EPAM Q4 2024 Earnings Report
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.
EPAM Revenue
EPAM EPS
EPAM Revenue by Geographic Location
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.
- Foreign exchange fluctuations could impact financial performance.
- Competitive pressure in digital transformation and consulting space.