EPAM Systems, Inc. (NYSE:EPAM) Q4 2022 Earnings Conference Call February 16, 2023 8:00 AM ET Company Participants David Straube - Head of Investor Relations Arkadiy Dobkin - Chairman, President and Chief Executive Officer Jason Peterson - Chief Financial Officer, Senior Vice President & Treasurer Conference Call Participants Ramsey El-Assal - Barclays Bryan Bergin - Cowen Maggie Nolan - William Blair James Faucette - Morgan Stanley Surinder Thind - Jefferies David Grossman - Stifel Jason Kupferberg - Bank o ...

GAAP Diluted EPS of $2.61, 8.7% YoY Non-GAAP Diluted EPS of $2.93, 6.2% YoY Mobile devices The Company launches EPAM Continuum, the company's vision for integrated Consulting and Engineering services. Within EPAM's top 100 clients, 20% are in the Fortune 500 and more than 50% are in the Forbes Global 2000. Investor February 2023 These materials contain forward-looking statements. You should not place undue reliance on these statements because they are subject to numerous uncertainties and factors relating ...

Financial Data and Key Metrics Changes - In Q3 2022, EPAM delivered revenues of $1.23 billion, representing a 24% year-over-year growth, and a non-GAAP diluted EPS of $3.10, a 30% increase over Q3 2021 [23][32][44] - The company generated $234 million of free cash flow and ended the quarter with approximately $1.5 billion in cash [24][45] - The GAAP gross margin for the quarter was 32.6%, compared to 33.9% in Q3 of the previous year, while non-GAAP gross margin was 34.4%, down from 35.1% [39][40] Business Line Data and Key Metrics Changes - Travel and Consumer grew 41.9%, driven by strong organic growth from retail customers [35] - Life Sciences and Healthcare grew 35%, with significant contributions from the healthcare sector [35] - Financial Services grew 10.4%, while excluding Russian customers, growth would have been 25.4% [35] - Emerging verticals delivered 26.6% growth, driven by clients in energy, manufacturing, and automotive [36] Market Data and Key Metrics Changes - The Americas represented 61% of Q3 revenues, growing 26.3% year-over-year [37] - EMEA, accounting for 36% of revenues, grew 35.3% year-over-year [37] - CEE contracted 77.2% year-over-year due to the exit from Russia [38] - APAC grew 10.5% year-over-year, now representing 2% of revenues [38] Company Strategy and Development Direction - The company is focused on global diversification and expanding its delivery capabilities, with a goal to become one of the most geographically balanced service companies [12][15] - EPAM is working to reposition its service portfolio and maintain high service quality amid geopolitical challenges [16][17] - The company aims to maintain its engineering and technology advantage while investing in educational platforms for talent development [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing geopolitical challenges, particularly the war in Ukraine, and its impact on operations [7][27] - There is a cautious outlook on demand, with clients focusing on cost savings and operational efficiencies [25][81] - The company expects Q4 revenues to be in the range of $1.220 billion to $1.230 billion, reflecting a year-over-year growth rate of approximately 11% [52] Other Important Information - EPAM has spent over $39 million as part of its $100 million humanitarian commitment to Ukrainian employees and their families [51] - The company is adjusting its operations to mitigate the impact of the war and is confident in its ability to adapt and grow [28][29] Q&A Session Summary Question: Insights on Q4 growth forecast - Management indicated that Q4 growth is impacted by fewer billable days and the exit from Russia, which will reduce revenue by approximately 2% [60] Question: Delivery footprint and workforce ramp-up - Management confirmed that they are on track with their delivery capacity plans and expect to reduce reliance on impacted regions [62] Question: Headcount and margin dynamics - Management noted that pricing realignment for relocated employees had a less negative impact on profitability than expected [66] Question: Demand environment and client spending - Management observed a shift towards cost-saving measures among clients, balancing digital transformation priorities [81] Question: Pricing environment amidst inflation - Management highlighted successful rate realignment efforts and ongoing pricing improvements due to relocations [94] Question: M&A activity in the current macro environment - Management stated that M&A activities are not adjusted based on economic conditions, and they continue to seek strategic additions [96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to________ Commission file number: 001-35418 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 ...

1 Investor Presentation November 2022 Safe Harbor Statement These materials contain forward-looking statements. You should not place undue reliance on these statements because they are subject to numerous uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control. Forward-looking statements include information concerning the Company's possible or assumed future results of operations, inclu ...

EPAM Systems, Inc. (NYSE:EPAM) Q2 2022 Earnings Conference Call August 4, 2022 8:00 AM ET Company Participants David Straube - Head of Investor Relations Arkadiy Dobkin - Chief Executive Officer and President Jason Peterson - Chief Financial Officer Conference Call Participants Bryan Bergin - Cowen and Company Darrin Peller - Wolfe Research Margaret Nolan - William Blair Tyler DuPont - Bank of America James Faucette - Morgan Stanley Surinder Thind - Jefferies Ramsey El-Assal - Barclays Puneet Jain - JPMo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to________ Commission file number: 001-35418 | --- | --- | --- | --- | |----------------------------------------------------------------|--------------|---------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to________ Commission file number: 001-35418 | --- | --- | --- | --- | |----------------------------------------------------------------|--------------|--------- ...

Financial Data and Key Metrics Changes - In Q1 2022, EPAM generated revenues of $1.17 billion, a year-over-year increase of 50.1% on a reported basis and 53% in constant currency terms [28] - GAAP gross margin for the quarter was 33.4%, compared to 33.5% in Q1 of last year, while non-GAAP gross margin was 33.3%, down from 34.9% [32] - GAAP income from operations was $129 million, or 11% of revenue, compared to $107 million, or 13.7% of revenue in Q1 of last year [33] - Non-GAAP diluted EPS was $2.49, reflecting a 37.6% growth over the same quarter in 2021 [35] - Cash flow from operations for Q1 was a net cash outflow of $51.8 million, compared to a net cash inflow of $13 million in the same quarter of 2021 [36] Business Line Data and Key Metrics Changes - Travel and Consumer grew 90.9%, driven by strong organic growth from retail and travel customers [28] - Financial Services grew 54%, with strong growth from asset management, insurance, and banking [28] - Life Sciences and Healthcare grew 35.9%, while Software and Hi-Tech grew 28.8% [28] - Emerging verticals delivered 59.4% growth, driven by clients in telecommunications, energy, manufacturing, and automotive [28] Market Data and Key Metrics Changes - America represented 59% of Q1 revenues, growing 46% year-over-year [30] - EMEA represented 36% of Q1 revenues, growing 62.7% year-over-year [30] - APAC grew 41.2% year-over-year, representing 3% of revenues [30] Company Strategy and Development Direction - The company is focusing on geographic diversification and has begun scaling operations in India, Latin America, and Central Asia [15][18] - EPAM has committed $100 million in assistance to support employees affected by the war in Ukraine [8] - The company plans to maintain operations in Belarus while expecting lower utilization levels [44] - Future phases of recovery include focusing on revenue growth and profitability, with expectations to return to historical profit levels by the first half of 2023 [21][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of Ukrainian employees and their ability to maintain productivity despite the ongoing conflict [9][77] - The company anticipates ongoing improvement in profitability in the second half of 2022, with a return to positive sequential revenue growth [46] - Management noted that client retention has been better than expected, with new business starting to come in [57][84] Other Important Information - The company has exited operations in Russia and is working to relocate employees to other delivery locations [14][43] - The company expects to reduce the allocation of production staff in the region to about 30% by the end of 2022 [18] Q&A Session Summary Question: Client retention and new work conversion - Management noted that while some clients paused growth, many have returned and expressed appreciation for the productivity of Ukrainian teams [56] Question: Profitability outlook and structural considerations - Management acknowledged lower utilization levels in Q2 but expects improvement in Q3, with ongoing discussions about rate increases with clients [58][61] Question: New talent development centers - Management indicated a focus on India and Latin America for talent development, with ongoing efforts to establish new delivery centers [69] Question: Pricing discussions with clients - Management reported that clients are generally receptive to price increases due to inflation and the value of EPAM's differentiated service [72] Question: Relocation of employees - Management confirmed that relocation efforts are ongoing, with many employees being moved to various countries, including Poland and Turkey [78] Question: New business development - Management stated that new business development has restarted, with positive feedback from clients about EPAM's capabilities [84]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------------------| | ...