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Dec 31, 2019

EPAM Q4 2019 Earnings Report

EPAM reported strong Q4 2019 results, with revenue up 25.3% year-over-year and EPS of $1.29.

Key Takeaways

EPAM Systems, Inc. announced its Q4 and full year 2019 results, demonstrating industry-leading organic growth. The company's Q4 revenues reached $632.8 million, a 25.3% increase year-over-year, with a GAAP diluted EPS of $1.29 and a non-GAAP diluted EPS of $1.51. The company remains confident in its ability to deliver relevant services in a competitive environment.

Revenues increased to $632.8 million, up 25.3% year-over-year.

GAAP income from operations was $84.7 million, an increase of 8.3%.

GAAP diluted EPS was $1.29, compared to $1.05 in the fourth quarter of 2018.

Non-GAAP diluted EPS was $1.51, an increase of 18.9%.

Total Revenue
$633M
Previous year: $505M
+25.3%
EPS
$1.51
Previous year: $1.27
+18.9%
Cash from Operations
$125M
Gross Profit
$223M
Previous year: $186M
+19.8%
Cash and Equivalents
$937M
Previous year: $771M
+21.5%
Free Cash Flow
$77.6M
Previous year: $113M
-31.4%
Total Assets
$2.24B
Previous year: $1.61B
+39.2%

EPAM

EPAM

Forward Guidance

The Company expects revenue growth for 2020 to exceed 22% on both a GAAP and constant currency basis and GAAP diluted EPS to be at least $5.56 for the full year, and non-GAAP diluted EPS to be at least $6.30 for the full year.

Positive Outlook

  • The Company expects revenue growth for 2020 to exceed 22% on both a GAAP and constant currency basis
  • The Company expects GAAP income from operations to be in the range of 13% to 14% of revenues and non-GAAP income from operations to be in the range of 16% to 17% of revenues
  • The Company expects its GAAP effective tax rate to be approximately 14% and its non-GAAP effective tax rate to be approximately 23%
  • The Company expects GAAP diluted EPS to be at least $5.56 for the full year
  • The Company expects non-GAAP diluted EPS to be at least $6.30 for the full year