8-K

United States

Securities and Exchange Commission

Washington, DC 20549

Form 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 6, 2014

PERFICIENT, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-15169		74-2853258
(State or Other Jurisdiction of Incorporation)	(Commission File Number)		(IRS Employer Identification No.)
555 Maryville University Drive, Suite 600, Saint Louis, Missouri		63141
(Address of Principal Executive Offices)		(Zip Code)

Registrant's telephone number, including area code (314) 529-3600

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On November 6, 2014, Perficient, Inc., a Delaware corporation (“Perficient”) announced its financial results for the three and nine months ended September 30, 2014. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 2.02.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

ITEM 8.01 OTHER EVENTS

Financial Results Presentation

On November 6, 2014, Perficient posted on the Investor Relations page of its website at www.perficient.com a slide presentation related to its third quarter 2014 financial results and operating metrics. A copy of the slide presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The information contained or incorporated in our website is not part of this filing.

Amendment to Share Repurchase Plan

On November 6, 2014, Perficient announced that its Board of Directors authorized an amendment to Perficient's previously disclosed stock repurchase program to increase the overall amount of the program by $10,000,000, thereby increasing the total authorization under the program to $100,000,000, and to extend the expiration date for the program from December 31, 2014 to June 30, 2016. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.

Exhibit
Number	Description
99.1	Perficient, Inc. Press Release, dated November 6, 2014, announcing financial results for the three and nine months ended September 30, 2014 and the expansion of share repurchase program
99.2	Perficient, Inc. Q3 2014 Financial Results Presentation

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PERFICIENT, INC.
Date: November 6, 2014	By:	/s/ Paul E. Martin
		Paul E. Martin
		Chief Financial Officer

Exhibit Index

Exhibit
Number	Description
99.1	Perficient, Inc. Press Release, dated November 6, 2014, announcing financial results for the three and nine months ended September 30, 2014 and the expansion of share repurchase program
99.2	Perficient, Inc. Q3 2014 Financial Results Presentation

EX-99.1

EXHIBIT 99.1

For more information, please contact:

Bill Davis, Perficient, 314-529-3555

bill.davis@perficient.com

PERFICIENT REPORTS THIRD QUARTER 2014 RESULTS

~ Revenue up 21%, Average bill rate reaches all-time high;Expands share repurchase program ~

SAINT LOUIS (Nov. 6, 2014) – Perficient, Inc. (NASDAQ: PRFT) ("Perficient"), a leading information technology and management consulting firm serving Global 2000® and other large enterprise customers throughout North America, today reported its financial results for the quarter ended September 30, 2014.

Financial Highlights

For the quarter ended September 30, 2014:

· Revenue increased 21% to $117.0 million from $96.8 million for the third quarter 2013;

· Services revenue increased 15% to $100.0 million from $86.6 million for the third quarter 2013;

· Adjusted earnings per share results (a non-GAAP measure; see attached schedule, which reconciles to GAAP earnings per share) on a fully diluted basis increased to $0.37 from $0.32 for the third quarter 2013;

· Earnings per share results on a fully diluted basis decreased to $0.22 from $0.23 for the third quarter 2013;

· EBITDAS (a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased to $20.7 million from $16.2 million for the third quarter 2013; and

· Net income increased 1% to $7.3 million from $7.2 million for the third quarter 2013.

"Solid services delivery, coupled with strong software sales, again enabled Perficient to exceed revenue estimates for the quarter," said Jeffrey Davis, chief executive officer and president. "The world's most innovative enterprises are increasingly turning to Perficient because of the breadth of our portfolio, the depth of our platform and industry expertise, our flexibility in delivery and our customer-centric approach."

"EBITDA was up 30% and we expect additional year over year improvement in the last quarter of 2014," said Paul Martin, chief financial officer. "We have made significant progress establishing a foundation of strong operational leverage in recent quarters and in 2015, will focus on driving increased volume to continue to grow top and bottom line performance."

Stock Repurchase Program Expansion

On November 4, 2014, Perficient's Board of Directors expanded Perficient's stock repurchase program by authorizing the repurchase of up to additional $10.0 million of our common stock for a total repurchase program of $100.0 million and extended the expiration date of the program from December 31, 2014 to June 30, 2016.  Since the program's inception in 2008, Perficient has repurchased a total of 9.1 million shares at a cost of $77.0 million.

Other Highlights

Among other recent achievements, Perficient:

· Announced it is establishing a domestic delivery center in Lafayette, Louisiana, to augment Perficient's offshore delivery centers, further optimizing its global network and comprehensive technology, delivery management and industry vertical expertise across North America;

· Was awarded the 2014 IBM Big Data & Analytics Worldwide Business Partner Excellence Award at IBM Insight. The award recognizes Perficient's accomplishments and expertise across all IBM Business Analytics, Enterprise Content Management and Information Management software brands;

· Was awarded the Oracle University 2014 Outstanding Instructor Quality Award for consistently high instructor-quality ratings, having achieved an average customer satisfaction rating of 95 percent for Perficient's more than 60 events this year; and

· Added new customer relationships and follow-up projects with leading companies including: Bell Alliant, Blue Cross Blue Shield Michigan, Davita, Norwegian Cruise Line, Penske Trucking, Reckitt Benckiser, RockTenn, TJX, Trend Micro, University of Colorado, Volkswagen/Audi of America, and many others.

Business Outlook

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. See "Safe Harbor Statement" below.

Perficient expects its fourth quarter 2014 services and software revenue, including reimbursed expenses, to be in the range of $110.0 million to $120.0 million, comprised of $101.0 million to $106.2 million of revenue from services including reimbursed expenses and $9.0 million to $13.8 million of revenue from sales of software. The midpoint of fourth quarter 2014 services revenue guidance represents growth of 20% over fourth quarter 2013 services revenue.

The company is revising its full year 2014 revenue guidance to be in the range of $441 million to $451 million and 2014 adjusted earnings per share guidance range of $1.27 to $1.31.  

Conference Call Details

Perficient will host a conference call regarding third quarter 2014 financial results today at 10 a.m. Eastern.

WHAT: Perficient Reports Third Quarter 2014 Results

WHEN: Thursday, Nov. 6, 2014, at 10 a.m. Eastern

CONFERENCE CALL NUMBERS: 866-515-2907 (U.S. and Canada) 617-399-5121 (International)

PARTICIPANT PASSCODE: 48439834

REPLAY TIMES: Thursday, Nov. 6, 2014, at 2 p.m. Eastern, through Thursday, Nov 13, 2014

REPLAY NUMBER: 888-286-8010 (U.S. and Canada) 617-801-6888 (International)

REPLAY PASSCODE: 44115739

About PerficientPerficient is a leading information technology and management consulting firm serving Global 2000® and enterprise customers throughout North America. Perficient's professionals serve clients from a network of offices across North America and two offshore locations in India and China. Perficient helps clients use Internet-based technologies to improve productivity and competitiveness; strengthen relationships with customers, suppliers and partners; and reduce information technology costs. Perficient, traded on the Nasdaq Global Select Market, is a member of the Russell 2000®index and the S&P SmallCap 600 index. Perficient is an award-winning "Premier Level" IBM business partner; a Microsoft National Service Provider and Gold Certified Partner; an Oracle Platinum Partner; a Platinum Salesforce.com Cloud Alliance Partner; a TeamTIBCO partner; and an EMC Select Services Team Partner. For more information, visit www.perficient.com.

PERFICIENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues
Services	$	99,975		$	86,568		$	286,780		$	240,549
Software and hardware		12,192			5,620			31,108			23,169
Reimbursable expenses		4,804			4,570			12,962			12,142
Total revenues		116,971			96,758			330,850			275,860
Cost of revenues
Project personnel costs		60,390			51,376			175,916			147,638
Software and hardware costs		10,438			4,919			27,333			20,471
Reimbursable expenses		4,804			4,570			12,962			12,142
Other project related expenses		617			1,252			2,289			3,274
Stock compensation		1,185			778			3,507			2,360
Total cost of revenues		77,434			62,895			222,007			185,885
Gross margin		39,537			33,863			108,843			89,975
Selling, general and administrative		20,058			18,477			58,879			51,378
Stock compensation		2,181			2,055			6,475			5,876
		17,298			13,331			43,489			32,721
Depreciation		932			932			2,713			2,334
Amortization		4,045			1,955			10,511			5,750
Acquisition costs		(74	)		29			2,495			1,443
Adjustment to fair value of contingent consideration		-			69			(1,463	)		102
Income from operations		12,395			10,346			29,233			23,092
Net interest expense		(462	)		(96	)		(1,055	)		(154	)
Net other income (expense)		10			7			79			(30	)
Income before income taxes		11,943			10,257			28,257			22,908
Provision for income taxes		4,637			3,023			11,519			6,989
Net income	$	7,306		$	7,234		$	16,738		$	15,919
Basic earnings per share	$	0.23		$	0.24		$	0.53		$	0.53
Diluted earnings per share	$	0.22		$	0.23		$	0.51		$	0.50
Shares used in computing basic earnings per share		32,118			30,141			31,470			30,287
Shares used in computing diluted earnings per share		33,329			31,808			33,076			31,692

PERFICIENT, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
	September 30,			December 31,
	2014			2013
ASSETS
Current assets:
Cash and cash equivalents	$	5,411		$	7,018
Accounts receivable, net		117,304			78,887
Prepaid expenses		2,651			2,569
Other current assets		7,131			6,759
Total current assets		132,497			95,233
Property and equipment, net		7,945			7,709
Goodwill		236,140			193,510
Intangible assets, net		49,525			25,487
Other non-current assets		3,842			3,810
Total assets	$	429,949		$	325,749
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	13,532		$	7,667
Other current liabilities		28,108			30,298
Total current liabilities		41,640			37,965
Long-term debt		74,800			19,000
Other non-current liabilities		13,084			9,294
Total liabilities		129,524			66,259
Stockholders' equity:
Common stock		43			41
Additional paid-in capital		330,670			297,997
Accumulated other comprehensive loss		(506	)		(378	)
Treasury stock		(89,401	)		(81,051	)
Retained earnings		59,619			42,881
Total stockholders' equity		300,425			259,490
Total liabilities and stockholders' equity	$	429,949		$	325,749

Safe Harbor StatementSome of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2014.  Those statements are 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 include (but are not limited to) those disclosed under the heading "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2013 and in our quarterly report on Form 10-Q for the quarter ended June 30, 2014 and the following:

(1)    the possibility that our actual results do not meet the projections and guidance contained in this news release;(2)    the impact of the general economy and economic uncertainty on our business;(3)    risks associated with the operation of our business generally, including:

a) client demand for our services and solutions;

b) maintaining a balance of our supply of skills and resources with client demand;

c) effectively competing in a highly competitive market;

d) protecting our clients' and our data and information;

e) risks from international operations;

f) obtaining favorable pricing to reflect services provided;

g) adapting to changes in technologies and offerings;

h) risk of loss of one or more significant software vendors; and

i) implementation of our new Enterprise Resource Planning system;

(4)    legal liabilities, including intellectual property protection and infringement or personally identifiable information;(5)    risks associated with managing growth organically and through acquisitions; and(6)    the risks detailed from time to time within our filings with the Securities and Exchange Commission.

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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  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.

About Non-GAAP Financial Information

This news release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles ("GAAP"), please see the section entitled "About Non-GAAP Financial Measures" and the accompanying tables entitled "Reconciliation of GAAP to Non-GAAP Measures."

About Non-GAAP Financial Measures

Perficient provides non-GAAP financial measures for EBITDAS (earnings before interest, income taxes, depreciation, amortization, and stock compensation), adjusted net income, and adjusted earnings per share data as supplemental information regarding Perficient's business performance. Perficient believes that these non-GAAP financial measures are useful to investors because they provide investors with a better understanding of Perficient's past financial performance and future results. Perficient's management uses these non-GAAP financial measures when it internally evaluates the performance of Perficient's business and makes operating decisions, including internal operating budgeting, performance measurement, and the calculation of bonuses and discretionary compensation.  Management excludes stock-based compensation related to employee stock options and restricted stock awards, the amortization of intangible assets, acquisition costs, adjustments to the fair value of contingent consideration, and income tax effects of the foregoing, when making operational decisions.

Perficient believes that providing the non-GAAP financial measures to its investors is useful because it allows investors to evaluate Perficient's performance using the same methodology and information used by Perficient's management. Specifically, adjusted net income is used by management primarily to review business performance and determine performance-based incentive compensation for executives and other employees.  Management uses EBITDAS to measure operating profitability, evaluate trends, and make strategic business decisions.

Non-GAAP financial measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of discretionary judgment as to which charges are excluded from the non-GAAP financial measure. However, Perficient's management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of EBITDAS, adjusted net income, and adjusted earnings per share. In addition, some items that are excluded from adjusted net income and adjusted earnings per share can have a material impact on cash. Management compensates for these limitations by evaluating the non-GAAP measure together with the most directly comparable GAAP measure. Perficient has historically provided non-GAAP financial measures to the investment community as a supplement to its GAAP results to enable investors to evaluate Perficient's business performance in the way that management does. Perficient's definition may be different from similar non-GAAP financial measures used by other companies and/or analysts.

The non-GAAP adjustments, and the basis for excluding them, are outlined below:

Amortization of Intangible Assets

Perficient has incurred expense on amortization of intangible assets primarily related to various acquisitions. Management excludes these items for the purposes of calculating EBITDAS, adjusted net income, and adjusted earnings per share. Perficient believes that eliminating this expense from its non-GAAP financial measures is useful to investors because the amortization of intangible assets can be inconsistent in amount and frequency, and is significantly impacted by the timing and magnitude of Perficient's acquisition transactions, which also vary substantially in frequency from period to period.

Acquisition Costs

Perficient incurs transaction costs related to acquisitions which are expensed in its GAAP financial statements.  Management excludes these items for the purposes of calculating EBITDAS, adjusted net income, and adjusted earnings per share.  Perficient believes that excluding these expenses from its non-GAAP financial measures is useful to investors because these are expenses associated with each transaction, and are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.

Adjustments to Fair Value of Contingent Consideration

Perficient is required to remeasure its contingent consideration liability related to acquisitions each reporting period until the contingency is settled.  Any changes in fair value are recognized in earnings.  Management excludes these items for the purposes of calculating adjusted net income and adjusted earnings per share.  Perficient believes that excluding these adjustments from its non-GAAP financial measures is useful to investors because they are related to acquisitions, and are inconsistent in amount and frequency from period to period.

Stock-Based Compensation

Perficient incurs stock-based compensation expense under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation.  Perficient excludes this item for the purposes of calculating EBITDAS, adjusted net income, and adjusted earnings per share because it is a non-cash expense, which Perficient believes is not reflective of its business performance. The nature of stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions, and different award types, making the comparison of current results with forward looking guidance potentially difficult for investors to interpret. The tax effects of stock-based compensation expense may also vary significantly from period to period, without any change in underlying operational performance, thereby obscuring the underlying profitability of operations relative to prior periods.  Perficient believes that non-GAAP measures of profitability, which exclude stock-based compensation are widely used by analysts and investors.

PERFICIENT, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(unaudited)
(in thousands, except per share data)
	Three Months Ended September 30,					Nine Months Ended September 30,
	2014			2013		2014			2013
GAAP Net Income	$	7,306		$	7,234	$	16,738		$	15,919
Additions:
Provision for income taxes		4,637			3,023		11,519			6,989
Amortization		4,045			1,955		10,511			5,750
Acquisition costs		(74	)		29		2,495			1,443
Adjustment to fair value of contingent consideration		-			69		(1,463	)		102
Stock compensation		3,366			2,833		9,982			8,236
Adjusted Net Income Before Tax		19,280			15,143		49,782			38,439
Adjusted income tax (1)		7,114			5,073		18,768			12,723
Adjusted Net Income	$	12,166		$	10,070	$	31,014		$	25,716
GAAP Earnings Per Share (diluted)	$	0.22		$	0.23	$	0.51		$	0.50
Adjusted Earnings Per Share (diluted)	$	0.37		$	0.32	$	0.94		$	0.81
Shares used in computing GAAP and Adjusted Earnings Per Share (diluted)		33,329			31,808		33,076			31,692

(1) The estimated adjusted effective tax rate of 36.9% and 33.5% for the three months ended September 30, 2014 and 2013, respectively, and 37.7% and 33.1% for the nine months ended  September 30, 2014 and 2013, has been used to calculate the provision for income taxes for non-GAAP purposes.

PERFICIENT, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(unaudited)
(in thousands)
	Three Months Ended September 30,							Nine Months Ended September 30,
	2014				2013			2014				2013
GAAP Net Income		$	7,306		$	7,234			$	16,738			$	15,919
Additions:
Provision for income taxes			4,637			3,023				11,519				6,989
Net interest expense			462			96				1,055				154
Net other expense (income)			(10	)		(7	)			(79	)			30
Depreciation			932			932				2,713				2,334
Amortization			4,045			1,955				10,511				5,750
Acquisition costs			(74	)		29				2,495				1,443
Adjustment to fair value of contingent consideration			-			69				(1,463	)			102
Stock compensation			3,366			2,833				9,982				8,236
EBITDAS (1)		$	20,664		$	16,164			$	53,471			$	40,957

(1) EBITDAS is a non-GAAP performance measure and is not intended to be a performance measure that should be regarded as an alternative to or more meaningful than either GAAP operating income or GAAP net income.  EBITDAS measures presented may not be comparable to similarly titled measures presented by other companies.

EX-99.2

EXHIBIT 99.2