EPAM Systems Inc (EPAM), a leading global provider of digital transformation services, reported impressive third-quarter 2024 results that exceeded analysts' expectations. The company's strong performance fueled a surge in its stock price, soaring over 18% in premarket trading.
For the quarter ended September 30, 2024, EPAM reported revenue of $1.168 billion, representing a year-over-year increase of 1.3% and surpassing the consensus estimate of $1.152 billion. On a non-GAAP basis, the company reported earnings per share (EPS) of $3.12, significantly higher than the anticipated $2.70.
EPAM's solid results were driven by robust demand for its digital transformation and product engineering services, as enterprises continue to invest in technology to enhance their operations and stay competitive. The company's acquisition of NEORIS, a Miami-based advanced technology consultancy, further strengthened its global delivery platform and expanded its presence in Latin America, Spain, and the U.S.
Encouraged by the strong third-quarter performance, EPAM raised its full-year 2024 guidance. The company now expects revenue between $4.685 billion and $4.695 billion, up from its previous forecast of $4.59 billion to $4.63 billion. Additionally, EPAM raised its non-GAAP diluted EPS guidance to a range of $10.73 to $10.81, compared to the previous outlook of $10.20 to $10.40.
EPAM's CEO, Arkadiy Dobkin, expressed satisfaction with the company's performance, stating, "We are pleased with our strong third-quarter results and the ongoing improvement across our business. We continue to help our clients adapt and modernize their businesses, including deploying world-class solutions enabled by GenAI."
The company's focus on innovation, particularly in areas such as artificial intelligence and autonomous driving, has positioned it as a leader in the industry. EPAM's ability to navigate challenges, such as the impact of the exit from Russia, and deliver strong results amid geopolitical tensions and currency fluctuations, underscores its resilience and operational efficiency.
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