The most profitable IT companies in Ukraine

In recent years, BRDO, together with other NGOs and entrepreneurs, demanded the publication of financial statements of enterprises in the form of open data. As a result, in March 2023, the State Statistics Service of Ukraine finally published the information submitted by companies for 2022. Using these data, the BRDO IT&Telecom sector team prepared an overview of the situation on the Ukrainian IT market.

Before that, for similar studies, we relied on generalised information, surveys, and expert assessments. The release of the financial statements allowed BRDO to analyse the industry in more detail. When working on the review, the BRDO team used data from the State Statistics Service, aggregated by the analytical service YouControl.

Which of the Ukrainian IT companies earn the most?

The most profitable on the Ukrainian market are product companies. They often work at the intersection of IT and other sectors: banking (LLC “Fintech Band”), payment processing (LLC “Ukrainian Processing Center” and “Visa Ukraine”) and online retail (LLC “Uaprom”). Among the service companies, the market leader Epam Systems LLC has the highest margin.

The highest profits in absolute terms are at large service companies EPAM Systems LLC and GlobalLogic Ukraine LLC and at the product company Fintech Band LLC.

The dominant model on the market is still contracting by individual entrepreneurs. But some companies prefer official hiring of employees.

Of the 10 largest official IT employers, 7 are residents of Diia.City. Residency allows labor taxation at lower rates and will limit work under the PE model in the future. It is expected that companies that already employ employees under labor contracts will have more motivation to acquire residency. It is also possible that companies create separate legal entities specifically to obtain this status.

With this material, we continue the series of publications dedicated to the review of the largest Ukrainian IT companies in 2022 by the amount of net income. The full version of the document, which provides information on the top 30 companies, is available at the link. The previous material of the series is here.