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Mar 31, 2023
EPAM Q1 2023 Earnings Report
Reported solid results in Q1 2023, driven by the dedication of its talented team.
Key Takeaways
EPAM Systems reported a revenue increase of 3.4% year-over-year, reaching $1.211 billion for the first quarter of 2023. The company's GAAP diluted EPS increased by 13.8% to $1.73, while non-GAAP diluted EPS decreased slightly by 0.8% to $2.47. The company updates full year outlook with revenue to be in the range of $4.950 billion to $5.000 billion and GAAP diluted EPS to be in the range of $8.11 to $8.31.
Revenues increased to $1.211 billion, up 3.4% year-over-year.
GAAP income from operations was 9.9% of revenues.
Non-GAAP income from operations was 14.7% of revenues.
GAAP diluted EPS was $1.73, an increase of 13.8% year-over-year.
EPAM
EPAM
Forward Guidance
EPAM expects revenues to be in the range of $4.950 billion to $5.000 billion, GAAP Diluted EPS to be in the range of $8.11 to $8.31 and Non-GAAP Diluted EPS to be in the range of $10.60 to $10.80 for the full year. For the second quarter, EPAM expects revenues to be in the range of $1.195 billion to $1.205 billion, GAAP Diluted EPS to be in the range of $1.82 to $1.90 and Non-GAAP Diluted EPS to be in the range of $2.38 to $2.46.
Positive Outlook
- Full year revenues are expected to be in the range of $4.950 billion to $5.000 billion.
- Full year GAAP diluted EPS is projected to be between $8.11 and $8.31.
- Full year Non-GAAP diluted EPS is expected to be in the range of $10.60 to $10.80.
- Second quarter revenues are projected to be between $1.195 billion and $1.205 billion.
- Second quarter GAAP diluted EPS is expected to be in the range of $1.82 to $1.90.
Challenges Ahead
- Revenue growth for the second quarter is expected to be less than 1% year-over-year.
- Uneven improvement in demand is expected for the full year.
- Second quarter revenue growth on an organic constant currency basis excluding the impact of the exit from Russia will be less than 1% at the midpoint of the range.
- Full year revenue growth on an organic constant currency basis excluding the impact of the exit from Russia will be over 3% at the midpoint of the range.
- Second quarter GAAP income from operations to be in the range of 10.0% to 11.0% of revenues.