SAN RAMON, Calif. - Grid Dynamics Holdings, Inc. (NASDAQ:GDYN), known for its expertise in technology consulting and various digital services, announced today its intention to launch a public offering of 5,000,000 shares of common stock. The company will also offer the underwriters an option to purchase up to an additional 750,000 shares within a 30-day period.
The proposed offering is contingent on market conditions and other factors, with no guarantees regarding the completion timeline, offering size, or terms. J.P. Morgan Securities LLC, William Blair & Company, L.L.C., and TD Cowen are serving as joint book-running managers, with Needham & Company acting as a co-manager.
This offering follows an automatic shelf registration statement on Form S-3, which is already effective. Prospective investors can obtain copies of the prospectus from the managing firms once available.
Grid Dynamics, established in 2006 and headquartered in Silicon Valley, specializes in platform and product engineering, artificial intelligence (AI), and digital engagement services. The company emphasizes its eight years of experience in enterprise AI and its presence across the Americas, Europe, and India.
The company's communication includes forward-looking statements regarding the offering, which are subject to risks and uncertainties that could cause actual results to differ from expectations. These statements are protected under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
The press release also notes that this announcement does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer or sale would be unlawful without registration or qualification under the securities laws of such state or jurisdiction.
Investors are cautioned not to rely unduly on these forward-looking statements, which reflect the company's position only as of the date they were made. The announcement is based on a press release statement, and potential investors are encouraged to review Grid Dynamics' filings with the SEC for a more comprehensive understanding of the risks involved.
In other recent news, Grid Dynamics Holdings has been performing impressively, with TD Cowen maintaining a positive outlook on the company's financial health and market position. Following a strong third-quarter performance, Grid Dynamics surpassed revenue and EBITDA estimates by 3% and 15%, respectively, leading TD Cowen to raise its price target on the company's stock. The company's effective mergers and acquisitions strategy, highlighted by the successful completion of Mobile Computing and JUXT acquisitions, is expected to contribute to future growth.
Recent developments also show a differentiated demand recovery for Grid Dynamics, driven by large clients and the addition of new logos. Q3 2024 saw record revenue of $87.4 million, exceeding the projected range, and Non-GAAP EBITDA outperformed forecasts, registering at $14.8 million. These robust results were fueled by demand across key sectors and strategic acquisitions.
Looking ahead, Grid Dynamics anticipates positive Q4 revenues between $95 million and $97 million, with acquisitions projected to contribute 10% to this revenue. Despite conservative guidance for December due to holiday furloughs, strong demand from existing and new customers suggests a promising outlook.
InvestingPro Insights
Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) has been experiencing significant market momentum, as evidenced by recent InvestingPro data. The company's stock has shown remarkable performance, with a 91.69% price total return over the past six months and a 79.09% return over the last year. This strong performance aligns with the company's decision to launch a public offering, potentially capitalizing on investor interest.
InvestingPro Tips highlight that Grid Dynamics holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. These factors could provide reassurance to potential investors in the upcoming stock offering, suggesting financial stability.
The company's revenue growth is noteworthy, with a 12.94% increase in the most recent quarter. This growth trajectory supports the InvestingPro Tip that net income is expected to grow this year, potentially making the stock offering more attractive to investors seeking growth opportunities.
It's worth noting that Grid Dynamics is trading near its 52-week high, with its current price at 96.32% of the 52-week high. While this indicates strong market confidence, the InvestingPro Tip suggesting the stock is in overbought territory based on RSI may be a point of consideration for investors evaluating the timing of the offering.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Grid Dynamics, providing a comprehensive view of the company's financial health and market position.
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