EPAM Systems, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>EPAM Systems, Inc. has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

EPAM Systems, Inc. (EPAM) filed a Annual Report (10-K) with the SEC on February 22, 2024. EPAM Systems, Inc. filed its 2023 Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Services-Computer Programming Services (SIC code 7371). EPAM Systems, Inc. is incorporated in Delaware. The company's headquarters are located at 41 University Drive, Suite 202, Newtown, PA 18940.

Why It Matters

For investors and stakeholders tracking EPAM Systems, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of EPAM's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. As a key player in computer programming services, the details within this filing offer insights into industry trends, competitive landscape, and EPAM's strategic positioning within the technology sector.

Risk Assessment

Risk Level: medium — EPAM Systems, Inc. shows moderate risk based on this filing. The company operates in the dynamic technology services sector, which is subject to rapid changes in client demand, technological advancements, and competitive pressures, as indicated by its business description and industry classification.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand EPAM's performance and potential challenges in the evolving technology services market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-22 — Filing Date (Date of submission)
• 7371 — SIC Code (Services-Computer Programming Services)

Key Players & Entities

• EPAM Systems, Inc. (company) — Filer name
• 0001352010 (company) — Central Index Key
• 7371 (company) — Standard Industrial Classification
• DE (company) — State of Incorporation
• 41 University Drive, Suite 202, Newtown, PA 18940 (company) — Business Address
• 2023-12-31 (date) — Fiscal Year End
• 2024-02-22 (date) — Filing Date

FAQ

Risk Factors

• Market and Economic Conditions [medium — market]: The company's business, financial condition, and results of operations are subject to the effects of global macroeconomic and geopolitical conditions, including inflation, interest rates, and geopolitical instability.
• Dependence on Key Clients [medium — operational]: A significant portion of the company's revenue is derived from a small number of clients, and the loss of any of these clients could adversely affect its business.
• Competition [medium — operational]: The company operates in a highly competitive market and faces intense competition from other service providers, which could impact its market share and profitability.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date EPAM Systems, Inc. submitted its 2023 Form 10-K.

Key Financial Figures

• $0.001 — ich Registered Common Stock, par value $0.001 per share EPAM New York Stock Exchange

Filing Documents

• epam-20231231.htm (10-K) — 2937KB
• exhibit42descriptionofther.htm (EX-4.2) — 23KB
• exhibit1025amendednon-empl.htm (EX-10.25) — 16KB
• exhibit211subsidiariesofth.htm (EX-21.1) — 67KB
• exhibit231consentofindepen.htm (EX-23.1) — 3KB
• exhibit311ye23.htm (EX-31.1) — 10KB
• exhibit312ye23.htm (EX-31.2) — 9KB
• exhibit321ye23.htm (EX-32.1) — 5KB
• exhibit322ye23.htm (EX-32.2) — 5KB
• exhibit971epamsystemsincco.htm (EX-97.1) — 48KB
• epam-20231231_g1.gif (GRAPHIC) — 3KB
• epam-20231231_g2.gif (GRAPHIC) — 12KB
• 0001352010-24-000008.txt (&nbsp;) — 15656KB
• epam-20231231.xsd (EX-101.SCH) — 82KB
• epam-20231231_cal.xml (EX-101.CAL) — 121KB
• epam-20231231_def.xml (EX-101.DEF) — 525KB
• epam-20231231_lab.xml (EX-101.LAB) — 1104KB
• epam-20231231_pre.xml (EX-101.PRE) — 796KB
• epam-20231231_htm.xml (XML) — 3050KB

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 24

Cybersecurity

Item 1C. Cybersecurity 24

Properties

Item 2. Properties 25

Legal Proceedings

Item 3. Legal Proceedings 26

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 26 PART II 27

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27

Selected Financial Data

Item 6. Selected Financial Data 29

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 30

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 43

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 45

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 45

Controls and Procedures

Item 9A. Controls and Procedures 45

Other Information

Item 9B. Other Information 46

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 46 PART III 47

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 47

Executive Compensation

Item 11. Executive Compensation 47

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 47

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 47

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 47 PART IV 48

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 48

Form 10-K Summary

Item 16. Form 10-K Summary 50

SIGNATURES

SIGNATURES 51 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS F-1 In this annual report, "EPAM," "EPAM Systems, Inc.," the "Company," "we," "us" and "our" refer to EPAM Systems, Inc. and its consolidated subsidiaries. "EPAM" is a trademark of EPAM Systems, Inc. All other trademarks, trade names and service marks used herein are the property of their respective owners. Unless otherwise indicated, information contained in this annual report concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market share, is based on information from various sources (including industry publications, surveys and forecasts and our internal research), on assumptions that we have made, which we believe are reasonable, based on such data and other similar sources and on our knowledge of the markets for our services. The projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate, are subject to a high degree of uncertainty and risk due to a variety of factors, including those described under "Item 1A. Risk Factors" and elsewhere in this annual report. These and other factors could cause results to differ materially from those expressed in the estimates included in this annual report. i

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains estimates and forward-looking statements, principally in "Item 1. Business," "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations." Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets and the broader economy, and the effect that these events may have on customer demand, our revenues, operations, access to capital and profitability. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks, uncertainties and assumptions as to future events that may not prove to be accurate and are made in light of information currently available to us. Important factors, in addition to the factors described in this annual report, may materially and adversely affect our results as indicated in forward-looking statements. You should read this annual report and the documents that we have filed as exhibits hereto completely and with the understanding that our actual future results may be materially different from what we expect. The words "may," "will," "should," "could," "expect," "plan," "anticipate," "believe," "estimate," "predict," "intend," "potential," "might," "would," "continue" or the negative of these terms or other comparable terminology and similar words are intended to identify estimates and forward-looking statements. Estimates and forward-looking statements speak only as of the d

Business

Item 1. Business Overview EPAM has used its software engineering expertise to become a leading global provider of digital engineering, cloud and artificial intelligence-enabled transformation services, as well as a leading business and experience consulting partner for global enterprises and ambitious start-ups. We address our clients' transformation challenges by fusing EPAM Continuum's integrated strategy, experience and technology consulting with our 30+ years of engineering execution to speed our clients' time to market and drive greater value from their digital investments. We deliver business and technology transformation from start to finish, leveraging agile methodologies, proven customer collaboration frameworks, engineering excellence tools, multidisciplinary teams and our award-winning proprietary global delivery platform. We support our customers while enabling them to reimagine their businesses through a digital lens. In a business landscape that is constantly challenged by the pressures of digitization, we focus on building long-term partnerships with our customers through innovative and scalable software solutions, integrated strategy, experience and technology consulting, and a continually evolving mix of advanced capabilities. Our historical core competencies, which include software development and product engineering services, combined with our work alongside global leaders in enterprise software platforms and emerging technology companies, laid the foundation for the evolution of our other offerings. These include advanced technology software solutions, intelligent enterprise services, and digital engagement. Our strategic acquisitions have expanded our geographic reach and service capabilities and will continue to enable us to offer a broader range of services to our customers from a multitude of locations. Services We turn our customers' operations into intelligent enterprise hubs with our proprietary platforms, integrated engineering pr

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