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...
Autore: Business Wire
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:
“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:
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 | ) |
|
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