EPAM Systems, Inc. (NYSE:EPAM) Q4 2019 Earnings Conference Call - Final Transcript

Feb 20, 2020 • 08:00 am ET

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EPAM Systems, Inc. (NYSE:EPAM) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the EPAM Systems Fourth Quarter 2019 Earnings Conference 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. It is now my pleasure to introduce your host, David Straube, Head of Investor Relations. Thank you, sir. 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 fourth 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 risk 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 on our quarterly earnings materials located in the Investors section of our website. With that said, I will now turn the call over to Ark.

Executive
Arkadiy Dobkin

Thank you, David and good morning everyone. Thanks for joining us. At our recent Investor and Analyst Day in November 2019, we spent some time speaking about the challenges our customers face from improving productivity to speeding up business results in increasingly competitive environment. We talked about the necessity for most of our customers to transform themselves into adaptive enterprises, because the way we see it, adaptiveness is a key puzzle that must be solved in order to compete effectively. And in turn to be the best partner to our clients and help them solve their challenges, we understand that EPAM needs to be a fast global and highly adaptive organization itself.

While, obviously, most of our competitors have also been talking about transforming into more modern players, we tried to explain back in November, why we think EPAM is all ready for the adoption of distributed agile delivery models in close collaborations why our delivery teams in product centric engineering practices is positioned better than most to be successful in solving the corresponding challenges. And that we are planning to do to make sure those goals are not just words but a direction for an actionable efforts and practical investments.

Now three months later, we consider our full year financial results, as well as revisit several points we talked with you about back in November. We finished 2019 in strong fiscal position across several dimensions in our business. Financially, we landed $2.29 billion in revenues reflecting 25% year-over-year constant currency growth and non-GAAP earnings per share of $5.42, a 23% increase over fiscal 2018. Additionally, we generayed $188 million of free cash flow for the year. On the people front, we added 6500 addition to our EPAM headcount across our client facing teams and corporate functions.

Also