Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) reported Q1 EPS of ($0.09), versus $0.04 reported last year. Revenue for the quarter came in at $32.5 million, versus $26.28 million reported last year.

First Quarter 2020 Financial Highlights

• Total revenue was $32.5 million, an increase of 2% sequentially and 24% year-over-year.
• GAAP gross profit was $9.8 million or 30.2% of revenue, compared to GAAP gross profit of $10.3 million or 39.4% of revenue in the first quarter of 2019. Non-GAAP gross profit was $11.5 million or 35.4% of revenue, compared to a non-GAAP gross profit of $10.6 million or 40.3% of revenue in the first quarter of 2019.
• GAAP Net loss attributable to common stockholders was $(4.6) million, or $(0.09) per diluted share, based on 48.9 million weighted-average common shares outstanding, compared to GAAP net income attributable to common stockholders of $0.7 million, or $0.04 per diluted share, based on 20.2 million weighted-average common shares outstanding in the first quarter of 2019. Non-GAAP Net Income was $1.9 million, or $0.04 per diluted share, based on 48.9 million weighted-average common shares outstanding, compared to Non-GAAP Net Income of $2.5 million, or $0.12 per diluted share, based on 20.2 million weighted-average common shares outstanding in the first quarter of 2019. Taking into account a normalized tax rate, Adjusted Non-GAAP Net Income, was $2.4 million, or $0.05, based on 48.9 million weighted-average common shares outstanding, in the three months ended March 31, 2020.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, other income, and stock-based compensation), a non-GAAP metric, was $3.0 million, compared with Adjusted EBITDA of $3.9 million in the first quarter of 2019.
• See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Information” below for discussion of our non-GAAP measures.

“We are pleased to report solid first quarter 2020 financial results, reflected in our strong year-over-year growth of 24%, and we are excited to begin a new chapter as a publicly traded company,” said Leonard Livschitz, chief executive officer of Grid Dynamics. “The COVID-19 pandemic is an unprecedented crisis with no comparable in recent times. Across our customer base, the response to the pandemic has been varied and motivated by both company specific as well as industry specific dynamics. Given that, our priorities and focus have been centered around the health and safety of our global team members and their families, working closely with our customers as they navigate through these challenging times, and ensuring our execution is flawless. Although we had a strong first quarter performance, the strength in the quarter was offset by the economic deterioration caused by COVID-19 starting in the second half of March onwards. Our first quarter results would have been stronger, both on top-line revenue, and even more so on profitability, had we not experienced the negative impacts of the pandemic. That said, we exited the quarter with 37 customers, up from 24 in the same period a year ago and subsequent to the quarter end, we have added 5 additional new customers which is a testament of Grid Dynamics value in the world of accelerated digital transformation. The impact resulting from COVID-19 has been more pronounced at some of our retail customers while other client segments have been less affected. To ensure Grid Dynamics successfully navigates through this crisis, we have put in place initiatives to leverage new customer partnerships, sharpen our R&D efforts, and ensure financial discipline. This crisis will serve as a catalyst for Fortune 1000 enterprises to accelerate their investments in digital transformation programs, and we strongly believe Grid Dynamics will be their partner of choice. Our unique capabilities, agile global delivery model, and deep domain expertise position us extremely well to capture this demand, and we are excited about the breadth of opportunities available to us to expand our business and build long-term shareholder value.”

“Given the heightened uncertainty and diminished visibility, the current pandemic has reduced our ability to forecast our business. Consequently, we are withdrawing our previously announced guidance for 2020, but will provide a revenue outlook for the second quarter,” Livschitz added.

For earnings history and earnings-related data on Grid Dynamics Holdings, Inc. (GDYN) click here.