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EPAM
🇺🇸 NYSE:EPAM
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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.

Total Revenue
$1.21B
Previous year: $1.17B
+3.3%
EPS
$2.47
Previous year: $2.49
-0.8%
Cash from Operations
$87.3M
Gross Profit
$355M
Previous year: $391M
-9.1%
Cash and Equivalents
$1.75B
Previous year: $1.28B
+37.1%
Free Cash Flow
$79.4M
Previous year: -$75.1M
-205.7%
Total Assets
$4.07B
Previous year: $3.51B
+16.1%

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.

Company Overview

Full financial data and analysis

View EPAM