Shares of Grid Dynamics Holdings, Inc. (NASDAQ: GDYN) are soaring 5.47% in pre-market trading on Friday following the release of its impressive first-quarter 2025 financial results. The company, which specializes in digital transformation services and solutions, reported earnings that exceeded analyst expectations and demonstrated robust growth driven by its AI initiatives.

Grid Dynamics reported quarterly adjusted earnings of 11 cents per share, surpassing the mean expectation of 9 cents per share from five analysts. Revenue for the quarter rose 25.8% year-over-year to $100.42 million, also beating the analyst consensus of $98.36 million. The company's non-GAAP EBITDA of $14.6 million exceeded the guidance range, showcasing strong operational performance.

Investors are particularly encouraged by Grid Dynamics' success in implementing AI solutions for clients, which has resulted in significant improvements in key business metrics. For instance, the company reported a 9% increase in conversion rates and a 21% increase in click-through rates for a luxury retail group. The focus on AI-driven growth, expansion into diverse industries, and strong momentum in AI-based search solutions are seen as catalysts for future growth. Despite some challenges in certain verticals, the company's positive outlook for the full year, with projected revenue growth of 18.4% to 24.1%, is bolstering investor confidence and driving the stock's pre-market rally.