NYSE$EPAM

EPAM Systems Inc. · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

EPAM reported strong Q4 2024 results with increased revenue and EPS, driven by strategic acquisitions and operational efficiency.

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.

Headline financials

Total Revenue

$1.25B

Previous: $1.16B+7.9%
EPS (adj)

$2.84

Previous: $2.75+3.3%
Revenue Growth (Organic Constant Currency)

2.9%

No prior period
Operating Margin

10.9%

Previous: 10.6%+2.8%
Non-GAAP Operating Margin

16.7%

Previous: 17.3%-3.5%
Net Income

$103M

Previous: $97.6M+5.9%
Operating Income

$137M

Previous: $122M+11.4%

Revenue & EPS history

EPAM · Revenue · Quarterly

$1.25B

Q4 2024+7.9%vs Q4 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q4 2024

Historical avgQ4 2024

+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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