Virtusa Corporation (NASDAQ:VRTU) Q1 2018 Earnings Conference Call - Final Transcript

Aug 08, 2017 • 08:00 am ET


Virtusa Corporation (NASDAQ:VRTU) Q1 2018 Earnings Conference Call - Final Transcript


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Kris Canekeratne

increase of approximately 1% sequentially and 10.6% year-over-year. And non-GAAP EPS of $0.25, representing 39% year-over-year growth. The momentum we are building in our business positions us well for strong, sequential growth in the second quarter and full fiscal year. As such, we are raising the midpoint of our 2018 revenue guidance range, which Ranjan will discuss in greater detail during his remarks.

Turning now to recent developments, as you probably read in our earnings press release, we announced today, two important changes to our organizational model. We believe these actions will strengthen Virtusa's position to capitalize on the areas of significant growth in our industry and enhance long-term profitable growth. As we discussed with you over the past several quarterly earnings calls, the IT services industry is undergoing a rapid transformation with many of our clients accelerating their investments in digital solutions, while also seeking programs that reduce their spend on business, as usual, IT program.

In light of this ongoing industry transformation to digital and the significant market opportunity it represents, we are making strategic investments that will allow us to expand our addressable market in digital by developing an in-house digital business strategy practice.

Raj Rajgopal has been appointed President, Digital Business Strategy. Among Raj's many accomplishments at Virtusa, he has been instrumental in building our current business consulting capabilities that enable us to deliver business and customer experience transformation. Having played a senior leadership role at a global consulting firm prior to joining us, he possesses extensive strategy consulting experience. Raj is well qualified to lead a team of digital strategy consultants across our industry segments to help our clients deliver disruptive, digital business models.

A critical role of our digital business strategy team will be to intersect new digital business opportunities with key decision makers, who reside outside the traditional IT function of an organization such as CEOs, Heads of Businesses, Chief Digital Officers and Chief Marketing Officers. By building on our heritage of digital execution and having partnered with many of the most progressive enterprises on their end-to-end digital initiatives, Raj and his team will focus on developing strategic partnerships with prospective and existing clients to formulate and execute their digital business strategies.

We believe that this will enable us to expand our addressable market opportunity by reaching new buyers of digital solutions, shape digital program and accelerate digital business opportunities for our clients, further strengthening our position as a market leader in digital services. In parallel with the formation of our digital business strategy group, we are placing all industries under the leadership of Samir Dhir, who has been appointed President of Virtusa.

We recently reached an important milestone by successfully completing the integration of Polaris, and we are well positioned to further leverage the strong synergies of our combined companies by bringing together our leading industry solutions, business consulting capabilities, deep domain expertise and global delivery under a single combined business entity.

Samir has played a significant role in integrating Polaris with