Epam Systems (EPAM) FY2023 results: revenue $4.7 billion, down 2.8% on the year

Epam Systems, Inc. (EPAM) reported revenue of $4.7 billion for fiscal 2023, the year ended 31 December 2023, down 2.8% on the year before. Net income was $417 million, down 0.6%, and diluted earnings per share $7.06. The figures are the company's own, from the 10-K it filed with the SEC on 22 February 2024.

Revenue

$4.7 billion

-2.8% on the year

FY2016FY2023

Operating margin

10.7%

11.9% a year earlier

FY2016FY2023

Net income

$417 million

-0.6% on the year

FY2016FY2023

Diluted EPS

$7.06

-0.4% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	4,691	4,825	3,758	-2.8%
Cost of revenue	3,257	3,287	2,484	-0.9%
Gross profit	1,434	1,538	1,274	-6.8%
Gross margin	30.6%	31.9%	33.9%
Selling, general and administrative	815	873	649	-6.6%
Operating income	501	573	542	-12.5%
Operating margin	10.7%	11.9%	14.4%
Pre-tax income	537	507	533	+5.8%
Income tax	120	87.8	51.7	+36.0%
Effective tax rate	22.3%	17.3%	9.7%
Net income	417	419	482	-0.6%
Net margin	8.9%	8.7%	12.8%
Diluted EPS	$7.06	$7.09	$8.15	-0.4%

$ 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	FY2023	FY2022	FY2021	On the year
Operating cash flow	563	464	572	+21.2%
Capital expenditure	28.4	81.6	112	-65.2%
Free cash flow	534	382	461	+39.7%
Free cash flow margin	11.4%	7.9%	12.3%
Cash from investing	-66.8	-183	-369
Cash from financing	-166	-2.0	-59.6
Depreciation and amortisation	91.8	92.3	83.4	-0.5%
Share-based compensation	148	99.9	112	+47.9%
Buybacks	165	0.0	0.0
Diluted shares, weighted	59m	59m	59m	-0.1%
Shares outstanding at period end	58m	58m	57m	+0.2%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	3,471	3,002	2,487	+15.6%
Non-controlling interest	0.6	1.5	8.7	-60.8%
Short-term borrowings	n/a	2.9	n/a
Debt	26.1	27.7	46.3	-5.7%
Operating lease liabilities	109	122	143	-10.7%
Other liabilities	746	853	838	-12.6%
Total liabilities and equity	4,352	4,009	3,523	+8.6%
Fixed assets	235	273	236	-14.0%
Goodwill	562	529	531	+6.3%
Intangible assets	71.1	77.7	101	-8.4%
Investments	60.7	60.3	0.0	+0.7%
Cash and equivalents	2,036	1,681	1,447	+21.1%
Other assets	1,387	1,387	1,209	-0.0%
Total assets	4,352	4,009	3,523	+8.6%

10-K for the year ended 31 December 2023, filed 22 February 2024: the filing.