Why Are Grid Dynamics Shares Soaring Today?

Grid Dynamics Holdings GDYN reported third-quarter FY21 revenue growth of 120% year-on-year to $57.9 million, beating the consensus of $50.9 million.
The Technology, Media, and Telecom vertical grew 39.2%Y/Y, the Retail vertical grew 198.2% Y/Y, and CPG/Manufacturing grew 233.9% Y/Y. Finance grew 69% Y/Y; Other grew 402.9% Y/Y.
The non-GAAP gross margin expanded 130 bps to 43.9%. EPS of $0.11 beat the consensus of $0.08.
Grid Dynamics generated $14.7 million in operating cash flow for the nine months ended September 30 and held $199.3 million in cash and equivalents.
Outlook: Grid Dynamics sees Q4 revenue of $58.0 million - $59.0 million, above the consensus of $52.3 million. It sees FY21 revenue of $202.0 million - $203.0 million, above the consensus of $190.1 million.
Analyst rating: Needham analyst Mayank Tandon maintained a Buy and raised the price target from $30 to $45, implying a 54% upside.
The company posted "stellar" Q3 results that beat expectations across the board as revenue jumped 15% from Q2 on an organic basis. Tandon adds that he is incredibly impressed with the management's ongoing client diversification efforts and the seven new logo wins in Q3 across industry segments.
Price Action: GDYN shares traded higher by 25.50% at $36.69 in the market session on the last check Friday.

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