NEWTOWN, PA — EPAM Systems, Inc. (NYSE: EPAM) has released its financial results for the third quarter ending September 30, 2024, showcasing steady growth and strategic advancements. The company reported a revenue of $1.168 billion, reflecting a 1.3% increase compared to the previous year. This growth was supported by key strategic moves, including the acquisition of NEORIS, a global technology consultancy firm.
CEO and President Arkadiy Dobkin expressed satisfaction with the results, stating, “We are pleased with our strong third-quarter results and the ongoing improvement across our business. We continue to help our clients adapt and modernize their businesses, including deploying world-class solutions enabled by GenAI.”
A notable highlight in the quarter was the Polish research and development (R&D) incentives, which contributed $52 million, enhancing income from operations. This benefit was partially balanced by an increased effective tax rate. GAAP income from operations soared to $177 million, a significant 55.2% rise from the previous year, driven by these incentives. On a non-GAAP basis, income from operations reached $222.9 million, marking a 14% increase.
EPS on a GAAP basis rose to $2.37, up $0.72 from the third quarter of 2023, while non-GAAP EPS increased to $3.12, up $0.39. These gains were influenced by the recognition of R&D incentives, although mitigated by higher tax rates.
The acquisition of NEORIS, finalized on November 1, 2024, marks a pivotal step in diversifying EPAM’s global delivery platform. The move strengthens EPAM’s market presence, particularly in Latin America, Spain, and the U.S., adding approximately 4,800 professionals to its ranks.
Looking ahead, EPAM has adjusted its full-year revenue forecast to a range of $4.685 billion to $4.695 billion, incorporating contributions from recent acquisitions. For the fourth quarter, EPAM anticipates revenues to range between $1.205 billion and $1.215 billion, with expected GAAP diluted EPS between $1.73 and $1.81.
As of September 30, 2024, EPAM’s cash, cash equivalents, and restricted cash totaled $2.041 billion, with operational cash flow reaching $428.9 million for the first nine months of the year. The company maintains a robust headcount of approximately 53,250 employees, ensuring continued innovation and service delivery excellence.
EPAM stated that it remains focused on leveraging its acquisitions and strategic initiatives to drive long-term growth and value creation, emphasizing its efforts to deliver advanced solutions to enterprise clients worldwide.
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