PRFT
$121.45
Perficient
($1.61)
(1.31%)
Earnings Details
2nd Quarter June 2021
Thursday, July 29, 2021 8:00:00 AM
Tweet Share Watch
Summary

Perficient Beats

Perficient (PRFT) reported 2nd Quarter June 2021 earnings of $0.81 per share on revenue of $184.1 million. The consensus earnings estimate was $0.77 per share on revenue of $176.2 million. The Earnings Whisper number was $0.79 per share. Revenue grew 25.8% on a year-over-year basis.

The company said it expects third quarter non-GAAP earnings of $0.83 to $0.86 per share on revenue of $186.0 million to $191.0 million. The current consensus earnings estimate is $0.79 per share on revenue of $178.31 million for the quarter ending September 30, 2021. The company also said it now expects 2021 non-GAAP earnings of $3.20 to $3.30 per share on revenue of $723.0 million to $738.0 million. The company's previous guidance was earnings of $3.00 to $3.15 per share on revenue of $685.0 million to $710.0 million and the current consensus earnings estimate is $3.11 per share on revenue of $704.86 million for the year ending December 31, 2021.

Perficient Inc operates as an information technology consulting firm. The Company designs, develops, implements and integrates secure and scalable enterprise portals for its clients and their customers, suppliers and partners.

Results
Reported Earnings
$0.81
Earnings Whisper
$0.79
Consensus Estimate
$0.77
Reported Revenue
$184.1 Mil
Revenue Estimate
$176.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Perficient Reports Second Quarter 2021 Results

~ Revenues Up 26%; Company Raises Full Year Revenue and Earnings Guidance ~

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 June 30, 2021.

Financial Highlights

For the quarter ended June 30, 2021:

  • Revenues increased 26% to $184.1 million from $146.3 million in the second quarter of 2020;
  • Net income increased 151% to $16.6 million from $6.6 million in the second quarter of 2020, reflecting, among other things, higher gross margin, lower selling, general and administrative expenses as a percentage of revenue, lower acquisition costs, and lower adjustments to fair value of contingent consideration;
  • GAAP earnings per share results on a fully diluted basis increased 145% to $0.49 from $0.20 in the second 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 $0.84 from $0.57 in the second quarter of 2020; and
  • Adjusted EBITDA (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased 48% to $39.0 million from $26.4 million in the second quarter of 2020.

“Perficient's strong second quarter performance again underscores that the world's largest enterprises and biggest brands are gravitating toward our differentiated approach and embracing our flexible and compelling delivery model which blends global efficiency with high-touch, strategic leadership and project management,” said Jeffrey Davis, chairman and CEO. “We're taking share, adding new customers, expanding existing relationships and building our company faster than ever before.”

Other Highlights

Among other recent achievements, Perficient:

  • Grew offshore revenue organically 75% during the quarter – with total offshore revenue growth up 124%;
  • Was named the 2021 Americas recipient of Sitecore’s Partner Award for Excellence in Solution Delivery, as well as an Optimizely Premier Platinum partner - one of just three partners in North America with this distinction, and a global finalist for the Microsoft Healthcare Partner of the Year award;
  • Announced the graduation of 22 women from the inaugural Perficient Bright Paths Program, a majority of whom are working at Perficient in the software development and engineering field;
  • Was included in “The Gartner Digital Commerce Vendor Guide, 2021” as a digital commerce service provider offering multiple digital commerce implementation services, and in the “Gartner Report: Vendor Rating for Salesforce” as a key partner for manufacturing cloud; and
  • Received 2021 best workplace distinctions in St. Louis, Chicago, Atlanta, 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 third quarter 2021 revenue to be in the range of $186 million to $191 million. Third quarter GAAP earnings per share is expected to be in the range of $0.49 to $0.52. Third 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 $0.83 to $0.86.

Perficient is raising its full year 2021 revenue guidance range from $685 million to $710 million to $723 million to $738 million, raising its 2021 GAAP earnings per share guidance range from $1.72 to $1.87 to $1.93 to $2.05 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 $3.00 to $3.15 to $3.20 to $3.30.

Conference Call Details

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

WHAT: Perficient Reports Second Quarter 2021 Results
WHEN: July 29, 2021, at 11 a.m. Eastern
CONFERENCE CALL NUMBERS: 855-246-0403 (U.S. and Canada); 414-238-9806 (International)
PARTICIPANT PASSCODE: 3890138
REPLAY TIMES: July 29, 2021, at 2 p.m. Eastern, through Thursday, Aug. 5, 2021, at 2 p.m. Eastern
REPLAY NUMBER: 855-859-2056 (U.S. and Canada); 404-537-3406 (International)
REPLAY PASSCODE: 3890138

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 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 share and per share information)

 

 

 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2021

 

 

2020

 

 

2021

 

2020

 

Revenues

 

 

 

 

 

 

 

Services excluding reimbursable expenses

$

181,213

 

 

 

$

144,306

 

 

 

$

347,689

 

 

$

285,314

 

 

Reimbursable expenses

2,562

 

 

 

1,530

 

 

 

4,816

 

 

5,924

 

 

Total services

183,775

 

 

 

145,836

 

 

 

352,505

 

 

291,238

 

 

Software and hardware

361

 

 

 

503

 

 

 

972

 

 

663

 

 

Total revenues

184,136

 

 

 

146,339

 

 

 

353,477

 

 

291,901

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Cost of services

110,942

 

 

 

89,164

 

 

 

214,903

 

 

180,663

 

 

Stock compensation

2,238

 

 

 

1,991

 

 

 

4,339

 

 

3,709

 

 

Total cost of revenues

113,180

 

 

 

91,155

 

 

 

219,242

 

 

184,372

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

34,146

 

 

 

30,811

 

 

 

64,935

 

 

61,104

 

 

Stock compensation

3,278

 

 

 

3,065

 

 

 

6,468

 

 

5,993

 

 

Total selling, general and administrative

37,424

 

 

 

33,876

 

 

 

71,403

 

 

67,097

 

 

 

 

 

 

 

 

 

 

Depreciation

1,615

 

 

 

1,317

 

 

 

3,075

 

 

2,605

 

 

Amortization

6,333

 

 

 

4,398

 

 

 

13,385

 

 

8,320

 

 

Acquisition costs

 

 

 

1,787

 

 

 

68

 

 

3,600

 

 

Adjustment to fair value of contingent consideration

(510

)

 

 

2,067

 

 

 

4

 

 

1,732

 

 

Income from operations

26,094

 

 

 

11,739

 

 

 

46,300

 

 

24,175

 

 

 

 

 

 

 

 

 

 

Net interest expense

3,367

 

 

 

2,061

 

 

 

6,663

 

 

3,987

 

 

Net other expense

9

 

 

 

(15

)

 

 

131

 

 

(8

)

 

Income before income taxes

22,718

 

 

 

9,693

 

 

 

39,506

 

 

20,196

 

 

Provision for income taxes

6,145

 

 

 

3,084

 

 

 

9,340

 

 

4,613

 

 

 

 

 

 

 

 

 

 

Net income

$

16,573

 

 

 

$

6,609

 

 

 

$

30,166

 

 

$

15,583

 

 

 

 

 

 

 

 

 

 

Basic net income per share

$

0.52

 

 

 

$

0.21

 

 

 

$

0.95

 

 

$

0.49

 

 

Diluted net income per share

$

0.49

 

 

 

$

0.20

 

 

 

$

0.90

 

 

$

0.48

 

 

Shares used in computing basic net income per share

31,922

 

 

 

31,888

 

 

 

31,893

 

 

31,763

 

 

Shares used in computing diluted net income per share

33,867

 

 

 

32,377

 

 

 

33,500

 

 

32,444

 

 

Perficient, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share information)

 

 

 

 

 

 

 

June 30, 2021

(unaudited)

 

December 31, 2020

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

86,686

 

 

 

$

83,204

 

 

Accounts receivable, net

 

149,718

 

 

 

133,085

 

 

Prepaid expenses

 

6,354

 

 

 

5,575

 

 

Other current assets

 

5,795

 

 

 

4,646

 

 

Total current assets

 

248,553

 

 

 

226,510

 

 

Property and equipment, net

 

12,124

 

 

 

11,902

 

 

Operating lease right-of-use assets

 

35,056

 

 

 

38,539

 

 

Goodwill

 

420,508

 

 

 

427,928

 

 

Intangible assets, net

 

48,937

 

 

 

63,571

 

 

Other non-current assets

 

21,017

 

 

 

17,311

 

 

Total assets

 

$

786,195

 

 

 

$

785,761

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

26,167

 

 

 

$

25,613

 

 

Other current liabilities

 

87,683

 

 

 

103,267

 

 

Total current liabilities

 

113,850

 

 

 

128,880

 

 

Long-term debt, net

 

188,667

 

 

 

183,624

 

 

Operating lease liabilities

 

25,871

 

 

 

29,098

 

 

Other non-current liabilities

 

45,814

 

 

 

50,081

 

 

Total liabilities

 

374,202

 

 

 

391,683

 

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

51

 

 

 

50

 

 

Additional paid-in capital

 

470,218

 

 

 

459,866

 

 

Accumulated other comprehensive (loss) income

 

(1,813

)

 

 

3,746

 

 

Treasury stock

 

(306,270

)

 

 

(289,225

)

 

Retained earnings

 

249,807

 

 

 

219,641

 

 

Total stockholders' equity

 

411,993

 

 

 

394,078

 

 

Total liabilities and stockholders' equity

 

$

786,195

 

 

 

$

785,761

 

 

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 interest, income taxes, depreciation, amortization, stock compensation, acquisition costs and adjustment to fair value of contingent consideration), 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 discounts and 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 Discount and Debt Issuance Costs

On August 14, 2020, Perficient issued $230.0 million aggregate principal amount of 1.250% Convertible Senior Notes due 2025, and on September 11, 2018, Perficient issued $143.8 million aggregate principal amount of 2.375% Convertible Senior Notes due 2023 (the “2025 Notes” and the “2023 Notes,” respectively, and together, the “Notes”) in private placements to qualified institutional purchasers. In accordance with accounting for debt with conversions and other options, Perficient bifurcated the principal amount of the Notes into liability and equity components. The resulting debt discounts are being amortized to interest expense over the period from the issuance dates through the respective contractual maturity dates. Issuance costs related to the Notes were allocated pro rata based on the relative fair values of the liability and equity components. Issuance costs attributable to the liability component of 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 the company’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 expands into countries outside of the United States, and in particular as a result of our 2020 acquisition of Productora de Software S.A.S., based in Colombia, 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. We exclude the shares that are issuable upon conversions of the Notes because we expect that the dilution from such shares will be offset by the convertible note hedge transactions entered into in August 2020 and September 2018 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

June 30,

 

Six Months Ended

June 30,

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP Net Income

$

16,573

 

 

 

$

6,609

 

 

 

$

30,166

 

 

 

$

15,583

 

 

Adjustments:

 

 

 

 

 

 

 

Provision for income taxes

6,145

 

 

 

3,084

 

 

 

9,340

 

 

 

4,613

 

 

Amortization

6,333

 

 

 

4,398

 

 

 

13,385

 

 

 

8,320

 

 

Acquisition costs

 

 

 

1,787

 

 

 

68

 

 

 

3,600

 

 

Adjustment to fair value of contingent consideration

(510

)

 

 

2,067

 

 

 

4

 

 

 

1,732

 

 

Amortization of debt discount and issuance costs

2,562

 

 

 

1,215

 

 

 

5,090

 

 

 

2,416

 

 

Foreign exchange loss (gain)

8

 

 

 

(12

)

 

 

136

 

 

 

2

 

 

Stock compensation

5,516

 

 

 

5,056

 

 

 

10,807

 

 

 

9,702

 

 

Adjusted Net Income Before Tax

36,627

 

 

 

24,204

 

 

 

68,996

 

 

 

45,968

 

 

Adjusted income tax (1)

9,230

 

 

 

5,906

 

 

 

17,318

 

 

 

11,216

 

 

Adjusted Net Income

$

27,397

 

 

 

$

18,298

 

 

 

$

51,678

 

 

 

$

34,752

 

 

 

 

 

 

 

 

 

 

GAAP Earnings Per Share (diluted)

$

0.49

 

 

 

$

0.20

 

 

 

$

0.90

 

 

 

$

0.48

 

 

Adjusted Earnings Per Share (diluted)

$

0.84

 

 

 

$

0.57

 

 

 

$

1.58

 

 

 

$

1.07

 

 

 

 

 

 

 

 

 

 

Shares used in computing GAAP Earnings Per Share (diluted)

33,867

 

 

 

32,377

 

 

 

33,500

 

 

 

32,444

 

 

Dilution offset from convertible note hedge transactions

(1,251

)

 

 

 

 

 

(894

)

 

 

(77

)

 

Shares used in computing Adjusted Earnings Per Share (diluted)

32,616

 

 

 

32,377

 

 

 

32,606

 

 

 

32,367

 

 

(1) The estimated adjusted effective tax rate of 25.2% and 24.4% for the three months ended June 30, 2021 and 2020, respectively, and 25.1% and 24.4% for the six months ended June 30, 2021 and 2020, respectively, 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

June 30,

 

Six Months Ended

June 30,

 

2021

 

 

2020

 

 

2021

 

2020

 

GAAP Net Income

$

16,573

 

 

 

$

6,609

 

 

 

$

30,166

 

 

$

15,583

 

 

Adjustments:

 

 

 

 

 

 

 

Provision for income taxes

6,145

 

 

 

3,084

 

 

 

9,340

 

 

4,613

 

 

Net interest expense

3,367

 

 

 

2,061

 

 

 

6,663

 

 

3,987

 

 

Net other expense (income)

9

 

 

 

(15

)

 

 

131

 

 

(8

)

 

Depreciation

1,615

 

 

 

1,317

 

 

 

3,075

 

 

2,605

 

 

Amortization

6,333

 

 

 

4,398

 

 

 

13,385

 

 

8,320

 

 

Acquisition costs

 

 

 

1,787

 

 

 

68

 

 

3,600

 

 

Adjustment to fair value of contingent consideration

(510

)

 

 

2,067

 

 

 

4

 

 

1,732

 

 

Stock compensation

5,516

 

 

 

5,056

 

 

 

10,807

 

 

9,702

 

 

Adjusted EBITDA (1)

$

39,048

 

 

 

$

26,364

 

 

 

$

73,639

 

 

$

50,134

 

 

(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.

Perficient, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(unaudited)

 

Q3 2021

 

Full Year 2021

 

Low end of

adjusted goal

 

High end of

adjusted goal

 

Low end of

adjusted goal

 

High end of

adjusted goal

GAAP EPS

$

0.49

 

 

 

$

0.52

 

 

 

$

1.93

 

 

 

$

2.05

 

 

Non-GAAP adjustment (1):

 

 

 

 

 

 

 

Non-GAAP reconciling items

0.42

 

 

 

0.42

 

 

 

1.77

 

 

 

1.76

 

 

Tax effect of reconciling items

(0.08

)

 

 

(0.08

)

 

 

(0.50

)

 

 

(0.51

)

 

Adjusted EPS

$

0.83

 

 

 

$

0.86

 

 

 

$

3.20

 

 

 

$

3.30

 

 

(1) Non-GAAP adjustment represents the impact of amortization expense, stock compensation, amortization of debt discount and issuance costs, foreign exchange gains and losses, acquisition costs, and adjustments to fair value of contingent consideration, net of the tax effect of these adjustments, divided by adjusted fully diluted shares. Perficient currently expects its Q3 2021 and full year 2021 GAAP effective income tax rate to be approximately 28% and 22%, respectively. The Company's estimates of GAAP and adjusted fully diluted shares for 2021 are included in the following table. These estimates could be affected by share repurchases, shares issued in conjunction with future acquisitions and the potential impact from the conditional conversion features of our debt.

 

Q3 2021

 

Full Year 2021

(in millions)

Low end of

adjusted goal

 

High end of

adjusted goal

 

Low end of

adjusted goal

 

High end of

adjusted goal

GAAP Fully Diluted Shares

35.0

 

 

 

34.3

 

 

 

34.3

 

 

 

34.0

 

 

Non-GAAP adjustment (2):

 

 

 

 

 

 

 

Dilution offset from convertible note hedge transactions

(2.0

)

 

 

(1.7

)

 

 

(1.6

)

 

 

(1.4

)

 

Adjusted Fully Diluted Shares

33.0

 

 

 

32.6

 

 

 

32.7

 

 

 

32.6

 

 

(2) Non-GAAP adjustment represents the exclusion of shares that are issuable upon conversion of our convertible notes due to the expectation that such shares will be offset by the convertible note hedge transactions entered into in August 2020 and September 2018.

Bill Davis, Perficient, 314-529-3555
bill.davis@perficient.com

Source: Perficient, Inc.