EPAM(EPAM) - 2024 Q4 - Annual Results

Financial Performance - Revenues for Q4 2024 were $1.248 billion, representing a year-over-year increase of 7.9$1.80, an increase of 8.4% compared to $1.66 in Q4 2023[6] - Full year 2024 revenues reached$4.728 billion, up 0.8% year-over-year[9] - GAAP income from operations for the full year 2024 was $544.6 million, an increase of 8.6$501.2 million in 2023[9] - Net income for the three months ended December 31, 2024, was $103,299, up from$97,554 in the prior year, reflecting a growth of 7.0%[21] - Basic net income per share increased to $1.82 for the three months ended December 31, 2024, compared to$1.69 for the same period in 2023[21] - Operating income for the three months ended December 31, 2024, was $136,512, an increase from$122,494 in the same period of 2023[21] - Total adjustments to GAAP net income for the year ended December 31, 2024, amounted to $60.1 million, compared to$64.2 million in 2023, reflecting a decrease of 6.5%[25] Future Guidance - For 2025, the company expects year-over-year revenue growth of 10.0% to 14.0%[10] - GAAP diluted EPS guidance for 2025 is projected to be between $6.78 and$7.08[10] - The company expects revenue growth of 10.0% for Q1 2025 and between 10.0% to 14.0% for the full year 2025[34] - Non-GAAP income from operations as a percentage of revenues is projected to be between 12.5% to 13.5% for Q1 2025 and 14.5% to 15.5% for the full year 2025[34] - GAAP diluted earnings per share is estimated to be between $1.27 to$1.37 for Q1 2025 and $6.78 to$7.08 for the full year 2025[36] - Inorganic revenue growth is expected to decline by 11.4% in Q1 2025 and 9.9% for the full year 2025[34] Operational Highlights - Cash provided by operating activities in Q4 2024 was $130.3 million, down from$171.4 million in Q4 2023[9] - Total headcount as of December 31, 2024, was approximately 61,200, with a 16.3% increase in delivery professionals from the previous year[9] - The company recorded a benefit of 68.8 million from research & development government incentives in Poland for the full year 2024[9] - Total current assets decreased to 2,426,248 as of December 31, 2024, down from $3,091,361 as of December 31, 2023[23] - Total assets increased to$4,750,473 as of December 31, 2024, compared to $4,352,365 as of December 31, 2023[23] - Total liabilities increased to$1,119,322 as of December 31, 2024, from $880,895 as of December 31, 2023[23] - The company’s retained earnings increased to$2,555,796 as of December 31, 2024, compared to $2,501,107 as of December 31, 2023[23] Acquisitions and Strategic Moves - The company completed the acquisition of NEORIS and First Derivative, enhancing its capabilities in Latin America and financial services[6] - The company recorded a loss on the sale of its remaining operations in Russia of approximately$25.9 million during the year ended December 31, 2023[30] Expenses and Charges - Stock-based compensation expenses increased to $22.1 million for Q4 2024, up from$19.2 million in Q4 2023, representing a 9.7% increase[25] - Humanitarian support expenses related to Ukraine amounted to $3.1 million in Q4 2024, compared to$0.8 million in Q4 2023, indicating a significant increase[25] - Cost Optimization charges for the year ended December 31, 2024, were $31.3 million, down from$35.1 million in 2023, showing a reduction of 10.8%[25] - The company anticipates an effective tax rate of approximately 24% for both Q1 2025 and the full year 2025[35] Foreign Exchange Impact - The company reported a foreign exchange loss of $5,632 for the three months ended December 31, 2024, compared to a loss of$9,053 in the same period of 2023[21] - The organic constant currency revenue growth for the three months ended December 31, 2024, was 1.0%, while the inorganic revenue growth was -7.3%[24]