EPAM Systems (EPAM) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 5, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day and thank you for standing by. Welcome to the EPAM Systems First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today David Straube, Head of Investor Relations. Please go ahead.

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 first 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 that 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 measure 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.

Arkadiy Dobkin

Thank you, David. Thank you for joining us today. Three months ago, we shared some details of what we are thinking about 2023 and how we saw the main factors and trends driving our performance during the year. As you will recall, we anticipated some level of market slowdown in general demand, but we are not certain of the impact level of this slowdown in our own portfolio yet. We also saw that some of our customers were mitigated the risk exposure due to the war in Ukraine and we are showing signs of managing those risk by [indiscernible] and work streams to some other partners.

With the understanding of all of that, we were proactively investing in building scalable quality delivery locations outside of our traditional comfort zone to consistently delivering comparable engineering quality across all of our growing global delivery markets. And we also said that we were expecting to continuously optimize operations across our global delivery locations to bring the cost structure back to our traditional metrics in near and medium time frame. And despite a number of EPAM specific challenges, we believe that the market for our services continues to be strong and our proposition remains extremely relevant so we were broadly expecting a general uplift in demand going into the second half of 2023.