EPAM Systems Reports Q4 and Full Year 2024 Results

EPAM Systems, Inc., a leading digital transformation services and product engineering company, has released its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a year-over-year increase in revenues and earnings, despite a challenging economic environment.

Financial Highlights

For the fourth quarter of 2024, EPAM reported revenues of $1.248 billion, marking a 7.9% increase compared to the same period in 2023. GAAP income from operations was 10.9% of revenues, while non-GAAP income from operations stood at 16.7%. GAAP diluted earnings per share (EPS) increased by 8.4% to $1.80, and non-GAAP diluted EPS rose by 3.3% to $2.84.

For the full year 2024, revenues reached $4.728 billion, a slight increase of 0.8% year-over-year. GAAP income from operations was 11.5% of revenues, and non-GAAP income from operations was 16.5%. GAAP diluted EPS increased by 11.0% to $7.84, while non-GAAP diluted EPS saw a 2.5% increase to $10.86.

Business and Operational Highlights

EPAM completed the acquisitions of NEORIS and First Derivative during the fourth quarter, enhancing its capabilities in Latin America and financial services consulting, respectively. The company also recorded a benefit of $68.8 million for research and development government incentives in Poland, which positively impacted its cost of revenues.

Strategic Initiatives and Corporate Developments

EPAM repurchased 53 thousand shares of its common stock for $13.0 million in the fourth quarter and 1.854 million shares for $398.0 million during the full year. As of December 31, 2024, the company had $437.0 million remaining under its share repurchase authorization. The company's cash, cash equivalents, and restricted cash totaled $1.290 billion, a decrease of $752.7 million from the previous year, primarily due to acquisition payments.

Management's Perspective

Arkadiy Dobkin, CEO & President of EPAM, expressed satisfaction with the company's performance, highlighting the return to year-over-year organic growth and the strategic acquisitions that bolster EPAM's global strategy. Dobkin noted that 2025 is expected to be a year of transition as clients balance cost focus with the need for transformational and GenAI journeys.

Future Outlook

For the full year 2025, EPAM expects revenue growth to be in the range of 10.0% to 14.0%, with GAAP income from operations between 9.0% and 10.0% of revenues. Non-GAAP income from operations is projected to be between 14.5% and 15.5% of revenues. The company anticipates GAAP diluted EPS to be in the range of $6.78 to $7.08 and non-GAAP diluted EPS to be between $10.45 and $10.75.

SEC Filing: EPAM Systems, Inc. [ EPAM ] - 8-K - Feb. 19, 2025