EPAM Systems (EPAM) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues reached $1.25B, up 7.9% year-over-year; full-year revenues were $4.73B, up 0.8% year-over-year, with a 5-year CAGR of 16%.

• Non-GAAP diluted EPS for Q4 was $2.84, up 3.3% year-over-year; GAAP diluted EPS was $1.80, up 8.4%.

• Acquisitions of Neoris and First Derivative expanded global footprint, especially in Latin America and financial services.

• AI-native and GenAI capabilities are increasingly central, with 75% of top 100 clients engaged in GenAI initiatives.

• Recognized for leadership in AI, digital platform engineering, and as a top workplace by multiple industry sources.

Financial highlights

• Q4 2024 revenue was $1.25B; full-year 2024 revenue was $4.73B.

• Q4 GAAP income from operations was $137M (10.9% of revenue); non-GAAP was $208M (16.7%).

• Full-year GAAP income from operations was $545M (11.5% of revenue); non-GAAP was $779M (16.5%).

• Free cash flow for Q4 was $115M; full-year free cash flow was $527M.

• Cash balance at year-end 2024: $1.3B, down due to acquisitions.

Outlook and guidance

• 2025 revenue growth expected at 10%-14%, with ~10% from acquisitions; organic Q1 growth expected flat year-over-year, improving through the year.

• 2025 GAAP income from operations expected at 9%-10%; non-GAAP at 14.5%-15.5%.

• 2025 GAAP EPS guidance: $6.78-$7.08; non-GAAP EPS: $10.45-$10.75.

• Q1 2025 revenue guidance: $1.275B-$1.290B (approx. 10% growth, 11.4% inorganic); Q1 GAAP operating margin 6.5%-7.5%.

• Profitability expected to improve in the second half of 2025 as investments in talent and GenAI platforms continue.