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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.
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.