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Sep 30, 2021

EPAM Q3 2021 Earnings Report

Reported strong results and raised full year outlook.

Key Takeaways

EPAM Systems reported strong third-quarter results with revenues of $988.5 million, up 51.6% year-over-year. GAAP diluted EPS was $1.95, an increase of 27.5%, and Non-GAAP diluted EPS was $2.42, an increase of 46.7% year-over-year. The company raised its full year 2021 outlook, expecting revenue growth of at least 40% and GAAP diluted EPS to be in the range of $7.86 to $7.93 and Non-GAAP diluted EPS to be in the range of $8.72 to $8.79.

Revenues were $988.5 million, up 51.6% year-over-year.

GAAP income from operations was 14.6% of revenues and Non-GAAP income from operations was 18.2% of revenues.

GAAP diluted EPS was $1.95, an increase of 27.5% year-over-year.

Non-GAAP diluted EPS was $2.42, an increase of 46.7% year-over-year.

Total Revenue
$989M
Previous year: $652M
+51.6%
EPS
$2.42
Previous year: $1.65
+46.7%
Gross Profit
$335M
Previous year: $229M
+46.5%
Cash and Equivalents
$1.27B
Previous year: $1.16B
+9.1%
Free Cash Flow
$185M
Previous year: $166M
+11.6%
Total Assets
$3.24B
Previous year: $2.56B
+26.9%

EPAM

EPAM

Forward Guidance

EPAM expects revenues for the fourth quarter to be in the range of $1.075 billion to $1.085 billion, reflecting a year-over-year growth rate of approximately 49% at the mid-point of the range. GAAP income from operations is expected to be in the range of 13.5% to 14.5% of revenues and non-GAAP income from operations to be in the range of 17% to 18% of revenues. GAAP diluted EPS is expected to be in the range of $2.11 to $2.18, and non-GAAP diluted EPS to be in the range of $2.44 to $2.51.

Positive Outlook

  • Revenue growth of approximately 49% year-over-year at the mid-point of the range.
  • Acquisitions are expected to contribute approximately 8% to reported revenues.
  • 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.
  • Non-GAAP diluted EPS to be in the range of $2.44 to $2.51.