EXHIBIT 99.1

 

For more information, please contact:

Bill Davis, Perficient, 314-529-3555

bill.davis@perficient.com

 

PERFICIENT REPORTS FIRST QUARTER 2015 RESULTS

~ Revenue up 14%, Gross margin up 15%, EBITDAS up 11%; Company reaffirms 2015 earnings guidance ~

ST. LOUIS (May 7, 2015) – Perficient, Inc. (NASDAQ: PRFT) ("Perficient"), a leading information technology and management consulting firm serving Global 2000® and other large enterprise customers throughout North America, today reported its financial results for the quarter ended March 31, 2015.

Financial Highlights

For the quarter ended March 31, 2015:

·	Revenue increased 14% to $110.6 million from $97.2 million for the first quarter of 2014;

·	Services revenue increased 11% to $98.6 million from $88.5 million for the first quarter of 2014;

·	Gross Margin increased 15% to $36.1 million from $31.5 million for the first quarter of 2014;

·	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 to $0.26 from $0.25 for the first quarter of 2014;

·	Earnings per share results on a fully diluted basis increased to $0.12 from $0.09 for the first quarter of 2014;

·	EBITDAS (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased to $15.5 million from $14.0 million for the first quarter of 2014;

·	Net income increased to $4.1 million from $3.0 million for the first quarter of 2014; and

·	Perficient repurchased 187,000 shares of its common stock at a total cost of $3.7 million.

"Perficient's digital experience, business optimization and industry solutions are resonating well in the market as evidenced by a growing pipeline of opportunities and strong bookings trends in recent months," said Jeff Davis, chief executive officer and president. "We're well-positioned for another year of solid top- and bottom-line growth."

"Higher than anticipated benefit costs negatively impacted margins during the quarter," said Paul Martin, chief financial officer. "We anticipate margin improvement in the current quarter and second half of the year."

Other Highlights

Among other recent achievements, Perficient:

·	Completed the acquisition of Zeon Solutions, Inc. and its subsidiary, Grand River Interactive LLC, which enhances and expands Perficient's e-commerce, content management, product information management, mobile and digital marketing services and solution expertise;

·	Earned the Platinum Implementation Partner designation from Sitecore due to our advanced implementation capability and our demonstrated leadership in customer experience management with Sitecore clients;

·	Received the prestigious IBM Beacon Award for Outstanding Information Management Solution, awarded to elite IBM Business Partners who deliver exceptional solutions that drive business value and transform the way clients and industries do business;

·	Received two accolades from Magento – the Spirit of Excellence Award for North America, recognizing exemplary service to Magento clients, and the Best B2B User Experience Award, for best-in-class innovation and brilliance in creating e-commerce solutions; and

 

·

Added new customer relationships and follow-on projects with leading companies such as Blue Cross Blue Shield of Massachusetts, Bon-Ton, Carhatt, Cigna, Citizens Financial Group, Cole-Parmer, C&S Wholesale Grocers, Depository Trust and Clearing Corp., Fidelis, Health Data Compass, Laclede Gas, MoneyGram International, NRG Energy, Presbyterian Health Care Services, Scottrade, Sears Canada, Transpace, U.S. Concrete, the University of Houston, and Zoetis.

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Business Outlook

Perficient expects its second quarter 2015 services and software revenue, including reimbursed expenses, to be in the range of $110.5 million to $120.9 million, comprised of $104.5 million to $109.9 million of revenue from services including reimbursed expenses and $6.0 million to $11.0 million of revenue from sales of software. The midpoint of second quarter 2015 services revenue guidance represents growth of 21 percent over second quarter 2014 services revenue.

The company is narrowing its full year 2015 revenue guidance range of $470 million to $495 million and reaffirming its 2015 adjusted earnings per share guidance range of $1.38 to $1.49. 

Conference Call Details

Perficient will host a conference call regarding first quarter 2015 financial results today at 10 a.m. Eastern.

WHAT: Perficient Reports First Quarter 2015 Results

WHEN: Thursday, May 7, 2015, at 10 a.m. Eastern

CONFERENCE CALL NUMBERS: 877-415-3178 (U.S. and Canada); 857-244-7321 (International)

PARTICIPANT PASSCODE: 93252544

REPLAY TIMES: Thursday, May 7, 2015, at 2 p.m. Eastern, through Thursday, May 14, 2015

REPLAY NUMBER: 888-286-8010 (U.S. and Canada) 617-801-6888 (International)

REPLAY PASSCODE: 54878916

a)	client demand for our services and solutions;

b)	maintaining a balance of our supply of skills and resources with client demand;

c)	effectively competing in a highly competitive market;

d)	protecting our clients' and our data and information;

e)	risks from international operations including fluctuations in exchange rates;

f)	obtaining favorable pricing to reflect services provided;

g)	adapting to changes in technologies and offerings;

h)	risk of loss of one or more significant software vendors; and

i)	the recent implementation of our new Employee Resource Planning system;

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.

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PERFICIENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
		Three Months Ended March 31,
		2015				2014
Revenues
Services		$	98,629			$	88,489
Software and hardware			8,502				5,003
Reimbursable expenses			3,467				3,678
Total revenues			110,598				97,170
Cost of revenues
Project personnel costs			62,248				55,663
Software and hardware costs			6,728				4,502
Reimbursable expenses			3,467				3,678
Other project related expenses			896				786
Stock compensation			1,199				1,082
Total cost of revenues			74,538				65,711
Gross margin			36,060				31,459
Selling, general and administrative			21,735				18,568
Stock compensation			2,308				2,115
			12,017				10,776
Depreciation			1,081				912
Amortization			3,801				2,736
Acquisition costs			-				1,493
Adjustment to fair value of contingent consideration			85				214
Income from operations			7,050				5,421
Net interest expense			(553	)			(167	)
Net other (expense) income			(280	)			20
Income before income taxes			6,217				5,274
Provision for income taxes			2,151				2,229
Net income		$	4,066			$	3,045
Basic earnings per share		$	0.12			$	0.10
Diluted earnings per share		$	0.12			$	0.09
Shares used in computing basic earnings per share			33,046				30,729
Shares used in computing diluted earnings per share			34,164				32,628

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PERFICIENT, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
		March 31,				December 31,
		2015				2014
ASSETS
Current assets:
Cash and cash equivalents		$	6,353			$	10,935
Accounts receivable, net			99,427				113,928
Prepaid expenses			3,910				2,476
Other current assets			5,105				4,679
Total current assets			114,795				132,018
Property and equipment, net			8,336				7,966
Goodwill			252,819				236,130
Intangible assets, net			55,333				46,105
Other non-current assets			4,251				3,823
Total assets		$	435,534			$	426,042
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	10,901			$	22,035
Other current liabilities			26,476				33,028
Total current liabilities			37,377				55,063
Long-term debt			67,500				54,000
Other non-current liabilities			10,375				12,251
Total liabilities			115,252				121,314
Stockholders' equity:
Common stock			44				43
Additional paid-in capital			349,980				334,645
Accumulated other comprehensive loss			(822	)			(651	)
Treasury stock			(99,030	)			(95,353	)
Retained earnings			70,110				66,044
Total stockholders' equity			320,282				304,728
Total liabilities and stockholders' equity		$	435,534			$	426,042

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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 EBITDAS (earnings before interest, income taxes, depreciation, amortization, and stock compensation), 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 employee stock options and restricted stock awards, the amortization of intangible assets, acquisition costs, adjustments to the fair value of contingent consideration, 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 EBITDAS 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 EBITDAS, 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 of Intangible Assets

Perficient has incurred expense on amortization of intangible assets primarily related to various acquisitions. Management excludes these items for the purposes of calculating EBITDAS, 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 acquisitions which are expensed in its GAAP financial statements. Management excludes these items for the purposes of calculating EBITDAS, 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.

Adjustments 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 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.

Stock-Based Compensation

Perficient incurs stock-based compensation expense under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation. Perficient excludes this item for the purposes of calculating EBITDAS, adjusted net income, and adjusted earnings per share because it 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.

 

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PERFICIENT, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(unaudited)
(in thousands, except per share data)
		Three Months Ended March 31,
		2015				2014
GAAP Net Income		$	4,066			$	3,045
Additions:
Provision for income taxes			2,151				2,229
Amortization			3,801				2,736
Acquisition costs			-				1,493
Adjustment to fair value of contingent consideration			85				214
Stock compensation			3,507				3,197
Adjusted Net Income Before Tax			13,610				12,914
Adjusted income tax (1)			4,832				4,869
Adjusted Net Income		$	8,778			$	8,045
GAAP Earnings Per Share (diluted)		$	0.12			$	0.09
Adjusted Earnings Per Share (diluted)		$	0.26			$	0.25
Shares used in computing GAAP and Adjusted Earnings Per Share (diluted)			34,164				32,628

(1) The estimated adjusted effective tax rate of 35.5% and 37.7% for the three months ended March 31, 2015 and 2014, respectively, has been used to calculate the provision for income taxes for non-GAAP purposes.

 

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PERFICIENT, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(unaudited)
(in thousands)
	Three Months Ended March 31,
	2015				2014
GAAP Net Income		$	4,066			$	3,045
Additions:
Provision for income taxes			2,151				2,229
Net interest expense			553				167
Net other expense (income)			280				(20	)
Depreciation			1,081				912
Amortization			3,801				2,736
Acquisition costs			-				1,493
Adjustment to fair value of contingent consideration			85				214
Stock compensation			3,507				3,197
EBITDAS (1)		$	15,524			$	13,973

(1) EBITDAS 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.  EBITDAS measures presented may not be comparable to similarly titled measures presented by other companies.