Epam Systems, Inc. · NYSE:EPAM
Epam Systems — Q2 2024 Earnings Presentation
30 slides from Epam Systems's earnings presentation, Aug 8, 2024
Slide 1: Presentation May 2024
Presentation M AY 2 0 2 4 EPAM Proprietary & Confidential.
Slide 2: Forward-looking statements
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 many of which are beyond
Slide 3: Table of contents
01 Who We Are 4 02 The EPAM Story 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 23 09 Investment Highlights 26 EPAM Proprietary & Confidential. 3
Slide 4: Who We Are
01 Who We Are EPAM Proprietary & Confidential. 4
Slide 5: We are consultants, designers, engineers, architects and trainers
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 our client
Slide 6: EPAM Fast Facts – Q1 2024
EPAM Fast Facts – Q1 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 (2018-2023) E PA M E R S ENGINEERS, DESIGNERS COUNTRIES & REGIONS FOUNDED IN U . S . H E A D Q UA R T E R E D & C O N S U LTA N T S P U B L I C C O M
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 - $2.1 Trillion+ TAM 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 Competitive, Complex and in Need of Change
The Enterprise Landscape is Increasingly More Competitive, Complex and in Need of Change Market Technology Enterprise • New competitors running on nimble • Generative AI • Adaptiveness technologies • Mobile devices • Agile IT • The customer-centric experience • IoT platforms • Application modernizat
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
Artificial Intelligence EPAM Proprietary & Confidential. 19
Slide 20: If you want to compete on the cutting edge, you need to embrace AI
ARTIFICIAL INTELLIGENCE If you want to compete on the cutting edge of technology, you need to embrace AI. With our end-to-end AI capabilities, we can help you… Uncover Outcome- Make the Right Build & Implement Driven Opportunities Investments Cutting-Edge Solutions We’ve been experimenting with AI f
Slide 21: IDC MarketScape AI Services quote
ARTIFICIAL INTELLIGENCE “EPAM’s strengths are the company’s ability to deliver across the lifecycle of AI services, use next-generation tools and methodologies to deliver AI services, provide ROI models and cost-benefit analysis to support the business case for AI solutions, manage key stakeholders,
Slide 22: AI client examples across Healthcare, Automotive, Business Information, CPG
Healthcare Automotive Business Information CPG / Retail A leading global healthcare company Integrated Gen AI into operations Developed a Gen AI-powered chatbot to Developed an AI-augmented content and long-standing client selected EPAM workflows to optimize software support engaging online lead gen
Slide 23: Corporate Responsibility & Recognitions
07 Corporate Responsibility & Recognitions EPAM Proprietary & Confidential. 23
Slide 24: Our approach to sustainability is guided by three principles
SUSTAINABILITY Our approach to sustainability is guided by three principles: 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 set of urgency to conserve and
Slide 25: 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 - 2023) Ranked as a Top
Slide 26: Investment Highlights
08 Investment Highlights EPAM Proprietary & Confidential. 26
Slide 27: 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% 5-Year – 21% $9.0 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 28: Investment Highlights
Investment Highlights Market Revenue Profitability Cash Flow Positioning & Balance Sheet • Well positioned in a large $700B+ • Industry leading 3- and 5-Year • Stable operating margins • $605M of cash flow from market revenue CAGR of 21% for operations for the last 12 months1 • Demonstrated ability
Slide 29: EPAM Proprietary & Confidential.
EPAM Proprietary & Confidential. 29
Slide 30: Footnotes
1. As of March 31, 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 amortization of