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Grid Dynamics (GDYN) to Revamp Global Inventory Allocation

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Grid Dynamics (GDYN - Free Report) teamed up with Dataiku to roll out its new Inventory Allocation Optimization Solution to aid ongoing global supply chain challenges.

An efficient supply chain is among the top priorities for most companies due to rapid changes in demand patterns over the last few years. The new co-developed solution addresses this issue with its ready-to-use supply chain analytics and optimization capabilities, improving operational efficiency and reducing costs.

The new release marks a step forward in the ongoing collaboration with Dataiku. It harnesses Grid Dynamics’ supply chain expertise and Dataiku’s advanced end-to-end AI platform empowering companies to tackle complex inventory challenges, avoid losses due to inventory misallocation and improve customer experience.

In June 2020, Grid Dynamics and Dataiku combined their expertise to provide top-level toolkits for data preparation and ML model deployments and deep skills in business and technology. They aimed to deliver complex AI/ML programs and its seamless integration into marketing, revenue management and supply chain operations.


Evolving Partnership’s to Aid Grid Dynamics Prospects

Grid Dynamics continues to provide digital transformation solutions to achieve its revenue objectives in a cost-effective manner. With its robust business development efforts and recent acquisitions, it aims to expand its clientele and emerge as a leading digital technology provider.

Grid Dynamics is banking on its strategic partnerships with enterprises like Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , and Alphabet (GOOGL - Free Report) , which have been driving its top and bottom-line growth and contributing towards lead generation.

Grid Dynamics, being the advanced consulting partner to Amazon AWS, aims to provide businesses with flexible and scalable solutions to drive digital value in the cloud. This collaboration exhibits customer confidence in proven engineering teams which can efficiently deliver solutions with the advanced capabilities and benefits of AWS.

Grid Dynamics being available on the Microsoft Azure marketplace, has enabled its customers to take advantage of the scalability, high availability and security of Azure, with streamlined deployment and management. It has recently launched its new Starter Kits to accelerate enterprise migration.
Integration of Google’s Cloud Platform with Grid Dynamics has provided the latter’s customers with advanced cloud-based applications to accelerate scalability and growth. It continues to be the primary partner for the implementation of Google’s Discovery AI for Retail, offering product search and recommendations.

What awaits Grid Dynamics Shares in 2023?

Shares of Grid Dynamics have gained 2.2% year-to-date, compared with the Zacks Computer and Technolog sector, rising 19.8% over the same time frame.

The underperformance can be attributed to challenging macroeconomic conditions and raging inflation. Concerns regarding their ability to meet project deadlines have also impacted its performance.

Despite market uncertainties, it has added 13 new enterprise customers to its organic business and witnessed a stronger demand for its new as well as existing programs. It has also been expanding its M&A pipeline with its recent acquisition of Mutual Mobile, boosting its global talent base.

It has reported a 21.1% year-over-year revenue increase to $80.6 million in fourth-quarter 2022. Its technology segment representing 33.7% of fourth-quarter revenues increased 38.8% year over year. The increase was primarily due to growth in technology customers.

This Zacks Rank #3 (Hold) company’s earnings of 14 cents per share increased 40% year over year. The earnings beat the Zacks consensus estimate by 27.27%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Grid Dynamics’ new project, Giga-Cube initiative, lays a framework for $1 billion in revenues. Its focuses on three dimensions which include expansion into technology-driven industries, building a global presence and innovation at the intersection of business, technology and data.

For the first quarter of 2023, Grid Dynamics expects revenues between $78 million and $80 million.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $79.38 million, indicating 11.16% growth from the year-ago quarter’s reported figure.

The consensus mark for first-quarter 2023 earnings remained unchanged at 8 cents per share in the past 30 days.

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