EPAM Systems, Inc. reported a modest increase in revenue for the fiscal year ending December 31, 2024, achieving $4.728 billion, a 0.8% rise from $4.691 billion in 2023. The growth was attributed to stabilizing demand for services and contributions from recent acquisitions, specifically NEORIS and First Derivative, which added approximately $65.9 million to the revenue. The company also noted a decrease in client concentration, with revenues from its top five clients accounting for 15.8% of total revenues, down from 16.6% in the previous year.
In terms of profitability, EPAM's net income rose to $454.5 million, representing 9.6% of total revenues, compared to $417.1 million or 8.9% in 2023. The operating income increased to $544.6 million, reflecting an operating margin of 11.5%, up from 10.7% in the prior year. The company attributed these improvements to better utilization rates and government incentives related to research and development activities in Poland, despite facing increased costs from stock-based compensation and variable compensation expenses.
Strategically, EPAM has continued to expand its global footprint through acquisitions and geographic diversification. The company has focused on enhancing its service offerings in key verticals, including Financial Services, which became its largest revenue segment at 21.6% of total revenues. The company also reported significant growth in the Life Sciences and Healthcare vertical, which saw a 42.3% increase in revenue. However, the Consumer Goods, Retail & Travel, and Business Information & Media sectors experienced declines.
Operationally, EPAM's workforce grew to approximately 61,200 employees, with a notable increase in delivery professionals in India, which became the largest delivery location. The company reported a utilization rate of 76.7% for its delivery professionals, up from 74.3% in 2023. The ongoing geopolitical situation, particularly the war in Ukraine, has prompted EPAM to adapt its operations, including relocating employees and implementing business continuity plans to ensure service delivery remains uninterrupted.
Looking ahead, EPAM remains cautious about the potential impacts of geopolitical tensions and economic conditions on client demand. The company is committed to maintaining its growth trajectory through strategic acquisitions and expanding its service capabilities while navigating the challenges posed by the current global landscape.
About EPAM Systems, Inc.
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