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Dec 31, 2024
EPAM Q4 2024 Earnings Report
EPAM reported strong Q4 2024 results with increased revenue and EPS, driven by strategic acquisitions and operational efficiency.
Key Takeaways
EPAM Systems reported Q4 2024 revenue of $1.248 billion, reflecting a 7.9% year-over-year increase. GAAP income from operations was $136.5 million, while Non-GAAP income from operations was $208.2 million. GAAP EPS rose to $1.80, and Non-GAAP EPS increased to $2.84. The company completed acquisitions of NEORIS and First Derivative, strengthening its market position. Cash provided by operating activities was $130.3 million.
Revenue grew 7.9% year-over-year to $1.248 billion.
GAAP EPS increased 8.4% to $1.80; Non-GAAP EPS grew 3.3% to $2.84.
Operating income increased to $136.5 million, up 11.4% year-over-year.
Acquisitions of NEORIS and First Derivative expanded global reach and service capabilities.
Forward Guidance
EPAM expects revenue growth between 10.0% and 14.0% for FY 2025, with a GAAP operating margin of 9.0% to 10.0% and a non-GAAP operating margin of 14.5% to 15.5%. GAAP diluted EPS is projected between $6.78 and $7.08, while non-GAAP diluted EPS is expected between $10.45 and $10.75.
Positive Outlook
- Revenue growth expected between 10.0% and 14.0% in FY 2025.
- Non-GAAP operating margin projected between 14.5% and 15.5%.
- Continued investment in talent and technology to drive growth.
- Integration of NEORIS and First Derivative to enhance market positioning.
- Focus on GenAI and digital transformation initiatives.
Challenges Ahead
- Macroeconomic uncertainties may impact client spending.
- Higher effective tax rate expected at approximately 24%.
- Ongoing cost optimization programs may result in restructuring expenses.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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