Epam Systems (EPAM) FY2018 results: revenue $1.8 billion, up 27.1% on the year
Epam Systems, Inc. (EPAM) reported revenue of $1.8 billion for fiscal 2018, the year ended 31 December 2018, up 27.1% on the year before. Net income was $240 million, up 230.2%, and diluted earnings per share $4.24. The figures are the company's own, from the 10-K it filed with the SEC on 26 February 2019.
Revenue
$1.8 billion
+27.1% on the year
FY2011FY2018
Operating margin
13.3%
11.9% a year earlier
FY2011FY2018
Net income
$240 million
+230.2% on the year
FY2011FY2018
Diluted EPS
$4.24
+221.2% on the year
FY2011FY2018
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Revenue
1,843
1,450
1,160
+27.1%
Cost of revenue
1,187
921
737
+28.8%
Gross profit
656
529
423
+24.0%
Gross margin
35.6%
36.5%
36.5%
Selling, general and administrative
374
328
266
+14.0%
Operating income
246
173
134
+42.1%
Operating margin
13.3%
11.9%
11.5%
Pre-tax income
250
174
126
+43.3%
Income tax
9.5
102
27.2
-90.6%
Effective tax rate
3.8%
58.3%
21.5%
Net income
240
72.8
99.3
+230.2%
Net margin
13.0%
5.0%
8.6%
Diluted EPS
$4.24
$1.32
$1.87
+221.2%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Operating cash flow
292
193
167
+51.5%
Capital expenditure
37.6
29.8
29.3
+26.1%
Free cash flow
255
163
138
+56.2%
Free cash flow margin
13.8%
11.2%
11.9%
Cash from investing
-112
-36.2
-9.3
Cash from financing
23.0
49.7
10.5
-53.8%
Depreciation and amortisation
36.6
28.6
23.4
+28.3%
Share-based compensation
59.2
52.4
49.2
+12.9%
Diluted shares, weighted
57m
55m
53m
+3.1%
Shares outstanding at period end
54m
53m
51m
+2.1%
Balance sheet
$ million
FY2018
FY2017
FY2016
On the year
Last 8 years
Shareholders' equity
1,263
975
781
+29.5%
Debt
25.0
25.0
25.0
-0.0%
Operating lease liabilities
0.0
n/a
n/a
Other liabilities
324
250
119
+29.5%
Total liabilities and equity
1,612
1,250
926
+28.9%
Fixed assets
103
86.4
73.6
+18.8%
Goodwill
167
120
109
+39.6%
Intangible assets
57.1
44.5
51.3
+28.2%
Loans
n/a
n/a
6.0
Cash and equivalents
771
583
362
+32.3%
Receivables
0.0
266
200
Other assets
515
152
124
+239.6%
Total assets
1,612
1,250
926
+28.9%
10-K for the year ended 31 December 2018, filed 26 February 2019: the filing.