EPAM Systems, Inc.

second quarter 2025 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. We do ask you limit your questions to one and one follow-up. Thank you. I would now like to turn the call over to Mike Rochandle, Head of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us today on our second quarter 2025 earnings announcement. As the operator just mentioned, I'm Mike Rochandle, Head of Investor Relations. We hope you've had an opportunity to review our earnings release we issued earlier today. If you have not, copies are available on epam.com in the Investors section. With me on today's call are Akadi Dopkin, CEO and President, Balash Vaish, President of Global Business and Chief Revenue Officer, and Jason Peterson, Chief Financial Officer. I would like to remind those listening that some of the comments made on today's call may contain forward-looking statements. These statements are subject to risk 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 measures and are available in our quarterly earnings materials located in the investor section of our website. With that said, I will now turn the call over to Arc.

Thank you, Mike. Good morning, everyone. It's a pleasure to have FB with us on this call, and thank you for joining us today. I'm pleased to share that our second quarter efforts delivered results ahead of expectations, marking another consecutive quarter of our performance and further shaping what we believe will be our durable and truly differentiating market proposition. Combining best-in-class AI-native services with our core engineering and practical consulting strengths. Before we dive in, let me outline today's call. I will begin with our Q2 results and our performance, and then walk through the foundational themes driving our improved growth rates. I will then hand it over to Yubi who will share some highlights as a Chief Revenue Officer on how we position ourselves for continuing sustainable growth. Finally, Jason will cover our detailed financial results and outlook. After that, the three of us will be available for our questions during the Q&A session. Now, turning to our Q2 results. As we shared in our last update, we have been focused on sustaining sequential growth momentum even against the country's microeconomic backdrop. In Q2, we once again delivered a double-digit year-over-year revenue growth, while an organic contribution played a significant role. It's important to note that our organic growth accelerated from the low single digits to the mid-single digits, exceeding the expectation set 90 days ago. This marks our third consecutive quarter of positive organic growth, reflecting steady improvements in our core business and return to much more consistent performance. Our P2 growth was broad-based, with all six verticals growing year-over-year and sequentially. Notable stand-outs include financial services, emerging verticals, and software and high-tech. Consumer goods retail and travel, as well as the business information and media, both returned to positive year-over-year growth this quarter. Geographically, all three regions delivered strong year-over-year growth, reinforcing our view that while demand conditions remain dynamic, the environment for EPAM is stabilizing and possibly improving across the whole of our core business. Now shifting to our positioning through the first half. While we anticipated earlier in the year that 2025 would remain a transitional period, we are encouraged to see our sequential momentum improved faster than anticipated. These continuous projects ramp up in Q2, driving what we believe is among the strongest organic constant currency growth rates in the industry in this time. As a reminder, our client base is almost exclusively large and mid-sized private sector enterprises. There's no exposure to federal BPO and legacy managed services. And although we remain very prudent and mindful of our clients' own end markets in the current climate. We have seen no material impact on our business, unlike some of our peers. Our clients remain focused on strategic efficiency and growth, with the farm playing a key role in both. Our investments in domain expertise, AI-enabled delivery, quality standards across our global talent hubs, and complex client engagements are helping us to retain and expand while we share and win new logos, positioning us for stronger growth in 2025 versus 2024. If we take a step back, there are three long-term foundational themes which together should help to explain why we should show a different trajectory in the current market. We believe the themes underpin our improving growth trends and position us for differentiated results in 2025 and beyond. Number one, we continue to see clients refocus on quality as execution matters. EPAM today is known as a trusted strategic partner that consistently delivers quality outcomes. While we are building our own AI-led consulting capabilities, our core focus is still on execution, design, build, and deploy of mission-critical enterprise products and platforms. Rooted in our heritage and culture, this differentiation is not easily replicated. The last several years have confirmed that. Our core engineering DNA, which has remained intact through multiple technology cycles, will be even more critical in the AI era. In Q2, more clients entrusted us with their most complex ROI-driven programs, often expanding engagements to include new commercial and delivery models. These programs are also growing in scale. As AI becomes more deeply embedded across enterprises, platform complexity will further increase disproportionately, driving even greater demands for the reliable end-to-end AI-optimized execution and deep specialization we provide. We are seeing some consolidation of demand, and we believe that EPAM is benefiting through our ability to bring a unique combination of AI-native consulting, engineering, organizational enablement, and transformational services. We are seeing more new RFPs both for AI-ready solutions and for the core system integration and modernization for the client to prepare for AI adoption. Number two, we continue to expand our market-leading position as an AI-native transformation company. Our investments in AI are serving us well and have enabled us to achieve a high level of AI adoption and to build a highly advanced set of AI and AI-native capabilities, platforms, tools, and accelerators. I would like to stress that AI adoption alone, while essential, is not enough for long-term success, which is why today we offer a full range of AI transformational capabilities, from engineering to organizational enablement to our own proprietary and open-source platform, such as DAO and AI Run. As a result, our end-native revenue is growing double-digit sequentially, up from strong double-digits last quarter. Looking at our top 100 clients, the vast majority continue to be actively engaged with the initiatives that now have moved beyond experimental PUC to medium and larger-scale programs, and many are adapting the PAM platforms to accelerate those. These platforms go beyond enabling agentic workflows and data-native reasoning. They address the structural challenges of deploying AI at scale across the enterprise. By integrating best-of-breed external products, client-specific tools, in both structural and non-structural data, they allow to close the integration gap faster, ensuring reliable cost-effective operation, and fostering enterprise-wide use. Importantly, they achieve this without locking clients into proprietary tools, reflecting the open source nature of most of our AI enablement offerings. In short, we are making meaningful progress and gaining significant momentum and becoming an AI-native transformation company. And we expect this driver of growth to build farther in the quarters ahead. We will be sharing more updates along the way, including showcasing the new high-impact proposition we are taking on the market. Number three, we continue to scale and optimize our global delivery hub. offering clients more attractive and scalable options than ever before. We remain convinced that talent will be a critical driver of our industry's future and growth. In rapidly expanding markets for AI-led transformation, the ability to scale specialized talent is essential. So we are relentlessly training and upskilling our teams, particularly as we deploy AI to enhance both individual and team productivity. Our global footprint spanning four diversified talent hubs in Europe, India, Latin America, and Western and Central Asia is connected through a single proprietary delivery platform and unified AI-enabled delivery methodology. This integrated model provides greater resilience and enables us to deliver truly strategic global capabilities to large enterprises that must constantly balance cost considerations and location strategy with business priorities. Each hub operates on the same delivery backbone supported by advanced training and globally managed technical assessments. Together, they drive collaboration, co-innovation, and rapid client access to advance AI-native capabilities. Our operating models also support centers of excellence that strengthen horizontal capabilities such as data cloud and experience engineering. and vertical specialization, delivering end-to-end execution from strategies for implementation. These foundational themes are our core differentiators and are essential for our long-term growth. IPAM has taken the necessary steps to address our company's specific challenges of recent years, while simultaneously positioning our underlying business for strong and sustainable organic constant currency growth, and putting us in a much stronger position than we anticipated just six months ago. Lastly, today is my 52nd and final call as the CEO of EPAM. It was indeed an incredible journey for me from founding EPAM back in 1993 into our IPO day in 2012 and to this moment, with everything in between. So at this point, I would like to state that the CEO transition plan has been going well and is on track to be completed by September 1st, 2025. in which we will become our new chief executive officer and president, and I transition into the role of executive chairman. The title changes, but my commitment doesn't. I look forward to continue supporting the long-term success of the company. I want to thank the entire leadership team and all our employees around the world for their relentless drive, innovation, commitment to engineering excellence, and differentiation in value that they continue to deliver to our clients. With that, I want to welcome Yves to provide some additional call.