EPAM has announced Q4 and Full Year 2023 earnings with Revenues down by 6.0% year-over-year at $1.157 billion

Newtown, PA, USA, February 15, 2024: EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced results for its fourth quarter and full year ended December 31, 2023.

"EPAM's performance in 2023 reflects our ability to successfully navigate a volatile demand and macro-economic environment," said Arkadiy Dobkin, CEO & President, EPAM. "After rebalancing the majority of our delivery platforms across Europe, India, Asia and Latin America, and refining our growth strategy, we are now focused on harmonizing our delivery quality, optimizing cost-effectiveness, and proactively leveraging our extensive data, engineering and consulting experience to capitalize on Generative AI opportunities."

Fourth Quarter 2023 Highlights
• Revenues decreased to $1.157 billion, a year-over-year decrease of $74.0 million, or 6.0%. On an organic constant currency basis excluding the impact of the exit from Russia, revenues were down 7.1% compared to the fourth quarter of 2022;
• GAAP income from operations was $122.5 million, a decrease of $48.0 million, or 28.1% , compared to $170.5 million in the fourth quarter of 2022. GAAP income from operations was negatively impacted by $27.9 million of costs incurred in connection with the Company's Cost Optimization Program;
• Non-GAAP income from operations was $200.4 million, a decrease of $19.2 million, or 8.7%, compared to $219.6 million in the fourth quarter of 2022;
• Diluted earnings per share (“EPS”) on a GAAP basis was $1.66, a decrease of $0.95, or 36.4%, compared to $2.61 in the fourth quarter of 2022; and
• Non-GAAP diluted EPS was $2.75, a decrease of $0.18, or 6.1%, compared to $2.93 in the fourth quarter of 2022.

Full Year 2023 Highlights
• Revenues decreased to $4.691 billion, a year-over-year decrease of $134.2 million, or 2.8%. On an organic constant currency basis excluding the impact of the exit from Russia, revenues were down 2.6% year-over-year;
• GAAP income from operations was $501.2 million, a decrease of $71.7 million, or 12.5%, compared to $573.0 million in 2022. GAAP income from operations was negatively impacted by a $25.9 million loss on the sale of the Company's remaining holdings in Russia and by $35.1 million of costs incurred in connection with the Company's Cost Optimization Program;
• Non-GAAP income from operations was $765.1 million, a decrease of $53.1 million, or 6.5%, compared to $818.2 million in 2022;
• Diluted EPS on a GAAP basis was $7.06, a decrease of $0.03, or 0.4%, compared to $7.09 in 2022; and
• Non-GAAP diluted EPS was $10.59, a decrease of $0.31, or 2.8%, compared to $10.90 in 2022.

Cash Flow and Other Metrics
• Cash provided by operating activities was $171.4 million in the fourth quarter of 2023, a decrease from $186.1 million in the fourth quarter of 2022; and was $562.6 million in 2023, an increase from $464.1 million in 2022;
• The Company repurchased 143 thousand shares of its common stock for $36.5 million during the fourth quarter of 2023 under its share repurchase program. During the year ended December 31, 2023, the Company repurchased 686 thousand shares of its common stock for $164.9 million under its share repurchase program. As of December 31, 2023, the Company had $335.1 million remaining under its share repurchase authorization.
• Cash, cash equivalents and restricted cash totaled $2.043 billion as of December 31, 2023, an increase of $359.5 million, or 21.4%, from $1.684 billion as of December 31, 2022; and
• Total headcount was approximately 53,150 as of December 31, 2023. Included in this number were approximately 47,350 delivery professionals, a decrease of 10.4% from December 31, 2022.


About EPAM Systems

Since 1993, EPAM Systems, Inc. (NYSE: EPAM) has used its software engineering expertise to become a leading global provider of digital engineering, cloud and AI-enabled transformation services, as well as a leading business and experience consulting partner for global enterprises and ambitious startups. We address our clients’ transformation challenges by fusing EPAM Continuum’s integrated strategy, experience and technology consulting with our 30+ years of engineering execution to speed our clients’ time to market and drive greater value from their innovations and digital investments.  

We deliver globally, but engage locally with our expert teams of consultants, architects, designers and engineers, making the future real for our clients, our partners and our people around the world.

We believe the right solutions are the ones that improve people’s lives and fuel competitive advantage for our clients across diverse industries. Our thinking comes to life in the experiences, products and platforms we design and bring to market.

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