☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended June 30, 2023 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 EPAM SYSTEMS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

EPAM Systems, Inc. (NYSE:EPAM) Q1 2023 Earnings Conference Call May 5, 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 James Faucette - Morgan Stanley Darrin Peller - Wolfe Research Bryan Bergin - TD Cowen David Grossman - Stifel Margaret Nolan - William Blair Ramsey El-Assal - Barclays Ashwin Shirvaikar - Ci ...

We then support agile and iterative development teams within EPAM – ensuring ongoing improvements and enhancements along a multi-phase roadmap. Corporate Responsibility & Recognitions EPAM Proprietary & Confidential. 20 07 Protect the Environment Operate Ethically Support Our Global & Local Communities We embody these principles by sharing our creative talents and innovations with the world around us. Our employees are empowered to create a global network of impact, powered by local connections. EPAM Propri ...

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, 2023 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 EPAM SYSTEMS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporat ...

Revenue Sources and Market Risks - The company generates a majority of its revenues in North America and Western Europe, but has significant operations in emerging markets, exposing it to greater economic and foreign exchange risks[90]. - A substantial portion of the company's revenues is concentrated in five specific industry verticals: Financial Services, Software & Hi-Tech, Business Information & Media, Travel & Consumer, and Life Sciences & Healthcare[106]. - The company relies on a limited number of customers for a substantial portion of its revenues, making it vulnerable to contract terminations or non-renewals[104]. - Economic conditions and changes in outsourcing strategies could lead to reduced technology-related spending by customers, negatively affecting demand[109]. - The company faces risks from economic downturns, particularly in North America and Europe, which could lead to reduced demand for services and lower revenues[111]. Competition and Market Position - The company faces intense competition from both offshore and onshore IT service providers, which could lead to pricing pressures and loss of market share[91]. - Rapidly changing technologies and evolving industry standards may hinder the company's ability to meet customer needs, impacting competitiveness[115]. - The company relies on its reputation in the marketplace, which is critical for customer engagement and retention[121]. Regulatory and Compliance Risks - Compliance with various international laws and regulations requires significant resources, and non-compliance could result in severe penalties[101]. - The company is vulnerable to legislative changes regarding offshore outsourcing, which could adversely impact its ability to deploy employees and conduct business[99]. - The company is subject to various data protection regulations, including GDPR and California privacy laws, which impose significant compliance costs and risks[135]. - Changes in privacy regulations may increase operational complexity and costs, impacting service delivery and customer relationships[136]. Financial and Operational Risks - The company has cash in banks in countries with unstable banking systems, which could lead to liquidity issues and impact financial operations[90]. - The effective tax rate may be impacted by changes in tax laws and audits, potentially affecting profitability and operational results[143]. - The company may require additional capital for growth, and failure to secure favorable financing could limit business development[140]. - The stock price is volatile, influenced by financial results and market conditions, which could significantly affect future operating results[138]. - The company faces counterparty default risk in its hedging program, which could lead to significant losses during economic downturns[141]. Cybersecurity and Information Security - The company has experienced cyberattacks in the past and anticipates ongoing threats, necessitating continuous investment in information security measures[132]. - Security breaches could lead to legal claims, regulatory penalties, and a loss of customer confidence, adversely affecting business and revenues[132]. - The cost of implementing information security measures may reduce profitability and lead to reputational harm if vulnerabilities are perceived[134]. Strategic and Operational Challenges - A long selling and implementation cycle for services may result in significant resource commitments before realizing revenues, potentially affecting revenue growth[112]. - The company may need to make substantial investments to adapt to shifting customer demands for new services and technologies[108]. - Disruptions in IT infrastructure could materially affect the company's service model and lead to revenue reductions[120]. - The focus on environmental, social, and governance (ESG) topics may result in increased operational costs and reputational risks if commitments are not met[96]. - The company benefits from tax exemptions in Belarus until 2049, but changes in tax policies could significantly increase operating expenses and affect financial results[97]. - Intellectual property rights may not be adequately protected, exposing the company to risks of unauthorized use and potential infringement claims[123]. - The company may face significant costs and management distraction from defending against intellectual property infringement claims[126]. - The company's future performance is subject to various risks and uncertainties, including geopolitical tensions and economic instability, which could materially affect its operations[14]. - Natural disasters and geopolitical events may disrupt operations and customer spending, adversely affecting financial results[142].

Financial Data and Key Metrics Changes - In Q4, the company generated revenues of $1.23 billion, reflecting an 11.2% year-over-year increase on a reported basis and 14.4% in constant currency terms [41] - GAAP income from operations was $573 million, an increase of 5.7% year-over-year, representing 11.9% of revenue [3] - Non-GAAP income from operations was $818 million, a 20.6% increase over the prior year, representing 17% of revenue [3] - Diluted earnings per share on a GAAP basis was $2.61, while non-GAAP diluted EPS was $2.93, reflecting a 6.2% growth over the same quarter in 2021 [65] Business Line Data and Key Metrics Changes - Financial services grew 2.4%, with strong growth from asset management and insurance; excluding Russian customer revenues, growth would have been 17.8% [2] - Software and Hi-Tech grew 10.3% in the quarter, reflecting a reduction in revenue from a previously top 20 customer [2] - Travel and consumer grew 16%, driven by strong growth in travel and hospitality, while life sciences and healthcare grew 11.5% [42][43] Market Data and Key Metrics Changes - The Americas, representing 59% of Q4 revenues, grew 14.7% year-over-year; EMEA, representing 37%, grew 18% year-over-year [1] - CEE contracted 71.8% year-over-year due to the exit from the Russian market, while APAC was flat year-over-year but grew 3.8% in constant currency [1] - Revenues from top 20 clients grew 8% year-over-year, while revenues from clients outside the top 20 grew 13% [1] Company Strategy and Development Direction - The company expects a lower level of revenue in Q1, indicating a slower start to the 2023 fiscal year, but anticipates stronger demand in the second half of 2023 [4] - The company plans to focus on stabilizing global operations and investing in new talent and capabilities while maintaining a strong engineering DNA [35] - The guidance for 2023 includes at least 9% revenue growth on both a reported and constant currency basis, with a return to double-digit growth in the second half of the year [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted signs of moderation in demand, including delays in decision-making and increased scrutiny on budgets, particularly in the retail and consumer goods sectors [12] - The company believes the current slowdown in demand will be temporary, with expectations of a return to growth as new players enter the market with technology-led solutions [34] - Management expressed confidence in returning to a 20% plus organic growth rate in the next several quarters and achieving a $10 billion revenue target in the coming years [38] Other Important Information - The company has committed approximately $100 million for humanitarian efforts to support Ukrainian employees, with $45 million spent through December 31, 2022 [20] - A share repurchase program has been approved, allowing the company to buy back up to $500 million of its common stock over the next 24 months [45] Q&A Session Summary Question: What is the status of clients moving workloads off EPAM? - Management indicated that some clients preemptively decided to explore alternative vendors due to uncertainty about EPAM's ability to navigate disruptions, but they have not lost significant clients [24][26] Question: How does the company plan to revive the business pipeline? - The company is focusing on stabilizing delivery and investing in customer relationships, with expectations of increased demand in the second half of 2023 [31][37] Question: What are the expectations for revenue growth in 2023? - Management expects first half revenue growth to be in the single digits, returning to double-digit growth in the second half, with Q4 potentially seeing high teens growth [15][30] Question: How will margins be affected in 2023? - Margins are expected to be lower in the first half due to reduced demand, with improvements anticipated in the second half as revenue grows [76][88]

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 ...