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Jun 30, 2022

EPAM Q2 2022 Earnings Report

Reported strong second-quarter results driven by EPAM's resiliency and agility, while navigating the impact of the war in Ukraine.

Key Takeaways

EPAM Systems, Inc. reported a revenue increase of 35.6% year-over-year, reaching $1.195 billion in the second quarter of 2022. The company's GAAP diluted EPS was $0.32, while the non-GAAP diluted EPS was $2.38. The company expects revenue to be at least $1.210 billion for the third quarter.

Second quarter revenues reached $1.195 billion, a 35.6% increase year-over-year.

GAAP Income from Operations was 7.8% of revenues, and Non-GAAP Income from Operations was 14.9% of revenues.

GAAP Diluted EPS was $0.32, a decrease of 83.5%, and Non-GAAP Diluted EPS was $2.38, an increase of 16.1% year-over-year.

EPAM anticipates third-quarter revenue to be at least $1.210 billion, with GAAP Diluted EPS of at least $1.65 and Non-GAAP Diluted EPS of at least $2.48.

Total Revenue
$1.2B
Previous year: $881M
+35.6%
EPS
$2.38
Previous year: $2.05
+16.1%
Gross Profit
$349M
Previous year: $298M
+17.1%
Cash and Equivalents
$1.29B
Previous year: $1.28B
+0.8%
Free Cash Flow
$59.4M
Previous year: $46.2M
+28.4%
Total Assets
$3.56B
Previous year: $2.96B
+20.3%

EPAM

EPAM

Forward Guidance

EPAM expects revenue to be at least $1.210 billion for the third quarter, GAAP Diluted EPS to be at least $1.65 and Non-GAAP Diluted EPS to be at least $2.48.

Positive Outlook

  • Revenues will be at least $1.210 billion on a GAAP basis for the third quarter reflecting a year-over-year growth rate of at least 22% which includes an unfavorable foreign currency translation impact of approximately 4%.
  • Revenue growth on a constant currency basis will be at least 26%.
  • For the third quarter, EPAM expects GAAP income from operations to be in the range of 9.5% to 10.5% of revenues.
  • Non-GAAP income from operations to be in the range of 15% to 16% of revenues.
  • EPAM expects GAAP diluted EPS will be at least $1.65 for the quarter, and non-GAAP diluted EPS will be at least $2.48 for the quarter.