Perficient Reports Second Quarter 2024 Results
Perficient, Inc. (Nasdaq: PRFT) (“Perficient”), the leading global digital consultancy transforming the world’s largest enterprises and biggest brands, today reported its financial results for t...
ST. LOUIS: Perficient, Inc. (Nasdaq: PRFT) (“Perficient”), the leading global digital consultancy transforming the world’s largest enterprises and biggest brands, today reported its financial results for the quarter ended June 30, 2024.
Financial Highlights
For the quarter ended June 30, 2024:
- Revenues decreased 4% to $222.8 million from $231.1 million in the second quarter of 2023;
- Net income decreased 34% to $17.4 million, compared to $26.4 million in the second quarter of 2023;
- GAAP earnings per share results on a fully diluted basis decreased 33% to $0.49 from $0.73 in the second quarter of 2023;
- Adjusted earnings per share results (a non-GAAP measure; see attached schedule, which reconciles to GAAP earnings per share) on a fully diluted basis decreased 8% to $0.92 from $1.00 in the second quarter of 2023; and
- Adjusted EBITDA (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) decreased 10% to $43.3 million from $48.2 million in the second quarter of 2023.
“We remain well positioned to continue to execute against our long-term strategy and goals,” said Tom Hogan, President and CEO. “We’re excited to move forward on our global growth journey.”
Other Highlights
Among other recent achievements, Perficient:
- Was named a Major Player in the “IDC MarketScape: Worldwide Cloud Professional Services” 2024 Vendor Assessment and was described as “a midsized cloud services provider that can combine client intimacy with industrial-strength capabilities in technology transformation and experience design and build;”
- Launched Scarlett, an AI-powered virtual assistant, to its global workforce. Scarlett was built by Perficient’s AI experts to help colleagues increase their efficiency with work-related tasks by answering questions, connecting them with internal resources, providing translation services, sending timely reminders, and more;
- Was listed as a System Integrator Services and Consultancy in the “IDC Market Glance: Digital Commerce, Q2 2024” and the “IDC Market Glance: Commerce Layer Software and Services, Q2 2024” reports, acknowledging Perficient’s deep understanding of commerce software and ability to deliver experience-driven commerce solutions;
- Achieved the Adobe Customer Journey Analytics Specialization, underscoring Perficient’s commitment to delivering exceptional Adobe solutions and services and its ability to integrate data into a single interface that enables real-time omnichannel analysis and visualization;
- Earned the Salesforce Data Cloud Expert Specialization, serving as a testament to Perficient’s commitment to revolutionizing how businesses leverage their data to drive business outcomes, unlock trapped data, and enhance the customer experience; and
- Launched the PRISM Employee Resource Group, which is empowering the LGBTQ+ community and its allies through community building and education, advancing inclusive business practices, and fostering a supportive work environment.
Transaction with EQT
Perficient previously announced it has entered into a definitive agreement to be acquired by an affiliate of BPEA Private Equity Fund VIII (“EQT”), part of EQT AB. As a result of that pending transaction, Perficient will not host an earnings conference call to discuss its second quarter results or provide financial guidance in conjunction with its second quarter earnings release.
About Perficient
Perficient is the leading global digital consultancy. We imagine, create, engineer, and run digital transformation solutions that help our clients exceed customers’ expectations, outpace competition, and grow their business. With unparalleled strategy, creative, and technology capabilities, we bring big thinking and innovative ideas, along with a practical approach to help the world’s largest enterprises and biggest brands succeed. Traded on the Nasdaq Global Select Market, Perficient is a member of the Russell 2000 index and the S&P SmallCap 600 index. For more information, visit www.perficient.com.
Safe Harbor Statement
Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information. Those statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements include (but are not limited to) those disclosed under the heading “Risk Factors” in our most recently filed annual report on Form 10-K and other securities filings, and the following:
(1) | the impact of the general economy and economic and political uncertainty on our business; | |
(2) | risks associated with potential changes to U.S. and foreign laws, regulations, and policies; | |
(3) | risks associated with the operation of our business generally, including: | |
| a. client demand for our services and solutions; | |
| b. effectively competing in a highly competitive market; | |
| c. risks from international operations including fluctuations in exchange rates; | |
| d. adapting to changes in technologies and offerings; | |
| e. ongoing transition of our executive leadership team; | |
| f. obtaining favorable pricing to reflect services provided; | |
| g. risk of loss of one or more significant software vendors; | |
| h. maintaining a balance of our supply of skills and resources with client demand; | |
| i. changes to immigration policies; | |
| j. protecting our clients’ and our data and information; | |
| k. changes to tax levels, audits, investigations, tax laws or their interpretation; | |
| l. making appropriate estimates and assumptions in connection with preparing our consolidated financial statements; and | |
| m. maintaining effective internal controls; | |
(4) | risks associated with managing growth organically and through acquisitions; | |
(5) | risks associated with servicing our debt, the potential impact on the value of our common stock from the conditional conversion features of our debt and the associated convertible note hedge transactions; | |
(6) | legal liabilities, including intellectual property protection and infringement or the disclosure of personally identifiable information; | |
(7) | the risks detailed from time to time within our filings with the Securities and Exchange Commission (the “SEC”); | |
(8) | uncertainties associated with the proposed merger of Perficient with an affiliate of BPEA Private Equity Fund VIII (“EQT”); | |
(9) | the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement entered into in connection with the proposed merger; | |
(10) | risks related to disruption of management time from ongoing business operations due to the proposed merger; | |
(11) | the risk that the conditions to the proposed merger may not be satisfied in a timely manner or at all; | |
(12) | the risk of any unexpected costs or expenses resulting from the proposed merger; | |
(13) | restrictions imposed on our business during the pendency of the proposed merger; | |
(14) | the risk of any litigation relating to the proposed merger; and | |
(15) | the risk that the proposed merger and its announcement could have an adverse effect on the ability of Perficient to retain and hire key personnel and to maintain relationships with customers, vendors, partners, employees, stockholders and other business relationships and on its operating results and business generally. |
This list is not exhaustive but is designed to highlight important factors that may impact our forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. This cautionary statement is provided pursuant to Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.
Perficient, Inc. Unaudited Consolidated Statements of Operations (in thousands, except per share information) | |||||||||||||||
| Three Months Ended June 30, |
| Six Months Ended June 30, | ||||||||||||
|
| 2024 |
|
|
| 2023 |
|
|
| 2024 |
|
|
| 2023 |
|
Revenues |
|
|
|
|
|
|
| ||||||||
Services excluding reimbursable expenses | $ | 219,543 |
|
| $ | 228,573 |
|
| $ | 430,873 |
|
| $ | 456,957 |
|
Reimbursable expenses |
| 2,911 |
|
|
| 2,127 |
|
|
| 6,492 |
|
|
| 4,596 |
|
Total services |
| 222,454 |
|
|
| 230,700 |
|
|
| 437,365 |
|
|
| 461,553 |
|
Software and hardware |
| 363 |
|
|
| 405 |
|
|
| 756 |
|
|
| 960 |
|
Total revenues |
| 222,817 |
|
|
| 231,105 |
|
|
| 438,121 |
|
|
| 462,513 |
|
|
|
|
|
|
|
|
| ||||||||
Cost of revenues (exclusive of depreciation and amortization, shown separately below) |
|
|
|
|
|
|
| ||||||||
Cost of services |
| 139,535 |
|
|
| 143,560 |
|
|
| 279,134 |
|
|
| 285,248 |
|
Stock compensation |
| 2,535 |
|
|
| 2,608 |
|
|
| 5,042 |
|
|
| 5,132 |
|
Total cost of revenues |
| 142,070 |
|
|
| 146,168 |
|
|
| 284,176 |
|
|
| 290,380 |
|
|
|
|
|
|
|
|
| ||||||||
Selling, general and administrative |
| 40,027 |
|
|
| 39,390 |
|
|
| 79,270 |
|
|
| 78,994 |
|
Stock compensation |
| 3,731 |
|
|
| 4,787 |
|
|
| 13,654 |
|
|
| 9,103 |
|
Total selling, general and administrative |
| 43,758 |
|
|
| 44,177 |
|
|
| 92,924 |
|
|
| 88,097 |
|
|
|
|
|
|
|
|
| ||||||||
Depreciation |
| 1,840 |
|
|
| 2,224 |
|
|
| 3,851 |
|
|
| 4,529 |
|
Amortization |
| 4,862 |
|
|
| 5,523 |
|
|
| 9,748 |
|
|
| 11,340 |
|
Acquisition costs |
| 132 |
|
|
| (71 | ) |
|
| 1,050 |
|
|
| 8 |
|
Transaction expenses |
| 6,688 |
|
|
| — |
|
|
| 7,163 |
|
|
| — |
|
Adjustment to fair value of contingent consideration |
| 67 |
|
|
| (2,701 | ) |
|
| 108 |
|
|
| (4,727 | ) |
Income from operations |
| 23,400 |
|
|
| 35,785 |
|
|
| 39,101 |
|
|
| 72,886 |
|
|
|
|
|
|
|
|
| ||||||||
Net interest (income) expense |
| (729 | ) |
|
| 296 |
|
|
| (1,496 | ) |
|
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related news
Last NewsDronus gets a strategic investment by Eni NextEni's VC company invest in the Italian drone company to develop new solutions for industrial plants monitoring Technology Reply wins the 2024 Oracle Partner Awards - Europe South InnovationOracle recognizes Technology Reply’s ability to develop and deliver pioneering solutions through partnering with Oracle 25 Italian Startups Will Be Present at Expand North Star 2024Scheduled for October, the world's largest startup event will bring together more than 2,000 exhibitors in Dubai, UAE Partitalia: Italian IoT innovation in San FranciscoThe Italian IoT company is in the US for the second phase of CALL4INNOVIT Most readEnterprises Turning to Cloud for Unified AI, Data Platforms$III #AI--Enterprises are turning to the cloud to access the resources they need to execute their AI strategies, according to a new research report from… Offsite Data Center Power Infrastructure Market - Global Forecast to 2030…The "Offsite Data Center Power Infrastructure Market by Component (Solutions and Services), Vertical (BFSI, Media & Entertainment, Government &… Dronus gets a strategic investment by Eni NextEni's VC company invest in the Italian drone company to develop new solutions for industrial plants monitoring Technology Reply wins the 2024 Oracle Partner Awards - Europe South InnovationOracle recognizes Technology Reply’s ability to develop and deliver pioneering solutions through partnering with Oracle G11 Media Networks
InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , 
| ||