EPAM Systems, based in Newtown, Bucks County, reported its 4th quarter and Full Year 2020 results today. Revenue for 2020 reached $2.66 billion, a 16& gain over 2019. GAAP income from operations was $379.3 million, an increase of $76.5 million, or 25.3%, compared to $302.9 million in 2019. EPAM CEO
Arkadiy Dobkin, while attributing lower growth than EPAM’s usual 20%+ rate to thee pandemic, went on to say:
“Our strong year-end financial performance is underscored by our diverse set of offerings and was made possible by the thousands of EPAMers who persevered through unprecedented challenges. As 2020 drove significantly higher levels of digital change across the industries and geographies we serve, we helped our clients solve their most complex, and often unexpected, business problems, This year’s results are also a reflection of EPAM’s adaptiveness and the increasing relevance of our constantly expanding capabilities.”
EPAM, which sources most of its work from Eastern Europe and sells mostly to North American and Western European customers, expects revenue growth for 2021 to be at least 23% on a GAAP basis, indicating that its long-term growth trajectory has not slowed much.
EPAM has a market capitalization of $21.9 billion, a remarkable 8x trailing revenue for an outsourcing developer. Its shares have increased 65% in the past 12 months. Headcount is approaching 40,000.
I like EPAM’s concise investor presentation, which can be viewed here.