Epam Systems, Inc. · NYSE:EPAM
Epam Systems — Q3 2024 Earnings Presentation
32 slides from Epam Systems's earnings presentation, Nov 7, 2024
Slide 1: Investor Presentation
Investor Presentation AUGUST 2024 EPAM Proprietary & Confidential.
Slide 2: Safe Harbor Statement
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 ma
Slide 3: Contents
Contents 01 Who We Are 02 The EPAM Story 4 7 03 Our Positioning 10 04 Market Trends 12 05 Who We Serve 14 06 How We Do It 16 07 Artificial Intelligence 19 08 Corporate Responsibility & Recognitions 26 09 Investment Highlights 29 EPAM Proprietary & Confidential. 3
Slide 4: Who We Are
01 Who We Are EPAM Proprietary & Confidential. 4
Slide 5: About EPAM
About EPAM We are consultants, designers, engineers, architects and trainers who enable our clients to be competitive and disruptive in the marketplace through innovative technology solutions, while helping them to successfully navigate through multiple waves of technology and social change. We help
Slide 6: EPAM Fast Facts – Q2 2024
EPAM Fast Facts – Q2 2024 REVENUES G A A P D I LU T E D E P S ( Yo Y ) N O N - G A A P D I LU T E D E P S ( Yo Y ) 2023 REVENUES 5-YEAR REVENUE GROWTH $1.147B $1.70 | -16.3% $2.45 | -7.2% $4.691B CAGR of 21% (2018-2023) E PA M E R S ENGINEERS, DESIGNERS COUNTRIES & REGIONS FOUNDED IN U . S . H E A D
Slide 7: The EPAM Story
02 The EPAM Story EPAM Proprietary & Confidential. 7
Slide 8: Growing, Global Presence in 55+ Countries & Regions
Growing, Global Presence in 55+ Countries & Regions1 Belgium Cyprus France Germany Ireland Italy Armenia Malta Georgia Netherlands Canada Portugal Kazakhstan Spain Kyrgyzstan China Sweden Uzbekistan Hong Kong SAR United States Switzerland United Kingdom Japan Israel Qatar Mexico Lebanon Saudi Arabia
Slide 9: The EPAM Advantage – 30+ Years of Software & Digital Platform Expertise
The EPAM Advantage – 30+ Years of Software & Digital Platform Expertise EPAM turns 30, expands to 55 countries, and is recognized as a leader in the IDC EPAM completes its first In the midst of a historic EPAM extends its EPAM records its first billion- MarketScapes for Worldwide decade having built
Slide 10: Our Positioning
03 Our Positioning EPAM Proprietary & Confidential. 10
Slide 11: The Enterprise IT Services Market - a $2.1 Trillion+ Total Addressable Market for 2027
The Enterprise IT Services Market - a $2.1 Trillion+ Total Addressable Market for 20273 EPAM is positioned in the Consult & Build Services Market Segment (which includes Cloud, Consulting & Security) “BUILD” “MAINTAIN” Consulting Hardware Support $457B $71B Infrastructure Implementation & Managed Se
Slide 12: Market Trends
04 Market Trends EPAM Proprietary & Confidential. 12
Slide 13: The Enterprise Landscape is Increasingly More Competitive, Complex and in Need of Change
The Enterprise Landscape is Increasingly More Competitive, Complex and in Need of Change 01 02 03 Market Technology Enterprise • New competitors running on nimble • Generative AI • Adaptiveness technologies • Mobile devices • Agile IT • The customer-centric experience • IoT platforms • Application m
Slide 14: Who We Serve
05 Who We Serve EPAM Proprietary & Confidential. 14
Slide 15: Who We Serve
Who We Serve Among our clients, are some of the world's foremost brands across all major industries. Of our top 100 clients, 67 are in the Fortune 500 or Forbes Global 2000. Through its big data, platform Enabled Wolters Kluwer to deliver a Our Digital Learning program was Created a deeper level of
Slide 16: How We Do It
06 How We Do It EPAM Proprietary & Confidential. 16
Slide 17: How We Do It
OUR SERVICES How We Do It We enable our clients’ business transformation by engaging multidisciplinary teams who combine deep business expertise with design thinking, world-class engineering, modern operations practices and leading tools and frameworks for optimizing performance. We are Digital Orch
Slide 18: EPAM Continuum
EPAM Continuum The integrated business, experience and technology consulting service brand of EPAM Systems, applies a Systems Thinking mindset to help solve our clients’ most complex problems, develop their agility to adapt and empower them to compete. We believe the right solutions are the ones tha
Slide 19: Artificial Intelligence
07 Artificial Intelligence EPAM Proprietary & Confidential. 19
Slide 20: Forrester Wave quote on EPAM's stance on AI
ARTIFICIAL INTELLIGENCE “EPAM has taken a bold stance by acknowledging the disruptive impact of AI, particularly GenAI, on the testing and development services market. It believes that future testing services will heavily rely on AI accelerators, enabling greater utilization of less senior professio
Slide 21: Gartner Magic Quadrant quote on EPAM's GenAI focus
ARTIFICIAL INTELLIGENCE “GenAI focus: EPAM has (rightly) been quick to appreciate the opportunity and challenges that GenAI presents to the CSD market. More than any other vendor analyzed for this research, it has considered the strategic implications and acted to leverage GenAI in its production-le
Slide 22: EPAM Is Making GenAI Real
ARTIFICIAL INTELLIGENCE EPAM Is Making GenAI Real EPAM’s world-class GenAI platforms and methodologies help our clients accelerate the software development lifecycle with improved speed and productivity at scale. EPAM DIAL EPAM AI/RUN EPAM EliteA A Unified Generative AI Orchestration Platform Revolu
Slide 23: Xsolis
HEALTHCARE Xsolis A leader in using AI to make data work for payers and providers Xsolis’ goal is to increase staff productivity across health systems and health plans with human-centered AI. In partnership since 2021, EPAM and Xsolis relaunched the healthcare company’s flagship AI product as Dragon
Slide 24: Unity
GAMING Unity A leader in real-time 3D technology To meet the ever-increasing demands of game developers globally, Unity engaged EPAM to support its multi-cloud migration to Azure and to help build Unity Muse, a new GenAI tool that makes game development faster and easier. In just six months, EPAM su
Slide 25: Corporate Responsibility & Recognitions
08 Corporate Responsibility & Recognitions EPAM Proprietary & Confidential. 25
Slide 26: Environment Social Governance
SUSTAINABILITY Our approach to sustainability is guided by three principles: Environment Social Governance We care about our Planet We Support Our People and Communities We Conduct Business with Integrity We recognize the need to act with Our commitment to social impact is Corporate governance is a
Slide 27: Industry Leading Recognitions
AWARDS & RECOGNITIONS Industry Leading Recognitions Ranked the Top 100 Best Places to Listed Among the Top 25 World’s Named a Top 100 Most Loved Named an Inc. Power Partner Work (2023 - 2024) Largest Agency Companies by Ad Age Workplace by Newsweek (2023) (2020 - 2023) (2021 - 2024) Ranked as a Top
Slide 28: Investment Highlights
09 Investment Highlights EPAM Proprietary & Confidential. 28
Slide 29: Historical Annual Financial Performance
Historical Annual Financial Performance Revenue Growth ($B) Non-GAAP Operating Margins4 Non-GAAP Diluted EPS Growth5 $5.0 19% $11.0 CAGR 3-Year – 21% CAGR $4.0 18% $9.0 5-Year – 21% 3-Year – 19% 5-Year – 19% 17% $3.0 $7.0 16% $2.0 $5.0 15% $1.0 14% $3.0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2
Slide 30: Investment Highlights
Investment Highlights 01 02 03 04 Market Revenue Profitability Cash Flow Positioning & Balance Sheet • Well positioned in a large $700B+ • Industry leading 3- and 5-Year • Stable operating margins • $573M of cash flow from market revenue CAGR of 21% for operations for the last 12 months1 • Demonstra
Slide 31: Thank you!
Thank you! EPAM Proprietary & Confidential. 31
Slide 32: Footnotes
Footnotes 1. As of June 30, 2024 2. Forrester Wave : Digital Platform Engineering Services, Q2 2016 3. Gartner Market Opportunity Map: IT Services, Worldwide. March 2024 - ID G00806430 4. Non-GAAP Operating Margin excludes stock-based compensation expenses, acquisition-related costs including amorti