EPAM Systems, Inc. (EPAM) reported better-than-expected first-quarter 2024 results. However, shares of the company plunged 27% on Thursday as the digital transformation services and product provider lowered its full-year 2024 guidance due to a challenging demand environment.EPAM Systems’ first-quarter non-GAAP earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.32. However, the figure came a penny lower than the year-ago quarter’s earnings of $2.47 per share, primarily due to lower revenues ...

For the quarter ended March 2024, Epam (EPAM) reported revenue of $1.17 billion, down 3.8% over the same period last year. EPS came in at $3.06, compared to $2.47 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.16 billion, representing a surprise of +0.30%. The company delivered an EPS surprise of +31.90%, with the consensus EPS estimate being $2.32.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they com ...

Key TakeawaysThe S&P 500 added 0.5% on Thursday, May 9, 2024, as an uptick in first-time jobless claims bolstered hopes for interest rate cuts by the Federal Reserve.Equinix shares soared after the data center operator reported strong quarterly results, driven by demand for AI products.Epam Systems stock tumbled after the software engineering firm provided lackluster quarterly and annual guidance, citing a difficult demand environment. Major U.S. equities indexes advanced as data showed that initial unemplo ...

Financial Performance - For the first three months of 2024, total revenues decreased by 3.8% to $1.165 billion compared to $1.211 billion in the same period of 2023[114]. - Net income for the first quarter of 2024 was $116.2 million, representing a 13.7% increase from $102.3 million in Q1 2023[118]. - In Q1 2024, total revenues were $1,165.5 million, a decrease of 3.7% from $1,210.9 million in Q1 2023[128]. - Total segment revenues for the three months ended March 31, 2024, were $1.165 billion, a decrease of 3.7% from $1.211 billion in the same period of 2023[139]. - North America segment revenues decreased by $5.2 million, or 0.7%, to $704.7 million in Q1 2024, accounting for 60.5% of total segment revenues[140]. - Europe's segment revenues were $460.7 million, a decrease of $32.4 million, or 6.6%, from Q1 2023, with an operating profit margin increase to 13.1%[142]. Cost and Expenses - Income from operations as a percentage of revenues decreased to 9.5% for Q1 2024, down from 9.9% in Q1 2023, primarily due to increased compensation costs[114]. - Cost of revenues (exclusive of depreciation and amortization) was $834.3 million, a decrease of 2.5% from $855.9 million in Q1 2023[127]. - Cost of revenues as a percentage of revenues increased to 71.6% in Q1 2024 from 70.7% in Q1 2023, primarily due to a $6.3 million increase in stock-based compensation[128]. - Selling, general and administrative expenses decreased by 6.3% to $198.5 million in Q1 2024 from $211.9 million in Q1 2023[130]. Tax and Income - The effective tax rate for Q1 2024 was 6.0%, significantly lower than 19.6% in the same period last year[118]. - The effective tax rate significantly decreased to 6.0% in Q1 2024 from 19.6% in Q1 2023, attributed to higher excess tax benefits from stock-based awards[136]. - The effective tax rate for the three months ended March 31, 2024, was 6.0%, down from 19.6% in the same period of 2023, primarily due to higher excess tax benefits[136]. Cash Flow and Investments - For the three months ended March 31, 2024, net cash provided by operating activities was $129.9 million, compared to $87.3 million for the same period in 2023, representing a 48.7% increase[148]. - Cash used in investing activities for the three months ended March 31, 2024, was $51.0 million, compared to $17.7 million in the same period of 2023, indicating increased investment activity[148]. - Cash used in financing activities included $120.6 million for share repurchases in the first three months of 2024, significantly higher than $8.5 million in the same period of 2023[152]. - The company reported a total of $1.984 billion in cash and cash equivalents as of March 31, 2024, indicating strong liquidity[147]. - Cash generated from operating activities for Q1 2024 was $129.9 million, compared to $87.3 million in Q1 2023[148]. - Cash used in investing activities totaled $51.0 million in Q1 2024, primarily for capital expenditures of $6.7 million and acquisitions of $44.1 million[151]. - Cash used in financing activities amounted to $112.1 million in Q1 2024, mainly for share repurchases of $120.6 million[152]. - As of March 31, 2024, the company had cash and cash equivalents totaling $1.984 billion and short-term investments of $61.6 million[147]. Regional Performance - Revenues from the United States decreased by 1.8% to $667.1 million in Q1 2024, down from $679.4 million in Q1 2023[123]. - North America segment revenues were $704.7 million for the three months ended March 31, 2024, down from $710.0 million in the prior year, a decline of 0.3%[139]. - Europe's segment revenues decreased to $460.7 million in the three months ended March 31, 2024, from $493.1 million in the same period of 2023, a decline of 6.5%[139]. - Life Sciences & Healthcare in North America grew by 26.0% to $121.7 million, driven by increased demand from pharmaceutical and medical device companies[141]. - Business Information & Media in Europe saw a significant decline of 26.1% to $63.6 million, primarily due to decreased demand from two major clients[144]. - Emerging Verticals in North America saw a revenue increase of 26.6% to $101.1 million, attributed to growth from clients in energy, education, and telecommunications[141]. Geopolitical and Operational Risks - The ongoing war in Ukraine continues to create uncertainties and negatively impact business operations and client spending[114]. - The company maintained a $100 million humanitarian aid commitment to support employees in Ukraine[109]. - Key risks include geopolitical tensions, particularly related to the war in Ukraine, and their potential impact on client demand and profitability[158]. - Future capital requirements are expected to be met with existing cash and projected cash flows, although geopolitical events may pose risks to financial stability[153]. - The company acknowledges that actual future results may differ materially from estimates due to various uncertainties[159]. Forward-Looking Statements - The quarterly report includes forward-looking statements based on current expectations and estimates of future events and trends affecting the business[158]. - Forward-looking statements are not guarantees of future performance and should not be relied upon excessively[159]. - The report emphasizes the importance of reading the full quarterly and annual reports to understand potential risks and outcomes[158].

EPAM Systems, Inc. (NYSE:EPAM) Q1 2024 Earnings Conference Call May 9, 2024 8:00 AM ET Company Participants David Straube – Head of Investor Relations Arkadiy Dobkin – Chief Executive Officer and President Jason Peterson – Chief Financial Officer Conference Call Participants Bryan Bergin – TD Cowen Jonathan Lee – Guggenheim Securities Maggie Nolan – William Blair Surinder Thind – Jefferies Jason Kupferberg – Bank of America Moshe Katri – Wedbush Securities Ramsey El-Assal – Barclays Ryan Potter – Citigroup ...

First quarter revenues of $1.165 billion, down 3.8% year-over-year GAAP income from operations was 9.5% of revenues and non-GAAP income from operations was 14.9% of revenues for the first quarter First quarter GAAP diluted EPS of $1.97, an increase of $0.24, and non-GAAP diluted EPS of $2.46, a decrease of $0.01 on a year-over-year basis For the full year, EPAM updates expected revenues to now be in the range of $4.575 billion to $4.675 billion, updates expected GAAP diluted EPS to now be in the range of ...

Exhibit 99.1 EPAM Reports Results for First Quarter 2024 and Updates Full Year Outlook Newtown, PA, USA — May 9, 2024 — EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced results for the first quarter ended March 31, 2024. "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 ...

2024 LinkedIn Top Companies List recognizes EPAM's effectiveness in empowering teams with the tools and resources required for successful client transformationsNEWTOWN, Pa., April 23, 2024 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced it has been named a best workplace for career growth in Europe by LinkedIn. EPAM was also ranked #1 in Spain and #5 in the Netherlands on the 2024 LinkedIn Top Companies List for prof ...

PixelsEffect/E+ via Getty ImagesEPAM Systems (NYSE:EPAM) is a US company that provides software engineering and product development services across 55 countries. All-time share performance has been decent. The company went public in 2012 at a price of $14, EPAM today is trading at $253 per share, generating an estimated return of over 1,700%. Nonetheless, share performance in recent times has been lackluster. EPAM is currently down by more than -13% over the past year. It also reached an all-time high o ...

Learn More About EPAM's commercetools Partnership The Platinum Partner status is the highest available partnership program level, with only a select group of five partners globally being awarded this distinguished status. EPAM was awarded this status for demonstrating excellence in client delivery, actively contributing to product enhancement and achieving significant sales volumes coupled with robust technical enablement efforts. "We're delighted to achieve Platinum Partner status with commercetools. A spe ...