On August 8, 2024, Perficient Inc (PRFT, Financial) released its 8-K filing detailing its financial results for the quarter ended June 30, 2024. Perficient Inc provides a variety of information technology and consulting services that focus on digital experience, business optimization, and IT solutions. The company's services include big data analytics, technology platform implementations, enterprise content management, portals and collaboration, management consulting, custom applications, business integration, business process management, and customer relationship management. It serves the healthcare, financial services, retail, and electronics industries. The vast majority of the company's revenue comes from the United States.
Performance Overview
For the second quarter of 2024, Perficient Inc reported a 4% decrease in revenues to $222.8 million, down from $231.1 million in the same quarter of the previous year. Net income also saw a significant decline of 34%, falling to $17.4 million from $26.4 million in Q2 2023. GAAP earnings per share (EPS) on a fully diluted basis decreased by 33% to $0.49, compared to $0.73 in the prior year.
Financial Achievements and Challenges
Despite the decline in revenue and net income, Perficient Inc achieved several milestones. The company was named a Major Player in the "IDC MarketScape: Worldwide Cloud Professional Services" 2024 Vendor Assessment and launched Scarlett, an AI-powered virtual assistant, to its global workforce. Additionally, Perficient earned specializations in Adobe Customer Journey Analytics and Salesforce Data Cloud, highlighting its commitment to delivering exceptional solutions and services.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $222.8 million | $231.1 million |
| Net Income | $17.4 million | $26.4 million |
| GAAP EPS (Diluted) | $0.49 | $0.73 |
| Adjusted EPS (Diluted) | $0.92 | $1.00 |
| Adjusted EBITDA | $43.3 million | $48.2 million |
Income Statement Highlights
Perficient Inc's total revenues for Q2 2024 were $222.8 million, a decrease from $231.1 million in Q2 2023. The cost of revenues was $142.1 million, down from $146.2 million in the previous year. Selling, general, and administrative expenses were relatively stable at $43.8 million compared to $44.2 million in Q2 2023. The company reported a net income of $17.4 million, a significant drop from $26.4 million in the same quarter last year.
Balance Sheet and Cash Flow
As of June 30, 2024, Perficient Inc had total assets of $1.11 billion, up from $1.06 billion at the end of 2023. The company's cash and cash equivalents stood at $112.9 million, a decrease from $128.9 million at the end of the previous year. Total liabilities were $542.5 million, slightly up from $534.0 million at the end of 2023. Net cash provided by operating activities for the first six months of 2024 was $29.3 million, down from $65.1 million in the same period last year.
Commentary and Analysis
“We remain well positioned to continue to execute against our long-term strategy and goals,” said Tom Hogan, President and CEO. “We’re excited to move forward on our global growth journey.”
The decline in revenue and net income indicates that Perficient Inc is facing challenges in maintaining its growth trajectory. However, the company's strategic initiatives and recent achievements suggest a focus on long-term growth and innovation. The decrease in adjusted EBITDA and adjusted EPS highlights the need for the company to address operational efficiencies and cost management.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Perficient Inc for further details.
