Earnings call transcript Q4 2022

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Operator

Good day and thank you for standing by. Welcome to the 2022 Q4 Perficient Earnings Call -- Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is recorded.

hand Chairman over and to today, our now Davis, Jeffrey CEO. like the to conference speaker I'd Please go ahead.

[Technical Difficulty]

second going I apologize, our wait sure just with portion call the is the technical some we being one that to heard the everyone. We've Perficient session. been call. experiencing here make while audio on difficulties of We're

Jeffrey Davis

Yes.

has appears once Just here in restart we to we we that Davis, confirm will add It to Jeff that, everything our do. provider a that this moment, working. is just

So I'm thank go Hogan, on Tom Paul to for you CEO. Perficient's going into is this. ahead this CFO; to me back just Chairman our your time and President This the With Davis, usual, our launch call, and as is morning. COO. Jeff Martin, want and I

XX this to Paul to going of Again, we the minutes proceed per apologize safe statement. prepared ask we before usual, harbor morning. XX for have difficulty We but I’m to the read comments technical

Paul Martin

morning, good and Jeff, everyone. Thanks,

Some will be will of performance the within those meaning the may differ future statements securities from discuss call of concerning materially the in in Actual forward-looking company results today's things laws. we the and filings results statements, forward-looking than to refer contained additional cause to encourage SEC you in different our these today's concerning information could discussion. to in that contemplated factors we those be

and this At refer EBITDA. adjusted EPS we times adjusted call, during to will

the most is at accounting financial website press earnings accepted posted a comparable certain non-GAAP including directly release, our Our to prepared measures www.perficient.com. on reconciliation GAAP, with in financial measures or principles generally accordance of

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

Jeffrey Davis

discuss this and I our fourth apologize growth again, the continued and time And quarter profitability. we morning. as once delay Paul. Thanks, full and performance appreciate certainly your year We the for again,

up per sales on environment, with up XX% We're, at ever a course, cases The of extended performing macro capped some growth actually and the profitability the in increased our period. in earnings of quarter it's adjusted confident and X% notes, well fourth as been. based others during somewhat relative cycles year share Perficient But of of and to the there is are that And another space. solid monitoring lot Perficient and positioned well, the business some positives same. is we're are revenue

Services was gross XX margin quarter. basis during points up the

It's physical combined place higher having higher on a continues. force ever Our willingness unique Perficient offshore breed. global discipline. of a strong fully to the many competitors, materially truly journey for delivering that premium direct our of profitability talent. by ongoing and with a in than our success than before fact, The remains rates Rates, into are deliver, integrated work than transforming the and we unparalleled value our best model customers' ever our of again, we're way, We're of our reflecting result more the of in commanding before. work superiority and

talent global and truly is model And helping that well. retain as our culture integrated us

remain value of that meaningfully, in while sequentially speak the quarter, And half targets. was was total year-over-year. the closed, win strong pursuit we our not Our materially forecast not growth deal pipeline was revenue we The up large The remains several deals attrition specifically global successful XXXX will with of organic again yet and won trajectory minute. could change if a strong. a offshore during the quarter Tom line bookings during do year. with the to XX% in We transformation. at our in accounting well realized remarkably that in our year for total XX%. in Overall, of

poised our clients earlier, As services another for confident of for but year decisions, and demand more we're timeout some we're growth. solid robust, taking are mentioned will I remain

fact, project have we're of than large quarter, benefit the in lines actually In a And be that more deals, terms on seeing we been of saw in historically. actually urgency the compressed are expansion time they more during a will modest cycles near meaning, certainly sales although term. those deals

more are before concerned, terms ever made. there than Customers commitments moving before more and are ambitious than but in competition some once been of quickly ever have

clients Perficient call, on As we growth is last leveraging efficiency, cost the mentioned seeking or in answer. quarter's by our whether are reduce to investing

everywhere, pose growth non-U.S. to also that And a overall And will reminder help presence headwind our disproportionately margins, our term mix we our top will believe this strategy, shift fast. a on scale but the modest growth. to near but expect continue in line

move we accelerates a domestically is, long delivered point half -- that of XX-XX forward, revenue long-term as and toward will an of becomes revenue it the mix, delivered term half our globally, where reach and our our headwind However, growth. a inflection tailwind the goal revenue

With to that, things I'll turn Paul. over

Paul Martin

prior in the Thanks, over organic and expenses the growth X% quarter, X%. reimbursed Jeff. increase fourth Services services a million revenue, were year, was year-over-year $XXX.X excluding

Gross increased points to prior XX.X% XX XX.X% gross was the quarter fourth in in prior And reimbursable quarter to fourth year. the stock the year. margin, compared XX.X% to compensation compared margin services percentage including the basis in expenses and

a to to prior as in in the SG&A XX.X% compared to was year. prior $XX.X of expense or was $XX.X in quarter expense or the year. the of XX.X% $XX.X decreased $XX.X fourth SG&A EBITDA the of million million million in Adjusted the percentage fourth revenues revenues in million XX.X% XX.X% compared year. revenues from quarter prior

the expense increase $X.X in fourth the was in expense in XXXX. year. primarily Amortization million was two compared to million from quarter acquisitions $X.X in our the additional intangibles amortization prior The

to in quarter adopting the prior of decreased million for primarily for a as interest convertible result Net million in year, the new standard $X.X the from fourth accounting quarter. expense the first $X.X debt

impact to transactions on rate debt rate in year. in XX% the year, was the to was prior the effective in Our the fourth the decrease compared effective prior due the tax quarter XXX.X% convertible tax primarily

performance. million primarily due prior improved year, in from loss million prior to Net operating to for from the income fourth $XX.X million the of of $XX.X debt increased year the extinguishment the quarter $X.X and in

share per Adjusted to earnings XX% from prior for fourth per $X.XX in fourth the a from $X.XX increased GAAP prior for $X quarter or in earnings $X.XX share the year. Diluted to share quarter year. increased the the

You can a release for press see the GAAP full to reconciliation earnings.

organic year over I'll the increase revenue, excluding XX, now the XXXX, prior million turn was services ended to a year. reimbursable results. growth for full December were XX%. Services expenses XX% $XXX.X the Year-over-year year

the the year XX, year Gross XXXX, reimbursed year. was excluding December December XX compensation increased Services year. for XX, compared and the margin compared stock ended presented XX% XX.X% for in margin, basis the XX.X% to XXXX, to prior gross to ended points prior expenses

million December for year the prior year. in expense million SG&A ended as revenues the the XXXX prior expense percentage compared SG&A year. decreased to XX% of to was $XXX.X a $XXX.X XX.X% in XX, from

million ended XX, for prior year million December year. of $XXX.X was $XXX.X or XXXX, included XX.X% $XX.X in XXXX, or the million XX, XX.X% EBITDA million compared ended prior the revenues Adjusted the year. in year compared to $XX.X December amortization The of of revenues to

adopting XXXX, year. the the million again, to as million December result year, standard the the at Net of new the beginning from debt in XX, ended $X.X convertible year primarily accounting for prior of interest $XX.X a expense for decreased

compared due of Our the in year. compensation for primarily the research and The in decrease effective to compared in XX.X% XXXX, effective was prior a tax increase rate the decrease to in December XX.X% part deductions prior the is to the rate tax year ended stock year. XX, benefit

lower million $XX.X as prior million costs compared percent the included to for extinguishment debt $XX December of in XXXX, of was XX, expense the was in loss result year ended year, million prior $XXX.X income revenues, Net higher of a interest primarily and year. revenues, lower as that of the from a

XXXX share $X.XX $X.XX year. Diluted to increased in year to per ended for XXXX, December GAAP for earnings XX, in prior earnings share to Adjusted $X.XX prior increased $X.XX the the the from year. compared per

Our ending including subcontractors. employees X,XXX XXX as XXXX, headcount X,XXX and December of billable global XX, was

headcount I XXX. think was SG&A

of outstanding costs deferred net issuance was December XXXX, as Our of $XXX.X million. debt XX,

XXXX, as have of $XXX.X on credit of $XX.X December addition, XX, capacity In and cash borrowing cash our million facility. million in equivalents and we unused

very plan. our execute Our well balance positioned against continues to strategic to leave us sheet continue to

more call to I'll Tom? now over turn a commentary. Tom little for Hogan the

Thomas Hogan

of big in We Thank greater Again, that's deals quarter XXXX deals greater fourth in of Paul. third $X We're QX. quarter the fourth and the And than XX ever of the of the of morning, XX during of booked and compared than XX of quarter in XXXX, the million the in than XXXX. quarter XXXX you, we fourth in XX good to third XX to XX everybody. and compares won which XXXX. winning $X deals more quarter before still million quarter in XXXX fourth

a range We're and me, with on weighted their flow. to strong. to pharmaceutical recent X-figure wins patient excuse pipeline improve net Our -- couple un- multinational weighted A nearly data a very corporation engagement highlight. of $X million working

unified review experts delivering view of of clinical and studies, accurate progress critical enterprise that custom monitor cleaning a to decision-making. holistically built allows team data real-time which clinical and Our are global provides drive an environment the

and for We their vehicle manufacturer, also automotive focused CRM services commercial expanded our partnership leading distribution supporting the global with a business. rollout

expenses. architects map and part platform our their existing the that a of road As will the includes global of migrate retail roll-up and team engagement, legacy developed manufacturer's commercial

leading website recently also employee for We same auto launched a manufacturer. the new

a more employees, deliver employee threads million than coming now team XXX,XXX more experience, planned global next-generation Our and to the an than serves business week. in featuring $X The comments per automaker features advanced search and receives options, with worked updated new function site with [indiscernible] personalization more including the months.

to diversified perspective. customer, industry a We remain platform continue well and from

way we particularly and financial industry, materially excited recent years. We're where and revenue has the grown the care about perspective. accelerating the in our revenue Health from momentum bookings a in services led have financial services

cases, we're success. macro for be some let's in competitive the is, clients core many nowhere. certainty, The cycles and critical digital and Jeff but mentioned going to work lengthening is imperative, delivering our mission their in transformation sales clear,

turn outlook. to XXXX things first quarter discuss And and year Jeff over to back the with that, I'll full

Jeffrey Davis

to Perficient's quarter $XXX revenue XXXX expects range to million Tom. Thanks, All million. right. the $XXX first of in be its

First to the share to be is range quarter GAAP earnings in $X.XX expected $X.XX. per of

million First and to of Perficient $X.XX. range year of $X.XX. the in of earnings in its expected $XXX $X.XX be adjusted the GAAP to million, range the is $X.XX, quarter in to share XXXX $X.XX earnings $X.XX in $XXX be earnings of to be share per range range to revenue be XXXX XXXX share to adjusted expects the to full per to

for And operator, with questions. the call we open that, up can

Operator

Our Go Instructions] comes Jefferies. from question of first ahead, Surinder Thind from Surinder. the [Operator line

Surinder Thind

thought the a decision-making point in to question of that we this was demand at new like demand maybe high-level to a year client industry. Thank you. ago, of were start the sits If across level I'd was with where elevated of kind process. there a the perhaps rewind

So not including more but just your for peers. broadly, yourselves,

right? wasn't forward Fast to case, long-term seems intact, still it are making that is quite today, more obviously, demand decisions. There's -- but short-term like clients the

help willingness to So at further understand you're we us seeing guess, at push you should is if off disconnect this their weakness, can for deterioration, there the or a clients and I expect And that future? point continued what projects? foreseeable

Jeffrey Davis

And start question. as to good seat add ask a I'll his it's some color fit. Tom and Yes,

So ended the to it obviously, yes, started, year didn't the your way point.

from to of that think that six so moving this be In as well year within behind what they pipeline terms us. in pipeline. now other recent the as in from seem be seems and ago that -- even months improving to seen, bookings were, I say, words, bookings is far where things we've

actually is of I meaningful that the the were I accounts, at Perficient as on think within have to in optimistic be sentiment have but for environment. Certainly, the stand-alone, number of new we But And macro and be new some very, even large maybe Tom to on mentioned do opportunities and think we And the but importantly improving. it contributing us, very that more call, had existing accounts, for to a again, that. number I alluded year. no a ball. to quite crystal overly potential there as shifted, factors I seems

while the sort or general improving. did environment, to seems it stall I slow, be think So of

Now there's ball, no but optimism. I reason crystal think for Tom?

Thomas Hogan

I agree.

to buying caution definitely larger compounds moved I market The also, in There's still we as very rich opportunity. also [indiscernible]. is that behavior. some with deals think

also say, deal size larger. I'll is However, the

necessarily we representative had of stringency as to definitely that deal of going are through they of historically QX level has bit as didn't a there's a see not through our that larger industry. a have for So specifically, to to the little executives headwind bookings go continue us that sizes

Surinder Thind

kind we lines look project as time are at like themselves related of That's sounds And One is, two the questions. compressing. helpful. then year the ahead, it

for clients work still [indiscernible] just they quicker. signing comment work, I understood to So correctly of on but are be want that done amount that that

focus would that some projects you're cost suggest in Or working projects? takeout that like the of materially on? So is the shifted

of And well. its terms just onshore the as What then like? majority guide in -- has offshore, which more or the of it or look like vast outlook your past growth for in is it the sounds is recently U.S. been growth itself, the

Jeffrey Davis

Yes. Good question.

ever. So based yes, compressed and time services, reduction. say you time the on that our actually of market deals work large to products and It's specifically correctly terms the on of cost deals, heard is majority as not large those and would is lines. new based in I more critical the

lot what's driving think I So of that. that's a

like, they're of -- the that what majority in right? catching talking clients are what was who cycle. so primarily. is from of sales I'm question? we're slow that made behind now, it other is commitment, deals And they think about that Some coming got once through we up -- of -- I these accelerate they're where right? also But do can the then So were some that, So okay, this, now, from that to

Surinder Thind

rates Growth onshore.

Jeffrey Davis

guidance Growth they like to sure, you are have just conservative, greater our be is been. rates, overall Onshore, for offshore pretty can as going see.

out, up would to flat that you lot include or a implying from of So growth offshore. and resources coming, onshore-based as we pointed that slightly U.S.

Operator

Thank you.

from from of the Needham. Mayank Our ahead. Go Tandon line comes question next

Mayank Tandon

Thank Jeff I about just year. of Paul. wanted first to the the talk and you, linearity

trajectory basically at should Are a maybe guidance expect revenue build? second Or based we down expect of XXXX? sequentially your think, to half reflects, you of we course I more flat the linear the How guidance. year slightly So rebound? should a more on to looking over the

Jeffrey Davis

second a bit in be Yes, happier I to think for it's little going sure. the half,

seems So which half. the back like the for common by guide, I the it way, think pretty sees of the QX industry stronger sort everybody you're right in on a year, a

think we same not from highest correlation a underscore bookings to if that bookings I now. pipeline a bookings, out, of but I on correlation free I think, rolling that of because and revenue the QX, comments the sort -- experiencing [indiscernible] it tends And my earlier factor And revenue will, with see would that the we're troughed thing, you in and month high somewhat standpoint, basically be and about between five us. lumpy, the for it's average. is

weaker you that look a out kind bookings, months So seeing literally, five if from a you're of now. then QX

the Bookings first stronger they're were starting stronger in quarter. in the fourth quarter and

would of more of to the or we part half. the see of second that again, beginning benefit QX So latter the towards at the expect

Mayank Tandon

ask housekeeping That's items. offshore. helpful. more terms And just of to the then wanted I you in on

And to growth, your In it's built margins. side, expectations? what terms to the drag of the going the flip assuming I'm on have help in on you

benefit margins based on guidance? revenue the your on just you and on could quantify maybe drag So the

Jeffrey Davis

to of X.X:X predict, It's points. three It's or hard to ratio. sort it's probably of It's sort X% a or -- hard Yes. X%. four

out guidance we So into growth, of on sort what and the... on -- And you is based it can the there back I historic that would from that. offshore you tell offshore near-shore put

Paul Martin

as gross modest there's another modeled From going demand that well. could a as the where to of margin conservative. Mayank. things one a up margin on just wages with And that's and Obviously, prove we've lot be perspective, picks improvement, hopefully

Jeffrey Davis

the transformation and M&A And into. line mind to digital bring -- rates and strategy. ultimately point our competitive we that with be through The accelerate endeavoring to the is in Keep run whole and firms of against offshore more growth. our top near-shore down that's organically

margin all actually of into careful be about as competitive we'll putting So more rates. attractive, a leveraging lot that and it more

Operator

right. Thank you. All

of next Global Brian Our from Partners. Go line question ahead, comes the from Brian. Alliance Kinstlinger

Brian Kinstlinger

could therefore, cycles revenue more Thanks guys. revenue significantly for change high-end in this few captured long questions. Or the you win of given my a contemplated is the and the maybe XXXX that you in taking year's this guidance? sales Jeff, large Hi, company. driver Is a guidance? of not if mentioned trajectory that deals

Jeffrey Davis

contemplated. not It's

you that's Again, an I upside a very those of in all yet to be possible. bake would think year. I probably if think XXXX. without But about on it's certainly the that As and booked. really you're close, indicator rare, that, of but to boost an event this cautious trying it's to but we would the But but spot are going certainly, represent unlikely year part also earlier, mentioned not this even say to of more deals latter that that's I is guidance the for anything

Brian Kinstlinger

then lower year-over-year is And care health and Great. sequentially.

You've XXXX. year, And experienced I a in also the stronger second at program the winding think about second large down. demand talked the of half you've half -- of

are So demand stronger care? trends us can share with you vertical, of there in for this health any indicators

Jeffrey Davis

-- Yes. finally that the at I us, have least but -- much positive know there been certainly shed don't we're We're about. is we've talking that -- stronger, seeing stronger demand that account seeing for that we

$XX that essentially of in last account and It's over So million zero revenue was year. represented million over XXXX $XX now. still

then we'll lapped I that. growth see care. we've So a improvement in think health And

health to -- on as At effect a same which, us. that tremendously the time of say care. think revenue is biggest the growing was for at drag dilutive percent care has same health I going was financial time, a the course, fast, in services of I

Operator

Thank you.

line Jonathan Stanley. the comes from Lee Morgan Our next of question from

Your line is open, Jonathan.

Jonathan Lee

quarter the just we're Hi. wanted delivery? engagement there of guys. environment that the talk changes any Thanks macro. across Have for type shifting pricing of macro given or to the given been perhaps just in hearing through question my I to taking notable what

Jeffrey Davis

about I'm sorry, talking pricing? you're

Jonathan Lee

pricing given macro engagement quarter, notable the any, seeing, Yes. of Like, or where you some type are in related concerns? to changes if the

Jeffrey Davis

to it quite mentioned on services. Other Tom ABR as managed can as for And competitive which on I mentioned whole pricing -- I be move mentioned value as offshore the again, positive, as been pricing power. clients of well, I we compression, pricing. actually has the And we think, is will a as speaks, and mentioned up. I [solid] script, think, as alluded cautious lot in think the we've some I that, the than a We've a the place good because that point And the of our actual be about is to to (ph). before, or

we said, doing -- skills, are, strength That we onshore. we need and got and and to be it be capability, more same do you're need seeing we've than growth leveraging same the more, experience we same And that's where the offshore and to differential.

Jonathan Lee

the can an provide hire seeing geographies? And it. front, you Got what tougher you the your Where higher? on on hiring are it's market hiring in easier you're seeing across to to versus update

Jeffrey Davis

let to the something [indiscernible] take say just and Tom quickly recruiting going about let Tom I'm real question. I'll attrition,

is think well our we I he within rates earlier But that [indiscernible] range. were the mentioned talent acquisition. attrition

great seems us. So behind have resignation to moved the

bodes to going So I'm let on specifically Tom that. But more comment that well obviously acquisition. talent for

Thomas Hogan

United great work America talent Latin Quite honestly, we and great constantly Yes. programs well organization. a involved The which as We're university in talent we're India [indiscernible]used, approach to the hiring globally, looking We've have with the great in the once have right for you success talent value our States. team. sure easy talent. bring way for proposition definitely as making we to but is the multi-tenant we

our "easier" advantage quite one which approach, against and the approach in peers project industry area not environments, find And with competitive board, we on multi-geography nicely compete work, seen for a a haven't the we it's talent. multi-tenant individuals. to hiring there's direct talent. where here, and challenges any culture specific the of So way Across we

Operator

Thank you.

of Jain Our next from the question line from comes JPMorgan. Puneet

Puneet Jain

Hi. question. like pricing do Thanks year? and taking margins does guidance for ask my I for what you this utilization EPS EBITDA to like year? throughout imply And assume what for for about the expect -- this

Jeffrey Davis

would potentially for be guidance the it EPS, modest EBITDA. as to So is to increase margins EPS a -- relates

but maintain I lower earlier, do we've up modest although that discussed it some normal than will keep materially competitive either, EBITDA not that But year, we'll example, not As have to as margins adjusted so down, I we pricing. think little bit growth. as a think gross can we've to expansion be guided flat an we're looking this that

think in or of we adjusted that back adjusted be So earnings get modest EBITDA growth until to expansion. higher will level, terms I

But year again, utilization And modest then consistently XX%. the negative, expansion. at not and but has will about over maintained the expecting maintain of average

-- years, over and our we've we're three four So had goal, still least at last year. success we'll driving or this with really the great that historically, be And again, that's that.

expect same. the We more of

Paul Martin

obviously, delivery portfolio rates, about, offset And global cetera, Puneet, deliveries there's increases we're looking with et to in inflation with increases. the offset as the us we rate -- wage talked is [indiscernible] we're respect where manage notionally capability to looking allowing to to those. bill and Having our wage

Puneet Jain

Right. that's compete And higher or from way? business to is eligible there new few a way a offshore to estimate that the deals the you ago. be the wouldn't like years Something for coming mix, benefit your

there way is wins increased that estimate is mix like you? a how drive much helping So offshore for new to

Jeffrey Davis

doing of ago, out, a work absolutely. an already got the pursue didn't accounts point few relationships. great lot couldn't we and even that we’re or existing or have existing because number a really that the as we offshore near-shore just of capability. a large Yes, you capacity relationships years long-term Including We've work

do, we that we're of taking quite actually Now a shares. lot

of the accounts, had able at beginning, that away and from offshore offshore and in is existing which not actually the near-shore the larger of competitors. involve relationships, XX, from relationships new take of lot right actually we've right we're always we've the enjoying also gate, level XX growth on years, only some share to a clients, that some offshore So been almost but

Paul Martin

percent. the said, two of you we've perspective, percentage And in the revenues Puneet, offshore And last Jeff as just done some to doubled to on journey XX-plus years. we're give a

Jeffrey Davis

Operator?

Operator

right. All

Go next Vincent from the comes Colicchio call Research. from Barrington Vincent. of Our ahead, line

Vincent Colicchio

solution since or weakened there that categories are last vendor quarter? have Yes. any significantly Jeff,

Jeffrey Davis

no say Yes, stand out. There's that I exactly. wouldn't

board. a if we're it's -- quarter to But of the slowdown saw a coupled Certainly, -- across kind we of less kind tends not there's to and -- think technology. revenue each less our the disruption, particular be I specific a been that. I goes last months around on, But say, comment, side, six can't shift I on major or software but or any technology vendor. would there's with we lot of the pivoted over so,

Vincent Colicchio

Okay. Thanks. One Is client these are more given issue consolidation more under? or the for an me. if is an for opportunity of a currently threat pressures And it companies so, you?

Jeffrey Davis

It's proven to be an opportunity.

We manufacturer are six X that client. gave a long-time the repeated over statements, now -- of Tom auto prepared We're And story [indiscernible] that global one them. over in and Tier and with little over. bit that only is suppliers

of is there when rationalization, always emerged as or almost we reconciliation even a So player. key a sort a

Operator

Thank you.

of the Cranston ahead, Kate. Blair. comes line next from William Kate line from Our Go

Kate Cranston

the for be can Thanks call? to my is And provide you'll touch on that percent the now right able Kate to question. was, on Cranston exact first This at of that then everyone. for guys revenue Hi, based? taking you you of you My that is XX-XX the I Maggie offshore wanted beginning touched on Nolan. mix reach do when expect revenue question

Jeffrey Davis

but that we're then XX-XX. on pace goal maintain if the for about want have, right? that's the if I I -- thing headwind the one would -- way. the do our or doable. is we towards can thesis Paul think that not, point hard is along don't linear, I'll think part And that three less become as the what we of I That's of business. that's course, second first part. point we the a represents towards. certainly going years to growth that, I know to the that, be of whole is address So answer But working the the less aggressive and work offshore pivot XX-XX, XX-XX out that So key really and very we But be

step stair a really But function. a accelerate. point will where critical to I and tailwind be not shift it's think So that the things

Paul Martin

of as it it's percentage I of little And XXXX. with to revenues, fourth it will double continue Katie, XX% into a that [indiscernible] respect about the Yes. before, I And and in think today. quarter was to the bit about accelerate said XXXX,

Kate Cranston

Thank very you. all one question helpful. then That's And for me. Great. final

short-term Within are greater deals grow are million, are as of to the these most XX deals? that transformational deals these longer-term the Or than $X potential that have deals?

Thomas Hogan

ability to continue the have grow. to Definitely

length phases as Jeff it multiple of this is work. within compression backlog As the mentioned, the -- as the far

So to the coming it in should upon itself continue build quarters.

Kate Cranston

Okay. you all. Great. Thank

Jeffrey Davis

Thank you.

Operator

And our from question next comes Scotia Goyal from Divya Bank.

Divya Goyal

everyone. morning, a on had I quick the company. the aspect Good question of Jeff, technological broader

your given competition deal is things the is to is And So out of are then of which in the pace what pace some with the on competition changing, at Perficient the doing technology the kind of there, order more how strategy that stay M&A top aligned wins? have this?

Jeffrey Davis

Not in opportunity specifically focuses sorry. and of on, a on fourth opportunities services take to team, on as We adopts big well, that And it right M&A We for mention put only the that. that navigate us the to Tom good I'm the let strategists at team that whole and necessarily a it really quarter. We've but that. not a is to technology I'll everybody We going close what all eye on help take of of and on, course, are consciously add have that management around a at help I'm be M&A Tom rely a clients, high pipeline. think away. I least hold we new going kind do got group also us. too level. We've -- pivot early not the because for I'll got

what that then. we you be And a catch And the to bit, the quarter, markets chance things was like. in we because Things seem wanted fourth kind We want with public valuations down now. a as little seeing of know. to we give the do macro one closed up to the deal environment weren't to also slow see improving

And so game in we're quarter. likely going to be second the getting back in the

Thomas Hogan

on little Just bit. a to that take

looking around globally, of So bunch next team a the is technology, explorers really at our thing.

So example, gendered AI. as an

necessarily We then India, not from groups world, use just China, the together cases, on around come. all interest team technologies United the technologies strategy utilize strategy looking America, them. newer collectively groups how clients interest our States, within Latin can greatest the the next Serbia, working to put team, have world, individuals actually around we So at our around together

with a You're gendered which AI GPT tool. probably Chat is familiar

We the working gain that to with, leverage ROI. to collective them us technology, X,XXX-plus have consultants just through world. how us can we regarding not around actually clients And for our they for do with but with play

technology a future, So in we is have see be and very our how our but little can part technologies around those at value it's talk domain look will we that of bit to a the and that of they customers. culture specific interest to more big groups

Divya Goyal

That’s color. great

to next. Looking forward coming what’s

Jeffrey Davis

you. Thank

Operator

would now remarks. to for turn Davis closing to over it Jeff like I back

Jeffrey Davis

All the your days. through worked again right. for XX issues about and and all you But the and time here thank your you forward in some thank call. we of for at technical of patience sticking the you seeing to as Well, you onset around look thank

Perficient (PRFT) 28 Feb 232022 Q4 Earnings call transcript