NYSE$EPAM

EPAM Systems Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong second-quarter results driven by EPAM's resiliency and agility, while navigating the impact of the war in Ukraine.

EPAM Systems, Inc. reported a revenue increase of 35.6% year-over-year, reaching $1.195 billion in the second quarter of 2022. The company's GAAP diluted EPS was $0.32, while the non-GAAP diluted EPS was $2.38. The company expects revenue to be at least $1.210 billion for the third quarter.

  • Second quarter revenues reached $1.195 billion, a 35.6% increase year-over-year.
  • GAAP Income from Operations was 7.8% of revenues, and Non-GAAP Income from Operations was 14.9% of revenues.
  • GAAP Diluted EPS was $0.32, a decrease of 83.5%, and Non-GAAP Diluted EPS was $2.38, an increase of 16.1% year-over-year.
  • EPAM anticipates third-quarter revenue to be at least $1.210 billion, with GAAP Diluted EPS of at least $1.65 and Non-GAAP Diluted EPS of at least $2.48.

Headline financials

Total Revenue

$1.19B

Previous: $881M+35.6%
EPS (adj)

$2.38

Previous: $2.05+16.1%
Operating Margin

7.8%

Previous: 14.2%-45.1%
Non-GAAP Operating Margin

14.9%

Previous: 17.6%-15.3%
Capital Expenditures

-$41.4M

Previous: -$33.8M-22.7%
Free Cash Flow

-$22.8M

Previous: $80.9M-128.2%
Net Income

$18.6M

Previous: $115M-83.8%
Operating Income

$93M

Previous: $125M-25.7%
Gross Profit

$349M

Previous: $298M+17.1%
Cash & Equivalents

$1.29B

Previous: $1.28B+0.8%
Total Assets

$3.56B

Previous: $2.96B+20.3%
Stock-Based Comp

$27.9M

Previous: $23.9M+16.7%

Revenue & EPS history

EPAM · Revenue · Quarterly

$1.19B

Q2 2022+35.6%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

EPAM expects revenue to be at least $1.210 billion for the third quarter, GAAP Diluted EPS to be at least $1.65 and Non-GAAP Diluted EPS to be at least $2.48.

Tailwinds

  • Revenues will be at least $1.210 billion on a GAAP basis for the third quarter reflecting a year-over-year growth rate of at least 22% which includes an unfavorable foreign currency translation impact of approximately 4%.
  • Revenue growth on a constant currency basis will be at least 26%.
  • For the third quarter, EPAM expects GAAP income from operations to be in the range of 9.5% to 10.5% of revenues.
  • Non-GAAP income from operations to be in the range of 15% to 16% of revenues.
  • EPAM expects GAAP diluted EPS will be at least $1.65 for the quarter, and non-GAAP diluted EPS will be at least $2.48 for the quarter.

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 Q2 2022

Historical avgQ2 2022

+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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