Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to the Q1 2023 Perficient Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker, Chairman and CEO, Jeff Davis. Please go ahead.

Jeff Davis

you. Thank everyone. morning, Good Jeff. is This me on CFO; Paul our today the Tom Hogan, call and COO. is our Martin, With President and to your for thank morning. like time I'd this you of have the up for questions. to And we'll call about typical, after which we'll XX as minutes prepared comments, open XX

Before Paul, please would read statement. safe harbor we proceed, you the

Paul Martin

Thanks, good everyone. morning, Jeff, and

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

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

at earnings financial comparable also non-GAAP most Investor non-GAAP our measures accepted our reconciliation under of the posted GAAP, a release, guidance measures in comparable including in to deck, of directly slide www.perficient.com. is to accounting website which accordance Our a posted financial reconciliation measures directly generally with with GAAP certain prepared or Relations. prepared most certain press principles accordance on We've website the financial includes a on

Jeff?

Jeff Davis

quarter for Well, profitability. in to growth and Revenue and we will margin revenue earnings again of Paul. to our year expanded already We of Thanks, thank position be solid morning excuse me. services remain confident by -- and prove the you during best-in-breed continued that strengthen. XXXX points, XX% growth XX was first your continues basis and market that as the the another this time and all gross discuss X% year Perficient's start up

before granted in X builds, As ever, X we're bets many previously more where bigger winning opportunities incumbent providers, talking and Today, our reputation about enterprises and and work we're other and discussions reconsidering firms. we're that than in -- relationships. are was getting to engaged and brand more cases,

evidenced with by types we're them. customers increasing Our having to rates the place having continue build conversations audiences the our services, and we're the we're as commanding, value on of

Our some our the the of the headwinds total And offshore. the global portion quarter, XX%. mix offset revenue continued helping revenue XX% Growth XX% ABR revenue success is of our is way, X more over to is offshore by and America. just than increasing there, delivered headcount created during outside delivered of transformation of now their North doubled was that growing in years it is nearly by billable the

bookings with mentioned news our quarter, bookings data around quarter speak Our to in bookings it optimism the organic our our release and deal and digits, history Tom shortly. will double performance was the large up during wins the strongest

and consistent demand breadth the industries. platforms perspective sales especially pursuit activity expertise with environment, a high, and seeing key remains of couple continued the we're remains calls. our across backdrop. terms pipeline The the past and we considering and volume A quite reason macro in is described In of our what depth robust our and is

by the or And impact capabilities imperative earnest, from here answer. is providers. survival us reduce that flows broad-ranging growth transformation efficiencies, never Those for Digital in standard to help and working seeking It's in digital merging may are more isolate going and business. Perficient ebbs our into the is away. clients investing costs narrow whether

continue are demand of us platform to and providers. partnerships, mix the part win work. They world's drive our deep cultivated winning important An well-established the help with we've relationships and leading general

few emerging During their Americas. recognized the years, in digital billion the Adobe, business quarter, and as $XXX experience the year we where plus built of a partner a for us just

our remains part important M&A strategy. an of Finally,

reasons. there in aware, However, intentionally you're couple activity of slowed quarters a as we recent for

discussed, we've market remained as have private high. valuations First,

that a we're Now active on opportunities. in back some come they've down bit, discussions

some to acquisitions, deal. Latin ready America three completed integrate the progress to find particularly right in when in wanted recent so made we we the move time most we has forward recent next our we're been further there Secondarily, quarters. Great

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

Paul Martin

Thanks, was Services increase Jeff. percentage Gross XX% points XX.X% Services the revenue, growth quarter, expenses, $XXX.X margin, year. to prior excluding compared million XX quarter in first and stock Year-over-year year. the prior expenses first was in the the prior reimbursed basis compared quarter. X.X%. a services reimbursable to the quarter gross were XX.X% in in to first the X% margin excluding over organic comp increased

or revenues $XX.X in quarter -- million $X million or of in year. revenues the XX.X% the $XX.X XX%. expense compared year. at Adjusted revenue the SG&A as million XX.X% of to $XX.X $XX.X prior in a compared as was $X.X expense -- to compared quarter. the first million of prior to quarter constant EBITDA remained SG&A million in expense was first year in Amortization was prior the percentage million

interest decreased quarter the for Net $X.X of prior income. due $XXX,XXX million the $X.X expense in quarter million interest to from to first primarily

to rate first tax the in year. in prior quarter decrease to Our to compared was share-based increase XX.X% year. for effective rate tax a the The relative effective prior compensation deductions was primarily the XX.X% in the compared due

in the first increased remained and the adjusted for share, per at for from X.X% in to from X% per the the $X.XX year. constant $XX.X first quarter. share to $XX.X prior quarter a $X.XX Diluted $X.XX or earnings Net decreased prior million earnings income quarter million share

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

XXX headcount subcontractors billable headcount XXX. X,XXX at including Earnings XX SG&A consultants was March was billable X,XXX adding and

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

million cash capacity and unused XX on facility. cash million $XX recently and of also $XXX.X March equivalents of borrowing credit in have as We extended our

balance us commentary our well Hogan strategic a turn Our for over execute call sheet the to on leave against I'll little continues very positioned plan. to metrics. now to Tom the more

Tom?

Tom Hogan

XX of than the million greater XX in in first quarter and XXXX. XX We the fourth the booked XXXX deals quarter during of to Thank Good $X first Paul. quarter of you, compares which morning, everybody. XXXX,

unweighted And pipeline the both in Jeff the weighted was As booking history. first mentioned, and remains the strongest quarter strong. our quarter

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

and services particularly ongoing perspective. efforts. in is revenue in a the Healthcare the global administration recent services where remediation We're leading led revenue have of years. are has and where from customer we about bookings financial we supporting their our One example recent encouraged industry our materially win accelerating industry, financial way momentum loan the grown success a reconciliation and with financial X-figure group a

audit value, to expertise our overall challenges. selected client record markets, and driving for services in our The and due deep industrial operations ensuring This by our of risk we're the value. function program technologies and Perficient financial depth the help technical our will their property bringing the management provider's expertise regulatory improve vertical the and customers meet to track Across milestones.

industry we've specific challenges address quarters, recent from proprietary market experts. dozens industry by knowledge solutions of created our that In impressive team technology of leveraging and

we're deliver of platform value With a these Particularly of deliver clients. that recent able to best tools, solutions, quickly our actionable exciting digital launch and tool, data the quickly suite and for provides repeatable historical proprietary industry our unparalleled strategy transformation with very a online to insights. practices comprehensive Envision

to real-life is across and quickly is markets But address tool's how informed This on understand platform a competitors, individual than results. tool. selection understand vendors one their companies client Envision by more you online Enterprises depth, component, X,XXX tool, a more data, prudent to sense their across and collected and determine execution them. the customers stand to value quickly where can relative requirements. give distributed based of of the priorities helps industries, potential gaps relative the they XXX the than

colleagues our the recently in Perficient published a and philanthropy, It's impact around in across within we and to activity the report, our our committed take I section world. XX-page of We globe. to and Relations some also Beyond and the its market about encourage of Investor first remain of environmental you available annual momentum, society we're the look. a compilation the support invest impact having just community involvement communities excited website, and community

markets. in our program, expand investments the graduated find from where to fully continue up reference on enroll in constituencies this the a year. XX And program this already that program half you'll we year, and national intend XXX We funded to have students Within opened training into in basis. various like we've underserved communities. of just program this it, in hiring the of BrightPath to students first

cities. our continuing technology school We're a information and You'll artificial students several expand in encourage build also about boot to which Foundation of AI, as this career of high consider on Cuban serves hosting intelligence partnership literacy technology. them the well, with to program in fundamentals their camps and find educate to to the Mark our

women to of in add certainly we recruit that, Thousands our so investments These discuss events, over thriving. for it's giving resource and capacities And helping technology great with in can second employees. turn global discussions finally, participating our retain with I'll the activities us our the our are back in soon making groups, communities existing Jeff to value things our to in colleagues, culture celebrate employee our And are to are And ERGs. our our important we're customers. workforce. various we're will diversity excited people, and and inherent quarter. and deliver which groups and more colleagues And

Jeff Davis

stuff. Great Thanks, Tom.

range to expects Perficient million revenue be So the of second quarter $XXX million. in $XXX to XXXX

be to second range range expected expected in be is And share $X.XX. the adjusted in per $X.XX earnings of to the per quarter GAAP quarter to earnings to share $X.XX. is Second $X.XX of

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

Operator

the [Operator Instructions] from Tandon line from And question Mayank I our comes of first show Needham.

Mayank Tandon

given out Are for confirming to Jeff, guidance I had get the wanted I you the of in think guide. year? last and the earnings. full of the quarter still guidance terms one way revenue you on thing

Just you're to true, reconfirm that given if the holds what still seeing market. guidance want in

Jeff Davis

Yes, changes. we guidance won't it unless reaffirm typically

to there change the no So was outlook.

feel didn't it. we the to reaffirm So need

Mayank Tandon

Or seeing earlier especially your And then of just front? could the quarters, you on expect Or the release it. the you of of that step-up in you solid the activity, X% the deal a what last makeup on sort some based said the big of just the is that maybe the and of press quarter? in macro growth to half? you're to guided bookings the do the what like comments given organic in help linearity of had terms trends type uncertainty maybe in understand given the back growth and you to us Got get growth

Jeff Davis

absolutely. Yes,

mentioned reason an as increase the half around of here in quarter in really is the keep bookings we'll it the is the we've it had fourth an optimism I key second expectation in march one on we So an forward. But and we have eye some of obviously, that, quarter. quarter. nice the the during bookings really, the script Tom that first bookings improved is and things Actually, a

if year. QX the a of So look the trend flat, over, at X of bookings say, little the was better last still last you which was quarters, bottom, than

of So the had through this some move we'll market improved second be and look mostly if into for see from that changes. in anything as of we'll the all half QX enjoying be Bookings we'll of end solid. and again, we monitoring some kick-in. then QX. that year, pretty the And we've the that the this QX quarter, closely And of bookings bookings we by had the update

Operator

Jonathan And I show Lee question of line comes the Stanley. from next Morgan our from

Jonathan Lee

a cancellations that from about cancellation past accelerate outlook? Have anything any last in You Or through your there is to of this year. things perspective talked quarter? seen embedded you historically seem

Jeff Davis

missed are question, we asking? of your seeing? part very I first are the What you What it. the

Jonathan Lee

anything about this Historically, a out call to from cancellation seems that some perspective embedded past your Is quarter? last accelerate you've cancellations anything there seeing outlook? Or the year. there of is to talked in through

Jeff Davis

than would a uncertainty. got Yes, been say that ago, you. conservative of have more years based outlook I just couple it is on would I the

on wood. However, knock I also say that

norm. I haven't we kind of describe in outside of of the the a early much of had the that last first as spat would half, year what or part seen While we then, since

That that's how an year. In always cancellations are now. to again keep that first it to aligned that a not moved seen to on eye operate work it. in, It fill of got of more we in close always be on again, and right out we kilter right industry, to have -- seems a usual and than past there's have any little more now bit this and half we'll and new something the there last that seem eye

Jonathan Lee

Are of want build you what decision in helpful still projects? question talked it. the in demand Got a prior mean, types on terms this And different of and cycles. elongation for last bookings. you despite idea of persist? That's some color. around And to bookings then quarter, I seeing of I urgency about seeing are you that

Jeff Davis

Yes.

or was. seeing projects of number of little the -- condensed are being We bit it to duration the where compared a

a obviously, continues. not help. So it that trend It's huge But does factor.

So that revenue time frame if you're X% of something, faster. recognize able off obviously, to to going to shaving you're the deliver be

So And said, of of huge we're like comment I on then, Like it's work still you continue. seeing not of body that helpful, to bit the a it the factor, we're out seeing bit. a does and in would sort that is Tom, that type there projects? a

Tom Hogan

we we there's revenue. our also some for see still continue services operational see demand as Sure. demand clients But their Definitely around heavy to revenue regarding additional efficiency. growth, maximize

really businesses, of was as a and cost play is of I lot around mentioning, think improvement. transformation we we program, digital about the large takeout efficiency was that well where that operational cost and which So

are which news line customers. is improve us to as for So for uptick great our more all we as bit we there, the little well seeing continue a bottom

Operator

And question I next line show comes Surinder our Thind Jefferies. from of the from

Surinder Thind

the point, some revenues. of record that had takes this it Just about and Jeff. following consecutive X bookings begin this -- numbers of revenues bookings at of realize A clarification up have you at been here yet you've for the the point to in is to flattish X on quarters point. idea quarters terms It just question,

Jeff Davis

company mind ever actually, a of of that's record Well, than that's is lot because larger it's -- keep that from been. in the standpoint, a

of a again, actually not our little were better were We're we flat. is flat a In right? well. we've little revenue that think bit better guidance QX, contracting, as midpoint -- technically the I for QX. we than a that. record So So to bit And year guided than is

X- correlation or bookings tends rolling average. about factor be a to The to X-month

tends tail. a correlation the of about end opening the it than average. X tail that's we little bit curve, them an months Most bit right? project behind bell a highest immediately. But begin at hit bigger and typically stride projects be bookings, that a But the or our these slow, in revenue point. engagement on pretty left Now the of will X curve It's on the at to then is starts a

that help? does So

Surinder Thind

Got helpful. just it. or to the verify that. wanted Yes, understand that's I cadence there

there. from on moving So

this thoughts you the discussion media Yesterday, evaluated AI. just, around plans? How of on In in a terms point thoughts internal productivity for lot obviously, terms in yourselves? a of there was deployment of of about their generative piece gains. have kind there technology at Any the IBM and

Jeff Davis

actually Well, we're to degree. some leveraging already it

If you the we're of or big data. be to leveraging similar that look spoke some at used the technology. to earlier, Tom tool It technology

Now it's AI.

Now it's generative AI.

an cautiously very yes, fascinating We're be see with it to So going it how approaching to unfolds. but also open it's mind.

a I over get service trouble there's you on. ways probably provider think lot a as can leveraging of at yourself early least it, in

have anything doing Tom, out. of currently we're sorting research? you we're taking do actions we'll and you some add know, in terms So want then that don't be I to

Tom Hogan

-- called have insights Yes. delivery. our doing we tool Compass, also project But we use clients. delivery. at for We're project We're using more for we're internal within candidly, an some which with it looking

We've So how though they're AI. engagements. interesting generative we're our going generative us of AI, leverage helping number to a speaking for understand clients done really internally,

our AI. regarding perficient.com some on see perspective can You information on generative

to well figure that products. with of of leverage figure a out out it. they try a their out turning our understanding. a cautious how on that our tools AI And some clients use partners There's giving we're as to bit to to how We're can lot working are generative in there as us they number

excited in more be our judicious although using internally So client we're it base, well. we'll as for

Surinder Thind

you're maintaining? are And and we does level year on then And turning or helpful. attrition geographic be were And should fallen I that there aware might to That's then last about, attrition let's guess differences the how India impacting versus that rates assuming bench inflationary levels on And what probably of some year? then in the utilization, maybe rates compare just dramatically. earlier utilization LatAm? historically? the say, you here. currently that of color I'm pressures of there seeing be just how that Any any

Jeff Davis

Yes, utilization pretty has been consistent.

overall. that that. Our right manage XX% hovering to so at actually little they well. goal have offshore around be ramping intentionally capability We're continues lower, of We a a quickly as

-- do As well in tend in there engage to training more engage the U.S. we than here

story the So utilization. that's on kind of

has been pretty last In couple dramatically the what was to quarters terms of of it yes, before. down compared attrition,

from might applicable see macro. aren't not in of that -- a you big there, a think of our obviously, have, some big the frankly, tech. I the industry. be do going overlap A of with to my have layoffs opinion. folks tech to of lot skills to some of that There's lot And that lot the

that However, I'm sure of sort some of spreads.

least is the factor So we're think resignation. biggest or I through at downside of great that the the at

effect and jobs of So can or so that's X years. of calmed that. down X in change I we're seeing sort the times now, People after only think many

again, actually, benefit. it's think I So a

there's to new new a we're bit folks to instead, that hiring distracting little of people on a we can having certainly and additions. and helpful focus think in but us macro I read it's replace not with it,

Surinder Thind

aware final of? any on Got it. differences should geographic just the And point -- we be

Jeff Davis

No, kind consistent. actually, Sorry. it's remarkably of

Indian of fact, I think in the we they firm. in certainly And India, most have -- including probably firms lowest firms. Indian attrition

low, Geos. range end same all at enjoying about is major were by goal low of the three we level, really yes, quite and the So which our

Operator

And comes Kinstlinger Brian our Partners. the of I from Alliance from next line question show Global

Brian Kinstlinger

Services. touched You Financial on

your specifically in projects or on seeing seeing general signs pressure in terms being talk the business large you can improvement vertical in health vertical around discussions development? is trends of care? facing pipeline? In you bookings Or terms this this vertical based of of in about business other Are development, you're

Tom Hogan

payer health optimization -- a provider right just We're I financial No, health a well. industry We've of chasing actually into close of the device number medical side as lot in we but tailwinds health had about working we -- actually in coming now. couple deals that are care to industry. and in we're X-figure the the deal more right even large the X-figure things well. a bit QX, as now the the chasing a from talked seen the more But of vertical. great X-figure or are on care Brian, some no, cost actually there's payer seeing health deal of to within care the and of great opportunities pharmaceutical in a shift little people a world keeping as services, on side way care, there's in other

Jeff Davis

mind health X in to down Kaiser winding mind, one in has very this Brian. some made -- as the add, care Keeping we've know the you and Keep over years. do Kaiser with Sorry, to it public, shift -- of thing last

So there's But completely, last bit health of that's the or are now will almost from percent tail and that year. completely a now alone a I a care think in improvement an an that revenue. of -- uptick out picture us of as little see help

Brian Kinstlinger

course. Of

How of the should does to a change environment, -- companies are more project of bookings the we we of the one have how also to but I environment or acquisitions solid? given structure consideration. discussion the consideration for saw in contingent of Should follow-up reversal companies? the pipeline you or question, is talking question structure pipeline, plan the been my contingent expect finance have or then Just And pay more? terms on less

Paul Martin

a one. on of deals the I'll Yes, couple on October. start September consideration we in closed continued and Obviously,

to performance of -- this business up estimate. not the original Some

to to structure XX, whatever this with deals we're But likely the that. adjustments. from made to deal with the successful we're we've us structure, those made we that And point. overall So that's continue with going done XX structure, continue

Jeff Davis

a around continues to continue bookings second think of pipeline as bookings strong. revenue, versus And and I then the the the be was from part to that strong be just --

So it's both.

Operator

from Jain question show I line And Puneet from the our of JPMorgan. next comes

Puneet Jain

or there Post overall in crisis of business? impact client in the in the on those vertical there in trends maybe March, events Was your more change after and behavior any March? in financial before broadly month any was services financial the

Jeff Davis

probably this. tell I'm let a comment Perficient a quick, models little just real an will question you And But that factor going to that thing underlying bit. Tom good here I on there's for actually. it's that

accounts color to have accounts. But pretty more We've consulting. by the the new been side, been some we've in underrepresented we've the services the I'll on of technology some been time. for last So technology existing had more on and focused provide -- financial X in side on But years, penetrate success let in primarily primarily that. great Tom beginning some some management

Tom Hogan

world. with we're largest base, And to banks Puneet, specific dealing in our client the the

an So those as alternative those of regional for an actually organizations more look individuals saw providers. uptick to

demand in on based So if anything, certain that. we level. increased at the areas saw work really banking regional We don't

banking a with examples, from network to. services providing larger but couple X X of we're have impact and with the that we We the couple impact worked

Puneet Jain

good it. like more was and interesting us back. focused? a M&A like Or it it the you to areas new areas? in to And and coming will generative Can AI that add M&A hear on-site strategy tools remind there be be at Like to continue could skills? which whatnot mix? look given will like Got Like you focus could increase be become around more shift offshore might to

Jeff Davis

we to ramp skills, quickly Yes. that's emerging looking might in whether covering. that cases, just add to add that we're But those some and want things. momentum an We're be already capacity or always even area it's of it combination technology newer all to a up to

I new think looking always for we're skills.

terms to offshore going of clients. out India, that. terms -- not around in going remain then of in a terms be it's because we're in yet opportunity acquisitions there's suspect certainly to new terms there nearshore in so I to or service it's interesting. is open to AI generative point, your yes, To And of much offshore, of in whether

those we pursue tuck-ins those. that that we'll again, have in fill good find gaps might spaces, we If

as America That Tom mentioned that we've now well well, America script them. in I think provided demand extremely to job done we've the I and mentioned gelled Central great platform a running has great of Latin the as has a and team got in and However, as rising end well.

look feel we've tuck-ins So that areas, do those there. focus we'll we opportunistically gaps. got for we'll then continue and anything again, in to don't on But skill to

Operator

And I show comes from Research. our Colicchio of the from question line next Vincent Barrington

Vincent Colicchio

Yes, taking save it you're Jeff, could the bit increased you business others? on around Is little with Is is a color having more it? from deliveries give others? away the discussions of to it What consolidation costs? is unhappy

Jeff Davis

probably It's looking likely XXXX combination. always Fortune ultimately, most particularly a to rationalize looking their focus have always -- clients of because the well, the more It's it's partner we right, our procurement vendor and base to -- they're sophisticated list. the latter, on right, departments, list, that are time

So we emerge. to continue

it's In the cases. but of some one larger cases, of in the not players players, we're smaller some one always,

lists the on those or tier existing across and customers. to top top both continue merge new of We

losing typically, happens, somebody out. So that when is

rationalization So taking reconciliation a away a the a share used. been we've resulting vendors being lot. is issue that satisfaction up that of are in It quite ends or a

it's And that obviously, some names, but the dissatisfaction. we I So some both. then unique firms certainly there over one out there's little are seeing combination stretched. of think won't name challenges. has are other But I a a

some So we've pickup definitely there. seen

Vincent Colicchio

missed for organic sensitivities cost seeing offshore And the environment? you think offshore in -- are the quarter. I I growth for also in And the current increased the increase given incremental demand

Jeff Davis

terms quarter, last was your question? of -- for sorry, It about -- The was -- I'm the in quarter? it the QX, was yes, of And this about part XX%. first XX% Yes. what

Vincent Colicchio

offshore seeing the more demand an doing given in for Are you work acceleration cost?

Jeff Davis

it. going And that's and anything, continue, Yes, only No to think doubt accelerate. if about absolutely. I

right I as we're XX% flat mentioned, about quarter. running, So onshore now, was versus last

picking So what continue. picking now kind of -- that up. we we also ratio to expect see growth is revenue we expect Then ratio that up and as ratio

heart So question, And it's I think the absolutely, offshore/nearshore organic continuing in now. of onshore. to terms X:X:X -- about that's growth, your versus the of been

I into think continue only future going to accelerate. the and it's

Operator

the Vander And Aarde Maxim I Jack question line from show next our comes Group. from of

Jack Vander Aarde

questions. average years relative both the billable I couple rates your rates on largest just Maybe of compared today touch and the to can a you to offshore power onshore only business? your how pricing for competitors have the few a rates compare ago? Jeff, billable versus do how and

Jeff Davis

to our offshore. I would Yes. relative higher say rates are

relates to right? of digital. to XX% late relative to offshore their but They've operating they're the business. in because So a still it mix game XX% in to been guys, big range, of As that's the kind of

I where you're get going rates. think And still they're struggling. bill better that's to

digital in more us are. more So better a to materially compare digital I because, of maybe actually rate native you we're if self-proclaimed, think better rate they that's the -- or fact, bit we firms, And getting a company. little than are of full service

bill including rates which to tends do. than capability, component, the have they end-to-end strategy more bring higher We upfront

Onshore, at in would That's I of And the a well. end, the still guys. above our say of terms very realm, guys at big big you've but the probably like behind digital providing. they're terms picture, Accenture, got we're a really So again, very, definitely are the say, than at offshore. good business rates really we're higher look in that. I'd materially to et But cetera. then the or lower lot of the And little that that's maybe of what's mix all

think in and on and nearshore. out stats. was X% XX% India it's both way, it U.S. the but increase, I the But about mentioned think in the the this we in In the around terms there of by I call, ABR

robust a pretty that's I healthy would inflation to It in all So those offset, ABR. helps improvement geos. say, in completely wage

Jack Vander Aarde

in was XXXX? up get like any rebound business, and organic maybe we follow-up maybe organic a X- growth the deals grow. touch But you to this XXXX. of into on that? just number well. comments on the strength a there. color Jeff indicating the or Paul Appreciate for Great. as Tom growth how was an given Okay. X-figure on it see Is continues of your too and and just And early seems your It as maybe pipeline piece the set to organic Just color on

Jeff Davis

Yes. Absolutely.

year judicious I about the upside think So year, And our given feel good there, maybe I who which but is for numbers out pretty surprise, guidance for modest the is some there's backdrop. the pretty now. there this out have knows, we

to term In our the least I look, quo, double willing, macro not digits. beyond, to holds be looking God maybe of XXXX think some in if growth long out rate then status terms and at improvement, has if

the this the the for about touched component once important real XX% won't a function. component. is growth. in we today, more beyond it talked stair-step And And be going gets of that points top-line offshore that tailwind last revenue pivot and revenue XX%. one to will business, I've But this and before, to the question, closer become growth on to more of to it linear. the of of It's the be offshore a is this

now speaking, XXXX. -- little know the unfolds. a -- the beyond be early philosophically growth long-term of as of digits, more course, And little question, revenue exactly could to expect close And challenge of double least that's back to year some Again, the about it. bit But right we generally It's to -- that expect where level, of to be. talk macro at billable to about or ratio XXXX, we'll a shipping. actually that prospects, would if not growth. your hindrance is we we that's little a environment, to think the But is a challenge growth same a X.X:X. we're That's still bit I or

Operator

And Bank. the of Divya line so comes from Goyal question from Scotia our next

Divya Goyal

the So and color on pipeline bookings great here. the

pipeline? what of know any you're I growth? that are that bookings -- that key uptick like seeing where there understand, driving factors material services segments, other and be in to and you are healthcare the might your wanted financial of some kind of And industries that Just two are

Tom Hogan

client services the be and financial pipeline. So to largest verticals telecommunications, far do we retail, little healthcare automotive, industry bit diversified. -- all And across Quite continue sectors solutions the across a are industry. well really honestly, cut actually is in provide as our base seeing we very up as manufacturing,

across cuts efficiency, clients Those macro operational growth definitely the between industry-agnostic. reasons industries. by digital that them really the vary all but transformation industry, So driving and their really are for is trends two and/or revenue and

Divya Goyal

Yes, that's helpful.

that from what from IT what a like work the is, service I'm provide it's in you question, consultancy just for you banking what Because the services providing. the just services it's the other different insurance? global that cloud the including understand to do, the providers between is financial client, elaborate companies that on the do the what are or a of on sector IT variance kind providers you exactly that digital or space standpoint, slightly right? versus So trying could to follow-up Just that

Tom Hogan

Sure.

sector technology depending well, the at as we looking happen. make on you're global software their measures, as far So which

process large audit So arm organization, improvement depends perspective. I it of from the really a remarks. that fortune -- working That rogatory we're technology as both one and helping during mentioned, comp management prepared said, I preparing. well risk with the very [Indiscernible] the helping with the mentioned with a controller, milestones, as to them working would the on the be being how great example situation, you're as In perspective a

it's as as automation very industry make their origination specific technologies well We're cloud more then to processes processes to efficient. bringing their understand experts audit that and and to the loan So industry. technology underlying

Divya Goyal

this up hardware Maybe and I'll not question. revenue noticed follow And later was kind quarter services That's to. that there if down, down, the just the your color. materially but just noticed was Okay. It I trend last went slightly curious down, if software a that up. one I but spend? of in hardware need software good you went

Jeff Davis

I say are that exposed not to we market. that really would enough

us. for opportunistic because software. vendor work, right, the already a help the very good partners doing that's the It's we're to sell profit So

a as for focus not margin. well that take But it's strategic might us. we So

wouldn't reflective we say really that what the experienced that market. So on I of is broader

Paul Martin

Yes. guess I add too on the I'd [Indiscernible]. is relatively thing it's lumpy that

Operator

our And the last Nolan show comes I of from Maggie William line from Blair. question

Maggie Nolan

the for basis you net year, coming starting commentary just the in half to the earlier half can bit, that year of growth the a about up utilization your back we'll back see on heard around not talk your attrition little and with whether of quarter and additions a balancing pick or I expectations of thoughts again? kind your hiring and the around quarterly

Jeff Davis

where begin will want going pick it think we to Obviously, utilization you running to we're up. things I is that Yes, sure the make to. as

would But -- we'll next focus that certainly, offshore/nearshore way any bench. I U.S. the maybe sure hiring we'll on the don't have So over that first primarily expect us a the we think, to expect unnecessary we quarters, I make of be couple bit little in

or into the we that some terms of attrition, utilization key little that we're people, level. always And sure think always want of back hiring. right, looking we people again, hiring, it. that revenue, But key utilization we're in even we're for making always we'll always we're in get I me let half, hiring to talented hiring at And a second just bit, low see off maintain where replace

Maggie Nolan

Okay. you commentary types increases bit service of to have? you're the client well given you rates kind comment different bill you around as some and gave a receptiveness this of seeing little shift maybe bill annual there. on focus in the And Can environment, rates then that offerings in kind continued that just some given their to increases of

Tom Hogan

Yes. Maggie, don't as rate lot as have typically rate the I'd conversation, we far of conversation. say, a

we're getting of lot So pushback. not a

are being -- Our affected not adversely win rates. definitely by rates

mixed global ABR pushback. we're necessarily judicious I shift the individual to our cost approach, the the we receive we're to macro. not Typically in see approach. at It on with is able think the savings a perspective

I see far So strategy, in game and I that as a to as good a don't pricing think material have XXXX. we any changes plan

Operator

the this remarks. over At turn session. for back conference to would Q&A our Mr. time, Jeff I closing CEO, Chairman concludes to and That Davis, like

Jeff Davis

got forward for how XX the good your you comes, in you looking again. we're long days. time again, that once reporting in quarter today. and next of see this to we've you spite momentum all Thank some here thank backdrop, Obviously, Well, going

Operator

Thank you. This concludes today's conference call. for Thank you participating.

may You disconnect. now

Perficient (PRFT) 2 May 232023 Q1 Earnings call transcript