With high customer satisfaction scores and significant leads above competitors and market averages, EPAM has differentiated itself as a top IT service provider in the European IT sourcing marketNEWTOWN, Pa., Feb. 5, 2024 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced it has been named a Top IT Sourcing Vendor in Europe, earning recognition for exceptional client satisfaction and strong category performance rankings ...

Company Initiatives - EPAM announced $100 million of humanitarian support for its Ukrainian employees and their families[1] - EPAM is now in more than 50 countries as part of its global diversification efforts[1] Market Overview - The Enterprise IT Services Market is estimated to be a $1.8 Trillion+ Total Addressable Market for 2026[6] - The market includes segments like Consulting ($347B), Infrastructure as a Service (IaaS) ($401B), and Application Implementation & Managed Services ($309B)[3] Financial Performance & Positioning - EPAM's 2022 revenues reached $4.825B[56] - EPAM is positioned in the dynamic subset of the Consult and Build Services Market, including expanded coverage in Cloud, Consulting and Security[16] - EPAM's Q3 2023 revenues from the CEE region were $4M, a decrease of 66.4% year-over-year[48] - EPAM's Q3 2023 revenues from the EMEA region were $446M, reflecting a 1.8% increase year-over-year[48] - EPAM's Q3 2023 revenues from the Americas were $247M, a decrease of 3.3% year-over-year[72] - EPAM's Q3 2023 revenues from APAC were $25M, a decrease of 20.2% year-over-year[48] - Financial Services revenue in Q3 2023 was $677M, a decrease of 9.3% year-over-year[49] - Emerging Software & Hi-tech revenue in Q3 2023 was $160M, reflecting 8.5% year-over-year growth[57] - Life Sciences & Healthcare revenue in Q3 2023 was $174M, a decrease of 15.1% year-over-year[57] - Travel & Consumer revenue in Q3 2023 was $124M, a decrease of 4.2% year-over-year[57] - Business Information & Media revenue in Q3 2023 was $263M, a decrease of 6.2% year-over-year[57]

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, 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 incorp ...

EPAM Systems, Inc. (NYSE:EPAM) Q2 2023 Earnings Conference Call August 3, 2023 8:00 AM ET Company Participants David Straube - Head, Investor Relations Arkadiy Dobkin - President and CEO Jason Peterson - Chief Financial Officer Conference Call Participants Bryan Bergin - TD Cowen Tyler DuPont - Bank of America David Grossman - Stifel Maggie Nolan - William Blair Ramsey El-Assal - Barclays Moshe Katri - Wedbush Securities Puneet Jain - JPMorgan Arvind Ramnani - Piper Sandler Operator Good day and thank you f ...

☒ 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]