EPAM Revenue Decline: Q2 2024 Results

The international IT company EPAM faced a decline in revenues in the second quarter of 2024. For the reporting period, the company recorded revenue of $1.147 billion, which was 2% or $23.6 million less than the same period last year. The data was released in the company's latest financial report, which summarized the results for the second quarter of 2024.

The exit of EPAM from the Russian market was an important factor that affected the decrease in revenue. Excluding this aspect, the company's revenue for the reporting period was down 2.8% compared to the second quarter of 2023.

There was also a significant decline in EPAM's operating profit, which fell 16.5% to $23.8 million in cash terms in the second quarter of 2024. According to the results of the quarter, the operating profit of the company amounted to 120.6 million dollars. Despite this, EPAM expects the company's third-quarter 2024 revenue to be in the range of $1.145 billion to $1.155 billion.

Forecasts for the entire year 2024 have also been adjusted. EPAM lowered its annual revenue estimate range to $4.590 billion to $4.625 billion, representing a 1.8% decline from previous estimates. In addition, the company forecasts a 2.9% decrease in revenues on an organic constant currency basis, excluding the exit from Russia. The expected operating profit for the year will be between 10.5% and 11.0% of the total revenue.

Additionally, in the second quarter of 2024, EPAM repurchased 1.160 million shares of its common stock for a total of $214.5 million. The move was part of a previously approved buyback program.

On August 1, EPAM's Board of Directors approved a new share repurchase program that authorizes the purchase of up to $500 million of the company's common stock. This step is important to maintain the company's market value in the face of current financial challenges.