BUSINESS OVERVIEW
AUGUST 2017 Safe Harbor Some of the statements contained in this presentation that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2017. Those statements are Statement subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The “forward- looking” information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements are disclosed under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2016. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. This cautionary statement is provided pursuant to Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward- looking statement for any reason, even if new information becomes available or other events occur in the future.
2 Perficient is the leading digital transformation consulting firm serving Global 2000 and enterprise customers throughout North America.
With unparalleled information technology, management consulting, and creative capabilities, Perficient and its Perficient Digital agency deliver vision, execution, and value with outstanding digital experience, business optimization, and industry solutions.
3 Our Locations
NORTH AMERICA CANADA Allentown, PA Fairfax, VA Toronto, ON Ann Arbor, MI Houston, TX Atlanta, GA Indianapolis, IN ASIA Boston, MA Irvine, CA Hangzhou, China Charlotte, NC Lafayette, LA Chicago, IL Milwaukee, WI INDIA Cincinnati, OH Minneapolis, MN Chennai, India Columbus, OH New York, NY Nagpur, MS, India Dallas, TX San Francisco, CA Denver, CO St. Louis, MO UNITED KINGDOM Detroit, MI Oxford
4 Enterprise Partners
Strategic Partners
5 Market Forces
Digital Cloud Healthcare Industry Financial Services Transformation Computing Evolution Regulatory Environment
6 Strategic Growth Drivers
Geographic Increased Strategic Account M&A Plans Expansion Offshore Development
7 Focus and Expertise
INDUSTRY SOLUTIONS BUSINESS OPTIMIZATION DIGITAL EXPERIENCE Perficient’s Industry Solutions enable Gain competitive advantage Map and follow the customer clients to grow market share, ensure through enhanced process, journey, leverage data to predict regulatory compliance and stand out performance, and data-driven behavior, and react and respond as an industry innovator through solutions that reduce cost, drive to deliver outstanding customer industry-centric business strategy, efficiency and productivity, and experiences across the channel. process and technology expertise. grow revenue.
8 Industry Solutions
HEALTH SCIENCES
FINANCIAL SERVICES
AUTOMOTIVE
RETAIL & CONSUMER GOODS
ELECTRONICS & HARDWARE
MANUFACTURING
TELECOM
9 Health Sciences Practice Strategic consulting insights and pragmatic technology solutions that improve clinical, financial and operational efficiency.
HEALTH PLANS PROVIDERS LIFE SCIENCES
26% OF H1 2017 REVENUE
10 Health Sciences Clients
1 Definitive Healthcare 2 BCBS.com 3 Definitive Healthcare 4 Forbes 5 DiscoverOrg
11 IP – Health Analytics Gateway
More than a dozen high-margin implementations and meaningful pipeline
12 Financial Services Practice Deep Financial Services Domain Expertise
BANKING ASSET & WEALTH CAPITAL INSURANCE MANAGEMENT MARKETS
15% OF H1 2017 REVENUE
13 Financial Services Clients
Source: Forbes Global 2000 rankings
14 Business Optimization
CLOUD
DEVOPS
BUSINESS PROCESS MANAGEMENT
CORPORATE PERFORMANCE MANAGEMENT
ENTERPRISE DATA AND BUSINESS INTELLIGENCE
ENTERPRISE RESOURCE PLANNING
OPTIMIZED GLOBAL DELIVERY
15 Digital Experience
BIG DATA AND ANALYTICS DIGITAL STRATEGY
CLOUD EXPERIENCE DESIGN
COMMERCE ENTERPRISE SOCIAL
CONTENT MANAGEMENT INTERNET OF THINGS (IOT)
CUSTOMER RELATIONSHIP MANAGEMENT ENTERPRISE MOBILE
DIGITAL MARKETING PORTALS
16 Our Digital Agency
END-TO-END IS JUST THE BEGINNING
With the strategic imagination of an agency, unleashed by the deep technical know-how of a consultancy, our execution never fails our vision. We dream big, build beautiful, measure confidently, and optimize obsessively. Because great brands are no longer “built” with a bull horn – they are made from every great customer moment.
17 Practices and Capabilities
STRATEGY + PLANNING DIGITAL MARKETING + ANALYTICS EXPERIENCE DESIGN MOBILE + EMERGING TECH CONTENT STUDIO DIGITAL EXPERIENCE PLATFORMS
18 BROADER. DEEPER. BOLDER.
BOUTIQUES Can be great at delivering creative point solutions but often unable to scale across the complexity of your business.
DIGITAL AGENCIES Can be great at articulating digital experience but often unable to deliver on the vision once it cuts deeper into the enterprise.
CONSULTANCIES Can be great at strategic vision but a large, institutional mindset often unable to craft nimble, differentiated solutions.
19 CONSULTING SERVICES UNIVERSE
20 Large Integrators
• More breadth than depth • More expensive • Prescriptive, not collaborative • Struggle with creative
21 Boutiques
• No breadth • No scale to handle larger projects • Limited integration capabilities • Limited industry expertise • Point solutions, not strategic vision
22 Agencies
• Sizzle without substance • Struggle with technology – implementation and integration • Myopic - no strategic vision
23 Perficient
The Premier Provider • Breadth and Depth • Integrated Creative and Technology Skills • Collaborative Approach (First a partner, then an advisor) • Vision, Execution and Value
24 INDUSTRY DATA
Revenue by Industry (Top 10) Q2 2017 Q1 2017 Q2 2016
Healthcare/Pharma/Life Sciences 27% 25% 31%
Financial Services/Banking/Insurance 15% 16% 17%
Automotive and Transport Products 10% 11% 8%
Retail and Consumer Goods 10% 10% 13%
Electronics and Computer Hardware 9% 9% 6%
Manufacturing 9% 9% 5%
Telecommunications 7% 7% 6%
Leisure, Media and Entertainment 3% 3% 3%
Energy and Utilities 2% 2% 3%
Business Services 2% 2% 2%
25 SOLUTION DATA
Revenue by Solution (Top 10) Q2 2017 Q1 2017 Q2 2016
Analytics 19% 19% 16%
Commerce 12% 12% 14%
Custom Applications 10% 11% 9%
Content Management 10% 10% 10%
Management Consulting 10% 10% 7%
Business Integration 7% 7% 6%
Platform 6% 7% 10%
Customer Relationship Management 6% 6% 5%
Portals/Collaboration 4% 6% 8%
Business Process Management 4% 3% 7%
26 PLATFORM DATA
Revenue by Platform Q2 2017 Q1 2017 Q2 2016
IBM 32% 31% 36%
Oracle 12% 11% 9%
Microsoft 11% 13% 16%
Salesforce 7% 5% 4%
Adobe 4% 4% 4%
Magento 3% 3% 3%
Other Technologies 24% 25% 21%
Management Consulting* 7% 8% 7%
*Platform independent
27 ABR – progress & potential
$250 900,000 $225 800,000 $200 700,000 Messaging “up market”, building brand awareness 600,000 $145 $146 $144 $145 and growing mindshare = $150 $135 continued opportunity to 500,000 close a still significant domestic rate gap going ABR 400,000 $100 forward.
300,000 OffshoreHours
$43 200,000 $50 $39 $41 $36 $36 $25 100,000
$0 0 2013 2014 2015 2016 H1 2017 Largest Competitors
Onshore Offshore Offshore - Volume
28 2017 YTD Top 50 Clients
29 Our Competitive Success BEAT THE BOUTIQUES EASILY AND WE CONTINUE TO ROUTINELY BEAT THE BIG FIRMS
YTD win rates vs.
100
90 82 80 75 73
70 66 67 64 62 61 60 60
50
40
30
20
10
0 Accenture & Razorfish Infosys Tata Cognizant IBM GBS Deloitte & Deloitte Sapient Weighted Average Accenture Interactive Digital
30 Revenue & Profitability
Total Revenue Growth
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
* Year Projection
31 Revenue & Profitability
Profitability Growth 80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
- 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
EBITDAS Net Income * Year Projection
32 GAAP and AEPS Performance
1.4
1.2
1
0.8
0.6
0.4
0.2
0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * GAAP EPS (diluted) Adjusted EPS
* Year Projection
33 Client Relationships Growing
Top 50 Accounts – $1m+ Accounts Revenue Average ($m)
120 6 104 96 4.8 100 92 94 5 4.4 4.1 3.9 80 74 4 3.5 69 3.2 2.9 60 53 3 2.4 40 40 2
20 1
0 0 2010 2011 2012 2013 2014 2015 2016 2017* 2010 2011 2012 2013 2014 2015 2016 2017*
* Year Goal
34 Share Repurchase 3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
- 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017
36,000
SHARE 35,000 COUNT As of June 30, 2017 $11.7 million remained DATA 34,000 (under $135m authorization). Q3 – Q4 2017 are forecasts 33,000
32,000 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Weighted Average Fully Diluted Outstanding Shares (#)
35 Free Cash Flow Schedule
Free Cash Flow as % of Total Revenue 14.0% Average 10.0% 12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 2017
36 CUSTOMER 98% CUSTOMER SATISFACTION >98% of respondents indicated they would use Perficient again and recommend PRFT to other colleagues SATISFACTION/ in their organization or industry ~95% REPEAT BUSINESS ~95% of revenues annually are RETENTION generated from accounts that were clients in either of the previous two years
CLIENT TENURE
$1m+ Clients 77 months
Top 50 clients 78 months
37 RECENT ACQUISITIONS Clarity Consulting ($27M annual revenues) RAS & Associates ($9M annual revenues) M&A Bluetube ($7M annual revenues)
DISCIPLINED APPROACH GROWTH • $10-$40+ million shops • 5-7X EBITDA STRATEGY • Blend of cash / restricted stock • Use scale and focus on costs to increase EBITDA margins
• Leverage client base, office network and vendor relationships to cross-sell, increase rates and decrease sales costs
PROVEN TRACK RECORD • Well-defined integration methodology
• Retained key operating management
• Complete integration: one brand, common systems, standardized comp plans & methodology.
38 Recent Acquistions
DATE JUNE 2017 JANUARY 2017 OCTOBER 2016
REVENUE $27 Million $9 Million $7 Million
PRIMARY PARTNER Microsoft Management Consulting Digital Agency
FOCUS Custom App Dev / Cloud Strategy and Operations Mobile
GEOGRAPHIES Chicago Denver Atlanta
39 Q3 Q3 AND FULL $120.5m to $134.0m Q3 Revenue Guidance YEAR 2017 $0.32 - $0.34 Q3 Adjusted EPS Guidance $0.16 - $0.19 OUTLOOK Q3 GAAP EPS Guidance
2017 $490m to $510m 2017 Full-Year Revenue Guidance $1.19 - $1.29 Full-Year Adjusted EPS Guidance $0.50 - $0.62 Full-Year GAAP EPS Guidance
40 NASDAQ: PRFT
Member of Russell Common shares 2000 and S&P 600 outstanding*: Small-Cap Indices 35.1M
Market capitalization*: Recent price*: ~$645M $17.52
52-week range*: Average daily $14.15 - volume*: $21.19 ~181,000 (trailing 3 mo.)
Top Holders: BLACKROCK, Institutional FIDELITY, Ownership: DIMENSIONAL 75%
*As of August 7th, 2017
41 Summary
Growing margins and consistent, dependable, profitable growth over time
Tenured management team; proven track record of success in all market environments
Mission to be one of the world’s leading consulting firms
Goals of 40% net services GM (excluding stock comp) and 20% EBITDAS margin
Strong cash flow, balance sheet and access to capital
Thank You!
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