Grid Dynamics Holdings, Inc.

At this time, our participants are in listen-only mode. Joining us on the call today are CEO Leonard Lifshitz, CFO Anil Dharadla, CTO Eugene Steinberg, COO Yuri Grislov, and SVP Americas Vasily Sizov. Following the prepared remarks, we will open the call to your questions. Please note that today's conference call is being recorded. Before we begin, I would like to remind everyone that today's discussion will contain forward-looking statements. This includes our business in a 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 SEC. 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. You can find all the information I just described in the investor relations section of our website. I now turn the call over to Leonard, our CEO.

Thank you, Kerry. Good afternoon, everyone, and thank you for joining us today. I'm delighted to report another record quarter in revenue. Our second quarter revenue of $101 million was another all-time high driven by the continued growth in our engineering building headcount. More importantly, we're witnessing a strong pipeline of opportunities across industry verticals. I will talk more about it in my prepared remarks. Grid Dynamics is aligning every aspect of its business with an AI-first approach. This includes infusing AI into go-to-market strategies, service offering, delivery, and talent management. We're doing that while preserving and expanding our core essence around high-caliber technology, consulting, and engineering services. While traditional programs face increased scrutiny, innovation-centric initiatives are being prioritized from a spending perspective. Enterprises are actively seeking AI-native partners capable of driving and leading adoption within the enterprise environment. Furthermore, traditional functional structure within Large enterprises are often lacking the adaptability needed for efficient cross-functional decision-making regarding AI implementations encompassing both technology and business aspects. This is precisely where Green Dynamics plays a crucial role empowering organizations to accelerate AI adoption and enterprise scale. I'm happy to report that in the first half of 2025, AI and data was 23% of the company's overall organic revenue. The AI and data practice is growing almost three times faster than our overall organic business. I'm excited to see the growth in pipeline of opportunities as we enter the quarter with accelerated business momentum. This is the basis for our positive business outlook, even though microeconomic uncertainties persist. I am also pleased to report on the progress with our recent acquisitions. JAXT has significantly elevated our industry expertise in banking and financial services, attracting considerable interest from global banking based in the United States. In the second quarter, a U.S.-based global bank continued to be a top-ten customer, and that was the reason the financial services vertical remained our second largest. Mobile computing has enhanced our follow-the-sum capabilities and telequisition effort, successfully integrating engineering teams to support our U.S. enterprise accounts. Our partnership influence revenues reached 17.9% of the total revenue in Q2 2025. And we continue to experience increased traction with all hyperscalers, notably with Google. In our European business, we begin implementing a module B2B digital search solution built on Microsoft Azure for one of the largest worldwide brewing companies. We also have launched AI expert agents at a Tier 1 investment bank to perform in-depth code quality and security reviews as a part of the software development lifecycle. Our India expansion continues to be a strategic highlight. India is now among our two top countries by the headcount. and has emerged as a hub for multi-agent, multi-model platform engineering, demonstrating strong talent attraction and upskilling. Our internship program also saw strong momentum with over 16,000 applicants and high placement rates into the billable roles. Across the majority of our customers, there is a profound impact of AI on the way they are planning their future initiatives and programs. Customers now expect a flavoring of AI across all of their service offerings, even traditional ones. We firmly believe the workforce pyramid of the IT industry space is shifting towards senior talent and AI-centric agents. As you know, Green Dynamics workforce pyramid is more weighted towards senior, more experienced engineers in comparison to our peers in the IT industry. Our alignment in the workforce, along with the technology-centric DNA, positions us well as enterprises embrace AI. Given the critical role of AI, I would like to emphasize Grid Dynamics' unique market position. It's important for investors to remember that our company's core values are built upon a strong foundation in data and data platforms, as well as expertise in large-scale data engineering for Fortune 1000 enterprises. I will now turn the call over to Eugene Steinberg, our CTO, to elaborate on the important topic of AI. Eugene?

Thank you, Leonard. Good afternoon, everyone. I'm delighted to share how Grid Dynamics is actively retooling for an AI-first future, where AI capabilities are embedded into every aspect of our operations and service delivery from the ground up, rather than added as an afterthought. We are methodically building on a strong foundation of a decade of data and AI experience. We are expanding our key AI capabilities and strategic partnerships. We are delivering production-ready solutions with proven ROI for enterprise clients. We are innovating with major customers and building considerable experience across agentic AI platforms and solutions and AI-first software delivery lifecycle. The investments we made are yielding positive results, many of which I'll discuss today. Grid Dynamics whole AI framework is based on four foundational pillars. Let me walk you through each. First, AI-powered business transformation. We are delivering immediate and measurable impacts from our engagements in the areas of customer engagement, enterprise operations, and manufacturing. Conversational commerce is redefining customer engagements by driving hyper-personalized customer experiences. Our search solutions have become a key entry point for many new client relationships in retail and CPG industries. From there, we often expand to build conversational commerce capabilities. Our efforts routinely yield conversion improvements of over 5%. This success leads to follow-on engagements that average 2-3x the initial project value as clients expand AI adoption across additional business units. We have specialized domain solutions for many sub-verticals that have been particularly differentiating. Take Auto Parts Search, for example. Our fitted Auto Parts Search capabilities have established Grid Dynamics as a preferred partner for most leading Auto Parts retailers. With over 150 AI search specialists deployed across customer projects, we are demonstrating our ability to grow within existing accounts while delivering measurable business impacts. Adjantic AI significantly enhanced efficiency for a major financial services company by automating intelligent processes and facilitating data-driven decisions. Previously, the cost of covering the vast number of Tier 3 customers was prohibitive for digital sales. Our B2B Customer 360 agent now conducts exhaustive research, aggregating client data from diverse sources such as CRM, contract databases, and spreadsheets. These detailed profiles integrate automated risk alerts, AI-powered insights, and intelligent recommendations informed by prior interactions, ultimately leading to improved customer retention and business growth. This initiative is expected to free up about 20% of seller capacity, allowing for a high-touch approach with more clients and accelerated time to revenue. Within the manufacturing sector, we implemented a remaining useful life prediction system for a leading industrial equipment manufacturer, which enhances maintenance planning and reduces unplanned downtime. We have also delivered facility modeling with G-code generation for a global technology company, optimizing manufacturing processes and improving production efficiency. The rise of physical AI is fundamentally transforming the industrial robotics landscape, leading to the replacement of legacy robotic platforms with modern AI-enabled solutions. We collaborate with innovative platform providers such as Vandalbots, enhancing their offerings with advanced AI components for inspection, welding and precision manufacturing applications. This represents a new and promising revenue stream for our company. Second, AI and agentic platforms. We partner with large enterprises to develop in-house bespoke agentic AI platforms. For instance, we are collaborating with a leading global payment technology company and a multinational beverage giant to construct comprehensive AI platforms. These platforms empower our clients to create a full spectrum of AI agents, both low-code and high-code, within a secure, scalable environment. They offer an expanding ecosystem of tools for agents to access enterprise data and systems. This platform-first strategy enables us to seize substantial expansion opportunities by building AI solutions on top of the platforms we develop. Third, AI-first SDLC. As enterprises embrace AI-first mentality, the entire approach to the software development lifecycle, SDLC, is shifting. Last month, we introduced our proprietary AI-centric Grid Dynamics AI Native, or GAIN, engagement model, and we are driving strong adoption of AI-first SDLC methodologies across Grid Dynamics. What is particularly exciting is that this enables our expansion into previously unaccessible market segment. Labor-intensive legacy modernization projects that traditionally required large volume of relatively low-skilled labor are now within our reach. This represents a significant market expansion opportunity, as we can now compete for projects that were previously economically unfeasible. For example, we are migrating 16,000 data processing jobs for a global technology leader using a small, specialized team equipped with AI-first SDLC tooling. AI-first SDLC has dramatically improved our pre-sales and client acquisition. We now create high-quality proof-of-concepts and prototypes in hours, not weeks, significantly boosting conversion rates and shortening sales cycles. For example, when a leading specialty pet retailer requested a computer vision solution to automate fish counting in aquariums, previously requiring manual fish transfer between tanks, our AI-first development team delivered a working prototype the next day. And finally, fourth, grid dynamics process efficiency. Beyond client-facing complications, we are leveraging AI to transform our own internal operations. Our in-house agentic AI platform is transforming and automating every aspect of our operations, including knowledge management, talent sourcing, project management, contract reviews, and HR functions. AI is fundamental to driving our client business forward. Our continuous commitment to the AI-first future is unwavering, and I am excited about the road ahead. I will now turn the call over to Vasily Sizov, our SVP of Americas, to discuss some notable project highlights from the quarter.