EPAM Reports Results for Fourth Quarter and Full Year 2024

Core Insights - EPAM Systems, Inc. reported strong fourth quarter results for 2024, achieving a year-over-year organic growth and completing significant acquisitions to enhance its global strategy [1][4][5] Fourth Quarter 2024 Highlights - Revenues reached $1.248 billion, reflecting a 7.9% increase year-over-year, with an organic constant currency growth of 1.0% compared to Q4 2023 [4][5] - GAAP income from operations was $136.5 million, up 11.4% from $122.5 million in Q4 2023, while Non-GAAP income from operations increased by 3.9% to $208.2 million [4][5] - GAAP diluted EPS was $1.80, an increase of 8.4%, and Non-GAAP diluted EPS was $2.84, up 3.3% year-over-year [4][5] Full Year 2024 Highlights - Total revenues for 2024 were $4.728 billion, a slight increase of 0.8% year-over-year, with a decline of 1.7% on an organic constant currency basis [4][5] - GAAP income from operations was $544.6 million, an increase of 8.6% compared to 2023, while Non-GAAP income from operations rose by 1.8% to $779.2 million [4][5] - GAAP diluted EPS for the year was $7.84, up 11.0%, and Non-GAAP diluted EPS was $10.86, an increase of 2.5% year-over-year [4][5] Acquisitions and Strategic Developments - The company completed the acquisition of NEORIS, enhancing its offerings in Latin America, and First Derivative, which strengthens its financial services consulting capabilities [5][6] - These acquisitions are expected to broaden EPAM's global delivery capabilities and client portfolio, particularly in financial services [5][6] Cash Flow and Financial Position - Cash provided by operating activities in Q4 2024 was $130.3 million, down from $171.4 million in Q4 2023, while total cash and equivalents decreased to $1.290 billion, a 36.8% drop from $2.043 billion in the previous year [8][6] - The company repurchased 53 thousand shares for $13.0 million in Q4 2024, totaling 1,854 thousand shares repurchased for $398.0 million throughout the year [8][6] 2025 Outlook - For Q1 2025, EPAM expects revenues between $1.275 billion and $1.290 billion, indicating a year-over-year increase of approximately 10.0% at the midpoint [7][16] - The company anticipates a revenue growth rate for 2025 in the range of 10.0% to 14.0%, with organic constant currency growth expected to be between 1.0% and 5.0% [7][16]