EPAM Systems
Q2 2023 Earnings Call
Aug 03, 2023, 8:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day, and thank you for standing by. Welcome to the EPAM Systems second-quarter 2023 earnings conference call. At this time, all participants on a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.
[Operator instructions] Please be advised that today's conference is being recorded. And I would now like to hand the conference over to your speaker today, David Straube, head of investor relations. Sir, please go ahead.
David Straube -- Head of Investor Relations
Thank you, operator, and good morning, everyone. By now, you should have received a copy of the earnings release for the company's second-quarter 2023 results. If you have not, a copy is available on epam.com in the Investors section. With me on today's call are Arkadiy Dobkin, CEO and president; and Jason Peterson, chief financial officer.
I'd like to remind those listening to some of our comments made on today's call may contain forward-looking statements. These statements are subject to risks 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 the comparable GAAP measures and are available in our quarterly earnings materials located in the Investors section of our website. With that said, I'll now turn the call over to Ark.
Ark Dobkin -- President and Chief Executive Officer
Thank you, Dave, and good morning, everyone. Before I get into results of our second quarter, I would like to spend a few minutes on the mid-quarter update we provided in June. As I shared in my prepared remarks, the broader concerns over the economy led to a shift in demand dynamics for our sector. For EPAM, the shift has been much more pronounced due to the geopolitical impact on our delivery centers and our focus on the build and digital product engineering segments of the market, which represents about 80%, 85% of our engagement portfolio.
This was especially evident in the technology vertical, which continues to be impacted by the pullback and spend after years of strong investments in digital and product development efforts while being spread broader across other industry segments as well. Over the last quarters, we have also seen this impact in some of our largest clients, as they have held back for direct spending from new build programs to the economic conditions and caution in their businesses. This factor has contributed to a high percentage of our shortfall over the first half of 2023. Now, I'll switch to Q3 and the rest of 2023.