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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.
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.
Historical Earnings Impact
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