Epam Systems (EPAM) FY2022 results: revenue $4.8 billion, up 28.4% on the year

Epam Systems, Inc. (EPAM) reported revenue of $4.8 billion for fiscal 2022, the year ended 31 December 2022, up 28.4% on the year before. Net income was $419 million, down 12.9%, and diluted earnings per share $7.09. The figures are the company's own, from the 10-K it filed with the SEC on 24 February 2023.

Revenue

$4.8 billion

+28.4% on the year

FY2015FY2022

Operating margin

11.9%

14.4% a year earlier

FY2015FY2022

Net income

$419 million

-12.9% on the year

FY2015FY2022

Diluted EPS

$7.09

-13.0% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	4,825	3,758	2,659	+28.4%
Cost of revenue	3,287	2,484	1,733	+32.3%
Gross profit	1,538	1,274	927	+20.7%
Gross margin	31.9%	33.9%	34.9%
Selling, general and administrative	873	649	485	+34.5%
Operating income	573	542	379	+5.7%
Operating margin	11.9%	14.4%	14.3%
Pre-tax income	507	533	378	-4.9%
Income tax	87.8	51.7	51.3	+69.8%
Effective tax rate	17.3%	9.7%	13.6%
Net income	419	482	327	-12.9%
Net margin	8.7%	12.8%	12.3%
Diluted EPS	$7.09	$8.15	$5.60	-13.0%

$ 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	FY2022	FY2021	FY2020	On the year
Operating cash flow	464	572	544	-18.9%
Capital expenditure	81.6	112	68.8	-26.8%
Free cash flow	382	461	476	-17.0%
Free cash flow margin	7.9%	12.3%	17.9%
Cash from investing	-183	-369	-167
Cash from financing	-2.0	-59.6	-0.8
Depreciation and amortisation	92.3	83.4	62.9	+10.6%
Share-based compensation	99.9	112	75.2	-10.5%
Buybacks	0.0	0.0	n/a
Diluted shares, weighted	59m	59m	58m	+0.2%
Shares outstanding at period end	58m	57m	56m	+1.4%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	3,002	2,487	1,983	+20.7%
Non-controlling interest	1.5	8.7	0.0	-83.1%
Short-term borrowings	2.9	n/a	0.0
Debt	27.7	46.3	25.0	-40.1%
Operating lease liabilities	122	143	181	-14.3%
Other liabilities	853	838	533	+1.8%
Total liabilities and equity	4,009	3,523	2,721	+13.8%
Fixed assets	273	236	170	+15.7%
Goodwill	529	531	212	-0.3%
Intangible assets	77.7	101	52.0	-23.2%
Investments	60.3	0.0	n/a
Cash and equivalents	1,681	1,447	1,322	+16.2%
Other assets	1,387	1,209	966	+14.8%
Total assets	4,009	3,523	2,721	+13.8%

10-K for the year ended 31 December 2022, filed 24 February 2023: the filing.