EPAM Systems EPAM is benefiting from ongoing digital transformation and continued focus on customer engagement and product development. Acquisitions and partnerships are also supporting top-line growth.
EPAM primarily serves the fastest growing IT services areas, including mobile applications and their testing, cognitive computing, software development and advanced analytics. The demand for these key areas will likely continue for the next several years as more and more organizations are trying to take advantage of cloud computing and data analytics to make greater use of their IT infrastructure. With its world-class capabilities in empowering digital technologies, EPAM is well positioned to grab the growing opportunities in the aforementioned IT services space.
Expanding Portfolio Through Acquisitions
Acquisitions have been one of the key growth strategies for EPAM. Since its debut, the company has acquired 24 businesses. Acquisitions have enabled EPAM to enter new markets, diversify and broaden its product portfolio. The company aims to widen its vertical-specific domain know-how, geographic foothold, service portfolio, client base and management skills via acquisitions.
Its service capabilities like digital strategy and design plus consulting and test automation have been enhanced with acquisitions. Apart from these, such integrations are aiding EPAM to stay highly competitive in a rapidly-changing technology and services industry.
In January 2022, it acquired ENGINIETY, a full-service commerce technology delivery firm, including specializations in SAP Commerce Cloud capabilities. In December 2021, the company acquired Optiva Media, a niche professional services firm that provides product development and digital services to leading media companies. In November 2021, it announced the acquisition of Emakina Group, a multi-award-winning digital agency.
Enhancing Capabilities through Acquisitions
EPAM's partnership agreements with several tech companies, including Salesforce CRM, Adobe ADBE and SAP SE SAP. are enhancing its capabilities and supporting clients in their digital transformation journey.
With a team of more than 3,200 Salesforce-certified professionals, EPAM helps organizations in implementing B2C commerce, Einstein, Experience Cloud, Marketing Cloud, Service Cloud and Managed Services. EPAM has been awarded as the #1 Salesforce ACV partner for Marketing Cloud. Per the company’s website, over 300 global brands are currently working with EPAM to drive innovation, success & competitiveness with Salesforce.
EPAM has been Adobe partner for more than a decade. With a team of over 300 Adobe-certified professionals, EPAM delivers Adobe-powered digital solutions that help clients formulate a digital strategy to fit efficiently and meet the business needs effectively.
EPAM is a trusted SAP partner and a leading provider of eCommerce software implementation for some of the world’s leading companies. Currently, EPAM has more than 1,300 dedicated SAP Commerce Cloud specialists.
EPAM Remains Resilient Amid Geopolitical Tensions
EPAM’s latest quarterly performance reflects its resiliency amid massive business disruptions caused by the Russia-Ukraine war. In late February 2022, the company announced the discontinuation of its services in Russia in support of Ukraine.
EPAM had significant exposure in the region, with most of its delivery centers in the CEE. The company’s largest delivery centers were in Belarus, Russia and Ukraine. As of Dec 31, 2021, it had approximately 9,000 and 12,400 employees in Russia and Ukraine, respectively, making the company particularly vulnerable to the conflict.
However, following the Russia-Ukraine war, the company is trying to diversify its delivery locations by opening new sites across India, Latin America and Central and Western Asia. The second-quarter 2022 performance reflects how quickly the company has moved its delivery centers with minimal business disruptions.
With the aforementioned move, EPAM’s revenues jumped 35.6% year-over-year to $1.2 billion and surpassed the Zacks Consensus Estimates of $1.14 billion. On a constant-currency basis, revenues were up 29.2%. The company’s non-GAAP earnings soared 16.1% to $2.38 per share and beat the consensus mark of $1.71.
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