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Jun 30, 2023
EPAM Q2 2023 Earnings Report
Reported results for the second quarter ended June 30, 2023.
Key Takeaways
EPAM's second-quarter revenues reached $1.170 billion, a 2.1% year-over-year decrease. GAAP diluted EPS was $2.03, and non-GAAP diluted EPS was $2.64. The company narrows its full-year revenue expectations to $4.650 billion to $4.700 billion.
Revenues decreased to $1.170 billion, a year-over-year decrease of 2.1%.
GAAP income from operations was $144.3 million, an increase of 55.2% compared to the second quarter of 2022.
Non-GAAP income from operations was $190.8 million, an increase of 7.5% compared to the second quarter of 2022.
GAAP diluted EPS was $2.03, an increase of $1.71 compared to the second quarter of 2022.
Forward Guidance
EPAM expects revenues to be between $1.140 billion and $1.150 billion for the third quarter. GAAP diluted EPS is expected to be in the range of $1.62 to $1.70, and non-GAAP diluted EPS is expected to be in the range of $2.52 to $2.60.
Positive Outlook
- Revenue to be between $1.140 billion and $1.150 billion
- GAAP income from operations to be in the range of 10% to 11% of revenues
- Non-GAAP income from operations to be in the range of 15.5% to 16.5% of revenues
- GAAP effective tax rate to be approximately 24.0%
- Non-GAAP effective tax rate to be approximately 23.0%
Challenges Ahead
- Revenue reflects a year-over-year decline of 7% at the midpoint of the range
- Revenue on an organic constant currency basis excluding the impact of the exit from Russia will decline approximately 9% at the midpoint of the range
- GAAP income from operations includes an expected loss on the sale of its Russia operations of $18.4 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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