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EPAM
🇺🇸 NYSE:EPAM
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Jun 30, 2024

EPAM Q2 2024 Earnings Report

Reported a decrease in revenue and EPS due to challenging macro-demand environment.

Key Takeaways

EPAM reported a decrease in revenue by 2.0% year-over-year to $1.147 billion for Q2 2024. GAAP diluted EPS was $1.70, a decrease of $0.33 year-over-year, while non-GAAP diluted EPS was $2.45, a decrease of $0.19 year-over-year. The company narrows full year revenue guidance to $4.590 billion to $4.625 billion.

Revenues decreased to $1.147 billion, a year-over-year decrease of 2.0%.

GAAP income from operations was 10.5% of revenues and non-GAAP income from operations was 15.2% of revenues.

GAAP diluted EPS was $1.70, a decrease of $0.33 year-over-year, and non-GAAP diluted EPS was $2.45, a decrease of $0.19 year-over-year.

The Board of Directors approved a new share repurchase program with authorization to purchase up to $500 million of EPAM common stock.

Total Revenue
$1.15B
Previous year: $1.17B
-2.0%
EPS
$2.45
Previous year: $2.64
-7.2%
Gross Profit
$312M
Previous year: $361M
-13.6%
Cash and Equivalents
$1.79B
Previous year: $1.78B
+0.6%
Free Cash Flow
$52.3M
Previous year: $82.2M
-36.3%
Total Assets
$4.22B
Previous year: $4.09B
+3.2%

EPAM

EPAM

Forward Guidance

EPAM expects revenues for the full year to be between $4.590 billion and $4.625 billion. For the third quarter, EPAM expects revenues to be in the range of $1.145 billion to $1.155 billion, GAAP diluted EPS to be in the range of $1.75 to $1.83 and non-GAAP diluted EPS to be in the range of $2.65 to $2.73.

Positive Outlook

  • Company expects revenues will be in the range of $1.145 billion to $1.155 billion for the third quarter.
  • Company expects GAAP diluted EPS will be in the range of $1.75 to $1.83 for the quarter.
  • Company expects non-GAAP diluted EPS will be in the range of $2.65 to $2.73 for the quarter.
  • Company narrows its expected range for revenues to $4.590 billion to $4.625 billion for the full year.
  • Company expects GAAP diluted EPS to now be in the range of $7.18 to $7.38 and non-GAAP diluted EPS to now be in the range of $10.20 to $10.40.

Challenges Ahead

  • Company is expecting no aggregate improvement in demand for the remainder of the year.
  • Revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline 2.9% at the midpoint of the range for the full year.
  • Company expects revenues will be in the range of $1.145 billion to $1.155 billion for the third quarter reflecting a year-over-year decline of 0.2% at the midpoint of the range.
  • Revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline 1.4% at the midpoint of the range for the third quarter.
  • GAAP effective tax rate and its non-GAAP effective tax rate to be approximately 24% for the third quarter.

Company Overview

Full financial data and analysis

View EPAM