Perficient Reports First Quarter 2024 Results | PRFT Stock News

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    Perficient, Inc. reported a decrease in revenues of 7% to $215.3 million for the first quarter of 2024 compared to the same period in 2023. Net income decreased by 57% to $11.6 million, and GAAP earnings per share dropped 56% to $0.33. Adjusted earnings per share also declined 26% to $0.77, while Adjusted EBITDA decreased 27% to $36.5 million. The company has entered into a definitive agreement to be acquired by EQT for approximately $3 billion.

    Negative

    • Revenues declined by 7% to $215.3 million for the first quarter of 2024 compared to the same period in 2023.

    • Net income decreased by 57% to $11.6 million, and GAAP earnings per share dropped 56% to $0.33.

    • Adjusted earnings per share also declined 26% to $0.77, while Adjusted EBITDA decreased 27% to $36.5 million.

    • The company has withdrawn its financial guidance for 2024 and suspended updates due to the pending acquisition by EQT.

    The acquisition of Perficient by EQT for $3 Billion is a significant event, signaling consolidation within the digital consultancy sector. When a reputable private equity firm like EQT opts to buy out a company, it typically reflects a strategic move to leverage the target company’s existing client relationships and operational efficiencies to scale up and potentially streamline services. Analyzing Perficient’s financial performance, with revenues dropping 7% and net income by 57%, one could infer that the acquisition comes at a time when Perficient may benefit from the support and resources of a larger entity like EQT. The decline in net income is particularly steep, which may raise questions about Perficient’s operational costs and market challenges. Despite the downturn in performance, the transaction offers immediate cash value to shareholders, which might be seen as a positive outcome in light of the financial results. Investors should be aware that post-acquisition, equity in Perficient will no longer be publicly traded, so the liquidity of their investment will change.

    Perficient’s reported decrease in GAAP earnings per share by 56% to $0.33 and adjusted EPS by 26% to $0.77, alongside a 27% reduction in adjusted EBITDA, is a clear indication of downward pressure on profitability. These metrics are essential for investors as they reflect not only a company’s profitability but also its operational efficiency and the management’s ability to generate earnings from its revenue. The adjusted figures, often used to provide a ‘cleaner’ view of performance by excluding non-recurring items, also show a significant decline, which may suggest underlying issues with the core business operations. Investors should consider this performance in the context of the overall technology consulting market and also note that financial guidance has been withdrawn due to the pending acquisition, limiting visibility into the company’s future performance.

    Evaluating the broader implications, the acquisition by EQT may signify a bullish stance on the future of digital consultancy, despite Perficient’s recent performance downturn. Given the stated goal of transforming how brands connect with customers, the strategic alignment could herald greater investment in innovation and customer engagement platforms. However, with Perficient’s financial guidance retracted and no future updates forthcoming, investors are left to speculate on future strategic directions and performance outcomes. Market trends toward digital transformation remain strong, suggesting that, if well-integrated, the acquisition could position both entities to capitalize on the expanding market opportunities in the longer term. It’s imperative for investors to monitor post-acquisition developments, particularly how EQT plans to address the current challenges faced by Perficient and how it intends to leverage its strengths to compete in the evolving digital landscape.

    Company enters into definitive agreement to be acquired by EQT for approximately $3 Billion

    ST. LOUIS–(BUSINESS WIRE)– 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, 2024.

    Financial Highlights

    For the quarter ended March 31, 2024:

    • Revenues decreased 7% to $215.3 million from $231.4 million in the first quarter of 2023;
    • Net income decreased 57% to $11.6 million, compared to $26.8 million in the first quarter of 2023;
    • GAAP earnings per share results on a fully diluted basis decreased 56% to $0.33 from $0.75 in the first 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 26% to $0.77 from $1.04 in the first quarter of 2023; and
    • Adjusted EBITDA (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) decreased 27% to $36.5 million from $50.1 million in the first quarter of 2023.

    “Our business is steadily improving and our pipeline remains robust,” said Tom Hogan, President and CEO. “We remain confident that momentum will continue to build throughout 2024. We are also excited to have reached the separately announced agreement with EQT, which provides our stockholders with compelling, certain cash value for their shares. EQT shares our vision for the future as we transform how the world’s biggest brands connect with customers.”

    Other Highlights

    Among other recent achievements, Perficient:

    • Was named a 2024 Top Workplace by USA Today, serving as a testament to Perficient’s collaborative and people-first global culture. Perficient ranks 26 on the top 100 list of large employers in the U.S.;
    • Published the 2023 Community Impact Report, highlighting the Corporate Social Responsibility initiatives Perficient and its colleagues are supporting to advance STEM education, improve health and well-being, and make a difference in our global communities;
    • Entered into a multi-year and multi-faceted partnership with professional golfer and two-time PGA TOUR winner Josef “Sepp” Straka in a marketing and sponsorship relationship;
    • Received an Innovation in Philanthropy Award from the St. Louis Business Journal for its partnership with the Mark Cuban Foundation to host AI Bootcamps for high school students. Perficient will host seven AI Bootcamps this fall;
    • Received the 2024 Appian Partner Impact and Excellence Award for Delivery, recognizing Perficient for excellence in creating and delivering impactful solutions that exceed customer expectations;
    • Introduced the Perficient Gives Global Grants Program, offering global colleagues the opportunity to nominate a charity to receive a monetary donation from Perficient;
    • Was included in Forrester’s “Adobe Services Landscape, Q1, 2024” report as a medium-sized consultancy helping companies keep pace in B2B marketing engagement, workflow management, and digital enrollment and onboarding; and
    • Was recognized in Forrester’s “Automation Fabric Services Landscape, Q1 2024” as a large consultancy providing strategy consulting, advisory, and implementation services to help develop automation fabric and support autonomous workflows within an enterprise.

    Transaction with EQT

    In a separate press release issued today, Perficient 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, a purpose-driven global investment organization. The press release is available via Perficient’s website under the Investor Relations section.

    In light of the announced transaction, Perficient will not host an earnings conference call or provide financial guidance in conjunction with this earnings release. Perficient is also withdrawing its previously announced financial guidance for 2024 and has suspended any further updates as a result of the pending transaction.

    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 related to financial results and business outlook for 2024. 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 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)

    risks associated with potential changes to U.S. and foreign laws, regulations, and policies;

    (4)

    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;

    (5)

    risks associated with managing growth organically and through acquisitions;

    (6)

    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;

    (7)

    legal liabilities, including intellectual property protection and infringement or the disclosure of personally identifiable information;

    (8)

    the risks detailed from time to time within our filings with the Securities and Exchange Commission (the “SEC”);

    (9)

    uncertainties associated with the proposed merger of Perficient with an affiliate of BPEA Private Equity Fund VIII (“EQT”);

    (10)

    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;

    (11)

    risks related to disruption of management time from ongoing business operations due to the proposed merger;

    (12)

    the risk that the conditions to the proposed merger may not be satisfied in a timely manner or at all;

    (13)

    the risk of any unexpected costs or expenses resulting from the proposed merger;

    (14)

    restrictions imposed on our business during the pendency of the proposed merger;

    (15)

    the risk of any litigation relating to the proposed merger; and

    (16)

    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

    March 31,

     

     

    2024

     

     

     

    2023

     

    Revenues

     

     

     

    Services excluding reimbursable expenses

    $

    211,330

     

     

    $

    228,384

     

    Reimbursable expenses

     

    3,581

     

     

     

    2,469

     

    Total services

     

    214,911

     

     

     

    230,853

     

    Software and hardware

     

    393

     

     

     

    555

     

    Total revenues

     

    215,304

     

     

     

    231,408

     

     

     

     

     

    Cost of revenues (exclusive of depreciation and amortization, shown separately below)

     

     

     

    Cost of services

     

    139,599

     

     

     

    141,688

     

    Stock compensation

     

    2,507

     

     

     

    2,524

     

    Total cost of revenues

     

    142,106

     

     

     

    144,212

     

     

     

     

     

    Selling, general and administrative

     

    39,243

     

     

     

    39,604

     

    Stock compensation

     

    9,923

     

     

     

    4,316

     

    Total selling, general and administrative

     

    49,166

     

     

     

    43,920

     

     

     

     

     

    Depreciation

     

    2,011

     

     

     

    2,305

     

    Amortization

     

    4,886

     

     

     

    5,817

     

    Acquisition costs

     

    1,393

     

     

     

    79

     

    Adjustment to fair value of contingent consideration

     

    41

     

     

     

    (2,026

    )

    Income from operations

     

    15,701

     

     

     

    37,101

     

     

     

     

     

    Net interest (income) expense

     

    (767

    )

     

     

    505

     

    Net other (income) expense

     

    (45

    )

     

     

    75

     

    Income before income taxes

     

    16,513

     

     

     

    36,521

     

    Provision for income taxes

     

    4,958

     

     

     

    9,721

     

     

     

     

     

    Net income

    $

    11,555

     

     

    $

    26,800

     

     

     

     

     

    Basic net income per share

    $

    0.34

     

     

    $

    0.79

     

    Diluted net income per share

    $

    0.33

     

     

    $

    0.75

     

    Shares used in computing basic net income per share

     

    34,149

     

     

     

    33,914

     

    Shares used in computing diluted net income per share

     

    36,905

     

     

     

    36,697

     

     

     

     

     

    Net income used in computing diluted net income per share

    $

    12,089

     

     

    $

    27,360

     

     
     

    Perficient, Inc.

    Condensed Consolidated Balance Sheets

    (in thousands)

     

     

     

    March 31, 2024
    (unaudited)

     

    December 31, 2023

    Assets

     

     

     

     

    Current assets:

     

     

     

     

    Cash, cash equivalents and restricted cash

     

    $

    118,193

     

     

    $

    128,886

     

    Accounts receivable, net

     

     

    171,838

     

     

     

    178,998

     

    Prepaid expenses

     

     

    5,758

     

     

     

    5,638

     

    Other current assets

     

     

    13,548

     

     

     

    12,431

     

    Total current assets

     

     

    309,337

     

     

     

    325,953

     

    Property and equipment, net

     

     

    10,375

     

     

     

    11,996

     

    Operating lease right-of-use assets

     

     

    22,812

     

     

     

    21,786

     

    Goodwill

     

     

    613,790

     

     

     

    581,387

     

    Intangible assets, net

     

     

    75,430

     

     

     

    71,118

     

    Other non-current assets

     

     

    53,936

     

     

     

    52,364

     

    Total assets

     

    $

    1,085,680

     

     

    $

    1,064,604

     

     

     

     

     

     

    Liabilities and Stockholders’ Equity

     

     

     

     

    Current liabilities:

     

     

     

     

    Accounts payable

     

    $

    13,919

     

     

    $

    18,688

     

    Other current liabilities

     

     

    60,104

     

     

     

    59,784

     

    Total current liabilities

     

     

    74,023

     

     

     

    78,472

     

    Long-term debt, net

     

     

    397,446

     

     

     

    396,874

     

    Operating lease liabilities

     

     

    17,915

     

     

     

    16,446

     

    Other non-current liabilities

     

     

    42,566

     

     

     

    42,189

     

    Total liabilities

     

    $

    531,950

     

     

    $

    533,981

     

    Stockholders’ equity:

     

     

     

     

    Preferred stock

     

    $

     

     

    $

     

    Common stock

     

     

    54

     

     

     

    53

     

    Additional paid-in capital

     

     

    448,855

     

     

     

    432,160

     

    Accumulated other comprehensive loss

     

     

    (6,336

    )

     

     

    (5,461

    )

    Treasury stock

     

     

    (377,594

    )

     

     

    (373,325

    )

    Retained earnings

     

     

    488,751

     

     

     

    477,196

     

    Total stockholders’ equity

     

     

    553,730

     

     

     

    530,623

     

    Total liabilities and stockholders’ equity

     

    $

    1,085,680

     

     

    $

    1,064,604

     

     

     

     

     

     

     

    Perficient, Inc.

    Unaudited Condensed Consolidated Statements of Cash Flow

    (in thousands)

     

     

    Three Months Ended March 31,

     

     

    2024

     

     

     

    2023

     

    Net income

    $

    11,555

     

     

    $

    26,800

     

    Adjustments to reconcile net income to net cash provided by operations

     

    18,995

     

     

     

    11,493

     

    Changes in operating assets and liabilities, net of business acquisitions

     

    1,421

     

     

     

    3,038

     

    Net cash provided by operating activities

     

    31,971

     

     

     

    41,331

     

    Net cash used in investing activities

     

    (33,817

    )

     

     

    (1,315

    )

    Net cash used in financing activities

     

    (8,588

    )

     

     

    (29,422

    )

    Effect of exchange rate on cash, cash equivalents and restricted cash

     

    (259

    )

     

     

    271

     

    Change in cash, cash equivalents and restricted cash

     

    (10,693

    )

     

     

    10,865

     

    Cash, cash equivalents and restricted cash at beginning of period

     

    128,886

     

     

     

    30,130

     

    Cash, cash equivalents and restricted cash at end of period

    $

    118,193

     

     

    $

    40,995

     

    See the Company’s Form 10-Q for the full consolidated statements of cash flows.

    About Non-GAAP Financial Information

    This news release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), please see the section entitled “About Non-GAAP Financial Measures” and the accompanying tables entitled “Reconciliation of GAAP to Non-GAAP Measures.”

    About Non-GAAP Financial Measures

    Perficient provides non-GAAP financial measures for adjusted EBITDA (earnings before income taxes, interest, depreciation, amortization, acquisition costs, adjustment to fair value of contingent consideration, stock compensation and the impact of other infrequent or unusual transactions), adjusted net income, and adjusted earnings per share data as supplemental information regarding Perficient’s business performance. Perficient believes that these non-GAAP financial measures are useful to investors because they provide investors with a better understanding of Perficient’s past financial performance and future results. Perficient’s management uses these non-GAAP financial measures when it internally evaluates the performance of Perficient’s business and makes operating decisions, including internal operating budgeting, performance measurement, and the calculation of bonuses and discretionary compensation. Management excludes stock-based compensation related to restricted stock awards, the amortization of intangible assets, amortization of debt issuance costs related to convertible senior notes, acquisition costs, adjustments to the fair value of contingent consideration, net other income and expense, the impact of other infrequent or unusual transactions, and income tax effects of the foregoing, when making operational decisions.

    Perficient believes that providing the non-GAAP financial measures to its investors is useful because it allows investors to evaluate Perficient’s performance using the same methodology and information used by Perficient’s management. Specifically, adjusted net income is used by management primarily to review business performance and determine performance-based incentive compensation for executives and other employees. Management uses adjusted EBITDA to measure operating profitability, evaluate trends, and make strategic business decisions.

    Non-GAAP financial measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of discretionary judgment as to which charges are excluded from the non-GAAP financial measure. However, Perficient’s management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA, adjusted net income, and adjusted earnings per share. In addition, some items that are excluded from adjusted net income and adjusted earnings per share can have a material impact on cash. Management compensates for these limitations by evaluating the non-GAAP measure together with the most directly comparable GAAP measure. Perficient has historically provided non-GAAP financial measures to the investment community as a supplement to its GAAP results to enable investors to evaluate Perficient’s business performance in the way that management does. Perficient’s definition may be different from similar non-GAAP financial measures used by other companies and/or analysts.

    The non-GAAP adjustments, and the basis for excluding them, are outlined below:

    Amortization
    Perficient has incurred expense on amortization of intangible assets primarily related to various acquisitions. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that eliminating this expense from its non-GAAP financial measures is useful to investors because the amortization of intangible assets can be inconsistent in amount and frequency, and is significantly impacted by the timing and magnitude of Perficient’s acquisition transactions, which also vary substantially in frequency from period to period.

    Acquisition Costs
    Perficient incurs transaction costs related to merger and acquisition-related activities which are expensed in its GAAP financial statements. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that excluding these expenses from its non-GAAP financial measures is useful to investors because these are expenses associated with each transaction and are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.

    Adjustment to Fair Value of Contingent Consideration
    Perficient is required to remeasure its contingent consideration liability related to acquisitions each reporting period until the contingency is settled. Any changes in fair value are recognized in earnings. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that excluding these adjustments from its non-GAAP financial measures is useful to investors because they are related to acquisitions and are inconsistent in amount and frequency from period to period.

    Amortization of Debt Issuance Costs
    On November 9, 2021, Perficient issued $380.0 million aggregate principal amount of 0.125% Convertible Senior Notes due 2026, and on August 14, 2020, Perficient issued $230.0 million aggregate principal amount of 1.250% Convertible Senior Notes due 2025 (the “2026 Notes,” and “2025 Notes,” respectively, and collectively, the “Notes”) in private placements to qualified institutional purchasers. Issuance costs attributable to the Notes, in addition to issuance costs related to Perficient’s credit agreement, are being amortized to interest expense over their respective terms. Perficient believes that excluding these non-cash expenses from its non-GAAP financial measures is useful to investors because the expenses are not reflective of Perficient’s business performance.

    Foreign Exchange Loss (Gain)
    Non-operating foreign currency exchange gains and losses, inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in net other expense (income) in our consolidated statements of operations. As our operations expand into countries outside of the United States, foreign exchange gains and losses have and will become increasingly material. Perficient believes that excluding these gains and losses from its non-GAAP financial measures is useful to investors because foreign exchange gains and losses will vary as the underlying currencies fluctuate, which makes it difficult to compare current and historical results.

    Stock Compensation
    Perficient incurs stock-based compensation expense under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation. Perficient excludes stock-based compensation expense and the related tax effects for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share because stock-based compensation is a non-cash expense, which Perficient believes is not reflective of its business performance. The nature of stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions, and different award types, making the comparison of current results with forward-looking guidance potentially difficult for investors to interpret. The tax effects of stock-based compensation expense may also vary significantly from period to period, without any change in underlying operational performance, thereby obscuring the underlying profitability of operations relative to prior periods. Perficient believes that non-GAAP measures of profitability, which exclude stock-based compensation, are widely used by analysts and investors.

    Dilution Offset from Convertible Note Hedge Transactions
    It is Perficient’s current intent to settle conversions of the Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. Perficient excludes the shares that are issuable upon conversions of the Notes because Perficient expects that the dilution from such shares will be offset by the convertible note hedge transactions entered into in November 2021 and August 2020 in connection with the issuance of the Notes.

     

    Perficient, Inc.
    Reconciliation of GAAP to Non-GAAP Measures
    (unaudited)
    (in thousands, except per share data)

     

     

    Three Months Ended
    March 31,

     

     

    2024

     

     

     

    2023

     

    GAAP Net Income

    $

    11,555

     

     

    $

    26,800

     

    Adjustments:

     

     

     

    Provision for income taxes

     

    4,958

     

     

     

    9,721

     

    Amortization

     

    4,886

     

     

     

    5,817

     

    Acquisition costs

     

    1,393

     

     

     

    79

     

    Adjustment to fair value of contingent consideration

     

    41

     

     

     

    (2,026

    )

    Amortization of debt issuance costs

     

    631

     

     

     

    608

     

    Foreign exchange (gain) loss

     

    (22

    )

     

     

    89

     

    Stock compensation

     

    12,430

     

     

     

    6,840

     

    Adjusted Net Income Before Tax

     

    35,872

     

     

     

    47,928

     

    Adjusted income tax (1)

     

    9,183

     

     

     

    12,365

     

    Adjusted Net Income

    $

    26,689

     

     

    $

    35,563

     

     

     

     

     

    GAAP Earnings Per Share (diluted)

    $

    0.33

     

     

    $

    0.75

     

    Adjusted Earnings Per Share (diluted)

    $

    0.77

     

     

    $

    1.04

     

     

     

     

     

    Shares used in computing GAAP Earnings Per Share (diluted)

     

    36,905

     

     

     

    36,697

     

    Dilution offset from convertible note hedge transactions

     

    (2,430

    )

     

     

    (2,430

    )

    Shares used in computing Adjusted Earnings Per Share (diluted)

     

    34,475

     

     

     

    34,267

     

     

     

     

     

    Net income used in computing GAAP Earnings Per Share (diluted)

    $

    12,089

     

     

    $

    27,360

     

    (1)

    The estimated adjusted effective tax rate of 25.6% and 25.8% for the three months ended March 31, 2024 and 2023 has been used to calculate the provision for income taxes for non-GAAP purposes.

     

    Perficient, Inc.
    Reconciliation of GAAP to Non-GAAP Measures
    (unaudited)
    (in thousands)

     

     

    Three Months Ended
    March 31,

     

     

    2024

     

     

     

    2023

     

    GAAP Net Income

    $

    11,555

     

     

    $

    26,800

     

    Adjustments:

     

     

     

    Provision for income taxes

     

    4,958

     

     

     

    9,721

     

    Net interest (income) expense

     

    (767

    )

     

     

    505

     

    Net other (income) expense

     

    (45

    )

     

     

    75

     

    Depreciation

     

    2,011

     

     

     

    2,305

     

    Amortization

     

    4,886

     

     

     

    5,817

     

    Acquisition costs

     

    1,393

     

     

     

    79

     

    Adjustment to fair value of contingent consideration

     

    41

     

     

     

    (2,026

    )

    Stock compensation

     

    12,430

     

     

     

    6,840

     

    Adjusted EBITDA (1)

    $

    36,462

     

     

    $

    50,116

     

    (1)

    Adjusted EBITDA is a non-GAAP performance measure and is not intended to be a performance measure that should be regarded as an alternative to or more meaningful than either GAAP operating income or GAAP net income. Adjusted EBITDA measures presented may not be comparable to similarly titled measures presented by other companies.

    Bill Davis, Perficient, 314-529-3555

    bill.davis@perficient.com

    Source: Perficient, Inc.

    FAQ

    What were Perficient’s revenues for the first quarter of 2024?

    Perficient reported revenues of $215.3 million for the first quarter of 2024.

    How much did Perficient’s net income decrease by in the first quarter of 2024?

    Perficient’s net income decreased by 57% to $11.6 million in the first quarter of 2024.

    Who is Perficient being acquired by?

    Perficient has entered into a definitive agreement to be acquired by EQT for approximately $3 billion.

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