EPAM - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to EPAM Systems Second Quarter 2018 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, David Straube, Head of Investor Relations.

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 second quarter 2018 results.

a available not, the epam.com have section. Investors you copy at is in If are CEO Arkadiy Jason today me With Dobkin, Financial Peterson, and Officer. Chief and President;

the remind Before SEC forward-looking contain filings. release described statements risks that like in begin, to These on to subject uncertainties we some call I’d statements. of and and comments are may the made today’s earnings you as company’s

are our non-GAAP and all earnings measures the been will Additionally, results Ark. references the GAAP in reported now to reconciled our that in are located that available of website. QX to materials to turn section said, over have Investor call With I

Arkadiy Dobkin

David, you, joining good for Thanks us. Thank morning, and everyone.

revenues with Let XX.X% a XX.X% constant growth reflecting few in me or quarter year-over-year a terms. begin with $XXX.X of currency We million, highlights. delivered financial strong second

Our of was all geographically our and industry revenue across broad-based, growth both verticals.

represents $X.XX, from In QX per share addition, of XXXX. strong earnings we XX% growth non-GAAP which delivered of

a across with you provide brief dimensions me the of business. update Let our key

Looking we RPA, of IoT. offerings talked with which areas development offerings. focus to and intelligent programs in be about Last and digital continues connected of quarter, at digital transformation our our across accelerated enriching machine key and learning capabilities automation, our capabilities platforms,

strengthening Additionally, as innovation our offerings expanding design with consultancy we also and ecosystems our product well talked thinking new around close software-controlled physical about horizons with as connectivity skills. into business

well QX, relevant overall initiatives because to delivery by an different in some and value to the numerous approach. continued we couple of at disciplines aspiration about levels, consulting to as mainstream are highlights we types areas Finally, A illustrate. adoption those new of new and focus clients. number for wins of of our large our solutions potentially cross-functional a result, the significantly starting and as on business, engagements offerings, broader integrate, technology to In of build capabilities such EPAM talked results in deals as see we triggered to into of our our a elevate across experience

involved we across based more have for efforts industries. proof-of-concept-type sizable automation engagements evolved RPA were some many those While technologies, sometime projects into intelligent much several complex of in and on

in case of outcome benefits new any intelligent the our critical work practical bring by As and companies. close insurance to realities key approach, platforms specific engineering achievable This or maturity risks results. understanding difference reaching coordination implementation goals organization, and is this functionality in within time complete environments, of given the we for of corporate of predict potential largest of a very together and the doing are and is teams, of the automation, to actual setting desired frame mean can the between in the is world’s failure. to one we offering a minimize where better built example value between started consulting An and emerging working

other As demonstrated with in traditional we we many cases, strengths. an where engineering engagement started our

the client a in early a and what automation needed well-integrated accomplish. and at entire through business bring However, actually our we that able end-to-end engagement capabilities practical to effort this on assessment could were demonstrated expand deliver that consulting to fashion. efficiently We into comprehensive we very value of time,

costs and bring client success. serving an where engagement our analytical pricing, we another developing larger solution currently the result, consumer into in revenue area for demonstrate brand similar of learning, packaged customer productivity to engagements In efficiency probability much As and natural of while of planogram scientists innovation started helping initiative was and a part types new improving data goods to These techniques improve customer data brands, very turned utilizing machine optimal several an based management largest to via experience execution. multiple and on supply automation build recognition chain, efforts, the the become multidisciplinary and engineers language level which to image through of bring ability a and with teams coordinated other can integrated our the consultants. in the we efforts are many one value much case, and real and of designers we reduce teams in new, customers areas and engineers, areas higher their solutions achieve of our to business goals and help

bring major much So of while a critical deliver, we very software we just is built services that. component more and well-designed and than the now

more professionals and Moving of over and people quarter delivery development. capability net XXX XX% ended engagement our with a QX. year-over-year production during We the to a increase than addition XX,XXX professionals,

employees. headcount ended total Our at XX,XXX more than

full-cycle of expanded example of R&D customer of center our platforms and As to our that goal engineering This investment we people our for capabilities the around with quarter, building would June, development strong I new our programs ranging highlights relevant a share from operations a facility training, and the experimentation. is good commercial continued network our delivery centers digital in globe. to center. of one the product designed of and to The technical enable the development Hyderabad in state-of-the-art opening digital high-quality and is innovative advanced in like

for the very effort to we to take we appears confident a right before. meet Despite need continue of that, to the our what strong instances, level As do also to locations, we than are year across in or that new APAC. as areas, remain Eastern be able their of and we used like to talent to we done us near requires make In to regions and investments EPAM. and be some learn we different would across to to may what retain we the that will the continue I this against key ability more bring locations clients and of grow, demands. at markets Union, employees develop within we Central do also as and the other of investing respond existing to to Europe in to demand balance with to is right share attract, in European longer

themes Turning in The quarter. to We the my which the the and of Services, insights our grew vertical, largest increased finished drivers Consumer updates. remain quarter we Rounding client efficiencies already of focus and development customer broad-based as an out growth the growth the second machine XX% and in our had Financial Travel industry across second on transformation, artificial today, engagement, year-over-year. the industries comments and growth deeper very product In driving quarter include, serve, consistent on market intelligence, results. through XX%. digital shared verticals and learning analytics. we with

emerging growth, clients driven And Business XX% sectors. from engineering, posted information energy Software primarily delivered media & and Life Healthcare lastly, Science verticals industrial XX%. XX% by our grew growth. & and Hi-Tech grew approximately automotive XX%.

In same client to across XX clients was year. the the approximately continue and We to our top approximately second diversify by quarter, our clients types in growth compared XX% and our was of XX% industry, engagements. quarter XX geography growth top portfolio outside last

it we With top bring update. detailed to portfolio financial to the and over that, turn that clients Global existing While significantly let remind our XXX of today our provide Jason close for to worthwhile within opportunity XX% logos are grow to new continue among customer it’s well. a our us significant to as me client list, great to Forbes to XXXX

Jason Peterson

and and per morning, second delivered some cash for and top I’ll Ark, then fiscal our and on we XXXX In exceeded start line and very quarter, guidance QX. grew about everyone. Thank good end highlights performance, with profitability financial you, earnings the flow expectations strong talk profitability, share.

XX.X% million revenue XX.X% down would foreign of XX.X% the rate the move we of XX.X% in reflecting CIS, reflected QX non-USD SG&A QX quarter are gross revenues, guidance or year. in of to to same the our to currency. of favorable QX $XXX.X largest XX.X% QX approximately The currency. a finally, grew in less constant our May. year-over-year as XX.X% at of XX% constant and a perspective, APAC We at higher a variable and And was Non-GAAP compensation quarter than statement, few in XX.X% compared revenues, primarily currency constant last constant key last same million, approximately QX came now for GAAP utilization quarter. of benefit revenues. from been representing our gross a gross representing the when year-over-year reported revenue our was lower geographic QX for set our in XX.X% same of year-over-year in exchange to or and in by representing driven a year. quarter guidance, currency the in or non-GAAP Here accrued grew currency last level income last currency. our rates constant in XX.X% Europe, compared XX.X% this margin of XX.X% XX.X% than XX.X% highlights growth XX% North compared revenue was of in year. Applying the X.X% revenue was lower grew year, margin growth XX.X% higher the used last of our the of year-over-year foreign QX expected America, From SG&A the impact our XX.X% revenues, GAAP the to year. compared period X.X% decline represents revenues of we have terms. XX.X% grew in X%, for QX margin compared to region, quarter. exchange In $X Revenue closed in X% impact quarter, those

continue revenue the or XX.X% to of XX.X% we operations quarter have SG&A income quarter QX $XX.X of million million income million manage our and operations in closely dollar in achieved $XX.X We to was we’ll last compared or are terms pleased of from efficiency SG&A revenue million of from QX of year. with $XX.X revenue year. compared to a revenue in and in of as last spend, the in the in revenues. GAAP $XX.X percentage both or was XX% Non-GAAP XX.X% or

rate excess of benefit tax a option came includes quarter stock of in exercises vesting $X.X impact and at stock which units. million to effective GAAP related the restricted Our XX%, in the tax

excludes fiscal Our the was in $X.XX, QX. there outstanding. share and excess non-GAAP XX.X% XX.X XX.X% was quarter the year XX.X% In tax to XX% same which XXXX. shares XX.X% last GAAP rate, benefit quarter and approximately increase, approximately a compared XX%. in adjustments, QX, was same and non-GAAP was in basis earnings per million a and respectively, effective EPS on diluted Utilization $X.XX reflecting Diluted other were over the

flat Cash was compared operations million in $XX.X the to flow balance year. quarter the cash $XX.X compared fiscal flow to same QX last the from days $XX.X was days at Turning Free same sheet. cash for year. XX and the same million XX last quarter our in XXXX to last compared year. was QX $XX.X in quarter and million of DSO million end to flow

total on the XXs. performance our DSO We focus managing in low continue to

now is be Turning to the expected in least least strength growth fiscal factoring with the foreign Revenue continues growth now XXXX, of to dollar, guidance. U.S. Starting updated constant-currency at when basis XX%. on X%. reported an exchange with be of to impact at positive revenue a XX%

full year As a from revenue outlook reminder, a reflects our revenues. X% approximately inorganic contribution

income income from We XX% of operations in XX%. from the range operations GAAP to the be to continue to non-GAAP expect XX% in to range of and to to XX% be continue

We response expect in efforts GAAP U.S. be our reflects legislation. rate planning reform approximately now to X%, tax tax effective to which the our tax

We expect approximately tax to XX%. rate to effective our be non-GAAP continue

XX.X average we at non-GAAP For outstanding. for at for share year. be EPS to the diluted EPS fully full the of We and year to our per weighted $X.XX now $X.XX share, continue expect count least diluted earnings diluted will shares least now GAAP full million expect be

$XXX growth factoring in in a For XX% rate reflecting reported revenues impact. QX constant of and ‘XX, X% exchange least be million, FY estimated approximately XX% currency at will approximately of foreign after unfavorable a

expect income range the third we operations to the from XX% XX%. income XX% and in XX% of be GAAP to of to in For range non-GAAP quarter, be to from operations the

approximately tax effective be effective and to XX% non-GAAP GAAP our rate XX%. tax expect be We rate approximately to

$X.XX $X.XX earnings per quarter. at For will for EPS least for we will quarter EPS at diluted share, the non-GAAP GAAP be expect the be least and

average of XX.X million share weighted diluted a outstanding. expect We fully count shares

remaining now each is each is in million non-GAAP and to The million measurements. in $XX.X million year. is fiscal in key impact remaining approximately now a compensation now to adjustments foreign non-GAAP support expected $X.X quarter. $X.X each QX. exchange Amortization be effective intangibles QX for expense $X.X expected be million assumptions few to Stock in which around million GAAP expected Finally, $XX.X to approximately be to our The of quarter be loss expected the quarter. in remaining tax is approximately

quarter summary, $X.X expect QX. our In results, and are we in geographies. our first excess which verticals $X Lastly, tax now we strong, pleased be and with benefits to half around reflect second growth QX million million in and across broad-based XXXX

for in let’s positions positioning the for in up questions. us with continued fundamentals, our the solid Our that, well growth market, call fiscal combined open With XXXX. unique

Operator

Nolan first [Operator Please question Blair. Our Instructions] is proceed. with from Maggie William

Maggie Nolan

you solutions, a especially about little I a mix time how a should see little of And pricing contract-type these the in automation these bit as hoping you’re to over intelligent talk changes that some result was could horizontal are more more of your expect solutions? nature? we more of in ones then

Arkadiy Dobkin

to what So the pricing time on potential time, at and be still consultant, assess between each and would and this part. return when area material, client. everybody we pretty it’s engineering involve new mixed project is specifically fixed we’re and for the cost relate to But a trying that same

and approach right the hope, and clear are headcount at winning headcount, reduction. actually cost I vendors this on So as point mixed both I now it’s a think still. a it’s But clients said, –

Maggie Nolan

say markets are markets, what some And then there? steps to new then you to looking taking Great. Okay. did develop expand? you labor? labor if And for what when you’re you geographies traction And gain enter hoping do so, you or to new are

Arkadiy Dobkin

new looking are because big traditional in we the Europe of kind of So do that work Eastern meaning believe our in this in we’re markets the markets not locations. already of we

We are in India.

are China. open these markets expand open which way some markets we inorganic – as the these know, in locations We But you in are new large for regions as – and we we’ll of we and pretty of well. in always

Operator

Our next with Please Kantor from Company. proceed. is Avishai and question Cowen

Avishai Kantor

critical consulting the opportunities? skills maintain practice with you strategic partnerships perspective, considering for ventures those are or From you it’s to for in-house? consultants you loan joint front-end extended think Or

Arkadiy Dobkin

same and to On build have partnership inside specific sync At total design that capability of or to we’re integration this, achieve open other benefits opportunities, believe specific the solution do of it’s any company. to because important time, and of starting of important type these the the – parts the consulting we project engineering level clearly versus is with of for of the or this EPAM critically firms. it to capabilities for inside

Avishai Kantor

adding opportunities M&A on on going transformation then versus expertise? And are domain skills what forward, your vertical thoughts or digital

Arkadiy Dobkin

So an the open we again, areas, specific way additions. skills locations. where very you this digital to and the five, we’re it’s which I still have during were in same for add like mentioned, this last The in to we in we we’re, fill such adding nature. in looking still other transformation six aggressively gaps organic think years, important like enough same through specific organic grow M&As, And

Operator

Our from next Please proceed. with is Grossman Stifel. David question

David Grossman

missed number, I utilization to Just one give please? that clarification. Could the you again, me, Jason.

Jason Peterson

is Yes. quarter. Utilization number in XX% the

David Grossman

Okay.

sequentially? flat So

Jason Peterson

QX, QX. in QX of part QX bit to to that’s from what the improvement little A improvement drove an from gross and margin in the

David Grossman

Okay.

of mentioned is I So utilization. that a it since just margin lower year-over-year couple a think basis, can items you – gross up brought – you the margin, I on and you the know impacted

that to I was can just XX within accrued maybe know relatively think levels. dynamic but gross the there on comp. down still these it utilization it higher some you’re higher at you’re year-over-year, high year well. the close other you and quarter they’re down going last driving margin I March curious, rates, were down? I’m in – Is as But maybe

Jason Peterson

the that think surface, about. pretty utilization it’s the the accrued on in I talked we much compensation numbers

of we’ve and between there QX pretty and variable got and an high of of of the so QX XXXX. was And at is a level And last then significant so QX extremely decline utilization year XX.X%, margin XXXX see half expect between And QX we about. comp piece, year. XXXX. to that talked margin We of this what did second improve in we’ve gross in improvement is of gross continued QX which the

first look you’ll of continue And improvement. adjusted from think if standpoint as noted, versus gross up is I at So I’m half profitability you XXXX. you’ve actually the margin XXXX the see an first to of IFO half sure,

see throughout in the improvement And much able is feel XX%. of so I year. to margin still we’re very gross what manage the think XX% you’ll like And we remainder the to within

David Grossman

in of drives And the gross half year? margin what higher the back the

Jason Peterson

Yes.

be So QX X utilization got summertime. level will effects. in One due QX, and a you’ll of just that lower to vacations sort in have seasonal you’ve

for you And every so that’s something year that us. see

have pricing average in what the we’re do where then we’ve of do us you’ll environment customers, improvement to customers on bill to same across seeing we’ve think more a And we work time, margin. there’s net broad You increases. about that so – then positive At continue days of impact I as increase. average is the the the up, though improvement still the gross range on in significant annual that past And about, an rate is talked in QX. is the utilization see in talked actually rates getting number or are

David Grossman

that think margin that services an requirement Right. there’s the delivering locally. all? be of and And to the I market at increased pressing Ark Is demand mentioned

Jason Peterson

in onsite/offshore hasn’t significant There Yes. been the a shift ratio.

So shift. it’s a just modest very

no. us so about wouldn’t we intentional. of rapidly. of level We where that of the last any are What driver. the high really down continue year seeing be that And was is you’re taking opportunity to ran now. and talked delta right At utilization we And kind time, between to utilization the this sort allow grow to just

David Grossman

coming you’ve Do number Right. to existing clients. much is from given guess the how And new number? a versus that in I characterizes happen past, you that us the base growth have

Jason Peterson

Yes. We’ve got that.

which revenants, XX% from are XX began it XX%, it’s revenue of with we’ve call, what last customer that existing XX% the months; base. with about consistent the – and customers coming – in it would XX% new generating talked and so that we And from, that

Operator

Friedman proceed. with from Please is question Jamie Susquehanna. next Our

Jamie Friedman

follow the year-over-year, just growing to with test that the headcount I’m the too the a here. morning, blunt – is David’s. my slower just so to the like revenue. wanted good question Is utilization basically, for your is here, patience I rising. pricing good Jason, but it looks down than bit is see bit. quarter Hi, up trying is a to fixed Not price up get but – conclusion? is a I

Jason Peterson

– a the we probably back inside it be be answer there’ll – would probably and that. There’s – Yes. they’re okay. sort two peeled of so yes, layer, factors probably I

set with the in and last shift at lot time, discussed rates across a seeing the we rate of then are towards the half. customer of first is same an we there’s A in the in as base. slight So David that average on-site on our questions, increase come increases in, do our

the sort got increases kind up of employee. shift revenue also and on-site, combination the you’ve rate of which so And of per would the subtle actual then towards push

Jamie Friedman

it. Got

there new increase in And to you’re XXX is slight I a know question something price. or difference, is huge first read the not was offerings. some else? not looking It’s this basis there way how Okay. then fixed at it’s But but any pricing sheet, a Is fact of I’m the – it is about that points. about the that? just into

Jason Peterson

time You’re But do this continue from price pricing we’re time, not we’ll over substantially seeing the and to fixed still a at explore. I time T&M. and a think shift in significant materials standpoint. business in versus someday

Operator

question from proceed. with next Arvind Our KeyBanc. is Ramnani Please

Arvind Ramnani

year? do do expectations what characterize you at beginning to And today you also of the how I kind How just about environment? versus environment environment. characterize demand competitive demand were ask the of the the wanted the

Arkadiy Dobkin

a traditional Probably, answer.

about other see structurally automation past. changes it’s on than were concept, that’s of the whole difficult seeing talking demand large are comparison potentially Again, strong relatively because very why kind But faster assess that us in in to it’s was market we we’re in to the small We’re and very some might specifically area, similar for RPAs, engagements, proof offerings. our all and of first the our it’s to There intelligent, we stable what competitors. and demand grow across our parts. still

in we say changes again, competition, are general, I don’t So And the there of aspects with things. consistent offerings. a would the some significant change. from probably same – see I pretty But in other it’s smaller any – don’t past. competitors’ this

Arvind Ramnani

these – look months? some the your increased spend Great. emerging emerging of things automation, it how if – but be R&D kind you touched you at – such even that on of to when there AI you not of And like – upon over the you or are may technologies, appetite or automation, expecting other like for technologies end or but the next XX kind revenue, look maybe when is look kind develop at your the investments to is – back as you amount blockchain, at – going impacting what in XX is capabilities, of

Arkadiy Dobkin

specific investments also including their of many automation business, cases, clients As opportunity this companies. with [indiscernible] exposed building new were cases, trends experimenting. be to And before, go we’re for talking have our where doing are our we And together advantage some we past. we’re engagements. new our for we almost in software part doing many to we these to solutions. mentioned clients part our do and in pretty intelligent because internal the applications. But artificial of believe of type in of actually an then technologies, it’s RPAs of our have XX% systems these and we consistently business, And about We have technology opportunity service and we delivery software and as to

helping advantage, because tried us continue to that the help we explain right market. So serve we before will future to we it now type this I of it’s we hope this and think of part and the have in strategically

Operator

Bank is question Kupferberg America of with Our from Jason Merrill Lynch. next

Unidentified Analyst

is Jason. This [ph] Avon for Brandon on

in to banks? at your what you’re call broadly in notable seeing more maybe large talk the quarter? of relative there a And how services Just wanted expectations terms out? spending to to get Is financial of anything sense the was about

Jason Peterson

Yes.

our So growth very in Financial we a continue strong Services practice. to

bit from So of you see, little we’re a acquisitions. over get benefit did XX%. our We

in out, the approaching high XX% So very we’re if to were that XXs. still sort of strip we

other anything digital technologies kind from management drive want do transformation to wealth more platform space? – the Financial have may else to continue you have know, We – I don’t you experience our the really and us. beneficial say and to about been has Services of in Ark, revenues

Arkadiy Dobkin

don’t there changes. specific I again, any think is,

with or of we more digital smaller clients This on established type the – but transformation the but allow applications At clients. We’re vendors, in digital us – specific in same to working growing. platform. some financial working established is we’re will space, probably time, involved fintech with we’re continue

us So well. to opportunity it’s grow continuously as giving

Jason Peterson

So significant continue know don’t I if to space. the demand see has we changed, but our in quite demand

Unidentified Analyst

helpful. curious be just as a that from perspective. Great. now That’s could on a your the XQ? follow-up. you – was recent – big is headwind that Obviously, half, will a really in I and on the FX the be And just called EPS back has and how XQ headwinds revenue FX out

Jason Peterson

a good That’s question.

actually hedged. we’re well So pretty

between which are those. are got degree the We’ve U.S. notionally And there. Ukraine expense correlation the in of the we so and salaries primarily – driven find of which and Hungarian we’ve so volatility the in got you in Europe, We’ve and we’ve currencies, Belarus, don’t always a sort that in in in Polish revenues the euro got kind pound there’s dollars hedge. the had some actually, zloty, between forint. currencies – see In of natural

some our centers. of strengthens, from then ruble. also dollar European hedged U.S. you delivery decline you Central costs less revenue in see perspective, a but also a when generally we’ve the euro may So in And see the

have but where – I a we’re modest position negative dollar see even a in rate, – that you on what impact reported is it impact, strengthens, is reported so slight revenue it growth right has as an what do And impact or tends to the on very a revenue only EPS. again, and now

Operator

Our next Please is SunTrust. Frank Atkins from with question proceed.

Frank Atkins

Thank about What’s you the vertical. ask I Life Science there? my Healthcare first some driving & for strength the question. of taking to wanted

Arkadiy Dobkin

the one quarter. of specific verticals for impact Yes. before X We clients or X mentioned that changes smallest of us And still. it’s might kind

X And clients. company in now back before, slowdown it’s practically right to have versus we’re there. line I coming X the in think we with normal some growth or

we the of growing So be with would more in EPAM. hope line growth overall it

Frank Atkins

talent then And bit What That’s quarter-over-quarter Okay. talent? the attract and retain you’re helpful. there in about on any were a can a environment? attrition little doing basis? And talk to changes you

Arkadiy Dobkin

probably Attrition, right ago I general, now. for to our this and consistent permanent is Environment keeping last difficult sequentially hiring In four up year It’s think in talent line with this – a last and year talent question. again as well. years bit. and last was answer and is very and quarter little it three,

don’t magic we trainings, invest I time, same grow of to ever the the think any easier. basically, be going At feel looking for that people there continuously So it’s And is in we to here. better education, company for don’t opportunities inside in.

So that’s continuous really a we’re effort which committed do. to

Operator

proceed. question next Our VTB Please is from Vladimir Capital. Bespalov with

Vladimir Bespalov

from Or EBIT the I in compared slowdown quarter. what people – office, office. is the anything not people far bit. so little to but as hiring but built pretty following to is current small, presence this Alliance acquisition people? fits Services X,XXX in could APAC could Global this the region, of There capacity driven – And your I which on From you quarter Europe hire to else question is still some this? the there of more going the Is a growing it’s your strategy in it develop reflected up X,XXX good? were the Are revenues. first have elaborate saw numbers you breakdown is I Hyderabad second question as your in or like on – behind I on FX second first is in your geographic think to My of your saw and how if see. I Maybe this India

Arkadiy Dobkin

Okay.

was attributed start clearly to to new Hyderabad. for to a to these EPAM, lot moved we we a years, We location. years. well new lot. we our we And me was, able from The it’s to learned actually belief the year, it operating headcount us flat the several of and maintained from bringing third learning last like would our and in And Let And we’re a different for in locations India which a experience India. because very order, built for have culture, are be that decision we in practically grow was in region. during again, move engineering

investment. Now, from comfortable more we’re would be to we benefit that much our able

So we’re services, move good grow allow the deliver location the years. to would which very several the because And review to clients where this of we on with there. regions quality the careful the us from started to next significant

Jason to So on pass yes, Europe, here. it I’ll

Jason Peterson

No, with I Europe pleased think the also we’re the demand in still very growth. pleased and environment with

with I you growth rates dollar negative on strengthening did a does the have see think impact in Europe. the the U.S. largely what that of

so tends to demand. And continued strong now, environment right the have there

don’t growth so I slower there. away think from somewhat And take the rate to there’s anything

Operator

[Operator next with Please is Fitzgerald. proceed. question Foresi from Cantor Instructions] Our Joseph

Mike Reid

Mike Reid is for on Joe. This

Continuum then how Just the integration, on the going. from wondering the impact quarter what detail that’s to a was and maybe little

Jason Peterson

Yes.

And ask. so points. answer two probably, question a that didn’t you I’ll

only So had our revenue about two revenue QX – we weeks results. in of of Continuum

about how XX integration you little the year. Continuum and sequential because they’re bump you do from the at of having sort growth in coming Continuum. And so Continuum get X% to want weeks for – full growth Continuum And of a the is are just a talk of consistent things bit going that’s do Ark, with acquisition? kind and about Then fiscal is

Arkadiy Dobkin

after too we’re – do after – only Like months X conclusions. XX very clearly, together. of we started Sure. little do in to opportunities, plus we It’s interesting see number this. And bit early of even a go months, which it’s just any but usually to probably a

capabilities clients We point From Continuum presenting exposure some this have Continuum. good of came originally thinking now. smaller base from EPAM client and right starting view, already we’re opposite a growth even to to services pretty client projects which of and

Mike Reid

then And working you the partnering you’re automation with if And in providers you Great. so, Okay. named have are implementation? who with?

Arkadiy Dobkin

In what implementation?

Mike Reid

or RPA Automation, of the... any

Arkadiy Dobkin

Prism story like It’s big vendors. We like specifically, some don’t vendors in e-commerce other same or – other basically, anybody WorkFusion. RPA, or we engagements, but with the like other Anywhere Blue partner the of it with on exactly we’re specific with data, any of Automation providers working some the same be platforms exception in could on or implementations

Operator

question Please Avishai next Our with proceed. from Kantor and is Cowen Company.

Avishai Kantor

you a one specific the not may for quick Is of your significantly talk from clients? revenues have have it I’m it, it couple If Is – really clients? been about can I accelerated me, trends follow-up. this a missed X I client? quarter. have top within but mistaken,

Jason Peterson

the I clients the see got continue could is mean, think what it continue is we’ve certainly, that story, of concentration told we’re to established new our And from improve. I customers quite new in that to well. getting of rapidly. a to from which the getting see But in we’re a addition I – – – as growth large, our to past growth nice top the lot we from that you But certainly, standpoint, our think, top had same logos. you at same clients customers we’ve our grow growth we some time, many from

Operator

Dobkin closing the for gentlemen, I and back end remarks. session. the to we Arkadiy to of have our question-and-answer reached Ladies call turn like would

Arkadiy Dobkin

growing everybody, the strong you, quarter results, continue FX it of within thank was despite we – be from participating. for influences promises that And with do and we shared We do some like before. believe we Thank will you. believe

and thank So much, next very quarter. you see you

Operator

This concludes you. today’s Thank conference.

and at for disconnect thank may lines you your time, your this You participation.

EPAM Systems (EPAM) 4 Aug 182018 Q2 Earnings call transcript