EPAM Q1 2020 Earnings Report
Key Takeaways
EPAM Systems reported strong first-quarter results with revenues of $651.4 million, a 24.9% year-over-year increase. GAAP diluted EPS was $1.47, and non-GAAP diluted EPS was $1.43. The company is focused on employee safety and partnering with customers during the COVID-19 pandemic.
Revenues increased to $651.4 million, up 24.9% year-over-year.
GAAP income from operations was $87.5 million, a 35.3% increase compared to Q1 2019.
Non-GAAP income from operations was $105.3 million, an 18.1% increase compared to Q1 2019.
GAAP diluted EPS was $1.47, a 38.7% increase compared to Q1 2019.
EPAM
EPAM
Forward Guidance
EPAM expects revenues between $590 million and $605 million for the second quarter, reflecting approximately 8.3% year-over-year growth at the mid-point. GAAP income from operations is projected to be 11% to 13% of revenues, and non-GAAP income from operations is expected to be 14% to 16% of revenues. GAAP diluted EPS is projected to be between $0.93 and $1.12, while non-GAAP diluted EPS is expected to be between $1.12 and $1.31.
Positive Outlook
- Revenue growth on a constant currency basis (at mid-point of the range) 9.3%
- GAAP income from operations as a percentage of revenues 11% to 13%
- Stock-based compensation expenses 2.5%
- Amortization of purchased intangible assets 0.5%
- Non-GAAP income from operations as a percentage of revenues 14% to 16%
Challenges Ahead
- Revenue growth (at mid-point of the range) 8.3%
- Foreign exchange rates impact (1)%
- GAAP effective tax rate (approximately) 13%
- Tax effect on non-GAAP adjustments 3.8%
- Non-GAAP effective tax rate (approximately) 23%