Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Q4 2014 Earnings Conference Call - Final Transcript

Feb 04, 2015 • 07:30 am ET

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Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Q4 2014 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Ladies and gentlemen, welcome to the Cognizant Technology Solutions Fourth Quarter 2014 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions) Thank you.

I would now like to turn the conference over to David Nelson, Vice President, Investor Relations and Treasurer at Cognizant. Please go ahead, sir.

Executive
David Nelson

Thank you, Rob and good morning, everyone. By now, you should have received a copy of the earnings release for the Company's fourth quarter and full year 2014 results. If you have not, a copy is available on our website, cognizant.com. The speakers we have on today's call are Francisco D'Souza, Chief Executive Officer; Gordon Coburn, President; and Karen McLoughlin, Chief Financial Officer.

Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements. These statements are subject to the risks and uncertainties as described in the Company's earnings release and other filings with the SEC.

I would now like to turn the call over to Francisco D'Souza. Francisco, please go ahead.

Executive
Francisco D'Souza

Thank you, David, and good morning, everyone. Thanks for joining us today.

We finished 2014 on a strong note. Our fourth quarter revenues were $2.74 billion, a sequential increase of 6.2% including revenues from TriZetto. Excluding the impact of the TriZetto acquisition, we posted sequential growth of 3.1% in Q4 which includes a negative currency impact of 1.1%.

For the full year 2014 including TriZetto we delivered $10.26 billion of revenue which represent a growth of 16.1% over 2013.

As you're aware, we revised our full year guidance, growth guidance at the time of our Q2 earnings release on account of client specific issues and delayed ramp ups in some projects. As is clear from our strong performance during Q3 and Q4 those clients and projects specific issues are now behind us and as we enter 2015, we are encouraged by the strength of the demand environment and how well positioned we are to capture the market opportunity.

For the full year 2015, we expect to deliver at least $12.21 billion of revenue which represents full year growth of at least 19% after a 2% currency headwind. Adjusting for the impact of TriZetto and currency movement, this guidance reflects strong revenue growth in our underlying business and is roughly in line with our 2014 growth. Karen will provide you with full details of our expected financial performance shortly.

I'd like to spend the next few minutes providing you a perspective on the trends that we saw last year and how these are impacting the demand environment going forward and how Cognizant is positioned to address the market opportunity.

Let me start with the demand environment. For many quarters, we've been talking to you about a once in a decade shift driven by digital technologies that are putting industries and businesses at cross roads. While there