EPAM Systems, Inc. (NYSE:EPAM) Q3 2018 Earnings Conference Call - Final Transcript

Nov 01, 2018 • 08:00 am ET


EPAM Systems, Inc. (NYSE:EPAM) Q3 2018 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Greetings, and welcome to the EPAM Systems' Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, David Straube, Head of IR for EPAM. Thank you, Mr. Straube. You may begin.

David Straube

Thank you, operator; and good morning, everyone. By now, you should have received your copy of the earnings release for the Company's third quarter 2018 results. If you have not, a copy is available at epam.com in the Investors section. With me on today's call are Arkadiy Dobkin, CEO and President; and Jason Peterson, CFO.

(Forward-Looking Cautionary Statements)

Additionally, all references to reported results that are non-GAAP measures have been reconciled to GAAP and are available in our Q3 earnings material located in the Investors section of our website.

With that said, I'll now turn the call over to Ark.

Arkadiy Dobkin

Thank you, David; and good morning, everyone. Thanks for joining us. Let me begin with a few financial highlights from Q3. We delivered a strong third quarter with revenue of $468 million, reflecting 24% year-over-year growth or 25.4% in constant currency terms. Our revenue growth was broad-based both geographically and across all of our industry verticals. In addition, we delivered strong non-GAAP earnings per share of $1.17, which represents 27% growth from Q3 of 2017.

Our results for the first three quarters of fiscal 2018 point to a very consistent story of our ability to execute and grow in the market that demands high-end expertise and ever-changing cutting-edge capabilities spread across multifunctional teams and geographical locations.

With the story of consistencies as a backdrop, I would like to step back from the quarter and share a bit broader perspective. We are now approaching EPAM's 25th anniversary in December, and we started to orchestrate a number of events across the Company.

Just last month, we hosted our 11th Annual Software Engineering Conference, which brought together our communities of practitioners to connect, learn and exchange ideas about technology trends and define the market we operate in. This year event was attended by over 3,000 employees, as well as guests from our clients and from professional communities. They visited from over 20 countries.

From one side, our message during this conference was kind of a familiar one to practically everyone today. The world continues to be disrupted in a pace and scale that is forcing massive change across all industries and for the clients itself. And in result, the environment continues to be even more demanding and challenging. Outdated, inflexible IT systems that cannot compete against upstarts, operating on natively digital platforms, a need for completely new enterprise architecture, simple customer-centric and configurable, but they often lack the right capabilities to do so, and in many cases, the current partners they're relying on don't have the capabilities to comprehend such new architectures either.

And most importantly, the speed of