Perficient Reports Fourth Quarter and Full Year 2020 Results
Perficient reported strong financial results for Q4 and year-end 2020, with service revenues up 13% YoY to $158.9 million. Total revenues grew 12% to $162.6 million. However, net income dropped 29% to $8.4 million amid increased expenses and acquisition costs. Adjusted EPS rose 31% to $0.76 per share, while adjusted EBITDA increased 32% to $35 million. For the year, service revenues climbed 10% to $599.5 million, but net income fell 19% to $30.2 million. Despite challenges, CEO Jeffrey Davis emphasized ongoing digital transformation and growth opportunities, anticipating further revenue and margin expansion.
- Service revenues up 13% YoY to $158.9 million in Q4.
- Total revenues increased 12% YoY to $162.6 million in Q4.
- Adjusted EPS rose 31% YoY to $0.76.
- Adjusted EBITDA grew 32% YoY to $35 million.
- Service revenues for the year increased 10% to $599.5 million.
- Net income decreased 29% YoY to $8.4 million in Q4.
- GAAP EPS fell 28% YoY to $0.26.
- Net income for the year declined 19% to $30.2 million.
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 and year ended December 31, 2020.
Financial Highlights
For the quarter ended December 31, 2020:
-
Services revenues excluding reimbursable expenses increased
13% to$158.9 million from$140.5 million in the fourth quarter of 2019; -
Total revenues increased
12% to$162.6 million from$145.2 million in the fourth quarter of 2019; -
Net income decreased
29% to$8.4 million from$11.8 million in the fourth quarter of 2019, reflecting, among other things, an adjustment to fair value of contingent consideration resulting from performance above expectations by each of our three 2020 acquisitions, increased amortization expense and increased interest expense, partially offset by improved operating results; -
GAAP earnings per share results on a fully diluted basis decreased
28% to$0.26 from$0.36 in the fourth quarter of 2019, primarily as a result of the decrease 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
31% to$0.76 from$0.58 in the fourth quarter of 2019; and -
Adjusted EBITDA (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased
32% to$35.0 million from$26.5 million in the fourth quarter of 2019.
For the year ended December 31, 2020:
-
Services revenues excluding reimbursable expenses increased
10% to$599.5 million from$546.4 million in 2019; -
Total revenues increased
8% to$612.1 million from$565.5 million in 2019; -
Net income decreased
19% to$30.2 million from$37.1 million in 2019, reflecting, among other things, an adjustment to fair value of contingent consideration resulting from performance above expectations by each of our three 2020 acquisitions, increased amortization expense, a loss on debt extinguishment, increased acquisition costs and increased interest expense, partially offset by improved operating results; -
GAAP earnings per share results on a fully diluted basis decreased
19% to$0.93 from$1.15 in 2019, primarily as a result of the decrease 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
21% to$2.50 from$2.07 in 2019; and -
Adjusted EBITDA (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased
22% to$116.3 million from$95.0 million in 2019.
“In a year marked by uncertainty, challenge and change, Perficient's performance was strong and our momentum accelerated,” said Jeffrey Davis, chairman and CEO. “The pandemic's impact on businesses varied across industries, but its most profound, universal and long-lasting effect was that it made enterprises immediately and acutely aware that digital transformation was required now and permanently. In this environment of increasing customer spend, we're anticipating another year of margin expansion, accelerating revenue, and earnings growth as we continue to aggressively grow our global delivery teams.”
Other Highlights
Among other recent achievements, Perficient:
- Was recognized as a “Leader” in the 2021 Global Outsourcing 100 by the International Association of Outsourcing Professionals (IAOP), naming Perficient one of the world's best outsourcing service providers and advisors;
- Named Tom Hogan President, in addition to his existing role of Chief Operating Officer;
- Appointed five Area Vice Presidents, expanding Perficient's executive leadership team to drive continued growth and operational excellence across the company while delivering superior solutions for clients;
- Announced that 10 colleagues were designated as Sitecore Most Valuable Professionals (MVPs). Perficient also achieved the Sitecore Content Hub Specialization, further enabling unified customer experiences;
- Achieved the Diamond Level Partner status with OneStream, representing exceptional solution delivery and commitment to customer success;
- Was listed in the Forrester “New Wave: Computer Vision Consultancies, Q4 2020” report, which identified Perficient as one of “13 providers that matter most” with proficiency in AI strategy development and documentation automation;
- Was included in the Forrester “Now Tech: Commerce Services, Q4 2020” report as a provider with a focus on experience and operations, able to build commerce experiences for enterprises and provide services that help build out these experiences around order management, inventory management, and payment gateways;
- Launched Perficient Bright Paths, a program designed to advance STEM education and career opportunities for underrepresented constituencies and communities; and
- Was named a Top Workplace by the Detroit Free Press, adding to 2020 best workplace distinctions awarded in St. Louis, Charlotte, Atlanta, Chicago, Southern California, and Minnesota.
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 first quarter 2021 revenue to be in the range of
Perficient is providing full year 2021 revenue guidance in the range of
Conference Call Details
Perficient will host a conference call regarding fourth quarter and full year 2020 financial results today at 11 a.m. Eastern.
WHAT: Perficient Reports Fourth Quarter and Full Year 2020 Results |
WHEN: February 25, 2021, at 11 a.m. Eastern |
CONFERENCE CALL NUMBERS: 855-246-0403 (U.S. and Canada); 414-238-9806 (International) |
PARTICIPANT PASSCODE: 7685538 |
REPLAY TIMES: February 25, 2021, at 2 p.m. Eastern, through Thursday, March 4, 2021, at 2 p.m. Eastern |
REPLAY NUMBER: 855-859-2056 (U.S. and Canada); 404-537-3406 (International) |
REPLAY PASSCODE: 7685538 |
About Perficient
Perficient is a 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 related to financial results and business outlook for 2021. 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 the following, many of which are, or may be, amplified by the novel coronavirus (COVID-19) pandemic:
(1) the possibility that our actual results do not meet the projections and guidance contained in this news release; |
(2) the impact of the general economy and economic and political uncertainty on our business; |
(3) the impact of the COVID-19 pandemic on our business; |
(4) risks associated with potential changes to federal, state, local and foreign laws, regulations, and policies; |
(5) 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. obtaining favorable pricing to reflect services provided; |
f. risk of loss of one or more significant software vendors; |
g. maintaining a balance of our supply of skills and resources with client demand; |
h. changes to immigration policies; |
i. protecting our clients’ and our data and information; |
j. changes to tax levels, audits, investigations, tax laws or their interpretation; |
k. making appropriate estimates and assumptions in connection with preparing our consolidated financial statements; and |
l. maintaining effective internal controls; |
(6) risks associated with managing growth organically and through acquisitions; |
(7) 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; |
(8) legal liabilities, including intellectual property protection and infringement or the disclosure of personally identifiable information; and |
(9) the risks detailed from time to time within our filings with the Securities and Exchange Commission. |
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 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) |
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Three Months Ended
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|
Year Ended
|
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|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Services excluding reimbursable expenses |
$ |
158,917 |
|
|
$ |
140,475 |
|
|
$ |
599,473 |
|
|
$ |
546,444 |
|
Reimbursable expenses |
2,673 |
|
|
3,283 |
|
|
10,110 |
|
|
15,474 |
|
||||
Total services |
161,590 |
|
|
143,758 |
|
|
609,583 |
|
|
561,918 |
|
||||
Software and hardware |
964 |
|
|
1,401 |
|
|
2,550 |
|
|
3,609 |
|
||||
Total revenues |
162,554 |
|
|
145,159 |
|
|
612,133 |
|
|
565,527 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Cost of revenues (exclusive of depreciation and amortization, shown separately below) |
|
|
|
|
|
|
|
||||||||
Cost of services |
97,536 |
|
|
87,727 |
|
|
373,057 |
|
|
347,585 |
|
||||
Stock compensation |
2,111 |
|
|
1,665 |
|
|
7,666 |
|
|
6,628 |
|
||||
Total cost of revenues |
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FAQ
What were Perficient's financial results for Q4 2020?
Perficient's Q4 2020 service revenues rose 13% to $158.9 million, while total revenues increased 12% to $162.6 million.
How did Perficient's net income change in Q4 2020?
Net income for Q4 2020 decreased by 29% to $8.4 million compared to the same quarter in 2019.
What is the adjusted EPS for Perficient in Q4 2020?
Adjusted earnings per share for Q4 2020 increased 31% to $0.76.
What were the total revenues for Perficient for the year 2020?
Perficient's total revenues for the year ended December 31, 2020, were $612.1 million, an 8% increase from 2019.
What challenges did Perficient face in 2020?
Perficient faced challenges including increased expenses, acquisition costs, and a loss on debt extinguishment affecting net income.
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PRFT Stock Data
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Information Technology Services
Services-computer Programming Services
United States of America
SAINT LOUIS
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