EPAM Systems, Inc. (NYSE:EPAM) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 08:00 am ET


EPAM Systems, Inc. (NYSE:EPAM) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to the EPAM Systems Third Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

[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 welcome everyone. By now you should have received your copy of the earnings release for the Company's third 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 Investor section of our website.

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

Arkadiy Dobkin

Thank you, David and good morning, everyone. Thanks for joining us. We delivered revenue of $588 million, reflecting an approximate 26% year-over-year growth or 27% in constant currency terms. Additionally, non-GAAP earnings per share was $1.39, which represents approximately 19% growth from Q3 of 2018. As we have discussed in the past, the challenges facing our clients continue to be complex and multi-dimensional. The digital ecosystem where everything is coming together, including people, suppliers, consumers and businesses into scalable and flexible environment brings with it a completely different level of sophistication in designing, building and delivering dynamic experiences, platform and systems.

And while many companies are investing in digital technologies across a very diverse landscape of system of record, engagements and insights, the use of technology to solve currently visible problems doesn't ensure future success. Instead organizations marching steps ahead and turn themselves into constantly changing adaptive enterprises by empowering these capabilities, in properly designed and well-built digital ecosystems.

This means that our clients must think about how to meet the challenges addressing the market share and opportunities as well as how to adapt to both technology and constant organizational changes, and do so with a high degree of agility, this continues to be very critical. As a result, during the last several years and present Q3, we have seen inconsistent demand environment that continues to present us with opportunities to expand from our traditional project engineering and technology-led lines of businesses into adjacent business and experience driven areas of customer needs.

That in turn has forced us not only to advance our consulting opportunities, but to bring those capabilities much earlier in the engagement cycles in comparison to what we did just several years ago. This evolution is also challenging us to think