NYSE$EPAM

EPAM Systems Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported solid results in Q1 2023, driven by the dedication of its talented team.

EPAM Systems reported a revenue increase of 3.4% year-over-year, reaching $1.211 billion for the first quarter of 2023. The company's GAAP diluted EPS increased by 13.8% to $1.73, while non-GAAP diluted EPS decreased slightly by 0.8% to $2.47. The company updates full year outlook with revenue to be in the range of $4.950 billion to $5.000 billion and GAAP diluted EPS to be in the range of $8.11 to $8.31.

  • Revenues increased to $1.211 billion, up 3.4% year-over-year.
  • GAAP income from operations was 9.9% of revenues.
  • Non-GAAP income from operations was 14.7% of revenues.
  • GAAP diluted EPS was $1.73, an increase of 13.8% year-over-year.

Headline financials

Total Revenue

$1.21B

Previous: $1.17B+3.4%
EPS (adj)

$2.47

Previous: $2.49-0.8%
Operating Margin

9.9%

Previous: 11.0%-10.0%
Non-GAAP Operating Margin

14.7%

Previous: 16.1%-8.7%
Capital Expenditures

-$7.91M

Previous: -$23.3M+66.0%
Free Cash Flow

$94.4M

Previous: $66.4M+42.0%
Net Income

$102M

Previous: $89.7M+14.0%
Operating Income

$120M

Previous: $129M-6.9%
Gross Profit

$355M

Previous: $391M-9.1%
Cash & Equivalents

$1.75B

Previous: $1.28B+37.1%
Total Assets

$4.07B

Previous: $3.51B+16.1%
Stock-Based Comp

$38.6M

Previous: $7.11M+442.4%

Revenue & EPS history

EPAM · Revenue · Quarterly

$1.21B

Q1 2023+3.4%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

EPAM expects revenues to be in the range of $4.950 billion to $5.000 billion, GAAP Diluted EPS to be in the range of $8.11 to $8.31 and Non-GAAP Diluted EPS to be in the range of $10.60 to $10.80 for the full year. For the second quarter, EPAM expects revenues to be in the range of $1.195 billion to $1.205 billion, GAAP Diluted EPS to be in the range of $1.82 to $1.90 and Non-GAAP Diluted EPS to be in the range of $2.38 to $2.46.

Tailwinds

  • Full year revenues are expected to be in the range of $4.950 billion to $5.000 billion.
  • Full year GAAP diluted EPS is projected to be between $8.11 and $8.31.
  • Full year Non-GAAP diluted EPS is expected to be in the range of $10.60 to $10.80.
  • Second quarter revenues are projected to be between $1.195 billion and $1.205 billion.
  • Second quarter GAAP diluted EPS is expected to be in the range of $1.82 to $1.90.

Headwinds

  • Revenue growth for the second quarter is expected to be less than 1% year-over-year.
  • Uneven improvement in demand is expected for the full year.
  • Second quarter revenue growth on an organic constant currency basis excluding the impact of the exit from Russia will be less than 1% at the midpoint of the range.
  • Full year revenue growth on an organic constant currency basis excluding the impact of the exit from Russia will be over 3% at the midpoint of the range.
  • Second quarter GAAP income from operations to be in the range of 10.0% to 11.0% of revenues.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.5%

Avg return

30 days after

58%

33 / 57 earnings

Positive

+15.5%

Q2 2022

Best reaction

-26.4%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.0%-11.1%-8.3%
Q4 2025-17.9%-23.2%-18.0%
Q3 2025+4.4%+12.0%+26.5%
Q1 2025+12.9%+17.4%+11.9%
Q4 2024-12.8%-18.4%-32.1%
Q3 2024+15.2%+21.2%+21.1%
Q2 2024-7.2%-5.4%-1.6%
Q1 2024-26.4%-24.9%-29.0%
Q4 2023+12.2%+7.1%+7.5%
Q3 2023+11.1%+12.9%+19.5%
Q2 2023+4.3%+2.8%+9.1%
Q1 2023-14.3%-14.1%-4.0%
Q4 2022-7.7%-11.8%-23.7%
Q3 2022-4.4%-2.2%+13.1%
Q2 2022+15.5%+13.4%+11.4%
Q1 2022+11.0%+2.2%+6.3%
Q4 2021-1.6%-5.0%-34.6%
Q3 2021+3.7%+5.5%-12.2%
Q2 2021+5.1%+6.2%+13.1%
Q1 2021-0.2%-1.6%+4.6%
Q4 2020-4.0%-5.1%-3.1%
Q3 2020+4.1%-4.9%-1.2%
Q2 2020+1.3%+0.6%+7.5%
Q1 2020+0.1%-0.8%+6.8%
Q4 2019-3.6%-9.6%-30.0%
Q3 2019+6.1%+11.9%+17.7%
Q2 2019+3.8%+5.5%+7.3%
Q1 2019+0.4%-1.2%+3.7%
Q4 2018+3.4%+4.1%+13.3%
Q3 2018+5.7%+4.6%+9.0%
Q2 2018-4.9%-0.2%+8.7%
Q1 2018+9.6%+7.4%+6.8%
Q4 2017+1.4%+0.7%+6.1%
Q3 2017+10.0%+11.2%+9.3%
Q2 2017-1.3%-3.2%-2.9%
Q1 2017+3.5%+3.7%+10.0%
Q4 2016+4.3%+7.1%+7.7%
Q3 2016-1.6%+1.6%+1.2%
Q2 2016-5.0%-4.9%+0.8%
Q1 2016+0.5%
Q4 2015+8.7%
Q3 2015-8.9%
Q2 2015-5.0%
Q1 2015-0.8%
Q4 2014+6.9%
Q3 2014-2.4%
Q2 2014+5.1%
Q1 2014+6.3%
Q4 2013-7.6%
Q3 2013-1.5%
Q2 2013+7.1%
Q1 2013-0.1%
Q4 2012+4.4%
Q3 2012+8.1%
Q2 2012+4.4%
Q1 2012-11.8%
Q4 2011+8.0%
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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