth vector over the next couple of years is our opex is going to grow faster than the revenue growth. The answer is no our revenues.
Speaker Change: AI is very critical Hyperscale, which is kind of warming up with there is some very strategic partnerships and you will see this year. We are a part of this very strong initiatives and participate with a very core relationship with the key players and when it comes to distribution in the industry.
Speaker Change: Outgrow the opex trends, but I don't know the silly.
Speaker Change: Sales you want to add and smiling.
Speaker Change: Oh, yes.
Speaker Change: I concur with what you just said I mean.
Speaker Change: Frankly to be a serious player in some new industries, that's where acquisitions come into play. So the recent acquisition really puts us more on the map with the various large financial institutions outside of index. So diversification is really the first and the most kind of up and coming.
Speaker Change: Our partnership partnerships, we will definitely give us.
Speaker Change: Boost on the introduction of new relationships.
Speaker Change: Specifically about the sales force I would say we of course do some reshufflings internally from the perspective of a little bit more focus on developing those relationships with partners and supporting them with their pursuits and also bringing downwards.
Speaker Change: Yeah.
Puneet Jain: Got it and then just to involve everyone I had a follow up for Aneel.
Speaker Change: I would say, it's more of a qualitative change which should result in.
Speaker Change: So you've previously you've previously talked about your efforts to.
Speaker Change: Better future outcomes overall, but it's a little difficult to say quantitatively the impact for the 2025, so I am going to use the earnings call is a little bit of marketing for <unk> dynamics for salespeople with a good technical background and understanding of the core.
Speaker Change: Rationalize your portfolio of accounts, so that you can focus on.
Speaker Change: Sure.
Speaker Change: Those accounts with the most potential over time.
Speaker Change: And now you're talking about enhanced collaboration.
Speaker Change: Tween grid dynamics Salesforce and your Hyperscale.
Speaker Change: Hyperscale capabilities. Please apply so.
Speaker Change: Sales forces.
Speaker Change: It's actually worked very well with your questions because we actually we would need to increase the positioning with the sales force and our technology supported program management and implementation team not just quota engineers and that pace needs to accelerate so I would say that I think will answer the question. The most.
Speaker Change: So do you expect to get any benefit on the SG&A line from those two developments.
Speaker Change: Good question.
Speaker Change: The.
Speaker Change: Answer is yes.
Speaker Change: But there is always some investments it's never a straightforward. So if your question Jesse.
Speaker Change: Pragmatically the rate of growth revenue will surpass, but you will see a quite rare.
Speaker Change: The amount of efforts that we have to put in to receive some of these marquee global customers, yes, we're getting huge value rate, but on the other hand as you said, we are co investing with our partners, so theres going to be a little bit of that.
Speaker Change: Our rate of growth of the.
Speaker Change: The front facing organization both on the.
Speaker Change: Sales account management and delivery measurement safe. Thank you for a good question.
Speaker Change: Thank you.
Speaker Change: Thanks, everyone nice job.
Speaker Change: I think if the question is as you look at our growth vector over the next couple of years is our opex is going to grow faster than the revenue growth. The answer is no our revenues.
Speaker Change: Ladies and gentlemen, this concludes the Q&A part of our call now I'm going to turn it over to Gary Kain.
Speaker Change: Elaine.
Speaker Change: Outgrow the opex trends, but I don't know vasili.
Speaker Change: Mike might have had a follow up Mike do you have a follow up question yesterday. Thank you.
Speaker Change: <unk> sales you want to add and smiling.
Speaker Change: At the end.
Speaker Change: Great two quick ones just wanted to.
Speaker Change: I concur with what you just said.
Our partnership partnerships, we will definitely give us.
Speaker Change: Clarify one thing I think Vasili gave me.
Speaker Change: A detailed response on the recruiting efforts.
Speaker Change: Boost on the introduction of new relationships.
Speaker Change: But I didn't quite catch any comments around utilization if theres still some room to expand it and also any commentary around pricing have you been hearing sort of mixed reviews for homecare peers around pricing that would be one question.
Speaker Change: Specifically about the sales force I would say we of course do some reshufflings internally from the perspective of a little bit more focus on developing those relationships with partners and supporting them with their pursuits and also bringing downwards.
Speaker Change: I have another one after that.
Speaker Change: I would say, it's more of a qualitative change which should result in.
Brian Berger: Well, Brian since <unk> extra among your chance to torture my guys anymore.
Speaker Change: Better future outcomes overall, but it's a little difficult to say quantitatively the impact for the 2025, so I am going to use the earnings call is a little bit of marketing for green dynamics for salespeople with a good technical background and understanding of the core hyperscale.
Speaker Change: It was actually your you talked about recruiting.
Speaker Change: <unk>.
Speaker Change: Right.
Speaker Change: So first and foremost when you start talking about the.
Speaker Change: Recruiting them scaling people and pricing is good stuff.
Speaker Change: Hyperscale capabilities. Please apply so that's actually worked very well with your questions because we actually would need to increase the positioning with the sales force.
Speaker Change: As you know that when you grow with our clients.
Speaker Change: The positioning of the value becomes even more critical because you become mutually more dependent right.
Speaker Change: Technology supported program management and implementation team not just high quality engineers and that pace needs to accelerate so I would say that.
Speaker Change: So we're continuing to implement a fixed bid offering.
Speaker Change: Pods solutions.
Speaker Change: Who is really the forefront of that so that's kind of incremental in fiduciary for a good value and approach now when it comes to <unk>.
Speaker Change: You answered the question that most pragmatically the rate of growth revenue will surpass but you will see a quite rare.
Speaker Change: Annual negotiation and positioning.
Speaker Change: Our rate of growth of the.
Speaker Change: Obviously, there is a pressure from the vendor management, how we position ourselves.
Speaker Change: The front facing organization both on the.
Speaker Change: Sales account management and delivery management side. Thank you for a good question.
Speaker Change: Very simple.
Speaker Change: If you ever Commoditized business is going to be a problem.
Speaker Change: Thank you.
Speaker Change: Hi, everyone nice job.
Speaker Change: Ladies and gentlemen, this concludes the Q&A part of our call now going to turn it over to Gary Kain.
Speaker Change: So what do we do our negotiation during our positioning.
Speaker Change: It really strictly following the <unk>.
Speaker Change: Elaine.
Speaker Change: All of the <unk> strategy that regardless, where that people really has come from that bring the value.
Speaker Change: Mike might have had a follow up Mike do you ever follow up question, yes.
Speaker Change: Yesterday, thank you.
Speaker Change: Now that.
Speaker Change: At the end.
Speaker Change: That comes from not just traditional European.
Speaker Change: Great two quick ones.
Speaker Change: Wanted to clarify one thing I think vassilios gave me.
Speaker Change: Organizations, but also from India and now.
Speaker Change: Very detailed response on the recruiting efforts.
Speaker Change: Americas, So we see generally that the trend continues to be.
Speaker Change: I didn't quite catch any comments around utilization if there is still some room to expand it and also any commentary on pricing have you been hearing sort of mixed reviews for homecare peers around pricing that'll be one question.
Speaker Change: Positive of course, there is also.
Speaker Change: The rate of inflation, because some of the cost improves.
Speaker Change: For the cloud for the engineers, but we.
Speaker Change: Composite that with a very strong <unk> program and re trading so basically we were trying to do to make.
Speaker Change: I have another one after that.
Speaker Change: Alright.
Speaker Change: <unk> im not going to you a chance to torture mind guys anymore.
Speaker Change: To optimize on the pricing, but also optimize on.
Speaker Change: Actually you're even talking about recruiting.
Speaker Change: Basically the utilization is to do heavy retraining people, we're not afraid of a bench, but we C bench is.
Speaker Change: That's fine.
Speaker Change: First and foremost.
Speaker Change: When you start talking about.
Speaker Change: Recruiting and scaling people embracing this good stuff.
Speaker Change: The Chilean badgley to accelerate and the people who have experience with.
As you know that when you grow with our clients.
Speaker Change: With our clients.
Speaker Change: And have good talent, they're easier to retrain a lot of training now goes around advanced technology. The tools. So I would say on a utilization there is always upside.
The positioning of the value becomes even more critical because you become mutually more dependent right. So we're continuing to implement a fixed bid offering.
Outside but were quite diligent.
Speaker Change: On the pricing.
Speaker Change: <unk> solutions.
Speaker Change: The vector is that you can just go to the client and S. Four increases that just doesn't work is very competitive, but the logical conversation which of those three parties really dynamics.
Speaker Change: As Roger a forefront of that so that's kind of incremental in fiduciary for a good value and approach now when it comes due.
Speaker Change: Manual negotiation and positioning.
The technical leadership in our business literature from the client's view is a pretty good sector. So I would not say, it's mixed I think essentially are pretty comfortable and grid to nymex pricing position.
Speaker Change: So there is a pressure from the vendor management.
Speaker Change: So we position ourselves.
Speaker Change: Very simple.
Speaker Change: If you ever Commoditized business is going to be a problem.
Speaker Change: Got it and one final question by the way. Thank you for that color very helpful.
Speaker Change: So what do we do our negotiation during our positioning.
Speaker Change: One final question for me is the fact that Youre, giving full year guidance and again very healthy growth that youre forecasting at this stage for 2025 that will suggest that you have pretty good visibility is a lot of that has to do with the fact that deals are larger in scope and size is that part of the equation here or is there more to it just based on client.
Speaker Change: It really strictly following the <unk>.
Speaker Change: All of the sound strategy.
Speaker Change: Regardless, where that people really has come from they bring their value now.
Speaker Change: That comes from not just traditional European.
Speaker Change: Organizations, but also from India and now.
Speaker Change: Americas.
Speaker Change: Actions.
Speaker Change: So we see generally that the trend continues to be.
Speaker Change: Sure.
Speaker Change: The one who drives a lot of those number of episodes that yeah actually both components are we're just mentioned so from one perspective, we definitely have.
Speaker Change: Positive of course, there is also.
Speaker Change: The rate of inflation, because some of the cost improves from.
Speaker Change: I will say is historically better positioned with many of our customers.
Speaker Change: The cloud for the engineers, but.
Speaker Change: Composite that with very strong internship program in retraining. So basically we were trying to do to make.
Speaker Change: Where are we were recognized as a preferred vendor. So we have high confidence not only on continuation of the work, but also on the gradual growth of this amount of the work we do together the second thing, which you already also mentioned is the size of the opportunities I would say historically we.
Speaker Change: To optimize on the pricing, but also optimize on.
Speaker Change: Basically the utilization is to do heavy retraining people, we're not afraid of a bench, but we C bench is.
Speaker Change: Half probably.
Speaker Change: The Chilean badgley to accelerate and then people whoever experience with.
Speaker Change: The biggest number of opportunity of what we consider are considered to be big deals which means like.
Speaker Change: With our clients.
Speaker Change: Not like.
Speaker Change: And have good talent, they're easier to retrain a lot of trading that goes around the advanced technology. The tools. So I would say on that utilization there is always upside.
Speaker Change: Small teams here and there, but actually programs, which require carbonation implementation, which have my category.
Speaker Change: Longer tenure by its nature. So basically wanted to summarize there is one more important factor when many more large rfps.
Speaker Change: Outside but were quite diligent.
Speaker Change: On our pricing.
Speaker Change: The vector is that you can just go to the client as for increases that just doesn't work is very competitive, but the logical conversation which of those three bodies really dynamics.
Speaker Change: So that's.
Speaker Change: Thats kind of opens up for success.
Speaker Change: Excellent again, thank you so much congrats thank.
Speaker Change: The technical leadership in our business literature from the client's view is a pretty good there. So I would not say it's mixed I think it's actually we're pretty comfortable and agreed to Nymex pricing position.
Speaker Change: Thank you. Thank you. Thank you. Thank you Mike.
Speaker Change: Ladies and gentlemen, this concludes the Q&A part of our call now going to turn it back to the letter.
Speaker Change: We're closing statements.
Speaker Change: Got it and one final question by the way. Thank you for that color very helpful.
Speaker Change: Hi.
Speaker Change: One final question for me is the fact that Youre, giving full year guidance and again very healthy growth that youre forecasting at this stage for 2025 that will suggest that you have pretty good visibility is a lot of that has to do with the fact that deals are larger in scope and size of that part of the equation here or is there more towards just based on client.
Speaker Change: Yeah.
Speaker Change: 2025 is off to a great start.
Speaker Change: The demand environment is improving and these results highlight our strengths and unique position in the AI driven digital transformation industry.
Speaker Change: Without Giga cube framework in mind, we have identified our key priorities, we're implementing numerous technology enhancements around AI and other advanced computing technologies, we continue to expand our followed the sound strategy, adding more capabilities worldwide.
Speaker Change: <unk>.
Speaker Change: Sure.
Speaker Change: The one who which drives a lot of those number of episodes that actually both components. We're just mentioned so from one perspective, we're definitely have.
Speaker Change: <unk>.
Speaker Change: I will say is historically better positioned with many of our customers.
Speaker Change: Where we were recognized as a preferred vendor. So we have high confidence not only on continuation of the work, but also on the gradual growth of this amount of the work we do together.
Speaker Change: We are deepening our vertical expertise and significantly enhancing our partnership capabilities.
Speaker Change: In summary, <unk> has a strong foundation and is well positioned for continued growth in 2025, and I'm confident in our ability to execute I look forward to updating all of you our next earnings call.
Speaker Change: The second thing, which you already also mentioned is the size of the opportunities I would say historically, we have probably.
Speaker Change: The biggest number of opportunity of what we consider are considered to be big deals which means like.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: But not like.
Speaker Change: Small teams here and there, but actually programs, which require coordination implementation and we have Mike.
Speaker Change: Longer tenure by its nature, so basically to summarize there is one more important factor we're in many more large rfps.
Speaker Change: So.
That's kind of opens up us.
Speaker Change: The success.
Speaker Change: Excellent again, thank you so much congrats thank.
Mike: Thank you. Thank you. Thank you Mike.
Speaker Change: Ladies and gentlemen, this concludes the Q&A part of our call now going to turn it back to the letter.
Speaker Change: For closing statements.
Speaker Change: Hi.
Speaker Change: Yeah.
Speaker Change: 'twenty 'twenty five is off to a great start.
Speaker Change: The demand environment is improving and these results highlight our strengths and unique position in the AI driven digital transformation industry without Giga cube framework in mind, we have identified our key priorities, we're implementing numerous technology enhancements around.
Speaker Change: AI and other advanced computing technologies, we continue to expand our followed this strategy, adding more capabilities worldwide.
Speaker Change: We are deepening our vertical expertise and significantly enhancing our partnership capabilities.
Speaker Change: In summary, <unk> has a strong foundation and is well positioned for continued growth in 2025, and I am confident in our ability to execute I'll look forward to updating all of you our next earnings call.
Speaker Change: Yeah.
Speaker Change: [music].
Goodbye.