EPAM Systems, Inc. (NYSE:EPAM) Q4 2018 Earnings Conference Call - Final Transcript

Feb 14, 2019 • 08:00 am ET


EPAM Systems, Inc. (NYSE:EPAM) Q4 2018 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the EPAM System's Fourth Quarter and Full-Year 2018 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host Mr. David Straube, Head of Investor Relations for EPAM Systems. Thank you. 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 fourth quarter and fiscal 2018 results. If you have not, the copy is available at EPAM.com at the investor section.

With me on today's call are Arkadiy Dobkin, CEO and President; and Jason Peterson, Chief Financial Officer. Before I begin, I'd like to remind you that some of the comments made on today's call may contain forward-looking statements. These statements are subject to risks and uncertainties as described in the Company's earnings release and SEC filings. Additionally all references to reported results that are non-GAAP measures have been reconciled to GAAP and are available in our quarterly earnings materials located on the investor section of our website.

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

Arkadiy Dobkin

Thank you, David, and good morning, everyone. Thanks for joining us. We finished this year in a strong position across several dimensions of our business. Financially we delivered a revenue $1.84 billion, reflecting 27.1% year-over-year reported growth or 26.9% in constant-currency terms, and non-GAAP earnings per share of $4.38 or 26% increase over fiscal 2017. Additionally, we generated free cash flow of $255 million.

2018 was an important year for us. First of all, at the end of December, we celebrated our 25th anniversary. The real significance of that year for us was to prove that while we have been in business for 25 years, we still act, change, grow and feel like a very young and dynamic company. So in 2018, we tirelessly continued to extend our capabilities and workings to drive in deeper connection with clients and we have done this organically through very selective acquisitions and by growing some of our more strategic partner relationship.

As we look across our portfolio of clients, it's clear to see that the types of engagements we're executing today and type of demand we have seen for the future is a broader than fewer engineering. This is the change that we have talked about before in terms of how we view our investments and capabilities. 2018 was a remarkable year, was to absorb the shift from pure software product development programs to much more complex scale and business-critical engagements for our clients. So today with all our expanding capabilities, many of which has been recognized by industry analysts as increasingly vital accelerators.

We are not long address the software engineering company as the core, but also a strong design and experience consultancy, growing business and innovation consultancy, as well as emerging training and educational firm. While stating that I would like to stress that a very important, if not critical,