Fourth Quarter 2022
- Revenues of $1.231 billion, up 2% year-over-year
- GAAP Income from Operations was 8% of revenues and Non-GAAP Income from Operations was 17.8% of revenues
- GAAP Diluted EPS of $2.61, an increase of 7%, and Non-GAAP Diluted EPS of $2.93, an increase of 6.2% on a year-over-year basis
Full Year 2022
- Revenues of $4.825 billion, up 4% year-over-year
- GAAP Income from Operations was 9% of revenues and Non-GAAP Income from Operations was 17.0% of revenues
- GAAP Diluted EPS of $7.09, a decrease of 0%, and Non-GAAP Diluted EPS of $10.90, an increase of 20.4% on a year-over-year basis
Share Repurchase Program
- The Board of Directors approved a share repurchase program with authorization to purchase up to $500 million of EPAM common stock
Newtown, PA — February 16, 2023 —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, 2022.
We are pleased to share the results of another year of strong financial performance. Despite the challenges brought on by the war, our global team of professionals worked tirelessly to adapt while maintaining the trust of our customers and creating a more diversified global footprint, said Arkadiy Dobkin, CEO & President, EPAM. While the 2023 macro-environment remains uncertain, we are committed to accelerating our momentum while also ensuring that EPAM is well positioned for long-term success.
Fourth Quarter 2022 Highlights
- Revenues increased to $1.231 billion, a year-over-year increase of $123.8 million, or 2%. On a constant currency basis, revenues were up 14.4% compared to the fourth quarter of 2021. Acquisitions contributed 1.5% inorganic revenue growth for the quarter. The decision to exit the Russian market negatively impacted revenue growth by 4.4%;
- GAAP income from operations was $170.5 million, an increase of $4.8 million, or 9% , compared to $165.7 million in the fourth quarter of 2021;
- Non-GAAP income from operations was $219.6 million, an increase of $13.2 million, or 4%, compared to $206.4 million in the fourth quarter of 2021;
- Diluted earnings per share (“EPS”) on a GAAP basis was $2.61, an increase of $0.21, or 7%, compared to $2.40 in the fourth quarter of 2021; and
- Non-GAAP diluted EPS was $2.93, an increase of $0.17, or 2%, compared to $2.76 in the fourth quarter of 2021.
Full Year 2022 Highlights
- Revenues increased to $4.825 billion, a year-over-year increase of $1.067 billion, or 4%. On a constant currency basis, revenues were up 32.4% year-over-year. Acquisitions contributed 5.1% inorganic revenue growth for the year. The decision to exit the Russian market negatively impacted revenue growth by 3.7%;
- GAAP income from operations was $573.0 million, an increase of $30.7 million, or 7%, compared to $542.3 million in 2021;
- Non-GAAP income from operations was $818.2 million, an increase of $140.0 million, or 6%, compared to $678.2 million in 2021;
- Diluted EPS on a GAAP basis was $7.09, a decrease of $1.06, or 0%, compared to $8.15 in 2021; and
- Non-GAAP diluted EPS was $10.90, an increase of $1.85, or 4%, compared to $9.05 in 2021.
Cash Flow and Other Metrics
- Cash provided by operating activities was $186.1 million in the fourth quarter of 2022, a decrease from $284.6 million in the fourth quarter of 2021; and was $464.1 million in 2022, a decrease from $572.3 million in 2021;
- Cash, cash equivalents and restricted cash totaled $1.684 billion as of December 31, 2022, an increase of $234.3 million, or 2%, from $1.449 billion as of December 31, 2021; and
- Total headcount was approximately 59,300 as of December 31, 2022. Included in this number were approximately 52,850 delivery professionals, an increase of 5% from December 31, 2021.
Share Repurchase Program
- On February 13, 2023, the Board of Directors approved a share repurchase program with authorization to purchase up to $500 million of EPAM common stock.
- EPAM may repurchase shares of its common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions.
- The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program will have a term of 24 months, may be suspended or discontinued at any time, and does not obligate the company to acquire any amount of common stock.
