Safe Harbor Statement

Transcription

1 March 2012

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 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 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 forward-looking statement for any reason, even if new information becomes available or other events occur in the future. 2

3 PRFT Profile Leading e-business IT consultancy in US ~80% repeat business rate Locations throughout U.S. + offshore delivery Help clients use technology to make their businesses more competitive Own the sweet spot between mega firms and boutiques $340,000 $320,000 $300,000 $280,000 $260,000 $240,000 $220,000 $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 Revenue in Millions Addressing an $80 billion market* Strong revenue, EBITDA and profitability since startup Proven M&A success Nasdaq Global Select, Russell 2000 & S&P SmallCap Revenue Guidance Range is $300m - $320m *Source: Forrester Research: US Tech Industry Outlook for Dec 14,

4 Strong Growth Consistent performance for a decade Annual growth in 12 of 13 years 13.5% CAGR (organic) Current run-rate $~300m Targeting $500m run-rate by end of 2013 *Estimate based on midpoint of 2012 Guidance 4

5 Q Summary Revenues up 26% yoy, Adjusted EPS up 24% EBITDAS up 25% Net Income up 108% Q1 services guidance midpoint = 24% growth YoY 5

6 Current Climate Business healthy Winning larger deals Majority of clients increased spending w/ PRFT YoY Bookings pipeline remains strong 2012 Adjusted EPS projected growth of 21% Emerging technology / industry trends driving growth Healthcare Industry Transformation Financial Services Post-Consolidation Integration SaaS / Cloud Computing M&A plans Reviewing several firms now $10m-$30m opportunities Targeting additional $50m in acquired revenues in 2012 Not reflected in current revenue/earnings projections 6

7 Additional Strengths No debt, cash on hand and access to $50m credit facility Blue chip client base Flexible cost structure Strong operating leverage should drive considerable bottom-line improvement in years ahead All key operating metrics trending higher As of 12/31/11, have repurchased 7.4 million shares of stock for ~$54.0m (under $60m authorization) since program inception in March

8 Global Delivery Offshore Development Center in Hangzhou, China 220 consultants + 15 staff Opened new Delivery Center in 1H 2011 capacity for 400 colleagues Level 5 CMMI certification (highest achievable level) from SEI (Software Engineering Institute) More than doubled in size since in <3 years and expect continued accelerated growth Offshore Development Center in Macedonia ~50 consultants Deep pool of Computer Science Graduates Established relationship with local Technical Universities Offshore Development Center/Recruiting Facility in Chennai, India ~20 consultants, significant 2012/2013 expansion planned Geopolitical hedge 8

9 Select Clients 27% 24% 14% 10% 7% 3% 7% 8% 7% 12% 9% 9% 4% 7% 3% 2% 2% 3% 2011 % of revenues Q4 Bookings % 9

10 2011 Client Relationships 53 clients with >$1m in revenues (vs. 40 in 2010) 9 clients with >$5m in revenues (vs. 7 in 2010) Top 5 Clients 2011 Gross Svcs Revenue % of Total Svcs Revenue Healthcare $ 9,171, % Healthcare $ 8,224, % Telecom $ 8,049, % Financial Services $ 7,115, % Automotive $ 6,705, % % Top 5 clients grew 6.9%, compared to 2010 Top 50 accounts = 60% revenue (Average $2.9m each) Anticipate Perficient s first $10m+ clients in

11 Our Solutions Business Solutions Business Intelligence Business Process Management CRM Enterprise Performance Management Experience Design Management Consulting Industry-Specific Solutions Healthcare Financial Services Consumer Goods Communications Government Technology Solutions Business Integration/SOA Cloud Services Commerce Content Management Custom App Dev Education Information Management Mobile Platform Integration Portals and Collaboration Identified Opportunities ERP Security NOT a Focus Hardware BPO Operations Outsourcing

12 Healthcare Industry IT Services Landscape IT consulting services typically cover a wide range of solution offerings across the Healthcare industry. Strategic consulting and information management consulting services are viewed as leading services that generate a high-degree of follow-up work associated with Solution Implementation services. IT Risk and Assurance services are highly focused and require specialty skills. 12

13 FS Industry IT Services summary IT consulting services typically cover a wide range of solution offerings across the Financial Services industry. Strategic consulting and information management services are viewed as leading services that generate a high-degree of follow-up work associated with Solution Implementation services. IT Risk and Assurance services are highly focused and require specialty skills. 13

14 Differentiation Why Perficient? Beat boutiques with scale, breadth and referenceability Beat larger competitors with depth, faster time to value, collaborative approach, local delivery model Win rate vs. largest competitors >70% when reach proposal stage Partnerships and industry endorsements 14

15 Top Partners Our partner network enhances our core competencies and extends our offerings Clients benefit from: Highly skilled product specialists at lower cost Faster time-to-market and cost savings for projects Industry-leading skills transfer and mentoring Superior project, platform and product support Unrivaled experience that results from strong relationships (IBM, MSFT, Oracle) Other Valued Partners Include 15

16 Financial Highlights 16

17 Bill Rates and Utilization All Professionals All Professionals excluding Subs & China Average Bill Rate $130 $125 $120 $115 $110 $105 $100 $95 $127 $123 $126 $125 $120 $120 $119 $115 $116 $113 $114 $112 $110 $102 $104 $102 $102 $99 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Quarter All Professionals All Professionals excluding Subs & China Utilization Rate 88% 86% 84% 82% 80% 78% 76% 86% 88% 85% 86% 84% 85% 83% 82% 81% 78% 79% 79% 79% 78% 76% 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 Quarter 17

18 Recent Acquisition: PointBridge Solutions $17m Microsoft consulting firm, acquired February 2012 SharePoint, business intelligence, unified communications Microsoft relationship/nsi status augments Perficient s existing deep partnership Expands Perficient s market presence in Chicago, Milwaukee and Boston Solid reputation, great management and consulting talent Proven track record and impressive operating metrics Strong client base

19 M&A Growth Strategy M&A Target Market Disciplined Approach Proven Track Record Recent Acquisitions 2012: PointBridge Solutions ($17m) 2011: Exervio ($13m), JCB Partners ($15m) 2010: Kerdock ($8m), speaktech ($16m revs) Diligence on several firms in progress Most owner operated / some private equity backed looking to exit 3-4 deals per year $10-$30+ million shops 5-7X EBITDA Up to 50% cash, 50% 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 project flow and decrease sales costs 22 deals over 12 years 17 deals since January 2004 Well-defined integration methodology Retained key operating management Post-deal double-digit internal growth Real integration: one brand, common systems, standardized comp plans & methodology. Not a rollup that s just about cash flow aggregation 19

20 Q1 and Full Year 2012 Outlook Q1 Revenue Guidance of $70.6m - $74.3m Full-Year Revenue Guidance: $300m - $320m Full-Year EPS Guidance of $.88 - $ actuals.77 Continued improvements to key operating metrics and profitability 20

21 Summary Best of breed margins and consistent, dependable, profitable growth over time Tenured management team; proven track record of success in all market environments Goal to build the premier IT consulting firm in the country Targeting $500 million run-rate revenues by end of 2013 Goals of 40% net services GM (excluding stock comp) and 20% EBITDAS margin Strong cash flow, balance sheet and access to capital 21