Virtusa Corporation (NASDAQ:VRTU) Q2 2020 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET


Virtusa Corporation (NASDAQ:VRTU) Q2 2020 Earnings Conference Call - Final Transcript


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Welcome to the Virtusa Corporation Second Quarter Fiscal Year 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to William Maina, Investor Relations. Please go ahead.

William Maina

Thank you, Andrew, and welcome to Virtusa's second quarter fiscal year 2020 earnings conference call, where we will be discussing our financial results for Virtusa's second quarter ended September 30, 2019. On the call with me are Kris Canekeratne, Chairman and Chief Executive Officer; and Ranjan Kalia, Executive Vice President and Chief Financial Officer.

Certain statements made on this call that are not based on historical information are forward-looking statements, which are pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. During this call, we may make expressed or implied forward-looking statements relating to among other things, Virtusa's expectations and assumptions concerning management's forecast of financial performance. The growth of Virtusa's business, the ability of Virtusa's clients to realize benefits from the use of Virtusa's IT services and management's plans, objectives and strategies. These statements are neither promises nor guarantees and are subject to a variety of risks and uncertainties, many of which are beyond Virtusa's control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Virtusa undertakes no obligation to update or revise information disclosed during this call, whether as a result of new information, future events, circumstances or otherwise.

Other statements on this call also include certain non-GAAP financial information as defined by the SEC. We present constant currency revenue to provide a framework for assessing how our revenue performed, excluding the effect of foreign currency rate fluctuations. We provide non-GAAP adjusted operating income, non-GAAP adjusted net income and non-GAAP earnings per share, which we believe provide insight into the operational performance of our business, reconciliations of non-GAAP to GAAP measures are included in today's earnings press release and data sheet, which can be found on the Investor Relations page of our website. We also present a reconciliation of cash, cash equivalents, short-term and long-term investments, that we believe provide insights into our total cash position and overall liquidity. Please note that a supplemental data presentation to our second quarter results has also been posted to our Investor Relations website. For additional disclosure regarding these and other risks faced by Virtusa, please see the disclosures contained in Virtusa's public filings with the SEC and in our earnings press release.

With that I'd like to turn the call over to Kris. Kris?

Kris Canekeratne

Thank you, Will. Good evening everyone and thank you for joining us today. We delivered solid fiscal second quarter financial results that exceeded the midpoint of our guidance range. Total revenue was $328.5 million,