EPAM Systems, Inc. (NYSE:EPAM) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 08:00 am ET

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EPAM Systems, Inc. (NYSE:EPAM) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the EPAM Systems Second Quarter 2019 Earnings Call. [Operator Instructions].

At this time I'll turn the conference over to Mr. David Straube, Head of Investor Relations.You may begin.

Executive
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 second quarter 2019 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, Chief Financial Officer.

Before we 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 in the Investors section of our website.

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

Executive
Arkadiy Dobkin

Thank you, David, and good morning, everyone. Thanks for joining us. I would like to start with a few financial highlights from our second quarter.

We delivered revenues of $552 million, reflecting an approximately 24% year-over-year growth or 25% in constant currency terms. Additionally, we delivered a strong non-GAAP earnings per share of $1.28, which represents approximately 27% growth from Q2 of 2018. Our growth during the first half 2019 reflects our position in the markets we serve, which continue to transform with extremely fast pace. Disruption is occurring across every industry driven by the impact of new technologies from one side and very dynamic changes in the competitive landscape led by digitally native companies operate in a different speed of levels from another.

We do believe that this trends have and will continue to create opportunities for EPAM, and we feel we are well positioned to continue to serve our clients and offer solutions to solve, the increasingly complex business challenges.

All that as long as we are able to challenge ourselves to adapt our offerings in our own organization to new market needs. So our journey to drive our own relevancy in the market is nonstop, as we push across EPAM to challenge and change the ways in which we operate and serve clients.

That was all aspects of our operations, including our talent acquisition strategy, expansions in new geographies, and additions to our offerings and capabilities. Everything is done to increase value by bringing our core project engineering digital engagement and consulting services to the next level.

Our recent acquisition of Compententum, which we announced in July is a good illustration of our direction. While it is a small company in terms of revenue and then play base, Compententum allow us to extend EPAM education and learning capabilities as part of our digital proposition across boards. Our clients' portfolios and our internal needs.

We believe professional development in the digital transformation space is becoming just as important as