NEWTOWN, PA — EPAM Systems, Inc. (NYSE: EPAM) recently disclosed its financial outcomes for the first quarter ended March 31, 2024, revealing a slight downturn in revenues but maintaining a solid operational income margin.
The company announced first-quarter revenues of $1.165 billion, marking a 3.8% decline compared to the same period last year. Despite this dip, EPAM showcased resilience with a GAAP income from operations at 9.5% of revenues and an even more robust non-GAAP income from operations at 14.9%.
Earnings per share (EPS) also indicated mixed trends; GAAP diluted EPS climbed to $1.97, up $0.24 from the previous year, while non-GAAP diluted EPS slightly decreased by $0.01 to $2.46.
Looking ahead, EPAM has revised its full-year revenue expectations to between $4.575 billion and $4.675 billion. The forecast for GAAP diluted EPS is set between $7.34 and $7.64, with non-GAAP diluted EPS anticipated to range from $10.00 to $10.30.
For the upcoming second quarter, the company projects revenues to fall between $1.135 billion and $1.145 billion, reflecting a year-over-year decrease of about 2.6% at the midpoint. This adjustment acknowledges a challenging demand environment, with the CEO & President Arkadiy Dobkin stating, “Our solid performance in the first quarter of 2024 reflects our level of adaptability to a challenging demand environment, which we now believe is unlikely to improve this year to the degree we expected one quarter ago.”
EPAM’s strategic response includes refining global operations and investing in areas like optimized and AI-enabled delivery, consulting, partnerships, generative AI capabilities, and client-centric talent to prepare for a future uptick in demand.
This forward-looking strategy highlights EPAM’s commitment to navigating the current market complexities while laying the groundwork for sustained growth. Investors and industry watchers will likely monitor how these adjustments play out in the face of ongoing global economic pressures and their impact on the tech services sector.
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