EPAM Systems, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, the company achieved revenues of $1,167.5 million, a 1.3% increase from $1,152.1 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenues decreased by 1.5% to $3,479.6 million from $3,533.3 million in 2023. The decline was attributed to a downturn at a former top-10 client in the Business Information & Media vertical.
Net income for the third quarter of 2024 rose significantly to $136.3 million, compared to $97.2 million in the same quarter of 2023. For the nine-month period, net income increased to $351.2 million from $319.5 million year-over-year. The basic earnings per share for Q3 2024 was $2.40, up from $1.68 in Q3 2023, while for the nine months, it rose to $6.11 from $5.52.
The company’s income from operations for Q3 2024 was $177.0 million, a substantial increase from $114.0 million in Q3 2023. For the nine months, income from operations also improved to $408.1 million from $378.7 million, reflecting an increase in the operating margin to 11.7% from 10.7% in the prior year, driven by a $52.0 million benefit from Poland's R&D incentives.
In terms of strategic developments, EPAM completed three acquisitions during the nine months ended September 30, 2024, totaling $74.2 million, which expanded its geographical reach and capabilities in Life Sciences analytics. The company also initiated a 2024 Cost Optimization Program aimed at streamlining operations, which is expected to incur additional charges of approximately $14.0 million.
Cash and cash equivalents as of September 30, 2024, totaled $2.036 billion, with a net cash provided by operating activities of $428.9 million for the nine months, up from $391.3 million in the same period of 2023. The company repurchased $385.0 million of its common stock during the first nine months of 2024, compared to $128.4 million in the same period of 2023.
Overall, while EPAM Systems experienced a slight decline in revenues for the nine-month period, it demonstrated strong growth in profitability and continued to invest in strategic acquisitions and operational efficiencies.
About EPAM Systems, Inc.
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