Q2 2024 Epam Systems Inc Earnings Call Transcript
Key Points
- EPAM Systems Inc (EPAM) reported strong growth in the healthcare and life sciences vertical, with a year-over-year increase of 22.4%.
- The company is seeing signs of stabilization in its underlying business, particularly in financial services and emerging verticals.
- EPAM Systems Inc (EPAM) is expanding its global delivery strategy, with significant investments in India and Latin America, which are expected to drive future growth.
- The company has been recognized by several partners, including Databricks and Google Cloud, for its leadership in AI and cloud technologies.
- EPAM Systems Inc (EPAM) is making significant progress in GenAI-related projects, with hundreds of engagements and a strong pipeline of opportunities.
- EPAM Systems Inc (EPAM) experienced a year-over-year revenue decline of 2% in the second quarter, impacted by the exit from the Russian market.
- The demand environment remains complex, with clients cautious about larger programs and constrained visibility for significant increases.
- The company's gross margin decreased compared to the previous year, impacted by foreign exchange and compensation increases.
- On-site utilization remains below targeted levels, contributing to challenges in revenue growth.
- The company is facing pricing pressure due to the shift in headcount to lower-cost regions like India, impacting average bill rates.
Good day and welcome to the second quarter 2024 EPAM Systems Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) And finally, I would like to advise all participants that this call is being recorded. Thank you.
I'd now like to welcome Mike Rowshandel, Head of Investor Relations to begin the conference. Mike, over to you.
Good morning, everyone and thank you for joining us today. As the operator just mentioned, I'm Mike Rowshandel, Head of Investor Relations. By now, you should have received your copy of the earnings release for the company's second quarter 2024 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 would like to remind those listening that some of the comments made on today's call may
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