Good day, and thank you for standing by. Welcome to EPAM Systems' fourth quarter and full year 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Straube, Head of Investor Relations. Please go ahead, sir. Thank you, operator, good morning, everyone. By now you should have received your copy of the earnings release for the company's fourth quarter and full year 2022 results. If you have not, a copy is available on epam.com in the investor section. With me on today's call are Arkadiy Dobkin, CEO and President, and Jason Peterson, Chief Financial Officer. I'd like to remind those listening that some of our 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 measure and are available in our quarterly earnings material located in the investors section of our website. With that said, I'll now turn the call over to Ark. Thank you, David. Good morning, everyone. Thank you for joining us this morning. 12 months ago, on February 17th, we were looking toward 2022 with optimism. We had just been added to S&P 500, we expected to grow almost 40% and generate over $5 billion in revenues in this year. Even with some early warnings, the Russian invasion shocked the world on week later and put us on a very different path of priorities. The new reality redefined the meaning of success for us, we are very grateful today to the tens of thousands of EPAMers and our customers around the world who mobilized support for people in our business during the past year. Our success in 2022 was defined by new criteria and priorities, many of which we've shared with you in our regular calls and updates during 2022. Priority one was to do everything possible for the safety of our people in Ukraine. Our global mobility mission was immediately repurposed and scaled to support over the 10,000 EPAMers who chose to stay with EPAM while relocating for new foreign countries and many with their families. Our business continuity strategy was adapted to include an exit of our business from Russia. Throughout the year, our customer focus was further elevated to ensure that even with environment that was anything but normal, our clients continued to get the consistently high quality of delivery and level of service that they would expect under normal business conditions. 2022 was in every way the most disruptive year for EPAM I remember, I have a privilege to remember all of them. You might ask why we're considering 2022 a relative success. As a result of our 2022 efforts, in 2023 we have a global delivery footprint and organization that makes EPAM one of the most geo-diversified IT services companies in the world, and one that now operates in more than 50 countries. When we began 2022, roughly 60% of our delivery was in just three largest locations bordered together. Today, only 30% of our talent is there, while we expect that we'll fall closer to 20%-25% concentration by the end of this year with accelerated growth outside. We also didn't lose any significant clients during the last 12 months, despite actively running a global delivery location rebalancing program. In real time, we were continuously developing new capabilities across our major markets. We were also proving that our delivery out of Ukraine can consistently demonstrate productivity and quality very much in line with pre-war expectations. Finally, that our new locations are very much in line with EPAM productivity and quality engineering standards too. Why then we use a relative qualifier to the stated success up to date? Simply, the war is in Ukraine is not over, and we believe that it will be our daily reality for some time to come. Having accomplished what was extremely difficult transformation and while finding ourselves a much stronger, more capable, and effective company than we have been before, and with a strong foundation to build upon to the next leg of our journey, we do realize that it's very much an ongoing process which demands our even higher level of preparedness for new and unexpected challenges. Additionally, as I mentioned during our last earnings call, some of our partners and customers have been messaging their expectation for global slowdown in demand and started taking resulting actions to better align their businesses to new environment. While they also expected corresponding slowdown, our reality happened to be more complex than the typical slowdown indicated by others. When we shared our Q3 results in November, we were not yet seeing a detailed picture of what EPAM specific demand environment would become in 2023. Today, what we're experiencing is slightly more than caution related to macroeconomic conditions. The emerging view is specific to both the overall global market conditions and also reflect the client expectation of impact of our mitigation and diversification plans, and their corresponding decision-making process during the last year. First, we now understand that some of our clients didn't expect that we would navigate the past 12 months as well as we did. At some point, they choose to mitigate their risk associated with our situation in advance and to consider alternative for them new work streams. We believe that while they are now comfortable with our diversified delivery footprint and committed to continue working with us, a number of decisions made two, three quarters before became visible for us just now. Second, due to immediate redistribution of our talent to new locations, our overall cost structure and cost to our customers of our offerings were disrupted at some level. During the high demand environment, such changes were accommodated with relatively ease. In current slow environment, the new location and pricing mix present a greater challenge, at least while we were fixing the imbalance. Third, there are several key for us verticals, such as software and high-tech, for example, which were disproportionately impacted by the current slowdown. There are also several large clients which were impacted by their own specific circumstances during the last several months who had to delay previously committed initiatives. Finally, our attention on bringing in net new logos during the last 12 months was deprioritized as we focused on retaining our existing customers and repositioning our global delivery as our key priorities. Because of those EPAM-specific factors, we believe we are now seeing a lower revenue growth outlook at the beginning of 2023 than we historically would expect at this time. Our current view for the year now shows relatively low growth during the first half of the year, with acceleration in growth in the second half of 2023, potentially approaching the high teens in Q4, and with opportunity to come back to our pre-pandemic 20%+ organic growth profile right after that. At this point, we're investing in our customer and partner relationship and working across our global portfolio to build on our strong engineering differentiators with the value-added services and consulting cloud data and customer experience. These are long-term programs which we've had underway for several years. Our current positioning as a top-tier partner to our clients and additional credibility we built during the last 12 months should help us to create uplift in demand going into second half of 2023. Today, we continue to stabilize our delivery global platform and develop talent across new geographies. A significant part of those continuous efforts will allow us to restoring the balanced cost structure across our major delivery centers. At the same time, while we are fully committed to continuing our investments in our strategic differentiators, we are watching very carefully the balance of those investments to our current and immediately visible demand. Given the necessity of looking at our business both from a long and shorter-term point of view, we are heavily utilizing our digital platforms, which have been instrumental in guiding our decisions so far and allowing us to monitor our business on daily basis and making real-time calibrations when necessary to ensure that we protect our best talent as a key priority while still driving towards our historic growth and profitability levels. On the general slowdown issue, we do believe that in today's technology-dependent world, the real impact of slow demand on the IT services global market most likely should be limited just to several quarters. The pullback will encourage new players to enter the market with new technology-led business solutions and push enterprises to respond with new investment in order to protect their competitive positions, which in turn should accelerate growth for EPAM as our proposition is focused exactly on helping them to bring new strategy and implementation simultaneously in most coordinated and efficient ways. Our goal today is to prepare EPAM exactly for that time and to be able to respond and fast to the next growth and capability challenges. That is why we plan to focus our attention in the next quarters to further stabilize our global operations and to continuously invest into new talent, new capabilities, new offerings, and new markets, and to maintain our strong engineering DNA, but this time as much more globally diversified company than ever in the past. Looking at our results for 2022, we generated over $4.8 billion in revenues, reflecting a greater than 28% year-over-year growth. Non-GAAP earnings per share were $10.90, a 20% increase over fiscal 2021. We also generated $382 million of free cash flow. One more time, we did all that during the year when we had almost 60% of our talent in regions directly or indirectly impacted by war, and when we were supporting many thousands of EPAMers and their families during the continuous relocation process. In 2023, we are committed to accelerating our mission of becoming a true value orchestrator for our customers, and we are working every day to stay focused on our customer need, needs, and demands, even while we continue evolving our geographic expansions, our capabilities, and our commercial offerings of a larger, more diversified, and more capable EPAM. It is a bit strange to talk today again 12 months later about crossing $5 billion revenue mark in 2023, as we did back in February 2022. The war took a year of our life, year of our growth, we all know too well that it's just nothing in comparison to what people in Ukraine must go through today, and what is happening on the ground in Turkey as we speak right now. That is why with all that, what didn't change at all is our confidence that with what we built and continuously building, we would be able to navigate the challenges and come back to our 20%+ organic growth rate in the next several quarters and to our $10 billion aspiration in the next several years. With that said, let me turn the call over to Jason Peterson, who will talk about our Q4 and full year 2022 results and our business outlook for 2023. Thank you, Ark. Good morning, everyone. Before covering our Q4 results, I wanted to remind everyone that in addition to our customary non-GAAP adjustments, expenditures related to EPAM's management commitment to Ukraine, the exit of our Russian operations, and costs associated with accelerated employee relocations have been excluded from non-GAAP financial results. We have included additional disclosures specific to these and other related items in our Q4 earnings release. In the fourth quarter, EPAM delivered solid results. The company generated revenues of $1.23 billion, a year-over-year increase of 11.2% on a reported basis, and 14.4% in constant currency terms, reflecting a negative foreign exchange impact of 320 basis points. Additionally, the reduction in Russian customer revenues resulting from our decision to exit the Russia market had a 440 basis point negative impact on revenue growth. Excluding Russia revenues, reported year-over-year revenue growth would have been 15.6%. Constant currency growth would have been almost 19%. Beginning with our industry verticals. Travel and consumer grew 16%, driven by strong growth in travel and hospitality, with some moderation in retail and consumer goods as customers exhibited incremental caution in the last few months of 2022. The ongoing exit of the Russian market also impacted the growth in this vertical. Absent the impact, growth would have been 19% or 25.4% in constant currency. Financial services grew 2.4%, with very strong growth coming from asset management and insurance. Excluding our Russia customer revenues, growth would have been 17.8% and 20.8% in constant currency. Software and high tech grew 10.3% in the quarter. Growth in the quarter reflected a reduction in revenue from a customer that was previously in our top 20, in addition to slower generalized growth in customer revenues across the vertical. Life sciences and healthcare grew 11.5%. Growth in the quarter was partially impacted by the unexpected ramp down of a large transformation program at a customer that was previously in EPAM's top 10. We currently anticipate further ramp downs in this customer spending in Q1 of 2023. Business information media delivered 10.9% growth in the quarter. Finally, our emerging verticals delivered strong growth of 20.8%, driven by clients in manufacturing and automotive, as well as energy. From a geographic perspective, the Americas, our largest region representing 59% of our Q4 revenues, grew 14.7% year-over-year or 15.6% in constant currency. EMEA, representing 37% of our Q4 revenues, grew 18% year-over-year or 25.7% in constant currency. The accelerated growth in the quarter is partially the result of recent acquisitions. CEE, representing 1% of our Q4 revenues, contracted 71.8% year-over-year or 72.6% in constant currency. Revenue in the quarter was impacted by our decision to exit the Russia market and the resulting ramp down of services to Russian customers. Finally, APAC was flat year-over-year, but actually grew 3.8% in constant currency terms and now represents 2% of our revenues. In Q4, revenues from our top 20 clients grew 8% year-over-year, while revenues from clients outside our top 20 grew 13%. Moving down the income statement. Our GAAP gross margin for the quarter was 32.4% compared to 34.3% in Q4 of last year. Non-GAAP gross margin for the quarter was 34.1% compared to 35.9% for the same quarter last year. Gross margin in Q4 2022 reflects the negative impact of lower utilization and the positive impact of a more normalized variable compensation expense compared to Q4 2021. Gross margin in the quarter was also negatively impacted by the timing difference associated with EPAM's ongoing efforts to align bill rates based on employee relocations, most of which have been accomplished in 2022. GAAP SG&A was 16.6% of revenues, compared to 17.2% in Q4 of last year. Non-GAAP SG&A came in at 14.8% of revenue, compared to 15.6% in the same period last year. The SG&A result for Q4 reflected efficiencies made primarily in our facilities footprint and lower variable compensation compared to Q4 2021. GAAP income from operations was $170 million, or 13.8% of revenue in the quarter, compared to $166 million or 15% of revenue in Q4 of last year. Non-GAAP income from operations was $220 million, or 17.8% of revenue in the quarter, compared to $206 million or 18.6% of revenue in Q4 of last year. Our GAAP effective tax rate for the quarter came in at 22.9% versus our Q4 guide of 21%, due primarily to lower ex-excess tax benefits related to stock-based compensation, as well as the impact of a change in certain tax regulations. Our non-GAAP effective tax rate, which excludes excess tax benefits and includes the impact of a change in certain tax regulations, was 23.5%. Diluted earnings per share on a GAAP basis was $2.61. Our non-GAAP diluted EPS was $2.93, reflecting a $0.17 increase and a 6.2% growth over the same quarter in 2021. In Q4, there were approximately 59.3 million diluted shares outstanding. Turning to our cash flow and balance sheet. Cash flow from operations for Q4 was $186 million, compared to $285 million in the same quarter of 2021. Free cash flow was $165 million, compared to free cash flow of $228 million in the same quarter last year. We ended the quarter with approximately $1.7 billion in cash and cash equivalents. At the end of Q4, DSO was 70 days and compares to 69 days in Q3 2022 and 62 days in the same quarter last year. Looking ahead, we expect DSO will remain steady in 2023. Moving on to a few operational metrics for the quarter. We ended Q4 with more than 52,850 consultants, designers, engineers, trainers, and architects. Production headcount growth was relatively flat compared to Q4 2021. Our total headcount for the quarter was more than 59,250 employees. Utilization was 73.6% compared to 76.8% in Q4 of last year, and 73.5% in Q3 of 2022. Turning to our full year results for 2022. Revenues for the year were $4.825 billion, producing 28.4% reported growth and 32.4% on a constant currency basis when compared to 2021. During 2022, our acquisitions contributed approximately 5% to our growth. Excluding Russia revenues, reported year-over-year revenue growth would have been approximately 32.1%, and constant currency growth would have been approximately 36.3%. GAAP income from operations was $573 million, an increase of 5.7% year-over-year, and represented 11.9% of revenue. Our non-GAAP income from operations was $818 million, an increase of 20.6% over the prior year and represented 17% of revenue. Our GAAP effective tax rate for the year was 17.3%. Our non-GAAP effective tax rate was 23.4%. Diluted earnings per share on a GAAP basis was $7.09. Non-GAAP diluted EPS, which excludes adjustments for stock-based compensation, acquisition-related costs, and other certain one-time items, was $10.90, reflecting a 20.4% increase over fiscal 2021. In 2022, there were approximately 59.2 million weighted average diluted shares outstanding. Finally, cash flow from operations was $464 million, compared to $572 million for 2021. Free cash flow was $382 million, reflecting a 59.3% adjusted net income conversion. Cash flow in 2022 reflected expenses associated with our ongoing humanitarian efforts in supporting our Ukrainian employees and certain cash impacts related to the exit of our Russian operations. We're very pleased with our 2022 results, given the significant amount of disruption and transformation which we navigated throughout the year. Let's turn to guidance. For 2023, we will resume providing a full year outlook in addition to guidance for the next quarter. To date, our operations in Ukraine have not been materially impacted and our teams remain highly focused on maintaining uninterrupted production. Our guidance assumes that we will continue to be able to deliver from our Ukraine delivery centers at productivity levels at or somewhat lower than those achieved in 2022. As we mentioned during our Q3 earnings call, we began to see signs of moderation in demand, including delays in decision-making and additional scrutiny on program budgets early in Q4. At that time, this was isolated to a few customers in the retail and consumer goods industries. Since then, we have seen further evidence of slower decision-making and caution around spending, including some program ramp downs. For most clients, caution around budgets has only resulted in a slowdown in growth. For some clients, we experienced actual reductions in spend in Q4, combined with continued cautious spending entering Q1. For two customers that were in our top 20 in 2022, we have seen ramp downs in programs which will negatively impact Q1 revenues. We expect neither of these customers to be in our top 20 in Q1. We already see one of those customers once again requesting incremental project teams. At this time, we're expecting a lower level of revenue in Q1, producing a slower start to our 2023 fiscal year. Consistent with previous cycles, where we managed through a temporary softening in demand, we will continue to thoughtfully calibrate our expense levels while focusing on the preservation of our talent in preparation for expected stronger 2023 second half demand. In the first half of 2023, we expect headcount will continue to decline as a result of a reduction in hiring combined with normal levels of attrition. We're planning on returning growth in production headcount in the second half of 2023. We expect utilization in the mid-70s in the first half of the year as demand and supply normalize, with utilization in the second half of the year expected to return to our more traditional 77%-79% range. As a reminder, the exit of the Russia market and the reduction in Russia customer revenues produces a tougher year-over-year revenue comparison, primarily in the first half of 2023. Starting with our full year outlook, revenue growth will be at least 9% on both a reported and constant currency basis. The impact of foreign exchange is expected to be negligible on a full year basis. Additionally, at this time, there is no inorganic revenue contribution for 2023, so our guide includes organic revenue growth only. Excluding the impact of the exit of the Russia market, reported revenue growth is expected to be approximately 11%. We expect first half revenue growth to be in the single digits, returning to double-digit revenue growth in the second half of the year. In Q4 of 2023, we expect revenue growth in the high teens. We expect GAAP income from operations to be in the range of 11.5%-12.5%, and non-GAAP income from operations to be in the range of 15.5%-16.5%. We expect our GAAP effective tax rate to be approximately 21%. Our non-GAAP effective tax rate, which excludes excess tax benefits related to stock-based compensation, will be 23%. For earnings per share, we expect that GAAP diluted EPS will be in the range of $8.64-$8.84 for the full year, and non-GAAP diluted EPS will be in the range of $11.15-$11.35 for the full year. We expect a weighted average share count of 59.6 million fully diluted shares outstanding. For Q1 of 2023, we expect revenues to be in the range of $1.200 billion-$1.210 billion, producing a year-over-year growth rate of approximately 3%. Our guidance reflects an unfavorable FX impact of 2%, and the year-over-year growth rate on a constant currency basis is expected to be approximately 5%. We expect a negligible contribution to revenue growth from acquisitions. Adjusted for the impact of our decision to exit the Russia market, constant currency revenue growth would be approximately 8%. For the first quarter, we expect GAAP income from operations to be in the range of 9.5%-10.5%, and non-GAAP income from operations to be in the range of 14%-15%. Income from operations reflects the impact of the resetting of Social Security caps and lower utilization, which we expect to improve throughout the year. We expect our GAAP effective tax rate to be approximately 18% and our non-GAAP effective tax rate, which excludes excess tax benefits related to stock-based compensation, to be approximately 23%. For earnings per share, we expect GAAP diluted EPS to be in the range of $1.66-$1.74 for the quarter, and non-GAAP diluted EPS to be in the range of $2.30-$2.38 for the quarter. We expect a weighted average share count of 59.5 million diluted shares outstanding. Finally, a few key assumptions that support our GAAP to non-GAAP measurements in 2023. Stock-based compensation expense is expected to be approximately $152 million, with $35 million in Q1, $36 million in Q2, and $81 million in the remaining quarters. Amortization of intangibles is expected to be approximately $22 million for the year, evenly spread across each quarter. The impact of foreign exchanges is expected to be nominal for the year. Tax effect of non-GAAP adjustments is expected to be around $44 million for the year, with $12 million in Q1, $10 million in Q2, and $11 million in each remaining quarter. Finally, we expect excess tax benefits to be around $23 million for the full year, with approximately $8 million in Q1, $6 million in Q2, and $9 million in the remaining quarters. Related to the support of our Ukrainian employees through December 31st, 2022, EPAM has spent approximately $45 million as part of the company's $100 million humanitarian commitment to our Ukrainian employees and their families. We expect further humanitarian expenditures will be made during 2023. Lastly, our board of directors recently approved a share repurchase program authorizing the company to purchase up to $500 million of the company's common stock over the next 24 months. This program will allow the company to substantially offset dilution associated with the issuance of employee equity. We expect to continue to generate solid free cash flows in 2023 and even stronger free cash flows in 2024. With our significant cash position and our confidence in EPAM's ability to generate strong free cash flows, we believe the company can both continue to pursue significant strategic acquisitions while evolving our capital allocation strategy to include a share buyback program. Again, my thanks to all the EPAMers who made 2022 a successful year and will help us drive growth throughout 2023. Operator, let's open the call for questions. Thank you. As a reminder, to ask a question, you'll need to press star one one on your telephone. To withdraw your question, please press star one one again. Please wait for your name to be announced. Please stand by while we compile the Q&A roster. one moment for our first question. Our first question comes from the line of Ramsey El-Assal with Barclays. Your line is open. Hi. Thanks so much for taking my question this morning. I wanted to ask about Ark's comments on some clients preemptively making the decision to move some workloads, sort of off of EPAM and that sort of playing out as we speak. I guess the question is that dynamic already largely complete, or is that something that's sort of ongoing into, you know, deeper into the year? Maybe you could speak to how do you, if you can, and how you can go about winning those workloads back. I think let me clarify maybe if it's. First of all, it's very difficult to measure what's happening, but we're not saying that work taken from EPAM. What we were saying that we're realizing right now that some work, future work, which we traditionally will be getting from existing client base, were offered probably to some alternative vendors, and decisions were made or started to explore this several quarters ago when clients were not sure how well we're going to navigate the whole disruption in Eastern Europe. Again, it's very difficult to measure, but seeing the current demand and situation in Q1, that's what we assume happened. Direct confirmation of this is not necessarily easy to get. At the same time, we know that with majority of the client, and we mentioned that we didn't lose practically any clients, didn't lose significant clients at all. They understand that we've been able to prove that we can navigate and continuously working from Ukraine, and the quality of our delivery is comparable with traditional, even when we're offering our new destinations for the work. We believe that right now there is a level of comfort that clients will be considering us for future work as well. There are some confirmations for this. At the same time, we mentioned cost changes as well. That's another challenge or another thing which we're actively working to make sure that we're bringing the balance there too. Okay. Thank you. One quick follow-up from me. Maybe Jason, could you comment on the margin cadence this year? Should we expect margins to sort of step up along with revenue and somewhat of the straight line as we move deeper into the year and, you know, all the way to the fourth quarter, or is there any other color on just the cadence of margins that you might need to share? Yeah. Let me actually use this opportunity to be a little clearer on kind of what we think we'll see in 2023. I think the first statement I would make is clearly we were very thoughtful about our guidance with the 15.5-16.5 adjusted IFO range. At the same time, we do anticipate that we would operate above the midpoint of that range in 2023. You're correct that in the first half of the year, we expect to see lower levels of profitability, and in the second half of the year, higher levels of profitability. Let me take this opportunity to be sort of specific. We entered 2023 with a reset of Social Security caps and the lower utilization that resulted from some of those ramp downs that I talked about earlier. We expect to see gross margin in the first half of the year, probably in the 31%-32% range, and quite possibly closer to 31% than 32%. At the same time, with the lower level of revenue, I think you're gonna see SG&A go somewhat above 15% in the first half. What I anticipate in the second half with stronger growth, a stronger amount of bill days, greater bill days in the second half, improved utilization, and we'll be focusing on kind of matching, you know, our costs to our demand. A little bit of SG&A efficiency that results when you have the stronger revenue growth that you would see an improvement in the gross margin, probably around the 34% range in the second half. What you would see is SG&A below 15% in the second half. SG&A you know, above 15% in the first half of the fiscal year and below 15% in the second half. Very helpful. Thanks so much. Sure. Thank you. Our next question comes from Bryan Bergin with Cowen. Your line is now open. Hi. Thank you. I wanted to ask on the outlook here. As you built the 1Q and the 2023 growth outlook, is that a baseline from 4Q and really the December client activity you saw, or is that more so a real-time view of client contracting through the last few weeks? I'm trying to understand the underlying assumptions there in that full year guide. Maybe whether you have a different level of visibility to the full year target versus what you would normally have at this point in the year, just given all the moving parts. You know, clearly, it's a more challenging environment to sort of forecast. Clearly, I think we're all seeing, you know, some positives around the macroeconomic environment that maybe gets us a little bit more comfortable. As we exited 2022, we clearly saw a slow December, and I would say a slow January. Okay, what I think we're beginning to see is what I would call a little bit of green shoots of incremental demand as clients potentially get more comfortable with what 2023 might look like. With this, I guess, full year view shows clearly that the start of Q1, and then we're beginning to see more activity in terms of at least RFPs and other kind of requests for discussions with clients. As a result, we feel, you know, relatively confident that we can generate, you know, stronger revenue growth and probably more consistent with the type of sequential growth that we've seen in the past. I think, Bryan, you'd know that, you know, usually pre-pandemic, we sort of generated between 5% and 8% sequential growth throughout the year. Yeah. I would say our assumptions... again, everything what's happening definitely impacted by general economic slowdown, which everybody talking about. Very, even very specific trends in the case of EPAM is also in some way reflection of this slowdown as well, because clients have comparably less workout, and they also have more optionality with the vendors as well. Our assumptions right now are that, as we mentioned, that probably this difficult situation would be for several quarters, and then demand will start to pick up, and then we measure this approximately in the terms which we consider it pre-pandemic. In this situation, we model the growth as we do. With this, we think that, again, high teens should be happened closer to the end of the year, and potentially we will go to normal somewhere at the beginning of next year. My follow-up's on margin here. Just within this margin outlook, can you talk about the degree to which lower growth impacted the year-over-year decline versus, you know, the global investments you're making to support diversification versus just normal pricing and wage pressures, just as you move to new locales? Trying to rank order those three in this margin outlook. Jason, is there any structural change to the margin profile from here, just based on how you're seeing this play out? I think the first thing is that, you know, it's a little bit of a tale of two halves, where the first half is definitely lower profitability due to the unexpected lower level of demand. You do just have lower utilization in the first half. As we said, you know, we'll make certain that we're sort of appropriately matching cost to demand in the second half. I think that the other piece, just on a year-over-year basis is I do think that the, you know, the pricing power that I think probably all of us saw over the last couple of years is gonna be not quite as pronounced in 2023. Price is gonna be a little bit harder to come by. At the same time, you have an awful lot of cost inflation around the world that is driving relatively high wage inflation. I do think this year is gonna be a different year where, you know, I think, you know, we've benefited from obviously, you know, strong price and, you know, and let's say, appropriate sort of wage inflation. I think this year you're gonna see, you know, still relatively high wage inflation and a little less opportunity on the price side. Structurally, Bryan, you know, we've talked a lot about as we've moved into these new geographies, that over time what we'll do is we'll sort of scale and optimize, and that will improve profitability. I think with the slowdown in demand, it's a little bit hard to make some of those changes to bring in more junior staff to improve optimization, right, to improve scale. I do think that, as you move, as you move throughout the year, and particularly as you enter 2024, there's greater opportunities. You know, generally, I feel comfortable about our ability to continue to improve our profitability when we enter 2024. Okay. Thank you for all the detail. Thank you. Our next question comes from Maggie Nolan with William Blair. Your line is now open. Thanks very much. I'm curious what steps you're taking to revive the new business pipeline, given that it was a secondary focus as you were adapting last year. what we're doing to revive the pipeline. Okay. I think we kind of mentioned this, but in general, there is a much better stability in our global operation, which giving us opportunity to focus on business. We were talking about focus on consultancy, and this is working for us. We have new opportunities, which is driven by this. Also we're working on a number of different models specifically for this market today. We talked about it even last time. So attention to some, sometimes shorter programs in meantime before bigger transformational programs will be a top of mind for our clients again. Multiple activities, I don't think it would be possible to kind of describe everything in two minutes. The focus really to support new revenue generation right now, from small deals to consulting led deals as well. Okay. I think important to mention here that we definitely see still pretty good life at the markets. There are large deals where we invited and we participate right now, large RFPs as well. Most important, we do believe that the clients' confidence that we can continue even in this environment and even we still not finish war, is very, very different than was at the beginning of the disruption when some of them started to consider alternatives. I think this situation change, as you understand, everything there is a delay, we were really seeing the kind of visible impact at Q4 and Q1 right now. Okay. Then you mentioned a top 10 customer and a top 20 customer that was slowing. You know, outside of those two, can you talk about, you know, the rest of the top client portfolio, how you see, you know, growth materializing with that base? Is there a level of caution there into 2023? Any patterns emerging amongst, you know, those top customers in terms of where they'd like you to deliver from a geographic perspective? Oh, that's another point that we actually delivering now from very different geographies. I think, majority of the clients is comfortable. Again, there is nowhere that 100% of clients are ready to work in any locations with the size of the portfolio we have today. We really don't have the problem from geographies point of view because there is enough clients working from different regions. From this point of view, utilization today pretty well kind of balanced across the regions. At the same time, if you're talking about other trends in clients, then I would say that it's very much in line with everything else, everybody else talking about it today. There is a cautious, there is a slowdown. There are some clients we still growing fast, some decisions, making much, more slow, and some of them still delayed. On top of this, let's not forget that it is a mid of Q1, and even in normal year, there is no full kind of confirmation what would happen. I think, with the next month or two, we will understand a little bit more. Taking in account that this is very special year, not only for EPAM. I think, the delays and decisions would be even low, even more. In general, the rest of the portfolio acting for us more in line with every kind of normal to the market. Thank you. Thank you. The next question comes from the line of James Faucette with Morgan Stanley. Your line is now open. Great. Thank you so much. I wanted to dig in just quickly a little bit on some of the comments, Ark, you and Jason have made around the relationships with your customers and the like. I'm wondering what levers right now you're looking to pull or can pull to reengage and maybe rebuild some of the relationships and more specifically, the work streams. Should we expect any changes to pricing or delivery strategy in response to kind of those client dynamics? Like, I would reply with obviously in general terms. I think we're watching what's happening in real time and for specific clients, for specific deals, we're actually making sometimes real-time decisions as well. Again, there are two trends, and we're very clear about it. There is a general situation on the market, and there are some specifics to come, to EPAM. Some specifics still will be staying here. On another side, during the last 12 months, we probably make our clients feel much more comfortable in our ability to overcome the challenge. You can imagine what they were thinking like during the first couple months after the war started or even when it was destruction in Ukraine infrastructure. We kind of overcome all of these challenges, and Ukraine has delivered. I think, we mentioned in thousands of people each moved, and they delivered as well because we don't have complaints. Clients clearly were expecting some problems. What we're saying right now that this probably behind of us, while the challenge still remain there. When you say that you're building the trust with the clients, I think that's portion kind of done. Yeah, I'll just comment on the pricing. You know, as I said, the environment is, you know, probably There's a little less opportunity for price improvement. Clearly, we're gonna go off and make certain that we're able to sort of win opportunities. At the same time, we're still, you know, working on pricing, and we're, you know, certainly gonna make certain that we don't do anything that would impair profitability over the long term. Thank you for that. Quickly, just on capital allocation. How are you thinking about acquisitions, especially given the buyback authorization, and what are you looking for in acquisitions, and what's the current landscape and pipeline for potential deals? Thanks. Sure. you know, similar to the comment that Ark made around, you know, where our priorities were in 2022, you know, that would also be consistent for our acquisition activity. You know, we had other priorities, the, you know, the aggressive pursuit of acquisitions was somewhat deprioritized. At the same time, we have continued to be active through due diligence. Sometimes we've sort of disqualified potential opportunities. you know, what I said in my prepared script really is consistent with, you know, we believe that we can do pretty active acquisitions and also pursue a share buyback. we do expect to be active throughout 2023, certainly a lot more active than we were in 2022. I would say that, you know, generally it's, you know, the same sort of focus. Things that are probably somewhat more sort of consulting, kind of oriented, maybe things that have, you know, a platform flavor to them. We're, you know, tending to see a fair bit of growth in continental Europe, we'll clearly continue to look for opportunities to drive growth in that region as well. Thanks so much. Thank you. Our next question comes from the line of Surinder Thind with Jefferies. Your line is now open. Good morning. I think in your prepared commentary, you talked about potentially seeing some green shoots. Just as a clarification, are you saying that clients are a bit more optimistic now than they were in December and January? I guess if that's the case, you know, what kind of gives you comfort around maybe growth in the back half of 2023, given some of the challenges of maybe forecasting demand in the near term or the changes in demand that you've seen in the near term from clients? I'll start at the front end of that because I was the one who introduced the green shoot language, and that was in response to an earlier question. You know, David and I do sort of our own channel checks internally with the business units. That commentary, Surinder, was based on, you know, a number of conversations that we've had with business unit heads. You do see, you know, even in consumer goods, hopefully retail will also return with a little bit of strength in the retail sector. We are seeing, you know, clients begin to come back and look for work. I, you know, specifically said in my, in my prepared remarks that even the client who sort of, you know, had the ramp down between Q3 and Q4 is beginning to ask for new teams. There's just a whole series of kind of anecdotes and far more than one or two. Then maybe Ark, you want to talk about what we're seeing in terms of larger deal opportunities and RFPs and that type of thing? As I mentioned, we see life in the market. There are opportunities. There is very active work on our business development and the sales team right now. There are some deals in $hundreds of millions which we are participating in the process as well. When you're asking about how confident we about kind of the guidance right now and how we calculate it, I think I was trying to address this already. We're definitely working from multiple assumptions. How good is assumptions? This is different question because, like, if you think about 2020 and 2021 and 2022, each time it was very different situation. In the last three years, we have released a lot of news to the market. I think end results were very different than people expected at the beginning of the year. Back to the assumptions, I think we assume that situation in our development centers will be similar to what it is right now, including operation in Eastern Europe. We assume that we will be maturing our delivery and pricing structure across new locations which we entered with the next quarters. We are assuming that demand will go stronger in the second part of the year based on our, again, assumptions that what we were seeing before any slowdown in technology usually were triggering relatively fast comeback. As we mentioned, in current world, new and new companies will be coming and bringing new technology, and the traditional will have to protect the status quo and started to invest very quickly despite of any events. We saw it during the pandemic time, and again, we are absolutely confident it's not going to be this type of growth, but it will be a comeback. I think combination of these assumptions and our ability to come where we stand it right now in Q1 should lead us to the number which we shared with you. That's helpful. As a follow-up here, can we maybe talk about the delivery footprint costs? Obviously your global deliveries have changed over the past year. The average cost of delivery has gone up. How should we think about that from a structural perspective? It seems like is some of the competitive edge that you've maybe had in the past from maybe lower cost talent in Eastern Europe, is that gone at this point, or how should we think about that from a competitive standpoint, your the cost of your new delivery footprint and what clients think of it? I think that's a question which, or that's a challenge we should work on right now. We still in Eastern Europe. We open operations in many countries inside of EU but also outside of EU. At the same time, like the fastest growth is headcount happening in India and Latin America. This is two new continents, which is, I mean, organic fast growth because we have kind of some countries which is growing fast, but, because of, relocation impact. Yeah. India and Latin America, this is organically growing, and we will be focusing on these regions. Plus we have in our portfolio right now across Central Western Asia, a number of regions which we do believe will be cost competitive and at the same time with a level of talent comparable and in line with general Li & Fung requirements. I think it's, yeah, it's a little bit moving target, but that's exactly what we think and we will be able to manage with the next quarters as well. Thank you. Thank you. Our next question comes from the line of David Grossman with Stifel. Your line is now open. Thank you. Good morning. I'm wondering if you could, you know, looking at the 2023 guide, perhaps you could break it down in terms of, you know, the headwinds that you're experiencing from geographic diversification concerns among your clients, demand, and lower benefit from rate. David, are you talking about in terms of revenue growth or profitability or? Yeah, Jason, revenue growth, just the revenue growth headwind from each of those three things, if you could break it down. Maybe you clarify question one more time. Break it down between what? Breaking revenue... On a year-over-year basis, the revenue growth headwind, I think we identified, you know, kind of three buckets, right. One was some clients' concerns earlier in 2022 about geographic diversification, who initiated a process for that. There was a demand issue on a year-over-year basis, right, as a result of slowing economic growth. Then third, the environment's creating less opportunity to get rate than what you would typically get. I'm just wondering if you could help us understand the size of the headwind of each of those three dynamics on a year-over-year basis. I don't think we can, we can share specifics right now. I don't know, Jason, if you would be able to create some... Yeah, it's a little bit complicated, David, because, you know, we still have probably some benefit in rate from the rate changes that we did as people moved geographies in the second half of 2022. Of course, that shows up in a full year impacts in 2023. We think we'll see less, you know, what I would call traditional kind of pure rate in 2023. We moved into a lot of new geographies. As Ark talked about, Central and West Asia, which we think is an attractive location longer term. We probably still need to make certain that our clients are comfortable with the region in the same way that decades ago we had to get clients comfortable with Belarus. There's probably just some, let's say, some timing lag if they're not already comfortable with growing there. I don't know. Yeah. I think it's very difficult to split between two things. What we were talking about, some clients were making decision that we were counting on more growth in existing clients, and we don't see this, and the cost factor as well. I think calculating between these two almost impossible because it's more understanding that there is a trend between these versus specific calculation. We definitely can say how much we counted on couple clients which changed their mind. I don't think it's, again, it's tens of millions of dollars, but that's all. Yeah. I just think I'd just sort of close, David, with, you know, these are things that obviously we're working to address throughout 2023. As Ark said already, the ability to sort of deliver from these new geographies, we feel that the clients are comfortable, clearly comfortable with our ability to generate, to deliver from geographies that have been impacted in the East of Europe. As Ark talked about, we continue to sort of grow geographies that offer our clients, you know, very cost competitive solutions. Of course, you know, we've got the high level of talent in geographies that might be a little bit more expensive, but are appropriate for a specific client's feature. Got it. Fair enough. Thank you for that. Maybe just back, I think the question came up about supply and, you know, a couple of previous questions. I'm just curious, as you look at these new geographies, can you share any information in terms of, you know, trends and utilization rate or churn, you know, and how we should think about that in these new locations? I'm sure it's all over the board given their new start-up operations. Just wondering if there's any observations about any of those dynamics as well as just kind of your recruiting model in these new geographies and how that template is playing out for you. Yeah. It's a big, big question to go in details. Again, as I mentioned, 2022 was a big growth in India and Latin America. It all started actually in both locations. It was a significant growth in 2021 as well. As you know, 2021 was extremely good year. It was already proved in 2021. It was like India was growing like, I don't remember, 70%-80%, and Latin America probably in the same terms. Now it's 30%-40% in India and even more in Latin America as well. These regions we're pretty comfortable. Yes, it's different from traditional, but we bring in there a lot of experience or expertise how to build and grow based on our standards, and I think it's working. This is one bucket. Another bucket, it's a number of locations where we have simultaneously bringing local talent and bringing experienced talent from other EPAM locations. We started to do it, as we mentioned previously, not only after the wartime started. It started actually in 2021. We also feel comfortable that this is bringing the quality results in line with what we experienced in kind of traditional EPAM locations as well. Now, definitely second part of 2022 was a very different trend than before. That's why when you're asking about practices, how you hire, what's the speed, how recruitment working? I think we're very comfortable that we will be able to speed it up, but we didn't need to speed it up. This. I think, we're much more diversified, and we have many more kind of tools right now how to grow as soon as the growth will be there, demanded as before. Operator, I think we're running a little bit late. We have time for one more quick question if we could. Thank you. Our last question comes from the line of Jason Kupferberg with Bank of America. Your line is now open. Thanks, guys. I'll just ask a quick two-parter. I guess of all the factors impacting the revenue growth in 2023, which really surprised you the most? Then can you just speak to the type of conservatism that you feel is in the revenue guide in particular? It does sound like you're incorporating these green shoots into the guide. There's some pretty big acceleration that you're building in between Q1 and Q4. Thank you. Yeah. I think, you know, what we clearly saw in the month of January was slower demand, and, you know, specifically obviously for the ramp downs with a couple clients that we had talked about in our prepared script. Just probably the entry point to 2023 is kind of what changed. In a couple cases, it was specific to a few large customers. At the same time, you know, we've stripped those two customers out. The dialogue with our BU's as they sort of derive revenues and, you know, carefully evaluate and with their pipelines was actually, you know, there was some positive tonality associated with it. The guide really does incorporate kind of the lower starting point. You know, you know, obviously four quarters is, you know, it's 12 months, so it's hard to predict exactly where you're gonna end up in Q4. It does already, you know, suggest that we're beginning to see, you know, an improvement in potential demand relative to that we saw in November, December and January. That's kind of what gives us the confidence in the guide. At the same time, of course, we wanna make certain that we'll be able to achieve the revenue guidance for the full year. That's. Hopefully, that answers that question. Thank you. At this time, I'd like to hand the conference back to Mr. Arkadiy Dobkin for closing remarks. Thank you as always for attending today's call. As you know, any questions, and David available to help, and talk to you in three months. Thank you.