BUSINESS OVERVIE W NOVEMBER 2018

Transcription

1 BUSINESS OVERVIEW NOVEMBER 2018

2 Safe Harbor Statement Some of the statements contained in this presentation that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 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 forwardlooking 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 are disclosed under the heading Risk Factors in our annual report on Form 10-K for the year ended December 31, 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 and Section 21E of the Securities Exchange Act of The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forwardlooking statement for any reason, even if new information becomes available or other events occur in the future. 2

3 Perficient is the leading digital transformation consulting firm serving Global 2000 and enterprise customers throughout North America. With unparalleled information technology, management consulting, and creative capabilities, Perficient and its Perficient Digital agency deliver vision, execution, and value with outstanding digital experience, business optimization, and industry solutions. 3

4 Our Locations NORTH AMERICA Allentown, PA Ann Arbor, MI Atlanta, GA Boston, MA Bozeman, MT Charlotte, NC Chicago, IL Cincinnati, OH Columbus, OH Dallas, TX Denver, CO Detroit, MI Houston, TX Irvine, CA Phoenix, AZ Lafayette, LA Milwaukee, WI Minneapolis, MN New York, NY San Francisco, CA Seattle, WA St. Louis, MO Washington D.C. CANADA Toronto, ON ASIA Hangzhou, China INDIA Chennai, India Bangalore, India Nagpur, MS, India UNITED KINGDOM Oxford MEXICO Mexico City 4

5 Enterprise Partners Strategic Partners 5

6 Market Forces Digital Transformation Cloud Computing Healthcare Industry Evolution Financial Services Regulatory Environment 6

7 Strategic Growth Drivers Geographic Expansion Increased Offshore Strategic Account Development M&A Plans 7

8 Focus and Expertise INDUSTRY SOLUTIONS Perficient s Industry Solutions enable clients to grow market share, ensure regulatory compliance and stand out as an industry innovator through industry-centric business strategy, process and technology expertise. BUSINESS OPTIMIZATION Gain competitive advantage through enhanced process, performance, and data-driven solutions that reduce cost, drive efficiency and productivity, and grow revenue. DIGITAL EXPERIENCE Map and follow the customer journey, leverage data to predict behavior, and react and respond to deliver outstanding customer experiences across the channel. 8

9 Industry Solutions HEALTH SCIENCES FINANCIAL SERVICES AUTOMOTIVE RETAIL & CONSUMER GOODS ELECTRONICS & HARDWARE MANUFACTURING TELECOM 9

10 Health Sciences Practice Strategic consulting insights and pragmatic technology solutions that improve clinical, financial and operational efficiency. HEALTH PLANS PROVIDERS LIFE SCIENCES 30% OF Q3 18 REVENUE 10

11 Health Sciences Clients Source: Perficient client data and Forbes 2018 Global 2000 rankings 11

12 Financial Services Practice Deep Financial Services Domain Expertise BANKING ASSET & WEALTH MANAGEMENT CAPITAL MARKETS INSURANCE 14% OF Q3 18 REVENUE 12

13 Financial Services Practice Source: Perficient client data and Forbes 2018 Global 2000 rankings 13

14 Business Optimization CLOUD DEVOPS BUSINESS PROCESS MANAGEMENT CORPORATE PERFORMANCE MANAGEMENT ENTERPRISE DATA AND BUSINESS INTELLIGENCE ENTERPRISE RESOURCE PLANNING OPTIMIZED GLOBAL DELIVERY 14

15 Digital Experience BIG DATA AND ANALYTICS CLOUD COMMERCE CONTENT MANAGEMENT CUSTOMER RELATIONSHIP MANAGEMENT DIGITAL MARKETING DIGITAL STRATEGY EXPERIENCE DESIGN ENTERPRISE SOCIAL INTERNET OF THINGS (IOT) ENTERPRISE MOBILE PORTALS 15

16 Our Digital Agency END-TO-END IS JUST THE BEGINNING With the strategic imagination of an agency, unleashed by the deep technical know-how of a consultancy, our execution never fails our vision. We dream big, build beautiful, measure confidently, and optimize obsessively. Because great brands are no longer built with a bull horn they are made from every great customer moment. 16

17 Practices and Capabilities STRATEGY + PLANNING DIGITAL MARKETING + ANALYTICS EXPERIENCE DESIGN MOBILE + EMERGING TECH CONTENT STUDIO DIGITAL EXPERIENCE PLATFORMS 17

18 BROADER. DEEPER. BOLDER. BOUTIQUES Can be great at delivering creative point solutions but often unable to scale across the complexity of your business. DIGITAL AGENCIES Can be great at articulating digital experience but often unable to deliver on the vision once it cuts deeper into the enterprise. CONSULTANCIES Can be great at strategic vision but a large, institutional mindset often unable to craft nimble, differentiated solutions. 18

19 CONSULTING SERVICES UNIVERSE 19

20 Large Integrators More breadth than depth More expensive Prescriptive, not collaborative Struggle with creative 20

21 Boutiques No breadth No scale to handle larger projects Limited integration capabilities Limited industry expertise Point solutions, not strategic vision 21

22 Agencies Sizzle without substance Struggle with technology implementation and integration Myopic - no strategic vision 22

23 Perficient The Premier Provider Breadth and Depth Integrated Creative and Technology Skills Collaborative Approach (First a partner, then an advisor) Vision, Execution and Value 23

24 INDUSTRY DATA Revenue by Industry (Top 10) Q Q Q Healthcare/Pharma/Life Sciences 30% 27% 28% Financial Services/Banking/Insurance 14% 14% 16% Retai l a nd Cons umer Goods 12% 11% 9% Ma nufa cturi ng 10% 10% 9% Automotive a nd Tra ns port Products 9% 9% 9% El ectroni cs a nd Computer Ha rdwa re 6% 8% 8% Tel ecommuni ca tions 5% 6% 6% Business Services 5% 5% 4% Energy and Utilities 4% 4% 2% Leisure, Media and Entertainment 3% 3% 2% 24

25 SOLUTION DATA Revenue by Solution (Top 10) Q3 2018* Q2 2018* Q Cus tom Appl i ca tions 15% 15% 15% Ma na gement Cons ul ting 14% 16% 12% Ana l ytics 14% 12% 17% Commerce 11% 10% 11% Content Ma na gement 9% 8% 8% Business Integration 7% 8% 7% Portals/Collaboration 6% 6% 4% Customer Relationship Management 5% 5% 5% Business Process Management 3% 3% 4% Pl a tform 3% 3% 5% *Q3 and Q impacted by modified allocation and classification methodology for improved accuracy. 25

26 PLATFORM DATA Revenue by Platform Q Q Q IBM 25% 25% 29% Mi cros oft 14% 15% 19% Adobe 8% 8% 6% Ora cl e 7% 8% 11% Sa l es force 3% 2% 4% Other Technol ogi es 39% 37% 23% Ma na gement Cons ul ting* 4% 5% 8% *Platform independent 26

27 ABR Offshore Hours ABR progress & potential $250 $200 $ , , ,000 $150 $100 $50 $135 $145 $146 $144 $146 $147 $39 $41 $43 $36 $36 $37 $25 600, , , , , ,000 Messaging up market, building brand awareness and growing mindshare = continued opportunity to close a still significant domestic rate gap going forward. $0 0 Onshore Offshore Offshore - Volume 27

28 2018 YTD Top 50 Clients 28

29 Our Competitive Success BEAT THE BOUTIQUES EASILY AND WE CONTINUE TO ROUTINELY BEAT THE BIG FIRMS 2018 ytd win% rates vs Accenture & Accenture Interactive SapientRazorfish Infosys Tata Wipro Cognizant IBM GBS Deloitte & Deloitte Digital Weighted Average 29

30 Revenue Total Revenue* Growth 600,000, ,000, ,000, ,000, ,000, ,000, Proj. *Pro-forma revenue based on recent accounting changes governing HW/SW revenue recognition 30

31 Profitability Profitability Growth 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, Proj.* * 2018 projections represent the midpoint of guidance EBITDAS Net Income 31

32 GAAP and AEPS Performance Proj.* GAAP EPS (diluted) Adjusted EPS * 2018 projections represent the midpoint of guidance 32

33 Share Repurchase 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Proj. SHARE COUNT DATA 36,000 35,000 34,000 33,000 As of Sep. 30, 2018: $48.2m remains under $235m repurchase program. (Expires 12/31/2019) 32,000 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18* * Projected Weighted Average Fully Diluted Outstanding Shares (#) 33

34 Free Cash Flow Schedule 14.0% Free Cash Flow as % of Total Revenue Average 10.3% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Proj. Free cash flow is equal to net cash provided by operating activities less purchases of property and equipment 34

35 Client Relationships Growing >90% Customer Satisfaction >90% of respondents 1 indicated they would use Perficient again and recommend PRFT to other colleagues in their organization or industry Top 50 Accounts Revenue Average ($ in M) $5.0 $5.5 ~90% Repeat Business ~90% of revenues in 2017 were generated from accounts that were clients in either of the previous two years 2 $2.4 $2.9 $3.2 $3.5 $3.7 $4.1 $4.4 Client Tenure $1m+ Clients 98 months Top 50 clients 77 months Proj. (1) Represents respondents to an online survey available on Company website (2) Represents repeat business in 2017 from clients having revenue in 2015 and/or

36 M&A GROWTH STRATEGY RECENT ACQUISITIONS Elixitir ($6m annual revenues) Stone Temple ($9m annual revenues) Southport ($17M annual revenues) DISCIPLINED APPROACH $10-$40+ million shops 5-7X EBITDA Blend of cash / restricted stock Use scale and focus on costs to increase EBITDA margins Leverage client base, office network and vendor relationships to cross-sell, increase rates and decrease sales costs PROVEN TRACK RECORD Well-defined integration methodology Retained key operating management Complete integration: one brand, common systems, standardized comp plans & methodology. 36

37 Recent Acquistions DATE OCTOBER 2018 JULY 2018 APRIL 2018 REVENUE $6 Million $9 Million $17Million PRIMARY PARTNER Marketo Perficient Digital MicroStrategy FOCUS Marketing Automation Digital Marketing/SEO Business Intelligence GEOGRAPHIES Pacific Northwest Boston Washington D.C., Phoenix, Mexico City 37

38 Q4 AND FULL YEAR 2018 OUTLOOK Q4 $125m - $131m Q4 Revenue Guidance $ $0.42 Q4 Adjusted EPS Guidance $ $0.18 Q4 GAAP EPS Guidance 2018 $492m - $498m 2018 Full-Year Revenue Guidance $ $1.55 Full-Year Adjusted EPS Guidance $ $0.69 Full-Year GAAP EPS Guidance 38

39 NASDAQ: PRFT Member of Russell 2000 and S&P 600 Small-Cap Indices Common shares outstanding*: 34.8m Market capitalization*: ~$870M Recent price*: $ week range*: $ $31.09 Top Holders: BLACKROCK, DIMENSIONAL, VANGUARD Average daily volume*: ~251,000 (trailing 3 mo.) Institutional Ownership: 86% *As of October 31st,

40 Summary Growing margins and consistent, dependable, profitable growth over time Tenured management team; proven track record of success in all market environments Mission to be one of the world s leading consulting firms Goals of 40% net services GM (excluding stock comp) and 20% EBITDAS margin Strong cash flow, balance sheet and access to capital Thank You! 40