https://assets.capyfin.com/instruments/678fdc13234e27009c5d5e70.png avatar
EPAM
🇺🇸 NYSE:EPAM
View Company
OverviewEarningsDividends
•
Dec 31, 2023

EPAM Q4 2023 Earnings Report

EPAM's Q4 2023 performance reflected navigating a volatile demand and macro-economic environment, rebalancing delivery platforms, and refining growth strategy.

Key Takeaways

EPAM Systems, Inc. reported Q4 2023 revenues of $1.157 billion, a 6.0% year-over-year decrease. GAAP diluted EPS was $1.66, a 36.4% decrease, and non-GAAP diluted EPS was $2.75, a 6.1% decrease year-over-year.

Revenues decreased to $1.157 billion, a 6.0% year-over-year decrease.

GAAP income from operations was 10.6% of revenues; Non-GAAP income from operations was 17.3% of revenues.

GAAP diluted EPS was $1.66, a 36.4% decrease year-over-year.

Non-GAAP diluted EPS was $2.75, a 6.1% decrease year-over-year.

Total Revenue
$1.16B
Previous year: $1.23B
-6.0%
EPS
$2.75
Previous year: $2.93
-6.1%
Cash from Operations
$171M
Previous year: $186M
-7.9%
Gross Profit
$336M
Previous year: $399M
-15.6%
Cash and Equivalents
$2.04B
Previous year: $1.68B
+21.1%
Free Cash Flow
$161M
Previous year: $165M
-1.9%
Total Assets
$4.35B
Previous year: $4.01B
+8.6%

EPAM

EPAM

Forward Guidance

EPAM provided revenue and EPS guidance for Q1 2024 and full year 2024.

Positive Outlook

  • The Company expects the year-over-year growth rate for revenues to be in the range of 1% to 4% for 2024.
  • For the full year, EPAM expects GAAP income from operations to be in the range of 9.5% to 10.5% of revenues and non-GAAP income from operations to be in the range of 14.5% to 15.5% of revenues.
  • EPAM expects GAAP diluted EPS will be in the range of $7.20 to $7.60 for the year, and non-GAAP diluted EPS will be in the range of $10.00 to $10.40 for the year.
  • The Company expects revenues will be in the range of $1.155 billion to $1.165 billion for the first quarter reflecting a year-over-year decline of 4% at the midpoint of the range.
  • EPAM expects GAAP diluted EPS will be in the range of $1.79 to $1.87 for the quarter, and non-GAAP diluted EPS will be in the range of $2.26 to $2.34 for the quarter.

Challenges Ahead

  • This guidance also reflects a minimal contribution from inorganic revenues.
  • For the first quarter, EPAM expects GAAP income from operations to be in the range of 9% to 10% of revenues and non-GAAP income from operations to be in the range of 13.5% to 14.5% of revenues.
  • The Company expects its GAAP effective tax rate to be approximately 11% and its non-GAAP effective tax rate to be approximately 24%.
  • The Company expects weighted average diluted shares outstanding for the quarter of 59.1 million.
  • The Company expects foreign currency translation will have a negligible impact on year-over-year revenue decline during the quarter.

Company Overview

Full financial data and analysis

View EPAM