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Sep 30, 2024
EPAM Q3 2024 Earnings Report
EPAM's results for Q3 2024 were announced, with revenues up 1.3% year-over-year and increased full-year outlook.
Key Takeaways
EPAM reported a revenue increase of 1.3% year-over-year, reaching $1.168 billion in Q3 2024. The company's GAAP diluted EPS was $2.37, and non-GAAP diluted EPS was $3.12. EPAM has raised its full-year outlook for revenues and EPS.
Revenues increased to $1.168 billion, up 1.3% year-over-year.
GAAP income from operations was 15.2% of revenues, and non-GAAP income from operations was 19.1% of revenues.
GAAP diluted EPS was $2.37, an increase of $0.72 year-over-year.
Non-GAAP diluted EPS was $3.12, an increase of $0.39 year-over-year.
EPAM
EPAM
Forward Guidance
EPAM expects revenues for the fourth quarter to be in the range of $1.205 billion to $1.215 billion, with GAAP diluted EPS in the range of $1.73 to $1.81 and non-GAAP diluted EPS in the range of $2.70 to $2.78.
Positive Outlook
- Revenue expected to be between $1.205 billion and $1.215 billion.
- Year-over-year revenue growth of 4.6% at the midpoint of the range.
- GAAP diluted EPS expected to be between $1.73 and $1.81.
- Non-GAAP diluted EPS expected to be between $2.70 and $2.78.
- Inorganic revenue contribution of 5.7%, with 4.7% from NEORIS.
Challenges Ahead
- Organic constant currency revenue excluding the impact of the exit from Russia is expected to decline 1.5% at the midpoint of the range.
- GAAP effective tax rate expected to be approximately 26%.
- Non-GAAP effective tax rate expected to be approximately 24%.
- Potential future one-time charges including asset impairments.
- Expenses incurred in connection with future cost optimization actions.