Epam Systems (EPAM) FY2021 results: revenue $3.8 billion, up 41.3% on the year

Epam Systems, Inc. (EPAM) reported revenue of $3.8 billion for fiscal 2021, the year ended 31 December 2021, up 41.3% on the year before. Net income was $482 million, up 47.2%, and diluted earnings per share $8.15. The figures are the company's own, from the 10-K it filed with the SEC on 25 February 2022.

Revenue

$3.8 billion

+41.3% on the year

FY2014FY2021

Operating margin

14.4%

14.3% a year earlier

FY2014FY2021

Net income

$482 million

+47.2% on the year

FY2014FY2021

Diluted EPS

$8.15

+45.5% on the year

FY2014FY2021

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q4 FY2021

Income statement (profit and loss)

$ million	FY2021	FY2020	FY2019	On the year
Revenue	3,758	2,659	2,294	+41.3%
Cost of revenue	2,484	1,733	1,488	+43.4%
Gross profit	1,274	927	806	+37.5%
Gross margin	33.9%	34.9%	35.1%
Selling, general and administrative	649	485	457	+33.8%
Operating income	542	379	303	+43.0%
Operating margin	14.4%	14.3%	13.2%
Pre-tax income	533	378	300	+40.9%
Income tax	51.7	51.3	38.5	+0.8%
Effective tax rate	9.7%	13.6%	12.8%
Net income	482	327	261	+47.2%
Net margin	12.8%	12.3%	11.4%
Diluted EPS	$8.15	$5.60	$4.53	+45.5%

$ million except per share.

Free 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	FY2021	FY2020	FY2019	On the year
Operating cash flow	572	544	287	+5.1%
Capital expenditure	112	68.8	99.3	+62.1%
Free cash flow	461	476	188	-3.1%
Free cash flow margin	12.3%	17.9%	8.2%
Cash from investing	-369	-167	-145
Cash from financing	-59.6	-0.8	20.4
Depreciation and amortisation	83.4	62.9	45.3	+32.6%
Share-based compensation	112	75.2	72.0	+48.4%
Buybacks	0.0	n/a	n/a
Diluted shares, weighted	59m	58m	58m	+1.1%
Shares outstanding at period end	57m	56m	55m	+1.3%

Balance sheet

$ million	FY2021	FY2020	FY2019	On the year
Shareholders' equity	2,487	1,983	1,596	+25.4%
Non-controlling interest	8.7	0.0	n/a
Short-term borrowings	n/a	0.0	n/a
Debt	46.3	25.0	25.1	+84.7%
Operating lease liabilities	143	181	181	-20.9%
Other liabilities	838	533	442	+57.4%
Total liabilities and equity	3,523	2,721	2,244	+29.5%
Fixed assets	236	170	165	+39.3%
Goodwill	531	212	195	+150.4%
Intangible assets	101	52.0	56.3	+94.6%
Investments	0.0	n/a	n/a
Cash and equivalents	1,447	1,322	937	+9.4%
Other assets	1,209	966	891	+25.1%
Total assets	3,523	2,721	2,244	+29.5%

10-K for the year ended 31 December 2021, filed 25 February 2022: the filing.