https://assets.capyfin.com/instruments/678fdc13234e27009c5d5e70.png avatar
EPAM
🇺🇸 NYSE:EPAM
View Company
OverviewEarningsDividends
•
Jun 30, 2021

EPAM Q2 2021 Earnings Report

Reported strong second quarter results and raised full year outlook.

Key Takeaways

EPAM Systems reported strong second quarter results with revenues of $881.4 million, up 39.4% year-over-year. GAAP diluted EPS was $1.94, an increase of 70.2%, and Non-GAAP diluted EPS was $2.05, an increase of 40.4% on a year-over-year basis. The company raised its full year 2021 outlook, expecting revenue growth to be at least 37% and GAAP diluted EPS to be in the range of $7.70 to $7.89.

Revenues increased to $881.4 million, a year-over-year increase of 39.4%.

GAAP income from operations was 14.2% of revenues and Non-GAAP income from operations was 17.6% of revenues.

GAAP diluted EPS was $1.94, an increase of 70.2%, and Non-GAAP diluted EPS was $2.05, an increase of 40.4% on a year-over-year basis.

EPAM raised full year 2021 outlook and now expects revenue growth to be at least 37%, GAAP diluted EPS to be in the range of $7.70 to $7.89 and Non-GAAP diluted EPS to be in the range of $8.25 to $8.44.

Total Revenue
$881M
Previous year: $632M
+39.4%
EPS
$2.05
Previous year: $1.46
+40.4%
Gross Profit
$298M
Previous year: $213M
+39.8%
Cash and Equivalents
$1.28B
Previous year: $994M
+29.1%
Free Cash Flow
$46.2M
Previous year: $135M
-65.7%
Total Assets
$2.96B
Previous year: $2.39B
+24.0%

EPAM

EPAM

Forward Guidance

EPAM expects revenues for the third quarter of 2021 to be in the range of $957 million to $965 million, reflecting a year-over-year growth rate of approximately 47% at the mid-point of the range. The company expects GAAP diluted EPS to be in the range of $1.89 to $1.96 and non-GAAP diluted EPS to be in the range of $2.15 to $2.22.

Positive Outlook

  • Revenues will be in the range of $957 million to $965 million on a GAAP basis for the third quarter reflecting a year-over-year growth rate of approximately 47% at the mid-point of the range.
  • Foreign currency translation will have an approximate 1% favorable impact on year-over-year reported revenue growth.
  • Year-over-year revenue growth on a constant currency basis to be approximately 46% at the mid-point of the range.
  • Acquisitions will contribute approximately 4.5% to reported revenues.
  • Non-GAAP diluted EPS will be in the range of $2.15 to $2.22 for the quarter.

Challenges Ahead

  • GAAP income from operations to be in the range of 13.5% to 14.5% of revenues.
  • Non-GAAP income from operations to be in the range of 17% to 18% of revenues.
  • GAAP effective tax rate to be approximately 13%.
  • Non-GAAP effective tax rate to be approximately 23%.
  • GAAP diluted EPS will be in the range of $1.89 to $1.96 for the quarter.

Company Overview

Full financial data and analysis

View EPAM