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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.
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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