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Dec 31, 2020

EPAM Q4 2020 Earnings Report

Reported a revenue increase of 14.3% year-over-year, GAAP diluted EPS of $1.46, and Non-GAAP diluted EPS of $1.81.

Key Takeaways

EPAM Systems reported strong Q4 2020 results, with revenues reaching $723.5 million, a 14.3% increase year-over-year. GAAP diluted EPS was $1.46, and Non-GAAP diluted EPS was $1.81. The company's performance was driven by its diverse offerings and adaptability to the increasing digital changes across industries.

Revenues increased by 14.3% year-over-year to $723.5 million.

GAAP income from operations was 15.5% of revenues.

Non-GAAP income from operations was 18.8% of revenues.

GAAP diluted EPS reached $1.46, while Non-GAAP diluted EPS was $1.81.

Total Revenue
$723M
Previous year: $633M
+14.3%
EPS
$1.81
Previous year: $1.51
+19.9%
Cash from Operations
$159M
Previous year: $125M
+27.8%
Gross Profit
$258M
Previous year: $223M
+15.7%
Cash and Equivalents
$1.32B
Previous year: $937M
+41.2%
Free Cash Flow
$141M
Previous year: $77.6M
+81.7%
Total Assets
$2.72B
Previous year: $2.24B
+21.3%

EPAM

EPAM

Forward Guidance

EPAM Systems provided guidance for the full year 2021 and the first quarter of 2021.

Positive Outlook

  • Revenue growth for 2021 is expected to be at least 23% on a GAAP basis.
  • Foreign currency translation is expected to have a 1% favorable impact on full year reported revenues.
  • GAAP income from operations is expected to be in the range of 13.5% to 14.5% of revenues for the full year.
  • GAAP diluted EPS is projected to be in the range of $6.65 to $6.86 for the full year.
  • Revenues for Q1 2021 will be in the range of $757 million to $765 million.

Challenges Ahead

  • The Company expects its GAAP effective tax rate to be approximately 12% for the full year.
  • The Company expects its non-GAAP effective tax rate to be approximately 23% for the full year.
  • The Company expects weighted average diluted shares outstanding for the year of 59.2 million.
  • The Company expects its GAAP effective tax rate to be approximately 1% for Q1 2021.
  • The Company expects its non-GAAP effective tax rate to be approximately 23% for Q1 2021.