Futures point higher; AMD reports; Novo to cut costs - what’s moving markets
SAN RAMON, Calif. - Grid Dynamics Holdings, Inc. (NASDAQ:GDYN), a technology consulting firm with a market capitalization of approximately $973 million, introduced a new AI-powered engagement model for software engineering services, according to a company press release. According to InvestingPro data, the company maintains strong financial health with a current ratio of 7.25, indicating robust operational capability.
The new model expands beyond traditional fixed price, time and materials, and capacity-based engagements to provide what the company describes as "the next level of agility, quality, and accelerated time-to-market" for Fortune 1000 enterprises.
At the core of this approach is the Grid Dynamics AI-Native Development Framework (GAIN Development Framework), which combines proprietary processes, human capital, and an AI-Enabled Development Platform. The framework shifts from traditional effort-based development to an AI and human collaboration model.
Key features of the new engagement model include prompt-driven incremental output, credit-based service consumption, AI-benchmarked code quality, and a centralized client portal.
"The GAIN Development Framework is not just about automation—it's about unlocking the full potential of engineering teams," said Valery Zelixon, SVP of Sales at Grid Dynamics.
The company stated that based on internal benchmarks, it expects the model to accelerate project delivery with over 30% productivity improvements. The model employs progressive credit-based pricing tied to performance and value. This initiative comes as Grid Dynamics demonstrates strong business momentum, with revenue growing at 18.72% over the last twelve months. InvestingPro analysis reveals 12 additional key insights about the company's performance and outlook.
Leonard Livschitz, CEO of Grid Dynamics, said the company expects "this new engagement model to be a significant growth driver as more Fortune 1000 enterprises seek our expertise to harness AI's potential."
Grid Dynamics, headquartered in Silicon Valley with offices across the Americas, Europe, and India, provides technology consulting, platform and product engineering, AI, and digital engagement services. While the company's stock has experienced a significant decline of about 44% over the past six months, InvestingPro's comprehensive research report, available for over 1,400 US stocks, provides detailed analysis of the company's growth prospects and market position.
In other recent news, Grid Dynamics Holdings Inc. reported its first-quarter 2025 earnings, surpassing analysts' expectations with an earnings per share of $0.11, compared to the forecasted $0.08. The company's revenue also exceeded projections, reaching $100.4 million against the anticipated $98.88 million, marking a 25.8% year-over-year increase. Following these results, Needham analysts raised their price target for Grid Dynamics from $18 to $20, maintaining a Buy rating, citing robust organic growth and successful mergers and acquisitions. The company has provided guidance for the second quarter, aligning with market expectations and reaffirming its full-year 2025 outlook. Additionally, Grid Dynamics launched a new Intralogistics Optimization Starter Kit for NVIDIA Omniverse, aimed at enhancing warehouse efficiency through digital twins and simulation capabilities. This development is part of the company's expanding supply chain intelligence tools and supports its GigaCube growth strategy. Despite economic uncertainties, Grid Dynamics reports no negative impact on client decision-making, with strong visibility into its growth forecast for the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.