Fourth quarter revenues of $399.3 million, up 27.4% year-over-year
Annual revenues of $1.45 billion, up 25.0% year-over-year
GAAP Diluted EPS of $(0.58) for the fourth quarter and $1.32for the full year which include a provisional $74.6 million charge related to U.S. tax reform
Non-GAAP Diluted EPS of $1.01 for the fourth quarter and $3.46for the full year
NEWTOWN, Pa., Feb. 16, 2018 (GLOBE NEWSWIRE) -- EPAM Systems, Inc. (NYSE:EPAM), a leading global provider of digital platform engineering and software development services, today announced results for its fourth quarter and full year ended December 31, 2017.
“We are pleased with our strong 2017 results, ending with 25% year-over-year growth and $1.45 billion in annual revenues, reflecting our continued evolution into a leading, end-to-end digital solutions service provider,” said Arkadiy Dobkin, EPAM CEO & President. “We expect that our focus on solving our customers’ most complex digital challenges, along with our ability to bring new capabilities and our commitment to accelerating time-to-market in innovative practical solutions, will continue to drive demand.”
Fourth Quarter 2017 Highlights
Revenues increased to $399.3 million, a year-over-year increase of $85.8 million or 27.4% demonstrating strong broad-based demand across the industries we serve and geographies in which we operate. In constant currency, revenue was up 23.8% year-over-year;
GAAP income from operations was $52.1 million, an increase of $14.7 million or 39.2% compared to $37.4 million in the fourth quarter of 2016;
Non-GAAP income from operations was $66.9 million, an increase of $15.4 million or 30.1% compared to $51.5 million in the fourth quarter of 2016;
Provision for income taxes includes a provisional $74.6 million charge related to US tax reform;
Diluted earnings per share (“EPS”) on a GAAP basis was $(0.58), a decrease from $0.46 in the fourth quarter of 2016. Diluted EPS on a GAAP basis excluding the provisional charge related to U.S. tax reform was $0.78; and
Non-GAAP diluted EPS was $1.01, an increase of $0.24 or 31.2% from $0.77 in the fourth quarter of 2016.
Full Year 2017 Highlights
Revenues increased to $1.45 billion, a year-over-year increase of $290.3 million or 25.0%. In constant currency, revenue was up 23.9% year-over-year;
GAAP income from operations was $172.9 million, an increase of $39.2 million or 29.4% compared to $133.7 million in 2016;
Non-GAAP income from operations was $234.7 million, an increase of $42.9 million or 22.3% compared to $191.8 million in 2016;
Diluted EPS on a GAAP basis was $1.32, compared to $1.87 in 2016. Diluted EPS on a GAAP basis excluding the provisional charge related to U.S. tax reform was $2.68; and
Non-GAAP diluted EPS was $3.46, an increase of $0.56 or 19.3%, from $2.90 in 2016.
Cash Flow and Other Metrics
Cash from operations was $71.4 million in the fourth quarter of 2017, up from $53.7 million in the fourth quarter of 2016; and was $195.4 million in 2017, up from $164.8 million in 2016;
Cash and cash equivalents totaled $582.6 million as of December 31, 2017, an increase of $220.6 million or 60.9% from $362.0 million as of December 31, 2016; and
Total headcount was approximately 25,900 as of December 31, 2017. Included in this number were approximately 22,900 delivery professionals, an increase of 16.9% over the previous year.
2018 Outlook - Full Year and First Quarter
Full Year
Revenue growth for 2018 will be at least 24%, including an estimated 2% for currency tailwinds. We expect constant currency growth will be at least 22%;
We expect GAAP income from operations to be in the range of 12% to 13% of revenues and non-GAAP income from operations to be in the range of 16% to 17% of revenues;
We expect our GAAP effective tax rate to be approximately 15% and our non-GAAP effective tax rate to be approximately 22%; and
We expect GAAP diluted EPS will be at least $3.38 for the full year, and non-GAAP diluted EPS will be at least $4.03 for the full year based on an expected weighted average share count of 57.3 million diluted shares outstanding.
First Quarter
Revenues will be at least $414 million for the first quarter, reflecting a year-over-year growth rate of at least 27% including an estimated 4% for currency tailwinds. We expect constant currency growth will be at least 23%;
For the first quarter, we expect GAAP income from operations to be in the range of 11.5% to 12.5% of revenues and non-GAAP income from operations to be in the range of 15% to 16% of revenues;
We expect our GAAP effective tax rate to be approximately 11% and our non-GAAP effective tax rate to be approximately 22%; and
We expect GAAP diluted EPS will be at least $0.76 for the quarter, and non-GAAP diluted EPS will be at least $0.90 for the quarter based on an expected weighted average share count of 56.5 million diluted shares outstanding.
EPAM Reports Results for Fourth Quarter and Full Year 2017 | EPAM Systems
