Perficient Reports First Quarter 2021 Results

Rhea-AI Summary

Perficient, Inc. (Nasdaq: PRFT) reported strong financial results for Q1 2021, with services revenues up 18% to $166.5 million and total revenues increasing 16% to $169.3 million compared to Q1 2020. Net income surged 51% to $13.6 million, while GAAP EPS rose 52% to $0.41. The company anticipates Q2 2021 revenue between $173 million and $179 million and is raising its full-year revenue outlook to $685 million-$710 million. Perficient's offshore revenue grew 130%, showcasing significant acceleration in growth and reinforcing its market position as a leading digital consultancy.

Positive

• Q1 2021 services revenues increased 18% to $166.5 million.
• Total revenues rose 16% to $169.3 million year-over-year.
• Net income increased 51% to $13.6 million.
• GAAP EPS improved by 52% to $0.41 compared to Q1 2020.
• Adjusted EPS increased 47% to $0.75.
• Adjusted EBITDA grew 46% to $34.6 million.
• Q2 2021 revenue guidance set between $173 million and $179 million.
• Raised full-year 2021 revenue guidance to $685-$710 million.

Negative

• None.

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 March 31, 2021.

Financial Highlights

For the quarter ended March 31, 2021:

• Services revenues excluding reimbursable expenses increased 18% to $166.5 million from $141.0 million in the first quarter of 2020;
• Total revenues increased 16% to $169.3 million from $145.6 million in the first quarter of 2020;
• Net income increased 51% to $13.6 million from $9.0 million in the first quarter of 2020, reflecting, among other things, the continued mix shift to higher margin offshore delivery;
• GAAP earnings per share results on a fully diluted basis increased 52% to $0.41 from $0.27 in the first quarter of 2020, primarily as a result of the increase in net income discussed above;
• Adjusted earnings per share results (a non-GAAP measure; see attached schedule, which reconciles to GAAP earnings per share) on a fully diluted basis increased 47% to $0.75 from $0.51 in the first quarter of 2020; and
• Adjusted EBITDA (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased 46% to $34.6 million from $23.8 million in the first quarter of 2020.

“Perficient's performance, portfolio, presence and potential has never been stronger,” said Jeffrey Davis, chairman and CEO. “The world's leading enterprises and biggest brands are increasingly realizing that partnering with Perficient delivers near-term value and long-term advantage. Our offshore revenue grew 130% during the quarter, with 42% organic growth. That is a clear demonstration that our momentum is accelerating and that we are boldly redefining what the world's greatest companies can expect from a global digital consultancy.”

Other Highlights

Among other recent achievements, Perficient:

• Expanded and extended Perficient’s stock repurchase program on April 27, 2021 by an additional $50.0 million of our common stock for a total repurchase program of $315.0 million since the program’s inception in 2008, and extended the expiration date of the program to December 31, 2022 (as of March 31, 2021, under this program, Perficient had repurchased a total of 15.9 million shares at a cost of $244.5 million);
• Received the Red Hat Application Platform Success Partner of the Year award, recognizing excellence in delivering value for clients through application platform modernization;
• Was named the Talend U.S. Partner of the Year, recognizing Perficient's exceptional innovation and leadership in advancing digital transformation initiatives for Talend customers;
• Was recognized by Modern Healthcare as the fourth-largest healthcare IT consulting firm based on 2020 revenue and the number of health information technology contracts and consultants;
• Gained a CMMI Level 5 maturity rating, the highest available, from the Capability Maturity Model Integration (CMMI) Institute for its global delivery center in Nagpur, India;
• Announced its collaboration with the Mark Cuban Foundation to host AI Bootcamps to educate underserved high school students in the Dallas, Texas area and train next generation AI leaders; and
• Was included in three Forrester Now Tech reports, including the “Now Tech: Application Modernization and Migration Services, Q1 2021” report, the “Now Tech: AI Consultancies, Q1 2021” report, and the “Now Tech: Salesforce Consulting Partners, Q1 2021” report.

Business Outlook

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. See “Safe Harbor Statement” below.

Perficient expects its second quarter 2021 revenue to be in the range of $173 million to $179 million. Second quarter GAAP earnings per share is expected to be in the range of $0.41 to $0.44. Second quarter adjusted earnings per share (a non-GAAP measure; see attached schedule which reconciles to GAAP earnings per share guidance) is expected to be in the range of $0.77 to $0.80.

Perficient is raising its previously provided full year 2021 revenue guidance range from $670 million to $704 million to $685 million to $710 million, raising its 2021 GAAP earnings per share guidance range from $1.57 to $1.72 to $1.72 to $1.87 and raising its 2021 adjusted earnings per share (a non-GAAP measure; see attached schedule which reconciles to GAAP earnings per share guidance) guidance range from $2.85 to $3.00 to $3.00 to $3.15.

Conference Call Details

Perficient will host a conference call regarding first quarter financial results today at 11 a.m. Eastern.

WHAT: Perficient Reports First Quarter 2021 Results
WHEN: April 29, 2021, at 11 a.m. Eastern
CONFERENCE CALL NUMBERS: 855-246-0403 (U.S. and Canada); 414-238-9806 (International)
PARTICIPANT PASSCODE: 3929328
REPLAY TIMES: April 29, 2021, at 2 p.m. Eastern, through Thursday, May 6, 2021, at 2 p.m. Eastern
REPLAY NUMBER: 855-859-2056 (U.S. and Canada); 404-537-3406 (International)
REPLAY PASSCODE: 3929328

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 la

FAQ

What were Perficient's Q1 2021 financial results?

Perficient reported Q1 2021 revenues of $169.3 million, net income of $13.6 million, and GAAP earnings per share of $0.41.

How did offshore revenue perform for Perficient in Q1 2021?

Offshore revenue grew by 130% in Q1 2021, with 42% organic growth.

What is the new revenue guidance for Perficient in 2021?

Perficient raised its full-year 2021 revenue guidance to a range of $685 million to $710 million.

When will Perficient host its conference call regarding Q1 2021 results?

Perficient's conference call for Q1 2021 results is scheduled for April 29, 2021, at 11 a.m. Eastern.

What are the earnings expectations for Perficient in Q2 2021?

Perficient expects Q2 2021 GAAP EPS to be in the range of $0.41 to $0.44.