Financial Data and Key Metrics - Revenue for Q3 2024 was $1.168 billion, a year-over-year increase of 1.3% on a reported basis or 0.9% in constant currency terms [26] - GAAP gross margin for Q3 was 34.6%, compared to 31.1% in Q3 2023, benefiting from a Polish R&D incentive [32] - Non-GAAP diluted EPS was $3.12, up from $2.73 in Q3 2023, reflecting a $0.39 increase year-over-year [34] - Free cash flow reached $237 million, the highest level in the company's history [35] Business Line Performance - Financial Services revenue increased 3.3% year-over-year, driven by demand from fintech, banking, and insurance sectors [29] - Life Sciences & Healthcare delivered strong year-over-year growth of 14.6%, driven by clients in life sciences, pharmaceuticals, and med-tech [29] - Consumer Goods, Retail, and Travel decreased 4.5% year-over-year, with declines in consumer products and retail partially offset by growth in travel [30] - Software and Hi-Tech grew 2.1% year-over-year, while Business Information and Media declined 9% [30] Market Performance - Americas, representing 60% of Q3 revenues, grew 2.9% year-over-year [30] - EMEA, representing 38% of Q3 revenues, contracted 0.3% year-over-year but showed signs of stabilization with sequential growth [30] - APAC increased 1.8% year-over-year and now represents 2% of revenues [30] Strategic Direction and Industry Competition - The acquisition of NEORIS provides entry into Latin America and parts of Europe, accelerates growth opportunities, and strengthens local and near-shore value propositions [7] - The company is focusing on Gen AI initiatives, with 70% of top 100 clients engaged in various Gen AI projects [20] - EPAM is expanding its global delivery hubs, including significant growth in India and Latin America, with plans to reach 10,000 employees in India by early 2025 [14][15] Management Commentary on Operating Environment and Future Outlook - Management noted a more positive demand sentiment compared to 90 days ago, with clients showing increased willingness to invest in technology-led optimization and transformation programs [10] - The company remains optimistic about certain sectors and expects a return to higher growth levels in the coming quarters, despite ongoing caution and delayed decision-making in some areas [11] - EPAM is strategically investing in capabilities to capture market share as global demand returns [11] Other Important Information - The company recognized a $52 million benefit from a Polish government incentive program, improving GAAP gross margin and IFO by 450 basis points [27] - EPAM expects further benefits from the Polish R&D incentive in Q4 2024 and beyond, with an estimated $9 million benefit in Q4 [28] - The company ended Q3 with 47,750 consultants, designers, engineers, and architects, a decline of 1.5% year-over-year but a sequential increase of 750 employees [36] Q&A Session Summary Question: What areas are leading the recovery in client behavior? - Financial Services, Hi-Tech, and Life Sciences & Healthcare are showing improvement, with clients beginning to recognize the need to invest again [44] Question: How will the Poland R&D incentive impact future margins and tax rates? - The $29 million benefit in Q3 and an expected $9 million in Q4 will positively impact gross margins, but wage inflation and pricing challenges may pressure profitability in 2025 [45][46] Question: What is the outlook for revenue per head and hiring in Europe? - The company expects headcount growth in Q4, with hiring broadening globally, including in Eastern Europe and Western Asia [49] Question: What is the organic growth profile of NEORIS and its client concentration? - NEORIS is expected to contribute $54 million in Q4, with CEMEX being a significant but not majority customer [82][83] Question: How is employee productivity in new regions like LatAm and India? - Productivity in LatAm is expected to be comparable to other regions, with further assessments to be made in the coming quarters [87] Question: What is the outlook for organic revenue growth in 2025? - The company expects to return to organic revenue growth in 2025, though the extent of growth will depend on demand conditions [80]

Epam (EPAM) came out with quarterly earnings of $3.12 per share, beating the Zacks Consensus Estimate of $2.70 per share. This compares to earnings of $2.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.56%. A quarter ago, it was expected that this information technology services provider would post earnings of $2.26 per share when it actually produced earnings of $2.45, delivering a surprise of 8.41%.Over the last four q ...

Third quarter revenues of $1.168 billion, up 1.3% year-over-year GAAP income from operations was 15.2% of revenues and non-GAAP income from operations was 19.1% of revenues for the third quarter Third quarter GAAP diluted EPS of $2.37, an increase of $0.72, and non-GAAP diluted EPS of $3.12, an increase of $0.39 on a year-over-year basis For the full year, EPAM increases expected range for revenues to now be $4.685 billion to $4.695 billion, increases expected GAAP diluted EPS to now be in the range of $7 ...

Exhibit 99.1 EPAM Reports Results for Third Quarter 2024 and Raises Full Year Outlook • Third quarter revenues of $1.168 billion, up 1.3% year-over-year • GAAP income from operations was 15.2% of revenues and non-GAAP income from operations was 19.1% of revenues for the third quarter • Third quarter GAAP diluted EPS of $2.37, an increase of $0.72, and non-GAAP diluted EPS of $3.12, an increase of $0.39 on a year-over-year basis • For the full year, EPAM increases expected range for revenues to now be $4.68 ...

The acquisition enhances EPAM's delivery capabilities in Latin America and Europe, boosting client value across key industriesNEWTOWN, Pa., Nov. 1, 2024 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced the successful completion of its acquisition of NEORIS, a Miami-headquartered global advanced technology consultancy with approximately 4,800 professionals across major talent hubs in Latin America, Spain and the U.S. T ...

Recognized for Completeness of Vision and Ability to Execute NEWTOWN, Pa., Oct. 29, 2024 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced that Gartner has positioned it as a Leader in the Magic Quadrant™ for Custom Software Development Services. "We believe this placement reflects EPAM's ability to help our clients build new solutions, modernize existing ones and leverage significant investments in GenAI to enhance ou ...

NEWTOWN, Pa., Oct. 8, 2024 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, will host a conference call at 8:00 a.m. ET, on Thursday, November 7, 2024, to discuss its third quarter 2024 financial results. A news release containing these results will be issued before the call. The conference call will be live on the EPAM website at https://investors.epam.com. Please visit the website at least 15 minutes before the call to register for ...

EPAM Systems (EPAM) has seen its share price plunge 35.3% year to date, underperforming the Zacks Computers - IT Services industry, Zacks Computer and Technology sector and the S&P 500's return of 8.4%, 22.3% and 19.6%, respectively. The underperformance of EPAM's shares can be attributable to highly volatile market conditions amid the ongoing macroeconomic uncertainties. Factors, including investors' concerns over the Federal Reserve's interest rate policies and fears of a looming U.S. recession, have weig ...

Strategic Acquisition will Enhance Capabilities in Capital Markets, Banking Operations and Asset Servicing, Strengthening Client Offerings Globally NEWTOWN, Pa. and NEWRY, N. Ireland, Oct. 7, 2024 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced its agreement to acquire First Derivative, a Northern Ireland-headquartered managed services and consulting business for the capital markets industry with more than 1,800 empl ...

BlueOptima's report reveals that more than 76.5% of EPAM's lead developers exceed global productivity and quality standards NEWTOWN, Pa., Oct. 3, 2024 /PRNewswire/ -- As organizations increasingly rely on outsourcing to accelerate their digital transformation efforts, understanding software development productivity and quality is crucial for optimizing software development lifecycles and making informed outsourcing decisions. EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and pro ...