EPAM Systems Q4 2024 – Revenues Up 7.9%

By Tamara Parker • Thursday, February 20 10:40 • Permanent Link

EPAM Systems, Inc. has reported its financial results for the fourth quarter and full year of 2024. In the fourth quarter of 2024, the company achieved revenues of $1.248 billion, which marks a 7.9% increase year-over-year. On a non-GAAP basis, the income from operations was 16.7% of revenues, showing a slight increase from the previous year. Additionally, the GAAP diluted EPS increased by 8.4% to $1.80, while the non-GAAP diluted EPS saw a 3.3% increase to $2.84 compared to the same period in 2023.

For the full year 2024, revenues reached $4.728 billion, reflecting a year-over-year increase of 0.8%. The GAAP income from operations was 11.5% of revenues, up from the previous year, while the non-GAAP income from operations was 16.5% of revenues, also up from the prior year. The GAAP diluted EPS increased by 11.0% to $7.84, and the non-GAAP diluted EPS increased by 2.5% to $10.86 compared to 2023.

The company's cash provided by operating activities decreased to $130.3 million in the fourth quarter of 2024, and to $559.2 million for the full year 2024.

EPAM also provided an outlook for the full year and first quarter of 2025. For the full year, the company expects a revenue growth rate of 10.0% to 14.0%, while the first quarter is projected to see revenues in the range of $1.275 billion to $1.290 billion, reflecting a year-over-year increase of 10.0% at the midpoint of the range.

Additionally, the company anticipates that the GAAP and non-GAAP effective tax rates for the full year and first quarter will be approximately 24.0% and 19%, respectively.

In terms of diluted EPS, EPAM expects the GAAP diluted EPS to be in the range of $6.78 to $7.08 for the full year, and $1.27 to $1.37 for the first quarter. Non-GAAP diluted EPS is anticipated to be in the range of $10.45 to $10.75 for the full year, and $2.22 to $2.32 for the first quarter.

EPAM's total headcount as of December 31, 2024, was approximately 61,200, including approximately 55,100 delivery professionals, marking an increase of 16.3% from the previous year. Today the company's shares have moved -14.9% to a price of $219.62. For more information, read the company's full 8-K submission here.

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