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SAN RAMON, Calif. - Grid Dynamics Holdings, Inc. (NASDAQ: NASDAQ:GDYN), a global provider of technology consulting and engineering services, has announced the acquisition of JUXT, a UK-based software engineering firm specializing in data-intensive systems for the financial sector. This strategic move aims to bolster Grid Dynamics' growth within the European banking and financial services industries.
JUXT has been recognized since its inception in 2013 for its expertise in the full life cycle development and operation of mission-critical information systems for leading banks and financial institutions. Their services span from design and user experience to deep functionality and ongoing managed services, with a focus on risk platforms, structured notes, equity derivatives, and financial reporting.
Leonard Livschitz, CEO of Grid Dynamics, stated that the acquisition is a significant step in accelerating the company's expansion, particularly in the financial services industry. JUXT's experience and operational know-how in data-driven infrastructures and solutions are expected to complement Grid Dynamics' offerings in trade life cycle, prime brokerage, and risk management.
Jon Pither, CEO of JUXT, expressed enthusiasm about joining Grid Dynamics, noting that the global reach and engineering excellence of Grid Dynamics will enable JUXT to offer a broader range of services and locations to their clients.
The acquisition aligns with Grid Dynamics' GigaCube growth strategy, which focuses on providing industry expertise and thought leadership in banking and financial services. It also expands Grid Dynamics' portfolio of enterprise clients and reinforces the company's position as a leader in complex data solutions.
Grid Dynamics, founded in 2006 and headquartered in Silicon Valley, specializes in AI, digital engagement services, and technical consulting. The company's experience in enterprise AI and ongoing investment in data, analytics, cloud & DevOps, and customer experience set it apart in the industry.
This acquisition is subject to the usual risks and uncertainties that could affect the expected results, as detailed in Grid Dynamics' regulatory filings. The information is based on a press release statement from Grid Dynamics Holdings, Inc.
In other recent news, Grid Dynamics has posted impressive results for the second quarter of 2024, setting a new record with its highest ever quarterly revenue. This achievement, which surpassed both revenue and non-GAAP EBITDA forecasts, was fueled by substantial growth in the retail and finance sectors, along with an expanded customer base. The company's strong cash position, estimated around $250 million, is facilitating an active exploration of M&A opportunities.
Grid Dynamics also reported a significant increase in its number of billable engineers and total workforce, reaching a headcount of 3,961 employees. The company is strategically targeting growth in Europe and has reached a record high in partnerships. However, it noted a decline in revenue from the TMT and CPG/manufacturing sectors.
Analysts from various firms have noted these developments, and the company's focus on enhancing AI capabilities, which have earned it four industry awards. The company expects third-quarter revenues to fall between $84 million and $86 million. Looking ahead, Grid Dynamics plans to target top clients, expand with existing ones, and form new partnerships, reflecting an optimistic outlook for future growth and business operations improvement.
InvestingPro Insights
Amidst the strategic acquisition of JUXT, Grid Dynamics Holdings, Inc. (GDYN) continues to be a topic of interest among investors. According to InvestingPro data, the company holds a market capitalization of approximately $1.08 billion, reflecting its significant presence in the technology consulting and engineering services sector. Despite facing a slight decline in revenue over the last twelve months as of Q2 2024, with a decrease of 0.26%, Grid Dynamics has seen a more positive quarterly revenue growth of 7.36% for the same period. This indicates a potential rebound and aligns with the company's growth-focused initiatives, such as the recent acquisition.
InvestingPro Tips suggest that Grid Dynamics' financial health is bolstered by having more cash than debt on its balance sheet and liquid assets that exceed short-term obligations. These factors are crucial for the company's ability to invest in growth opportunities and manage acquisitions without compromising its financial stability. Additionally, analysts have a positive outlook on the company's profitability, predicting that Grid Dynamics will become profitable this year. This is supported by the fact that three analysts have revised their earnings expectations upwards for the upcoming period, reflecting confidence in the company's financial trajectory.
While Grid Dynamics does not pay a dividend, which may influence certain investors' decisions, the company has demonstrated a strong return over the last three months, with a total price return of 36.25%. This performance is particularly impressive and may be of interest to investors looking for companies with robust short-term growth potential.
For those seeking a deeper dive into Grid Dynamics' financials and future prospects, InvestingPro offers additional tips on the company. A visit to https://www.investing.com/pro/GDYN provides access to these insights, helping investors make more informed decisions.
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