Epam Systems Inc (EPAM)

Business Description

EPAM Systems, Inc. is a leading digital transformation services and product engineering company that provides digital platform engineering and software development services to clients across six continents. The company focuses on building long-term partnerships with clients in various industries by delivering innovative and scalable software solutions, integrated strategy, experience, and technology consulting, along with a continually evolving mix of advanced capabilities . EPAM derives its revenues primarily from time-and-materials and fixed-price contracts, with the majority coming from time-and-material contracts billed using hourly, daily, or monthly rates . The company's service offerings have evolved to provide more customized and integrated solutions, combining software engineering with customer experience design, business consulting, and technology innovation services .

Professional Services - Delivers customized and integrated solutions that combine software engineering with customer experience design, business consulting, and technology innovation services.
Licensing and Other Revenues - Generates income from licensing agreements and other miscellaneous sources, contributing a small portion to the overall revenue.

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Arkadiy Dobkin	Chairman of the Board of Directors, President, and CEO	1993	Arkadiy Dobkin co-founded EPAM Systems, Inc. in 1993 and has served as Chairman and CEO since 2002. He has extensive experience as an IT professional and executive in the IT services industry, providing valuable insights into operational, strategic, and management issues, as well as general industry trends .
Balazs Fejes	President of Europe and APAC Markets	2004	Balazs Fejes joined EPAM in 2004 as part of the acquisition of Fathom Technology. He leads market activities across Europe and APAC and co-leads global business operations. He also oversees the strategy of EPAM's Banking and Financial Services Industry business unit .
Viktar Dvorkin	Senior Vice President, Head of Global Delivery	1997	Viktar Dvorkin joined EPAM in 1997. He is responsible for the strategy and operation of the company's Delivery Organization, Solution Practices, and Competency Centers. He also oversees EPAM's Advanced Technology programs, including EngX and Delivery Excellence .
Jason Peterson	Senior Vice President, Chief Financial Officer, and Treasurer	2017	Jason Peterson joined EPAM in 2017. He leads EPAM's Global Finance, Corporate Development, and Procurement organizations. He has over 25 years of finance experience, having previously worked at Cognizant Technology Solutions and other companies .
Edward Rockwell	Senior Vice President, General Counsel, and Corporate Secretary	October 2018	Edward Rockwell joined EPAM in October 2018. He oversees the legal activities of the organization and provides strategic counsel and legal guidance to senior leadership and EPAM’s Board of Directors .
Elaina Shekhter	Senior Vice President, Chief Marketing and Strategy Officer	2001	Elaina Shekhter has been with EPAM since 2001. She has served in various roles, including Global Head of Business Development and Global Head of the Travel and Consumer Business Unit. She integrates functions that influence EPAM's strategy, positioning, and messaging .
Boris Shnayder	Senior Vice President, Co-Head of Global Business	July 2015	Boris Shnayder joined EPAM in July 2015. He focuses primarily on operations in the Americas and oversees a portfolio of business in the region, including service programs and client acquisition .
Larry Solomon	Senior Vice President, Chief People Officer	October 2016	Larry Solomon joined EPAM in October 2016. He is responsible for overseeing all aspects of talent management, talent acquisition, workforce planning and management, as well as other human resource-related functions globally .
Sergey Yezhkov	Senior Vice President, Co-Head of Global Business	2006	Sergey Yezhkov joined EPAM in 2006 as part of the acquisition of Vested Development Inc. (VDI). He focuses on a North American book of business and oversees the strategy and operation of EPAM's Life Science & Healthcare portfolio .
Gary Abrahams	Vice President, Corporate Controller, and Chief Accounting Officer	June 2016	Gary Abrahams joined EPAM in June 2016 after initially serving as an independent contractor starting in March 2016. He was appointed as Chief Accounting Officer in April 2017. He has over 25 years of experience in global corporate financial management and public accounting .

Questions to Ask Management

Your guidance indicates that operating margins in 2025 will be slightly below 16% even after factoring in the recurring Polish R&D incentives; can you explain the underlying factors causing this margin pressure and how you plan to address them?
While you expect to return to organic revenue growth in 2025, you mentioned uncertainty about whether it will be "meaningful"; what challenges are limiting stronger growth, and what strategies are in place to accelerate it?
With the acquisition of Nedis being significant for your expansion, how will you ensure its successful integration without impacting your core operations, and what are the anticipated effects on your revenue and profitability?
You noted ongoing wage inflation and a lack of improvement in the pricing environment; how are these trends impacting your competitiveness, and what measures are you taking to manage costs while sustaining profitability?
As you continue to diversify your global delivery hubs, particularly in higher-cost regions like Central Europe, how are you balancing talent acquisition with the impact on your cost structure and margins?

Program Details	Program 1	Program 2
Approval Date	N/A	August 1, 2024
End Date/Duration	Exhausted by June 30, 2024	24 months
Total additional amount	$500.0 million	$500.0 million
Remaining authorization	$0	$450.0 million
Details	Fully utilized	Discretionary repurchase

Debt Maturity Schedule

Year	Amount Due (Millions)	Debt Type	Interest Rate (%)	% of Total Debt
2024	25.0	Revolving Credit Facility	5.9	100% = (25.0 / 25.0) * 100

Auditor

Name	Start Date	End Date	Reason for Change
Deloitte & Touche LLP	2006	Present	Current auditor