PRFT - Earnings call transcript Q3 2018

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Operator

Good morning and afternoon, ladies and gentlemen. And welcome to the Q3 2018 Perficient Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. to CEO, conference Jeff like host, to now and Chairman Davis. would turn over the your I

Jeff Davis

Good morning. call This your Paul time is our Jeff. Thank morning. Martin, me you With on the CFO. as is this usual all for

XX the will which comments, Safe open call Harbor minutes, will would Paul, of for prepared statement? As typical, questions. XX you minutes we the have after we please read

Paul Martin

Good morning, Jeff. Thanks, everyone.

today’s discuss within certain Some be will in times meaning things of that at will comparable most measures today’s adjusted performance laws. Accounting posted EPS, statements directly our contained we cause those different future At with discussed in Generally is securities call, will materially be including in website Principles release, concerning the and these non-GAAP prepared financial forward-looking of may factors press forward-looking Accepted refer or could to in measures contemplated than a refer GAAP, additional differ the discussion. we to you those www.perficient.com. call of to information company SEC reconciliation at financial our results to our statements, concerning the Actual in this accordance encourage the during the we from results to earnings filings

prepared We Jeff? of in Relations. measures which most accordance have our certain GAAP under deck, comparable also Investor reconciliation directly with posted includes non-GAAP financial a a slide the goals to website on

Jeff Davis

morning good again Once you joining. Paul. thank Thanks, for and

the last its going X% you on year. to expectations we really are discuss lot We quarter and was Services now and of of fourth year our third ago, for in may and were positive quite are quarters results our with year the revenue a update strong. to remainder market, There’s very excited some for Perficient, you versus that. recall, the going third and up of share a all right our

our end able deliver, the drove gross Services we now grew $X.XX, XX%. beyond. revenue during Q all end by all by transpired for at of strong was were acquisition, recognized guidance. also discipline awards tough market bodes and Most margin into That up is through with several utilization for QX QX high So exciting the adjusted to quarter, year our over and where comparison. improved development and a the is of well services and which we about of were EPS our beyond QX continuing that’s QX top business increased very and saw and of that growth fiscal is that profile -- profitability the partners

During Consulting, the the to award marketing helps of Stone Elixiter, And a the on that digital search Temple winning quarter, enhance consultancy, continue a of also sure to I we am automation the earlier saw, highly as marketing us and you our we acquisition week, this digital services. focused with capabilities engine firm optimization regarded and capabilities. announced content added acquisition

deals, with portfolio, Adobe acquisition Marketo. business announced our expertise Magento around they We and these now with In must partners creates they improving our Marketo digital We for our and groups Elixiter Perficient the how When were excited Red the like deliver and to same as to of we customer bring partner its have awards experience, to clients, we two continue things will for organizations in learn Hat, to to Pivotal Adobe partners momentum quarters pursuit Marketo. to are Marketo expect are digital CMOs their of did Adobe, of marketing and and as an into experience solutions to talked and acquire intention strong excited Interestingly driving Hat when as to we able recognized it of and transformation Adobe, Magento, ours. key similar and very because of who IBM Hat. weeks, join the both a And we Red and customers. with though success week forces, growing the in we a of Sitecore we acquired enough, great meaningful its the the midst since role recent deep we about we like play the our several going end-to-end platform the important Red Adobe Elixiter, IBM forward were do key tasked provides. and firm bring specifically partnership deliver to had of early another opportunity us this stat, looks

In continued opinion and relationships support gaining analysts, with addition influencing the to industry awards visibility. received, Perficient

one This in providers the named most XX process Perficient Research that quarter, Forrester covering report digital automation. a of matter

quarter Specifically, were one clients within prominent great referred digits, a with the double out ability maintain our the and during up report, trusted bookings us Forrester to relationships long-term partner. Normalized called to get as in recall, I certainly, performances, the the a strongest the and us the last should strongest to off year start. can great That years. XXXX of solidly couple of close and help as

coupled off large of with a convertible the to debt generating grow on offering to access our a we all quarter, execute that, $XXX credit during plans the us we million, cash than existing and company was the strong with leaves used $XX buyback, credit more where then come. and for very sum leaving we execute quarter million full each That, well-positioned our So to strategic which facility. $XXX sheet and facility flow to balance raised cash years completed us million on are original pay

going back and note the fourth on cover additional few Paul? before results turn a over I financial the and So, items the with I full to call for outlook for of Paul touch updated the to to year. guidance that, our am quarter

Paul Martin

the a the on EBITDAS in prior year excluding net from third percentage million quarter of of to versus period. as basis in September gross XX, quarter the gross $XX.X basis. third points $XX.X and XXXX, increased compared -- to excluding recognition stock excluding reimbursable XX.X%. XX.X% XX.X% expense SG&A revenues revenues were from XX% increased $XX.X the expenses X% revenues, period. of million for quarter of third in primarily revenue of a compensation the third stock the Thanks, or for change comparable months the in was XX.X% hardware $XX.X quarter to year XXXX of compensation third XXXX, compensation million margin a million the ended expense revenues million XX and due to XXXX increase Services software for stock prior to increased of Jeff. $XXX.X compared three or comparable quarter, SG&A Services XXXX. in third to of

included quarter $X year $X.X to prior Third million, period. of amortization compared the million in

as fair quarter During our compared to original value of contingent of primarily recorded related million million in to expense convertible increased to through non-cash million, primarily of $X.X expense a the acquisition September. includes issuance $X.X that costs amortization from third adjusted result Interest interest debt consideration favorable related Southport as of cash a assets. liability, $X.X XXXX, result and issued performance the of we discounts of and

third income September during third the of third the due to $X.XX $X.X the decreased for rate was the share the of XX% earnings for effective quarter rate U.S. XX.X%, the the quarter per of lowering compared XX.X% from per Diluted Adjusted tax to effective primarily for quarter quarter to quarter XX% of the XXXX decreased earnings quarter the XXXX months of in million to the The for third for XX, from XXXX. $X.XX in of from quarter lower of to to the tax ended increased $X.XX million of quarter XXXX. three third third third XX%. XXXX. $X XXXX GAAP XXXX from XXXX. was in share Net of third rate XXXX $X.XX Our

per on million, primarily $XX.X months in non-cash software XX.X%, for see increased million and nine net defined the of the included revenues or of year can period. a transaction period. ended stock amortization expenses to EBITDAS compensation, comparable to XXXX was XXXX September for share will value results. nine adjusted of percentage gross year months in SG&A million revenues the reconciliation contingent to press of or September months prior gross compensation of of nine And debt GAAP of stock the excluding million compensation consideration of impact The XX, fair change months to XXXX issuance transactions $XX.X million recognition increased excluding versus ended XX.X% September for compared Services prior to decreased XX, a XX.X% nine outstanding to increase in the XX% September -- the of GAAP of earnings. a of full September XX.X% as hardware taxes revenues, expenses $XX.X plus amortization year expense, ended revenues the discount, the cost, net compared turn to a infrequent XX, months prior cost, You from period. is adjustment shares the million XXXX. XX, reimbursable revenues an nine period. nine basis. release the unusual comparable the to in stock approximately months XX% the reminder, of SG&A XX, the ended EPS ended $XX.X diluted I for period. or expenses amortization from for $XX as $XXX in September year XXXX, XXXX prior fully were from $XX average the excluding as the margin XX% ended now over by and Services comparable stock and for comparable million divided nine-month XX, compensation earnings due

to to fair as to value and XX, nine Southport compared million contingent the Clarity XXXX result original favorable of a of primarily ended expense September liabilities, a months acquisitions of adjust assets. our performance we During $X.X our recorded related consideration

XXXX, tax rate the nine XX, $X.XX nine the increased Adjusted ended the for from from $X.XX XX, nine increased for compared for XXXX per $XX.X was period. XX, income the September the U.S. in to due nine $XX.X lowering ended per for in XXXX the million ended tax XX, for September the months to XXXX effective XX, XXXX of months months XX, months period. share earnings ended was September at to XXXX. months September GAAP The for the Our lower ended, XX.X% $X.XX comparable increased earnings to $X.XX million months nine rate rate. Net September comparable ended from XX%, the effective ended months XXXX. share nine primarily Diluted the to XX% September nine tax for September XX,

colleagues headcount XXXX billable included the global X,XXX, September at ending XXX. XX, and which at was was Our XX, X,XXX and XXX XXXX subcontractors, September headcount SG&A

our issuance end. year at outstanding during debt, issuance $XXX the net mentioned, deferred debt unamortized to $XX of convertible Jeff increased costs million discounted to million, As quarter and our compared

very us well-positioned $XX.X ended and execute strategic equivalents also quarter million our the against cash third our balance to and leave We cash continues sheet plan. with in to

Our to turn I XXXX, in call outstanding days commentary accounts for the year on receivable metrics quarter will day third the were Jeff the XX the back comparable now over days XX sales to period. of a behind Jeff? for little more compared prior

Jeff Davis

to XX prior compares $XXX,XXX of second Well, the thanks, during the XX north XX and quarter sold year deal that Paul. so in the quarter and growth in the We nice versus third of year. of deals XXXX, large this volume quarter

As bookings I statistics. within very up there of were were earlier, embedded a year-over-year with substantially deals this large those as -- number mentioned these

the more to have majors is strength time to and goods health value. more manufacturing healthcare at consumer that goods, XX% at higher services the quicker deliver with revenue XX%, retail and financial More and combined and with the retail efficiently manufacturing to XX%. realizing but sciences, quality, at same scale of at work at do, the XX%, quarter, consumer and market financial the and During represent XX%, we services, verticals

finally, We approach collaborative are of the comprehensive. times and of and remiss mentioned as more is good release I news Chief the not be more as the included I names but thoughtful haven’t if Kathy in our Henely. And better would our regarding Officer, than only retirement the most biggest and Operating

helping course owes us and build decades. of thanks been the this contributions leader nearly business. partner a Perficient for dedicated in two executive All She’s tremendous over Kathy of

an promotion the of structuring Hence the her out building and very President, Perficient, decade in COO. strong Hogan, legacies One and going understanding has background of leaves sales leader of for the assistance been than be extended acumen. more excellent leadership are strong great announce solid a deep operational He Tom business, many Vice and we a the fortunate experienced excited and at Tom’s role a COO. she into is to team. of and to a

So, again, Kathy great to congratulations was Tom, quarter. many thanks and third a to it

potential the into XXXX. for and heading optimistic very good are QX have momentum we We about

the its its to $X.XX, We expected year range are share please? fourth range narrowing range to be excited earnings XXXX is previously be $X.XX. million $XXX Fourth its of quarter XXXX its revenue guidance $X.XX Perficient to earnings of per the full adjusting $X.XX in provided raising and to the is million call $XXX guidance guidance that, share up in $X.XX to $X.XX. to to questions Operator, million. be estimate. we per to year issue quarter open to XXXX our expected and raise in range to adjusted per earnings Fourth our Perficient revenue quarter million, to GAAP range earnings to $XXX $XXX to expects share can GAAP XXXX $X.XX With fourth per of quarter adjusted share the for $X.XX. is earnings full

Operator

Company. first Mayank from question Your comes and Instructions] [Operator Tandon Needham with Certainly.

line open. Your is

Mayank Tandon

Good you think, looking of financial key XQ expectations line, and and in the maybe questions the the may XQ, full context like maybe seeing you guidance, Jeff well? end healthcare, morning, and maybe have touch year. terms comment the for Few and what you been what verticals the behind on I its range lower are retail you. Thank factor a lower also in the Paul. that of and tightened at at services as revenue on of for Could revenue

Jeff Davis

Absolutely. Yeah.

would of that good the really all-in-all our it’s $XXX,XXX very the let have the yeah, we strong. We of are midpoint is our point so we good X.X% a -- macro still guidance. I First, me say, environment off about of a see -- But, out midpoint about guidance, below pipeline.

great the have the of to more about That’s the we second Totaling, in I to bookings. year. about impact We carryover the cancellations want that $XX quarter. say talked million

have that, to long we probably, QX, far work in as to liked again, guidance. to get quite from had would pretty up close under but, to So come didn’t we our

Mayank Tandon

color for you margins. are the margin of also year some I provide thoughts you terms terms front performance. in key like good if you in of what could your expectations could a year Maybe get and to Jeff, vertical your seeing on wanted in Thank you. maybe This around be in around go along the ‘XX, That not would margin longer just the about vertical as talk term, on into you the of as expectations with well the line into details getting terms specific trend of but exposure revenue. some helpful. looks

Jeff Davis

Yeah. Absolutely.

So I in mentioned four verticals script. those the

rest. almost in performers We the a healthcare are want continues From head standpoint of in to and healthcare represented quarter. is bookings be quarter. strong our to shoulders I half the bookings above say the

well, So continued performing we us, retail, as key not own, services performing as fast very accounts strength its there. there, others, growing but, but got probably again, holding manufacturing for have automotive some some well financial

holding again, particularly say own The its all-in-all, standpoint. the us. and services we a So, Board. be I performance well, I across least like would or are from rest it’s seem for performing might bookings improvement said, to But, financial seeing the be pretty one at much solid exception strength and

looks So good. us macro to

trends planning X% terms we talked goal and In of of rate were this before, X% margins, year. have I I this had about increases on to a

been have do get think are trending able We to I not up they now. there.

anything of good to to Although, to at margin my we margin bookings, would certainly stock on gross margin, us we I be on see comp services. be next still expect seeing that least to while, goal. but it’s won’t I solid like basis most specifically your see that XX% expansion, net trend for a but expansion early getting year, and are point, that recent points putting out that’s to probably, here continue to we in tell improve. or of And these believe XXX

that XX.X% I think and this we are like at see towards us quarter, next move we I hit close, improvement. year basis XXX to so least I would point with XX%, like said, more

Mayank Tandon

target That’s I the was seen That’s growth today, helpful. What the on months think, you think, based so goal for I digits? And finally me. the on year? it the what just this you year, into organic came the in growth, nine far organic for high is have single when

Jeff Davis

Yeah.

we think to next end are up I month. going

are I The range. X% be feel with in pretty I think the think and there. guidance I think, would to of we at to up upside our we this there’s guidance, end going some comfortable end X% X% higher

So at and about works. back around X%, put would you then, how us think, Unfortunately, went cancellations. I those that’s back if that not and world added But X%. the

we of a could our along grow is, the ABR it range. keep with as Again, combine quickly to push note thing think, in be below. be to of I that not onshore at should though One thought little where beginning we cancellations as combination outpacing we the being still of business. kind hoped those it’s offshore year, able continues to So I

of a billed point X-point X differential So hours are positive growth. the or revenue to the organic

X%, difference revenue, organic and again, X% digits cancellations. So those between the and is billed high-single really that X% the hours,

Mayank Tandon

you. Thank

Jeff Davis

you. Thank

Operator

Atkins next Sun question Frank comes Your Trust. from with

open. is line Your

Frank Atkins

taking to bit What my and walk more you happens of through have questions. impact Hat. kind gotten around feedback and Red for why is I client a positive you so what far IBM typically wanted and a Thanks these situations? in little ask this of the can

Jeff Davis

tell feedback to client too simply is books. I catch just our what Yeah. bill the chance you yet. It’s haven’t early. I up Absolutely. had can’t with a

will Although, positive I be just perspective. from expect my it

it pricey really it’s it think enhances IBM. think portfolio. a their was deal for I -- But I

available now guy from would perspective, broader I with Hat be you IBM the happy are you think, would the them. stability even a So and Red to and shop portfolio if be think, that [ph], I you an happy with

the years. standpoint, one of standing partnership still and business. platform number the -- of from IBM would a been of with revenue We over the It’s through longest largest the say one generators of I acquisitions largest have our a

large. Although, as that’s faster, obviously smaller, it’s but relatively become been changing, still grown it’s have others

We time with and enable because acquisition, already Hat. they good acquisition, do an in really they we is they relationship are have have a enable unusual, need with they IBM. Any one strong large partners we us, this this relationship first of that the very, don’t come to into a very one an case Red

reached an are together us, bring sides them help forces. on by key out know the it’s everybody being in and and and a great fact, and been expressed both out of highly in We both joining for us two So already partnerships thought partner sides, interest in have field.

excited are we So about that.

nothing should I it leads think if I said, else, like way. of our a drive lot

In a fact, have we well I am all from as confident that, said, good them. sides know both like relationship with of salespeople the I

Frank Atkins

Okay. That’s Great. helpful.

Just numbers revenue a the could question, in just quick quarter, organic I the get percentage?

Paul Martin

Yeah. down the X.X% quarter. roughly It in was

Frank Atkins

significant -- or I part give platform? you Could by in of bit base segment other now is that revenue included And the a Okay. that then, noticed platform, other some the technologies. the us what’s technologies some on terms the color of a granular in the in little by technology increased and examples

Jeff Davis

Yeah. Absolutely.

us heard throughout year. the talk Pivotal have You about

out just and $XX breaking in they grow quick. million I falls and that by all of and falls likely we Hat, meaningful out the of I way in pretty in Red these like of we level, breaking there. Pivotal sort I rising separate back to Magento a or mentioned, others is of So so A are are or is material think probably MicroStrategy around, continue as the are that. of there, that those be now there. threshold will right them And are said, hovering to breakdown. couple But Sitecore that are that as again. another component

Frank Atkins

bit ABR goal higher what it then, you challenge that X% year been drive can It’s going to this a you kind think levers to in and the a And will little of of take pull do forward. are that improvement what think you Okay. to drive X% range?

Jeff Davis

of bookings folks certainly bad as well folks, kind are of for we little power. incentive that some one reality the touch those as as deals, is deals sales on we earlier for that the that both that are that, and have didn’t found is a our large I focus very, doing, in and you awareness. additional delivery good talk on pricing just we is multiyear and providing been as about and very Well, in But simply things those our of those

make rates it have little also will we this got relationships so along raise to little makes these and And a raise bit to long-term difficult difficult a the ABR way.

by what average have or X% we profit, salary up drive point is so, And is utilization offset obviously, year-over-year. on year-over-year so which base down done However, about actually, that it. also instead and to a helps really up our is utilization’s

pyramid So the at job these has done people we have pyramid done ahead of managed team us, has base particularly of rest. -- too the more excellent keeping managing the that the consulting an from pyramid management of on top team the effectively and the getting introducing larger -- and engagements, of far

So, X% and a in of salary to the net X% result of significant that is actually the year this down in X%. pull is range, rates spite average

I still So up. come ABR we got. those numbers the want to are see

that, think do to putting are we can happen. we on incentives it again, place make I in focused and

Frank Atkins

Okay. Great. very Thank much. you

Jeff Davis

Frank. Thanks,

Operator

Brian Your comes next Global. Alliance question Kinstlinger with from

open. is line Your

Brian Kinstlinger

Thanks for guys. questions. taking Hi, my

driving healthcare driver also, you bookings. line mentioned a see the big growth main trends It’s is in you revenue, discussed acquisitions, big was then, And common perspective that are we Can You there from is to driver. can large from or have demand? well, organic quarter item from a -- of there is coming growth that bunch that a the comment the -- that a healthcare? on that is

Jeff Davis

the are digital the I all paradigm And primarily to organic. industry, There from pieces, about to say all as split between about, are those but something still complete coming redesigns, answer of of analytics, the with of a that in virtually squarely compared like it XX-XX It’s working It’s digitization, under customer digital we that, growth applications like and the want say And lot journey acquisitions. doing, as redeployment fits suffice that. all a it to providers to is I and that the everything umbrella. I patient two shift, or pairs. it’s facing, said, small patient some but is whether are enjoying facing It’s we patient journey, said, like are is I lot the No. so say, we de theme about the but, minimis patient consumer, your transformation none the healthcare question would transformation. digitalization well, there. all portals,

Brian Kinstlinger

And answer’s growth a say for would that smaller albeit space, digital same and well? you the consumer is retail that base, on the accelerated transformation driving as that

Jeff Davis

is. It

be might and are digital You doing automotive not them actually, are we what is might of in under -- or transformation surprised manufacturing most of be most doing we there… fits actually the

Brian Kinstlinger

you can… then And

Jeff Davis

now, I fits revenue would maybe plus our XX% that. say more under of

Brian Kinstlinger

And how somewhere baseball, are the your that? that using you Are you you customer the you are maybe late in inning look are are transformation? about what where middle, base of you then at your in in base, process within early you do digital process, with when you, customer them, think the

Jeff Davis

sure early honestly, that’s just it’s competitors be to baseball continue have rising and as is to third tail. Particularly you second using bar continue sharpen inning. at healthcare, their at Honestly, are the look Yeah. going going well. on would if continually hazard, The going for and or the metaphor, to game I

catching to up care my general one in and these view in health a do them. be lot could tail of particular, long and of industries digital transformation some of in have they there on is a So

or third So inning. second

Brian Kinstlinger

I said I not question know people if I you IBM, have that business top asked. leads? -- for Hat, you one business? a more partner IBM, already that would how then Red volume, the But Hat. are articulate mean, top your am business you What could get Red it changes for changes a increase partner lead on are And what already you you

Jeff Davis

IBM these quickly, Well, new they growth lead services, onto acquisition with pretty flow sales force increase should once changes which substantial again to those all us. turn and is their solutions happens makes when

Red have I little relationship you no go the that going with tell partner automatically We be is behind. because portfolio are we of that a And Hat secret to already. to that a IBM’s would it’s

this I transformational think So for IBM. is

sure will betting lot think demand are center seeing a advantage this, around full go lot to Red and Hat development, to the were are farm be seat be behind am a of But catches in they they take and are of the to we cloud component going cloud on going is that. cloud OpenShift to it them with service in business drive I They at right portfolio a quite spaces to up. of incredible platform IBM’s and now. as obviously, I an this

Brian Kinstlinger

One is When what do questions. think that as pricing, were it they as is reason wanted, price mean, it. about be folks two numbers this able prices, you you then at they had your have many and sales more led what which to a economy? I was thought to Got maybe to you increase year, look more the they couldn’t up get I less strong in little not competitive X%, on doing such deals increase a or that

Jeff Davis

Yeah.

want profits, in major the the and But the so reason to primarily, say between on deployment lot balance growing clients It’s of hamper a top clients exchange commented I a consultants XX%, that rate is earlier, XX% it’s As I been the of don’t two. that would a think, we growth, areas ahead, a accept of it’s from raise we the our are in rates lot also, kind honestly, more scenario. that these with little large, a difficult for a utilization. of a can large again, for that, long to is we frankly, I coming revenue high of they lower But have engagements time.

still and though be make drive Does those are we that an point intact still to So below goal X-point projects want as the X-point calculations or the X gross actually or rate average. forward margin even on might what hit sense? the

Brian Kinstlinger

share on me do details Just the is accelerated buybacks, what exit over Last it and be basis Yeah. you behind the company an on Yeah. that to Sure. year the buyback, expect question that. the will time? share remind count a

Jeff Davis

to the of continue in think opportunities an blackout, We now and in of stock out we to question... is is XXbX-X the -- we the open are but to always very that going certainly But once up, we buyback. Well, had buy your so advantage answer happen are I when are to no window. different. will coming plan -- and out open we trying place buy to pick we be to some the out be take right windows, attractive of to we will now a

Paul Martin

Yeah.

our $XX.X XXXX is QX So, financial Brian, called quarter. a there’s million it thing on for and the estimate results shows fourth our website

Brian Kinstlinger

so Thank much. Great. you

Paul Martin

is $X.X now Which from… million

Brian Kinstlinger

Yeah.

Paul Martin

the … count what QX. are average for share

Brian Kinstlinger

Thank you. Right. Right.

Jeff Davis

you. Thank

Operator

next Research. Vincent Your Barrington from comes Colicchio with question

line open. Your is

Vincent Colicchio

Jeff, am verticals with clients or handful your of any bookings, curious is broad Yes it I is a based? any there strong concentration in

Jeff Davis

No. standpoint, out refer am a multi-eight what in broad It call example. organic, was had an obviously, a When we year. we referring, But I figure July, I a did we deal, as normalized over for when we based. haven’t like are a so, three-year any that pretty taking to win that, It’s normalized also from acquisitions we large do contract.

be to added and two the back that months it trunked and come we it So and around next year. years XX compressed get off to

said, than a lot XX I solid more number. of digits than XX, and So though a even good like double run months contracts it’s No more out, substantial year-over-year.

Vincent Colicchio

canceled really happen of any possibility any, of some your come And to range, probability guidance to revenue deals end high the is there needs the back? that there then, is what hit

Jeff Davis

fall goes terms in may kind two-week are close? most close way To our in odds answer the is, with timing will think well, to say, say deals no. is question. the we bookings if think, gone, we can of they The particularly difference, I deals those, we are right. the percent know We the that. put here that, I make on from to I slip, in could in There and don’t So good close. system. they actually, our I they going well, that, the it’s and your key which out going of back. so a there’s out upside deals. had The quarter we for odd think achievable one to but on way. are we -- to in that put this ones everything those a there and we the slip know somebody’s there of two-week is have when Those out there is end that hope they potentially going is backlog, went have big some to are a business, midpoint, shouldn’t QX, the got come big our business, them deals issue But be think, competitor to is reality for leading going If XX we that challenge big upsides reasonable issue I again, so When very came with part, would challenge

Vincent Colicchio

that in a pricing you better then seeing with year the pricing, And follow-up clients say you are have on two? added or past,

Jeff Davis

I And probably quarter last in two. specifically Yes. or would say the even more

I new any mentioned and One logos like little we have to the growth ago, losing new a be form new focuses bring keep of now, logos. I but number accounts. in in of not the business of of lower, adding by the that that form that, minute a more to actually we in sales the right would is with team

in a $X better are $X but have new relationship those control the we obviously, $X in can we, more logos, in and they deals. obviously, competitive, or new drive So or

will pretty of say core we again, it. these and have good, But So large is I ABR to trend the on our a be be drive got we feel drag between would I still might substantial a competitors. think I able is us gap there a billable little deals, large, up. bit there actually

Vincent Colicchio

for answering questions. you my Thank

Jeff Davis

Thanks, Vincent.

Operator

from Klee [Operator with Allen comes Maxim question next Group. Instructions] Your

open. Your is line

JoshGoltry

in Josh is Allen. for This

it the you So be Elixiter. acquisition how more about much specific accretive Can for is earnings and is there margins? their profitability like and of to what

Paul Martin

Yeah.

comfortable, our is fairly profitability than their average. So overall better slightly

adjusted So months, to accretive, we it very yeah, $X.XX QX be in XXXX. be it probably will $X.XX here to because EPS have in but two modestly will

Josh Goltry

any is I or much down, of think, time trending do been sort touched line where to anticipate you are upon has rate soon expand expecting you you already now? But bill to it. your the And bill that from it in remain rate Nice. Okay. pretty

Jeff Davis

think, to be. Yes. not and where about wanted we flat are that’s year-to-date we Josh, I

working was still to it raise for points on and that. the Our are we goal X points to year X

goal So my to our every in my again it’s goal likely actually year. -- fact next be year

in so are we think good markets labor a pricing climate, tightened some we up have I should power.

Our great. win rates are

in is capability business. best delivery the Our the

points. a there’s to again, are So, points panel again, and us pretty substantial and going that, after X the gap between our competitors, to we best go X and

term silver offset that a utilization. exchange earlier and which discount. again, more we are that, challenges, one longer longer from in -- has we larger are is lining bit term though we higher a with are margin the we I standpoint winning offering a deployments deals of But, little As for probably that mentioned

Josh Goltry

customers, have press And new customers with are Okay. of is it result those as release you some the or actually a are those acquisition both? or the in you that highlighted engaged

Jeff Davis

No.

organic. those not I think primarily if were all

Josh Goltry

Okay.

Jeff Davis

them -- a incentives having we and in new would I team to and got I logos are And focus we up on mentioned to, as it. chalk our yeah, success earlier, sales have for with that bring

are logos our we on goals track on new year. So this with

Josh Goltry

Yeah. Got most of it. questions And answered. my were Okay.

So thank you. it That’s guys.

Jeff Davis

Thank Okay. you.

Josh Goltry

Yeah.

Operator

There time. now would back Jeff I further over to like at questions call Davis. turn are this the no to

Jeff Davis

everyone. Well, Okay. you, thank

happy QX see, can we the you As results. are about

We potential are and that bookings XXXX are QX we October with excited bookings the about about in in the enjoying, stronger again. were excited

a Thanks. will talking you those about in to months results. look to we So forward few again

Operator

conference today’s call. concludes This

You may now disconnect.

Perficient (PRFT) 3 Nov 182018 Q3 Earnings call transcript